Exclusivefocus Spring 2013 - National Association of Professional ...
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Direct Mail Reinvented Agent Pension Plan President’s Perspective<br />
<strong>Exclusivefocus</strong><br />
<strong>Spring</strong> <strong>2013</strong><br />
An Official Publication <strong>of</strong> the <strong>National</strong> <strong>Association</strong> <strong>of</strong> Pr<strong>of</strong>essional Allstate Agents, Inc.<br />
Why Your Allstate<br />
Agency Should Have<br />
its Own Website<br />
page 39<br />
Tired <strong>of</strong> Getting the<br />
Runaround from your<br />
FSL Find out Who<br />
many Allstate Agents<br />
Call for Straight<br />
Answers page 44<br />
From Allstate<br />
to State Farm and<br />
Beyond – One Agent’s<br />
Interesting Journey<br />
page 20<br />
Tips on<br />
How to Avoid<br />
Embarrassing E&O<br />
Claims<br />
page 16<br />
A Magazine for Allstate Agency Owners and Allstate Personal Financial Representatives
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<strong>Exclusivefocus</strong><br />
<strong>Spring</strong> <strong>2013</strong><br />
An Official Publication <strong>of</strong> the <strong>National</strong> <strong>Association</strong> <strong>of</strong><br />
Pr<strong>of</strong>essional Allstate Agents, Inc.<br />
FEATURES<br />
12 Florida Region: Observations from the <strong>2013</strong> Agency Forum<br />
By Dale Revels<br />
14 The Seller’s Side <strong>of</strong> the Sale<br />
By Brian Spillman<br />
16 Errors and Omissions – What You Don’t Know Could Cost You<br />
By Jim and Nancy Fish<br />
20 In Search <strong>of</strong> Greener Pastures…<br />
Allstate vs. State Farm vs. Independent Agent<br />
26 Lessons Learned<br />
By Mike Handrick<br />
30 The Psychology <strong>of</strong> a Company<br />
By Brian Spillman<br />
32 Agent Pension Plan Information for<br />
Former Allstate Employee Agents<br />
By Nancy Fish<br />
Sales &<br />
Marketing<br />
22 Are the Patients<br />
Running the Asylum<br />
By Bill Gough<br />
24 Practicing the Golden Rule<br />
By Ed Horrell<br />
34 Reinventing an<br />
Unloved Marketing Strategy<br />
By Scott Brodbeck<br />
39 Should Your Agency<br />
Have its Own Website<br />
By Robyn Sharp<br />
Opinion<br />
42 From Intangible Product<br />
to Intangible Company<br />
By Brian Spillman<br />
37 The Saboteurs<br />
By Dave Thorpe<br />
44 An Unsung Heroine<br />
By Jim Fish<br />
Business<br />
27 Seller Transparency: the Threshold <strong>of</strong> Acquisitions<br />
By Rick Dennen<br />
A Magazine for Allstate Agency Owners and Allstate<br />
Personal Financial Representatives<br />
DEPARTMENTS<br />
6 President’s Letter<br />
8 Letters to NAPAA<br />
51 Membership Application<br />
53 NAPAA Market Place<br />
54 NAPAA Board <strong>of</strong> Directors<br />
4 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
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president’s perspective<br />
Tom Wilson Awakens a Sleeping Giant<br />
In Solidarity<br />
Bob Isacsen<br />
President<br />
NAPAA/OPEIU<br />
Guild 17<br />
During my 52 years <strong>of</strong> insurance industry experience<br />
I have never witnessed such a lack <strong>of</strong> overall<br />
leadership as that currently being displayed by Tom<br />
Wilson. It’s astounding. In my view, his leadership<br />
– or lack there<strong>of</strong> – has produced an unprecedented<br />
reduction in the agency sales force: a corporate<br />
strategy he first disowned, but now freely admits<br />
was his plan all along. This strategy has decimated<br />
the agency force and caused a great deal <strong>of</strong> suffering<br />
for untold thousands <strong>of</strong> our brothers and sisters,<br />
some <strong>of</strong> whom ended their own lives in the process.<br />
The result is that a once-proud agency force that<br />
numbered 14,000 is fast approaching 8,000.<br />
The implementation <strong>of</strong> draconian commission<br />
cuts, coupled with a decline in overall market share<br />
has led to the mass resignations <strong>of</strong> some <strong>of</strong> the best<br />
agents in the company, many <strong>of</strong> whom sought and<br />
found more rewarding opportunities elsewhere.<br />
Apparently, this exodus <strong>of</strong> better than average<br />
agents was unexpected because Allstate is now<br />
<strong>of</strong>fering referral bonuses up to $10,000 in certain<br />
states for new agent hires. It seems to me if the<br />
Allstate opportunity was as good as the company<br />
proclaims it to be, there would be no need to <strong>of</strong>fer<br />
a bounty. Word gets around, whether positive or<br />
negative, and these days, the word on the street is<br />
that Allstate is not a place where agents can expect<br />
stability or permanence in their pr<strong>of</strong>essional lives.<br />
And the turnover hasn’t been confined to the<br />
agency force. We have also seen the exodus <strong>of</strong> some<br />
<strong>of</strong> the brightest and best insurance and sales executives<br />
in the business. From what I’ve observed, nobody<br />
is safe, including those in the upper echelons<br />
<strong>of</strong> power at Home Office. Just in the past few years,<br />
we have lost some remarkable members <strong>of</strong> the senior<br />
staff, including George Ruebenson, Joe Lacher,<br />
Mark LeNeve and Joe Richardson, Jr. While these<br />
names won’t be familiar to new agents, they can be<br />
easily searched online.<br />
So, as Tom Wilson fiddles, his empire is burning<br />
out <strong>of</strong> control. Yet he is generously compensated.<br />
The slash and burn management tactics that have<br />
endeared him to the Allstate Board <strong>of</strong> Directors<br />
have caused animosity among some – if not most<br />
– <strong>of</strong> his former colleagues, and likely some in his<br />
current inner circle. In my opinion, his careeningout-<strong>of</strong>-control<br />
management style has severely<br />
weakened the company and opened doors <strong>of</strong> opportunity<br />
to the competition.<br />
The struggles <strong>of</strong> the Allstate agency force are<br />
legendary and are well known among savvy competitors,<br />
some <strong>of</strong> whom are now taking advantage<br />
<strong>of</strong> Mr. Wilson’s missteps and his lack <strong>of</strong> popularity<br />
among rank and file Allstate agents.<br />
One example is the Farmers Insurance Group,<br />
where some former Allstate executives landed after<br />
their Allstate careers abruptly ended. This “sleeping<br />
giant,” whose parent company is Zurich Financial<br />
Services – the second largest financial services<br />
company in the world – is aggressively expanding<br />
in the eastern U.S. The Farmers Insurance Group<br />
had its beginnings in 1928 and currently operates<br />
in 41 states. Farmers has 15,000 agents, mostly<br />
west <strong>of</strong> the Mississippi, and together with its sister<br />
companies – Foremost Insurance, 21st Century<br />
Insurance, Bristol West and their brokering company,<br />
Kraft Lake Insurance – it is one <strong>of</strong> the largest<br />
personal lines insurers in the nation.<br />
Believe me, selling personal insurance is not<br />
rocket science, so what has the Farmers Group<br />
done to leverage its brand above the competition<br />
Quite simply, they have replaced much <strong>of</strong> the<br />
onerous language in the agent contracts <strong>of</strong> their<br />
competitors with s<strong>of</strong>ter and gentler wording, as<br />
well as a one-<strong>of</strong>-a-kind option that allows agents<br />
to transfer ownership <strong>of</strong> all or part <strong>of</strong> their agency<br />
to an acceptable/approved member <strong>of</strong> the agent’s<br />
immediate family. Also, Farmers does not have the<br />
legacy problems that go along with the long tenure<br />
<strong>of</strong> operating in a given state, so at least in the<br />
eastern U.S., it will be able to <strong>of</strong>fer take-away rates<br />
and broader product <strong>of</strong>ferings.<br />
I have not written this message to promote the<br />
Farmers Group over Allstate Insurance Company;<br />
I merely want to highlight the damage that Tom<br />
Wilson’s regime has done to the company and its<br />
talented agency force.<br />
Many <strong>of</strong> you reading this message are newer<br />
Allstate agents. I wish my message could be more<br />
upbeat, but I have seen too many careers ruined<br />
and too many lives torn asunder by the actions <strong>of</strong><br />
the current management regime. You are fortunate<br />
PRESIDENT continued on page 8.<br />
6 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
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<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 7<br />
© Copyright 2012
letters to NAPAA<br />
Just a heads up in case you haven’t<br />
heard, Matt Winter used the word “franchise”<br />
at least twice when referring to our<br />
business when he spoke at the Orlando<br />
Forum. In my opinion, he used that word<br />
to describe the agent business opportunity,<br />
or at least that’s what I took away<br />
from the meeting. On the other hand,<br />
maybe he just strayed <strong>of</strong>f the reservation<br />
with his comments.<br />
I truly think that management is trying<br />
to grow the Allstate Brand and trying to<br />
walk the same fine line that Farmers does<br />
with 21st Century. For our sake, I truly<br />
hope we’re successful. Based on what they<br />
said at the Forum, they plan to re-invent<br />
the role <strong>of</strong> the Field Sales Leader to help<br />
develop agencies that want to grow and<br />
improve on their processes.<br />
I thought the Forum was useful because<br />
<strong>of</strong> the interaction and sharing that<br />
took place between the agents during the<br />
breakout session. We met in small groups<br />
to talk about things that work and some<br />
vendors that don’t work. I picked up<br />
some good ideas that I’ll try in my agency.<br />
I guess that just proves you can teach<br />
an old dog some new tricks!<br />
Editor’s response: I suspect that Matt’s<br />
use <strong>of</strong> the word “franchise” was meant in<br />
the broader business definition, which does<br />
not always pertain to franchisor/franchisee<br />
businesses that are regulated by federal and<br />
state law.<br />
I wanted to take a quick moment to<br />
update you on our local Kick<strong>of</strong>f meeting<br />
last week. Mr. Winter was very interesting<br />
to listen to. If he does everything he<br />
says, then we will be a great company<br />
again, but I’m not banking on it.<br />
What I found most interesting was<br />
the amount <strong>of</strong> time he spent honestly<br />
discussing the “bad moves” that the company<br />
has made. He admitted that their<br />
plans were poorly executed and caused us<br />
to lose focus on growth. These included<br />
the renewal questionnaire fiasco, property<br />
non-renewals, auto rate increases…<br />
and the list went on. He also admitted<br />
that their initiatives would cause market<br />
share to fall and stall growth, but would<br />
stabilize the book and earn more pr<strong>of</strong>it.<br />
If they had just explained this up front, a<br />
lot <strong>of</strong> bad blood could have been spared.<br />
Instead, they chose to threaten or terminate<br />
us for our failure to grow.<br />
I wondered how Mr. Winter could get<br />
up on stage and publically admit that the<br />
company’s plan did not allow for growth<br />
– a plan that resulted in a great deal <strong>of</strong><br />
pain and anxiety for the agency force<br />
– and then stand there and say that we<br />
must move past “our” mistakes and look<br />
towards a brighter future and allow for<br />
more capacity to grow our agencies. As<br />
I heard this, I wondered if he would say<br />
the same thing if he was called to testify<br />
in court.<br />
In the end, maybe this is a good sign<br />
for those <strong>of</strong> us who made it through the<br />
Great Agent Purge. Unfortunately, these<br />
words were too little, too late for my fallen<br />
friends, family and colleagues.<br />
How come NAPAA never took any<br />
legal action over last year’s outrageous<br />
commission cut to 9/9 or the shortages<br />
in our comp statements<br />
Editor’s response: Unfortunately, we had<br />
no basis to sue Allstate over the 1% commission<br />
reduction. The contract that you and the<br />
rest <strong>of</strong> the agency force signed allows Allstate<br />
to change commissions at any time with a<br />
90-day notice.<br />
As for the commission shortages, we’ve<br />
asked Allstate’s audit department for a forensic<br />
audit: a request they have yet to comply<br />
with. In addition, we have asked several<br />
agents if they would submit to an audit<br />
<strong>of</strong> their comp history so we could use their<br />
results as pro<strong>of</strong> that the alleged shortages<br />
exist. So far, no one has stepped forward.<br />
Please understand that NAPAA calling for<br />
a forensic audit does not require compliance<br />
from Allstate. If we tried to sue Allstate over<br />
the alleged shortages, both the court and Allstate<br />
would ask for evidence, and as <strong>of</strong> today,<br />
we have none.<br />
By the way, here is Allstate’s most recent<br />
statement regarding the commission issue:<br />
“Deloitte & Touche has validated Allstate’s<br />
SOX control assessments regarding<br />
the financial reporting <strong>of</strong> agency compensation<br />
as part <strong>of</strong> its audit <strong>of</strong> Allstate’s financial<br />
statements. The Audit Committee<br />
has overseen a review and revalidation <strong>of</strong><br />
agency compensation reports and payment.<br />
The review determined that payments have<br />
been correctly made and compensation correctly<br />
reported to agencies and in Allstate’s<br />
financial statements.<br />
As part <strong>of</strong> Allstate’s due diligence in regards<br />
to agency compensation Internal Audit<br />
reviews agency compensation processes<br />
on an ongoing basis and reports any issues.<br />
Additionally, Internal Audit validates all<br />
resolution activities prior to the release <strong>of</strong><br />
bonus payments to agencies.”<br />
Source: EA Independent Contractor Reference<br />
Guide – February 25, <strong>2013</strong><br />
Section title: “Legal Compliance”<br />
PRESIDENT continued from page 6.<br />
to have escaped the acrimonious and painful upheaval that occurred over the past several<br />
years under the direction <strong>of</strong> Tom Wilson. But as long as you remain an Allstate agent,<br />
you will forever be affected by it. Starting with the paltry 9% base commission rate you<br />
are paid. It is among the lowest in the industry and is expected to drop to 8% in 2015.<br />
As much as he may deny it, Tom Wilson is no friend <strong>of</strong> the agent. He has to go – the<br />
sooner the better. What must happen in order to forestall the competition from luring<br />
more agents away and eroding more PIF is for the company to develop a fair contract<br />
that pays an equitable base commission rate and <strong>of</strong>fers more job security.<br />
Don’t allow Mr. Wilson & Company to weaken the agency force any more. If all<br />
8,300 Allstate agents joined NAPAA – the only organization dedicated to your success<br />
– we would have the kind <strong>of</strong> leverage that is needed to effect positive change on<br />
your behalf. Please come grow with us before it’s too late. Ef<br />
8 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
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Continued from page 8.<br />
I was a coastal agent who was recently<br />
terminated after more than 20 years <strong>of</strong><br />
loyal service. Yes, my book had shrunk<br />
and my AFS sales were lacking, but<br />
much <strong>of</strong> that can be attributed to the<br />
company’s property non-renewal initiative<br />
in my state and an uncompetitive<br />
auto rate, which was consistently 20 to<br />
30 percent higher than the competition.<br />
I was on pace to make the company<br />
over $500,000 pr<strong>of</strong>it in my final year,<br />
but they still terminated me. I dare Tom<br />
Wilson to meet me face to face and tell<br />
me how I was harming the company. All<br />
I wanted was to continue working until<br />
I could retire, which was just a few short<br />
years away. All I can say now is, “Thank<br />
you, Tom Wilson, for rewarding my loyalty<br />
by kicking me to the curb. I may have<br />
been one <strong>of</strong> the ‘human modems’ you talk<br />
about, but I’m also a human being.”<br />
A couple years ago, I sold my Allstate<br />
agency. I owner-financed most <strong>of</strong> the<br />
sale, but the buyer stopped paying me<br />
two years ago. I live in a non-garnishment<br />
state where the legal system is as<br />
slow as molasses in January so it is hard<br />
to say when they’ll get around to my<br />
case. I do have the assignment <strong>of</strong> TPP,<br />
but the new agent is running the agency<br />
into the ground and the TPP keeps going<br />
down. Allstate local leaders are aware<br />
<strong>of</strong> this. I also have an attorney, but Allstate<br />
says there is nothing they can do at<br />
this point until the legal system takes action.<br />
All <strong>of</strong> this has put me in a bad spot<br />
financially. Please caution your readers<br />
that seller-financed sales aren’t all they’re<br />
cracked up to be.<br />
I sold my agency to an outside buyer<br />
on October 1, 2012. My manager was<br />
very motivated to bring me a qualified<br />
buyer since she said her job depended<br />
on it. Two other existing agents wanted<br />
to purchase my book, but the company<br />
wouldn’t let them. This doesn’t seem<br />
right, seeing that we are supposed to be<br />
independent contractors.<br />
Hoping all is well with you guys. I understand<br />
the company is losing agents<br />
like crazy.<br />
I’m not sure you if are aware that another<br />
agent has committed suicide. She<br />
was an agent from Tampa and took her<br />
life around Thanksgiving. She had taken<br />
TPP and opened an independent agency.<br />
Apparently, when the company found<br />
out, they withdrew her TPP payments,<br />
causing her great financial stress. As you<br />
know, the company plays hardball. Ultimately,<br />
the financial stress was too much<br />
for her. This is so sad. It certainly wasn’t<br />
the first time and unfortunately, will not<br />
be the last.<br />
NAPAA has been the only thing that<br />
has kept me from losing my mind at times<br />
during my 30 years as an Allstate agent.<br />
Thank you for your commitment to keep<br />
us informed about what is really going on<br />
with the company. You and the organization<br />
are in my thoughts and prayers.<br />
I am very fortunate to have a friend<br />
who owns a pretty large independent<br />
agency with two locations. He wants me<br />
to be a producer for him, but also wants<br />
me to manage one <strong>of</strong> his agencies. In return,<br />
he says he’ll give me a cut <strong>of</strong> the<br />
production written by the producers in<br />
the <strong>of</strong>fice.<br />
I have really gotten to like the fellow<br />
that bought my Allstate agency. He<br />
called me shortly after the sale and wants<br />
me to go to work for him. He knows very<br />
little about running an Allstate agency.<br />
I really feel sorry for him, but I already<br />
committed to working for my independent<br />
agent friend.<br />
I really hope my buyer can make a go<br />
<strong>of</strong> it. It would be sad to see him fail.<br />
Dave Morgan, one <strong>of</strong> the best-liked,<br />
longest-standing agency managers in<br />
Pennsylvania, has left Allstate and gone<br />
to Farmers. He is now working under<br />
former Allstate executive Joe Richardson,<br />
who suddenly left the company a<br />
couple <strong>of</strong> years ago. We all knew Farmers<br />
was looking to hire Allstate agents in<br />
PA, and now with Dave Morgan, they<br />
have a real key to that plan. He’s already<br />
communicated with the agency force by<br />
providing us information on his position<br />
and his phone number. Towards the end<br />
<strong>of</strong> his Allstate career, Dave was trying to<br />
hire agents, but I don’t think his heart was<br />
into it; I think it was just too hard for him<br />
to sell something that should not be sold.<br />
After reading your story, I am pissed<br />
at Allstate. Seriously, corporate America<br />
has had a lot <strong>of</strong> issues for many years<br />
and it never really seems to get any better.<br />
Thank God for people like you who<br />
stand up for their rights and the rights <strong>of</strong><br />
others and just do the right thing. I wish<br />
you both continued success. And, by all<br />
means, keep up the good work.<br />
I have some questions that deserve<br />
scrutiny. One concerns the proprietary<br />
product requirement. According to one<br />
financial publication, a relationship with<br />
a client should exist on trust. One <strong>of</strong><br />
the key elements <strong>of</strong> trust is to always be<br />
objective when presenting investment<br />
choices to clients, especially when competing<br />
products pay higher commissions<br />
than others. Another premise <strong>of</strong> trust is<br />
to always keep the client’s bests interests<br />
ahead <strong>of</strong> your own. So exactly what is<br />
Allstate doing by establishing a proprietary<br />
product quota in order for agents to<br />
get back to 10% commissions<br />
Think about it. If an agent is up against<br />
their proprietary product requirement<br />
and needs a sale, what do you think the<br />
client is going to get, American Funds<br />
or an Allstate annuity An Allstate annuity<br />
or a Prudential annuity My guess<br />
it would be the Allstate annuity. Is this<br />
the agent’s doing or another strong-arm<br />
Continued on page 52.<br />
10 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 11
feature<br />
Florida Region: Observations from the<br />
<strong>2013</strong> Agency Forum<br />
By Dale Revels<br />
This year’s annual kick-<strong>of</strong>f for Florida<br />
agents was held at the Rosen<br />
Shingle Creek Hotel in Orlando,<br />
Florida.<br />
For a buy-in <strong>of</strong> $188, agency owners<br />
were treated to a first-rate dinner, a great<br />
cocktail party and an opportunity to hear<br />
from Matt Winter, president <strong>of</strong> Allstate<br />
Auto, Home and Agencies. He seemed<br />
sincere when he revealed that the company<br />
loves its agents and expects things<br />
to get better as we go forward. If he said<br />
the same things in other regions, it is<br />
sure to be music to the ears <strong>of</strong> an agency<br />
force that was reviled by management<br />
just a few short months ago. He also proclaimed<br />
he wants our agency model to be<br />
the best in the business.<br />
This year I am celebrating 26 years as<br />
an Allstate agency owner and this was<br />
my 24th kick<strong>of</strong>f meeting. As you can see,<br />
I always try to attend, especially when<br />
food and adult beverages are involved.<br />
As I look back at the last quarter century,<br />
there have been many changes.<br />
There can be no doubt that we agents<br />
have been marginalized. We now have<br />
less control over our businesses, and we<br />
earn lower base commissions. While<br />
these and other changes have been difficult,<br />
I believe there may be a silver lining<br />
in our futures as Mr. Winter guides us<br />
through the next few years.<br />
Also speaking at the meeting was Jim<br />
Parolin from Merrimack, New Hampshire.<br />
He is a super-successful agency<br />
owner who had it rough for a couple <strong>of</strong><br />
years but is now back on track as one <strong>of</strong><br />
the top producers in the country. He gave<br />
12 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
a compelling speech about staying positive<br />
and provided copious notes about the<br />
best ways to recruit support staff – copies<br />
<strong>of</strong> which were sent to agents throughout<br />
the Region.<br />
Our Region disclosed that there were<br />
over 700 attendees at the meeting, including<br />
about 200 from management<br />
and meeting vendors. There were lots<br />
<strong>of</strong> new agency owners to meet, as well<br />
as some older, experienced agents who<br />
have managed to survive the challenges<br />
<strong>of</strong> the past few years. Florida lost 400<br />
agents in the past two years, but at least<br />
at this year’s kick<strong>of</strong>f, management didn’t<br />
refer to them as a pack <strong>of</strong> losers, as they<br />
have in the past. Instead, they said that<br />
those who remain have an opportunity to<br />
achieve great success.<br />
From my vantage point, both in the<br />
front and rear <strong>of</strong> the meeting room, I<br />
noted there were three types <strong>of</strong> agency<br />
owners in attendance:<br />
• Older agents like me, who were<br />
perhaps just too stupid to sell and were<br />
willing to make some changes to continue<br />
in this tough environment.<br />
• Newer agents in competitive markets<br />
who are doing well, writing big<br />
numbers and getting large bonuses.<br />
• Agents in the middle who got stuck<br />
because they could not find a buyer or<br />
get a fair price for their books.<br />
After all the meetings, it was during<br />
the networking event where I was able<br />
to interact with all <strong>of</strong> these agent types.<br />
Overall, most were very unhappy with<br />
the new variable compensation plan and<br />
told management directly. Management<br />
politely listened and nodded their heads<br />
when appropriate, but the new comp<br />
plan is here to stay. Of course, there is<br />
still the nagging fear that the company<br />
will lower the base rate to 8% in 2015.<br />
The company’s latest mantra – Foundations<br />
for Success – was <strong>of</strong>ten referenced<br />
throughout the meeting. And even<br />
though the decision to abandon Woople<br />
had probably already made, management<br />
did not mention that it would be eliminated<br />
for <strong>2013</strong>. That struck me as somewhat<br />
strange because most agents told<br />
management it was a waste <strong>of</strong> their time.<br />
Management could have scored some<br />
points had they made the announcement<br />
at the meeting. But then that would be<br />
admitting that one <strong>of</strong> the company’s key<br />
initiatives was in fact a dismal failure.<br />
It appears that the Foundation for<br />
Success will replace Woople. It is a comprehensive<br />
plan to help agency owners<br />
with acquisition, retention, cross-selling<br />
and the customer experience. I think<br />
it best to keep an open mind and learn<br />
what you can from it – maybe it will help<br />
grow your agency.<br />
Even though it has been a rough couple<br />
<strong>of</strong> years in Florida, I think we are finally<br />
positioned for some growth in auto<br />
and other lines. It is clear that the company<br />
lost more agents than it wanted in<br />
the past few years. Why else would they<br />
be on such an aggressive hiring binge<br />
and paying referral fees up to $10,000<br />
in some regions Hopefully, management<br />
has seen that they need us and the<br />
value we bring to the table. Obviously,<br />
the Internet cannot capture the amount<br />
<strong>of</strong> business necessary to grow the company,<br />
so we remain an essential part <strong>of</strong><br />
the company’s success.<br />
Some say talk is cheap and that we<br />
should “watch what they do, not what<br />
they say,” but to me, Matt Winter seems<br />
more genuine those who preceded him<br />
in recent years. But then again, maybe<br />
such a soothing and persuasive corporate<br />
salesman is just what the company needs<br />
to mitigate the huge plunge in agent<br />
morale that has taken place over the past<br />
several years. Based on the results <strong>of</strong> the<br />
latest agent opinion survey, Mr. Winter<br />
has a long way to go to recapture the<br />
trust <strong>of</strong> the agency force. My hope is that<br />
he is sincere and will back up his words<br />
with action. If he is unwilling or unable<br />
to do so, then we’ve gained nothing except<br />
another ineffectual talking head.<br />
Anyone who knows me understands<br />
that I am an eternal optimist, sometimes<br />
to a fault. I want to believe that Matt<br />
Winter is a man <strong>of</strong> his word. I want to<br />
believe that things will get better and<br />
that Matt Winter wants agency ownership<br />
to become a legacy proposition so<br />
agencies can be passed on to future generations.<br />
I want to believe that we will be<br />
more competitive and finally grow again.<br />
And I want to believe that agencies will<br />
see an upward trend in valuations.<br />
Only time will tell if the promises made<br />
at the <strong>2013</strong> Agents’ Forum will come to<br />
pass. My plan is to stay positive and adopt<br />
success strategies so I can grow in <strong>2013</strong><br />
and beyond. The agency force is counting<br />
on you Mr. Winter. For the sake <strong>of</strong> this<br />
great company, don’t let us down. Ef<br />
Dale Revels proudly serves as the immediate<br />
past president on the NAPAA Board <strong>of</strong><br />
Director. He is an active Allstate agent in<br />
Kissimmee, Florida. He has been an Allstate<br />
agent for 25 years and a NAPAA board<br />
member for more than 10 years.<br />
Join the<br />
“ALL Agents Page”<br />
on Facebook<br />
All New Group for Allstate Agents<br />
and Former Allstate Agents Only<br />
https://www.facebook.com/groups/304988616263352/<br />
Click JOIN<br />
once you’re a member, the link will be under<br />
Groups on your Facebook page.<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 13
feature<br />
The Seller’s Side <strong>of</strong> the Sale<br />
By Brian Spillman<br />
I<br />
recently sold my agency after 17 wonderful<br />
years with Allstate. Okay, so<br />
maybe only 15 were wonderful and the<br />
last two fell slightly short <strong>of</strong> the mark.<br />
I purchased two other books during my<br />
tenure as an agent and built a combined<br />
book that exceeded $4 million in premium.<br />
The company sent me the standard<br />
warning letters threatening termination<br />
if I didn’t sell more policies. So like<br />
many other agents, I took it upon myself<br />
to get out <strong>of</strong> a difficult situation – that<br />
was only likely to get worse – by putting<br />
my book <strong>of</strong> business up for sale. Besides<br />
the constant stress and harassment, there<br />
were many other personal reasons for me<br />
to get out, including my desire to spend<br />
more time with my family.<br />
I knew that managers in my region<br />
and elsewhere were on a mission to replace<br />
tenured agents like me with a new<br />
generation <strong>of</strong> agents, perhaps in the<br />
hope that they could somehow improve<br />
agent attitudes and morale. I also knew<br />
that these managers had a stable <strong>of</strong> preapproved<br />
buyers in their hip pockets<br />
who they were ready to present to selling<br />
agents at the drop <strong>of</strong> a hat. I took advantage<br />
<strong>of</strong> this opportunity and that is when<br />
the “fun” began.<br />
Allstate managers marched buyer after<br />
buyer in front <strong>of</strong> me – a total <strong>of</strong> five in<br />
all. “Great,” I thought. I would be able to<br />
choose the highest bidder among them,<br />
as long as he or she was a good fit for<br />
my agency and my clients. But that’s not<br />
how it worked out. Instead <strong>of</strong> me being<br />
able to select the buyer <strong>of</strong> my choice, it<br />
appears that one <strong>of</strong> the competing managers<br />
must have “won out” in a back<br />
room deal – I’m guessing in a hotly contested<br />
game <strong>of</strong> “rock-paper-scissors” –<br />
because suddenly, his buyer became my<br />
only option. In my mind, I pictured him<br />
installing an inground swimming pool in<br />
his backyard with the bonus money he<br />
earned for finding a buyer. The company’s<br />
decision was set in stone and I would<br />
sell to this one buyer. Period.<br />
Lucky for me, the buyer who was being<br />
forced down my throat tendered a<br />
reasonable <strong>of</strong>fer and was a good fit for my<br />
agency. But I could have fared a lot worse<br />
if their buyer had given me a low-ball <strong>of</strong>fer<br />
or was <strong>of</strong> dubious character; either way,<br />
I doubt whether the company would have<br />
cared. Their goal is to hire bodies to fill a<br />
spot and collect a bonus – keep in mind<br />
that the ground had already been broken<br />
for the inground pool and hot tub in the<br />
victorious manager’s backyard.<br />
At that point, I began to work out the<br />
details with the buyer that the company<br />
had custom-chosen for me. I was retained<br />
as a consultant for three months<br />
to smooth over the transition and keep<br />
current customers from leaving in droves.<br />
I was prepared for this.<br />
What I wasn’t prepared for was how<br />
poorly Allstate prepared the new buyer for<br />
this job. He knew how to run a business,<br />
but had no prior insurance experience.<br />
When he came back to the <strong>of</strong>fice from<br />
Allstate training, he didn’t know how to<br />
take a payment or do an endorsement.<br />
Granted, these are tasks normally done<br />
by the agent’s staff, but any agent needs<br />
to know how to do them in the event the<br />
staff is on vacation, sick or quits.<br />
I also wasn’t prepared for how much<br />
time the buyer spent away from the <strong>of</strong>-<br />
14 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
fice in order to attend company meetings<br />
and training classes. So the staff was basically<br />
working with me on a daily basis<br />
instead <strong>of</strong> the new agent/owner. As a<br />
result, questions with no answers began<br />
to pile up and decisions had to be made.<br />
What do we tell our customers What<br />
about vacation time the staff already<br />
planned before the new owner took over<br />
What would be the commission rate for<br />
new business All these were considerations<br />
that needed to be discussed, but I<br />
couldn’t provide any answers because it<br />
was not my business anymore.<br />
Next, we had the Allstate affiliates,<br />
such as LBL, Northeast Agencies,<br />
Hagerty, etc. The new owner had to set<br />
up all <strong>of</strong> these on the fly as he settled in.<br />
Sure, these things could have been set up<br />
ahead <strong>of</strong> time, especially since the company<br />
knew he was going to be the buyer<br />
before I did. But why make things easy<br />
Next came the MAIF account, the staterun<br />
high-risk pool, which nobody told<br />
him about either.<br />
So the new owner is running around<br />
trying to secure appointments with the<br />
various Allstate affiliates while, at the<br />
same time, attempting to learn everything<br />
else all at once. Meanwhile, the <strong>of</strong>fice is in<br />
my hands and the old staff. My thought<br />
was, “What if the staff quit” Who would<br />
operate the <strong>of</strong>fice What would happen<br />
Then I thought <strong>of</strong> the Allstate location<br />
down the street where the new agent/<br />
owner hasn’t set foot in the <strong>of</strong>fice since<br />
purchasing it a month ago, and now it sits<br />
empty with no one to answer the phones<br />
or take payments. Hmmm… I guess that<br />
answers my question.<br />
When the company makes a new hire,<br />
it should hold someone accountable to<br />
help the new agent get up to speed. Apparently<br />
– and I find this particularly<br />
shocking – the company was content to<br />
just let me train the new agent. What<br />
happens when buyers have no mentors<br />
to lean on Most managers can’t help because<br />
they don’t have the skills either. It’s<br />
almost as if the company wants to test<br />
the survival kills <strong>of</strong> its new hires, and if<br />
they fail, so be it.<br />
New agents should have someone in<br />
the <strong>of</strong>fice on a daily basis – at least for the<br />
first few weeks – to help with the transition.<br />
Unfortunately, this doesn’t happen<br />
when managers are paid hiring bonuses<br />
with no teeth. A hiring bonus should<br />
only be paid after a full-year <strong>of</strong> successful<br />
agency ownership. That way, management<br />
is incentivized to ensure success.<br />
Right now, new agents are thrown<br />
against the wall to see if they stick – kind<br />
<strong>of</strong> like the way the company used to run<br />
life promotions on a “submitted premium”<br />
basis, instead <strong>of</strong> an “issued premium”<br />
basis. Agents received accolades<br />
and went on trips for a bunch <strong>of</strong> business<br />
that was rejected or turned down by the<br />
customer because the policy had been<br />
rated up for a medical reason. Those who<br />
wrote the business were heroes, but the<br />
company was the loser. Likewise, when<br />
new agents fail, the company loses out<br />
too. They lose someone who could be –<br />
with a little TLC – a great producer: they<br />
lose up to $10,000 in referral fees paid,<br />
hiring bonuses for the FSL responsible<br />
for hiring the agent, time and energy expended<br />
for new agent school and training<br />
and, perhaps most importantly, they<br />
damage their reputation every time an<br />
agent is forced to shut down an agency.<br />
Sadly, the hiring manager doesn’t care<br />
– he’s got his inground pool and is already<br />
looking for a replacement agent<br />
for the one he just hired. This is akin to<br />
the wacky thinking that went into believing<br />
that paying agents on submitted<br />
life business was a good idea. Why not<br />
pay agents for submitting auto apps on<br />
drivers with multiple major violations It<br />
makes about as much sense.<br />
None <strong>of</strong> my ranting herein is to discredit<br />
the agent who bought my book<br />
or any other new agent. My beef is that<br />
many, if not most, new agency owners<br />
get short shrift in terms <strong>of</strong> basic job-related<br />
information and practical training.<br />
I am now finished with my three<br />
month commitment with my buyer.<br />
He now seems pretty well trained and<br />
is focused on bringing in new customers.<br />
Keeping current customers, however,<br />
does not seem to be on the training<br />
agenda. This surprises me, since growth<br />
is much harder to achieve with an 80%<br />
retention ratio than a 90% retention ratio.<br />
As always, there are two sides to every<br />
coin and I wish him all the best. Ef<br />
WRIGHT BEAMER, Attorneys<br />
SERVING NAPAA AND THE AGENTS OF ALLSTATE SINCE 2000<br />
DIRK A. BEAMER, ATTORNEY<br />
EXPERT CONSULTING FOR AGENTS AND THEIR ATTORNEYS ON:<br />
• ALLSTATE CORPORATE SECURITY INVESTIGATIONS<br />
• BUYING & SELLING BOOKS<br />
• ALLSTATE EA AGREEMENTS<br />
PH: 248.477.6300<br />
WRIGHTBEAMER.COM<br />
DBEAMER@WRIGHTBEAMER.COM<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 15
feature<br />
Errors and Omissions – What You Don’t<br />
Know Could Cost You<br />
By Jim and Nancy Fish<br />
Agents under contract with Allstate<br />
are required to maintain<br />
Errors and Omissions (E&O)<br />
insurance with a minimum per claim<br />
and aggregate limit <strong>of</strong> $1 million.<br />
According to the R3001 EA Manual,<br />
all R3001 agents – with the exception <strong>of</strong><br />
those in New York State – must obtain<br />
E&O insurance through broker CalSurance,<br />
with coverage provided by Fireman’s<br />
Fund Insurance Company.<br />
The policy period for the Allstate<br />
agent group renews each year on October<br />
1st. Agents are required to purchase<br />
the renewal policy online via the Cal-<br />
Surance website by a specified deadline,<br />
typically around September 21st. There<br />
are two payment options: agents can either<br />
pay in full, or pay in three installments<br />
via ACH, the last <strong>of</strong> which is due<br />
by November 1st.<br />
If an agent fails to fulfill his obligation<br />
to renew the policy by the deadline, Cal-<br />
Surance will notify Allstate and they will<br />
pay the premium on the agent’s behalf.<br />
The full premium, plus a 25% “processing<br />
fee” will then be deducted from the<br />
agent’s commission until the premium<br />
and processing fee are paid in full.<br />
New agents are required to purchase<br />
the coverage at least 15 days prior to<br />
their appointment date. The premium is<br />
prorated and must be paid in full.<br />
Changes in company claims<br />
handling procedures are<br />
unconfirmed, but…<br />
Agents have reported a large increase<br />
in the number and types <strong>of</strong> E&O claims<br />
that have been turned over to CalSurance<br />
in the past two years. Several agents who<br />
have been involved in recent E&O incidents<br />
have been told they are responsible<br />
for binding unacceptable risks, regardless<br />
<strong>of</strong> the fact that the company accepted the<br />
risk at the time <strong>of</strong> the transaction and<br />
upon subsequent renewals.<br />
According to the agents, Allstate informed<br />
CalSurance that it incorporates<br />
underwriting guidelines into technology<br />
preventing agents from submitting<br />
unacceptable risks on new business applications,<br />
but that the same technology<br />
does not exist in the policy endorsement<br />
system. One example is the ineligible vehicle<br />
list, wherein the new business application<br />
risk assessment alerts the agent<br />
and rejects the application, but when an<br />
agent adds the same vehicle to an existing<br />
policy, it sails right through the system.<br />
An example <strong>of</strong> such a scenario was<br />
detailed in a letter that appeared in the<br />
last issue <strong>of</strong> <strong>Exclusivefocus</strong>.<br />
Another example involved a $20,000<br />
SPP item on a renters insurance policy.<br />
The customer had covered the item on<br />
their homeowners policy for ten years<br />
and when they sold their home and<br />
moved to an apartment, the agent transferred<br />
the ring to their renters policy by<br />
endorsement.<br />
The company then renewed the renters<br />
policy twice before the insured had a<br />
loss. It became an E&O claim because<br />
the amount <strong>of</strong> coverage on the ring was<br />
out <strong>of</strong> proportion to the amount <strong>of</strong> underlying<br />
personal property coverage on<br />
the base policy.<br />
Once a claim is turned over to CalSurance,<br />
they pay the claim and submit a bill<br />
to the agent for the deductible. The consent<br />
clause in the policy leaves the agent<br />
with virtually no recourse.<br />
In its explanation for the 17% rate increase<br />
in 2012, CalSurance stated there<br />
has been a significant increase in claims<br />
in recent years. They also cited the overall<br />
decrease in the size <strong>of</strong> the agency<br />
force as a factor contributing to the increased<br />
rate.<br />
Some agents speculate the increased<br />
claim activity has not only boosted premiums,<br />
but may have also been the impetus<br />
for prompting Fireman’s Fund to<br />
implement a sliding deductible schedule<br />
that became effective with the October,<br />
2011 policy renewal – a change that<br />
could indicate the company’s expectation<br />
that an increasing number <strong>of</strong> agents will<br />
suffer multiple losses going forward.<br />
Prior to the October, 2011 policy renewal,<br />
the deductibles for E&O claims<br />
were $1,000 on Allstate policies and<br />
$5,000 on Expanded Markets policies.<br />
The new sliding deductible schedule<br />
states that the standard policy deductible<br />
16 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
will be increased if there are more than<br />
two paid claims reported during the prior<br />
three policy periods. Hence, Allstate<br />
agents who experience three, four or five<br />
E&O claims could see their deductibles<br />
rise to $2,000, $3,000 or $4,000 respectively.<br />
The Expanded Markets deductible<br />
is also increased for multiple claims.<br />
CalSurance E&O Facts:<br />
• Coverage is provided for any act, error or omission you become<br />
liable for in rendering or failing to render pr<strong>of</strong>essional services in<br />
your pr<strong>of</strong>ession as an insurance agent. The policy has exclusions,<br />
including dishonest, fraudulent, criminal or malicious acts.<br />
• The policy covers the agent, and employees <strong>of</strong> the agent, including<br />
licensed and unlicensed staff.<br />
• Coverage automatically ceases on the date the EA Agreement<br />
terminates. On that date, the automatic one-year extended reporting<br />
period begins.<br />
• Agents may purchase an optional five-year or unlimited (lifetime)<br />
extended reporting period for 200% or 500% <strong>of</strong> the last annual premium.<br />
The extended coverage must be purchased within 60 days <strong>of</strong><br />
contract termination date.<br />
• If a terminated agent submits a written request for a mid-term<br />
cancellation and a short rate refund <strong>of</strong> premium, the one-year automatic<br />
extended reporting period is reduced to 90 days.<br />
Ignorance is no excuse anymore<br />
In order to avoid potential E&O claims,<br />
it is essential that agents and their staff be<br />
fully familiar with applicable MMGs and<br />
binding authority. Review the MMGs<br />
frequently to stay abreast <strong>of</strong> changes, and<br />
be sure to seek underwriting approval prior<br />
to endorsing an ineligible risk; then do<br />
your best to document any details relating<br />
to the exception.<br />
Agents must be knowledgeable about<br />
the products they are selling. This is especially<br />
true <strong>of</strong> new products, such as<br />
House & Home, which presents a multitude<br />
<strong>of</strong> potential E&O traps for unsuspecting<br />
agents. It is crucial that agents<br />
understand this product so they can fully<br />
explain the coverage limitations <strong>of</strong> the<br />
policy to the customer, especially when<br />
replacing an existing policy that has more<br />
comprehensive coverage. It will also be<br />
important to document those conversations<br />
with the customer. In our view,<br />
policies like House & Home present a<br />
greater potential for E&O claims than<br />
traditional homeowner policies. Don’t let<br />
the customer scream, “But my agent told<br />
me I was covered.” As always, make sure<br />
you cover the bases with the customer<br />
and document, document, document.<br />
Equally as important is the obligation<br />
for agents and staff to submit complete<br />
and accurate applications, a task inherently<br />
more complex than ever before.<br />
The new House & Home policy application<br />
includes information about the<br />
customer’s automobile ownership, auto<br />
insurance policies, driving record, ro<strong>of</strong><br />
geometry, construction materials, and<br />
more. Above all, agents and staff must<br />
be fully aware <strong>of</strong> the consequences resulting<br />
from intentional falsification <strong>of</strong><br />
information in order to obtain a better<br />
rate or better coverage. If your staff is<br />
working on commission basis, there may<br />
be a temptation for them to “cheat” in<br />
order to make more money. At a minimum,<br />
agency owners should spot check<br />
staff applications and contact customers<br />
to verify information if something looks<br />
awry. With good oversight <strong>of</strong> your employees,<br />
you will have fewer E&O claims<br />
and you’ll reduce or eliminate any unethical<br />
conduct by your employees.<br />
“<br />
“All agency<br />
owners should take<br />
proactive steps to<br />
ensure that they<br />
and their employees<br />
fully understand the<br />
MMG guidelines<br />
and binding<br />
authority.”<br />
“<br />
Agents who have not been diligent<br />
in adhering to MMGs in the past also<br />
face another dilemma – how to mitigate<br />
exposures that still remain in their book<br />
<strong>of</strong> business from previous underwriting<br />
transgressions. As an example, the<br />
agent who wrote and told us about the<br />
ineligible vehicle that her staff added to<br />
a policy suddenly realized that there were<br />
probably many more “claims waiting to<br />
happen” within her book <strong>of</strong> business.<br />
When she tried to get a list <strong>of</strong> policies<br />
that had ineligible vehicles insured, Allstate<br />
was unable to provide her with an<br />
accurate accounting, making her efforts<br />
to fix the problems much more difficult.<br />
Worse yet, errors made on policies<br />
outside your own book <strong>of</strong> business are<br />
virtually impossible to find. This is a big<br />
problem. And with the increased expectation<br />
for agents to provide service to orphaned<br />
policyholders, the agent’s E&O<br />
exposure escalates significantly.<br />
So Now What<br />
Once identified, how are past errors<br />
corrected Obviously, Allstate has no<br />
incentive to “clean up” its book <strong>of</strong> business<br />
because they actually benefit from<br />
leaving things the way they are. First,<br />
turning over claims to CalSurance saves<br />
time and money. Once a claim is deemed<br />
to be an E&O, they have little more to<br />
do with it, saving additional claims handling.<br />
Then, by not identifying problems<br />
that need correcting, they can continue<br />
to renew the affected policies for years<br />
on end – collecting premiums on risks<br />
for which they will never pay a loss. It’s<br />
like free money. Last, they save the time<br />
and expense it would take to identify the<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 17
problem policies.<br />
Fixing problem policies is not all that<br />
simple either. Many states have laws that<br />
prohibit insurers from canceling or nonrenewing<br />
policies once they have insured<br />
a risk for a certain amount <strong>of</strong> time. This<br />
problem could be further compounded if<br />
state insurance commissioners uncover<br />
that Allstate is collecting premiums on<br />
risks with no intent to cover future losses.<br />
This leaves it up the agents to ferret out<br />
the tainted policies, and then what Should<br />
they approach each customer and ask them<br />
to voluntarily drop their policies<br />
In our view, the company has some, if<br />
not most <strong>of</strong> the culpability here. Their<br />
primary emphasis has traditionally<br />
been on new business underwriting, as<br />
evidenced by the lack <strong>of</strong> technology for<br />
screening policy endorsements. Renewal<br />
underwriting has typically been confined<br />
to property reinspections, loss history,<br />
credit and MVR history and driver<br />
and use classification. Rarely have SPP<br />
items, add cars or replacement cars ever<br />
been questioned, which leads us to ask,<br />
“Where is the oversight”<br />
Indeed, it is unprecedented for a company<br />
the size <strong>of</strong> Allstate not to have a<br />
state-<strong>of</strong>-the-art system in place to identify<br />
problem renewal risks. And by simply<br />
turning a blind eye to this massive elephant<br />
in the room, Allstate could feign<br />
ignorance and continue to collect premiums<br />
on risks they really don’t insure,<br />
thereby saddling the agency force with<br />
mounting E&O losses that can only lead<br />
to ever-higher E&O deductibles and<br />
premiums.<br />
Certainly, the agents aren’t without<br />
fault here. There are some who intentionally<br />
disregard the guidelines because the<br />
system allows them to do so. And there<br />
are repeat <strong>of</strong>fenders who scam the system<br />
time and again. With a good oversight<br />
system in place, smart management could<br />
readily identify the <strong>of</strong>fenders and take appropriate<br />
action. But, as we’ve seen in the<br />
past, regional and local leaders are <strong>of</strong>ten<br />
reluctant to take action, especially when<br />
the culprit is a top producer.<br />
Going Forward<br />
In our opinion, the company needs to<br />
take the high road here. First, they need<br />
to recognize that they bear some culpability<br />
for this E&O mess. Second, they<br />
should institute a claims amnesty program<br />
which pays for losses resulting from<br />
endorsement changes – occurring before<br />
<strong>2013</strong> – that they failed to underwrite.<br />
And finally, they should immediately incorporate<br />
policy endorsement technology<br />
that warns agents <strong>of</strong> MMG violations.<br />
Responsible agency owners take great<br />
pride in app completion and adherence<br />
to company standards, but like anything<br />
else, nobody is perfect. That’s why computers<br />
come with spell check and grammar<br />
correctors. Likewise, there needs to<br />
be need a system that alerts agents and<br />
staff <strong>of</strong> possible underwriting infractions<br />
before an endorsement is submitted to<br />
Allstate.<br />
Only time will tell if Allstate will<br />
adopt these suggestions. In the meantime,<br />
all agency owners should take proactive<br />
steps to ensure that they and their<br />
employees fully understand the MMG<br />
guidelines and binding authority. Clearly,<br />
higher E&O rates are driven by those<br />
who are ill-prepared and uninformed.<br />
We suggest agents establish an inhouse<br />
system to monitor new business<br />
and endorsement activity, which is something<br />
they can either do themselves or<br />
assign to their most fastidious employee.<br />
Obviously, if yours is a busy agency, it<br />
may not be practical or possible to check<br />
every app and endorsement, but you<br />
should be sure to spot check as many as<br />
you can and let your staff know you’re<br />
doing it. They will soon understand that<br />
you mean business and will pay more<br />
attention to detail. Stay on top <strong>of</strong> every<br />
process in your agency and expect perfection.<br />
Raising staff awareness is essential<br />
for reducing or eliminating needless<br />
errors in your agency.<br />
Other Resources<br />
CalSurance provides several loss prevention<br />
resources that can help prevent<br />
E&O claims; it would be wise for agents<br />
and staff to review them. Hopefully,<br />
heightened awareness by all agents <strong>of</strong><br />
their responsibility to be knowledgeable<br />
about the products they <strong>of</strong>fer, diligence<br />
in their disclosures to consumers, adherence<br />
to binding authority, and making<br />
sure that everyone in their agencies takes<br />
time to document conversations with<br />
customers will result in more stability <strong>of</strong><br />
the E&O group insurance program. For<br />
more information, please visit www.<br />
calsurance.com/allstateagent. Ef<br />
“Allstate will handle errors<br />
and omissions claims involving<br />
Allstate policies (including<br />
facility, flood, and Assigned<br />
Risk policies written by Allstate)<br />
where you are alleged<br />
to have made a mistake, but<br />
the risk is one that Allstate<br />
would have otherwise written.<br />
An example would be<br />
where you fail to add rental<br />
reimbursement coverage to<br />
an Allstate automobile policy<br />
as requested by the customer.<br />
In this type <strong>of</strong> claim situation,<br />
Allstate will pay the claim<br />
once it is determined that an<br />
error or omission occurred as<br />
long as you had authority to<br />
bind the risk. Claims in which<br />
it is alleged that you made a<br />
mistake resulting in no coverage<br />
because the policy type or<br />
coverage was not <strong>of</strong>fered by<br />
Allstate or you exceeded your<br />
binding authority in binding<br />
a risk that did not meet Allstate’s<br />
underwriting criteria<br />
or claims in which it is alleged<br />
you owed a duty to a customer<br />
which you breached (typically<br />
related to inadequate<br />
or lack <strong>of</strong> coverage), will be<br />
covered by your errors and<br />
omission policy through Cal-<br />
Surance. Claims alleging that<br />
you owed a duty to a customer<br />
that you breached can <strong>of</strong>ten<br />
be brought after the end<br />
<strong>of</strong> the agency relationship<br />
with Allstate and this is one<br />
<strong>of</strong> the reasons it is important<br />
that agents who are no longer<br />
active with Allstate purchase<br />
the five-year or Unlimited Extended<br />
Reporting Period coverage.“<br />
Source: R3001 Supplement<br />
18 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 19
feature<br />
In Search <strong>of</strong> Greener Pastures…<br />
Allstate vs. State Farm vs. Independent Agent<br />
Submitted anonymously<br />
My story starts back at the beginning<br />
<strong>of</strong> 2004. I was at a<br />
job for 15 years and was looking<br />
to make a change. A friend <strong>of</strong> mine<br />
was an Allstate agent and recommended<br />
me to be an agent for them. That’s when<br />
things changed. Allstate came after me<br />
really hard. They romanticized the opportunity<br />
by telling me how great it was<br />
and how much money I could make as an<br />
Allstate agent. I had no reason to doubt<br />
what they were telling me was true, so<br />
I jumped in headfirst without knowing<br />
anything about the insurance business.<br />
After eight years I’d had enough. The<br />
never-ending parade <strong>of</strong> inept managers,<br />
each one more incompetent that the<br />
last, and the despicable actions <strong>of</strong> some<br />
<strong>of</strong> my agent peers was simply too much<br />
to tolerate. There were Allstate agents<br />
who called other agent <strong>of</strong>fices to steal<br />
staff, broke company rules and/or violated<br />
state laws while the company looked<br />
the other way and even rewarded them.<br />
The company didn’t care what they did<br />
as long as they were writing lots <strong>of</strong> new<br />
business. That was the overriding factor<br />
that drove me over the edge in my decision<br />
to leave.<br />
They would put these agents up on a<br />
pedestal and shower them with accolades,<br />
nice trips and rewards for their nefarious<br />
behavior. The next thing you’d hear was<br />
that they were being investigated by the<br />
department <strong>of</strong> insurance or having E&O<br />
claims filed against them. Conduct <strong>of</strong><br />
this kind is reprehensible and I just could<br />
not be part <strong>of</strong> it any longer, especially<br />
feeling as I did that management was<br />
effectively condoning such behavior by<br />
feigning ignorance <strong>of</strong> its existence.<br />
In January <strong>of</strong> 2012, I sold my $1.5<br />
million book <strong>of</strong> business to a young kid<br />
who had worked for another agent who<br />
had failed. I was going to take the money<br />
that I had left over from the sale – which<br />
wasn’t much after paying <strong>of</strong>f all the debt<br />
I’d run up as an “independent contractor”<br />
Allstate agent – to stay at home with my<br />
new little baby girl. My plan was to stay<br />
at home with her for two years and then<br />
when she was old enough to go to preschool,<br />
I would go back to work.<br />
Shortly after I sold my book, State<br />
Farm came a-callin’. They wanted me<br />
to take over a book <strong>of</strong> business in the<br />
Cleveland area. They <strong>of</strong>fered me $90,000<br />
a year while I was in training and then<br />
would hand me a $2.2 million book <strong>of</strong><br />
business. While it was a great <strong>of</strong>fer, I was<br />
torn because <strong>of</strong> my desire to stay home<br />
with my baby daughter. The practical<br />
side <strong>of</strong> me said to accept the <strong>of</strong>fer, but<br />
my emotions told me to follow my heart.<br />
Besides, there were other considerations,<br />
like the non-compete I had with the<br />
buyer <strong>of</strong> my agency. But the location <strong>of</strong><br />
the State Farm agency was far enough<br />
20 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
away that it would not violate the agreement,<br />
so now I had to make my decision.<br />
In the end, my pragmatic side won. To<br />
begin with, two years out <strong>of</strong> the job market<br />
would make it harder to find employment.<br />
And since it was unlikely I would<br />
ever get another <strong>of</strong>fer like the one from<br />
State Farm, I decided to seize it. After<br />
all, how much worse could it be than the<br />
experiences I had with Allstate<br />
Well, after the first week <strong>of</strong> training<br />
at State Farm I knew it wasn’t for me.<br />
In fact, I knew I didn’t want anything to<br />
do with them. Sure, Allstate has its pros,<br />
cons and quirks, but so does State Farm.<br />
State Farm is like a cult, which is a little<br />
scary. For one thing, they talked openly<br />
about “drinking the Kool-Aid,” which<br />
gave me a bad feeling. There was no way;<br />
I was too old to be brainwashed. Despite<br />
this, I stuck it out for a while because the<br />
money was good.<br />
There are some definite differences<br />
between the two companies. Allstate<br />
only cared if I had enough money on<br />
hand to start a business; they could have<br />
cared less about an ongoing business<br />
plan. Sure they required one upfront,<br />
but they rarely ever referred to it again in<br />
the eight years I was there. In fact, when<br />
I was hired, I was told to borrow my<br />
buddy’s business plan and put my name<br />
on it. The next thing I knew, I was an<br />
Allstate agent with no knowledge <strong>of</strong> the<br />
insurance business! Their training was<br />
laughable; there was no preparation for<br />
the real-life situations I would face in the<br />
field. Basically, they hire you and throw<br />
you to the wolves. I guess that’s because<br />
they don’t really have a stake in your success.<br />
Start a scratch agency or buy one, it<br />
doesn’t cost them anything, so they have<br />
nothing to lose.<br />
It took me about two years before I felt<br />
comfortable as an Allstate agent. While<br />
I was an agent they encouraged agents to<br />
buy other books and run multiple agencies,<br />
now how dumb is that You’re no<br />
longer an agent, you’re a CEO. In my experience,<br />
people want to talk with their<br />
agents. Mega agents don’t do that; their<br />
LSPs do all the talking.<br />
With State Farm, it was much different.<br />
They were all about the business<br />
plan. Managers wanted to see it every<br />
other week. If they didn’t like what they<br />
saw, they would tell you to change it,<br />
even going as far as telling you what they<br />
wanted it to say. I thought, “This isn’t my<br />
business plan, it’s theirs.” That drove me<br />
crazy because whenever I added something<br />
in the plan that I wanted to do,<br />
they would always shoot it down by saying,<br />
“No, you need to change it to this<br />
or that.”<br />
As far as training though, they were<br />
the complete opposite <strong>of</strong> Allstate. At<br />
State Farm, you have to do a lot <strong>of</strong> roleplaying<br />
and this was done with someone<br />
sitting there watching your every move<br />
and listening to every word you said and<br />
the manner in which you said it. Afterwards,<br />
they would critique you, instructing<br />
you what to say and how you should<br />
have said it. They want you to be perfect;<br />
so perfect, in fact, that you might as well<br />
be a robot.<br />
Now what was strange about the State<br />
Farm mentality was that they constantly<br />
boasted about being number one and the<br />
fact that they have 108 products to sell,<br />
from auto and home policies to checking<br />
and savings accounts to home and auto<br />
loans. And as a new agent, you better sell<br />
all <strong>of</strong> them or you face the risk <strong>of</strong> losing<br />
your agency.<br />
Allstate is certainly all about controlling<br />
their agents, but they can’t hold a<br />
candle to the amount <strong>of</strong> control at State<br />
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In my mind, you would have to be<br />
young or really dumb, or both to put up<br />
with the BS that the new agents have to<br />
endure. It’s like being a fraternity pledge<br />
forever. You have to be okay with being<br />
told everything, from running your<br />
agency to policy sales or turning on the<br />
c<strong>of</strong>fee pot. This is micro-management<br />
to the extreme.<br />
In total, I spent about three months<br />
with State Farm. The normal one-year<br />
training program was reduced for me<br />
because <strong>of</strong> my previous experience and<br />
the fact that I had all my licenses. Even<br />
though I’d made it halfway through<br />
the training, I had to get out because I<br />
couldn’t take it anymore. I don’t know,<br />
maybe after I had become a full-fledged<br />
State Farm agent, it might have been<br />
okay, but I seriously doubt it.<br />
That is my experience with the two<br />
largest P&C carriers in America. Now I<br />
am an independent agent and truly believe<br />
I have finally found a greener pasture.<br />
Nobody tells me what to do and I<br />
have no life quotas to meet in order to<br />
keep my job. I get paid more commissions<br />
and I am treated with respect by<br />
the carriers I represent. This is the best<br />
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I belong. I should have done this a long<br />
time ago… Ef<br />
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<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 21
sales and marketing<br />
Are the Patients Running the Asylum<br />
By Bill Gough<br />
I<br />
get questions all the time about training<br />
staff, keeping them accountable,<br />
pushing them to close more sales,<br />
etc. Next to your book <strong>of</strong> business, your<br />
staff is the most important part <strong>of</strong> your<br />
agency and your biggest expense. As<br />
savvy business owners, we must do whatever<br />
we can to make our employees more<br />
productive by taking a proactive role in<br />
training them and setting them up for<br />
success, which will ultimately help our<br />
businesses thrive.<br />
“You are a direct reflection <strong>of</strong> your staff.<br />
If they stink, it’s because you stink. You’ve<br />
allowed them to become the way they are.”<br />
– Bill Eggar, Allstate Agency Owner &<br />
Green Sheet Process Creator<br />
Remember, it is your name on the front<br />
door, not your receptionist’s and not your<br />
<strong>of</strong>fice manager’s. Therefore, you are the<br />
one that is responsible for whether your<br />
staff sinks or floats.<br />
What are you doing to actively train<br />
your staff, hone your systems and processes,<br />
and create a team that consistently<br />
produces great results If your answer<br />
is “not much” or “nothing,” then the<br />
patients are running the asylum and it’s<br />
time for you to take control.<br />
In 2012, Wendy Murphy, who was the<br />
vice president <strong>of</strong> my agency, bought my<br />
book <strong>of</strong> business and became the agency<br />
owner <strong>of</strong> The All-American Agency. She<br />
now trains her staff – with my help – using<br />
the very best practiced, scripted processes<br />
and systems. She keeps her staff<br />
accountable by making every task measurable<br />
and setting high expectations.<br />
Following are two great examples <strong>of</strong><br />
things Wendy is doing in her agency to<br />
take a proactive role in training her staff.<br />
See her results below… and remember, if<br />
we can do it, so can you!<br />
Every campaign Wendy runs has multiple<br />
steps across many media types…<br />
calls, postcards, emails, etc. In January<br />
<strong>2013</strong>, Wendy started a new campaign<br />
to convert term life insurance customers<br />
to permanent life customers. One <strong>of</strong><br />
the steps in this campaign is, <strong>of</strong> course,<br />
making a call to the customer. The script<br />
for this call is tailored to be a follow-up<br />
to the Allstate “Call Me” postcard and is<br />
designed to create curiosity so the customer<br />
will call back. The script itself is<br />
simple…<br />
“Hello Mr. Jones, this is Sarah with<br />
Wendy Murphy’s Allstate <strong>of</strong>fice. I was<br />
calling you today because it is time for us to<br />
do a review <strong>of</strong> the life insurance you have<br />
with us. I wonder if you could check your<br />
schedule to see if Monday or Tuesday <strong>of</strong><br />
next week would work for Cecil to come<br />
out to your home. Which day would you<br />
prefer”<br />
If you need to leave a voice message,<br />
it’s simpler…<br />
“Hello, this is Sarah with your Allstate<br />
agency. I need you to call me about your<br />
life insurance. My number is _______.”<br />
Just from using these simple scripts<br />
in combination with the other steps and<br />
media, Wendy’s staff is getting amazing<br />
results. Initially, her staff made 12 calls,<br />
producing four appointments. But that’s<br />
not all; she received five call-backs from<br />
customers after leaving voice messages<br />
and wrote six policies totaling more than<br />
$7,000 in premium – and at the time she<br />
shared these numbers with me, they still<br />
had two appointments to go! This campaign,<br />
when thoroughly completed, is<br />
practically fail-safe.<br />
The second example I want to share<br />
with you is about the importance <strong>of</strong><br />
building a solid “Referral Culture” in your<br />
business. Wendy’s staff is trained to ask<br />
for referrals within the first 30 seconds on<br />
customer calls. We use a full page in our<br />
printed monthly newsletter to promote<br />
our referral program and seek referrals at<br />
every possible opportunity. We don’t wait<br />
for the referrals to come to us… we take<br />
action and go out and get them!<br />
We started taking a proactive approach<br />
with our referral program at The All-<br />
American Agency in 2004 and it is now<br />
responsible for more than $1 million in<br />
annual auto and home premiums. Almost<br />
a third <strong>of</strong> Wendy’s new business today<br />
comes from referrals. We’ve generated $1<br />
million in 7 years strictly from referrals!<br />
These pointers are simple to implement<br />
and cost-efficient. As long as your staff is<br />
in the <strong>of</strong>fice anyway, you might as well<br />
help them reach their full potential. With<br />
success come high-fives, enthusiasm, better<br />
attitudes and more income for all. Ef<br />
Bill Gough is a former multiple awardwinning<br />
Allstate agent and President <strong>of</strong><br />
BGI Marketing Systems. BGI specializes<br />
in coaching and training agency staff. Don’t<br />
make the mistake <strong>of</strong> training by trial and<br />
error. If you want to significantly improve<br />
your staff ’s performance get the best from the<br />
22 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
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Allstate Agent<br />
Batavia, NY<br />
For Full Details Go To:<br />
www.BGISpecialOffer.com<br />
Or Call: 877-208-9649<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 23
sales and marketing<br />
Practicing the Golden Rule<br />
By Ed Horrell<br />
One <strong>of</strong> the ongoing surveys conducted<br />
nationally by The Kindness<br />
Revolution reflects that<br />
over 65% <strong>of</strong> front-line service providers<br />
feel underappreciated by their customers.<br />
When probed further, the respondents<br />
indicated that this lack <strong>of</strong> appreciation<br />
stems from an absence <strong>of</strong> simple comments<br />
or indications <strong>of</strong> “thank you” as<br />
well as rudeness or inappropriate behavior<br />
on the part <strong>of</strong> customers. They also<br />
virtually all agree that they can spot rude<br />
or indifferent customers by their behavior<br />
as soon as they walk in the door.<br />
In a similar survey, 95% <strong>of</strong> respondents<br />
state that customers who are kind and respectful<br />
to their server will receive better<br />
service! In other words, kind, congenial<br />
customers receive better customer service<br />
from service providers.<br />
As I travel around the country speaking<br />
to different groups, one topic they all<br />
seem to agree on is that customer service<br />
has deteriorated greatly in the last decade<br />
or two. So much so, the once-popular<br />
motto used by many businesses <strong>of</strong> yesteryear<br />
– “service with a smile” – now seems<br />
anachronistic.<br />
But is it a coincidence that the consumer’s<br />
treatment <strong>of</strong> front-line service<br />
providers has fallen to a new low as well<br />
After all, how accommodating can we<br />
expect front-line service providers to be<br />
if they are routinely berated or otherwise<br />
disrespected<br />
If we ever want this condition to improve,<br />
consumers and service providers<br />
alike must realize that kindness begets<br />
kindness. Our behavior as customers<br />
can have a direct impact on the quality<br />
<strong>of</strong> service we receive. In other words, we<br />
have a great amount <strong>of</strong> influence over the<br />
quality <strong>of</strong> service we receive as a result <strong>of</strong><br />
the way we behave and interact.<br />
At The Kindness Revolution, we<br />
have enjoyed numerous and engaging<br />
conversations with front-line service<br />
providers from restaurants to call centers.<br />
While the training <strong>of</strong> these service<br />
providers is varied, the opinions tend to<br />
remain the same. Kind customers receive<br />
better customer service than rude ones<br />
and mean customers are not as likely to<br />
get “gold standard” service that more respectful<br />
customers might get.<br />
Allstate agents and staff are also service<br />
providers and sometimes feel the<br />
“<br />
Consumers<br />
and service providers<br />
must realize that<br />
kindness begets<br />
kindness.<br />
“<br />
brunt <strong>of</strong> rude or unappreciative customers.<br />
But insurance agencies differ from<br />
other service providers in that it is the<br />
customer who opts to establish the relationship,<br />
thereby forming a bond that is<br />
commonly considered to be long-term.<br />
As such, customers are inclined to shop<br />
around before settling on an agent. Generally,<br />
they buy from someone courteous,<br />
caring and trustworthy. Most will shun<br />
agents they distrust or dislike because<br />
they know they’ll probably be unhappy<br />
and don’t relish the thought <strong>of</strong> beginning<br />
the search anew. So in the world<br />
<strong>of</strong> insurance, customers establish loyalty<br />
upfront because they recognize the permanency<br />
<strong>of</strong> the relationship.<br />
Compare this to the restaurant industry,<br />
where it is common for diners to<br />
patronize several different restaurants a<br />
month. And while customers may have<br />
a strong allegiance to certain restaurants,<br />
the bond is seldom the same as it is be-<br />
tween an agent and his customer. This<br />
may be one reason why restaurant customers<br />
are sometimes demanding and<br />
rude to the wait staff, even when service is<br />
satisfactory. Of course, this can happen at<br />
Allstate agencies too, but my guess is that<br />
it happens with much less frequency. The<br />
bottom line is that changing restaurants<br />
is easy, while changing insurance agents is<br />
an unwelcome and time-consuming task.<br />
Many Allstate agents have joined The<br />
Kindness Revolution, where we encourage<br />
the support <strong>of</strong> people on the front lines.<br />
We do this via our “Kindness Cards,” which<br />
are given to deserving front-line providers<br />
with a “Thank You” from our initiative.<br />
These cards are then showed to their managers<br />
and company owners, whose normal<br />
responses range from “Thank you” to “Tell<br />
me how I can get involved with the kindness<br />
movement.”<br />
Our Community Champions – who<br />
distribute these cards via their teams and<br />
colleagues – tell wonderful stories about<br />
the responses they receive as a result <strong>of</strong><br />
these small tokens <strong>of</strong> appreciation. The<br />
fact that a customer would take a moment<br />
to leave a simple thought <strong>of</strong> appreciation<br />
can be the difference between just<br />
another day and a really GOOD day.<br />
Try it yourself… take a minute to be<br />
kind to your service providers, including<br />
the wait staff at your favorite restaurant<br />
and the hard-working staff in your Allstate<br />
agency. The key is to always go out<br />
<strong>of</strong> your way to say “thanks” when you get<br />
great service.<br />
Lead with kindness. It will make your<br />
day! Ef<br />
Ed Horrell is the founder <strong>of</strong> The Kindness<br />
Revolution and is the author <strong>of</strong> the bestselling<br />
book <strong>of</strong> the same name. For more<br />
information, visit www.thekindnessrevolution.net<br />
or send e-mail to allstate@thekindnessrevolution.net.<br />
24 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
The Ki ndness Revol uti on<br />
<br />
Welcomes its new partnership with NAPAA<br />
Our goal is to start a Revolution <strong>of</strong> Kindness in every community.<br />
To do that, we need a local face to be our Community Champion.<br />
Watch your sales skyrocket when you become the first and only agent<br />
in your community to represent the movement that will make<br />
people smile every time they think <strong>of</strong> you!<br />
The Ki ndness Revol uti on<br />
<br />
Simple, Powerful, Affordable and Effective<br />
For one Allstate agency’s experience, read the accompanying article titled “Kindness is Contagious”<br />
For morei nf or mati on e mail us at: all st at e @t heki ndnessrevol uti on. net<br />
Or call Dave Dail y at 404. 384. 6060<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 25
If you are a successful agency owner<br />
who’s had a good relationship with<br />
Allstate, good for you. Unfortunately,<br />
the vast majority <strong>of</strong> agents don’t share<br />
your experience.<br />
I write this note to all <strong>of</strong> you current<br />
and prospective Allstate agents for one<br />
purpose—to remind you that you don’t<br />
and will never own anything. You will<br />
not be entitled to rights that are generally<br />
afforded to most other “independent<br />
contractors.”<br />
I purchased a book <strong>of</strong> business in Wisconsin<br />
in October <strong>of</strong> 2007, right before<br />
the great recession. As consumers became<br />
more price sensitive, I began losing<br />
clients and it became more difficult to<br />
replace them. Six months into operating<br />
the agency, my corporate partner came to<br />
my <strong>of</strong>fice to tell me, “You’ve tried marketing<br />
your way, now you have to do it<br />
our way.” Pardon me That didn’t sound<br />
like a partnership to me; it sounded more<br />
like a master/slave relationship. It certainly<br />
wasn’t how I learned to partner<br />
with independent contractors in the financial<br />
services industry to help them<br />
become successful.<br />
It was shortly after this meeting that I<br />
first learned about “Expected Results” –<br />
now called “Agency Business Objectives”<br />
– and the consequences <strong>of</strong> not meeting<br />
them. On my birthday, with tears in my<br />
eyes, I explained to my wife that I may<br />
have made a mistake by buying an Allstate<br />
agency. I explained that the 100% leverage<br />
using our property assets could be in<br />
jeopardy. I told her I had recently learned<br />
from NAPAA that I could lose the agency<br />
for failing to meet my P&C or securities<br />
production requirements. This concept<br />
stunned me. My previous work with a<br />
nationally recognized financial planning<br />
company taught me that there are no<br />
production requirements for independent<br />
feature<br />
Lessons Learned<br />
By Mike Handrick<br />
contractors because imposing them would<br />
violate well-established government rules<br />
regarding worker classification.<br />
I was told none <strong>of</strong> this by Allstate; I had<br />
to learn it all on my own. I take full responsibility<br />
for not conducting my due diligence<br />
before buying the agency. I wrongly<br />
assumed that Allstate was a large company<br />
that had figured out the independent contractor<br />
model. After all, they had converted<br />
their agency force to “independent contractor”<br />
status in the year 2000. But I was<br />
wrong – dead wrong.<br />
There was another agent in town who<br />
was ready to retire, but I was told I did<br />
not qualify to buy his book <strong>of</strong> business<br />
because <strong>of</strong> my Expected Results. However,<br />
they then permitted an outside buyer<br />
– with no experience in financial services<br />
– to buy his agency and agreed to let him<br />
buy mine too. They also allowed him to<br />
combine them into one agency. This defies<br />
logic and confirmed that I was hitched<br />
to a leaderless company. It was clear that I<br />
had to find an exit strategy.<br />
I was also told I was “required” to attend<br />
meetings. Really What part <strong>of</strong> “independent<br />
contractor” didn’t company<br />
leadership understand, and why was it<br />
that many top producers in the region<br />
didn’t attend Did the mandatory attendance<br />
requirement extend to them or not<br />
Why were there nine corporate people at<br />
these meetings and 11 agents How come<br />
only two corporate people spoke during<br />
the meetings Why were we paying the<br />
other seven to be there The only other<br />
time I witnessed such waste was working<br />
for the federal government.<br />
As time wore on, Allstate continued to<br />
change the rules for purchasing books <strong>of</strong><br />
business: More liquid cash reserves, requirements<br />
to hire more producers and as<br />
always, final approval by Allstate. That’s<br />
why I say that Allstate agents don’t own<br />
anything. You might as well own another<br />
vehicle. It looks pretty when you first get<br />
it, but the shine wears <strong>of</strong>f quickly. Then<br />
it begins to depreciate in value and there<br />
is nothing you can do about it.<br />
Allstate has failed in creating a management<br />
culture that serves its independent<br />
contractor agents. The company saves millions<br />
each year by not having to pay employee<br />
expenses. The problem is that they<br />
forgot to dispense with their manager/slave<br />
management culture and the managers<br />
who continue to adhere to it.<br />
They simply don’t get it, and it is apparent<br />
to me that they never will until the<br />
board and CEO are replaced. Any plumber<br />
will tell you that “stuff ” flows downhill. It’s<br />
really a shame that such a highly recognizable<br />
name like Allstate is being destroyed<br />
by its Machiavellian-style leadership team.<br />
If you have noticed that your stress level<br />
has risen and you are having bad dreams<br />
that involve death and murder, or if you<br />
spend inordinate amounts <strong>of</strong> time thinking<br />
about how and where to hide bodies, it<br />
may be time to re-examine what you think<br />
you own as an Allstate agent.<br />
On January 1, 2011, I began as a true<br />
independent contractor insurance agent.<br />
In July <strong>of</strong> 2011, I merged my independent<br />
agency with a major financial planning<br />
practice in Central Wisconsin. I’ve<br />
returned to my financial planning roots<br />
by completing my pr<strong>of</strong>essional designations.<br />
We are successfully operating a financial<br />
planning shop that also handles<br />
personal insurance. You can’t operate an<br />
Allstate Insurance agency and launch financial<br />
services from it. The public does<br />
not believe they can get quality financial<br />
planning help from a P&C shop. It may<br />
sound like a decent business model, but<br />
it won’t work. If Allstate was smart, they<br />
would drop the securities business and<br />
focus on their core competencies <strong>of</strong> insurance<br />
and protection products.<br />
For those Allstate agency owners who<br />
remain, I wish you nothing but the very<br />
best. As for me, the future is bright. At<br />
the success rate I am having, the $150,000<br />
loss – associated with my three-year buying<br />
and selling experience as an Allstate<br />
agency owner – will be gone in 24<br />
months. And I’m one <strong>of</strong> the lucky ones.<br />
What is your exit strategy Ef<br />
26 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
uying and selling<br />
Seller Transparency:<br />
the Threshold <strong>of</strong> Acquisitions<br />
By Rick Dennen<br />
In our business, we talk a lot about the<br />
importance <strong>of</strong> due diligence before the<br />
acquisition <strong>of</strong> a business or book <strong>of</strong><br />
business. From white papers to articles<br />
to webinars, we try to educate agency<br />
principals with the hope <strong>of</strong> preventing<br />
acquisition failures. Just when we fear<br />
we’re starting to sound like a broken record,<br />
we hear another first-hand account<br />
<strong>of</strong> a deal gone bad, affirming the need<br />
for this education.<br />
Recently, we received a message from<br />
an agency principal who read one <strong>of</strong> our<br />
articles several weeks too late. He purchased<br />
another agency without conducting<br />
appropriate due diligence and now is<br />
stuck with a poorly performing agency.<br />
He felt the due diligence steps we recommended<br />
were unrealistic because sellers,<br />
as a general rule, are not in the practice<br />
<strong>of</strong> making information available to<br />
potential buyers — at least not the seller<br />
he encountered.<br />
He was partially right. A thorough<br />
due diligence process is unrealistic in<br />
transactions with sellers who refuse to be<br />
transparent. Just as it would be unwise<br />
to buy a house without an inspection,<br />
acquiring a business without detailed<br />
insight into its financials and operations<br />
is a dangerous and risky endeavor.<br />
Transparency by the seller must be the<br />
first condition that’s satisfied before any<br />
other steps are made towards a purchase.<br />
A seller who is reluctant to share information<br />
is waving a huge red flag, warning<br />
you to take a step back and rethink<br />
your decision to pursue an acquisition.<br />
Without proper due diligence, it’s<br />
impossible to predict future returns on<br />
your investment because you can’t accurately<br />
estimate retention levels for<br />
customers, employees and contracts. You<br />
won’t know who key customers are, their<br />
premium revenue or their loyalty to the<br />
agency. Without policy detail and history,<br />
you won’t be able to forecast the<br />
future performance <strong>of</strong> the book. While<br />
this is crucial when purchasing an independent<br />
agency book <strong>of</strong> business, it also<br />
applies to captive agents, especially those<br />
with brokered books that will be included<br />
in the sale. No insight into carrier<br />
contracts provides no means to verify<br />
commissions and no guarantee <strong>of</strong> transferability.<br />
Perhaps even worse, you’ll be<br />
in the dark about employee morale and<br />
which producers might leave and take<br />
valuable customers with them.<br />
Many sellers are reluctant to disclose<br />
details because they view it as a risk.<br />
Potential buyers, after all, are <strong>of</strong>ten<br />
competitors. At the same time, buyers<br />
assume transparency isn’t an option because<br />
<strong>of</strong> the seller’s perception <strong>of</strong> risk. As<br />
a result, they don’t even ask for appropriate<br />
information. In truth, the exchange<br />
<strong>of</strong> sensitive information is critical to the<br />
success <strong>of</strong> the acquisition. In addition,<br />
sellers sometimes commit to transparen-<br />
cy, but later block access to vital information<br />
and avoid or discourage meetings.<br />
Suspicious actions like these should warn<br />
buyers that something may be wrong and<br />
it may be best to walk away.<br />
The solution to all <strong>of</strong> this is for the<br />
parties to sign a nondisclosure agreement<br />
(NDA) or confidentiality agreement.<br />
NDAs give potential buyers access to the<br />
information they need in order to conduct<br />
proper due diligence while also protecting<br />
the seller from a buyer’s misuse or<br />
sharing <strong>of</strong> confidential information and<br />
the solicitation <strong>of</strong> the seller’s customers<br />
and employees.<br />
The simple lesson here is an important<br />
one. If an agency owner refuses to<br />
be transparent, they may have something<br />
to hide and buyers should consider walking<br />
away from the deal. Without seller<br />
transparency, it’s impossible to know<br />
what you’re buying and that is a recipe<br />
for disaster. Ef<br />
Rick Dennen is president and CEO <strong>of</strong> Oak<br />
Street Funding, which provides commission-based<br />
lending for insurance agents that<br />
need capital to buy, build or sell their agency.<br />
Dennen is a licensed agent in the state <strong>of</strong> Indiana<br />
for Life, Accident & Health products<br />
and a licensed Certified Public Accountant<br />
in the state <strong>of</strong> Indiana. In addition, he is an<br />
instructor <strong>of</strong> venture capital and entrepreneurial<br />
finance at the Indiana University<br />
Kelly School <strong>of</strong> Business. He can be reached<br />
at rick.dennen@oakstreetfunding.com.<br />
The materials in this article are for informational<br />
purposes only. They are not <strong>of</strong>fered<br />
as and do not constitute an <strong>of</strong>fer for a loan,<br />
pr<strong>of</strong>essional or legal advice or legal opinion<br />
and should not be used as a substitute for obtaining<br />
pr<strong>of</strong>essional or legal advice.<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 27
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* The materials in these papers are for informational purposes only. They are not <strong>of</strong>fered as and do not<br />
constitute an <strong>of</strong>fer for a loan, pr<strong>of</strong>essional or legal advice or legal opinion and should not be used as a substitute<br />
for obtaining pr<strong>of</strong>essional or legal advice. The use <strong>of</strong> these materials, including sending an email, voice mail or<br />
any other communication to Oak Street, does not create a relationship <strong>of</strong> any kind between you and Oak Street.
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feature<br />
The Psychology <strong>of</strong> a Company<br />
By Brian Spillman<br />
Compartmentalization is a psychology<br />
term and according to<br />
www.abubakarjamil.com, it is defined<br />
as follows:<br />
“Compartmentalization is the psychological<br />
term for placing two or more conflicting<br />
thoughts, values, beliefs or aspects <strong>of</strong> one’s<br />
life in separate mental boxes, and believing<br />
that they got nothing to do with each other.<br />
In simple words, if you have two beliefs<br />
that conflict with one another, your mind<br />
will put them in separate compartments,<br />
and will let you act out on one <strong>of</strong> them,<br />
without you having to deal with a lot <strong>of</strong><br />
internal conflict or guilt while you are committing<br />
that act.”<br />
Sound familiar It should, since Allstate<br />
seems to be using compartmentalization<br />
as a business strategy these days.<br />
Consider the following:<br />
We want to grow, yet we have cut the<br />
sales force 35 to 40 percent over the past<br />
5 years.<br />
We claim to have a great opportunity<br />
for agents, yet we are cutting base compensation<br />
to 9% while Allstate-owned<br />
Encompass has raised theirs to 20%.<br />
We want customers to be completely<br />
satisfied, but we are making significant<br />
cuts to policy coverages with products<br />
like House & Home.<br />
We find and approve great business<br />
people to buy our tenured, underperforming<br />
agencies, but our own bank<br />
won’t loan the money needed to finance<br />
the purchases, making it seem that the<br />
company is approving people who are<br />
just good enough to buy an Allstate<br />
agency, but not good enough to extend<br />
credit to them.<br />
Agents are our future, yet we spend<br />
time and resources buying, advertising<br />
and cultivating direct channels like Esurance.<br />
Although looking at the list above<br />
would make most logical people conclude<br />
that the concepts are diametrically<br />
opposed or mutually exclusive, the<br />
company somehow believes otherwise.<br />
They have either convinced themselves<br />
through some bizarre form <strong>of</strong> rationalization<br />
or mental gymnastics that the<br />
concepts listed above are accordant with<br />
one another. It is either this, or they have<br />
chosen to stick their heads in the sand<br />
and ignore reality.<br />
Consider the following as an example<br />
<strong>of</strong> what I mean. The TV commercial depicting<br />
Mayhem making a snow angel<br />
on a ro<strong>of</strong> laden with heavy snow is one<br />
<strong>of</strong> my favorites. He blows a strong breath<br />
<strong>of</strong> air skyward, causing just enough snow<br />
to fall onto the ro<strong>of</strong> to collapse it. Then<br />
Mayhem declares, “Cut-rate insurance<br />
many not pay for this.” Hmmm…. if that<br />
customer had Allstate’s House & Home<br />
policy and the ro<strong>of</strong> was <strong>of</strong> a certain age,<br />
they could also be in for a financially<br />
devastating surprise. So the very thing<br />
the company is celebrating in their advertising<br />
is what they are taking out <strong>of</strong><br />
their policies. We won’t even get into<br />
the fact that this ad is deceptive because<br />
infers that Allstate customers would be<br />
made whole in this instance, when in fact<br />
they may not be.<br />
The problem with all <strong>of</strong> this stuff is<br />
that it’s hard to trust a company like<br />
this and even harder to figure out where<br />
they’re headed, which could be by design.<br />
As the company recently found<br />
out when it lost more agents than<br />
planned, getting rid <strong>of</strong> too many agents<br />
in one fell swoop would likely cause a<br />
mighty uproar and disrupt customers to<br />
the point where the company may not<br />
be able to recover. Now it appears that<br />
the company wants to slow the agent<br />
exodus from a flood to a trickle. This<br />
revision to slowly reduce the overall<br />
number <strong>of</strong> agents, increase the percentage<br />
<strong>of</strong> new agents, and undermine existing<br />
agencies with inferior back <strong>of</strong>fice<br />
support, will make it easier to pull the<br />
plug if needed. Nobody is sure what the<br />
company will look like in ten years, but<br />
it is crystal clear that its loyalty to and<br />
reliance on agents is a thing <strong>of</strong> the past.<br />
For now, the company will simply<br />
compartmentalize their conflicting and<br />
illogical strategies so that they don’t have<br />
to deal with another psychological concept<br />
– cognitive dissonance. Pretty soon,<br />
the company may find itself lying on a<br />
couch receiving corporate psychoanalysis.<br />
Perhaps by then, the couch will no<br />
longer be covered by insurance because<br />
it might be more than ten years old. Ef<br />
30 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
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feature<br />
Agent Pension Plan Information for<br />
Former Allstate Employee Agents<br />
By Nancy Fish<br />
For the most part, Allstate stopped<br />
hiring employee agents in 1990.<br />
Then in the year 2000, the company<br />
terminated all its remaining employee<br />
agent contracts, except for those located<br />
in certain jurisdictions, such as the state<br />
<strong>of</strong> New Jersey.<br />
At the time, the company had 6,171<br />
employee agents who were affected by<br />
the “Preparing for the Future” initiative,<br />
wherein agents were allowed to continue<br />
their careers only if they agreed to become<br />
independent contractors and suffer<br />
the loss <strong>of</strong> their employee benefits.<br />
Most <strong>of</strong> those affected were over the age<br />
<strong>of</strong> forty.<br />
Of the 6,171 affected agents, 3,772<br />
converted to the EA agreement and continued<br />
their agency relationship; 2,399<br />
selected another option, and parted ways<br />
with the company. Virtually all 6,171<br />
employee agents were vested in the Allstate<br />
Agent Pension fund at the time<br />
their employment contract was severed,<br />
and many <strong>of</strong> those are now approaching<br />
retirement age.<br />
Vesting in the pension plan required a<br />
minimum <strong>of</strong> five years as an employee <strong>of</strong><br />
Allstate. Employment at Sears prior to<br />
1995 could also be counted towards vesting<br />
eligibility for Sears employees who<br />
left and became Allstate agents. Vested<br />
former employee agents who were not<br />
yet 65 when employment ended became<br />
“terminated deferred vested Participants.”<br />
Who is eligible to withdraw<br />
benefits under the plan<br />
Normal retirement age is 65. Agents<br />
hired before 1989 are eligible to receive<br />
early retirement benefits payable at age<br />
63. In addition, agents with 20-plus<br />
years <strong>of</strong> continuous employment can receive<br />
early retirement benefits at age 55.<br />
Early retirement benefits – paid prior<br />
to age 65 – are calculated at a reduced<br />
amount based on your actual age.<br />
Current Allstate Exclusive Agent independent<br />
contractors can take their<br />
retirement benefits as soon as they are<br />
eligible based on age and years <strong>of</strong> employment.<br />
In other words, you may collect<br />
your benefit while still under contract<br />
as an EA independent contractor<br />
agent.<br />
The deferred vested benefit is payable<br />
as an annuity. While several annuity payout<br />
options are available, it is important<br />
to note that monthly payout amounts<br />
are “frozen” and will not change as the<br />
participant ages. Currently, a lump-sum<br />
payout option is still available, but the<br />
plan is under no obligation to continue<br />
it. The lump sum is calculated by applying<br />
a conversion factor – which includes<br />
interest rate and mortality assumptions<br />
– to the straight life annuity benefit.<br />
Consequently, the benefit amount under<br />
the lump sum option may increase<br />
or decrease depending on the prevailing<br />
assumptions in effect at the time a lump<br />
sum is requested.<br />
The Pension Protection Act (PPA) <strong>of</strong><br />
2006 changed the interest rate used to<br />
calculate lump-sum payouts <strong>of</strong> the Agents<br />
Pension Plan from the 30-year Treasury<br />
Bond Rate to a corporate bond segmented<br />
yield curve. As a result, there is no longer<br />
a single interest rate used for lump-sum<br />
payments. As a general rule, if the average<br />
interest rates decrease, the lump sum<br />
equivalent increases, and vice versa.<br />
If you receive your pension benefit in a<br />
lump sum, you can “roll” it into an IRA<br />
32 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
to maintain the tax deferred status. This<br />
must be a direct transfer or the Agents<br />
Pension Plan will withhold 20% <strong>of</strong> the<br />
payout for income tax purposes.<br />
Social Security <strong>of</strong>fset<br />
Agents who became participants in<br />
the plan prior to Dec 31, 1988 should be<br />
aware that pre-1989 benefits contain a<br />
Social Security <strong>of</strong>fset which is calculated<br />
based on estimated compensation earned<br />
from 1951 through 1988.<br />
You have the option <strong>of</strong> having your<br />
actual compensation from 1951 through<br />
1988 – as recorded by the Social Security<br />
Administration – used in the calculation<br />
instead <strong>of</strong> your estimated compensation.<br />
Using your actual compensation in the<br />
calculation <strong>of</strong> your pension benefit may<br />
produce a higher pension benefit. More<br />
importantly, using your actual prior compensation<br />
will never result in lowering<br />
the pension benefit you are entitled to<br />
receive and will not affect the Social Security<br />
benefit you are eligible to receive.<br />
You can obtain your actual 1951<br />
through 1988 earnings history by re-<br />
questing your “Social Security Statement”<br />
from the Social Security website<br />
at http://www.ssa.gov or by contacting<br />
your local Social Security <strong>of</strong>fice. The information<br />
is free <strong>of</strong> charge. Remember to<br />
request your “Social Security Statement,”<br />
not your “Detailed Earnings Information.”<br />
Then you must forward your compensation<br />
history to the Allstate Benefits<br />
Center before requesting the distribution<br />
<strong>of</strong> your pension. The Allstate Benefits<br />
Center must receive your compensation<br />
history no later than four months<br />
from your Payment Start Date.<br />
Death Benefit<br />
If you die as a terminated deferred<br />
vested participant, a death benefit will<br />
be payable to your spouse or other designated<br />
beneficiary. Participants should<br />
be sure all beneficiary information is up<br />
to date.<br />
Estimated Death Benefit<br />
Amount<br />
Your estimated death benefit amount<br />
– stated as a lump sum form <strong>of</strong> payment<br />
– is payable if you die before commencing<br />
payment <strong>of</strong> the Plan benefit. You<br />
can access your estimated death benefit<br />
amount – calculated as <strong>of</strong> the prior yearend<br />
– by calling the Allstate Benefits<br />
Center at 888-255-7772, where you will<br />
be connected to an automated system.<br />
Following the prompts, select the “Retirement<br />
and Investments” option and<br />
then the “Pension” option. You will then<br />
be connected with a benefits representative<br />
who will assist you with your request.<br />
The value <strong>of</strong> your estimated death<br />
benefit could increase or decrease from<br />
time to time because the interest rate the<br />
Plan uses to calculate lump-sum benefits<br />
fluctuates over time.<br />
Eligible agents can learn more about<br />
retirement benefits at the Your Benefits<br />
Resources website at http://resources.<br />
hewitt.com/allstate or by calling the Allstate<br />
Benefits Center at 888.255-7772. By<br />
creating a log-in, agents can view the Summary<br />
Plan Description, project retirement<br />
benefits, compare the payout options, and<br />
start the pension payment process. Ef<br />
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sales and marketing<br />
Reinventing an Unloved<br />
Marketing Strategy<br />
By Scott Brodbeck<br />
Have you ever heard that direct<br />
mail is one <strong>of</strong> the worst ways to<br />
spend your marketing dollars<br />
With an average response rate between<br />
1 and 2 percent, it would be difficult to<br />
argue that the rate <strong>of</strong> return justifies pursuing<br />
this form <strong>of</strong> marketing. It would<br />
be even more difficult to advocate using<br />
direct mail as your primary method <strong>of</strong><br />
marketing, but that’s exactly what this<br />
article will attempt to do.<br />
Before dismissing this idea and moving<br />
on to the next article, let me clarify<br />
a few things. I agree that direct mail in<br />
general isn’t a very good way to market<br />
your business, but the reason response<br />
rates are so low is because direct mail<br />
usually takes a carpet bomb approach<br />
in order to reach as many prospects as<br />
possible. As a result, the vast majority<br />
<strong>of</strong> people receiving a solicitation from<br />
you aren’t aren’t likely to be interested in<br />
whatever it is you’re selling, and depending<br />
on what your mail piece looks like,<br />
they may not even open it.<br />
Therefore, instead <strong>of</strong> using the saturation<br />
method, where everyone in a particular<br />
geographic area receives your direct<br />
mail piece, it makes more sense – and<br />
costs less money – to gear your marketing<br />
efforts toward prospects who are most<br />
likely to be interested in what you’re selling.<br />
This is referred to as targeted direct<br />
mail. Ideally, you want to find a group <strong>of</strong><br />
people who either are looking for what<br />
you have to <strong>of</strong>fer or who are open to<br />
hearing what you have to say.<br />
Let’s think about that from the perspective<br />
<strong>of</strong> a landlord who owns multiple rental<br />
properties. When all the properties are<br />
rented to stable tenants who pay their rent<br />
on time and rarely call with maintenace<br />
issues, the landlord is on top <strong>of</strong> the world<br />
and any issues associated with the properties<br />
are not top <strong>of</strong> mind. But when a tenant<br />
moves out, the landord’s relaxed mindset<br />
suddenly shifts to “dealing with a vacant<br />
property.” This means making repairs,<br />
slapping on a fresh coat <strong>of</strong> paint, advertising<br />
the property and showing it. Every day<br />
without a tenant is a day without rental<br />
income, but that’s not all. Continuing expenses,<br />
such as taxes, mortgage payments,<br />
insurance and utilities must be paid, as do<br />
costs to make the property rentable again.<br />
Could there be a better time to approach<br />
this individual about saving money on their<br />
property insurance I think not.<br />
I’ve always been a fan <strong>of</strong> the Landlords<br />
Package Policy (LPP) – not because the<br />
premiums are the best in town, but because<br />
the multi-policy discount for having<br />
home and auto is pretty substantial in<br />
many states. Typically, local newspapers<br />
run ads for house rentals, which almost<br />
always include the landlord’s telephone<br />
number. What if you cross-referenced<br />
the phone numbers to find out the mailing<br />
addresses <strong>of</strong> each landlord Presto,<br />
now have a mailing list <strong>of</strong> landlords who<br />
may be at their most vulnerable – when<br />
their expenses are high and who are in<br />
the throes <strong>of</strong> finding tenants. It is beyond<br />
the scope <strong>of</strong> this article to go through the<br />
logistics <strong>of</strong> transforming phone numbers<br />
to addresses; but it can be done if you’re<br />
tech savvy and if not, you may want to<br />
consult a tech consultant.<br />
Now let’s move on to targeted homeowner<br />
opportunities. Many people buy<br />
their property insurance from their car<br />
insurance agent and never give it a second<br />
thought. Sending a letter out <strong>of</strong> the<br />
blue to someone about their homeowners<br />
insurance will likely result in the normal<br />
1 to 2 percent response rate. But if you<br />
specifically target homeowners who are<br />
coming up on the anniversary <strong>of</strong> their<br />
purchase date, and if you have a quote in<br />
their hands prior to the receipt <strong>of</strong> their<br />
dec sheet, you will significantly increase<br />
the likelihood <strong>of</strong> a response. Keep in<br />
mind that many policies are billed to the<br />
mortgage company. This creates a couple<br />
<strong>of</strong> obstacles: the first is that you must time<br />
your mailing so it arrives before the motgagee<br />
pays the premium, and the second<br />
is to get your prospects to pay attention to<br />
what you’ve sent them.<br />
When mortgage companies pay the<br />
premium, policyholders don’t tend to<br />
notice rate increases because they aren’t<br />
the one writing the check. When they<br />
receive a notice that says, “Do not pay,<br />
mortgagee has been billed,” they typically<br />
file it away, <strong>of</strong>tentimes without ever<br />
looking at the premium. Your job as a direct<br />
mail marketer is to give them a reason<br />
to shop. Send a mailing that makes<br />
them question their existing coverage<br />
or policy premium. For example, what<br />
if your mail piece asked, “Will you see<br />
a $20 to $50 increase in your monthly<br />
mortgage payments because your homeowner<br />
insurance rates have gone up”<br />
The idea is to pique their interest with<br />
an attention-grabbing headline.<br />
The new House & Home product<br />
has rates that have disappointed many<br />
agents, and true to form, the company<br />
has continued its tradition <strong>of</strong> putting the<br />
majority <strong>of</strong> the insurance buying public<br />
into non-competive IS scores, leaving<br />
only a tiny segment <strong>of</strong> prospects with<br />
a competitive rate. However, there is a<br />
better than average chance that those<br />
in this segment live in close proximity<br />
to one another – in neighborhoods<br />
with higher than average credit. Your<br />
34 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
challenge is to identify homeowners in<br />
specific Zip Codes whose policies are<br />
coming up for renewal based on the anniversay<br />
date <strong>of</strong> their home purchase. To<br />
find the Zip Codes that may contain IS<br />
friendly prospects, keep a log <strong>of</strong> the bestscoring<br />
prospects from your saved quotes<br />
file and from policies you’ve already written.<br />
Once you’ve done that, it’s time to<br />
launch a monthly direct mail campaign<br />
targeting your intended audience. Just<br />
think how powerful this could be if you<br />
were to deliver a competive quote into<br />
your prosepects’ hands a week before<br />
they received the renewal premium from<br />
their current carrier.<br />
The good news is that the information<br />
you need for this type <strong>of</strong> targeted mailing<br />
list is most likely available. Many agents<br />
are familiar with their county assessment<br />
<strong>of</strong>fice, where properties are <strong>of</strong>ficially recorded<br />
for tax purposes. These <strong>of</strong>fices<br />
generally make this information available<br />
to the public online.<br />
What many agents may not be familiar<br />
with is another county <strong>of</strong>fice that records<br />
data specific to deeds and mortgages.<br />
Whereas the assessment <strong>of</strong>fice records<br />
building ownership and characteristics,<br />
the recorder <strong>of</strong> deeds <strong>of</strong>fice records information<br />
detailing when deeds were transferred<br />
and when mortgages were issued.<br />
Oftentimes, the assessment <strong>of</strong>fice will<br />
list the date <strong>of</strong> a property’s sale as the last<br />
date the mortgage was refinanced, presumably<br />
because when refinancing, an<br />
owner must go through a process similar<br />
to that <strong>of</strong> a new property purchase.<br />
Now this is where the boys get seperated<br />
from the men. If an agent doesn’t<br />
dig for more information and mistakes<br />
the re-fi dates for original purchase dates,<br />
he will likely have expended a lot <strong>of</strong> effort<br />
for meager results. The information<br />
you want is the month and year when the<br />
owner first bought the property, not the<br />
date the mortgage was last refinanced.<br />
This is because the original purchase<br />
date will likely be the best indicator <strong>of</strong><br />
the date the homeowner policy will renew.<br />
The recorder <strong>of</strong> deeds <strong>of</strong>fice will allow<br />
you to search for deeds or mortgages<br />
specifically. And since the issuance <strong>of</strong> a<br />
new mortgage doesn’t transfer the deed,<br />
you are able to get the true purchase date<br />
rather than a refinance date.<br />
What the county recorder <strong>of</strong> deeds <strong>of</strong>fice<br />
makes available online varies from<br />
county to county and some are easier to<br />
search than others. If your county’s records<br />
are not search-friendly, there are<br />
other ways to get the information you<br />
need, but it may require the services <strong>of</strong> a<br />
knowledgeable consultant to “scrape” the<br />
pertinent data from their system. Sometimes,<br />
the data from the recorder’s <strong>of</strong>fice<br />
will have to be combined with data from<br />
the assessment <strong>of</strong>fice in order to get the<br />
information you need. This may seem<br />
like a lot <strong>of</strong> trouble and expense, but<br />
that’s actually a good thing because your<br />
fellow agents are not likely to follow suit,<br />
leaving you with a great source <strong>of</strong> leads<br />
and little or no competition.<br />
Now instead <strong>of</strong> randomly sending direct<br />
mail to the masses, you can target<br />
your solicitations to prospects that have<br />
real potential and you can time your<br />
mailings to land in their mailboxes when<br />
they are most likely to act.<br />
When I was an agent and I used some<br />
<strong>of</strong> these methods to generate targeted<br />
mailing lists, there were months when I<br />
would see response rates as high as 10%<br />
to 12%. And because I was very specific<br />
in my targeting, I was able to close a high<br />
percentage <strong>of</strong> those prospects. This was<br />
because I was selective with my mailings,<br />
which were all based on how competitive<br />
my products were in each market. If you<br />
know where your rates are competitive<br />
and where they’re not, you’ll save a lot <strong>of</strong><br />
marketing dollars and wheel-spinning.<br />
Early on in my career, I learned that<br />
nothing worthwhile comes easy. It’s the<br />
same with developing and executing your<br />
marketing efforts. In my case, the amount<br />
<strong>of</strong> time I spent obtaining and refining my<br />
targeted prospect list exceeded the time I<br />
spent in preparing the mail piece, which<br />
included things like printing, signing, and<br />
stuffing envelopes. You will know that you<br />
are truly creating a targeted list when you<br />
find this to be the case.<br />
When it comes to targeted direct mail,<br />
there are two components <strong>of</strong> equal importance.<br />
What we’ve discussed so far is the<br />
first component, which is selecting a very<br />
specific audience. The second is getting your<br />
audience to open and read your correspondence.<br />
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<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 35
piece away before opening the envelope.<br />
Avoid company-approved mailings<br />
and co-op opportunities. For the most<br />
part, these mail pieces are designed and<br />
witten to drive business to the company,<br />
not necessarily to your agency. Therefore,<br />
your objective should be to create a<br />
piece that makes the customer think your<br />
agency <strong>of</strong>fers something that they’re not<br />
going to get through another agency.<br />
Maybe it’s the quote that you’ve included<br />
in your mailer, or the the superior customer<br />
service that comes with being a<br />
customer <strong>of</strong> your agency. The biggest<br />
reason you want to avoid co-op mailings<br />
is because <strong>of</strong> their cookie cutter appearance<br />
– they almost always look like<br />
junk mail and are filled with disclaimers.<br />
Have you ever noticed the fine print at<br />
the bottom <strong>of</strong> a co-op letter Most <strong>of</strong> it<br />
goes along with footnotes in the text <strong>of</strong><br />
the letter and deals with exclusions, legal<br />
notices, etc. While they may be wellmeaning,<br />
but they look like one thing – a<br />
junk mail advertisement.<br />
As a recipient <strong>of</strong> these one-size-fits-all<br />
insurance mailings, I am disappointed by<br />
the lack <strong>of</strong> originality in them. Unfortunately,<br />
these mailings reveal something<br />
about the agents who send them out. I<br />
know an Allstate customer who – because<br />
<strong>of</strong> the mass agent firings in recent<br />
years – has three different Allstate agents<br />
and all <strong>of</strong> them send him the same bland<br />
letter on his birthday. He doesn’t even<br />
open them anymore because the letters<br />
are the same every year.<br />
This same problem happens when<br />
multiple agents solicit the same Zip Code<br />
using company-approved mail pieces. In<br />
instances like this, it is common for prospects<br />
to receive the exact same solicitation<br />
from each agent. There is absolutely<br />
NOTHING personal about form letters<br />
that look like advertisements. Many recipients<br />
simply throw them away, wasting<br />
the agent’s hard-earned marketing<br />
dollars.<br />
Co-op mailings <strong>of</strong>ten include your signature<br />
in the closing <strong>of</strong> the letter. At some<br />
point, you signed a camera card allowing<br />
the company to digitize your signature<br />
and use it on various documents, including<br />
co-op mailings. Unfortunately, it looks<br />
like a digitized signature and it’s blatantly<br />
obvious that you didn’t sign the letter. A<br />
properly targeted direct mail campaign<br />
includes letters that are actually signed by<br />
you. Your actual signature on a letter says<br />
a lot about you. It says that the content <strong>of</strong><br />
the letter is something that is specifically<br />
meant for the recipient. It also says to the<br />
people receiving the mailing that they are<br />
important to you.<br />
The time it takes to sign each letter<br />
in blue ink is a good investment <strong>of</strong> your<br />
time because it tells the prospect that<br />
what they’re reading is personal. A real<br />
blue-ink signature will never be confused<br />
with the artificial black-ink signature<br />
found on co-op form letters.<br />
I know there are those who will disagree,<br />
but I don’t recommend using bulk<br />
mail or putting postage on envelopes<br />
with a postal machine. Instead, use a<br />
first-class stamp. Does this make your<br />
mailing more expensive Yes, it does, but<br />
it significantly increases the likelihood<br />
<strong>of</strong> the envelope being opened. I would<br />
much prefer having each <strong>of</strong> my individually<br />
stamped envelopes opened and pay<br />
the associated postage than save a few<br />
dollars and have 6 out <strong>of</strong> 10 envelopes<br />
thrown away unopened. At that rate, you<br />
would have to nearly double the number<br />
<strong>of</strong> letters in your mailing – significantly<br />
increasing your postage costs – to get the<br />
same response as your first-class mailing.<br />
I call this working smarter, not harder.<br />
Do you know the difference between<br />
First-Class Mail, Express Mail, Priority<br />
Mail, Certified Mail and Registered<br />
Mail Many people don’t and that can be<br />
used to your benefit. With all <strong>of</strong> the options<br />
available when you go to the post<br />
<strong>of</strong>fice, it can be easy for people to confuse<br />
First-Class Mail with Priority Mail<br />
and mistakenly believe that anything<br />
sent first-class is special or otherwise important.<br />
If you put a stamp on a letter<br />
and drop it in the mail it will be sent via<br />
First-Class Mail. There is nothing that<br />
says you can’t include the words “First-<br />
Class Mail” on the face <strong>of</strong> the envelope.<br />
Since it’s going to go first-class whether<br />
you specify so or not, I recommend you<br />
invest in a self-inking red stamp that says<br />
“First-Class Mail” and that you stamp it<br />
on the envelope to the left <strong>of</strong> the address<br />
<strong>of</strong> the recipient. Why Because it looks<br />
more important, and since many people<br />
associate “First-Class” with something<br />
above and beyond normal mail, their first<br />
inclination is to open the envelope when<br />
they receive it.<br />
One final trick is to include a photo <strong>of</strong><br />
something that belongs to the customer<br />
on the envelope. I used to take photos <strong>of</strong><br />
contractors’ work trucks when I was out<br />
and about and would send them a letter<br />
about commercial auto insurance. In the<br />
lower left corner <strong>of</strong> the envelope I would<br />
print the photo on the envelope along<br />
with a line <strong>of</strong> text that read, “Important<br />
Information Enclosed.” This increased<br />
the amount <strong>of</strong> time it took to print the<br />
envelopes, but after setting up a special<br />
template, all I had to do was drop the<br />
photo into the template and hit print.<br />
If you’re sending a mailing about homeowners<br />
insurance, many county assessment<br />
websites include photos <strong>of</strong> houses<br />
on the parcel’s webpage. It is almost<br />
guaranteed that when someone receives<br />
a letter with a photo <strong>of</strong> their house or vehicle<br />
on the front <strong>of</strong> the envelope they<br />
will open the letter – you can’t get more<br />
personal than this!<br />
Hopefully, you will now agree that<br />
what many consider to be one <strong>of</strong> the<br />
worst ways to advertise may actually<br />
be one <strong>of</strong> the best, especially if you put<br />
some thought into who your prospects<br />
are, what your envelope and letter look<br />
like and the timing <strong>of</strong> when you send it.<br />
Targeted direct mail is more complicated<br />
than just stuffing envelopes and sending<br />
out mass mailings. Finding the right target<br />
audience and sending personalized<br />
and meaningful correspondence to them<br />
at a time when they are most likely to<br />
act on it, will open the door to increased<br />
sales. Then, when they respond to your<br />
letter – and you will be pleasantly surprised<br />
at how many will – make sure that<br />
when all is said and done, you have taken<br />
every opportunity to cross-sell every line<br />
<strong>of</strong> insurance they need and you’ll be well<br />
on your way to growing your book! Ef<br />
Scott Brodbeck is a Micros<strong>of</strong>t Certified<br />
Systems Engineer and a Master Certified<br />
Novell Engineer who is also a former<br />
EA and IA. Currently he develops technical<br />
marketing tools and provides marketing<br />
consulting services specializing in the pr<strong>of</strong>itable<br />
growth <strong>of</strong> insurance agencies. He can be<br />
reached via email at scott@scottbrodbeck.<br />
36 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
feature<br />
The Saboteurs<br />
By Dave Thorpe<br />
I<br />
wanted to write an article describing<br />
how low-level employees can sabotage<br />
a company in the eyes <strong>of</strong> its clients<br />
and do more harm collectively than an<br />
incompetent CEO might. I thought I’d<br />
start with a few personal experiences and<br />
build from there. First, let me say that<br />
I didn’t want to limit my study to just<br />
the insurance industry. And rather than<br />
limit this article to my own personal experiences<br />
and those <strong>of</strong> people I know, I<br />
decided to use statistics compiled by JD<br />
Power for credibility and to add a national<br />
perspective. Easier said than done.<br />
Before we get started on this endeavor,<br />
I have always found it interesting how<br />
few retired Allstate agents have kept<br />
their personal policies with Allstate. As a<br />
case in point, I know <strong>of</strong> no retirees – other<br />
than me – who have done so. They’re<br />
now with AARP, USAA, State Farm<br />
and others. In other words, they are insured<br />
with anyone but the company that<br />
feathered their nests and nurtured them<br />
during their insurance-selling years. Clients<br />
don’t simply leave companies for a<br />
few dollars after a 35 or 40 year relationship.<br />
They leave because they’ve been<br />
badly treated. Personally, I would love to<br />
switch to State Farm, but because I sold<br />
my agency to another agent – who still<br />
owes me a bunch <strong>of</strong> money – I don’t want<br />
to rock the boat. But let me tell you what<br />
got me going on this disloyalty kick.<br />
Twenty or so years ago, and during<br />
some national conference or another, the<br />
company awarded me a Rolex watch. It<br />
was recently stolen and I decided to make<br />
a claim. Because there were personal issues<br />
involved, including the fact I couldn’t<br />
remember exactly which Rolex model it<br />
was, I decided to make the claim directly<br />
to Allstate via myaccount.allstate.com.<br />
When I hit the claims link, a popup informed<br />
I had to make a phone call and<br />
provided me with a number to call.<br />
Let me digress for a moment so I can<br />
explain that I’ve been deaf for more than<br />
ten years. It may or may not have been<br />
due to my Marine Corps experience.<br />
To continue, the popup on the screen<br />
didn’t <strong>of</strong>fer any options for the hearing<br />
impaired or deaf. Since I didn’t want to<br />
trouble anyone else with the claim, I decided<br />
to try conversing with claims using<br />
my closed captioned phone. I asked them<br />
to speak slowly so the captions would<br />
catch up on my phone screen. Instead,<br />
they tried talking over me and we ended<br />
up getting in a shouting match due to<br />
the deafness as well as mutual frustration.<br />
Finally, I got one particularly rude<br />
person to give me an email address. Four<br />
emails covering ten days and he never<br />
responded. I obtained the claims manager’s<br />
email address and tried again. Still<br />
no response. Then it occurred to me that<br />
if a company treated its deaf and disabled<br />
in such a cavalier manner, how were they<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 37
treating the typical garden-variety client<br />
I remember as an agent the company’s<br />
ridiculous thesis that low retention ratios<br />
were caused by rude agents and their<br />
staffs. Now really, how much sense does<br />
that make Agents rely on new and renewal<br />
commissions, not only to exist, but<br />
to invest for their retirement, pay their<br />
health insurance premiums and keep<br />
their businesses running. The last thing<br />
they want to do is <strong>of</strong>fend their customers.<br />
Regional employees – including claims<br />
personnel – are on salary and have their<br />
pensions and health insurance provided.<br />
A little digression with those thoughts<br />
in mind; company employees think<br />
agents earn outlandish incomes. They<br />
mistakenly equate gross agency revenues<br />
with take home pay. Nothing could<br />
be further from the truth; not only do<br />
agents have to fund their own benefits,<br />
but they must also pay rent, utilities, staff<br />
salaries, insurance and much more. The<br />
truth is, many company employees net<br />
more in benefits and salaries than agents<br />
do. But are they paid to run clients <strong>of</strong>f<br />
My contention is that intelligent people<br />
don’t bite the hand that feeds them.<br />
Conversely, claims adjusters don’t care<br />
about commissions or retention ratios. I<br />
know that our renewal ratios are below<br />
national average, but what about customer<br />
claims satisfaction I punched up<br />
the stats published by JD Power. On an<br />
industry average <strong>of</strong> 833 on a 1000 point<br />
scale, Allstate scores 829, which is below<br />
average. Chubb Insurance, another publically<br />
traded company, scored 859, well<br />
above average and a full 30 points higher<br />
than Allstate. I dialed in their website<br />
as if I wanted to make a claim. Immediately,<br />
I was given a choice <strong>of</strong> an email<br />
address or a phone number. See folks, if<br />
you’re going to make a theft claim, Allstate<br />
wants to ‘talk’ to you personally and<br />
grind you down. Chubb seems willing to<br />
let the facts speak for themselves. That is<br />
but one <strong>of</strong> the reasons why their retention<br />
and claims satisfaction are so superior<br />
to Allstate’s. Agents see the company’s<br />
dreadful PIF numbers; just imagine<br />
how many clients Allstate agents lose<br />
every year to these overbearing and inept<br />
employees. Yet the company sees no<br />
evil and hears no evil when it comes to<br />
regional employees; it only speaks evil <strong>of</strong><br />
its favorite corporate whipping boy, the<br />
Allstate agency force.<br />
Allstate isn’t alone in allowing inept<br />
employees to run <strong>of</strong>f clients and prospects.<br />
Consider Quicken. They allow<br />
you to apply for a refinance loan entirely<br />
by email. This is good for deaf folks, like<br />
me. As wonderful as it sounds, the process<br />
is tedious and takes time – lots <strong>of</strong><br />
time. In fact it took so much time that<br />
Attention New Agency Owners<br />
who either Bought an Agency or<br />
were Assigned a Book <strong>of</strong> Business<br />
Are you frustrated with your FSL for not providing you with<br />
“Proven” methods to write more Life and Annuity Business<br />
from your Book <strong>of</strong> Business<br />
Let me show you a proven plan to increase your sales<br />
when you join NAPAA. With my plan, you’ll keep your FSL<br />
<strong>of</strong>f your back and make your EFS Happy – or you can do it<br />
yourself and put the $$$ in your pocket.<br />
For more information, please contact:<br />
Gerry Flores<br />
Napaa Benefits Representative<br />
563-564-1800<br />
I had to postpone work on other projects<br />
due to all the minutiae they wanted.<br />
With all the hassles I was experiencing,<br />
I thought there must be a better way.<br />
Surely there were other companies I<br />
could deal with, so I gave up on Quicken<br />
and dialed into the JD Power website to<br />
find out.<br />
Guess what In terms <strong>of</strong> customer satisfaction,<br />
Quicken was the best. So you<br />
see folks, it’s whether you’re buying or<br />
selling. Insurance companies are begging<br />
for new clients and mortgage companies<br />
can afford to pick and choose.<br />
In another example, I wanted some<br />
information from Prudential Skandia<br />
on an annuity I’ve held with them for<br />
years. My questions were complicated<br />
and esoteric to people within the industry.<br />
I’d sold the plan to myself years<br />
ago. Being deaf, I didn’t want to involve<br />
my wife on the call because we would<br />
have to hand the phone back and forth<br />
and something might get lost in translation.<br />
So I carefully explained this over<br />
my closed captioned phone to various<br />
people throughout a 60-minute ordeal;<br />
it was doubly arduous because they were<br />
<strong>of</strong>fshore and spoke with foreign accents.<br />
Finally, they agreed to email me<br />
an email address, promising to answer<br />
my questions electronically. So a day<br />
later, I got a response from a do-notreply<br />
source which apologized for their<br />
ineptitude. In their email, they gave me<br />
a phone number to call. Go figure.<br />
I hope Allstate and some <strong>of</strong> the folks<br />
hiring these people are saving enough<br />
money by keeping them employed to<br />
make up for the clients and prospects<br />
they’re running <strong>of</strong>f. Oh, and my claim<br />
As it wasn’t for a lot <strong>of</strong> money, and I<br />
didn’t want the hassle, I simply gave up<br />
on it. Just like one day in the near future,<br />
I’m going to give up on Allstate.<br />
I’d like to do an article about the reasons<br />
why agents and clients are forced<br />
to deal with inept employees while our<br />
best and brightest move up the ladder or<br />
move on to bigger and better opportunities<br />
at Chubb, State Farm or elsewhere.<br />
If you have any ideas along these lines,<br />
I’d love to hear from you. But don’t call<br />
the deaf Marine. Email me at Daverotundo901@<br />
msn.com. Ef<br />
38 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
sales and marketing<br />
Should Your Agency Have<br />
its Own Website<br />
By Robyn Sharp<br />
for your agency and for your internet<br />
marketing. If there is a chance that you<br />
might decide one day to go independent<br />
or to change companies, then you need<br />
to start now by creating your own website<br />
with a strong local online presence.<br />
As thousands <strong>of</strong> former Allstate agents<br />
have discovered, it’s never too early to establish<br />
your own brand identity. Think <strong>of</strong><br />
it as a form <strong>of</strong> career insurance.<br />
Let’s make it simple. Your website is<br />
your home base. It’s a place where you<br />
make the rules and control all <strong>of</strong> the content.<br />
It’s the online face <strong>of</strong> your business<br />
to the world.<br />
If you don’t own it, such as the case<br />
with your Allstate website, then you<br />
don’t control it. You may have a nice<br />
company website, but you’re at the mercy<br />
<strong>of</strong> their marketing, their brand, and their<br />
decisions – not yours.<br />
Internet marketing can be overwhelming<br />
for a beginner. Websites, blogs,<br />
social media, search engine optimization,<br />
and pay per click advertising are<br />
completely different from the traditional<br />
marketing techniques to which you are<br />
probably accustomed. It’s a whole new<br />
world to learn about, and it’s filled with<br />
lots <strong>of</strong> new technology, skills, s<strong>of</strong>tware,<br />
and buzzwords.<br />
As an Allstate agent, you already have a<br />
host <strong>of</strong> internet marketing tools provided<br />
to you by the company. To their credit,<br />
they’ve done an excellent job <strong>of</strong> helping<br />
you get prepared. But is it enough The<br />
answer is complicated but, for the most<br />
part, it depends on what your long-term<br />
agency goals are.<br />
Allstate provides you with a basic<br />
agency website and the tools to create<br />
your own social media pr<strong>of</strong>iles pursuant<br />
to their guidelines and rules. They also<br />
provide social media content to use in<br />
your status updates and to promote your<br />
agency. But who is it intended to promote<br />
Your agency or the Allstate brand<br />
While it is customized to your individual<br />
agency, Allstate’s marketing materials<br />
primarily promote the company brand.<br />
Of course, it’s a great brand, and is probably<br />
a large reason why you became an<br />
Allstate agent!<br />
But there comes a point where you<br />
must decide what your future plans are<br />
What Do I Need To Get Started<br />
For most agencies, a great starting<br />
point is a simple blog-style website.<br />
Blogs are not much different than regular<br />
websites. A blog is like an online journal.<br />
You write articles, called blog posts, and<br />
they are shown on your website in reverse<br />
chronological order with the most recent<br />
being first.<br />
A blog allows you to continually share<br />
information and ideas with your readers.<br />
And most importantly, it allows you to<br />
showcase yourself as an insurance expert<br />
in the industry. Basically, you are creating<br />
a platform to educate your clients and<br />
establish your brand online. Blogs are<br />
also recommended because they are extremely<br />
helpful in building traffic to your<br />
website. Google consistently ranks blogs<br />
higher in search engine results because<br />
the content is always changing.<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 39
Think about this. If you create a standard<br />
brochure-style website, nothing<br />
ever changes. It is stagnant. There is no<br />
reason for Google to keep coming back<br />
to your site. But with a blog, you are always<br />
updating with fresh content. There<br />
are more keywords, more information,<br />
and more reasons for people to find your<br />
website while searching. All in all, blogging<br />
is a great way to build search engine<br />
optimization (SEO), which can help get<br />
your website ranked higher.<br />
High search engine rankings also require<br />
time. The longer your website is<br />
established – especially with regular<br />
blog posts being added each month –<br />
the stronger your website will be in the<br />
search engine results.<br />
Another great benefit to blogging is<br />
that it is easy to get started, even without<br />
hiring a web designer and spending<br />
lots <strong>of</strong> money. You can use a website like<br />
Wordpress.com to begin your blog and<br />
start creating content in less than 15<br />
minutes!<br />
What Do I Write About<br />
Many agents worry about blogging because,<br />
like social media, it requires time<br />
to come up with topics, writing blog<br />
posts, editing them, and posting them on<br />
to your website. But it doesn’t have to be<br />
difficult. In fact, blogging once or twice<br />
a month will give you a great start. By no<br />
means does it have to be daily. You can<br />
even delegate the task to a staff member<br />
with strong writing skills.<br />
Then if you are comfortable being on<br />
video, you can create a video blog too.<br />
Make short two to three minute videos<br />
sharing insurance tips and education. A<br />
good way to do this is to use those questions<br />
people ask you every day and answer<br />
them. While you can write a script,<br />
it is not necessary, especially if you are<br />
adept at ad-libbing. Like anything else,<br />
the more natural you come across to your<br />
audience, the better impression you will<br />
make. And uploading the videos to your<br />
blog can be done quickly, even with a basic<br />
smartphone.<br />
When it comes to ideas for what to<br />
share on your blog, think about what<br />
would establish you as an expert and<br />
what your readers would find interesting.<br />
For example, you can talk about budgeting,<br />
saving money, family asset protection,<br />
and financial planning. And the<br />
more you share about your local community<br />
the better. Organizations you’re<br />
involved in, volunteer opportunities, and<br />
community events all make great blog<br />
content. They are interesting topics that<br />
are shared in your area and spread your<br />
name as a local supporter.<br />
Why Is All This Important<br />
In the insurance business, your name<br />
and your brand are everything. They<br />
make or break your success. People absolutely<br />
must know who you are and<br />
what you do. Internet marketing – either<br />
through a website or social media channel<br />
– is a highly effective way to make<br />
this happen. By utilizing online tools,<br />
you are able to take control <strong>of</strong> your message,<br />
build your own agency brand, and<br />
demonstrate your expertise and authority<br />
in the insurance world.<br />
As with most things in life, you<br />
can’t trust someone else to do it<br />
for you.<br />
Yes, you can rely 100% on the Allstate<br />
marketing tools and you will be fine.<br />
You’ll have the basics covered. But, if<br />
you decide to change companies five or<br />
ten years from now, you’ll wish you had<br />
started your own website much sooner.<br />
The same thing goes for social media<br />
networks like Facebook. Create your<br />
page and build your fans using your<br />
name, not Allstate’s, and you’ll have a<br />
marketing tool that you can use for years<br />
to come. But if you include Allstate on<br />
your page name, you’ll likely need approval<br />
from them and if you ever decide<br />
to leave, as many agents have, you’ll have<br />
to delete their name. Wouldn’t you rather<br />
hold on to those thousands <strong>of</strong> loyal clients<br />
yourself<br />
Remember that online marketing is a<br />
long-term process. It doesn’t have to be perfect<br />
right away, it’s just important that you<br />
get started! Make <strong>2013</strong> the year that you<br />
establish your own brand and start building<br />
and promoting it online. Ef<br />
Robyn Sharp is an insurance marketing<br />
consultant and a former agency owner. Visit<br />
www.agencyupdates.com for insurance<br />
marketing tips and to get a copy <strong>of</strong> Robyn’s<br />
free checklist “59 Ways to Attract All the Insurance<br />
Clients You Need.”<br />
40 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 41
opinion<br />
From Intangible Product<br />
to Intangible Company<br />
By Brian Spillman<br />
Allstate Agents used to sell an intangible<br />
product. We all understood<br />
that fact and accepted it,<br />
even though it was harder to sell than say,<br />
a household appliance that people could<br />
see and touch. But these days, Allstate<br />
agents are selling an intangible company.<br />
Not long ago, agents were proud to be<br />
a part <strong>of</strong> Allstate. It was a great brand<br />
name with very competitive products.<br />
The company’s employees would go out<br />
<strong>of</strong> their way to help an agent if a customer<br />
was involved. In fact, one <strong>of</strong> the<br />
company’s favorite catchphrases was<br />
“Nothing happens until a sale is made.”<br />
This meant that every employee in the<br />
company basically owed their job to the<br />
agents who sold Allstate’s intangible<br />
products. Back then, the company did all<br />
it could to support agents, and there was<br />
mutual respect and appreciation for each<br />
party’s role within this great company.<br />
I’m not sure exactly when the respect<br />
and appreciation part began to erode, but<br />
the products started to erode when the<br />
infamous Tropical Cyclone Deductible<br />
(TCD) was introduced in coastal areas.<br />
This immediately put Allstate agents at<br />
a disadvantage with their competitors<br />
because we were the only major player<br />
with the requirement. Although some<br />
companies followed suit with their own<br />
hurricane deductible, they are nowhere<br />
near as severe as ours.<br />
Thus began the company’s pr<strong>of</strong>iteering:<br />
to the detriment <strong>of</strong> the consumer<br />
and at the expense <strong>of</strong> agent integrity. I<br />
remember feeling pangs <strong>of</strong> guilt whenever<br />
somebody switched their homeowner<br />
policy from State Farm to Allstate.<br />
While I was careful to explain Allstate’s<br />
TCD, I’m sure there was a great deal <strong>of</strong><br />
misunderstanding and indifference on<br />
“<br />
Changing<br />
such an ingrained,<br />
authoritarian culture<br />
would take a<br />
Herculean effort and<br />
require sea change in<br />
the attitudes <strong>of</strong> those<br />
at the top.<br />
“<br />
the part <strong>of</strong> the insured at the point <strong>of</strong><br />
sale – after all, what were the chances <strong>of</strong><br />
an East Coast hurricane making landfall<br />
anywhere but Florida or the Carolinas<br />
Then came the outsourcing. The<br />
company put its toe in the water with<br />
commercial, a product line in which<br />
Allstate was never a big player. More<br />
than a decade ago, Allstate figured out<br />
that it would never really be any good<br />
at commercial, so they decided to let<br />
agents write the risks they didn’t want<br />
through certain brokers, such as Northeast<br />
Agencies.<br />
Allstate agents from the 60s and 70s<br />
used to say that the only things Allstate<br />
wanted to insure were “riskless risks.” In<br />
recent years, they took this philosophy a<br />
step further when they started allowing<br />
agents to broker commercial. Essentially,<br />
the company gets money for doing nothing.<br />
You see, this was when the company<br />
began to shift its focus from supporting<br />
agents to preying on them. We all know<br />
that agents earn a measly 8% commission<br />
on these brokered commercial policies.<br />
When independent agents write<br />
the same policy through the same carrier,<br />
they earn between 12 and 20 percent.<br />
So, if you’re an Allstate agent you<br />
might wonder, “What happens to the<br />
commission in excess <strong>of</strong> 8% Why, Allstate<br />
pockets it, <strong>of</strong> course. If you think<br />
about it, they have no claims to pay or<br />
advertising expense, so it is pure pr<strong>of</strong>it –<br />
earned on the backs <strong>of</strong> agents, who are<br />
struggling to eke out a living. Then, instead<br />
<strong>of</strong> looking for brokers with great<br />
products for agents to sell, the company’s<br />
focus always seems to be on brokers who<br />
are pr<strong>of</strong>itable for the company – not the<br />
agency force.<br />
Once commercial brokering took hold<br />
and the company saw how easy it was to<br />
make money without risk, they created<br />
many other Expanded Market opportunities,<br />
especially in coastal states. These<br />
included Couch Braunsdorf to broker<br />
home insurance in “no write” zones,<br />
and a slew <strong>of</strong> other commercial brokers<br />
like Butwin, Northwest Agencies, etc. I<br />
would be remiss if I failed to mention<br />
Florida, the mother <strong>of</strong> all property brokerage<br />
states. The ability <strong>of</strong> Florida Allstate<br />
agents to broker property policies<br />
was born after Hurricane Andrew devastated<br />
many parts <strong>of</strong> the state in 1992.<br />
Allstate was overexposed and has been<br />
trimming back its market share there<br />
ever since.<br />
Next, the company started outsourcing<br />
claims and all internal support functions’<br />
such as tech support, customer<br />
service, billing support, etc. This is<br />
when the mutual respect part started<br />
to disappear. Before then, when agents<br />
tried to resolve customer problems, they<br />
always had adequate help. All <strong>of</strong> a sudden,<br />
agents found themselves wasting<br />
hours on the phone trying to decipher<br />
42 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
complicated concepts through the filter<br />
<strong>of</strong> a foreign accent. As an agent, it was<br />
at this point when I felt like the gloves<br />
were <strong>of</strong>f – the company no longer cared<br />
about its agents or customers.<br />
While the company was making money<br />
<strong>of</strong>f <strong>of</strong> brokering partnerships, they<br />
were also peddling marketing programs<br />
such as Business Builders and TAG, at<br />
healthy pr<strong>of</strong>it margins. Even the Allstate<br />
logo paper is expensive – so much<br />
so that it wouldn’t surprise me if they<br />
were pr<strong>of</strong>iting from it and other branded<br />
<strong>of</strong>fice supplies. As you can see, the focus<br />
has clearly shifted from wanting a<br />
pr<strong>of</strong>essional, knowledgeable, sales force<br />
to wanting a captive group to which it<br />
can hawk its wares for a pr<strong>of</strong>it. In days<br />
<strong>of</strong> yore they would have called this “The<br />
Company Store.”<br />
Woople is an example <strong>of</strong> what happens<br />
when the company’s plan to make money<br />
<strong>of</strong>f <strong>of</strong> the agency force fails. Someone<br />
in the company purchased the Woople<br />
marketing program and was convinced<br />
it would make money for the company<br />
when agencies purchased it individually.<br />
When very few agencies purchased<br />
it, the company tried to salvage their<br />
investment and <strong>of</strong>fered it for free, but<br />
there still weren’t many takers. So the<br />
gloves came <strong>of</strong>f, and the company forced<br />
the agency force to use Woople against<br />
their will. When it came time to renew<br />
the contract, the company finally saw the<br />
futility <strong>of</strong> its folly and ended its relationship<br />
with Woople. Good riddance to bad<br />
rubbish!<br />
That’s the kind <strong>of</strong> climate the agents<br />
continue to face in their relationship<br />
with the company. Will it or can it<br />
change Possibly, but changing such an<br />
ingrained, authoritarian culture would<br />
take a Herculean effort and require sea<br />
change in the attitudes <strong>of</strong> those at the<br />
top. And based on my past experiences,<br />
our beloved CEO is just not willing or<br />
able to be that kind <strong>of</strong> guy.<br />
A side note here is that agents are being<br />
told that if they don’t sign up and<br />
pay for an Allstate-sponsored “marketing<br />
package,” they won’t be eligible to<br />
participate in any future marketing programs<br />
for the rest <strong>of</strong> the year. But when<br />
an agent in my area wrote and asked<br />
what those future marketing plans were<br />
so he could plan his year-long marketing<br />
efforts, the company failed to respond. It<br />
sounds like they really don’t know what<br />
their plans are from day to day. It also<br />
sounds like a high-pressure sales job to<br />
me, so I can only assume the company<br />
is putting pressure on local employees to<br />
sell this stuff to the agency force.<br />
There’s even a rumor that the company<br />
will start <strong>of</strong>fering lines <strong>of</strong> credit to agents<br />
at an adjustable interest rate. Once again,<br />
they want even less risk than a bank does!<br />
By <strong>of</strong>fering an adjustable rate rather than<br />
a fixed rate, they’ll make more money as<br />
interest rates rise. Something tells me<br />
this will fail the way Woople did. Agents<br />
just aren’t that stupid.<br />
The upshot <strong>of</strong> the changes I have described<br />
is that Allstate agents are selling<br />
many other brands under the Allstate<br />
umbrella and many functions associated<br />
with an insurance company are being<br />
outsourced. Thankfully, the Claims Department<br />
hasn’t been outsourced to a foreign<br />
country, but I throw it into the same<br />
category because <strong>of</strong> the CAT teams.<br />
Have you noticed that any time the wind<br />
blows it’s now labeled a “catastrophe”<br />
That saves the company lots <strong>of</strong> money.<br />
Not only do they have fewer people in<br />
the claims department, but it helps when<br />
it’s time to report “normalized” losses by<br />
backing out the CAT losses. Sure, customers<br />
aren’t served as well when people<br />
from other states have to interpret our<br />
policies to pay a claim – but this is no<br />
longer about serving customers.<br />
My only conclusion is that Allstate<br />
wants to be anything BUT an insurance<br />
company. They don’t want to price it, underwrite<br />
it, service it, or handle claims.<br />
They don’t want any risk at all, and they<br />
don’t value the quality <strong>of</strong> their sales force.<br />
They just want scads <strong>of</strong> pr<strong>of</strong>it.<br />
Of course, as business people, we all love<br />
pr<strong>of</strong>it. In addition, we aren’t naïve enough<br />
to think the company is in business for<br />
charity. All I am suggesting here is that<br />
Allstate earn its pr<strong>of</strong>its by going back to its<br />
roots – the insurance business. Ef<br />
Join the “ALL Agents Page”<br />
on Facebook<br />
All New Group for Allstate Agents<br />
and Former Allstate Agents Only<br />
https://www.facebook.com/groups/304988616263352/<br />
Click JOIN<br />
once you’re a member, the link will be under<br />
Groups on your Facebook page.<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 43
feature<br />
An Unsung Heroine<br />
By Jim Fish<br />
This story should have been written<br />
long ago because it’s about<br />
someone who has supported and<br />
believed in NAPAA since before she<br />
became an Allstate agent some 19 years<br />
ago. She has served on the NAPAA<br />
Board <strong>of</strong> Directors, and for the past eight<br />
years, has worked for NAPAA as its <strong>Association</strong><br />
Manager. In addition, she has<br />
bravely and confidently stood toe-to-toe<br />
with Tom Wilson and Ed Liddy at Allstate<br />
shareholder meetings, challenging<br />
their decisions that have adversely affected<br />
large majorities <strong>of</strong> Allstate agents.<br />
Nancy Fish is a former award-winning<br />
Allstate manager who has an exceptional<br />
understanding <strong>of</strong> the agent contract and<br />
good grasp <strong>of</strong> the inner workings <strong>of</strong> regional<br />
management and the departments<br />
they oversee.<br />
NAPAA members who call headquarters<br />
for help are in awe at the level <strong>of</strong> her<br />
knowledge and expertise and <strong>of</strong>tentimes<br />
express their gratitude by sending or<br />
emailing notes <strong>of</strong> appreciation – some <strong>of</strong><br />
which appear in <strong>Exclusivefocus</strong> magazine<br />
from time to time.<br />
Background<br />
Before I tell you how I first met Nancy<br />
Broussard and how she became Nancy<br />
Fish, I have to explain the circumstances<br />
that led to our first meeting in an elevator<br />
at the Pfister Hotel in Milwaukee,<br />
Wisconsin on a frigid January morning<br />
in 1990.<br />
At that point in time, the <strong>National</strong><br />
Neighborhood Office Agents Club<br />
(NNOAC) – which would later become<br />
the <strong>National</strong> <strong>Association</strong> <strong>of</strong> Pr<strong>of</strong>essional<br />
Allstate Agents, Inc. (NAPAA) – was<br />
just in its infancy, having been formed in<br />
1989. In those days, email did not exist<br />
and fax machines were a new technology.<br />
The only method <strong>of</strong> mass communication<br />
was the U.S. Mail. And since<br />
Allstate had no website, approximately<br />
14,000 agent mailing addresses had to be<br />
painstakingly gleaned by hand from local<br />
telephone directories from around the<br />
country. As a result, not all agents, including<br />
me, were aware <strong>of</strong> NAPAA’s existence.<br />
NNOAC/NAPAA was founded<br />
in response to problems associated with<br />
Allstate’s Neighborhood Office Agent<br />
(NOA) program. And while I was not<br />
aware <strong>of</strong> the growing agent unrest around<br />
the rest <strong>of</strong> the country, leadership in the<br />
old Milwaukee Region – comprised <strong>of</strong><br />
Wisconsin, Minnesota and the Dakotas<br />
– began to pressure agents by demanding<br />
more from them.<br />
In particular, Territory leadership<br />
mandated that agents inspect, measure<br />
and photograph every new property to<br />
be insured, including brand-new homes<br />
and homes under construction. This<br />
mostly nonsensical chore added an hour<br />
or more to each property sale. Before<br />
then, Allstate paid outside vendors, such<br />
as Hooper-Holmes, to perform the inspections.<br />
In exchange for Allstate outfitting<br />
us with Polaroid cameras, nifty<br />
real estate-quality measuring wheels, and<br />
an endless supply <strong>of</strong> film, we got to drive<br />
far and wide to measure and photograph<br />
each property we insured. There was no<br />
compensation for our time and no mileage<br />
reimbursement, which only incensed<br />
us more, especially since at least 99% <strong>of</strong><br />
us were employees. Adding insult to injury,<br />
the inspection program penalized<br />
big property producers the most. At the<br />
time, I was writing a lot <strong>of</strong> property insurance<br />
throughout the state and it was<br />
clear that the new requirement would<br />
add several hours to an already long<br />
workweek, which was averaging 60 to 70<br />
hours a week.<br />
Had I been an EA instead <strong>of</strong> an employee,<br />
the dilemma, while still distaste-<br />
44 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
ful, would have been less problematic. As<br />
I saw it, I had three choices; cut back on<br />
property production, kill myself trying to<br />
complete the inspections, or mount an<br />
agent protest, which is what I decided to<br />
do. It was this protest that led me to my<br />
first encounter with Market Sales Manager<br />
Nancy Broussard at the regional<br />
kick-<strong>of</strong>f meeting on that cold January<br />
morning in 1990.<br />
It was pretty simple. I hired a button<br />
maker to make some campaign-style lapel<br />
buttons that said things like, “I LOVE<br />
MY JOB BUT NOT ENOUGH TO<br />
WORK FREE – Support Compensated<br />
Inspections.” All told, there were six different<br />
catchphrases with similar messaging.<br />
I then went to the public library<br />
and located copies <strong>of</strong> all the major phone<br />
books in the state and began to look up<br />
as many Allstate locations as I could find.<br />
When I had the addresses, I mailed an<br />
anonymous letter to the agency force,<br />
asking them to show up at the regional<br />
meeting wearing the buttons that I had<br />
enclosed in the envelope. That was it.<br />
I arrived at the meeting hotel and<br />
stepped into the elevator and there was<br />
Nancy. She was with some agents from<br />
her district who were not wearing their<br />
buttons, so I asked, “Where are your<br />
buttons” As I recall, their excuses were<br />
pretty lame and it was clear they didn’t<br />
want to rock the corporate boat. But they<br />
would be in the minority that day.<br />
A majority <strong>of</strong> the agents wore their<br />
buttons and senior management seemed<br />
genuinely surprised. When the RVP got<br />
up and spoke, he was visibly shaken and<br />
pleaded with the agents to remove their<br />
buttons. Since the agents had made their<br />
point, they slowly began to remove their<br />
buttons in deference to his wishes. The<br />
intent was not to embarrass or humiliate<br />
local management; instead, it was a way<br />
to show our collective displeasure over<br />
the mandatory inspection program. Believe<br />
me, they got the message…<br />
It would be years after that chance meeting<br />
that Nancy revealed that those agents<br />
in the elevator had asked her beforehand<br />
whether they should wear the buttons or<br />
not. She didn’t tell them not to, but that they<br />
should decide for themselves.<br />
Two years later, Nancy was transferred<br />
to my market and became my Market<br />
Sales Manager (MSM). We got <strong>of</strong>f to a<br />
rocky start, but with the passage <strong>of</strong> time<br />
I came to understand that she was actually<br />
a friend and defender <strong>of</strong> the agents,<br />
and I grew to appreciate her. As a manager,<br />
she would zero in on each agent and<br />
determine what she could do to assist<br />
them. For some, it was developing and<br />
implementing processes and for others it<br />
would be something else. For my good<br />
friend Terry Hanson, she volunteered to<br />
inspect and photograph homes. And because<br />
I was so fastidious about proper app<br />
completion and service work, I rarely let<br />
anyone else handle it for me. As a result,<br />
I pulled scores <strong>of</strong> customer files a week<br />
for information and they would pile up<br />
in stacks until I could re-file them on the<br />
weekends. Nancy saw this as a way she<br />
could help me and <strong>of</strong>fered to come to the<br />
<strong>of</strong>fice on weekends to put the files away.<br />
It helped me tremendously.<br />
Converting from employee status to<br />
the EA Agreement was a big step for me<br />
and I spent several months preparing for<br />
Reporting “Questionable Business Practices” to Allstate<br />
NAPAA receives many inquires from agents who call to complain about unethical conduct by other agents. It<br />
seems unethical behavior is becoming more commonplace, which is why it is up to the agency force to police<br />
itself. And reporting bad behavior is easy and will help protect our rates. Following are selected excerpts from<br />
the www.AlertLine.com website, operated by Global Compliance, a third-party provider contracted by Allstate.<br />
“The Allstate i-Report process is designed to allow employees and non-employees to report potential compliance,<br />
unethical business practices and/or raise business issues.”<br />
“The Allstate i-Report Process is based on these principles:<br />
• Fairness: Every concern will receive individual consideration and be evaluated consistent with the commitment<br />
<strong>of</strong> Allstate to the employees.<br />
• Promptness: Concerns will be promptly directed to areas within the company that have the authority and<br />
responsibility to review, investigate and resolve the issues.<br />
• Safety: Concerns can be voiced without fear <strong>of</strong> retaliation.<br />
• Confidentiality: Concerns will be kept confidential. Information will be disclosed only to those who need<br />
to know in order to review, investigate and respond to your concern.”<br />
“Global Compliance Services (“GCS”), pursuant to an agreement between its clients, provides a website to<br />
collect from employees and others wishing to report information. This information includes but is not limited to<br />
allegations <strong>of</strong> misconduct, questionable business practices, violations <strong>of</strong> a company’s code <strong>of</strong> conduct or other<br />
events and behavior which may result in harm, injury or liability. The information collected and submitted is forwarded,<br />
without review or modification by GCS, to the client’s designated contacts.”<br />
To file a report, agents should go to www.AlertLine.com or call 800.427.9389.<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 45
Direct Writer magazine cover circa<br />
1995. From left to right: Frank<br />
and Jane Piatt, Jim and Nancy<br />
Fish, Mirna and Bob Lynch and<br />
John Lindsay.<br />
the transition. I had been a Neighborhood<br />
Office Agent (NOA) in a threeagent<br />
<strong>of</strong>fice for several years. As partners<br />
we got along great and every agency decision,<br />
including staffing, was a mutual<br />
decision. I was fine with this arrangement,<br />
but it was against company rules<br />
for me to convert to EA and share an<br />
<strong>of</strong>fice with two agents who were under<br />
a different contract. Everything worked<br />
out well; my former partners moved to<br />
another <strong>of</strong>fice and I stayed put.<br />
One <strong>of</strong> my top priorities was to develop<br />
an agency procedure manual for<br />
the employees I was about to hire. From<br />
start to finish, this process took countless<br />
hours and Nancy was there every step <strong>of</strong><br />
the way; taking notes as I paced the floor<br />
churning out my thoughts. I wanted it<br />
to cover everything from closing-out the<br />
daily remittance to producer compensation.<br />
When work on the manual was<br />
complete, she <strong>of</strong>fered to organize it and<br />
type it for me. This was just another example<br />
how Nancy always goes beyond<br />
the call <strong>of</strong> duty, never asking for anything<br />
in return. She is the most unselfish, giving<br />
person I have ever known.<br />
I had good, bad, and mediocre managers<br />
during my Allstate career. While<br />
I eventually became close with some <strong>of</strong><br />
them, it always took time to develop a<br />
level <strong>of</strong> trust where I felt comfortable.<br />
My relationship with Nancy was no different.<br />
But in time, I realized she was not<br />
like the others. She deeply cared for the<br />
agents in her market and went to bat for<br />
them when necessary, a no-no and posible<br />
career killer for an Allstate manager.<br />
You see, defending agents is not politically<br />
correct at Allstate. Maybe it is because<br />
they want managers to be devoid <strong>of</strong><br />
compassion so they do not appear weak.<br />
There are a lot <strong>of</strong> good people in management,<br />
but many lack the courage <strong>of</strong><br />
their convictions. To climb the ladder<br />
<strong>of</strong> success, one must always be willing<br />
to sacrifice their personal ethics for the<br />
sake <strong>of</strong> the corporation, no matter how<br />
contemptible. It is this group who are the<br />
weak ones; they willingly take unprincipled<br />
actions for the sake <strong>of</strong> the corporation<br />
and close their eyes to their sins<br />
when the day is done.<br />
Nancy Fish is full <strong>of</strong> compassion and<br />
an ardent believer <strong>of</strong> doing the right<br />
thing. These traits are not weaknesses,<br />
but powerful strengths that motivate her<br />
each day <strong>of</strong> her life. The agents <strong>of</strong> Allstate<br />
are lucky to have her on their side.<br />
Nancy earned my respect one good<br />
deed at a time. Over time, we became<br />
friends and then good friends. And ultimately,<br />
before going to the next level<br />
– and final stage – <strong>of</strong> our relationship,<br />
we became – and still are – best friends.<br />
We are cut from the same cloth, we hold<br />
each other in high esteem, and we trust<br />
each other implicitly. What’s more, our<br />
values are virtually identical.<br />
Tired <strong>of</strong> the deceitful and adolescent<br />
games <strong>of</strong> regional and senior management,<br />
Nancy decided there was no future<br />
for her as an Allstate manager so<br />
she resigned to become an EA. This<br />
was after I converted to EA and after<br />
she had earned the coveted Key Manager<br />
Award a couple times. Nancy joined<br />
NAPAA the day after becoming an EA<br />
and shortly thereafter, we attended a<br />
NAPAA convention in Atlanta, Georgia.<br />
At that event, NAPAA held a sockhop<br />
and everyone dressed in fifties garb.<br />
We and some other attendees were chosen<br />
to pose for a photo next to a vintage<br />
car. We didn’t know it then, but NAPAA<br />
would use that photo on the cover <strong>of</strong><br />
46 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
DirectWriter magazine, the forerunner<br />
<strong>of</strong> <strong>Exclusivefocus</strong>. Like many other<br />
NAPAA members, our membership was<br />
a private matter, so when the magazine<br />
came out it was a surprise to many, especially<br />
to us. Most <strong>of</strong> the agents in our<br />
territory thought it was hilarious, but we<br />
were told that top regional and territorial<br />
management did not find it the least bit<br />
amusing. After all, Nancy had been one<br />
<strong>of</strong> their own – a decorated Key Manager<br />
– and there she was gracing the cover <strong>of</strong><br />
NAPAA’s DirectWriter magazine. It was<br />
blasphemous!<br />
Nancy’s EA <strong>of</strong>fice was located a couple<br />
<strong>of</strong> miles from mine and we helped each<br />
other in many ways. As we grew closer,<br />
we decided to combine our agencies,<br />
merging her book into mine and closing<br />
her location. She became the agency<br />
manager in our agency and was primarily<br />
responsible for staff training and support.<br />
This meant she was the go-to person for<br />
the staff, answering all their underwriting,<br />
claims and operational questions.<br />
As a management trainee at Allstate, she<br />
had gone through the management rotation<br />
program, which was a process that<br />
gave future agency managers exposure to<br />
each department in the region, including<br />
claims, underwriting and human<br />
resources. This training, along with her<br />
intimate knowledge <strong>of</strong> company procedures,<br />
made her perfect for her new role<br />
in our agency, allowing me to focus on<br />
agency growth and marketing, which I<br />
pursued relentlessly.<br />
We were writing business hand over<br />
fist and we topped the charts in our Territory<br />
and the Region month after month<br />
and year after year. And unlike some big<br />
producers, we wrote clean business and<br />
our loss and retention ratios were spectacular,<br />
considering the amount <strong>of</strong> new<br />
business we wrote.<br />
In 1998, Nancy and I attended the<br />
NAPAA Convention in Reno, Nevada.<br />
It was part <strong>of</strong> what was called a “Great<br />
Convention,” which was when all the<br />
major captive agent associations held<br />
their conventions at the same time at the<br />
same venue. This event occurred every<br />
three years, giving each association an<br />
opportunity to interact with other associations.<br />
In theory, the concept was a<br />
good idea, but the conferences lasted far<br />
too long, leaving attendees who might<br />
not want to attend every session with<br />
blocks <strong>of</strong> time to fill. In Reno or Las<br />
Vegas, that is not a problem if you’re a<br />
gambler, but if your not, it can lead to<br />
filling your time with unplanned activities<br />
– such as getting married – which is<br />
exactly what happened to us. We were<br />
scheduled to leave for home on Sunday,<br />
but by Friday, we’d had enough. That<br />
night we stayed in, ordered pizza and<br />
watched The Big Lobowski starring Jeff<br />
Bridges. We decided to play hooky the<br />
following day and skipped the meetings.<br />
As we lounged around the room the<br />
next morning, the subject <strong>of</strong> marriage<br />
came up. Neither one <strong>of</strong> us can recall<br />
who first broached the subject, but there<br />
we were, getting hitched a few hours<br />
later. It is really easy to do when you’re<br />
in Reno. No lavish wedding or complications<br />
– just a simple ceremony performed<br />
by the Commissioner <strong>of</strong> Civil Marriages<br />
and you’re done. Fifteen years later our<br />
bond is stronger than ever.<br />
After we returned home, our agency<br />
continued to write business at a recordsetting<br />
pace. At the same time, we<br />
stepped up our commitment to NAPAA<br />
to support the agents, who were undergoing<br />
painful changes at the hands management.<br />
The company was intensifying<br />
its efforts to exert more and more control<br />
over the agency force. At one point, they<br />
attempted to force agents keep their <strong>of</strong>fices<br />
open all day on Saturdays, even on<br />
major holiday weekends when the rest<br />
<strong>of</strong> the working world was <strong>of</strong>f playing.<br />
Mercifully, the bulk <strong>of</strong> this effort failed,<br />
thanks to a spirited and nearly unanimous<br />
outcry from the agency force and<br />
NAPAA. Remnants <strong>of</strong> this ill-conceived<br />
plan still remain today, as agents must<br />
maintain a 44-hour workweek and keep<br />
their <strong>of</strong>fices open the day after Thanksgiving,<br />
and on Christmas Eve.<br />
In 2000, I was elected president <strong>of</strong><br />
NAPAA. It wasn’t that I coveted the job;<br />
it was because nobody else wanted it. It<br />
was a tumultuous year; the company was<br />
forcing its remaining employee agents<br />
– except for those in certain areas – to<br />
convert to the EA contract or leave the<br />
company. It was a time fraught with uncertainty,<br />
anxiety and anger. Many agents<br />
felt betrayed by the company, which took<br />
away their pensions, health insurance<br />
and other benefits in exchange for what<br />
has turned out for many to be a bag <strong>of</strong><br />
empty promises.<br />
Newer agents may never understand<br />
the scope <strong>of</strong> this initiative and how disruptive<br />
it was for the agency force. The<br />
same holds true for what has happened<br />
over the past few years wherein thousands<br />
<strong>of</strong> agents have been terminated<br />
or forced to leave because their jobs<br />
were threatened by the insatiable greed<br />
<strong>of</strong> senior management. Newer agents<br />
have been led to believe that the agents<br />
who were forced out deserved their fate.<br />
This may be true for a small percentage<br />
<strong>of</strong> agents, but it defies reason that more<br />
than a third <strong>of</strong> the agency force – should<br />
have been targeted for termination.<br />
As many <strong>of</strong> you know, I was among<br />
the first agents fired for something other<br />
than lying, cheating or stealing. This<br />
happened in 2002. It certainly wasn’t<br />
because I was unproductive; it was because<br />
I “failed to maintain a pr<strong>of</strong>essional<br />
relationship” with the company, which<br />
is corporate speak for “we don’t like you<br />
anymore because you challenge management<br />
and advocate for agent rights.”<br />
The following year, I stepped down as<br />
NAPAA president because I thought it<br />
best to have an active Allstate agent serve<br />
in that capacity. At that point, Nancy and<br />
I had decided to ride <strong>of</strong>f into the sunset.<br />
Nancy went to work in furniture sales<br />
and I affiliated with a national brokerage<br />
that wrote business in 47 states.<br />
Our self-imposed hiatus away from<br />
NAPAA didn’t last long, however. The<br />
NAPAA Board <strong>of</strong> Directors was unhappy<br />
with the firm managing its day-to-day<br />
operations and because <strong>of</strong> a declining<br />
membership base. In the spring <strong>of</strong> 2005,<br />
I received a call from board member John<br />
Lindsay asking if I would consider serving<br />
as NAPAA’s Executive Director. I<br />
gave it some thought and agreed, subject<br />
to certain terms and conditions. Then<br />
when the association management contract<br />
came due, NAPAA put it out for<br />
bids. Nancy submitted a proposal for the<br />
job and it was accepted. Eight years later,<br />
we’re still going strong.<br />
Nancy tackled her new job with great<br />
energy and passion, even in spite <strong>of</strong> us<br />
losing everything we owned in Hurricane<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 47
Katrina. Unable to find reliable contractors<br />
to gut and rebuild our home, we got<br />
up each morning at the crack <strong>of</strong> dawn<br />
to do the work ourselves. On weekday<br />
mornings, we met her dad at our property<br />
and worked until it was time to open<br />
NAPAA headquarters for the day. Then<br />
once our day with NAPAA ended, it was<br />
back to work on the house. When the<br />
weekends came, the three <strong>of</strong> us spent every<br />
waking hour at the property to make<br />
it livable again. Finally, a few weeks before<br />
the first anniversary <strong>of</strong> Katrina, we<br />
were able to move back in, albeit without<br />
a working kitchen. There was still much<br />
to do, but we were finally back in our<br />
own home.<br />
You learn a lot about someone during<br />
a crisis and we all learned things we<br />
never knew about each other. One <strong>of</strong> the<br />
things I learned about Nancy is that she<br />
doesn’t like to put things <strong>of</strong>f. Like her father,<br />
when she’s confronted with a project,<br />
she dives right in and doesn’t come<br />
up for air until it’s finished. But she’s not<br />
satisfied to simply complete the project;<br />
it is a learning experience for her. She educates<br />
herself by scrutinizing every step<br />
along the way so she fully understands<br />
the process. So, whether it’s a quarterly<br />
earnings report or a new agent program,<br />
she scours company documents, dissecting<br />
and piecing together information as<br />
she looks for clues that provide insights<br />
into the company’s reasoning and direction,<br />
especially as they relate to the<br />
agency force – a quality that has served<br />
NAPAA well.<br />
Since Katrina, thousands <strong>of</strong> Allstate<br />
agents have come and gone, many <strong>of</strong><br />
whom were terminated for missing<br />
their quotas. Fearful <strong>of</strong> losing their jobs<br />
and desperate for advice, they turned<br />
to NAPAA for help and Nancy bore<br />
the brunt <strong>of</strong> the incoming calls. As you<br />
might imagine, the majority <strong>of</strong> these<br />
conversations were not brief and many<br />
agents called time and again. The inbound<br />
call volume became so great; we<br />
were forced to limit calls to dues-paying<br />
members. But even then, the calls were<br />
relentless.<br />
Nancy views the NAPAA membership<br />
roster as her book <strong>of</strong> business. To<br />
her, each member is a customer and she<br />
does everything in her power to assist<br />
them when they call for help. Like an<br />
agent’s book <strong>of</strong> business, some members<br />
are more interactive and call <strong>of</strong>ten, while<br />
others never call at all. Never wanting to<br />
<strong>of</strong>fend anyone, Nancy is sometimes overly<br />
accommodating, which can increase<br />
the wait time for other callers. But they<br />
all seem to take it in stride because they<br />
know she will give them straight answers<br />
when she calls them back.<br />
I’m not sure if Nancy’s deep-seated desire<br />
to help others is an inherited trait or<br />
a learned behavior, but it seems to run<br />
in her family. Her immediate family is<br />
amazing and all share this same attribute.<br />
Her dad was raised on a small farm in<br />
South Louisiana where he toiled in the<br />
fields picking cotton by hand. But while<br />
the family was financially dirt poor, they<br />
were rich in social values. And unlike<br />
children from similar backgrounds who<br />
abandoned such values, Nancy and her<br />
sister soaked them up and put them into<br />
practice, making the world a better place<br />
for humanity. This value system is not<br />
something they feel as an obligation, it<br />
simply comes naturally. They are an industrious,<br />
loving and caring family. Getting<br />
to know them has been a source <strong>of</strong><br />
great joy for me and has helped change<br />
the way I deal with my own family. I am<br />
so fortunate to have had them in my life.<br />
Members who speak to Nancy fully<br />
understand her value. They know they<br />
can call her and get the right answers every<br />
time. It is rare for her to be stumped<br />
by a caller’s question and if it does happen,<br />
she becomes a heat-seeking missile<br />
in her quest to find the answer. Being<br />
a former manager is also very helpful<br />
because she is a great resource for new<br />
agents, whose FSLs are likely to be significantly<br />
less knowledgeable about contract<br />
issues and other job-related matters.<br />
In recent years, the FSLs’ primary area <strong>of</strong><br />
responsibility has been to hire agents to<br />
replace the thousands <strong>of</strong> agents that have<br />
terminated. Most do not act as an agent<br />
advocate or as a source <strong>of</strong> reliable information<br />
for the agents in their markets.<br />
Still, there are some who proclaim<br />
to know all there is to know about the<br />
R3001 Agreement and Supplement, yet<br />
they <strong>of</strong>ten <strong>of</strong>fer incomplete or inaccurate<br />
advice. In reality, few people in the<br />
company can match Nancy’s knowledge<br />
<strong>of</strong> the R3001 contract and the R3001<br />
Supplement. She is so well-versed that<br />
attorneys from across the country call to<br />
pick her brain about contract issues and<br />
other Allstate matters.<br />
In a recent conversation with an attorney<br />
friend <strong>of</strong> ours, I commented that I<br />
<strong>of</strong>ten defer matters requiring an understanding<br />
<strong>of</strong> the law to Nancy because she<br />
is “more lawyerly” than I am. The attorney<br />
laughed and said, “She’s more lawyerly<br />
than me too!”<br />
The point is: if there was only one reason<br />
to join NAPAA, it would be to have<br />
access to Nancy and her comprehensive<br />
level <strong>of</strong> knowledge.<br />
In addition to her one-on-one work<br />
with NAPAA members, Nancy wears<br />
many other hats. She maintains the<br />
membership database, posts payments,<br />
keeps the books, sets up and coordinates<br />
NAPAA meetings and conferences, processes<br />
member-to member referrals, updates<br />
the NAPAA website and handles<br />
an assortment <strong>of</strong> other duties. In her<br />
spare time, she writes articles for this<br />
magazine and for our weekly memberonly<br />
newsletter, DirectExpress.<br />
Besides always going the extra mile<br />
to help our members, she is smart –<br />
some say brilliant – highly organized,<br />
dedicated, and extremely hard-working.<br />
Whether a business matter or a personal<br />
matter, she is consistently focused and<br />
always gives 110%. In addition, she is serious-minded,<br />
and takes none <strong>of</strong> her responsibilities<br />
lightly. What amazes me is<br />
her ability to juggle so many tasks at the<br />
same time and do them all equally well.<br />
There is much more that could be written<br />
about Nancy Fish and her many qualities.<br />
All I know is that I am the luckiest<br />
guy in the world, not only because Nancy<br />
is my wife, my soul mate and best friend,<br />
but because we share the same values,<br />
one <strong>of</strong> which is a deep-seated desire for<br />
fair treatment and reasonable compensation<br />
for Allstate agents and other captive<br />
agents. NAPAA is the vehicle that allows<br />
us to achieve this just goal.<br />
Through thick and thin, Nancy has<br />
never waivered in her support for the<br />
agency force. Allstate agents are fortunate<br />
to have someone like her on their side.<br />
I am so glad we spent that $70 to get married<br />
in Reno, it was money well-spent. Ef<br />
48 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
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Affiliation with OPEIU<br />
It Pays to Belong!<br />
NAPAA recently affiliated with the Office and Pr<strong>of</strong>essional Employees International Union (OPEIU),<br />
AFL-CIO to help provide our membership with reliable communications on issues that affect Allstate<br />
Exclusive Agency Owners and their customers by promoting pr<strong>of</strong>essionalism and ethical practices.<br />
OPEIU will also assist NAPAA in its mission <strong>of</strong> being dedicated to the success <strong>of</strong> Allstate agencies<br />
and to advancing the independence and entrepreneurial spirit <strong>of</strong> its members.<br />
The affiliation means real benefits to NAPAA members, who are eligible to participate in all OPEIU<br />
membership benefit programs at no additional cost. These benefits include:<br />
E&O deductible reimbursement <strong>of</strong> 20% <strong>of</strong> the deductible for any paid E&O claim up to $500 per<br />
member per year.<br />
A healthcare and Rx discount program through WellDyne.<br />
Up to $50 payment for continuing education every two years.<br />
Up to 2 towing/service calls per year (valued at up to $100 each) for all family members living in<br />
the same household.<br />
An identity theft service through the United Nations Federal Credit Union Financial Services.<br />
Welcome Home – a real estate commission rebate program that includes first-rate real estate<br />
companies such as Century 21, Coldwell Banker and Sotheby’s.<br />
PerksCard – a national discount savings program.<br />
Eligibility for three scholarship funds that could mean up to $6,000 for children and dependents.<br />
Participation in the AFL-CIO Union Plus program that provides a better than competitive MasterCard<br />
rate, travel and entertainment discounts, legal services, auto discounts, and a financial<br />
education service.<br />
OPEIU brings NAPAA the strength <strong>of</strong> its membership base, making our voice even louder in the<br />
legislative halls at the national and state levels, and in our efforts to affect Allstate’s behavior and<br />
treatment <strong>of</strong> agents.<br />
We urge all Allstate agents to join NAPAA, not only to receive great membership benefits, but also to<br />
help us grow stronger and more effective in our industry.<br />
Please fill out and complete the NAPAA application form in this magazine or sign up online at<br />
www.napaaUSA.org. NAPAA dues are $350 per year, which pale when you consider the benefits<br />
and protections it provides.<br />
50 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
Confidential NAPAA Membership Application<br />
Name:______________________________________ Off Ph:_______________________ Cell__________________________<br />
Street:________________________________________________ E-Mail:__________________________________________<br />
City:________________________________________ State:_____ ZIP:__________<br />
Agent since__________(year) Comments<br />
MEMBERSHIP SECTION<br />
Regular (Gold) Membership q Annual: $350 q EFT: $29 /mo<br />
PAYMENT SECTION<br />
q CHECK – Annual: Please make payable to NAPAA.<br />
q CREDIT CARD – Annual: I authorize this amount to be charged to my credit card.<br />
(Please complete the information below)<br />
Card type: q VISA q MasterCard q Discover q American Express<br />
Name on account _________________________________________ Amount to be Charged: $__________ (Annual only)<br />
Account Number __________________________________________ Expiration date __________ Security code________<br />
Address on Card _______________________________________________________________________<br />
ZIP____________<br />
Signature <strong>of</strong> Cardholder ______________________________________________ Todays Date _____________ (12/12 EF)<br />
q EFT (PAM) - Monthly (attach or fax voided check)<br />
I understand that the amount stated above will be deducted from my checking account every month until instructed otherwise.<br />
I have enclosed a voided check and understand that the withdrawals will occur on or about the 20 th <strong>of</strong> every month.<br />
Authorization Signature: _____________________________________________________________<br />
Date ____________<br />
PLEASE FAX or MAIL APPLICATION TO:<br />
<strong>National</strong> <strong>Association</strong> <strong>of</strong> Pr<strong>of</strong>essional Allstate Agents, Inc.<br />
P. O. Box 7666, Gulfport, MS 39506-7666<br />
Call Toll-free: 877.627.2248 • E-Mail: HQ@napaausa.org • Fax Toll-free: 866.627.2232<br />
Please consider including a generous donation to the NAPAA Action Fund!<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 51
letters to NAPAA<br />
Continued from page 10.<br />
tactic by Allstate And what about production<br />
credit, where it is close to triple<br />
for annuities – Allstate annuity, <strong>of</strong> course<br />
– vs. mutual funds<br />
In my opinion, customers, regulatory<br />
bodies, and media outlets should all be<br />
made aware <strong>of</strong> these unsavory practices<br />
at Allstate. They should also be aware<br />
<strong>of</strong> the company’s recent history <strong>of</strong> firing<br />
agents who don’t make their quotas.<br />
Either way the agents are screwed. Either<br />
they resort to unethical sales practices,<br />
for which they could be punished,<br />
or they do the right thing by the customer<br />
and jeopardize their jobs. I hope that<br />
most will choose the righteous path and<br />
pick door number 2.<br />
I enjoy your magazine so much. Hope<br />
things are settling down at Allstate for the<br />
agents. At American Family, we are losing<br />
them not only because they’re being<br />
terminated, but because they are resigning<br />
out <strong>of</strong> fear <strong>of</strong> being fired. It’s so sad.<br />
Harriet Stahl<br />
Business Manager<br />
<strong>National</strong> <strong>Association</strong> <strong>of</strong> American<br />
Family Agents<br />
I have finally had time to read some <strong>of</strong><br />
your magazines from beginning to end.<br />
They are full <strong>of</strong> information and there is<br />
a nice variety <strong>of</strong> articles. Thanks for all<br />
the work you guys put into them.<br />
By the way, I recently filed a claim<br />
through NAPAA for reimbursement <strong>of</strong><br />
my E&O deductible. The turnaround<br />
time was fantastic! I was surprised<br />
how fast and easy it was. If nonmembers<br />
were aware <strong>of</strong> this benefit, I’m sure<br />
they would reconsider their reasons for<br />
not joining NAPAA. Also, I’ll soon be<br />
filing for my CE subsidy reimburse-<br />
ment. These benefits alone pay for my<br />
NAPAA membership.<br />
I am a member <strong>of</strong> NAPAA and am<br />
interested in selling my agency. I have<br />
been in business for eight months under<br />
the new agent contract. I tried to buy an<br />
agency but it fell through, so Allstate<br />
ceded it to me and now I’m getting 3.5%<br />
renewal commission. Unfortunately, that<br />
just isn’t cutting it. I am managing a $2.4<br />
million book with two full time staff and<br />
I’ve decided to sell it. I have been reading<br />
the information about selling a book on<br />
the website and now I am just looking<br />
for some more direct information on the<br />
process and how to start. Any help would<br />
be greatly appreciated.<br />
Editor’s response: Thanks for writing.<br />
We would be delighted to assist you! I know<br />
you understand that you have no economic<br />
interest in the ceded book, but we can help<br />
guide you through the sale process <strong>of</strong> your<br />
own book. Feel free to contact us by phone at<br />
877-627-2248.<br />
Letters and articles submitted<br />
to NAPAA may be edited for<br />
clarity, space, grammar, syntax<br />
and suitability.<br />
Names <strong>of</strong> agent contributors<br />
will only be published with<br />
writer’s permission.<br />
Letters and other<br />
submissions can be<br />
e-mailed to<br />
<strong>Exclusivefocus</strong>@napaaUSA.org<br />
or mailed to:<br />
NAPAA, P.O. Box 7666,<br />
Gulfport, MS 39506<br />
I want to thank you both for all that<br />
you do for the Allstate agents. You’ve<br />
kept those <strong>of</strong> us in the trenches informed<br />
<strong>of</strong> what is on the company’s horizon and<br />
shared the struggles and trials that other<br />
agents face in their relationship with Allstate.<br />
Trust me, that has helped me a ton.<br />
As I’ve gone through the ups and downs<br />
<strong>of</strong> being an Allstate Exclusive Agent, it’s<br />
always been a blessing to me to know<br />
that I ain’t alone!<br />
Nancy and Jim, I want to thank the<br />
two <strong>of</strong> you from the bottom <strong>of</strong> my heart<br />
and I wish you both well as you continue<br />
on in your work. I will continue to “talk<br />
up” NAPAA to my fellow Allstate brothers<br />
and sisters, as I really believe those<br />
that never joined NAPAA have really<br />
lost out on all the benefits and knowledge<br />
your organization provides. God<br />
bless you both!<br />
52 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
the NAPAA market place<br />
Agencies for Sale Agencies for Sale Agencies for Sale Agencies for Sale<br />
Arizona<br />
Tucson<br />
Harold Broc Broccoletti<br />
A070725@allstate.com<br />
520-744-3994<br />
Asking Price: $375,000<br />
PIF: 1,518 Premium: $1,515,114<br />
May qualify for New Outside<br />
Buyer Incentive Program - enhanced<br />
commissions, education<br />
bonus. Prime area, only 2<br />
other agencies nearby. Same<br />
location 10 years, low rent.<br />
Colorado<br />
Canon City<br />
Bob Rundell<br />
bobrundell@allstate.com<br />
719-275-5762<br />
Asking Price: TBD<br />
PIF: 3,000 Premium: $3,000,000<br />
Retirement community, only<br />
Allstate in area. Owner retiring.<br />
Florida<br />
Cape Coral<br />
Peter Look<br />
PeterLook@allstate.com<br />
239-699-2401<br />
Asking Price: $3,600,000<br />
PIF: 12,000 Premium:<br />
$14,000,000<br />
Number <strong>of</strong> Staff: 7<br />
Experienced, high credit<br />
score, clean record, able<br />
to get financing, must have<br />
$600k liquid cash. Willing to<br />
hold second. Two <strong>of</strong> the best<br />
locations in fast growing cities.<br />
One <strong>of</strong> biggest and best<br />
agency systems in country.<br />
Saint Cloud<br />
Marilyn Cochran<br />
MaJaPa10@AOL.com<br />
407-922-9471<br />
Asking Price: $450,000<br />
PIF & Premium: Please call<br />
Serious inquires, info upon<br />
request<br />
Haines City<br />
Carol Eddy<br />
CarolEddy@allstate.com<br />
863-860-9555<br />
Asking Price: $600,000<br />
PIF: 1,740 Premium: $2,400,000<br />
Option to purchase/ lease<br />
building (location since 1995)<br />
Miami<br />
Arnoldo Arguello<br />
ArguelloArnoldo@gmail.com<br />
786-499-3415<br />
Asking Price: Please call<br />
PIF: 3,000 Premium: $4,000,000<br />
Number <strong>of</strong> Staff: 3<br />
Ideal agency! Great retention,<br />
pr<strong>of</strong>itable book.<br />
Kissimmee<br />
Dale Revels<br />
dalerevels@gmail.com<br />
407-924-5336<br />
Asking Price: Please call<br />
PIF & Premium: Call for details<br />
Paperless <strong>of</strong>fice. Hall <strong>of</strong> Fame<br />
Life Specialist.<br />
Georgia<br />
Leesburg<br />
Private<br />
GaAgency4Sale@gmail.com<br />
229-376-8655<br />
Asking Price: $230,000<br />
PIF: 866 Premium: $1,000,000<br />
Great opportunity for Incentive<br />
Program, enhanced commissions,<br />
education bonus<br />
Several locations Georgia<br />
mel@sammconsulting.com<br />
678-223-7397<br />
Asking Price: Negotiable<br />
PIF & Premium: call for details<br />
Seller Rep, several locations<br />
Tyrone<br />
Brad Gohsman<br />
gohs31392@msn.com<br />
770-487-1112<br />
Asking Price: $475,000<br />
PIF: 1,850 Premium: $1,450,704<br />
25 year agency, near Atlanta.<br />
good retention and LR.<br />
Indiana<br />
New Castle<br />
Janet Begley<br />
jbegley1127@att.net<br />
765-623-6432<br />
Asking Price: $325,000<br />
PIF: 1,305 Premium: $1,320,918<br />
LR 51, Retention 82.2. 25 yr<br />
agency<br />
Maryland<br />
Several locations<br />
Ed Hogg (Rep)<br />
ehogg9@gmail.com<br />
703-862-8168<br />
Asking Price: Negotiable<br />
PIF: Premium: Call for info<br />
Seller Rep, several locations.<br />
New York<br />
Bronx<br />
Daniel Bosque<br />
danielbosque@allstate.com<br />
917-834-2326<br />
Asking Price: $1,500,000<br />
PIF: 4,740 Premium: $6,000,000<br />
Includes assigned risk auto,<br />
brokered business and 26 yr<br />
location on Broadway.<br />
Brooklyn<br />
Barbara Shamah Leeds<br />
barbararose583@aol.com<br />
917-301-2477<br />
Asking Price: Negotiable<br />
PIF: 1,758 Premium: $4,600,000<br />
Best location in Brooklyn. LR<br />
47, retention 89.7. 30 yrs, I want<br />
to retire!<br />
Pennsylvania<br />
Pittsburgh<br />
Lawrence Ross Agency<br />
LarryRoss67@gmail.com<br />
No Calls, Please email<br />
Asking Price: Negotiable<br />
PIF: 2,636 Premium: $2,522,201<br />
Retention 91, LR 45.27. 23<br />
years, located in pr<strong>of</strong>essional<br />
area. Premium does<br />
not include brokered business<br />
(American Modern, NEA,<br />
Butwin, Flood).<br />
Texas<br />
Grapevine<br />
Benny Robinson<br />
BennyRobinson@allstate.com<br />
817-421-7495<br />
Asking Price: $360,000<br />
PIF: 1,107 Premium: $1,400,000<br />
Qualifies for enhanced commissions.<br />
Denton<br />
Steve Sullivan<br />
steve@thesullivanagency.com<br />
940-566-2234<br />
Asking Price: $400,000<br />
PIF: 1,156 Premium: $1,600,000<br />
Good location, signage, low<br />
overhead. Growing area.<br />
Austin<br />
Blake Simpson<br />
BlakeSimpson@allstate.com<br />
512-923-3004 after 5:30pm only<br />
Asking Price: $450,000<br />
PIF: 1,400 Premium: $1,800,000<br />
Retention +90, LR 55. Low expenses.<br />
May be able to qualify<br />
for new enhanced commissions.<br />
Utah<br />
Taylorsville<br />
(West Valley City)<br />
Neil Whicker<br />
NeilW@allstate.com<br />
801-968-6852<br />
Asking Price: $240,000<br />
PIF: 1,175 Premium: $1,200,000<br />
LR 37.9, Retention 89.7. 35<br />
year agent retiring. Business<br />
qualifies for new enhanced<br />
commission program.<br />
Virginia<br />
Roanoke<br />
Betty Kosko<br />
BettyKosko@allstate.com<br />
540-362-4806<br />
Asking Price: $225,000<br />
PIF: 1,316 Premium: $1,096,927<br />
Great location. Qualifies for<br />
enhanced commissions.<br />
<strong>Spring</strong>field<br />
Larry A Bronstone<br />
lbronstone@gmail.com<br />
703-967-8287<br />
Asking Price: $725,000<br />
PIF: 2,286 Premium: $2,939,736<br />
SOLD!<br />
Several locations<br />
VA and MD<br />
Ed Hogg (Rep)<br />
ehogg9@gmail.com<br />
703-862-8168<br />
Asking Price: Negotiable<br />
PIF & Premium: Call for details<br />
Seller Rep, several locations<br />
<strong>Spring</strong> <strong>2013</strong> <strong>Exclusivefocus</strong> — 53
NAPAA Board<br />
<strong>of</strong> Directors<br />
2012-<strong>2013</strong><br />
Administrative Offices<br />
Jim Fish, Executive Director<br />
P. O. Box 7666<br />
Gulfport, MS 39506<br />
Ph # 877-269-3474<br />
Nonmembers: Call 563-564-1800<br />
ExecutiveDirector@napaausa.org<br />
Nancy Fish, <strong>Association</strong> Manager<br />
P.O. Box 7666<br />
Gulfport, MS 39506<br />
Ph #877-627-2248<br />
Nonmembers: Call 563-564-1800<br />
Fax #866-627-2232<br />
hq@napaausa.org<br />
Gerry Flores, Membership<br />
Development call 563-564-1800<br />
Please email HQ@napaausa.org to<br />
contact our <strong>of</strong>ficers and directors.<br />
Include the name <strong>of</strong> the person in<br />
the subject line.<br />
OFFICERS<br />
Bob Isacsen<br />
President<br />
Hoboken, NJ<br />
Dale Revels<br />
Immediate Past President<br />
Kissimmee, FL<br />
Debe Campos-Fleenor<br />
Executive Vice President<br />
Tucson, AZ<br />
Ismael Melendez, Jr.<br />
Treasurer<br />
Federal Way, WA<br />
Judy Ost<br />
Secretary<br />
Battleground, WA<br />
DIRECTORS<br />
Al Bullard, Floral Park, NY<br />
Ed Hogg, Fairfax, VA<br />
Greg Thompson, Burleson, TX<br />
Lezlee Liljenberg, Arlington, TX<br />
<strong>Exclusivefocus</strong><br />
<strong>National</strong> <strong>Association</strong> <strong>of</strong><br />
Pr<strong>of</strong>essional Allstate Agents, Inc.<br />
P.O. Box 7666<br />
Gulfport, MS 39506-7666<br />
Phone Toll Free (877) 627-2248<br />
Toll Free Fax (866) 627-2232<br />
Web Site www.napaausa.org<br />
Email HQ@napaausa.org<br />
Nonmembers: call 563-564-1800<br />
Jim Fish<br />
Executive Editor<br />
P.O. Box 7666<br />
Gulfport, MS 39506<br />
Phone (877) 269-3474 • Fax (866) 627-2232<br />
<strong>Exclusivefocus</strong>@napaausa.org<br />
Nonmembers: call 563-564-1800<br />
<strong>Exclusivefocus</strong> and DirectExpress are <strong>of</strong>ficial publications<br />
<strong>of</strong> NAPAA - The <strong>National</strong> <strong>Association</strong> <strong>of</strong><br />
Pr<strong>of</strong>essional Allstate Agents, Inc. No part <strong>of</strong> this publication<br />
may be reproduced without prior written permission<br />
<strong>of</strong> the publisher. It is the policy <strong>of</strong> this publication<br />
to reflect the pr<strong>of</strong>essional thoughts and attitudes <strong>of</strong><br />
our members and to advance the pr<strong>of</strong>essionalism <strong>of</strong> the<br />
insurance industry to the ultimate benefit <strong>of</strong> the insuring<br />
public.<br />
The views expressed by NAPAA, or any <strong>of</strong> its positions<br />
relative to its activities and those <strong>of</strong> its members’ actions on<br />
behalf <strong>of</strong> this organization, are expressly those <strong>of</strong> NAPAA,<br />
and do not reflect the views or the opinions <strong>of</strong> Allstate Insurance<br />
Company, or any <strong>of</strong> its affiliates.<br />
Letters to the Editor: All letters must include an address<br />
and a daytime and evening phone number. We<br />
reserve the right to edit letters for clarity and space.<br />
This issue <strong>of</strong> <strong>Exclusivefocus</strong> magazine may contain<br />
articles <strong>of</strong> interest submitted to NAPAA by outside authors.<br />
NAPAA is not responsible for the opinions, advice<br />
or accuracy <strong>of</strong> any information provided therein.<br />
NAPAA’s Mission Statement<br />
NAPAA is dedicated to the success <strong>of</strong> Allstate<br />
Exclusive Agency Owners and to advance the<br />
independence and entrepreneurial spirit <strong>of</strong> our<br />
members.<br />
NAPAA’s Goals<br />
Our goals are subject to alteration, influenced by<br />
a constantly changing environment and the needs<br />
and wishes <strong>of</strong> our members.<br />
NAPAA encourages its members to actively<br />
participate in the process <strong>of</strong> defining and refining<br />
our Mission, Goals and Positions.<br />
Our General Goals:<br />
• To provide an organization specifically tailored<br />
to benefit Allstate Exclusive Agents<br />
• Monitor legislative and legal issues pertinent<br />
to Agents and their clients<br />
• Maintain an Action Fund to support issues<br />
beneficial to agents and clients<br />
• Provide reliable communications on all issues<br />
that affect Agents and the ability to call upon our<br />
members to act<br />
• Provide Agents with a distinct voice on issues<br />
that affect them, continually exploring options and<br />
solutions<br />
• Make tools and resources available for members<br />
in an effort to increase agency value and success.<br />
For more information,<br />
please visit<br />
www.napaausa.org<br />
<strong>Spring</strong> <strong>2013</strong><br />
issue <strong>of</strong> <strong>Exclusivefocus</strong><br />
brought to you by the<br />
<strong>National</strong> <strong>Association</strong><br />
<strong>of</strong> Pr<strong>of</strong>essional<br />
Allstate Agents.<br />
54 — <strong>Exclusivefocus</strong> <strong>Spring</strong> <strong>2013</strong>
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