Todd McIndoo is a Vice President at Speedy - National Association ...

ExclusivefocusWinter 2009/2010An Official Publication of the National Association of Professional Allstate Agents, Inc.Report MisclassificationInfractions to the IRS -Anonymously!Sample IRS Form 3949 Aincluded! page 24Have Allstate’s ActionsCaused you to Rethinkyour Career Choice?Plan now to Attend theFirst-ever “Life AfterAllstate” Job FairSee details – page 36Tell Legislatorsand Other Officialsabout the AgentMisclassificationCase at AllstateSpecial ‘Pull out and Mail’letter included insideDestinationWashington, DCJoin us in the Nation’s Capital forour 20th Anniversary Celebrationpage 34A Magazine for Allstate Agency Owners and Allstate Personal Financial Representatives

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ExclusivefocusWinter 2009/2010An Official Publication of the National Association ofProfessional Allstate Agents, Inc.FEATURES20 A Voice is A Terrible Thing to Waste24 Meet IRS Form 3949 A – an Anonymous Way to Report IC AbusePetitions and SS-8 forms having an effect29 Keeping up the PressureYou can help save our jobs by detaching and mailing the letterfound in the center of this magazine.30 Let Your Voice Be Heard!Find your state’s attorney general and let them know yourthoughts on your relationship with Allstate.34 2010 National EA Conference & Job FairWashington D.C., May 5-8, 2010BUSINESS14 Are You AssociatingWith The Right People?By Bill Gough40 Sell 26% More Policiesby Managing Your X-Dates41 The Driving Factors ofAllstate Agency Value: WhatStory Is Your Agency Telling?BY PAUL CLARKE44 To Be Or Not to Be?BY JEFF WILSON50 Is the Glow of Gold for Real?BY MARKUS BRUDERER56 Why Insurance?TECHNOLOGY16 The Power of Wireless – Now Much More than Cell Phones18 Software-as-a-service Document Management Saves Time, MoneyBY JOHN MAYEUXDEPARTMENTS6 President’s Letter10 Letters to NAPAA23 Membership Application60 NAPAA Market Place62 Index to Advertisers46 Tools to Help Grow Your AgencyBY JACKIE FUNK53 Are You a Technology Dinosaur?Tips on Converting to a Paperless OfficeA Magazine for Allstate Agency Owners and AllstatePersonal Financial Representatives4 — Exclusivefocus Winter 2009/2010

Ado an analysis to determine if I should sellthe equity interest in my Allstate agency.In order to give you some background informationabout my story, following is anoverview of my CSRP report:• Annual Premium: $4,000,000• Policies in Force: 3800• Retention: 92%• Loss Ratio: 38%• Location: Storefront, 600 squarefeet, Downtown Manhattan, NYC• Staff – 3• Sale Price: $900,000. Cash less finder’sfee.• Bank Financing: Allstate Bank• Date of Closing: 1/2/2007As part of the process to make athoughtful and honest decision as towhether or not I should sell the equityinterest in my agency, I developed a listof questions and answers. This procedurehelped me immensely in the decisionspresident of your association, Ilook for subjects to write about thatreflect some positive events happeningat Allstate that are beneficial to ourmembers. But as you know, the news outof Northbrook these days has been lessthan optimistic as it relates to the futureof the Allstate agency owner. Hundreds,if not thousands, of your fellow agentswill receive 90-day termination letters inthe months to come. This in itself shouldtell you the sort of senior managementteam you are dealing with at Allstate.But today I bring you hope that yourfuture can be brighter. This is becausemy own personal experience and the experiencesof many other former Allstateagents have shown me that, yes, there isa great life after Allstate. But in order foreach of you to achieve your optimum future,you must have an achievable planthat either includes or excludes Allstate.president’s letterYes, There is aGreat Life after AllstateThe first step in this analysis is tounderstand the reason that you need tobegin this process. First, stand back andlook at what has happened, and continuesto happen, to you and your fellow agents.You are not the valued workers you oncewere and, in fact, are now deemed to beexpendable liabilities. This greed-basedmindset was introduced to Allstate bythe same leaders who oversaw the nearannihilationof the iconic Sears Roebuckand Company. These leaders have neverunderstood the Allstate agent and it isdoubtful they ever will.For most of you this will not be a revelationof any kind, it is merely a fact thatmust be acknowledged. In addition, it’snot personal. It’s just business and youmust start the process on that basis.After spending 46 years as an insuranceexecutive, including 21 years as an Allstateagency owner, I was in a good position toExclusivefocusNational Association ofProfessional Allstate Agents, Inc.P.O. Box 7666Gulfport, MS 39506-7666Phone Toll Free (877) 627-2248Toll Free Fax (866) 627-2232Web Site www.napaausa.orgEmail HQ@napaausa.orgJim FishExecutive EditorP.O. Box 7666Gulfport, MS 39506Phone (877) 269-3474 • Fax (866) 627-2232Exclusivefocus@napaausa.orgExclusivefocus and DirectExpress are official publicationsof NAPAA - The National Association ofProfessional Allstate Agents, Inc. No part of this publicationmay be reproduced without prior written permissionof the publisher. It is the policy of this publicationto reflect the professional thoughts and attitudesof our members and to advance the professionalism ofthe insurance industry to the ultimate benefit of theinsuring public.The views expressed by NAPAA, or any of its positionsrelative to its activities and those of its members’actions on behalf of this organization, are expresslythose of NAPAA, and do not reflect the views or theopinions of Allstate Insurance Company, or any of itsaffiliates.Letters to the Editor: All letters must include anaddress and a daytime and evening phone number. Wereserve the right to edit letters for clarity and space.This issue of Exclusivefocus magazine may containarticles of interest submitted to NAPAA by outside authors.NAPAA is not responsible for the opinions, adviceor accuracy of any information provided therein.NAPAA’s Mission StatementNAPAA is dedicated to the success of AllstateExclusive Agency Owners and to advance theindependence and entrepreneurial spirit of ourmembers.NAPAA’s GoalsOur goals are subject to alteration, influencedby a constantly changing environment and theneeds and wishes of our members.NAPAA encourages its members to activelyparticipate in the process of defining and refiningour Mission, Goals and Positions.Our General Goals:• To provide an organization specifically tailoredto benefit Allstate Exclusive Agents• Monitor legislative and legal issues pertinentto Agents and their clients• Maintain an Action Fund to support issuesbeneficial to agents and clients• Provide reliable communications on all issuesthat affect Agents and the ability to call upon ourmembers to act• Provide Agents with a distinct voice on issuesthat affect them, continually exploring optionsand solutions• Make tools and resources available formembers in an effort to increase agency valueand success.For more information,please visitwww.napaausa.org6 — Exclusivefocus Winter 2009/2010

Winter 2009/2010 Exclusivefocus — 7

making process. I believe that agentswho have concerns about their futures orthe direction of the company should dotheir own objective evaluations. Followingis my list of questions and answers:• Do I have confidence in the leadershipand direction of Allstate? No.• Will the Hurricane Risk Management(HRM) initiative materiallyimpact the value of my agency? Yes.• Does the cost of my sales and advertisingbudget exceed the benefit ofan annually increasing RFG Bonusstructure? Yes.• Will I be able to attain increasingRFG requirements and ExpectedResults while maintaining an adequatereturn on the overall investmentI’ve made in my agency? No.• Have the rates and underwriting remainedconsistently competitive inmy market? No.• Does the local management “spin”override the unknown Home Office5-year plan? No.• Will the HRM program and negativepress be detrimental to the Allstatebrand? Yes.• Does Home Office have any respectfor the agency force? No.• Does the Machiavellian approach,“the end justifies the means” exist atthe highest levels at Allstate? Yes.After selling my agency interest, I retired.A year and a half later, I becamethe president of your association. Thenin January of 2009, I became the ManagingDirector, Risk and Insurance Servicesat the United Nations Federal CreditUnion, serving 85,000 members acrossthe globe. I just turned 68 and life isgood. There are countless success storiesof other Allstate agents who have madea positive transition to the real worldwhere intimidation of workers is not thecornerstone of success.My cell phone has been ringing offthe hook by agents who have been toldthat they will receive, or have alreadyreceived, a 90-day termination notice.NAPAA headquarters and I have beengiving counsel to each agent. Agents callingwith a 90-day notice in hand, however,are not in a position of strength. Tofind a qualified buyer and accomplish allthe things that need to be done beforethe buyer takes over is a tall order, evenwhen things go smoothly. Instead, agentsshould realize that they can be terminatedwith a 90-day notice at any time. Therefore,to preserve your current equity, andin many cases your retirement plan, youmust become proactive and not wait forthe big “DOG” to take you down.Due to the unprecedented terminationsand threats, NAPAA is preparingto host its inaugural “Job Fair” at thisyear’s National EA Conference beingheld in Washington DC. In additionto our great lineup of conference speakers,our Job Fair will include numerouscareer opportunities from leading insurancefranchises, independent agencygroups and individual carriers. This is aconference no agent should miss and weexpect a record turnout. Of course, we’llinvite Encompass, but don’t expect themto show up.As a final point, with the price ofagencies declining and fewer and fewerfinancing options available, we see moreand more agency owners acting as “bankers”by financing the sale of their books.This trend is a direct result of the economicdownturn and a scarcity of funds.So, out of necessity, selling agents arebecoming reluctant bankers, because itis the only way to consummate the sale.But this development has also spawneda positive trend, which is that sellers arenow suddenly much more interested intheir buyers’ success. We believe thisnewfound interest will help ensure theNAPAA Board of Directors 2009-2010ADMINISTRATIVE OFFICESJim Fish, Executive DirectorP. O. Box 7666Gulfport, MS 39506Ph # 877-269-3474ExecutiveDirector@napaausa.orgNancy Fish, Association ManagerP.O. Box 7666Gulfport, MS 39506Ph #877-627-2248Fax #866-627-2232hq@napaausa.orgPlease emailheadquarters@napaausa.org tocontact our officers and directors.Include the name of the person inthe subject lineOFFICERSBob IsacsenPresidentHoboken, NJDale RevelsImmediate Past PresidentKissimmee, FLDebe Campos-FleenorExecutive Vice PresidentTucson, AZIsmael Melendez, Jr.TreasurerFederal Way, WAGeorge AdamsSecretaryBirmingham, ALDIRECTORSAl Bullard, Floral Park, NYRon Jay, Yukon, OKGreg Thompson, Burleson, TXLiz Solis, Miramar, FL8 — Exclusivefocus Winter 2009/2010

success of these fledgling agency owners,which is a good thing. In this new environment,buyers and sellers have foundthat NAPAA is the only organizationthey can trust to get straight answers.There can be no doubt that a successfulsale transaction is largely dependent on asolid foundation and sound advice.On November 25th, we added Al Bullardto the NAPAA Board of Directors.He recently became an “Agency Banker”when he provided some financing to thebuyer of his book. With more than 30years of Allstate experience and firsthandknowledge of seller financing, he will bea tremendous asset to NAPAA. Pleasejoin me in welcoming him to the board.Our goal of 10,000 NAPAA membersis still achievable but we can’t do it withoutyour help. Please let us help you duringthese difficult times.Have a great holiday season.Warm personal regards,Bob IsacsenPresidentSupport Those WhoBring You This MagazineIf you have a customer moving out of state, callthe Agent-to-Agent Hotline to find an experiencedNAPAA member in the area. Give something back tothose dues-paying member agentswho make this publicationpossible. Your support isgreatly appreciated.When you havea Transfer-Out…Call 877.627.2248Send email requests toHQ@napaausa.orgAlways a cell phone away: 347-572-4698Winter 2009/2010 Exclusivefocus — 9

Nancy,First of all, I would like to tell you andthe NAPAA what a delight it has been tobe a member of the association over theyears. You have the word “professional”in your name and I can testify to the factthat you’ve earned the right to display itwith pride!Secondly, I would like to complimentthe staff of the association for the workthat you do. Your publications are thebest – filled with useful information anddesigned to help the Allstate family.I would also like to thank you and Jimpersonally for the help and assistance thatyou have given me. I decided to put mybusiness on the market in the anticipationof a quick sale and looked forward to semiretirementin September of last year.It took 11 months to put together asale. And the buyer found my ad on theNAPAA Website!. . . . . . . . . . . . .I know you understood that it is bad herein Texas, but it is probably much worse thanyou knew. Most agents will not list theirbooks on Allstate.com because they do notbelieve they will sell or they do not want totip off the company. If you go to Allstate.com and look at the agencies for sale bystate, you can add another 100-150% forthose that are not listed there.letters to NAPAAYou have agents here who have toldsales leaders they’ve found buyers andthen put the buyer in contact with them.Then the sales leaders tell them theydon’t have to buy a book because thecompany will give them seed accounts.Then the prospect does not buy and theselling agent is forced to take the TPP.Many of the big agencies they anticipategrowing to “Ideal Agencies” are introuble. They cannot sell enough. Nextyear we will be judged on autos. Homeswill not factor into RFG. Check yoursources; you will find this to be true. Andwe are not competitive in auto at all.Allstate stands to not only lose agentsbut take a blood bath in retention. Theonly thing holding some clients to thecompany is the agents. It certainly isn’tthe rates or claims being paid.The question is what will Allstate do?Controlled demolition and be sold.......?I heard that Liddy tried to sell to HankGreenberg (AIG) and he did not want itsome years back.The CIC is incompetent and wouldonly accelerate the slide if that is Allstate’splan to grow that side.Thanks for all you do.Editor’s response: I know you speak thetruth about the numbers of agents whowant to get out. Most have lost all hopeand are waiting for the axe to fall. The nextgeneration of agents will also become quicklydisillusioned, so if the company thinks it isreplacing the disgruntled and the unproductive,they will soon find out that the agentsare not the source of their problems.. . . . . . . . . . . . .I want to thank you and NAPAA forhelping Allstate understand that theagency force is what has made this companystrong. If Allstate is going to succeedin the future, they have to realizethat the strength of the agency force iswhat will make it prevail.I have been with Allstate for 26 years.For the first 24 years, I won Honor Ringand Conference every year and Chairman’s10 times. Then they decided tobring in RFG, which has removed anypossibility of winning awards and hasdemoralized agents and staff alike.I have four more years to work and Iwould like to see top management onceagain value those that brought them tothe dance.. . . . . . . . . . . . .When we use NAPAA’s agent-toagentprocess to locate qualified agentsfor clients moving to another state, arethere any guidelines that ensure the receivingagent is committed to “doing theright thing” for the client, such as transferringthe policy instead of re-writing it,or setting up the new EFT for life policies?This is one of the reasons I joinedNAPAA; it is very difficult to find agentswho are doing what is best for the customer.Because of RFG, these agentswant the new business count. The RFGprogram is bad for agents, customers andthe company.Editor’s response: The suggestion aboutthe transfer in commitment is a good one.We have previously published the correctprocedure for the transfers – we will do soagain .Another way to make sure that yourtransfer-outs are properly cared for is to followup via an OLB search to see if the policywas transferred or re-written. If it was rewritten,you can report it to NAPAA and,if the re-write wasn’t justified, we reservethe right to exclude the offending agent fromfuture transfer-in opportunities.. . . . . . . . . . . . .Do we have some information that Icould look at that talks about the properprocedure on selling a book?Editor’s response: There is a lot of informationin the Members Only section of theNAPAA Website. You will need to enter yourpassword to login. Once you login, click onBuying and Selling. You will find severalpages in this section that can help you in thesale process. In addition, members in goodstanding can contact NAPAA headquar-10 — Exclusivefocus Winter 2009/2010

ters for one-on-one assistance. Finally, wewill include a session on selling and valuingagencies at our national conference in Washington,D.C. May 5-8.. . . . . . . . . . . . .I am a three year agent and received a120-day letter a month ago. Over 75% ofthe agents under my MDL also receivedletters because they haven’t achieved theirAFS quotas for two years running. Yesterday,we found out that the companywill raise homeowner rates another 35%and is going to a 2% deductible. They aretelling us to make it up on cars. It will beimpossible to attain Ideal Agency statusin my market. I would have to more thanquadruple the size of my agency andsome of the large agencies are selling andfiling for bankruptcy. I see no future andI want to sell. I have $800K in premiumand would like to sell for $200K. Anysuggestions?Editor’s Response: 2.5X renewals is notan unreasonable price. However, there willsoon be a glut of books on the market andthe vultures will be circling looking for thejuiciest prey. Buyers will look for biggerbooks at discounted prices. They’ll look forlarger agencies because it won’t take as longto grow them to $4 million.The picture is bleak. Your best move isprobably to put your agency up for sale nowand see if you get any nibbles. If you wait,you may have to compete with more agenciesfor sale. You can always take it off the marketif you don’t get a reasonable offer.. . . . . . . . . . . . .Yesterday, I received a visit from my MDLand her boss. He stated that I haven’t metmy minimum production quotas for twoyears and, if I don’t get them by year end,I’ll be history. Unemployment in my countyis 16% and I’m losing long-term customersdue to the continuous rate increases. I canno longer explain away the increases becausethe customers no longer believe the same oldsong and dance. You would think the companywould understand what’s happening inletters to NAPAAthe marketplace, but they act like we’re in abooming economy. Also, they have no appreciationfor agents. My 25 years of loyalservice to this company means absolutelynothing to them. All of this just makes mefeel crappy.Editor’s note: The manner in which thecompany treats its long-term agents shouldmake newer agents stop and think abouthow they will be treated in future years.. . . . . . . . . . . . .I left Allstate recently and now work fora commercial brokerage. They have manygreat companies. I only sell commercial soAllstate can’t say I am taking customersaway. My buyer was a manager and sheseems to be losing many customers. Myformer customers call me at home or onmy cell for help, but I tell them I am notallowed to discuss insurance matters withthem for three years. Then I thank themfor their past business.I only make 10% of what I used tomake at Allstate, but I am very happyto finally be gone from there. I read theNAPAA publications and feel bad forsome of the people at Allstate. Seeingthe independent side and being able tooffer real insurance companies makes mewonder how I ever had any customers.Allstate is not even in the same league.Many of the customers have told methey are happy that I left so they canleave too. I had no idea how many peoplestayed because they did not want tohurt my feelings. I always wondered whyAllstate never compared their policies tothe competition. It is because they offerinferior coverage at inflated prices. Idid not realize until recently what a disserviceit is to a person to put them inAllstate. I can look in the mirror againbecause I know that I am now doing theright thing for people and myself.Hope you both are doing well. You aredoing a great job for the agents. Keep upthe good work! You are doing everythingyou can in a very sad situation.Happy Holidays!. . . . . . . . . . . . .Good magazine this month... but Ithink that every time I get one. Keep upthe good work. I sold but I’m sure a lot ofagents appreciate all your help.Retired agent in PA. . . . . . . . . . . . .The new “Roadmap” is giving me aheadache! The company cannot make itsplan work unless it seizes thousands ofsmall agencies and cons PSA agents intoborrowing money to buy them. The crazinessbehind their logic is mind-numbing.Most of the processes behind theRoadmap are simply fancy dancing.We know, of course, that larger agencieshave more staff to sell and serviceand that they will outperform a smalleragency. But when you look at total numbersare they really more efficient? If anagent buys eight agencies is he doingeight times the business as a small agency?Not based on the reports I’ve seen.But back to the central point, which isthe seizure of small agencies. This tacticis unconscionable. Obviously, the companyhas lost its moral compass.. . . . . . . . . . . . .You did a great job on the press releasesregarding our independent contractorstatus! Thank you so much for statingour plight so well. I wonder if mainstreammedia will pick up on it.Editor’s response: We did get some prettygood press on the petition and SS-8 article.A few blogs picked it up as well. We’ve beenposting the articles in DirectExpress eachweek. I hope you mailed in your petitionsand have encouraged others to do the same.To be effective, we need every agent to participate.Winter 2009/2010 Exclusivefocus — 11

. . . . . . . . . . . . .I was reading the Agent Informer newslettertoday and everything in that articleis true about Allstate.I’ve been with Allstate 26 years and inthe last week they have called me twice becausewhen I left my office in the eveningand transferred calls, I transferred the callsat 5:29 instead of 5:30, one minute early.Then I was told “I was not in compliance.”Talk about micro-management!On top of this, we have been pricedout of the market. We watch our booksdwindle down to nothing. When a customer’sauto and home premiums double,or in some cases triple, do you think thesepeople are going to stay with us? Our increasesaren’t like normal companies, wetake 20% year after year and forget it ifyour credit has gotten worse.After all these years you would thinkour jobs would be safe, but not a chance.They’re always demanding more production- more of this and more of that,and if we don’t meet those quotas, guesswhat? We’re gone.Wilson and the rest of those numbnutsdon’t give a damn about the agentsthey’re going to get their big bonuses nomatter what.... . . . . . . . . . . . .The October issue of the Agent Informernewsletter was the strongest and,unfortunately, most accurate Agent InsiderI have seen yet. Great Job!Editor’s note: The Agent Informer newslettercan be viewed online in the Hot Newssection at www.napaaUSA.org. It is publishedmonthly and is posted between the15th and 20th of each month.. . . . . . . . . . . . .I am proud to be a NAPAA memberand constantly try to get local agents tojoin NAPAA. They all listen intentlybut don’t seem to be motivated to getinvolved. Like most people, they wantletters to NAPAAsomeone else to fight their fight and sitback and watch.I make no bones about being a memberand display my NAPAA decals and windowsticker on my office and in my office.Thanks for all you do!. . . . . . . . . . . . .Things are getting crazy with Allstate.Everyone knows someone being terminated.Hey, that last issue of Exclusivefocuswas DYNAMITE! Any agent whodoesn’t send in those petitions isn’t worthhis weight in salt!. . . . . . . . . . . . .An agent in the one of the major citiesin my state wrote over a hundred EBitems last month and all the companycould tell him was, “they better be legitor we will fire you!” Nice company towork for, eh?As was written about in one of yourpast articles, we were advised by agencymanagement to write as many renters aswe needed in December 2007 to increaseour policy growth numbers.The article stated that attorneys fromHome Office were sent to investigate,but that no one had been terminated.I received a call today from my TDLadvising me that the company was pullingthe binding authority of one of mystaff who wrote several of those renters’policies. He suggested I fire her, yetit was my MDL’s suggestion to run theyear-end renters promotion. In fact, themanager is the one who told me whatto do and exactly how to accomplish it.Now, if I fire my staff person, she couldturn around and sue me.I am sure other agents were told theexact same thing. I remember a Leaders’Forum where an agent boasted that he“demanded” that each of his staff write50 renters policies that month. That’show he got there.Initially we were told that as long asthe customer knew they had the policywe would be okay, but now after it’s allsaid and done, I have just been advisedif the customer has no intent to keep thepolicy there could be a problem.It’s really frustrating to be told to dosomething and then be fired for listeningand obeying your boss.Editor’s response: There are a lot of agentswho implicitly trust their MSLs. Unfortunately,some of them are unscrupulous.NAPAA has always suggested that agentsbe cautious when dealing with management.Typically, they are in it only to benefitthemselves and have little regard what happensto the agent.. . . . . . . . . . . . .I was never told you will lose your bookof business if you do not have productioncredit for 6 and 63 (securities licenses).This is a major deception. If they hadtold me this, I would have never invested$500k and lost it all to Allstate.Editor’s response: Thanks for writing. Weagree that Allstate should inform prospectiveagents about this quota. It seems thata lot of agents don’t find out about it untilafter they sign the contract and have alreadyinvested thousands of dollars. We also agreethat the company should be held accountablefor such deception, but of course, litigationcosts money, and lots of it, especially whenyou’re up against Allstate.. . . . . . . . . . . . .I just received the fall issue of Exclusivefocus.The article and the ad both lookgreat! Thanks so much for including Aptela.I’d be happy to also add a link backto your organization or post somethingto our blog to promote your good work.Just let me know how we can continue tobest work together.Thanks again,Jackie FunkDirector of MarketingLetters continued on page 5812 — Exclusivefocus Winter 2009/2010

Are Agency Profits Being Squeezed?Cut agency expenses with the new“Recession Fighter Payroll Program”It’s guaranteed to save you money!For a limited time any Allstate agent may receive thesame great rate as NAPAA members.Save up to 25% off processing fees when you convert yourpayroll to E-chx by December 31st, 2009.*Charles Parkhurst866-341-3504cparkhurst@e-chx.com*Typical savings when switching from a national competitor. A national competitor is one that has processing centers located in each time zone.Winter 2009/2010 Exclusivefocus — 13

usiness/marketing tipsAre You AssociatingWith The Right People?BY ALLSTATE AGENCY OWNER BILL GOUGHEverything in life and business revolvesaround relationships. Everything youaccomplish or fail to accomplish will bebound up with other people in some way.Your ability to form the right relationshipswith the right people at every stageof your life and career will be a criticalfactor in your achievements and overallsuccess. The right relationships will havea huge impact on how quickly you canachieve your goals.The more people you know, and themore people you know in a positiveway, the more successful you will be atanything you attempt. It only takes oneperson, at the right time, in the rightplace to open a door that could foreverchange your life for the better, and saveyou years of hard work. The great businessauthor, speaker, and philosopher JimRohn says, “When the student is ready,the teacher will appear.”Make it a point to associate with thekind of people you like, admire, respect,and want to be like sometime in the future.Associate with the kind of peopleyou look up to and would be proud tointroduce to your friends and associates.The choice of a positive, successful, andgoal-oriented reference group can domore to supercharge your career and personallife than any other factor.Baron de Rothschild once wrote, “Makeno useless acquaintances.” If you are reallyserious about being the best and movingto the next level or to the top in your field,you cannot afford to spend your time withpeople who are going nowhere in theirlives, no matter how nice they are. In away, you have to be selfish with regard toyour future high ambitions, as many peopleare uncomfortable with success. I’mnot saying you should thumb your noseor try to make people feel inferior. It’sjust that the majority of people are happybeing mediocre, and not willing to workhard or make sacrifices to achieve highlevels of success.Many people get into bad relationshipsand form useless friendships earlyin their careers. This is normal and natural.Nothing is wrong with makingmistakes, especially when you are youngand inexperienced. But it is unforgivableto continue to stay in a situation thatprevents you from realizing your fullpotential. Your choice of the people youassociate with will have more of an impacton what you become than any othersingle factor.In 1996, I decided I wanted to be thevery best Allstate Insurance agent I couldpossibly be. I determined the fastest wayfor me to achieve this monumental goalwas to develop good, positive relationshipswith some of the very best Allstateagents in my market, state, region, andeventually, all over the country. In 1996,I had just one part-time employee andno EFS, so I had a ways to go to before Icould become a top tier agent.The one thing I did have, however, wasa burning desire to take my agency to anotherlevel — a much higher level. I set mysights on winning Chairman’s Conference,which would also qualify me for LeadersForum. This is where you find all the verybest Allstate agents, and I wanted to be apart of that elite group. I hit my goal inless than two years, and have never lookedback. I soon found out that only the verybest Allstate agents attended these events,and I set my goals to achieve this honoreach year. I discovered that by associatingwith the agents in this exclusive group, Iwas able to learn some of the best insurancepractices, processes and systems, many ofwhich I use in my agencies.My basic nature is to give more than Iask in return. This fact quickly circulatedamong those in the Allstate agent world.I knew deep down that this philosophy ofhelping others achieve their goals wouldreturn to me tenfold. I believe I wouldhave earned some of these awards anyway,but I could have never achieved them soquickly without associating with some ofthe best agency owners on the planet.So, I will ask you once again… “Are YouAssociating With The Right People?”14 — Exclusivefocus Winter 2009/2010

Allstate Insurance Agency Owner Bill Gough Announces ARevolutionary, New Insurance Agency Success Blueprint, IntendedONLY For Allstate Insurance Agency Owners Who Seriously WantTo Take Advantage Of, And Profit From These Economic Times!!Bill Gough, Allstate AgentThe behind the scenes “secretweapon” used by hundreds ofsuccessful Allstate InsuranceAgency Owners. Agents hire Billto help them grow their Book ofBusiness, improve retention, andincrease agency profits.Bill’s Agency has qualified forInner Circle 5 times, Chairman’s12 times, Honor Ring 20 years,National Conference 5 years, andLeader’s Forum 18 years.Most insurance agencies try to build businesses completely backwards. They attemptto build their agency by working hard, but without a compass, proper businesssystems, or structured roadmap.You may not have stopped to think about it lately, but ask yourself…Why did you get into the insurance business in the first place? Did You Get In The Insurance Business To Work Harder, To Work Longer HoursEvery Single Day, To Fear Taking Time Off? Did You Get In The Insurance Business To Worry Endlessly About Where NextWeeks’ Customers and Revenues Are Coming From? Did You Get In The Insurance Business To Have Relationship Stress On ARegular Basis? Did You Get In The Insurance Business To Just Provide Jobs For Those In YourCommunity And Pay Lots of Taxes? Did You Get In The Insurance Business To Just Pay Your Bills… And To Earn ALiving? Did You Get In The Insurance Business To Be A ‘Coal Miner’… “Hi Ho, Hi Ho,It’s Off To Work I Go”You probably got into the insurance business to make a great living and to have independence, to be in control, to feelconfident and powerful, perhaps to be seen and respected as a business leader and known in your community, to have amore interesting and exciting live, and to create security and wealth.Isn’t This What Your Insurance Agency Is SUPPOSED To Be Providing You?If your agency isn’t providing you all of these things, or if it has slipped away, then you owe it to yourself and yourfamily to make the commitment RIGHT NOW to attend the BGI Marketing Insurance Agency Success Blueprint inAtlanta, Georgia in March 2010.For complete details, go to www.BGIWorkshops.comor call 1-877-208-9649 Toll Free NOW!!See What Other Allstate Insurance Agency Owners Are Saying About Bill Gough:“I’ve had the blessing of knowing Bill Gough for many years. I’ve referred many people to him because he is absolutely, without adoubt, a Marketing Guru inside of Allstate, and besides he’s just a neat guy.”Laura Harris, Corpus Christi, TX“Attending Bill’s 3 day event was PHENOMENAL! This is a great opportunity for ANYBODY, new and experienced agentsalike!!”Eugene Ungermann, Los Angeles, CA“I’ve been around for 40 years and we’re one of the top agencies in the country. Bill’s 3 day event was one of the most valuablethings we’ve ever done. If we can use it, anybody can and I mean that!”Jack Hallberg, Chicago, IL“Bill’s systems made an immediate difference in retention and new business. We added an additional $19,125.00 of annualincome that will continue to roll in year after year. The ROI is staggering!”Devery Prince, Anchorage, AKBGI Marketing Systems / Phone: 877-208-9649 / Web: www.BGIWorkshops.com

technology tipsThe Power of Wireless –Now Much More than Cell PhonesWhen they hear the word “wireless,”most people think of cellphones. For many years, that was prettymuch what the wireless industry was allabout. But like all things in the technologyworld, wireless has grown and evolvedinto so much more. Wireless is now aboutempowerment. It is now the ability to dowhat you need to do anytime and anywhere.It is the power to deliver superiorcustomer service or run your businessmore efficiently. Let’s look at some of thewireless technology available to Allstateagents and see what value it can bring toyour agency.Wireless voice service still has a greatrole to play in allowing an agent to beaccessible to their customers, their staffand their families. But younger clientsmight prefer to use email, text or evenFacebook to communicate. Think of thepower of having a highly satisfied customerpost a glowing endorsement of hisAllstate agent on a Facebook page whereit is viewed by hundreds of friends. Thinkof being able to host a Facebook groupfor your clients with postings on beingprepared for emergencies. An agentwith anytime on-the-go access to Facebookwith a mobile device can updatethe group on the fly. For example, let’ssay a hailstorm hits a small town. Theagent can post quick tips for policyholderson how to get a claim started. As thehours and days unfold, updates can keepa whole base of policyholders informedabout the arrival of CAT teams, the locationof CAT vehicles, and how to getadditional resources from local agenciesor FEMA. Talk about keeping customersin good hands!A well-chosen wireless device with theability to unleash this kind of powerfulcommunication can be a great tool for anAllstate agent. However, sleek and spiffydoesn’t always equate to a business-classtool. It is very important to take the timeto think about how you will use thisdevice and consider which features willmake it easy for you to take full advantageof the benefits of mobility. The veryfirst thing you should consider is the networkthat will carry your voice and dataservice. All of the major carriers havetools on their Websites that allow you tocheck the network coverage in specificareas. Some sites allow you to check byspecific street address. You should alsolook at what kind of network they have,not just where it is. If you access the Interneta lot on your mobile device, lookfor a network that is at least 3G in yourarea. The G stands for Generation. 3Gstands for third generation and if youwant great performance while surfing theWeb or accessing Facebook or your Allstateemail, you need a 3G network. Onenational carrier has even begun deploying4G speeds in select markets. 4G allowsdata traffic to move 3-5 times fasterthan 3G. To learn more about the various3G networks, check out the articlefrom PC World that conducted a test ofthe data networks from Sprint, Verizonand AT&T. You can find it by goingto Google and typing “PC World 3G”in the search box. The test comparisonmeasured both speed and the reliabilityof getting and keeping a connection in anumber of cities across the US.Once you know which network is bestfor you, it’s time to pick a device. Butdon’t just go for looks. The old sayingthat beauty is only skin deep also appliesto wireless devices. Many people,for example, just love the look of a touchscreen device. To be sure, they look sleekand beautiful, as millions of iPhone users16 — Exclusivefocus Winter 2009/2010

will attest. However, wireless users havevery strong preferences when it comes totexting or sending email. They either lovethe “virtual” keyboard where they touchan image of each letter on the flat screenor they hate it. Most users who send a lotof emails and text messages prefer a realkeyboard with real keys. When you arelooking for a device, be sure to test bothkinds of keyboards. You will figure outvery quickly which type you like more,which can really help you narrow yoursearch. Once you decide which networkand keyboard you like, your search becomeseasier and more manageable.The next step is to choose the operatingsystem that you want to use. Themost well known is Blackberry. However,Allstate does not support the useof Blackberry devices to get Allstate.comemail. However, if you are a tech-savvyagent and are willing to figure that outwithout a job aid, a Blackberry can workfor you. If you’d rather have a devicethat also has an Allstate job aid availablewhen accessing your Allstate email, yourbest bet is a Windows Mobile Device.There are other platforms out there too,like the new WEB OS on the Palm Preand the Android platform that is availableon a few devices. However, like theBlackberry, if you choose one of theseplatforms, you won’t have access to a jobaid to help you get started.Now that you’ve considered the threemajor components of wireless: network,keyboard and platform, you can startlooking at product features like camerasand music players. Most carriers requirea two year agreement for your new wirelessdevice so take your time and decidecarefully, as this is a purchase that youwill use almost every day.So we’ve talked about wireless devicesand what they can mean for an Allstateagent, but there is another wireless technologythat can make a world of difference- wireless data. Everyone is familiarwith the ability to go to Starbucks andaccess the Internet via WiFi. But now,you have the ability and the technologyto generate your own WiFi. This personalWiFi technology is called “MiFi.”In a home environment, think of beingable to take a device about the sizeof a deck of cards, turn it on and allowup to five users to access the Internet atthe same time. You can be on vacationusing your laptop to check email whileyour spouse uploads vacation pictures toShutterFly using a WiFi-enabled camera.At the same time, your kids can playvideo games against their friends backhome on their WiFi enabled video gamesystem. MiFi is available right now witha variety of devices.That same personal hotspot technologycan also enable more business-orientedprocesses. For example, there arespecialized cameras, that when used witha personal hotspot, can stream live videoover the Internet with two-way voicecommunication. Imagine a situationwhere adjusters are scarce in your areabecause of a major event in another partof the country. To ensure great customerservice, an agent could stream live videoto an adjuster in another town or anotherstate and provide the data to process theclaim. And since the camera also hastwo-way voice capability, that adjustercould ask the agent to move to the rightor left or zoom in – all in real time.In your agency, imagine having a wirelessUSB laptop card plugged into a wirelessrouter. Now your entire small officecan have Internet connectivity for a fractionof the cost of a DS3 or a T1. Whyspend hundreds of dollars a month for awired data connection when you can accomplishthe same thing with the flexibilityof wireless.When you shut down for the weekend,simply grab the wireless card from therouter and take it home to use with yourlaptop. Or, you can use the card and routeras an automatic backup for your wireddata connection. Either way it providesgreat value and flexibility.Technology can be very intimidating.It is new and unfamiliar but it is alsopowerful. Your customers are evolving asare the ways they prefer to do business.Imagine the possibilities and then talkto your wireless provider to see how theycan make these new technologies workfor you. If you can imagine it, wirelesscan probably do it for you!Article contributed by Sprint, a wirelesstechnology company. For more informationon the ideas presented in this article, callPatti Siwicki at 708-417-5084 or visitwww.Sprint.com/allstateagent.Winter 2009/2010 Exclusivefocus — 17

There is no software to install onmultiple computersCustomers don’t have to rely on an ITperson to install an application. Everythingis running securely at the vendor’slocation.Any upgrades occur behind the scenesautomatically. With traditional licensedsoftware, you typically have to wait forthe next release to get the latest advances.Given the cost and complexity of movingto a new version, it may not even be practicalto upgrade each time a new releasebecomes available. With a SaaS subofficesolutionsSoftware-as-a-service DocumentManagement Saves Time, MoneyBY JOHN MAYEUXThis year’s catch phrase is Software as aService (SaaS). Analysts claim that by2010, 30% of new software will be deliveredvia a SaaS model. Also called “cloudcomputing,” “on-demand software,” the“ASP model” or “hosted software,” SaaSinvolves subscribing to Web-based softwarehosted at the provider’s site.For insurance agencies of all sizes,SaaS can be a great way to roll out newtechnology -- especially when it comesto document management systems.Save money from the startDocument management systems, ingeneral, were designed to save businessesmoney. By scanning and storingpaper and electronic documents online,insurance agents can get rid of bulky filecabinets, most office supplies and reducepostage and courier fees. But, when aservice is available online, you can saveeven more.Little or no upfront costsBecause there is no software to install,there are typically low, if any, upfront expenses.When you subscribe to a SaaSapplication, you avoid the overhead associatedwith implementing conventionalsoftware. A typical software implementationinvolves purchasing and maintainingservers, housing them securely, andinstalling and maintaining the software.This requires the time and effort of experiencedIT personnel, which many smallerbusinesses these days cannot afford.Expenses can be budgetedWhen you subscribe to a SaaS application,you pay a monthly or annualsubscription fee. Compared to a traditionalsoftware license, this subscriptionpayment structure will work to your advantage.An ongoing monthly expenseis easier to incorporate into your budgetthan a large one-time outlay. You canusually cancel or change your subscriptionat any time without losing a largeinitial investment.Implement in hours or days… notmonthsBecause you will eliminate many ofthe typical implementation tasks associatedwith licensed software and becausethe software is already up and running onthe vendor’s data center, deployment timetends to be much shorter with a SaaS application.Just think: someone, somewhereis already using the service successfully.For Web-based systems, training andsetup is usually done entirely online --since that is where people will be usingit. After training, users can begin usingthe solution immediately.“We use our training period to helpour clients setup their users, file cabinetsand insurance companies,” explainedLeslie Haywood, CEO of a Web-baseddocument management company locatedin Tampa, Florida. “That ensuresour clients are actively using the systembefore hanging up the phone.”You don’t need ahuge IT departmentWhen you subscribe to a Web-basedapplication, you free your agency fromsupporting high cost, time-consumingIT functions, including:· Purchasing and supporting the serverinfrastructure necessary to install andmaintain the software in-house.· Providing the equipment redundancyand housing necessary to ensuresecurity, reliability, and scalability.· Maintaining a labor-intensive patchand upgrade process.18 — Exclusivefocus Winter 2009/2010

scription, as soon as a new or improvedfeature appears in the application, youcan begin using it.Access any time, anywhereWeb-based applications enable you tosave your information on the Internet, soit is easily accessible from anywhere.Multiple offices?No problem. With a SaaS documentmanagement system, users can scan filesat one location and give employees atother offices instant access. It is easierand faster than e-mail to share files usingonline document management systems.Remote or travelling employeescan bring their files with themIf you have producers on the road,they can easily pull up a client file thatthey scanned in before they got in the car.Applications, contracts, correspondenceand even photos can all be stored online,so there should be no reason to return tothe office in the middle of a meeting. “Weoriginally signed up for a Web-based documentmanagement service to eliminatethe clutter and free up space,” explainedone agent in Sarasota, Florida. “A surprisebenefit is being able to retrieve scannedfiles from my home office.”No brainer off-site backup anddisaster recoveryOne of the most important, but oftenoverlooked, benefits of SaaS documentmanagement systems (or SaaS systems ingeneral) is the off-site backup of importantpaperwork. If you are storing your closedclient files in boxes in your office or home,they could easily be destroyed by a manmadeor natural disaster. By storing filesonline, they are backed up on a daily andweekly basis by the vendor – ensuring theinformation is there when you need it.“Most insurance agents are too busyto scan in their paperwork, let aloneback up their files and servers each day,”Haywood said. “With a Web-baseddocument management system, recordsstored online are backed up by the vendor– or should be – on a daily basis, ifnot constantly. It takes the responsibilityfor disaster recovery and back up off theagent or office manager.”Sounds good, but how can I besure that my data will be secure?Security and privacy are concernswhether you subscribe to SaaS or purchasesoftware and implement it on inhouseservers. A SaaS vendor you cantrust offers you the level of security youneed while saving your organization theexpense and effort required to house, deliver,and back up an application.Most vendors understand that datamust be backed up religiously, and securityis the top priority. Customers’ ITdepartments are typically pulled in manydirections and can’t be as focused on onetechnology. Customers can assume theirdata security is probably safer when it’shosted. When you are selecting a SaaSprovider, you should ask questions regardingsecurity, but overall SaaS providershave a good track record.When you’re considering a SaaS subscription,ask the following security-relatedquestions:• Is your production equipmenthoused in a state-of-the-art facility?• What are the security arrangementsfor the facility? Are they in place 24hours a day, 365 days a year?• On what type of infrastructure doyou host data? What are the virus protectionarrangements?• How often do you back up data andwhere are the backups stored?• What level of data encryption doyou use to protect web site transactions?• What is your privacy policy?Software-as-a-Service applications willgrow in popularity as more and more peoplebecome accustomed to using the Internetto access their business software. Andit makes sense as people spend more andmore time on the World Wide Web. Insuranceprofessionals will realize time andmoney savings by subscribing to serviceslike these.John Mayeux, National Account Manager,eBridge Solutions has been on the technologyside of the insurance industry for morethan 20 years.Fed Up With Your Paper Files?With eBridge Solutions’ onlinedocument management system and eAgent— our new agency management tool — youcan eliminate file cabinets and paper forever.By storing your customer data and electronicdocuments in one program, you’ll:• Reduce operating expenses• Increase staff productivity• Improve customer service and compliance• Implement back-up and recovery systems• Decrease physical storage space• Increase your ability to cross sell• Go greenAll of eBridge Solutions’ low-cost start-up andmonthly maintenance fees can be charged toyour Executive Advantage card.Call eBridge Solutions today to set up a demoand see for yourself why now is the perfecttime to go paperless!www.ebridge-solutions.com 877.676.6067introducing© eBridge SolutionsWinter 2009/2010 Exclusivefocus — 19

featureA Voice is A TerribleThing to WasteSUBMITTED ANONYMOUSLYBy now a substantial number of Allstateagents have heard or read aboutthe petition requesting a presidential and/or IRS inquiry into Allstate’s tax statusregarding its use of employees versus independentcontractors. Were it not for theefforts of NAPAA educating us about thealternatives to the status quo, most agentswould suffer in silence. Because our officesare without an agent-initiated informationnetwork, we rely on NAPAA’sweekly members-only communiqués andits quarterly magazine to provide accessto information otherwise not readilyavailable to Allstate agents. While themagazine is focused on supporting agentsin their daily business operations, it isNAPAA’s coverage of the “employee classification”issue that has dominated ourworld as of late. Most agents see this issueas out of their direct control, and as such,are tempted to rely solely on NAPAA fordirection and or on them, for action. Thiswould be a mistake.The fall 2009 Exclusivefocus magazinerepresents one of the most dramaticexamples of agent involvement coupledwith the prowess of NAPAA. Emblazonedwith the title “A Call to Arms,” themagazine cover previewed probably themost striking and intense article aboutwhat has become the cornerstone issuefor every U.S. Allstate agent — the misclassificationof employee status. No longerable to remain sidelined, many agentsfinally feel they have an avenue for directinvolvement. But, as important as it wasto mail in the petitions, the job at hand isfar from finished. There must be ongoingefforts to solidify the process.To participate ornot to participateIt is now several months since theAgency Relationship Survey and doubtlessmany agents declined to participateout of fear of retribution or because theyfelt it was a futile effort. However, manydid participate and Allstate corporate willsoon tell us this year’s results. If you responded,then good for you. Contrary tothe notion that taking the survey is a wasteof time, I believe each of our opinionsmatter. I am a 20+ year agent and havetaken the survey at least ten times andhave never been singled out or otherwiseidentified in spite of my extreme criticismof Allstate. Cowering in a corner in fearof retribution or blowing off the surveybecause you think it doesn’t matter, arewasted opportunities. Not speaking outonly serves to validate the company’s illconceivedagenda. To be sure, had everyagent participated in the 2008 survey, onecan only imagine how much different theresults would have been. We need to makea greater effort to get our fellow agents toparticipate in the next survey – only thenwill the company realize how concernedwe are with the status quo.When NAPAA published “DeliberatelyMisclassified?” and included themail away postcard to the IRS, manyagents took the time and mailed the card.As the author of that article, I investedover a year in research and many monthsmore of personal time to construct theelements of the article and piece themtogether. I did this with great sacrificeto my personal life so my fellow agentscould clearly grasp the depth and importanceof the misclassification issue. Afterthe article was published, I was emotionallytaken aback by the groundswell ofsupport that ensued. I am confident thatthousands of postcards found their wayto John Tuzynski’s desk at the IRS. Don’tdoubt for a moment that these smallishpieces of card stock had a huge impact.When “A Call to Arms” was written,the author made a statement about beingat a crossroads in his/her career. No truerstatement could ever be written abouteach and every one of us. We must facethe fact that Allstate has chosen a newpath for us; exclusive of our wishes. Wecan either remain silent or we can speakout. We can stay complacent or we canact. This crossroads that each of us facesis not one of our own making, but the actionwe take next is totally up to us.Discussing even the most serious of issuescan begin with a whisper. And whenenough voices whisper together, the volumecan be deafening. “A Call to Arms”requested each of us take a minute of ourtime and $.88 of our capital and mail away20 — Exclusivefocus Winter 2009/2010

the petitions to the IRS and to PresidentObama. With almost no effort or investment,each of us can turn up the volumeby anonymously requesting a review ofthe path Allstate has consciously chosento take regarding our employment status.This issue is so critical that it is paramountwe not stop there. Now is the time for moredecisive action. This can be monetary, likea NAPAA membership; the small annualdues should never discourage anyone frombeing a member. The benefits of NAPAA’sconsiderable efforts, in my estimation, arepriceless. Each agent who knows of a nonmembershould make at least one phonecall to recruit that agent. Another examplewould be organizing agent groups for a district-typemeeting. If geography limits thepossibility for face-to-face meetings, pick upthe phone. If you have progressed into thetech-savvy wave of communications, thenemail, text, or tweet.The time to sit on the sidelines is behindus. As Allstate ramps up its newIdeal Agency model of the future, manyof us are about to be sent to the sidelinesprematurely. With the complexity of theRFG and the imposition of new quotasfor ALI and EB, Allstate has instituted amassive employee infrastructure that hasbeen designed to cull the agent ranks byhalf our current size and simultaneouslyconfiscate our books of business. Even ifthe timeline is close to the Allstate suggested3 to 6 years, none of us will beable to market our books to prospectivebuyers between now and then. There willsimply be too many agents being terminatedand too few buyers.Note to Allstate: Email meThe next time your manager emailsyou, take a moment and print it out andsave it in a separate file marked “EmployeeEmails.” Too often we open these miniaturemissives and without so much as a glance,send it off to the recycle bin. Almost as often,these documents contain elements ofcommunication that clearly belong in the“employee” column. I especially like those“urging” us to do something, or that statethat failing to make your AFS ExpectedResults is “unacceptable.”Any such email should be printed andsaved in a file folder marked “IRS/Allstate”or saved on a CD, memory stick orstored via some other electronic storagemeans. There is a high probability thatyour MDL or other manager will emailyou a document requesting your attendanceat a mandatory meeting, or highlightingyour territory’s “sales team” EBauto or EB leaders. Some of us may beunlucky enough to receive an email decryingour year to date AFS and RFGperformance. These kinds of emails aregood because they imply consequencesfor failure to meet corporately imposedquotas (employee controls) and bad becauseno one wants to get one. When indoubt, regardless of content, print andsafely file away all emails. No one wantsto have to sue, but it is much easier topresent a jury with scores of printeddocuments than it is to claim that you“received lots of offending emails.”Letters to Congress and SS-8sMore than two years ago, I begansending multiple letters to many congressmenand senators requesting aninvestigation into Allstate’s misclassificationof its agent sales force. Onerecipient was United States SenatorRichard Durbin. Sen. Durbin is Chairmanof the Subcommittee on FinancialServices and General Government. InAugust 2009, after a yearlong investigation,the United States GovernmentAccountability Office (GAO) issued a69-page report on Employee Misclassification(GAO-09-717). Sen. Durbin,with others, requested this report.Whether my letters were significant toMr. Durbin I may never know. I can saythat the amount of attention given tothis subject by multiple agencies is impressive.The GAO document is lengthybut I encourage every agent to read it.Whether you have faith in governmentor not, understand there are thoughtful,intelligent and concerned people whobelieve in holding accountable thosewho would flaunt the law.One noteworthy response to the GAOreport is from the Department of Treasury.Deputy Commissioner Linda E. Stiffwrites: “We recognize that when employersimproperly classify workers as independentcontractors instead of employees,these workers do not receive protectionsand benefits to which they are entitled,and employers may fail to pay taxes theywould otherwise be required to pay.”When you combine the efforts by theGAO, the IRS, individual senators andcongressmen, and state attorneys generalyou can begin to see that the moreour whispers are heard the more theybegin to sound like shouts. If you are ata loss for the proper wording or formatfor your letter or email, Jim Fish fromNAPAA can provide examples for you touse. Don’t assume other agents will takeaction; instead, proceed as though yourcareer depended on it – because it does.The SS-8 filing is an important step inthis process of awareness, too. Althoughthe IRS could make an individual rulingon each filing, it is more likely that a rulingbased on the cumulative effect will bethe desired outcome. What the SS-8 willdo, is provide the IRS with informationthat previously has been unavailable. Thedesired outcome will be a targeted auditof Allstate and its premeditated noncomplianceof the Private Letter Rulingit was granted in 1989 by the IRS.Patience, Persistence, RepeatIn our world of instant gratification, weoften forget that our best rewards are oftenrealized after the sweat has dried fromour brows. No one ever said success comeseasily or quickly. This process many of youare reading about for the first time hasbeen in the works for over two years. It isthrough the dedicated, patient actions ofNAPAA and a few others that we are justnow beginning to see results. But now isnot the time to relax, if anything we muststomp on the accelerator.“A Call to Arms” is the rallying cry forthe actions we must take next. The articleand petitions are not the finale. Eachagent must contribute something. Dustoff your copies of Exclusivefocus. If thereare postcards or petitions that haven’tbeen mailed, tear them out and sendthem in. If you are unsure what to do,reread this article and those from past issuesof Exclusivefocus, such as “A Call toArms” and “Deliberately Misclassified?”Each contains suggestions or outrightdirections for how you can proceed. Andonce you have done at least one thing,go to the next. Don’t stop and I promiseyour voice will be heard.Winter 2009/2010 Exclusivefocus — 21

Why join NAPAA?NAPAA Resource Center• NAPAA HQ has extensive resourcesto help agents locate hard to find informationNAPAA Acts as the Voice of theAllstate Agent:• We say the things that must be saidon behalf of the agent.• We take stands on issues that affectagents, such as ALI, RFG, independentcontractor status, quotas andterminations (See examples in Exclusivefocusmagazine).• We are willing to meet with companyleaders, without fear.• We have demonstrated that we arewilling to take legal action when warranted.• NAPAA possesses “standing” underboth Florida law and Federal law.National EA Conference• Great speakers, informative legal andbusiness tips, vendor fair and muchmore.Free Member Benefits• Useful tools to help buy or sell anagency• Sample business plan• Sample letter agreement• Sample asset purchase agreement• Non-disclosure agreement for CSRP• Quick Reference Guide to buyingand selling Allstate agencies• Agency for sale listing on NAPAAWebsite and in Exclusivefocus magazine• Consultation with HQ staff familiarwith sale process• Access to “Member’s Only” sectionon NAPAA WebsiteFree NAPAA Communications• Subscription to the “NAPAA Forum,”our online discussion group.• Subscription to DirectExpress weeklyemail newsletter• Subscription to Exclusivefocus magazineFree Customer Transfer-in/Transfer-out Service:• We locate experienced NAPAAmember agents for customers transferringfrom state-to-state• As a member, you become immediatelyeligible to receive customertransfers to your areaFree Leads from the “Get aQuote” Page on the NAPAAWebsite• When a consumer requests a quote,we provide the lead to a NAPAAmember in the area.Special Offers and Discounts• 25% members-only discount on payrollprocessing with Paychex• Access to dental, group health, 401kand Section125 Plan when payroll isprocessed with Advanco. For detailscontact: Gerry Flores at (563) 564-1800 or gerbear_61@hotmail.comExpert Assistance from Staff atNAPAA Headquarters• HQ staff has more than 50 yearscombined experience in and aroundAllstate• Many times, company managers act intheir own self-interest – NAPAA actsin your best interests all the time.• NAPAA members get straight, nononsensehelp on a wide range of issuesfrom the knowledgeable, experiencedstaff at NAPAA HQ. These includesuch issues as buying and selling agencies,staffing, marketing, HO securityinvestigations and terminations.“Legislate for Success” Program• NAPAA sponsors and supports legislationfavorable to Allstate agentsLet NAPAA Help you Succeed• NAPAA acts as a support system formembers if and when they need helpFree Mentoring Program• We help members sort through themixed messages and misinformationthey receive.• Helps newer agent members by givingthem access to an experiencedagent who can provide solid, sensibleadvice and directionThe Board of Directors• Board members are uncompensatedvolunteers who have your interests atheart.• They are a diverse group that includesboth newer agents and seasonedveterans.12/09 - EF22 — Exclusivefocus Winter 2009/2010

NAPAA Membership Applicationand/or Action Fund DonationNATIONAL ASSOCIATION OF PROFESSIONAL ALLSTATE AGENTS, INC.P. O. Box 7666, Gulfport, MS 39506Call Toll-Free: 877.627.2248 • E-Mail: HQ@napaausa.org • Fax Toll-Free: 866.627.2232Name:______________________________________ Off Ph:_______________________ Fax__________________________Street:________________________________________________ E-Mail:__________________________________________City:________________________________________ State:_____ ZIP:__________ Home Ph: _______________________Is this address your ❑ Home or ❑ Office?Status: ❑ Active Agent ❑ EFS Agent ❑ Staff ❑ Other (please explain)____________________________________Date: _____________ Years with Allstate________ Office Zip Code (If using home address) __________________Referred by: _______________________________(name of person or publication that inspired your membership)MEMBERSHIP SECTION - (CONFIDENTIAL)Includes:• Free Insurance Leads from the NAPAA Website ❑ Annual $350/yr• Member-to-Member Transfer-in Referrals• Timely Communications, including a weekly newsletter ❑ EFT $29/mo• Comprehensive Resource Center• Resources for Buying and Selling AgenciesACTION FUND DONATION SECTION Check or CC EFT amountPAYMENT SECTION$____________ or $____________/mo.❑ CHECK - Annual: Please make payable to NAPAA and mail to the address at the top of this application.❑ CREDIT CARD – Annual: I authorize this amount to be charged to my credit card.(Please complete the information below)Card type: ❑ VISA ❑ MasterCard ❑ Discover ❑ American ExpressName on account ______________________________________ Amount to be Charged: $__________ (Annual only)Account Number ________________________________________ Expiration date __________ Security code________Address on Card _____________________________________________________Zip on Card_____________________Signature of Cardholder _________________________________________________ Date ____________(12/09 EF)❑ EFT - Monthly (attach or fax voided check)I understand that the amount stated above will be deducted from my checking account every month until instructed otherwise.I have enclosed a voided check and understand that the withdrawals will occur on or about the 20 th of every month.Authorization Signature: _____________________________________________________________Date ____________PLEASE FAX APPLICATION TOLL-FREE TO: 866.627.2232MAIL APPLICATION TO: NAPAA, P.O. Box 7666, Gulfport, MS 39506Note: You do not have to be a member to donate to the NAPAA Action FundWinter 2009/2010 Exclusivefocus — 23

featureMeet IRS Form 3949 A –an Anonymous Way to Report IC AbusePetitions and SS-8 Forms having an effectAs agents know, the company hasadamantly demanded that agentsfollow company scripts for a host of processes,which include “Care, Sell, Quote,”and “Premium Straight Talk.” However,on Veterans Day 2009, NAPAA reportedin DirectExpress, its member-only newsletter,that Allstate has quietly made amajor change in the way it coaxes agentsto implement processes and follow companyscripts. This newfound attempt tomodify its controlling behavior is the directresult of the work NAPAA has doneto attract the attention of the IRS andother tax authorities.So what kind of major change are wetalking about here? Following is an exampleof a disclaimer from a recent agentcommunication that NAPAA receivedfrom the Southwest Region:“Important note: Use of processes byagencies is strictly voluntary. All samplelanguage and talking points are providedsolely as sample language to consider.Agencies are not required to use suchsample language and talking points. Themanner, method and means by whichan Exclusive Agent operates his or heragency to achieve the expected businessresults established by the Company isat his or her discretion. The job dutiesof the licensed and appointed staff in anagency are at the sole discretion of theExclusive Agent.”While this may seem insignificant tosome of our readers, it is evident thatthe company is taking steps to shore upcompliance with IRS rules. What thecompany can’t do, however, is erase itstreatment of the agency force for the pastten years. NAPAA encourages agents toprint and save any documents that demonstrateabuse of independent contractorrules because if the IRS investigates andfinds Allstate culpable of misclassification,NAPAA believes large-scale lawsuitscould follow.While this is an important victory forthe agency force, we should all know bynow that what the company says is notalways what it does. It would be niceto believe that management’s behaviorwill change overnight. Or that suddenlyagents would be free of the employee-likecontrols that have progressively worsenedover the past several years. We already seein the disclaimer above that the companydoes not intend to abandon one of itsmost egregious infractions of IRS doctrine– the imposition of quotas. It is clear thatthe company plans to continue imposingquotas, minimum production standards,and perhaps other controls, such as howlarge your agency should be and howmany staff you need to hire.24 — Exclusivefocus Winter 2009/2010

al for either the purchase or sale of anagency• Any other information that insultsyour sensibilities as a professional independentbusiness owner.IRS Form 3949 A can be completedonline at www.irs.gov. To access theform, enter 3949 A in the search box andclick on the “search” button. The formwill come up online, and you’ll be able tocomplete it and print it. Once you havecompleted and printed it, mail the formalong with any supporting documents tothe following address:Internal Revenue ServiceFresno, CA 93888As mentioned previously, followingthis article you will find a hypotheticalexample of IRS Form 3949 A. The responseson the sample are what we believemay represent predictable answersbased on information sent to NAPAAby agents regarding the employee-typecontrols agents are subjected to on adaily basis.This “Information Referral” form allowsindividuals to send pertinent informationto the IRS directly. If you wantto submit copies of emails, communicationsor directives that support the misclassificationof the agency force, youshould submit any documentation withIRS Form 3949 A. The process is easy;complete and print the form, attach theproof, and drop it in the mail.When should Allstate agents stop reportinginappropriate behavior by Allstatemanagers? The answer is simple – whenthe following creed becomes a reality:I Am An IndependentContractor…1. I am an independent contractorand business owner of an insuranceagency offering Allstate insurance productsto consumers in my community.2. The operation of my agency issubject only to my own professionaljudgment.3. I am free to determine the hoursof operation for my office, as well as theholiday schedule for my office.4. It is my decision to offer 24 hourservice to my customers through the AllstateCIC, or not to.5. I will produce insurance applicationsin compliance with Allstate’sguidelines, but will establish my ownbusiness practices regarding how, when,and where the work will be done.6. I am not subject to quotas or minimumproduction standards.7. I am not subject to supervision,direction, or performance reviews fromAllstate managers.8. I do not provide reports to thecompany, outside of premium remittancereports.9. I am available to meet with companymanagement from time to time ata mutually agreed place and time, butattendance of company meetings andtraining sessions are at my option.10. I may staff my agency with workersof my choosing. Allstate will providebinding authority approval subject tolicensing requirements and backgroundcheck information only. All hiring, trainingand evaluation of my staff are at mysole direction.11. I am afforded the ability to contractwith other insurance providers of mychoosing for the purpose of securing coveragewhere Allstate has refused applicationfor coverage (right of first refusal).12. Having made significant investmentto acquire prospect and lead information,all personal information andquotes prepared for prospective buyers bymy agency are the property of my agencyand may not be shared with call centersor others for any purpose.13. I own the policy renewals for accountsin my agency, and have the rightto transfer any such business to other insurancecarriers at policy renewal upontermination of my agent contract withAllstate.14. My contract with Allstate may notbe terminated by Allstate without cause,except in the event that Allstate no longeroffers insurance in my state. “Cause”is specified in my contract and not subjectto change without prior consent ofboth parties to the contract.15. As an Allstate agent in goodstanding, I am an approved buyer for thepurchase of additional Allstate agencies,or books of business.16. I am free to sell my agency withoutunreasonable interference from Allstate.No buyer may be denied approval to purchasemy agency without cause. “Cause”is specified in writing in my contract andnot subject to change without prior consentof both parties to the contract.Until then…As long as Allstate continues to wieldextensive control over the agency force,then we, as employees, will demand restorationof all the benefits enjoyed by othercompany employees, including healthinsurance, 401k plans, pensions, paidvacations, protection from age or otherforms of discrimination, workers’ comp,employer-paid Social Security, Medicare,unemployment benefits, and all otherbenefits that were misappropriated fromagents at the time of the sham conversionto IC status nearly ten years ago.In conclusion:Regardless of your political persuasion,the time for this action is now. There maynever be another time in your Allstate careerswhen you have the opportunity toachieve and preserve your independentcontractor rights. That is why it is criticalthat every Allstate agent participateby sending in the petitions from our lastmagazine, completing IRS Form 3949 A,which can be found on the next page of thismagazine, and by completing and sendingin a letter to the attorney general in yourstate, such as the sample that is included inthis issue of Exclusivefocus magazine.Remember, there is nothing to fearbecause documents such as these can besent anonymously.NAPAA has provided this article forinformational purposes only. The contentsshould not be construed as legal advice fromNAPAA or its attorneys or accountants,and NAPAA expressly disclaims any suchadvice. NAPAA recommends that agentsconsult with their professional advisorsbefore taking any action that could affecttheir tax or legal status. NAPAA encouragesagents to read IRS Notice 989, CommonlyAsked Questions When IRS DeterminesYour Work Status is “Employee.” Beaware that the consequences of reclassificationmay include tax ramifications fromprior years.26 — Exclusivefocus Winter 2009/2010

Form 3949 A(2-2007)1. Taxpayer Namea. Street Addressb. City/State/ZIPc. Social Security Number (SSN)d. Occupatione. Date of BirthDepartment of the Treasury – Internal Revenue ServiceInformation Referral(See instructions on reverse)2. Business NameThe Allstate Corporationa. Street Address2775 Sanders Roadb. City/State/ZIPNorthbrook, IL 60062-6127c. Employer Identification Number36-0719665d. Principal Bus ActivityInsuranceOMB # 1545-19603. Marital StatusMarried Single Head of HouseholdDivorced Separated4. Alleged Violation of Income Tax Law (Check all that apply).False Exemption Unsubstantiated IncomeFalse Deductions KickbackMultiple FilingFalse/Altered DocumentsOrganized Crime Failure to Pay Tax3a. Name of SpouseUnreported IncomeNarcotics IncomePublic/Political CorruptionFailure to File Return✔ Failure to Withhold TaxWagering/GamblingEarned Income Credit✔ Other (Describe below)5. Unreported Income and Tax Years (Fill in Tax Years and dollar amount(s), if known, e.g., TY2005 $10,000)TY 03 $ TY 04 $ TY 05 $ TY 06 $ TY 07 $ TY 08 $a. Comments (Briefly describe the facts of the alleged violation - Who/What/Where/When/How. Attach another sheet, if needed).Allstate Insurance Company reports its captive agents to the IRS as 'independent contractors.' However, Allstatecaptive agents are subjected to employee-style controls including annual performance reviews; instruction,training and evaluation for work performance; mandatory hours and operating schedule, control of after hourstelephone service, sales quotas, required reporting of work tasks including prospecting calls, number of quotesand policy sales; mandatory attendance at meetings and training sessions; and at will termination of the agentcontract subject only to 90 day prior written notice. The agency distribution system is an integral part of theoperation of the company and the agency contract provides for a continuing relationship between the agent andthe company. Allstate agents work implicitly for Allstate, with approx 95% of income derived solely from Allstate.b. Are books/records available?✔ Yes Nod. Banks, Financial Institutions used by the taxpayer:Name:Address:City/State/ZIP:c. Do you consider the taxpayer dangerous?Yes ✔ NoName:Address:City/State/ZIP:e. Please describe how you learned and/or obtained the information in this report (Attach another sheet, if needed):I have been an Allstate agent for (__) years. I have witnessed employee-style control behavior firsthand and amincluding a copy of a recent company communication/directive that exhibits these allegations. By misclassiyingapprox 14,000 workers, Allstate has avoided years of Unemployment, Social Security and Medicare taxes.6. Your Name: Withheld for fear of retaliation, possibly resulting in the termination of my contract.a. Address:b. City/State/ZIP:c. Telephone Number (Please include the Area Code):For Mailing Address, see InstructionsFor Paperwork Reduction Act, see InstructionsCatalog Number 47872E Form 3949 A (Rev. 2-2007)Winter 2009/2010 Exclusivefocus — 27

InstructionsProvide the following information for the Person/Business You Are Reporting if Known:1. Namea. Street Address of Residenceb. City, State, and Zip Codec. Social Security Numberd. Date of the Person’s Birth2. Business Namea. Street Address of Businessb. City/State/Zip Codec. Enter Employer Identification Numberd. Describe the Primary Business Activity3. Indicate Martial StatusM - Married S - Single HH - Head of Household Div - Divorced Sep - Separated3a. Enter name of spouse, if applicable.4. Check all Tax Violations That Apply to Your Report or Describe in Comments If Not Listed.5. If your report involves unreported income, indicate the year(s) and the dollar amount(s)5a. Briefly describe the facts of the alleged violation(s) as you know them. Please attach another sheet, if you needmore room.5b. Indicate (Yes or No) if books and/or records are available that substantiate your report.5c. Indicate (Yes or No) if you consider the person to be violent or dangerous and provide an explanation in thecomments section of this form.5d. List name and address of bank(s) and/or financial institution(s) used by the taxpayer if known.5e. Briefly explain how you learned of or obtained the information contained in your report. Please attach anothersheet, if you need more room.6. Enter your name, street address, city, state, zip code and a telephone number where you can be contacted. Indicatetime of day you may be contacted if appropriate. This Information is not Required to Process Your Report.Please print and send your completed form to the Internal Revenue Service at:Internal Revenue ServiceFresno, CA 93888PAPERWORK REDUCTION NOTICE: We ask for the information on this form to carry out the Internal Revenue lawsof the United States. This report is voluntary and the information requested helps us determine if there has been aviolation of Income Tax Law. We need it to insure that taxpayers are complying with these laws and to allow us tofigure and collect the right amount of tax.You are not required to provide the information on a form that is subject to the Paperwork Reduction Act unless theform displays a valid OMB control number. Books or records relating to a form or its instructions must be retained aslong as their contents may become material in the administrations of any Internal Revenue laws. Generally, tax returnsand tax return information are confidential, as required by Code section 6103.The time required to complete this form will vary depending on individual circumstances. The estimated average timeis 15 minutes.Privacy Act NoticeWe are requesting this information under authority of 26 U.S.C. 7801.The primary purpose of this form is to report potential violations of the Internal Revenue laws.The information may be disclosed to the Department of Justice to enforce the tax laws.Providing the information is voluntary. Not providing all or part of the information will not affect you.Catalog Number 47872E Form 3949 A (Rev. 2-2007)28 — Exclusivefocus Winter 2009/2010

featureKeeping up the PressureFor the past several years your associationhas talked about and writtenabout the “independent contractor” issueat Allstate. During those years, NAPAAhad hoped that the company would see theerror of its ways and begin to treat agentsas true independent contractors. Regrettably,this vision never came to pass and,in fact, conditions have steadily worsened.It is clear the company will never acquiesceunless forced by the courts or sometype of government intervention.To that end, NAPAA has initiatedcampaigns to raise awareness about theindependent contractor misclassificationproblem at Allstate. First there wasthe IRS postcard campaign last winter.Then in the last issue of this magazine,we included petitions to the IRS andPresident Obama and the hypotheticalexample of an IRS Form SS-8.In this issue, we are introducingtwo more tools that agents can use toanonymously report the company’sbehavior to state and federal agencies.The first is described in the article: MeetIRS Form 3949 A – an Anonymous Way toReport IC Abuse. The second is the letterthat accompanies this article. It can beremoved from the magazine and mailedto your state attorney general and yourelected representatives.Thanks to the launch of the IRSQuestionable Employment TaxPractice (QETP) initiative in 2008, theemployment tax issue is now spreading tostate governments. More than two dozenstates have signed data sharing agreementswith the IRS, which will help ensureproper worker classification and ferret outemployers who exploit the system.As it turns out, the timing of theQETP couldn’t have been better forstate taxing authorities. The economicdownturn created significant shortagesin tax collections in most states, so stategovernments are eager to find ways toboost revenues. Therefore, states are nowramping up efforts to identify companiesengaged in employment tax schemes,including those that are deliberatelymisclassifying their workers in order togain favorable tax treatment. Recently,in fact, New York, New Jersey andMontana announced their intent to sueFedEx for violations of state labor laws.And last September, the IRS announcedplans to audit 6,000 companies forevidence of worker misclassification andunderpayment of employment taxes.When a company calls its workersindependent contractors and then turnsaround and blatantly treats them likeemployees, it is up to the workers toreport it. Failure to report such treatmentsends the message that the company’sbehavior is acceptable, which only leadsto more control and exploitation.The following letter was drafted basedon information obtained by NAPAAfrom agents, company materials andmanagement communications. Webelieve it to be a truthful representation ofthe state of affairs at Allstate. If you agreeand believe you are being treated likean employee instead of an independentcontractor, we urge you to send it to theattorney general in your state. The lettercan be sent anonymously if desired.By now we’ve all heard that asignificant number of Allstate agentswill be terminated in the next 12 to 24months. This is a startling revelation forsome and an “I told you so” moment forothers. Whatever your beliefs, it is clearthat the company is intent on eliminatingmany of us and it is time for us to dosomething about it.You can help save our jobs by detachingand mailing the letter found in thecenter of this magazine. Mail it to yourstate’s attorney general, your electedrepresentatives, the Department of Laborand other departments or officials.Sending the attorney general letter iseasy. For all states, except New Jersey*,follow the steps below:1. Remove and read the multi-pageletter from the magazine.2. From the list beginning on the nextpage, locate the name and address of theattorney general in your state.3. Fill in the address and salutationsection located on the upper left side ofthe letter (see instructions on next page).4. Sign your name or if you prefer,write the words “Name Withheld forFear of Retaliation” on the last page ofthe letter under “Respectfully yours.”5. Address envelope to your stateattorney general and insert letter.6. Optional additional step: Makeadditional copies to send to your electedrepresentatives. Be sure to make copies ofthe letter before completing the addresssection. That way you can send a letter toother officials or government agencies.*New Jersey agents: Please contact NAPAAHeadquarters for a special version of the letter.Winter 2009/2010 Exclusivefocus — 29

Let Your Voice Be Heard!In the centerfold of this magazine, you will find a letter that can besent to your state’s attorney general. Following are the names and addressesof the attorneys general for all states except Massachusettsand New Jersey. Please use this list to fill out the address and salutationfor the letter, along with the mailing address. For instance, if youlive in California, you would use this information:Alabama Attorney GeneralTroy King500 Dexter AvenueMontgomery, AL 36130Alaska Attorney GeneralDaniel S. SullivanP.O. Box 110300,Diamond CourthouseJuneau, AK 99811-0300Arizona Attorney GeneralTerry Goddard1275 W. Washington StPhoenix, AZ 85007Arkansas Attorney GeneralDustin McDaniel200 Tower Bldg., 323 Center StLittle Rock, AR 72201-2610California Attorney GeneralEdmund G. “Jerry” Brown, Jr.1300 I St., Ste. 1740Sacramento, CA 95814Colorado Attorney GeneralJohn Suthers1525 Sherman StreetDenver, CO 80203California Attorney GeneralEdmund G. “Jerry” Brown, Jr.1300 I St., Ste. 1740Sacramento, CA 95814In the salutation line, you would use:Dear Attorney General Brown:Please call NAPAA headquarters if you have any questions or needany guidance. We appreciate your efforts. Let your voice be heard!Connecticut Attorney GeneralRichard Blumenthal55 Elm St.Hartford, CT 06141-0120Delaware Attorney GeneralJoseph R. “Beau” Biden, IIICarvel State Office Bldg820 N. French StWilmington, DE 19801District of ColumbiaAttorney GeneralPeter NicklesJohn A Wilson Bldg 1350 PA Ave,NW Suite 409Washington, DC 20009Florida Attorney GeneralBill McCollumThe Capitol, PL 01Tallahassee, FL 32399-1050Georgia Attorney GeneralThurbert E. Baker40 Capitol Square, SWAtlanta, GA 30334-1300Hawaii Attorney GeneralMark J. Bennett425 Queen StHonolulu, HI 96813Idaho Attorney GeneralLawrence WasdenStatehouseBoise, ID 83720-1000Illinois Attorney GeneralLisa MadiganJames R. Thompson Ctr.,100 W. Randolph St.Chicago, IL 60601Indiana Attorney GeneralGreg ZoellerIndiana Government Center South- 5th Floor,302 West Washington StreetIndianapolis, IN 46204Iowa Attorney GeneralTom MillerHoover State Office Bldg.,1305 E. WalnutDes Moines, IA 50319Kansas Attorney GeneralSteve Six120 S.W. 10th Ave., 2nd FlTopeka, KS 66612-1597Kentucky Attorney GeneralJack Conway700 Capitol Avenue,Capitol Building, Suite 118Frankfort, KY 40601Louisiana Attorney GeneralJames D. “Buddy” CaldwellP.O. Box 94095Baton Rouge, LA 70804-4095Maine Attorney GeneralJanet T. MillsState House Station 6Augusta, ME 0433330 — Exclusivefocus Winter 2009/2010

Maryland Attorney GeneralDouglas F. Gansler200 St. Paul PlaceBaltimore, MD 21202-2202Michigan Attorney GeneralMike CoxP.O.Box 30212, 525 W. Ottawa St.Lansing, MI 48909-0212Minnesota Attorney GeneralLori SwansonState Capitol, Ste. 102St. Paul, MN 55155Mississippi Attorney GeneralJim HoodDepartment of Justice,P.O. Box 220,Jackson, MS 37205-0220Missouri Attorney GeneralChris KosterSupreme Ct. Bldg.,207 W. High St.Jefferson City, MO 65101Montana Attorney GeneralSteve BullockJustice Bldg., 215 N. SandersHelena, MT 59620-1401Nebraska Attorney GeneralJon BruningState Capitol, P.O.Box 98920Lincoln, NE 68509-8920Nevada Attorney GeneralCatherine Cortez MastoOld Supreme Ct. Bldg.,100 N. Carson StCarson City, NV 89701New Hampshire Attorney GeneralMichael DelaneyState House Annex,33 Capitol StConcord, NH 03301-6397New Mexico Attorney GeneralGary KingP.O. Drawer 1508Sante Fe, NM 87504-1508New York Attorney GeneralAndrew CuomoDept. of Law - The Capitol, 2nd flAlbany, NY 12224North Carolina Attorney GeneralRoy CooperDept. of Justice, P.O.Box 629Raleigh, NC 27602-0629North Dakota Attorney GeneralWayne StenehjemState Capitol,600 E. Boulevard AveBismarck, ND 58505-0040Ohio Attorney GeneralRichard CordrayState Office Tower, 30 E. Broad StColumbus, OH 43266-0410Oklahoma Attorney GeneralW. A. Drew Edmondson313 NE 21st StreetOklahoma City, OK 73105Oregon Attorney GeneralJohn KrogerJustice Bldg., 1162 Court St. NESalem, OR 97301Pennsylvania Attorney GeneralTom Corbett1600 Strawberry SquareHarrisburg, PA 17120Rhode Island Attorney GeneralPatrick C. Lynch150 S. Main St.Providence, RI 02903South Carolina Attorney GeneralHenry McMasterRembert C. Dennis Office Bldg.,P.O.Box 11549Columbia, SC 29211-1549South Dakota Attorney GeneralMarty J Jackley1302 East Highway 14, Suite 1Pierre, SD 57501-8501Tennessee Attorney GeneralRobert E. Cooper, Jr.500 Charlotte AveNashville, TN 37243Texas Attorney GeneralGreg AbbottCapitol Station, P.O.Box 12548Austin, TX 78711-2548Utah Attorney GeneralMark ShurtleffState Capitol, Rm. 236Salt Lake City, UT 84114-0810Vermont Attorney GeneralWilliam H. Sorrell109 State StMontpelier, VT 05609-1001Virginia Attorney GeneralBill Mims900 East Main StreetRichmond, VA 23219Washington Attorney GeneralRob McKenna1125 Washington St. SE,PO Box 40100Olympia, WA 98504-0100West Virginia Attorney GeneralDarrell V. McGraw, JrState Capitol,1900 Kanawha Blvd. ECharleston, WV 25305Wisconsin Attorney GeneralJ.B. Van HollenState Capitol, Ste. 114 EP.O.Box 7857Madison, WI 53707-7857Wyoming Attorney GeneralBruce A. SalzburgState Capitol BldgCheyenne, WY 82002Winter 2009/2010 Exclusivefocus — 31

Every customer has their owngreat reason for choosing Vertafore.Some appreciate that our family of solutions is so interconnected.Others are fans of the efficiencies they’ve gained with proven solutionslike the AMS 360 agency management system. And they’re all happy thatVertafore takes the time to help pinpoint and tailor the products thatare the perfect fit for any business—big or small, agency or carrier.We’d love the opportunity to help your business unleash its full potential.Find out more at iheartvertafore.com.“Vertafore makes things interconnect.I see that as a big advantage.Johnmichael P. MonteithChief Information OfficerParker, Smith & Feek”© 2009 Vertafore, Inc. Vertafore, the Vertafore logo and design, Unleash your potential, and the Vertaforetrademarks listed are owned by Vertafore, Inc. Other trademarks belong to their respective holders.32 — Exclusivefocus Winter 2009/2010

“AMS 360 frees us up. I love thatour agents have more time to sell.Susan HendricksVP/Office ManagerHart Insurance Center”AIM AMS 360 ®BenefitPoint ®CBDDoc ClientConnect ®Compliance Express FinancePro ®ImageRight ®InStar Phoenix PL Rating PolicyRater PremiumBill Prevail Network ®Prime Producer Express Producer Manager Producer Plus ®ReferenceConnect Sage ®Sagitta ®SirconEDGE TransactNOW ®TransitServer Winter 2009/2010 Exclusivefocus — 33

• 2010 EA National Conference & Job Fair2010 NationalEA Conference& Job FairWashington D.C.May 5-8, 201034 – Exclusivefocus Winter 2009/2010

2010 EA National Conference & Job Fair •The 2010 National Exclusive AgentConference (NEAC) will have specialmeaning for current and formerNAPAA members as we celebrateour 20th anniversary in the nation’scapital. As you’ll see below, thisconference is designed to tacklethe most pressing issues that faceAllstate agents today.This year, we’ve selected thespectacular Gaylord National Resortand Convention Center for our event.Characterized by its immense 18-story atrium, the Gaylord is the largestnon-gaming hotel and conventioncenter on the Eastern Seaboard.With 2,000 guestrooms, the GaylordNational Resort and ConventionCenter earned the coveted FourDiamond Award from AAA shortlyafter opening in 2008.The Gaylord is located at NationalHarbor, along the scenic PotomacRiver in Maryland. The bustling towncenter features pedestrian-friendlyplazas and tree-lined walkways.You’ll enjoy stunning views of theriver, downtown Washington DC andOld Town Alexandria. Step outsidethe hotel and you’ll find shoppingopportunities galore, as well as anabundance of eateries including finedining and casual cafés.The hotel is a short 15-minutedrive from Reagan National Airportand a 45-minute trip from Dulles orBaltimore Washington InternationalAirports. Shuttle service is availablefrom the hotel to Reagan National,Union Station or the Old Post Officefor a reasonable fee. Water taxiservice is also available to and fromOld Towne Alexandria.The HotelThe Gaylord National Resortand Convention Center201 Waterfront Street,National Harbor, MD 20745Phone: (301) 965-4000• Special NAPAA rate:$185 +$15 resort fee +tax• Hotel Reservations: Call theGaylord at 301-965-4000 and ask forgroup reservation code: NAPAA2010. Deposit required. 72 hourscancellation for full refund of deposit.• Limited number of roomsavailable at this rate — expires onApril 5, 2010• Preview of this year’s Four-Diamond Award hotel destination atwww.gaylordnational.comWinter 2009/2010 Exclusivefocus – 35

• 2010 EA National Conference & Job FairThe Conference Line UpNew Realities forAllstate AgentsListen as Dynamic Speakers coverTopics Essential to your Success• Agency Loyalty Index – Improvingyour score• Agency Valuation – what is myagency worth? How much shouldI pay for yours?• Sellers Beware – the pros andcons of self-financing the saleyour book• The $4 million agency operationsguide – don’t be held captive byyour own business• How to use your EFS and make itwork• Unlocking the secrets of AFSsales• Ideas to help you plan ahead,whether your future includesAllstate or not• Why failing to plan is planning tofail - avoid the costly mistake of“doing nothing”• What’s in store for you under theIdeal Agency model?• Keys to running multiple locations• Managing a $4 million book – howit compares to a $1.5 million book• Thinking about going independent?Learn the ins and outs• Keeping a positive attitude whenthe chips are downNew for 2010The 1st Annual Job Fair “Preparing for Life after Allstate”The “Ideal Agency” of the future isjust around the corner – are youwilling to invest the time, moneyand energy necessary to meet thecompany’s objectives of:• 1-3 locations?• $4 million in premium per location?• 4,000 PIF per location?• 1 licensed staff for every 1,000PIF?Currently, at least 90% of theagency force does not fit thecompany’s model. Agency ownerswill soon have two options:1. Buy one or more agencies inorder to meet the company’s $4million goal for each agency. Or…2. Sell your agency and move on.The company’s move to consolidateagencies has caused considerableconcern among Allstate agents.Many agents are turning to NAPAAfor direction. Deciding whether tostay or sell will be a tough choicefor many agents. Staying will likelyrequire significant long-term financialand personal commitments. Sellingand getting out now could meanaccepting a lower multiple for yourbook and leaving your customersbehind. The question is: “Whichchoice will ultimately provide youwith greater satisfaction, freedomand happiness?” That is a questiononly you can answer.To help agents who may be weighingthe “selling vs. staying” question,NAPAA will host its first annual JobFair for Allstate agents. This event isincluded in the conference packageprice, so there is no additionalcharge to attend. Agents interestedin learning more about independentagency options and other insurancerelatedopportunities will find plentyof choices awaiting them at theNAPAA Job Fair. This event is a mustfor every Allstate agent, whetherthey plan to stay or plan to sell. Noone knows what the future holds. Ifagents have learned anything fromtheir relationship with Allstate, it isthat things will continue to change.Whether you area buyer or a seller, thisconference will provide youwith more information andvalue than any other eventof its kind.36 – Exclusivefocus Winter 2009/2010

2010 EA National Conference & Job Fair •Please join us for our20th anniversaryconference.All Allstate agents, EAs andretired agents welcome.Enjoy the historical sights ofWashington DC, learn new ideasand gain fresh perspectives.You’ll be glad you did.The Vendor FairWhat’s missing inyour agency?The National EA ConferenceVendor Fair is an event you won’twant to miss. This year’s event is sureto impress conference attendees withits wide array of products and servicesfor agency owners. Most everyagent understands that streamliningagency operations is essential inorder to become an Ideal Agency.The exhibitors attending the VendorFair will explain how their products orservices can benefit agency growthor expansion. Unlike many tradeshows, the NEAC Vendor Fair allowsattendees ample time to meet andchat with each exhibitor.The NEAC Vendor Fair is includedin the conference package, so thereis no additional cost to attend. Thereis a lot to see and a lot to learn,so plan to attend now. If that’s notenough motivation, here are a couplemore reasons to attend:• Special Discounts and specialoffers for conference attendees only.• An old-fashioned Treasure Hunt.Participants will be entered in adrawing for a grand prize.• Other prizes will be given out byparticipating vendors.2010 ScheduleWednesday, May 5thArrivalsThursday, May 6thBusiness sessions, Job Fair, VendorFair, Welcome ReceptionHere’s your “To do” list:1. Book your flight – or Google your driving directions.Friday May 7thBusiness sessions, GolfTournament, free time, area toursSaturday, May 8thNAPAA Board of Directors meeting– attendees welcomeDepartures -Saturday or Sunday2. Reserve your room: The Gaylord National Resort and ConventionCenter. Phone: (301)-965-4000. Ask for group reservation code:NAPAA 2010.3. Fax your completed conference registration to (866) 627-2232 or mailit to: NAPAA, PO Box 7666, Gulfport, MS 30506.Winter 2009/2010 Exclusivefocus – 37

• 2010 EA National Conference & Job FairMore fun than a barrel of monkeys…the NEAC Scramble Golf TournamentGolfers: Don’t miss the fun, thrillsand camaraderie of our 4th annual tournament.This year the NEAC Scramble GolfTournament will be held at the NationalGolf Club at Fort Washington, MD.The National Golf Club is a maturecourse designed by Ted Robinson.The course features rolling terrainwith substantial elevation changes– you’ll be challenged to use everyclub in your bag. Don’t miss the viewof the Washington Monument fromthe 16th tee box.Preview the course atwww.nationalgolfclubusa.com.The fee will be $149 which includestransportation, cart, range balls, andrefreshments.Club rentals are available for $50per set.GOLFERSMUST BEREGISTEREDFOR THECONFERENCE BYApril 15, 201038 – Exclusivefocus Winter 2009/2010

2010 EA National Conference & Job Fair •2010 National Exclusive Agent ConferenceThe Gaylord National Harbor Resort and Convention CenterNational Harbor, MD – May 5-8Registration FormName: ______________________________________________________________________________________________________First M.I. LastAddress: ____________________________________________City: __________________________ State: ____ Zip: ___________Daytime Ph: ________________ Cell: ________________ Fax: __________________ E-mail: ______________________________Name preferred for conference ID Badge: __________________________________________________________________________Additional Attendee Name(s): ____________________________________________________________________________________Special Meal/Accommodations Request: ___________________________________________________________________________❑ Sign me up for Golf (Spouses or guests welcome)Total Number of players ________Handicap Player #1________ Handicap Guest/Spouse # 1________ Handicap Guest #2 _________Conference Attendees Price x Qty = Extended PriceAgent $149.00 x ___ = _____________Spouse or Non-Agent guest $99.00 x ___ = _____________Golf Tournament $ 149.00 x ___ = _____________Total $____________Method of PaymentTo register online, go to www.napaausa.org and click on the “EVENTS” tab at the top of the page.❑ Check enclosed for the total amount due: $_____________(Payable to NAPAA)Credit Card ❑ VISA ❑ MC ❑ AMEX ❑ DISCName on Account: _____________________________________________________ Amount to charge: $___________________Account Number: _______________________________________________________________ Expiration (mm/yy): _________Billing Address (numerals only) ________________________________________________________ Zip Code______________Authorization Signature: ___________________________________________________________ Security Code______________Fax Registration Form to: (866) 627-2232 orMail to: NAPAA – P O Box 7666, Gulfport, MS 39506Questions?Call toll free: (877) 627-2248Hotel Reservations*Call Gaylord National at 1-301-965-4000, ask for Group Reservation code: “NAPAA 2010”*Deposit required at time of reservation. Cancellations must be made 72 hours prior to arrival date, or forfeit deposit.*Special Group Room Rate $185 + $15 resort fee – Limited number of rooms at this rate – rate expires April 5, 2010.Winter 2009/2010 Exclusivefocus – 39

prospectingSell 26% More Policiesby Managing Your X-DatesAllstate agencies working with leadmanagement software have pioneereda sales process to easily follow-up and marketto prospects and existing clients usingX-dates, also known as “Win-backs.”Lost opportunities are an endangeredspecies for top-performing Allstate agencies.Agency owners are bolstering theirsales processes to automatically follow-upwith leads based off X-dates. As it stands,high performing Allstate agencies todayare closing an average of 15% of the newsales leads they buy or generate throughvarious marketing channels. But what dothese agencies do with the other 85% ofsales leads they are unable to close? Theydon’t give up, as many lower performingagencies do. Most successful agents establishin-house follow-up systems of theirown or utilize cutting edge technology tofacilitate their prospect contact programs.The important thing to remember is thatleads cost money, so preserving X-dates isalways a good idea because, until the saleis made or the prospect tells you not tocontact them again, the lead can alwaysdevelop into a sale.A new analysis recently conducted bya leading management software pioneerconcluded that, on average, high performingAllstate agencies gained 26% ofnew business by nurturing prospects andcontacting them near their policy renewaldates. Successful agencies leveragedthese second, third, or fourth opportunitiesto successfully sell more policieswithout additional investment.Insurance is a commodity that mostpeople will purchase throughout theirlifetime. With insurance policies renewingevery 6-12 months, there is alwaysan opportunity to win-back business youmay have initially lost. There are manyreasons why consumers switch insurancepolicies. Reasons for switchingcompanies include rate changes, coverageneeds that the current carrier cannotfulfill, poor customer service experiences,changes in personal financial situations,or an effective advertising campaign bya competitor. There are two reasons whyAllstate agents should remain vigilant atall times. First and foremost is becauseyour customers may be on the verge ofswitching, which is why customer reviewsand other customer contact programsare vital to your retention and ALIefforts. Second, is because some of yourcompetitors’ customers are also on theverge of switching, but you’ll never knowwho they are unless you re-contact yourX-dates. Therefore, if you are not carefullytracking when these X-dates approach,you are simply turning your backon these consumers while they are in theprocess of looking for a new insurancepolicy. That is why having a lead nurturingprocess in place is key to systematicallyfollow-up with X-dates.Many consumers change insurance carriersfrequently and an even higher percentagecompare carriers on the Internet.Added together, they represent a vast numberof consumers who are actively shoppingfor insurance, typically around their policyrenewal date. It is critical for any agencyto use the right tools to ensure that theseconsumers receive timely and relevant insurancemarketing from your agency. Withthe average agency closing around 10% ofnew insurance sales leads, this leaves aneven a larger pool of leads being lost – andnever to be found again, unless proactivefollow-up measures are established.The problem most Allstate agents face,when losing a deal to competition, is thatthey do not have a sales lead managementsystem to notate the X-date, automaticallymarket to prospects aroundthis date, and prompt agents or producersto follow-up. Without knowing andleveraging this critical piece of informationand without the right lead managementsolution, it is virtually impossibleto market and communicate to such asignificant number of leads. Without theright tools, it is impractical to properlyleverage X-date information.The most successful agencies employ asimple process to win-back these deals:1. Track the X-date for every lead2. Send scheduled emails leading intothe X-date to remain front-of-mind3. Follow-up each email with a call tomaximize the success of your email communicationsHaving a lead management systemand following a rigorous X-dating processwill help the average Allstate agencysell at least 26% more insurance policieswithout buying additional sales leads.Leads360 is the market and technologyleader in Web-based sales lead managementsolutions. Leads360 currently managesmore than 20,000,000 leads and servesover 4000 clients in the most competitivebusiness-to-consumer industries. For moreinformation, visit www.leads360.com.40 — Exclusivefocus Winter 2009/2010

agency financing tipsThe Driving Factors of Allstate Agency ValueWhat Story Is Your Agency Telling?BY PAUL CLARKECapitalismI think it is safe to state that the goalof any business owner is to maximize theamount of money they make. Certainly, weall want to have a good reputation withinthe market we serve, provide a valuableservice to our clients and enjoy our work,but we also want to make money.The ultimate prize for Allstate agencyowners is the end sales price received fortheir agencies—the eventual cashing outfollowing 5, 10 or 25 years of sweat andhard work. At some point in time, we allask ourselves, “What price would my agencyfetch today if I retire or decide to sell?”Granted, in the transfer of any assetthere are factors that affect the value of asingle agency that are out of the owner’scontrol. It may take some time to find abuyer who’s a good fit in terms of experience,credit quality and the capacity torepay the debt associated with purchasingthe business.So, for the purpose of this article, let’sconcentrate on the things we can control—that primarily being the quality of your bookof business nearing the time of sale.Market Value vs. Economic ValueBefore we address the factors that drivethe value of Allstate agencies, I think itis appropriate to address how we getfrom what usually begins as a handshakeagreement on price to closing and fundingthe agency acquisition transaction.Once a willing buyer and a willing sellerhave agreed on a price for an Allstate agency,market value has been set. However,money must be brought to the table for atrue transfer of market value to take place.In most cases, a third party lender is introducedto assist in facilitating the transfer ofmarket value from seller to buyer.The lender brings to the table a uniqueperspective as to the degree of fit betweenthe buying agent and agency in question.The net result of this process is the determinationof the loan amount and otherstructural elements of the transition thelender views as necessary in ensuring thesuccessful repayment of the loan. Of criticalimportance in determining a maximumloan limit is the economic value, or thelevel of support that an agency’s historicalcash flow brings to the transaction.To the extent that the market value(the price agreed upon by buyer and seller)for an Allstate agency exceeds its economicvalue (the value the cash flow willsupport), the difference represents thevalue a buyer has decided to pay for thepotential future earnings (i.e., earningsnot evidenced in the agency’s historicalperformance) of the agency.For buyers, the payment of a premiumfor agency potential is reasonablebecause their potential future return ontheir agency acquisition investment isunlimited, and thus offsets the risk theytake in paying the premium.For lenders, financing this premiumportion of the total purchase price isequally unreasonable because their futurereturn on the agency acquisitionfinancing transaction is fixed at their annualrate of interest charged on the loan,which offers no upside to offset the risktaken in financing the premium portion.The net result is that the portion of thepurchase price for an Allstate agency thatexceeds its economic value will have tobe paid by either a cash down paymentby the buyer or a seller note, or a combinationof the two.Unique IndustryAllstate agents are in a unique position,having a vibrant market of availablefinanciers willing to assist in the transferof value from seller to buyer. This vibrantlending market is a testament to a varietyof factors including:1) Allstate Insurance represents thebuyer of last resort, essentially setting afloor value of agency purchases at 1.5Xwith the Termination Payment Provision.2) Allstate Insurance, being a singlepayorsystem, allows banks to easily controltheir collateral—the cash. This is indirect contrast to independent agentswho have various contracts with variouspayors, making it virtually impossible forlenders to control the flow of cash in andout of the business.3) The general quality of the individualwho pursues this line of business, and thepre-screening by Allstate Insurance, producesa high-quality buyer pool for thoselenders that choose to participate in theAllstate niche.Other industries, such as financial planning,may only get 30% of their businessvalue at closing due to a lack of an organizedor mature lending environment.Without the current competitive lendingenvironment that Allstate agents now enjoy,a seller could either be forced to takeon all or part of the risk in the form of aseller note, or accept a reduced price dueto a lack of available bank financing.Winter 2009/2010 Exclusivefocus — 41

Driving Forces of ValueHaving started the Allstate AgencyValue Index in 2008 in direct responseto the age-old question “What are booksselling for these days?” I have taken a lotof care to ascertain some of factors thatdrive agency values:• Agency Size: The first and most importantfactor in driving the market valueof Allstate agencies is size. The followingchart was detailed in the Second Quarter2009 Allstate Agency Value Index:tion is 85% (essentially 15% attrition),you need to sell $300,000 in new businessjust to break even. Likewise, if yourretention was 95% and produced thesame amount of new business, you wouldend the year at $2.2 million in earnedpremium. So instead of simply “breakingeven,” you would enjoy 10% growth!Buyers of Allstate agencies have historically,and continue to, place a veryhigh premium on agency retention.• Profitability: I’m not talking aboutmuch to spend on marketing and staffingcosts; however, all agencies are not createdequally in the profitability department.Again, if you have two agencies, allthings being equal, would you rather pay$1,000 a month for rent or $5,000 a monthfor rent? Would you rather purchase anagency where the seller overpays his staffand does not monitor their performance orwould you rather purchase an agency witha quality staff in place making a fair wagein exchange for quality performance?Comparative ModelAGENCY “A”AGENCY “B”AGENCY SALES PRICE $ 330,000 $ 925,000PRICE MULTIPLE 2.00 2.50AGENCY REVENUES $ 165,000 $ 370,000AGENCY OVERHEAD (35%) $ 57,750 $ 129,500PRINCIPAL AND INTEREST PAYMENT* $ 49,629.36 $ 139,112.64CASH FLOW TO BUYER $ 57,620.64 $ 101,387.36* ACQUISITION LOAN FOR 100% OF THE PURCHASE PRICE REPAID OVER 10 YEARSAT A RATE OF 8.75%As seen in the comparative model shownabove, the same buyer will realize greaternet personal earnings by buying agency “B”even at a considerably higher multiple.• Retention: This is an easy one.Imagine your Allstate agency has $2 millionin earned premiums. If your retenprofitabilityto Allstate Insurance here,despite the fact that an agency’s loss ratiois important when a buyer considers purchasingan agency. What I’m talking aboutis the amount of money an agency ownerwill make. Certainly, each individual buyermakes his or her own decision about howConclusionI hope this article has shed some lighton some of the key driving factors thataffect agency value. It is always importantfor agency owners, especially thosenearing the eventual sale of their agencies,to take care in keeping the performanceof their agency at top levels, especiallyin the areas that matter most toagency buyers.Think to yourself, “What story is myagency telling?” If you allow your performanceto slip for twenty-four months priorto selling, there is a high likelihood thatthis will be interpreted as an indication ofa poor agency. At the very least, you willlose some agency value, and it may evenrender your agency unfinanceable.Paul Clarke is Executive Vice President andChief Operating Officer of PPC LOAN.Paul and his staff can be contacted at (800)456-2779 or you can visit his company onthe web at www.ppcloan.comTerminated or threatened with contract termination?If you have received a 90 notice of termination of your contract, or have sold your agency because of the threatof an impending termination, please respond to this notice promptly.Ron Harper, editor of the Runningclock email publication, and a plaintiff in the ongoing Romero vs. Allstate lawsuit,is collecting first person data from anyone affected by the actions of Allstate management.Please send your name, state, hire date and termination date to runningclock@aol.com. Please also includewhether you sold or had to accept TPP, as well as the details of your departure (terminated vs. sold because ofthe threat of termination). Your information will not be published, but is necessary for internal purposes.Time is of the essence. Please contact Ron immediately by email. Questions? Call NAPAA at 877-627-2248.If you know of other current or former agents that are similarly affected,please forward this information to them.Remember, time is of the essence – please act now.42 — Exclusivefocus Winter 2009/2010

As a nationwide provider of agency capital since 2000,we have processed over $250 million in loan bookingsfor hundreds of Allstate agency owners just like you.With PPC LOAN, you can count on:They understand agent needs and do all theycan to get us the funds we need to run ourwith and fast — I couldn’t ask for anything else.”Call us today to get yourloan process started!(800) 456-2779ppcloan.comallstateppcloan.comPaul ClarkeSteven KemperKyle CrawfordRelationship ManagerTabitha ChisumAshley MarcelleClosing CoordinatorWinter 2009/2010 and Client ServicesExclusivefocus — 43

career pathsTo Be Or Not to Be?BY JEFF WILSONThe question that most agents inthe captive world seem to be askingthemselves is whether or not beinga captive agent makes sense for them inthe insurance world today. Captive carriersappear to be changing the rules atan extraordinarily pace. Volume, pricing,carrier appetite, financial services andcompensation programs, among othercrucial topics, are seemingly in a periodof being redefined by the captive carriers.What ‘was’ apparently ‘is’ no more.Commitments, agreements and understandingsbetween the agents and thecarriers, who the agents once trusted, arenow being frayed at an alarming pace.What an agent could write yesterday canno longer be written today. Changing therules is difficult to deal with, particularlyin an economic environment as challengingas the one we find ourselves in today.While changing the rules is not always abad thing, it appears that when a captivecarrier changes the rules it is always totheir benefit and never the agents’.Clients, having no ability to understandthe relationship between carrier and agent,are feeling the brunt of the changes. Noncompetitiveproducts and pricing are causingthem to search for alternatives. Traditionallong-serving relationships betweenclient and agent are disappearing. Captiveagents are losing clients at an alarmingrate while pressure from the carriers toproduce more is creating an unrelentingdichotomy – can producers survive withinthe captive model or should they considerthe alternative of becoming an independentagent?While going the independent agentroute certainly has its challenges, the op-I Want to Help You sell More AFS!I Have Some Tipsthat Can Help You Achieve Your Expected Resultsthis Year. Learn from a Pro when You Join NAPAA.Ranked #1 in AFS Production Credit in4 of the past 5 Years.To Learn More Contact Gerry Flores(563) 564-1800GERBEAR_61@HOTMAIL.COM44 — Exclusivefocus Winter 2009/2010

portunities can far outweigh the problemsof staying in the captive environment. Forindependents, obtaining and then maintainingcarrier contracts is the most difficultchallenge and, in some cases, hard toovercome. Identifying, defining and researchingagency management systems,software support needs, and acquiringthe knowledge and training necessary tocompetently run an independent agencycan be just as daunting as how to marketthe agency and gain visibility in a crowdedmarketplace. Most of these issues canbe resolved with a resource that providesprofessional assistance.Aggregators, consolidators, and franchisorshave become a popular and valuableanswer for agents looking to moveinto the independent environment. Theseentities supply the carrier contracts thatin most cases provide the agent and theconsumer with multiple product andpricing choices, a luxury not available tomost captive agents. Many of these entitiescan also provide the agency managementsystem, software support, training,and assistance with placing commercialrisks. Some also allow participation inthe carriers’ bonus plans and overrides,as well branding opportunities that helpcreate visibility for marketing purposes.And perhaps most significant, these entitiescan also eliminate the issue of anagent having to meet minimum productiongoals in order to maintain carriercontracts.The independent insurance agencyworld isn’t for everyone. It requires savvyagents with good business sense who desireto control their own destiny and arewilling to take the time to learn the independentagency model’s intricacies —because it is a different world than thatof the captive agent. Captive companiesare very restrictive in what they can offerto both agents and consumers, but theydo provide agents a basic framework forindividuals who don’t have insurance experienceor who don’t have the financialmeans to start a business on their own.The independent world can be moreproductive, enjoyable, and financially rewardingthan a world where mandatoryquotas and other control issues get in theway of productivity and personal happiness.In today’s environment, the types ofentities described above may be the bestsolution for the right agent who is lookingfor long-term solutions in the insurancebusiness.Jeffrey L. Wilson is Executive Vice Presidentof Global Green Insurance Agencies /Equity One Franchisors. You can reach himat (877) 452-5476 or jwilson@equityonefranchisors.com.InsuranceProfessionalsIS IT TIME TO BECOMETHE OWNER OF YOUROWN INDEPENDENTINSURANCE AGENCY?!* Are you locked with a captive andall of the mounting restrictions?* Are you tired of trying to write thebusiness ‘they’ want you to write?* Are you just tired of workingfor someone else?IF YOU ANSWERED ‘YES’TO ANY OF THESEQUESTIONS,THEN IT’S TIME TOCONTACT EQUITY ONE!Our Global GreenInsurance Agencieshave access to: Multiple Carriers forEVERY Insurance Need Software Support State of the Art AgencyManagement System Bonus ProgramCall or Email us todayfor the Opportunity ofa Lifetime!636-536-5005 orToll Free 877-452-5476ask for Jeff Wilsonjwilson@equityonefranchisors.comVisit us online to see ourgrowing list of carriersGlobalGreenInsuranceOnline.comTravelers Insurance Company's2008 Agency of the YearWinter 2009/2010 Exclusivefocus — 45

technology tipsTools to Help Grow Your AgencyBY JACKIE FUNKIn today’s competitive world, Allstateagents must make it a priority to stay intouch with their customers and engagepotential customers using the method ofcommunication that they prefer. Whilenothing can replace face-to-face conversations,it’s important to incorporatenew, cost-effective and impactful tools toengage your audience.Develop a Blog to Create aConversation with Current andFuture CustomersMany small business owners, includinginsurance agencies just like yours,are hesitant to start a blog. But blogscan offer you a great way to educate yourcustomers, as well as the general public.Here are some steps that will assistyou in developing and publicizing youragency blog:• Select a blogging applicationThere are lots of free tools available toget your blog up and running. A hostedblog service—such as Word Press, Type-Pad or Blogger—can help you get startedcheaply and easily.• Launch your blog with at least fivequality posts – To give your blog someimmediate presence, it’s important totake the time to develop at least fiveposts before you take your blog live. Everyblog has to start somewhere, but itpays to plan ahead.• Submit to directories - Onceyou’ve got your initial content up, submityour blog to a few directories. A fewgood places to start include: Technorati,BOTW, Blogged and Bloggapedia .• Get the word out to everyone youknow – Don’t be shy about letting theworld know about your blog. Developa list of clients, friends, family, businesspartners and followers. Ask them to introduceand promote your blog to theirnetworks.• Include a link to your blog in youremail signature – By including a link toyour blog in your email signature, you’re creatingan opportunity to drive people back toyour site with every email you send.• Get some comments going ASAPIt’s important to create a conversationon your blog. To get the ball rolling, askfriends and family to read what you’veposted and provide some commentary.• Consider buying some advertisingBid on a few key phrases or even buysome traffic from Stumble Upon, a content-discoveryservice. It can be hard toget your content in front of the right audienceand advertising can really jumpstartyour efforts.There are myriad of other approachesyou can utilize when it comes to blogging.Monitor other blogs that are meaningfulto your agency, your clientele andyour community. Commenting on others’blogs, offering to post content as a guestblogger on another site and/or allowingothers to be guest bloggers on your sitecan also help your marketing efforts.Not using Twitter yet? Why not?Twitter has been the buzz for the lastseveral months due to media hype and itsusage by celebrities. But many “averageJoes” still haven’t taken the plunge. I oftenget questions from friends and colleaguesabout whether it’s really worth the effort.I say, unequivocally, “YES,” because inbusiness, Twitter allows me to:1. Listen and learn – By “following”people who talk about subject matterthat is important to me, I can read anddigest new information quickly.2. Build relationships with customers– I monitor Twitter all day long. Thereality of Twitter is that friends and foescan post whatever they like…wheneverthey like. As a marketer, it’s very importantfor me to monitor comments aboutour company, brand and service. ThroughTwitter, I can see what’s being said andoffer customer service, thank people for46 — Exclusivefocus Winter 2009/2010

positive mentions or quickly respond toconcerns as they arise.3. Track competitors – All of my competitorstweet as well. And so do their customers.I can stay on top of product/servicelaunches, announcements and promotionsright from Twitter. Furthermore, I can seeif anyone is having customer service issuesor doing a great job of satisfying their customers…rightfrom Twitter.4. Identify prospects – Twitter is agreat way for people to ask for a productor service. And many do. While prospectingis way down the list of reasonswhy I use Twitter, I find a gem every nowand then, and can connect directly to seeif the prospect would like to engage withme or another member of our team.Setting up a Twitter account takes lessthan 5 minutes. Even if you’re not sureTwitter is for you, there’s no harm inchecking it out.Utilize Local Search Listings toEstablish an Improved OnlinePresenceYou can quickly and inexpensively increaseyour agency’s online presence byadding your business to search enginesand directories so it’s easy for both currentand prospective customers to find you.• Local Listings - As you probablyknow, Google leads the market in searchengine traffic these days. By simply addingyour agency to Google Maps andGoogle Local, you can ensure your agencypops up when individuals performGoogle searches for insurance in yourWinter 2009/2010 Exclusivefocus — 47

area. The same goes for Yahoo! Local.Other sites—such as WhitePages.comand SuperPages.com—offer free and enhancedlistings as well.Take Advantage of Facebook forSocial NetworkingMost everyone has at least heard ofFacebook. Many of you (or members ofyour family) are probably using it socially.Facebook allows users to connect andshare information in a variety of waysand is currently the most popular socialnetworking site. It is a great way to connectwith friends, family and co-workers.It is also a terrific way for businesses toconnect with customers and prospects– and create a web presence. Need a fewmore reasons?• It’s Viral – Once a few friends become“Fans” of your agency, others will follow.• It’s Where the Young People AreYou have to reach prospects, both youngand old. And yes, many of us who aremiddle-aged and older have Facebookpages. But it’s an excellent tool to reachthe younger crowd…your future clients!•It’s Free – There’s no cost associatedwith setting up a Facebook page for youragency. All it takes is a little time andforethought to get going. Most likely,you have plenty of content to post. In addition,Facebook doesn’t require frequentpostings like Twitter and it’s up to youhow much you use it. I encourage customersto make contact with us throughour Facebook page and can attributeleads to our Facebook presence.For ideas on how to get your Facebookpage started, log into Facebook (or asksomeone who already has an account todo so) and simply type in “Allstate” in thesearch box. Check out Allstate’s corporateFacebook page (13K+ fans) or any otheragencies that have set up pages. Anothergreat resource is Facebook’s very own“Facebook Marketing Solutions” page.Simply log into Facebook and type in“Facebook Marketing Solutions” in thesearch box to get started.Use Your Phone System to SetYourselves Apart from the PackAs the chief marketer for a hosted PBXand VoIP service provider, I’d be remiss ifI didn’t mention that your phone systemcan and should help you promote youragency. It’s often ignored as a sales andmarketing tool when it can add significantvalue. Consider this:• Auto Attendant – You can customizeyour greeting on your auto attendantto brand your business, provide importantpolicy information, market new productsand services, point callers to new contenton your blog or Facebook page…whateveryou’d like. You can choose to implement anelaborate auto attendant, a basic customtransfer message or just a simple greetingfrom your agency. Your auto attendant alsoallows you to route all calls to the properindividual or department, ensuring yourclients are connected right away.• After Hours Call Forwarding to theCIC– After hours call forwarding to theCIC ensures that your clients can get accessto Allstate day or night. It’s importantto make sure the phone solution you choosemeets Allstate’s corporate standards. Additionally,if you do miss a call because a currentor prospective client calls after hours,a hosted phone service offers call logs andreporting so you can see any call you missed.This allows you to come in the very nextmorning and follow- up to make sure theindividual’s needs were met. It’s a great wayto show your service orientation.Texas Agents – Join Our TeamAre you considering a career as a professional independent insurance agent?Would you like to be in control of your income?Do you want to be able to serve the full range of your client’s insurance needs?Do you want to have a trusted partner who will invest in your future and allow you toreach your full potential?• No start-up or monthly fees to join• Errors and omissions insurance• Have a financial interest in your book of business• Expansion opportunities• Access to quality personal and commercial lines products• Agency management systemWe look forward to discussing branch location opportunitiesin selected areas of Texas.For further information contactCarl Shockey @ 972-978-8881cshockey@paragoninsagencies.comwww.paragoninsagencies.comWhat are you waiting for? Thetime is now!Whichever tactics you choose, themost important takeaway for growingyour agency is that you must continuallylook for new ways to expand yourreach and create more touchpoints withyour customers and prospects. All of thetools mentioned in this article are eitherfree or very affordable. With some focusand an investment in sweat equity, theserecommendations can make a significantimpact on your continued success.Author: Jackie Funk is the Director of Marketingfor Aptela, a leading provider ofhosted VoIP service for small and mediumsizedbusinesses. Contact Jackie directly atjfunk@aptela.com. For a complete list of theresources mentioned in this article, pleasevisit www.aptela.com/insurance-marketing-tools.48 — Exclusivefocus Winter 2009/2010

You’ve workedhard buildingyour bookof business.Make that book work hard for you.Your TPP is a hidden asset that manybanks won’t lend against. A loan fromOak Street Funding unlocks that valueso you can leverage assets now to helpyour business grow organically or throughacquisition. Why borrow against yourhome or retirement when your TPP isthe answer? Partner with the consistentindustry leader to get the capital you needto achieve your financial goals.» Allstate agents may qualify for additionalsavings with our Gold Program –Call today! NEW» Fast, hassle-free loan processing withinteractive website portal NEW» Get the cash you need to upgradetechnology, recruit top producers, acquirean agency, consolidate business debt,and more!» Flexible terms and convenientpayment options» Put your TPP to work for you!Your Ideas. Our Money.1-866-OAK-FUND(1-866-625-3863)Mention promo code ALLSTATE09for a free, no-obligation consultationwww.oakstreetfunding.comLoans and lines of credit subject to approval.CA residents: Loans made pursuant to a Department of Corporations California Finance Lenders License.Winter 2009/2010 Exclusivefocus — 4920124-0908

investingIs the Glow of Gold for Real?BY MARKUS BRUDERERHardly a day goes by without me seeingat least one commercial on TVtouting the “safety” and “enduring value”of gold and encouraging me to call aninvestment company that will send memore information how to invest in gold.During the last 12 months the price ofgold has again approached all-time highsat more than $1,000 an ounce. After thereaching this psychological mark, someanalysts quickly predicted that it wouldreach $2,000 soon.The investment environmentand time framesDuring the last 40 years there weretwo decades where gold was a better investmentthan the stock market. Duringthe 1970s the various oil shocks (197314.000012.000010.0000& 1975) led to high inflation. In thisdecade, the subprime crisis followed bythe failure of Bear Stearns and LehmanBrothers and the resulting credit crisishas brought a deep and sharp economicrecession and much uncertainty.Below are charts comparing the priceof gold with the stock market representedby the Dow Jones Industrial Index (DJII)with starting values of 1.0000 during the1970s and since the start of the year 2000.During the 1980s and 1990s however,the stock market far outpaced gold,which lost value in both decades. Pricestability improved dramatically and thegeneral economic environment wasmarked by unusually long expansionsin the 1980s as well as the 90s. Interestrates, which had spiked to very high levelsat the beginning of the 1980s, fell inthe ensuing years, supporting these periodsof economic growth. Even after thecrash in October 1987, when stocks fellmore than 20% in two days, the marketrecovered less than two years later.Even during the positive periods forgold, there were volatile phases with substantialsetbacks and drops of more thanSo, should we invest ingold right now?What are the reasons people are interestedin owning gold?The two reasons mentioned most oftenare fear of high inflation and generaleconomic and/or political uncertainty.Sometimes, people indicate theyare concerned about a breakdown ofthe economic system with the resultingchaos and traditional money not beingaccepted as tender anymore.8.00006.00004.00002.00000.00001/2/19705/2/19709/2/19701/2/19715/2/19719/2/19711/2/19725/2/19729/2/19721/2/19735/2/19739/2/19731/2/19745/2/19749/2/19741/2/19755/2/19759/2/19751/2/19765/2/19769/2/19761/2/19775/2/19779/2/19771/2/19785/2/19789/2/19781/2/19795/2/19799/2/1979DJIIGold50 — Exclusivefocus Winter 2009/2010

20%, including 53.24% (Sep. 1980-June1982), 40.20% (Dec. 1974-Aug. 1976),39.20% (Feb. 1982-Feb. 1985) and21.43% (March 2008-Nov. 2008).Like most other investments, gold isnot the predictable, “slow and steady” or“safe” pick one may be looking for.4.00003.50003.00002.5000Are the factors in place for acontinued rise of gold?With the implementation of the bailouts,stimulus programs and possibility ofsubstantial new costs due to health care reform,there are many concerns that a skyrocketingnational debt will lead to highinflation in the not-so-distant future.The failure of Bear Stearns and LehmanBrothers, the takeover of WashingtonMutual, the rescue of Merrill Lynch andthe massive support to Citigroup andAIG by the U.S. government have led toa lot of doubts regarding the stability ofthe financial system.The U.S. is running dramatic budget,trade and current account deficits. As aconsequence, the U.S. Dollar has weakenedsubstantially. There is a lot of talkabout its status as a reserve currency andwhether investors are willing to continuebuying Treasuries to finance these deficits.China, Japan and other countries areholding large amounts of such securitiesand a change in their policies would havebig consequences.2.00001.50001.00000.50000.00003.50003.00002.50002.00001.50001.00000.50001/3/20005/3/20009/3/20001/3/20015/3/20019/3/20011/3/20025/3/20029/3/20021/3/20035/3/20039/3/20031/3/20045/3/20049/3/20041/3/20055/3/20059/3/20051/3/20065/3/20069/3/20061/3/20075/3/20079/3/20071/3/20085/3/20089/3/20081/3/20095/3/2009DJIIGoldDJIIGoldAre there alternatives to gold?Treasury Inflation Protected Securities(TIPS) have become more and morecommonly used over the last few yearsand there are various mutual funds andExchange Traded Funds (ETF) available.The open issue is that none of theseinvestments have yet been tested in periodsof high inflation.Other commodities such as base metals,wood and other natural resources aswell as agricultural products should alsoprovide some protection against inflation.These sectors can also be coveredvia mutual funds and ETFs.Real estate is also considered a usefulcomponent of inflation protection andREIT’s or REIT ETFs as well as mutualfunds are available. However, if youalready own real estate outright you mayhave enough exposure already.0.00005.00004.50004.00003.50003.00002.50002.00001.50001 1.00000.50000.00001/2/19805/2/19809/2/19801/2/19815/2/19819/2/19811/2/19825/2/19829/2/19821/2/19835/2/19839/2/19831/2/19841/2/19905/2/19909/2/19901/2/19915/2/19919/2/19911/2/19925/2/19929/2/19921/2/19935/2/19939/2/19931/2/19945/2/19845/2/19949/2/19849/2/19941/2/19851/2/19955/2/19855/2/19959/2/19859/2/19951/2/19861/2/19965/2/19865/2/19969/2/19869/2/19961/2/19875/2/19871/2/19975/2/19979/2/19871/2/19885/2/19889/2/19971/2/19985/2/19989/2/19881/2/19895/2/19899/2/19899/2/19981/2/19995/2/19999/2/1999DJIIGoldWinter 2009/2010 Exclusivefocus — 51

Some practical considerations ofowning goldThere are a number of ways to owngold, including taking physical delivery.Bars or coins are the usual mediums andit is important to have them certified. Itthen has to be stored either in custodywith a bank or in a personal lock boxwhich creates ongoing costs, such as custodyfees or rental fees.Another way would be to buy the SPDRGold Shares Trust (Ticker symbol GLD);an ETF which owns physical bullion inbank vaults that is regularly audited. Aswith many other ETFs, the expense ratiois lower than for many comparable mutualfunds. Over time this advantage can makea substantial difference.An indirect exposure to gold can be createdthrough buying gold mining stocksor a mutual fund that invests in such equities.These vehicles generally track theprice developments of gold. There are,however, specific parameters of thosecompanies which will probably lead tovariations from the underlying gold price.Physical gold is an impractical solutionfor a “doomsday” scenario when regularcurrency, i.e. banknotes and coins, isnot being accepted anymore. Even thesmallest gold coins would run out quicklywhen one has to exchange them forloaves of bread.A word on Exchange TradedNotes (ETNs)Exchange Traded Notes do not havephysical possession of the underlying investment(gold, silver, commodities, etc.) but areissued by banks making them essentiallypromissory notes or unsecured debt. As longas the bank is sound there is no problem.However, when one fails investors may beleft as unsecured creditors in the pool withmany others. Lehman Brothers had someETNs outstanding when it failed and theyhave now been delisted.Investment conclusionAll in all, there is enough uncertaintyin the financial markets to warrant someexposure to investments that serve ashedges against inflation and uncertainty.However the environment has to bemonitored very carefully since trendscould be changing rather quickly.Since we have seen substantial volatilityover time in the financial markets, I wouldrecommend a diversified approach to youroverall investment strategy. The other traditionalasset classes such as cash, fixedincome and equities should still be a partof an overall investment strategy. Factorssuch as the investment horizon, risk tolerances,tax situation and liquidity requirementscan have a substantial impact. It isimportant to discuss all of those aspectswith a well qualified financial advisor thatyou have confidence in.Markus Bruderer is vice president of UNF-CU Financial Advisors. He has more than 20years of private banking experience domesticallyand in Europe. Prior to joining UN-FCU, he was with Bank Julius Baer & Co.Ltd, N.Y. and Deutsche Bank, N.Y. He canbe reached by phone at (212) 324-3902 or byemail at mbruderer@unfcuadvisors.com.RHINOTEKProviding Premium Imaging Supplies for Over 28 Years!RHINOTEK is a preferred NAPAA supplier for ink and toner products.Great Savings - Group Buying DiscountsGuaranteed Quality - Higher Page YieldsFree Shipping - 30 Day Net TermsHelp the Environment - Save the RhinoWe provide our customers with value every step of the way!• A vast selection of 6500 compatible and OEM imaging supplies• Over 28 years as an industry leader of premium inkjet and toner supplies• High-quality output, vivid colors and exceptional yields• Compelling price to performance value• A knowledgeable sales team focused on your growth through savingsTRYING TO SAVE MONEY BY MAKING WISE PURCHASING DECISIONS?Part Number Product Description NAPAA PriceNA13MS-Q5927A RHINOTEK CERTIFIED PRE-OWNED HP LaserJet 1320 with 13 Month Warranty $255QH-1320 RHINOTEK Compatible HP Laserjet Black Toner Cartridge - 7000 yield $72Call your representative today at (800) 695-RHINO for special NAPAA pricing on all Rhinotek branded ink, toner and maintenance kits.Don’t forget to ask about our complete line of Certified Pre-Owned New Life Printers.Rhintotek Computer Products, Inc. 2301 E. Del Amo Blvd., Carson, CA 90220 (800) 695-RHINO www.rhinotek.com/napaa.htm52 — Exclusivefocus Winter 2009/2010

SAre you a Technology Dinosaur?Tips on Converting to a Paperless Officeince the late 1980s many Fortune 500companies have adopted paperlessphilosophies as the modus operandi fortheir business operations. Twenty yearslater, many business owners still believethat going paperless is risky and only forthe pioneer. The definition of a pioneeris to “lead the way, break new ground,initiate, establish, prepare the way.” Accordingto the facts and figures releasedby several data collecting agencies in ourcountry, the paperless revolution is pastthe pioneer stage. It is considered maturetechnology and mainstream. Are yousurprised? Keep reading.Consider that scanners have been onthe market since 1957. And yes, thetechnology has improved significantlyover the years. They are quicker, smallerand more user friendly. But think aboutit; unless someone invents a scanner thatmakes the paper literally fly into it andscan itself, there is very little that canhappen that will improve this technology.It is now considered to be maturetechnology.Since it is unlikely that papers will flyinto scanners of their own accord in ourlifetime, why not embrace the paperlessconcept now? Don’t be the ‘last on theblock’ or you will be left behind in thedust while your peers and competitorsare becoming more and more efficient. Ifyou have a multi-function copier/scannersitting in your office, why not use it toits fullest potential? Instead of worryingabout the technology not being matureenough, or not wanting to be ‘the firston the block until the bugs have beenworked out,” why not jump in now beforeyou get left behind?Cost reduction and efficiency is whatevery organization needs in order to survivein these uncertain economic times.technology tipsBY ALITA MARLOWE BLUFORD AND TODD MCINDOOAccording to the statistics, data storagegrows at 80% per year. It is cheaper tostore and archive data electronically. Paperlesstechnology enables you to experiencethese cost saving measures in manyareas of your business…especially if youalready have a scanner in your office. It’sless expensive and more efficient, yetmany business owners are still reluctant tomake the switch, even though they realizeit will be best for them in the long run.One of the fears that people cite as areason for not converting is the prospectof losing documents and not knowinghow or where to locate them. Not toworry. There are excellent indexes andsearch features that will help you findthem if you can even remember just oneword you might have used to name thedocument. In addition, there are featurescan even search the text within a document.So all you really need to rememberSPEEDYSOLUTIONSis one of the words on that piece of paperto find it. Does that help? If you aren’tsure, do a mini project. Scan 20 nonimportantdocuments and play with thesearch function until you are comfortablewith it.Another comforting thought is thatwith the help of a professional consultantskilled in the area of organizing, such asa professional organizer or business efficiencyconsultant, you and your team canbe trained on naming conventions fordocuments. This not only teaches everyonein your agency how to name things,based on what works for your staff andyour agency, but your customers will beimpressed with how quickly you can retrievetheir records, invoices, paymentsand other such important documents. Askilled consultant can help you develop ameaningful convention.Paperless allows your employees toProvider of Practical Paperless Office Products800-655-2870speedyscan.bizPAPERLESS OFFICE - Our flagship product Speedy Organizer can handle all of yourdocument management needs for the entire office, for just $300, that’s it! No additionalfees now or in the future.Speedy Organizer is designed with both Simplicity and Power and operates with anymake and model of digital copier or scanner that you probably already have, as well as anyMFP (multi-function printer).Simplicity of use and the power to handle all of your document management needs.Speedy Organizer is being used by thousands of client’s everyday. Automatically catalogall of your paper documents and retrieve them at any time, in seconds. Then send themanywhere you want via. Email or fax or just print a copy for normal distribution. SpeedyOrganizer does it all. So why not start to increase office efficiency today, by eliminating timewasting searches for misplaced documents. Start to save space as filing cabinets begin todisappear, one set of documents at a time.YOUR CLIENTS WILL THANK YOU, for being more productive, more efficient and withfar less mistakes. CALL Speedy Solutions today at 1-800-655-2870 to find out how SpeedyOrganizer can help you! Or, for additional product information visit our website atspeedyscan.bizWinter 2009/2010 Exclusivefocus — 53

do more with less - less space, less time,less effort, less paper, less ink, etc. Someexamples:1. Capturing a document as a PDF andstoring it in a searchable database allowsfor convenient, efficient retrieval thattranslates into good customer service andless time wasted by your employees.2. Using electronic documents createsan archive automatically of critical businessdocuments. No one ever needs to ‘gothrough all those papers’ to try to figureout what to keep. You can decide whatto keep and organize them as you go insteadof trying to figure it out after thefact, which would be a daunting job andan unnecessary expense to incur.3. Creating documents electronicallyand sharing documents electronically reducesdocument transfer time, and customerwait time. Now you have accurateinformation quickly and it’s available inseconds instead of hours or days.4. How silly is it to create documents onpaper, shuffle them from person-to-person,risk them getting misplaced, makethem digital, print them, change them, domore shuffling and re-digitize them?Maybe everything you need is alreadyright in your office! So let’s begin. Generallythe best way to start a new projectis to ensure that resources are allocatedto the project. This could be hardware,software, staff and/or time. You probablyalready have everything you needif you have that scanner we talked aboutearlier. Before you begin, you’ll want tohave a plan - do not aimlessly start scanningfile cabinets full of papers without aplan. You need to think about it, discusswith your staff, and agree on a plan anda timetable. This approach will minimizedisruption to the organization. Once theplan is in place, you can begin the process,one document at a time.One of the key elements of your planshould to involve your staff in the process.Start by having a meeting with yourstaff. Ask them which documents currentlyexist in paper form and are beingconstantly referred to. What historicalpaper documents would create bettercustomer service if they were able to beaccessed via the computer instead of thefile cabinet? What documents wouldprovide better operational efficiency ifthey were available instantaneously atmultiple locations simply by clicking amouse? Usually, after just one meetingseveral problem documents will be identified.Congratulations! You have completedstep one.Now that a document retrieval issuehas been identified, analyze the life cycleof each document. Then follow the entirework flow of the document. How isit used? How often? When is it used?How often will it be accessed? Whatis its purpose? How often does it go inand out of its home? Ask as many questionsas needed to get a clear picture ofthe lifecycle of the document. This onedocument-at-a-timeapproach is leastintimidating when you involve your staffin the change process from the get-go.Once the document has been identifiedand the business process of thisdocument is clearly understood, youare ready to figure out a solution. If youhaven’t already done so, identify someoneon your staff to lead this business processimprovement initiative.How should the document be prepared?Who will initiate scanning?When? Where will the document liveonce it is a PDF? How will it be named?What type of searchable database programwill you use? What are the features?Are the features a good match foryour needs? This is a business processimprovement and cost reduction projectand should be approached in the samewas as other projects in your agency.Once the paperless office strategy hasbeen adopted, decide on a date to beginand put it on the calendar. When you areready, you can easily correct other inefficientdocument processes with the samepaperless office concepts.Be sure to give the initial phase of theplan time to settle in, allowing your staffto become comfortable with the changeand enough time for them to acquire ahigh level of competency in working withthe new procedures and processes. Ready?Set? Go!Part one: Scanning. Use a stand-alonedocument scanner, the scanner that ispart of the office copier or a small officeMFP (Multi-Function Printer). Any ofthese devices can change paper recordsto PDFs, and while not the most optimumequipment for this procedure, theycan be used to help you get comfortablewith the process and the results. You canalways upgrade your equipment later. Ifyou choose to buy a scanner, the FujitsuScanSnap is a good solution and reasonablypriced at well under $500.Part two: Document sharing. Oncescanned, your document becomes a PDFand is not editable in that form. When itis saved as a PDF the document can beshared with anyone in the organizationwho is connected to the server.Part three: Document management.A document management system is asolution that allows you to easily findwhat you have stored on the computer.As these systems have reached technologicalmaturity, they have become muchmore affordable. A system which yearsago may have required an investmentof several thousand dollars can now befound for a few hundred.Part four: Back up. There are manysimple, easy ways to accomplish this. Firstyou need to investigate the possible solutions.Then you need to pick one thatallows you to sleep well at night. Somepossible inexpensive options are: onlinestorage, an external hard drive to hold anothercopy of your data, and a local backup system with redundancy. Considerkeeping another copy of your data backedup to a smart phone or iPhone. Onceagain, all of these technology solutions aremature, and not particularly risky.Many times simple efficiencies andcost savings can be accomplished withminor changes. Isn’t it time to worksmarter? How good would feel to finallyreduce all of your important documentsto PDFs? Go Green and reclaimthat valuable, expensive real estate beingtaken up with paper documents and filecabinets… you’ll wonder why you didn’tdo it sooner.Alita Marlowe Bluford is a Certified ProfessionalOrganizer, Speedy Paperless OfficeReseller and a Business Process ImprovementExpert. Contact her at 800-852-9050 or info@efficiencyconsultants.com.Todd McIndoo is a Vice President at SpeedySolutions makers of the Speedy Organizer.He can be reached by calling 800-655-2870or by email at tmcindoo@speedyscan.biz.54 — Exclusivefocus Winter 2009/2010

Winter 2009/2010 Exclusivefocus — 55

Why would more than 2.3 millionpeople work in the insurance industry?According to The Insurance InformationInstitute (iii) 2.3 million peoplewere employed in the insurance industryin 2008. Of those, 1.4 million worked forinsurance companies, including life, health,and medical insurers (804,200 workers),property and casualty insurers (569,200workers) and reinsurers (28,400 workers).The remaining 907,000 worked for insuranceagencies, brokers, and other insurancerelated enterprises. [1] Michael E. Porter ofHarvard Business School developed theFive Forces Model as a industry analysisand business strategy tool to analyzethe factors with the potential to affect anindustry’s profitability and therefore the attractivenessof an industry or market.Understanding the industry environmentand its competitors are critical to the futureprofitability and success of an industry orfirm. Porter’s Five Forces of CompetitionModel include: the threat of new entrants,rivalry among competing firms, threat ofsubstitute products, bargaining power ofsuppliers, and bargaining power of buyers.Through proper analysis of these forces,one may be able to utilize and buffer theforces to your benefit in order to increasethe likelihood of above-average returns andthe ability for future success.The threat of new entrants is obvious inthe growing number of agencies throughoutthe U.S. Between 1998 and 2006, thenumber of insurance agencies and brokeragesgrew by more than 9,000 from113,112 to 122,138 firms respectively. [2]The increasing number of competitorsthreatens the market share of existing firmsand may result in lower revenue and overallreturns if strategies are not changed. Notonly are the number of competitors increasing,the type of competitors are alsochanging. We now not only see the impactof Internet sales affecting existinginsurance agents, but the type of competingfirms is also increasing. These includebanks, mortgage and real estate companies,featureWhy Insurance?associations (AARP, NRA), and non-insurancerelated markets such as Sam’s Cluband Home Depot who are utilizing theirmarket presence as a means to enter the insurancemarketplace. In order to counteractthese opposing forces and maintain growthand profitability, existing firms must evaluatetheir marketing strategies and focus ontheir core competencies to become moreeffective and efficient.The intense rivalry among competitorshas the potential to reduce profitabilitythroughout the industry as well. Withthe high number of firms competing forthe same client base, successful agenciesmust be able to differentiate themselves,not only on price but with services provided.This might include ramping upefforts to deliver first-rate service toagency clients by imparting the knowledgenecessary for them to make wiseand proper coverage choices.In addition, providing clients with allof their insurance needs greatly increaseslong-term retention. Successful agencieshave historically provided more than asimple commodity to their clients – theyalso provide value, which increases loyaltyand retention. These value-added servicesincrease the “switching costs” associatedwith moving to another agent or company,making it more difficult to move.Insurance agencies must be able to differentiatethe products and services they sellfrom those provided by their competitorsto create value. Doing so instills confidencein the minds of their clients whichhelps cement lasting relationships.The existence of substitute productsthreatens an agency’s existing client baseby increasing the likelihood a client mayswitch. In 2008 there were 2,741 propertyand casualty companies and 1,128life and health insurance companies inthe United States, [1] each offering similarproducts and services. Insurance agentsmust become ‘insurance advisors’ to educatetheir clients and create a new level ofproduct differentiation – in other words,be able to demonstrate what makes yourproducts and service special. Indeed,there is a whole range of talking pointsagents can use to make their case. Theseinclude price, coverage quality, claimsservice and additional coverage options.And perhaps even more importantly,56 — Exclusivefocus Winter 2009/2010

agents should seek ways to instill a senseof trust and peace of mind in the mindsof their prospects and clients. By creatinga perceived level of product differentiationand increasing the “switching costs,”agents can hedge against the threats ofsubstitute products.The “Bargaining Power of Suppliers”is the power held by the insurancecompanies. Insurance agents have littlepower over product offerings, premiumscharged, or the level of service providedduring claims. The insurance companiesdictate the levels of commissions, bonusesand contingencies that agents areable to earn. Changes within the industryover the past several years have limitedcompensation levels and the abilityto earn additional bonuses, most notablydue to Eliot Spitzer’s campaign for insurancereform in 2004.The insurance industry is also seeingan increase in vertical integration whereininsurance companies are entering themarketplace as direct competitors, shunningthe use of agencies by utilizing Internetbased distribution methods. In 2008,more than 15% of all auto insurance transactionswere sold online through directmarkets. [3] With online sales and marketingnot showing any signs of decreasing,existing traditional agencies must adoptsimilar plans and offer their clients comparableservices while continuing to providesuperior service, value and, most importantly,knowledge.Clients want to receive the best possibleproduct at the lowest price. While individualsmay not pose a direct “BargainingPower of Buyers,” groups and large corporateclients can. In order to maximizeprofitability, firms must reduce their costswhile providing higher levels of service,better quality policies and lower prices.The power of buyers is evident within theinsurance industry as evidenced by thecompetition among insurance companiesand agents battling for market share.According to Porter, an attractive industryhas high entry barriers, suppliersand buyers with little power, few productsubstitutes, and moderate competitiverivalry. Since the insurance industryhas little to none of these attractiveforces, are 2.3 million American workersin the wrong industry? Considering theinsurance industry’s net written premiumstotaled $1.1 trillion in 2008 andaccounted for 2.4% of the U.S. gross domesticproduct in 2007 (2008 data notavailable), [1] the insurance industry ismore than thriving. While competitionwill continue to increase among insuranceagencies and brokerages, it is stillpossible for them to increase their longtermprofitability and overall returns byrecognizing and understanding the positions,intentions, and performance oftheir competitors.Sources:1. Insurance Industry at a Glance.Insurance Information Institute (iii)..2. Statistics of U.S. Business: 2005.U.S. Census Bureau. 3. Vollman, Andrea .2009 Online AutoInsurance Report. 04-28-2009. 4. Hoskisson, Robert E., Michael A.Hitt, R. Duane Ireland, and Jeffrey S.Harrison. Competing For Advantage.2ND ed. Ohio: South-Western, 2008Article submitted by The Woodlands FinancialGroup, The Woodlands, TX. Phone(877)-466-1115.Winter 2009/2010 Exclusivefocus — 57

I just got word that Allstate is at itagain. The second letter for performance,or lack thereof, is being sent out on September30th. Since I expect to receive thesecond letter, I have a couple of questionsfor you. First, I have my book up for sale,but if I can’t sell it, can I settle for theTPP? How do I go about it? Second, Ihave heard that the TPP may be discontinuedin 2010, is this just a rumor?Editor’s response: If you cannot sell, youwill automatically receive the TPP instead.The Human Resources department will bein contact with you – they will want an addressto send the payments, as they do notEFT the deposits. The TPP is paid to you in12 monthly installments, beginning about 7weeks after your termination date.We do not know if the TPP will be discontinued– this may be a rumor, or it maybe valid. The company can elect to discontinuethe TPP at any time.. . . . . . . . . . . . .I was just visited by my MSL regardingmy relocation to space upstairs frommy current location. I bought a bookearly this year and have decided to hirenew staff and upgrade the office.I was told today that everyone who isrelocating, buying a book of business or isa new agent MUST purchase the BrandedRetail Environment. I am now expectedto pay $3,000 for ugly furniture that doesnot fit the office color scheme or design.They are also expected to rent retail spaceonly, no more office buildings.The yellow wood does not go with thecherry wood of the new desks. The “reception”desk is 4 feet tall and not conduciveto conducting business. Since I donot have non-producers, this is not acceptable.Also, the hanging light is unattractiveand will not be seen through thetinted glass. Not to mention that I amsupposed to pay for the additional wiringand electricity to light the silly thing.My MSL told me, “The idea is to makeevery office look the same, like McDonlettersto NAPAALetters continued from page 12.Well, the ALI survey has been completed.I’m sure that agents across thecountry are anxiously awaiting the resultsto see if they’ll still have jobs. It is hard tobelieve that the company will actually usethis flawed approach to deprive agents oftheir livelihoods. It seems pretty clear tome that the survey is statistically invalid.How can the company base its assumptionson such infinitesimal numbers? Myguess is that management is simply usingthe ALI as another excuse to fire moreagents, further reduce agent incomes,and create a scapegoat (the agency force)to shift the blame for its eroding PIF.Needless to say, the survey does notencompass the public’s perception ofAllstate as a company gone wild with arrogance,self-adulation and questionablebusiness practices. From Florida, wherethe company refused to provide documentsrequested by the state, to the actionsthat led Dan Berardinelli to writethe discomforting exposé From GoodHands to Boxing Gloves, to the actionsin New Jersey in the early 90’s that culminatedin the company’s announcementto leave the state, to its decisionto non-renew hundreds of thousandsof property policies countrywide due toits self-induced over-exposure in coastalstates, etc., the company has done a brilliantjob of alienating the public with itsongoing anti-consumer actions.However, in spite of all this I trulyapplaud Allstate’s efforts, however misguided,to help us improve customerloyalty. As agency owners, we need allthe help we can get in the current environment.I am also open to the valueof statistics from the macroscopic view ofa state or a region, but singling out andterminating individual agencies is justplain wrong. The current ALI processneeds an overhaul to better reflect themacro trends that are occurring amongAllstate customers. Once we are certainof what those trends are, we can begin toaddress them in a business-like mannerinstead of firing people.. . . . . . . . . . . . .alds.” I responded, “Fine, you pay for itand I’ll take anything you give me. Butdo not ask me to pay for something I donot want.”For this reason I will be sending in mymembership via FedEx.. . . . . . . . . . . . .Agents in HRM states and countieslose a lot of autos when Allstate dropshomeowner policies due to hurricanerisk management. These auto losses arecounted against our retention. I’m curiousas to whether we have legal recoursewhen our bonuses are directly impactedby these retention reductions. This isthe company’s doing not ours and weshouldn’t take a financial hit and thus bepunished for it. Your thoughts?Editor’s response: While you raise an interestingpoint, it would probably be a difficultchallenge in a courtroom. Only the lifeand EB components are consistent across thecountry. The Growth, Profitability and Retentioncomponents of the RFG are adjustedby market, so it is likely they were adjustedin your region/market, as well.. . . . . . . . . . . . .In November, I was visited by my “manager”and was told that that reducing theagency force in the Capital Region hasfinally come. Here in the Capital Regionthe plan is to reduce the agency force overthe next 12 to 24 months. The first waveof letters will be sent out in February toagents who haven’t met their quotas.Sadly, I will be on this list unless I sell30 auto applications and $15,000 by December31, 2009. The rest of the manager’svisit was telling me how I can sell mybusiness. I said that I would prefer to tryto meet the quotas.I haven’t seen this information publishedby the region, so I want otheragents to know what’s coming. Maybe ifthey are given more then 7 weeks noticethey will have an opportunity to keeptheir agencies. In the meantime, maybe58 — Exclusivefocus Winter 2009/2010

the IRS will determine if we are employeesor force the company to treat us astrue independent contractors.. . . . . . . . . . . . .The situation here in Florida hasgone from very bad to much worse. TheMDLs had their accountability meetingthis week and most agents are gettingnasty calls. Mine called and I basicallytold him right where to get off. It gotvery ugly, but I’ve learned that you haveto slug it out with them.Had I known this experience wouldbe so negative, I never would have doneit. Sadly, it’s unfolding much like we allknew it could. Every time I see the managers,they look like they’ve just seen aghost. I know they are catching heat,but I have told them that we cannotmanufacture business and we can’t holda gun to the public’s head and force themto buy from us. In my market, only sixagents are on pace to hit their numbers.We all know the economy is in the tank,but management doesn’t want to hear it.I guess they want small guys to sell sothat the big guys get even bigger.. . . . . . . . . . . . .letters to NAPAAI am a longtime insurance agent, buthave only been with Allstate a little oversix years.Your work is invaluable and my onlysource of reason. In my 30 years in thisbusiness I have never seen such hostility betweena company and the people it countson to survive. Without the agents, Allstatewould go under in five years. No sane personcan justify the huge price increases wehave endured. Without agents they wouldlose 20%-30% yearly in this state.Their strategy is to conquer by dividing.There are no agent meetings tospeak of because they are afraid of whatthe longtime agents will say in front ofthe new agents. I guess they don’t wantthem to hear the truth.The things you say should get the attentionof the Allstate Board of Directorsbut evidently they don’t care anymore than upper management does.. . . . . . . . . . . . .I have been very pleased with theNAPAA newsletter and Exclusivefocusmagazine.I was told by management that my lastday would be 08/31/2009, but they extendedthe date to 10/31/2009 because I had astrong buyer candidate to purchase my book.The deal fell through and I have now beenasked to stay through12/31/2009. I’ve dealtwith at least six different prospective buyers,but none have been able to find financing. Ihave resolved to accept the TTP.I sincerely hope that Allstate is at somepoint held responsible for the careers thatthey have ruined.. . . . . . . . . . . . .In July 2009, the CA region enacted theBusiness Review Process (BRP) for agentsabove a certain loss ratio in California. Basically,the program requires all new autobusiness to be submitted to a “BRP Team”for review and approval. The process cantake anywhere from 1 to 5 days. Thisprogram has essentially prevented agentsfrom writing new business and makinga living. I have been on this program forseveral months and the region has givenno indication of when I will be taken off.BRP has brought new business to a standstill.I understand that the region continuesto add agents to programs. I believethere are now between 150-220 agentson the program. I know of another agentwho was forced to take TPP because ofthis and I’m sure there will be many morein the coming months.I believe Allstate is acting in bad faithand I’m sure what they’re doing is a violationof our contract. I’m just writing tolet you know because I think this would besomething worth looking into and possiblyreporting in Exclusivefocus magazine.I think you will find a lot of disgruntledagents who are also feeling trapped byAllstate. If you find out any information, Iwould be very interested to know.Association manager’s response:I agree that the company may not be actingin good faith with this new scheme. Itappears that it is simply another attempt toforce selected agents out, and reduce the sizeof the agency force.Here are a few excerpts from page two ofthe R3001C-2 EA Agreement:“The Company will determine in its solediscretion all matters relating to its businessand the operation of the Company including,but not limited to, the following:”“The acceptance or rejection of any application;”“The limitation, restriction, or discontinuanceof the writing or selling of any policies,coverages, lines or kinds of insurance orother Company Business;”That said, the implied covenant of goodfaith and fair dealing is an entirely differentmatter. I am not an attorney – but Iwould think there may be something here.The question is – how much money and timewould this take to fight?. . . . . . . . . . . . .As you know, management has consistentlypushed agents to increase thenumber of miles driven on all quotes, endorsementsand new business to 12,000and beyond. Agents who do not complyare being written up and targeted for termination.I spoke to Stuart Crisman atthe California Department of Insuranceand he is extremely interested in speakingto other agents about this practice.We had another mandatory meetingwith managers this week. They pulledus aside to review our compliance withthe 12,000 mile initiative. They said theydon’t want to see any quotes or new businessbelow 12,000 miles.This practice is unethical and shouldbe exposed. Stuart Crisman wants to hearfrom the agents and will keep all informationconfidential. He can be reachedby phone at (213)346-6806 or by emailat crismans@insurance.ca.gov.Winter 2009/2010 Exclusivefocus — 59

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleARKANSASGreenwoodJimmy McCormicka080650@allstate.com479-213-1926Asking Price: $225,000PIF: 1,100 Premium: $925,000Number of Licensed Staff: 2CALIFORNIASan DiegoRich SalleseRichsallese@allstate.com858-405-5455Asking Price: $145,000PIF: 614 Premium: $598,000Number of Licensed Staff: 1OrangeMasood Haidera060486@allstate.com714-639-2227Asking Price: $120,000PIF: 485 Premium: $330,000Number of Staff: 1 (0 Licensed)Seriously interested buyers onlyWest HollywoodSilvina ZoltzmanSilvina@allstate.com310-205-2355Asking Price: NegotiablePIF: 1,944 Premium: $1,722,000Number of Licensed Staff: 2Solid, 10 year book. Excellent LR.Asking price is 2X Renewals, or1.75X for cash. (310) 279-9486 cellularCONNECTICUTTorringtonThomas Krohnertskrohner@sbcglobal.net860-480-4920Asking Price: $685,000PIF: 2,200 Premium: $2,356,652Number of Licensed Staff: 242 year agent, time to go. 2 agentoffice with 2 licensed staff, 35.54 LR,91.52 retention.FLORIDAJacksonvilleRosetta Fitzgeraldinsureall@comcast.net904-463-2420Asking Price: $175,000PIF: 860 Premium: $944,600Number of Licensed Staff: 2Retention 90.74, Items 1,127. SellingAllstate book only, 19+ year agent.Fort MyersCliff Cartercliffcarter@allstate.com239-275-7611Asking Price: $504,000PIF: 1070 Allstate, 456 BrokeredPremium: $1,677,000Number of Licensed Staff: 122 Year agent, low overhead, staffwill stay, turnkey operation.SunriseMichael Sternmichaelstern@allstate.com954-742-0801Asking Price: $750,000 PIF: 1290Premium: $3,900,000Number of Staff: 4 (2 licensed)Retiring after 40 years. Established,successful agency in same areasince 1981. Large book of propertybusiness is brokered through severalcompanies including Homewise,Universal, Royal Palm, Florida Peninsula,St Johns, Citizens and others.Port St LucieBill GoldmanJUPITER277@AOL.COM772-336-2800Asking Price: NegotiablePIF: 850 Allstate 700 BrokeredPremium: $1,700,000Number of Licensed Staff: 2Priced to sell, qualified buyers only.DeltonaDenise Whitedwhiteco@gmail.com386-214-1991Asking Price: NegotiablePIF: 900 Premium: $900,000Number of Licensed Staff: 24 yr agency, qualifies for new agencybonus. Under 500 Allstate policies,400 brokered home. Includes F&E.Under $900,000 in premium, asking3 times, $240,000. Allstate book only$400,000 in prem. price $120,000KissimmeeLarry Newmanlcn1986@aol.com407-529-4147Asking Price: $1,100,000PIF: 2,600 Premium: $2,650,000Number of Licensed Staff: 321 year agent retiring, staff will stay.Great location, turn keyKissimmeeDale Revelsdrevels@gmail.com407-924-5336Asking Price: $850,000PIF: 1,100 Premium: $2,200,000Number of Licensed Staff: 121 yr agent. Paperless office, lowoverhead. Work with Allstate Hall ofFame Life Specialist.GEORGIAWinderTim Milstentimmilsten2@allstate.com770-867-1001Asking Price: $807,000PIF: 2,519 Premium: $2,666,277Number of Licensed Staff: 2Low overhead, great cash flow. 38.25LR, 90.11 retention (only 83 IndemnityAuto PIF). Very competitive ratingarea. Computers paid for. Locatedbetween Athens and Atlanta. OneFT staff, second staff works Mondayand Friday. Not offering ownerfinancing. Great opportunity, currentowner moving out of state.BraseltonDan Torbettdantorbett@allstate.com770-778-9586Asking Price: $325,000PIF: 1,375 Premium: $1,250,000Number of Licensed Staff: 2High growth area, unbelievable demographics,incredible potential.We have grown a very strong bookof business in the 5 years we havebeen open. This is a highly soughtafter book of business already. Thecurrent retention is 93%.HAWAIILahainaMichael D Amatomichaeldamato@allstate.com808-661-3542Asking Price: $210,000PIF: 1,296 Premium: $1,211,546Number of Staff: 2 (1 lic)Beautiful, turn-key office. Downtown,tastefully furnished. TalentedEFS. Call 9AM-11AM Aloha timeIDAHOMoscowNadine Belieunadine@allstate.com208-882-8000Asking Price: Reduced!! $250,000PIF: 1,800 Premium: $1,400,000Number of Licensed Staff: 1Great lease terms assumable,Beautiful area - hunting, fishing,recreation, Ret 89%, LR >30%. 20 yragent, retiring.ILLINOISLyonsJim Reinharda086138@allstate.com708-447 -8000Asking Price: Looking for reasonableofferPIF: 1,266 Premium: $1,253,500Number of Licensed Staff: 1LR 12 mm 48.22, and 36 mm 55.89,retention 87.47. Month to monthlease- no obligation. If larger bookdesired, 2nd agent willing to sell tocombine book - increase to approx1700 PIF. After 25 yrs, anxious toretire.60 — Exclusivefocus Winter 2009/2010

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleINDIANABrownsburgStanley Sheppardstansheppard@allstate.com800-687-3913Asking Price: Call for infoPIF: 3,600 Premium: $3,000,000Number of Staff: 0Two agencies same location. Retention90%, 12mm LR 38%. No sellerfinancing, approved inquiries only. 6yr old condo office also offered, reasonablepriceKENTUCKYHendersonNancy Thornberrynancythornberry@yahoo.com270-860-2853Asking Price: NegotiablePIF: 901 Premium: $946,990Number of Licensed Staff: 1SALEPENDING!LOUISIANAHammondTerry Kingking2926@bellsouth.net985-974-7144Asking Price: $1,850,000PIF: 3,500 Premium: $5,450,000Number of Licensed Staff: 3Fast growing area, Premier 33 yragency, 7.6 RFG points in 2008. 47%LR % 88.5% retention. Great location.MAINEAugustaAndrew PerryAndrewPerry@allstate.com207-623-1394Asking Price: NegotiablePIF: 1,100 Premium: $850,000Number of Staff: 1 (0 lic)Great place to live.90.3% retention,12 mm LR 37.61, 24 mm LR 47.80.Atlantic Ocean east, mountainswest, ponds and lakes in between.MARYLANDFruitlandJack Thomaspoconojack@comcast.net410-341-0805SOLD!Asking Price: NegotiablePIF: 900 Premium: $1,028,737Number of Licensed Staff: 1MONTANAMissoulaNicole SchreckendgustSchreck@allstate.com406-728-6336Asking Price: call for detailsPIF: 1216 Premium: $1,250,000Number of Licensed Staff: 1NEVADAHendersonGlen Millerglenmiller@Allstate.com702-499-5506Asking Price: $340,000PIF: 1,200 Premium: $1,500,000Number of Licensed Staff: 2HendersonEric R. Zimmermanericzimmerman@allstate.com702-809-4747Asking Price: NegotiablePIF: 2,743 Premium: $2,700,000Number of Licensed Staff: 3LR 38%, retention 88%. Very cleanbook of business. Agency established22 years. Buyer must be companyapproved.NEW JERSEYSummitJames Fitzsimmons IIIjfitzsimmons@allstate.com908-598-9302Asking Price: $975,000PIF: 1,932 Premium: $2,700,000Number of Licensed Staff: 1Great loc for AF. $325,000 in revenue.30% LR.SpringfieldJim FitzsimmonsJfitzsimmons@allstate.com908-598-9302Asking Price: $1,600,000PIF: 4,555 Premium: $5,700,000Number of Licensed Staff: 3Retention 93%. Great location. Firmasking price. No buyer financingNEW YORKManhassetLeland D McAllisterLmcallister@allstate.com631-821-7806Asking Price: Call for infoPIF: 937 Premium: $1,538,000Number of Licensed Staff: 1GreenvaleMelvin Davismel7432@aol.com516-621-7400Asking Price: $425,000PIF: 1,300 Premium: $1,638,000Number of Licensed Staff: 1NORTH CAROLINAKannapolisStephen Hodgestevehodge@allstate.com704-933-1500Asking Price: $825,000 Incl BldgPIF: 2,200 Premium: $1,700,000Number of Licensed Staff: 2Racing side of Charlotte! Home ofDale Earnhardt! 2nd fastest growingarea of N.C. Asking 2X TPP (TPP approx.250k) for Book, and appraisedvalue of $325,000 for Comm office.15 year agent, 2008 Reg Champion.Excellent ALI, Retention 90%, LR inthe 40’s. YTD-5.4% growth auto,YTD-17.9% growth agency revenue.Gross revenue 200k+ last 5 years.Turnkey. This one will go fast! E-mailpreferred!FranklinBurl Parksburlparks@allstate.com828-369-9500Asking Price: $650,000PIF: 2,669 Premium: $2,262,733Number of Licensed Staff: 3OHIOCuyahoga FallsRoger Moorerogermoore@allstate.com330-715-7780Asking Price: $750,000PIF: 3,499 Premium: $2,787,000Number of Licensed Staff: 2Good clean book. Great LR & retentionOREGONRoseburgWendy Sue Bensonwsuebenson@msn.com541-912-0900Asking Price: $575,000PIF: 3117 Premium: $2,300,000Number of Licensed Staff: 3Allstate phone number for 50 years,in location over 25 years. BeautifulUmpqua Valley. Please contactagent only.BendStan R Stiebenstanstieben@allstate.com541-318-8536Asking Price: $250,000PIF: 1,500+ Premium: $1,260,000Number of Staff: 2 (1 Licensed)ALI 86, good retention, great LR.High quality BOB. Agent retirementage, willing to work with buyer.Unsurpassed quality of life communityin the central Oregon HighDesert.SOUTH CAROLINAColumbiaConfidentialAllstateAgy4sale@aol.comAsking Price: Email for infoPIF: 3,000 Premium: $3,000,000Number of Licensed Staff: 2Long term agent retiring. Sunnywarm capital of SC, 1.5 hr to beach,1.5 hr to mtns. Ft. Jackson, USArmy’s largest basic training basenearby. State govt and Univer. of SC.Respond to email address, after CDAcompleted all details of sale avail.Winter 2009/2010 Exclusivefocus — 61

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleTENNESSEERogersvilleDale Wilsonwilson.d713@gmail.com423-272-5357Asking Price: $132,000PIF: 757 Premium: $675,000Number of Licensed Staff: 1Upper eastern part of TN ( HawkinsCounty). Only Allstate agency inRogersville, great potential for an aggressiveagent. Low over head, greatlocation, high business traffic area.ChattanoogaMitchell Beenembinsures@mac.com423-504-1078Asking Price: NegotiablePIF: 1,424 PIF Premium: $1,420,000Number of Licensed Staff: 1KnoxvilleConfidential listingprest222@yahoo.com865-691-0000Asking Price: NegotiablePIF: 1,200 Premium: $900,000Number of Licensed Staff: 1Long time agent, high retention, LR under20%. Low overhead, affluent area,KnoxvilleDavidson Insurance& Financial Svcsjdavidson@allstate.com865-539-0700Asking Price: NegotiablePIF: 2,299 Premium: $2,286,016Number of Staff: 3 (2 lic)Confidential call to agent only. 18year agency, same location 14 years,low rent. 15X Honor Ring, 9X NationalConference. LR 45%.TEXASWacoGayle Blumgayleblum@allstate.com254-717-2548Asking Price: Call for infoPIF: 1400 Premium: $1,800,000+Number of Licensed Staff: 2Prime location, established over35 years ago, current agent has 26years. Loyal clients and great lossratio. Wonderful town. Only seriousinquiries.ArlingtonDanny VelaDannyVela@allstate.com817-846-6331Asking Price: NegotiablePIF: 1120 Premium: $1,686,000Number of Licensed Staff: 1ALI 86, 25 yr agency. LR 53%, Ret88.27. Will work with buyer to assuresmooth transition.GarlandRick Burridgerickburridge@allstate.com972-840-3695Asking Price: Call for infoPIF: 1,707 Premium: $1,500,000Number of Licensed Staff: 1index to advertisersAMS/Vertafore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31, 32Aptela . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Applied Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Best Insurance Leads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57BGI Marketing Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3E-chx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13eBridge Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Find a Local Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Global Green Insurance Agency . . . . . . . . . . . . . . . . . . . . . . . . . . 45Leads 360 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7VIRGINIARichmondDoherty Insurance Incd4175045@verizon.net804-339-6389Asking Price: $475,000PIF: 1,468 Premium: $1,804,918Number of Licensed Staff: 2Established since 1987. Excellentlocation, bi-lingual.WASHINGTONSpokaneSteve WilsonSteveWilson@allstate.com509-325-9388Asking Price: Call for detailsPIF: 3,125 Premium: $1,832,547Number of Staff: 3 (2 lic)All calls confidential. Establishedagency, reasonable rent. Lic, experiencedstaff will stay. Retention88.99%, LR 51.19. Big city amenitiessmalltown attitude. Golf, hike, ski,boat, bike - Broadway shows, SpokaneSymphony, and large concerts.WISCONSINWausauMike Handrickmhandrick@allstate.com888-895-6022Asking Price: NegotiablePIF: 1150 Premium: $780,000Number of Licensed Staff: 1Growing area, North Central Wisconsin.Both Wausau agencies forsale. Approved buyers can buy bothand merge into one location.MiddletonRod AbrahamRodAbe@Allstate.com608-220-0321Asking Price: $250,000PIF: 1,595 Premium: $1,000,000Number of Staff: 2 Part time (1 lic)Growing agency. Only agent in Middleton-Voted #1 mid sized city inAmerica. Good retention, LR and Financialresults. Exc lic staff, 9 years.Low expenses, positive cash flow.Reasonable offers entertained.The NAPAA market place…where buyers meet sellers.Place your classified ad here for just $99 per issueof Exclusivefocus (Price reduced to $50 if ad is inconjunction with online ad.)For more information, go to www.napaausa.org,or contact NAPAA at 877-627-2248,or HQ@napaausa.org.Oakstreet Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Paragon Independent Ins Agencies . . . . . . . . . . . . . . . . . . . . . . . . 48PPC Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Rhinotek . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52Sprint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17, Outside Back CoverSmart Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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