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Rough Notes
Copyright Rough Notes Co., Inc.
COPYRIGHT ProQuest. All rights reserved
from April 2004
Last Number: October 2010
ISSN 0035-8525
[Content not included in vLex Global Academic]
All the contents
Year 2007
Premium Financing Option Boosts Agency Income
Even though rates in the regular marketplace may be dropping somewhat, premium financing is still an attractive option for commercial insureds who prefer paying for their coverages on a periodic basis rather than all at once. However, for some agents and brokers, premium financing is still uncharted territory. One way for an agency to go is to strike a deal with a premium financing company where that company will finance the agency's insureds' premiums at a certain rate of interest. Another w...
While most P-C producers will readily acknowledge that their commercial clients need benefits products, and that offering benefits is a great way to build revenue and boost retention, they are a lot less certain about actually selling such products. Over the years Welsch, Flatness & Lutz (WFL) had tried in various ways to meet its clients' needs for employee benefits products, but WFL management knew the agency's benefits operation needed a serious shot in the arm. Enter Kevin Trokey, an ...
The Rough Notes Company: Community Service Award
When a claim occurs, it's an opportunity for an agent to shine or to fall flat on his or her face. A mishandled claim can result in an angry client or former client if things go really badly, an upset carrier and an end to any opportunity for profit-sharing. In workers comp, for example, it's critical that one of the standards be early contact with the injured employee. You need a third-party administrator (TPA) that can work with the doctors, the medical case managers and the employee to ach...
Gauging Risk in the Expanding International Market
US businesses, by a wide margin, intend to expand their operations overseas, according to a recent survey by Chubb International; but the risk managers and chief executives of those firms are often at odds as to what the risks are, how to mitigate those exposures and what preparatory steps should be taken before beginning expansion. The findings illustrate the importance of an emerging trend toward closer collaboration between an organization's risk manager and its most senior executives. Ove...
In an interview, Jim Britt, the newest president of the Chartered Property and Casualty Underwriters (CPCU) Society, talked about some issues involving the organization. According to Britt, under the theme "Heritage and Horizons," he hopes to stress reconnecting with colleges and universities that teach insurance and risk management. On what motivated him to seek the Society's presidency, Brit said it has been the encouragement of other leaders and their support that inspired him to seek the ...
Today's risk management programs are much more sophisticated than those of just a few years ago. It's common for mid-sized corporations to utilize single parent captives, risk retention groups, and self-insurance. As a result, agents and brokers servicing mid-sized accounts have had to expand the scope of services they provide to their clients to remain competitive. In order to effectively compete for today's middle market account, agents and brokers need to have access to state-of-the-art ri...
With the price tag on developing game software rising, developers and publishers need to make sure they are carrying the right insurance coverage so they are not at risk of loss. For more than 80 years, Fireman's Fund Insurance Co's Fund has insured some of the biggest and most successful productions in the entertainment industry. Right now, most video game producers are improperly insured as business software developers. The industry carries risks not unlike those found in film and televisio...
Agency Financial Management
Get Serious About Your Perpetuation Plan
The 75 million Americans who are part of the Baby Boom generation are now beginning to approach retirement age, and the average age of the US population is increasing. Likewise, the average age of owners of insurance agencies and brokerages is also on the rise. Advisors who focus exclusively on the insurance industry find that agency perpetuation is a hot topic of conversation for both the current owners who are considering a sale, and the next generation of prospective agency principals. A s...
Public Policy Analysis & Opinion
Fantasy League Foreign Relations
Alabama Insurance Commissioner and NAIC President Walter Bell and Egyptian Insurance Supervisory Authority (EISA) Chairman Adel Mounir signed another Memorandum of Understanding (MOU), which promises regular interaction between the authority and the Missouri-based nonprofit. So the NAIC has entered into another agreement with another foreign government entity -- through a mechanism that has little or no standing in legal or diplomatic frameworks. Like the NAIC, there is no real evidence that ...
Pf&M At A Glance
Court Cases - Summary Judgments
Great Harm Hazard & Liability Insurors provides coverage for the Blumbertons. Jan Hert has sued the Blumbertons. Hert suffered serious injuries when a dog owned by Tom Vagrant attacked her. At the time of the attack, Vagrant and his dog were living in the Blumbertons' home. Great Harm denies the claim. The Blumbertons sue Great Harm, seeking coverage and a legal defense against the Hert suit. Great Harm files a motion for a summary judgment. The underlying assumption for a summary judgmen...
To The Point
This year, the captive industry experienced an unpleasant September surprise from the Internal Revenue Service, never a good thing. The surprise for the captive insurance community came in the form of a proposed revenue ruling that was published in the Federal Register on Sep 27, 2007. Almost from the start, the IRS has taken a position that captives are little more than self-insurance and as such the deductibility of premiums paid to a captive frequently have been called into question. The l...
Critical Issue Report
Flood Reform Legislation Talks Go On ... And On
At the time of this writing, the US House of Representatives had passed H.R. 3121, the Flood Insurance Reform and Modernization (FIRM) Act of 2007, and the US Senate was holding hearings in anticipation of a vote later on. The Independent Insurance Agents & Brokers Association of America said it "strongly supports" the legislation that the IIABA said would help consumers who are vulnerable to flooding and would shore up the National Flood Insurance Program for many years to come. The Prop...
As the year nears its end, surplus lines insurers in the US have a good deal to celebrate. According to a new research paper by Conning Research & Consulting Inc, surplus lines companies have outperformed the general commercial property/casualty insurance market in both premium growth and underwriting profit. But before popping a cork, surplus lines underwriters should be aware that the Conning report also points out that the softening standard market is not particularly favorable for sur...
Technology
For members of The AMS Users' Group (AMSUG), their new Web site is driven by each individual member's content preferences. Kevin Dickmann, chair of the AMSUG Communications and Awards Committee, explains that one objective for the updated Web site was to bring as much targeted information to the member as possible. Another goal was to enable the member to control what their experience was with the AMSUG Web site. Long-term, having an up-to-date membership database means AMSUG can better serve...
Risk Management
Execution of Contract Triggers Coverage for Additional Insureds
If a general contractor fires a subcontractor and hires another subcontractor to take over the existing work, the question is whether the new subcontractor's agreement to name the general contractor as an additional insured will be recognized by the subcontractor's insurer if, at the time of an accident, the contract between the general contractor and subcontractor was not yet signed. Use of the term "executed" by ISO in its CGL policy provisions, dealing with contractual liability coverage, ...
Specialty Lines Markets
A Preview of the 2008 Specialty Market
Last year, the sale of new homes was in decline. Insurance rates generally are still heading downward with the hope that that decline will at least level off. The hurricane season was fortunately not severe enough to cause tightening in certain lines of business. Mergers and acquisitions are one way to achieve growth when the market is soft and capital is abundant. Some look to access markets and expertise they don't enjoy now, while others strive to increase market share. Mary Ellen Rozzell,...
Enterprise Risk Management
Software That Helps Integrate Risk Analysis
It's clear that enterprise risk management (ERM) is gaining significant traction in corporate America. One of the early approaches to ERM was advanced several years ago by COSO. While there continues to be significant debate regarding the exact approach to ERM, most experts agree with the basic component as outlined in the COSO framework. Central to this component is the development of a risk management philosophy and risk appetite. Towers Perrin recently introduced new software that can assi...
Building Equity Value
It is imperative that agency owners understand the key factors that they need to consider when selling their agency and how each contributes to determining the value of their agencies. Along with understanding the factors that contribute to agency value, it is also important to understand who is buying agencies, why they are buying, and the types of agencies they are looking for. This article describes the general market conditions, along with the various buyer-types and what they are seeking...
Coverage Concerns
Guidelines for Reporting Automobile Accidents
Agents and brokers should furnish policyholder identification cards, accident report forms and claim office directories supplied by individual insurance companies. A personal visit with an insured can be a good PR approach. Check to make sure that your client has these items on hand. Also confirm that your client understands and knows how to use them. An accident is a traumatic experience. Ready knowledge of what to do makes a big difference. This is a prime example of taking care of a policy...
Marketing
Based in Middletown, CT, Dauntless Specialty Brokerage is the in-house specialty brokerage for MiddleOak, which is the group trade name for Holyoke Mutual Insurance Co, founded in 1843, and Middlesex Mutual Assurance Co, established in 1836. Dauntless Specialty Brokerage prides itself on addressing the needs of what it calls "undeservedly underserved" markets, primarily residential exposures. In addition to its upscale personal lines products, Dauntless offers insurance programs for an array ...
Benefits Business
Critical Illness Insurance: Ready for Prime Time?
Critical illness insurance, which pays cash benefits to policyholders upon diagnosis of specific diseases and conditions, is gaining renewed interest in the US, according to underwriters and other industry experts. In the US, sales of critical illness insurance have been slower to materialize. The reason? Employers' concern about the cost of group medical benefits has kept the spotlight on controlling health care expenses and adjusting plan design rather than on introducing new coverage optio...
Customer Service Focus
The role of the customer service representatives (CSR) is to provide clients with good service. Their job is not only to provide a quote or sell an insurance policy, but also to counsel and advise customers. It is the CSR's job to provide customers with information and guide them in the right direction. CSR can be successful in this role by considering these eight steps: 1. education, 2. professionalism, 3. communication, 4. listening, 5. empathizing, 6. networking, 7. time management, and 8....
Insurance-Related Court Cases
Centuries Of Rough Notes
Automobile Liability Insurance in Action
The individual who plans to operate his car this year has the money for the Auto Liability premium but he has decided to do a little underwriting on his own, an attitude he has never taken before. He has decided to be his own banker and use his own judgment as to just what he should and shouldn't have. At his stage you can see how useless it would be to attempt to talk him out of his opinion. At this stage, also, you can see how effective it would be to show this man actual claims paid or han...
Agency Marketing Technology
Using Video for Sales and Service
One striking example of how the younger generations (GenX and GenY) receive information is in their use of video. Cable's MTV began the trend of communicating information visually. An even more striking example is YouTube, a video-sharing Web site where users can upload, view and share video clips. There had been over 1.5 million views of the Auto Insurance video in about a year. This is a trend you should not ignore. The question then becomes how can one take advantage of video technology to...
Marketing Agency Of The Month
When Jim Blackburn established Assurance Agency in the northwestern suburbs of Chicago, Illinois, it was primarily to write coverage for a fledgling but growing construction industry. That was in 1961. Anyone who has been to the area today would say that Blackburn was prophetic. Construction of every variety continues apace. Assurance began diversifying into other areas in 1990 as the agency grew and producers with other specialties and interests came aboard. Then, in 1995, Blackburn and his ...
The Changing Face Of The Independent Agent
Building a Successful Business Model
Dawn Bijou Janes always knew that she wanted to be a child psychologist when she grew up. In researching a job change, Dawn methodically listed everything she liked about counseling and being self-employed. A friend mentioned the insurance industry as a career possibility. Dawn began her insurance career as a CSR at a small multiline agency in the western suburbs of Minneapolis. Although she was good at the job, Dawn knew that being a CSR was not where she wanted to stay. She then tried her h...
Beyond Insurance
The vast majority of insurance agencies are nowhere near their full power capacity. Most have technology, equipment and talent, but their performance ratings are below desired expectations. When you look "under the hood" of these agencies, you see that they are using low-grade fuel (ie, product-oriented sales approach) and have no navigation system (ie, quality assurance, customer relationship management). Most disconcerting is the fact that their producers travel on crowded highways -- using...
Southwest Regional News
Graduated Licensing Laws Prove to Be Lifesavers
In a report issued earlier this year, the Insurance Institute for Highway Safety (Institute) says that while crash rates for teenage drivers are still higher than those of adults, real progress has been made in safeguarding young drivers. The Institute says that much of this progress has occurred in areas targeted by graduated licensing laws, including fatal nighttime crashes and fatal crashes involving multiple teenage passengers. Graduated licensing is a system designed to delay full licens...