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                                                     National News

IIABA News
Big “I” Outlines Concerns with Senate Health Care Bill 

Last Friday, the Big “I” and industry partners, the National Association of Health Underwriters (NAHU), the Council of Insurance Agents and Brokers (CIAB) and the National Association of Insurance and Financial Advisors (NAIFA), sent a letter to Senate Majority Leader Harry Reid (D-Nev.) and Senate Republican Leader Mitch McConnell (R-Ky.) outlining the health insurance agent and broker community’s concerns with the Senate bill as currently drafted.

Earlier this year, the four organizations joined forces to create the Health Insurance Agent & Broker Alliance, a coalition representing more than 500,000 health insurance agents and brokers, to advocate the industry’s interests in the health care reform debate before Congress and the Obama administration.
The letter reaffirms the commitment of the agent and broker community to passing meaningful health care reform this year, but stresses that such reform must be done in the right manner and notes several industry concerns, including:

• The current version of the Senate health care reform bill includes a provision that allows the Secretary of Health and Human Services to establish the rates that plans in the exchanges can pay for broker commissions; and

• The legislation grants authority and resources for the federal government to contract with non-profit entities in the exchange to provide consumers with enrollment assistance, information and other services. The bill fails to specify that these entities should be licensed and possess the necessary qualifications as required by their state of residence.

The Big “I” government affairs team will continue to communicate the concerns noted in the letter and others to the Senate leadership as final touches are made to the bill over the next week.

To view the full text of the letter, please click here.

IIABA News
Offer Winter Tips to Customers

Many consumers don’t realize that lack of preparation for winter could mean unwelcome home damage and unexpected repair expenses. To help families and businesses protect themselves against winter risks and enjoy the season, Trusted Choice^® has some tips to help families prepare for risks and hazards that may come during the winter months. Agents are encouraged to pass these tips on to customers.

“Winter often brings unforeseen risks for homeowners,” says Madelyn Flannagan, Big “I” vice president of agent development, education and research. “Taking some time to make sure your home is ready for winter can prevent thousands of dollars in damage and unnecessary headaches.”

Snow or ice is the fifth leading cause of homeowners’ insurance claims. Also, according to the Insurance Information Institute (III), the average homeowners’ claim for water damage and freezing is a whopping $5,531. Follow these tips to protect you and your home from serious financial liability:

Prevent ice dams - An ice dam is a build-up of ice that blocks water drainage from the roof and the gutters. Ice dams can cause leaks from ceilings and walls that can ultimately lead to mold and other problems. To prevent ice dams, remove leaves, sticks and other debris from gutters or install gutter guards (available in most hardware home stores) that will prevent debris from getting in the gutter and interfering with drainage.

“Watch out for that tree!” - Trees and branches weakened by snow, ice and wind can snap and seriously hurt a person on your property, as well as cause serious damage to your home or car. Trimming trees and removing dead branches can help prevent serious damage and injuries.

Roof care and repair - High winds, snow and ice can damage a roof. Check the structural ability of the roof to sustain unusually heavy weight from the accumulation of snow and ice. After a heavy storm, check for water stains in attics and on any overhangs. Lastly, repair or replace split or loose shingles and fix any leaks.

Pipe dreams…and nightmares - First, the bad news: Frozen or broken water pipes disrupt hundreds of thousands of American lives every winter. The good news: You can prevent frozen pipes by following these tips.

• Keep the inside temperature of your home at 65 degrees or warmer.

• Wrap heating tape and/or standard insulation around pipes wherever possible.

• Look for pipes with cracks or leaks —they freeze first.

• Keep the inside temperature of your home at 65 degrees or warmer.

• Keep cabinet doors open during cold spells to allow warm air to circulate around pipes (particularly in the kitchen and bathroom).

• If you’re leaving your home for several days, turn off the water completely and drain the pipes, or keep water dripping through one or two faucets, as moving water prevents freezing. However, if you are leaving your home for an extended period of time, plan to turn the water off. It also helps to have someone check your home every day while you are gone.

• If your pipes do freeze, quickly shut off the water and immediately call a plumber.

Prevent personal injuries - Homeowners are liable for any injuries that occur on their property. Keep kitty litter, sand or rock salt on hand to sprinkle over frozen driveways, walkways or sidewalks. Additionally, ensure that your outdoor steps and guardrails are in good repair to prevent injuries from falls on ice.

ACT
Social Media Policy Guide Available for Agencies

Social media can be a valuable additional marketing and communications tool for independent agencies, but many agents are concerned about establishing the appropriate employee policies in order to protect the agency and maintain staff productivity when using sites like Facebook or Twitter. The Agents Council for Technology (ACT) has just published a comprehensive tool to help agencies develop their social media policies, along with two actual agency policies for firms to use as an additional resource. Click here to access the guide and the agency policies, as well as additional social media resources.

IIABA News
Big “I” Urges Senate Leadership to Pass Permanent Estate Tax Relief

On Tuesday, the Big “I” joined more than 40 business trade associations as part of the Family Business Estate Tax Coalition on a joint letter to Senate Democratic and Republican Leadership urging them to pass permanent estate tax legislation that goes beyond the bill recently considered by the House of Representatives.
 
The House-passed bill would permanently set the estate tax rate and exemption amount at this year’s levels. Currently, the estate tax has a rate of 45% with a $3.5 million exemption. If Congress does not pass a bill prior to adjourning for the year, the estate tax will be repealed in 2010 and will return in 2011 with a 55% rate and a $1 million exemption. Without permanent relief, family-owned small businesses will be unable to plan ahead and make important business decisions.

The Big “I” and its coalition partners encouraged Senate Leadership to significantly reform the estate tax to encourage investment and growth in small business by increasing the exemption amount to $5 million (per person) and reducing the tax rate to 35%. Earlier this year, the Senate passed a bipartisan amendment sponsored by Senators Blanche Lincoln (D-Ark.) and Jon Kyl (R-Ariz.) during consideration of the congressional budget that would have permanently increased the exemption amount and lowered the tax rate to the levels supported by the coalition. Unfortunately, the amendment was non-binding as are all amendments considered during congressional budget proceedings.

Many small businesses are asset-rich, yet lack liquidity to pay estate taxes when an owner passes away. There is evidence that the estate tax hinders the perpetuation of family-owned businesses because survivors are often forced to sell the business to pay the taxes.
 
Click here to view the full text of the letter.

IIABA News
Big “I” Quoted in Two of America’s Largest Newspapers

Last week, the Big “I” was quoted in the Wall Street Journal and the New York Times, providing exposure for the association that would usually cost tens of thousands of dollars or more in advertising.

Big “I” members Steve Spiro, Big “I” health care task force member and principal of Spiro Risk Management in Valley Stream, N.Y., and Tom Minkler, Big “I” executive committee member and president of the Clark-Mortenson Agency in Keene, N.H.,  were quoted in the New York Times piece, “Buying the Best Insurance for Your Business.” To read the article, click here.

To read the Wall Street Journal piece, “Dropping Medigap is Risky; Check Out Alternatives,” in which readers are directed to the Big “I” Web site for a directory of independent agents, click here.

The Wall Street Journal has the highest circulation in the United States with more than two million subscriptions, according to the Audit Bureau of Circulation (ABC). ABC also reports that the New York Times ranks third with slightly less than one million.  

Big “I” agents, experts and national spokespeople are the voice of the association, and are quoted in print, broadcast and online media on a consistent and growing basis.

ACT
ACT Presents Free Webinar on TLS Encryption

The Agents Council for Technology (ACT) recommends that independent agents and carriers implement TLS e-mail encryption wherever possible to protect sensitive client information from falling into the wrong hands. State privacy, security and data breach laws are increasingly requiring that e-mail transmissions be encrypted if they include sensitive client information. To address this topic, ACT will present another installment of its popular free webinar “Protecting Independent Agent Clients with Secure Email Using TLS” on Jan. 13, 2010 from 1:30 – 2:30 p.m. EST. The first half hour of the webinar is designed for agency business leaders and the second half hour will include a more technical discussion regarding implementing TLS on Microsoft Exchange 2003 and 2007 servers. Jim Rogers, director of distribution technology at The Hartford, and Tim Woodcock, president of courtesy computers, will present this webinar assisted by Jeff Yates, executive director of ACT. Click here to register for the session.


Trusted Choice^®
Company Donates to Relief Fund with Holiday Greetings

Sending holiday cards to agents and customers is a yearly tradition for many insurance carriers, and one company has found a creative, eco-friendly way to pass on the holiday cheer. This year, Westfield Insurance is sending an e-card instead of a paper greeting and will donate a portion of the money saved to the Trusted Choice^® Disaster Relief Fund. The relief fund was established by the Big “I” to assist those affected by man-made or natural disasters.

Click here to learn more or to make a tax-free donation to the Trusted Choice^® Disaster Relief Fund.

Best Practices
Learn What It Takes to Be a Best Practices Agency

The annual Best Practices Study originated in 1993 as an initiative to help independent agents build the value of their most important asset—their agencies. By studying the leading agencies and brokers in the country, the Big "I" hoped to provide member agents with meaningful performance benchmarks and business strategies that could be used to improve agency performance and value. The research from the leading agencies and brokers is released on an annual basis through the Best Practices Study and the agencies the study is based on are awarded Best Practices Agency status.

Agency principals often ask how an agency is selected to participate in the annual study. The Big "I" and Reagan Consulting will begin actively seeking nominations in early 2010, and interested agents should listen to the webinar “How to Become a Best Practices Agency” hosted by Shirley Lukens from Reagan Consulting.  The Big “I” webinar library is also home to webinars on topics ranging from certificates of insurance to intellectual property and more, some at no cost. Click here to view the webinar library and to access the “How to Become a Best Practices Agency” webinar. Click here to learn more about Best Practices, including how to obtain the recently released 2009 Best Practices Study Update.

Education
Take Advantage of  ACSR/NAIW Scholarships

The Big “I,” in close cooperation with the National Association of Insurance Women International (NAIW), continues to offer a scholarship program to promote and assist insurance agents and brokers’ commitment to excellence.

During NAIW’s annual June convention in Washington, D.C., the Big "I" and NAIW will award Big “I”’s: four full scholarships to take all classes required to earn the Accredited Customer Service Representative Designation (ACSR) personal, commercial or life-health designation and one scholarship to take one ACSR personal, commercial or life-health class.

Scholarship recipients will gain critical professional development skills, improve their customer service tactics, retain accounts and reduce their agencies’ errors & omissions exposure. In addition, they will be able to earn their designation online via the Big “I” Virtual University.

Applicants must be current and active members of the NAIW in good standing, must work full-time at a Big "I" member agency and must have at least one year of insurance industry experience. Applicants must intend to complete and achieve the ACSR designation within three years or take the ACSR class within one year, and should expect to continue their career in the insurance industry for at least the next three years. To download an application, click here. All applications must be postmarked no later than April 15, 2010.

Young Agents
Destination D.C.: Apply for a YAC Scholarship

During the 2010 Big "I" Legislative Conference & Convention, March 3-5, 2010 at the Marriott Wardman Park Hotel in Washington, D.C., the National Young Agents Committee (YAC) will host seminars geared specifically toward Young Agents. Events include a first-timers reception, the Young Agent attendee & InsurPac chairs luncheon and YAC Gives Back: A Benefit for InVEST Scholarships.

The Big "I" National Young Agents Committee is offering each state association two $500 scholarships to assist Young Agents who have not previously attended the Big “I” Legislative Conference & Convention. Scholarship funds will be paid to recipients’ state associations in April 2010. Interested Young Agents should return a completed application form to their state association by Feb.2, 2010 to be considered for a scholarship. State associationselect scholarship recipients.

The $1,000 Maurice Herndon Scholarship will be presented to one Young Agent who has not attended a Big “I” Legislative Conference & Convention in the past. The Young Agent recipient will receive his or her scholarship check in April 2010 after the Big "I" Legislative Conference & Convention. To be eligible for the Herndon scholarship, applicantsmust be a Young Agent member of the Big "I" and compose a 250 to 500-word essay describing why he or she should be considered for the scholarship. The essay and completed application form must be submitted by Feb. 3, 2010.
 
Click here to download both the $500 scholarship and Herndon scholarship applications. For more information, contact Bill Pierson at 800-221-7917; bill.pierson@iiaba.net. 

IIABA News
Learn More About the Violent Crime Control and Law Enforcement Act

The Big “I” Office of General Counsel has revised and updated the memo on the Violent Crime Control and Law Enforcement Act of 1994. The act, which has been in effect since September 1994, includes several insurance fraud provisions. Most notably, the act makes it illegal for anyone who has been convicted of a felony involving breach of trust or dishonesty to engage in the business of insurance or for anyone to willfully permit such a person to participate in the business of insurance – unless the person obtains a waiver issued by the authorized insurance regulator in the state where the individual wishes to engage in the business of insurance.

The act also makes it a crime to knowingly make false statements concerning an insurance company’s assets to state regulators or to make false entries in an insurance company’s books and records with an intent to deceive; embezzle money, premiums or credits of an insurance company; and obstruct the investigations of state insurance regulators.

The updated memo is available to Big “I” members who log in to www.independentagent.com and select Legal Advocacy, and then select Memoranda and FAQs.

ACT
Real Time/Download Webinar Will Feature 21-Day Challenge

The Real Time/Download Campaign will present another free webinar on Jan. 27, 2010 from 1:30–2:30 p.m. EST. The session will feature demos of more functions to show participants the full power of Real Time. It will also point out how Download has been improved and has become more important in a Real Time world. Finally, participants will learn how the new Real Time 21-Day Challenge can provide them with step-by-step guidance, whether they are newly implementing Real Time or seeking to increase its usage. Cyndy Smith, Karen Youngman and John Heinsz, three agents who are highly-knowledgeable about Real Time and Download, will lead the webinar; Cal Durland of AUGIE and Jeff Yates of ACT will also participate. Click here to register for the session.

Big “I” Markets
Follow this Agent for LLC Success

A Big “I” Markets agent recently wrote a builders risk policy on a multi-million dollar piece of property that was owned by a limited liability corporation (LLC). When the property was completed, the carrier wouldn't extend coverage for various reasons, including potential occupancy issues and insurance coverage for personal property. The agent tried other markets but kept running into limits and protection class issues when trying to find a carrier to write the business. The agent had known about Big “I” Markets for years and had placed a few accounts there, so he turned to BIM for help. Lexington underwriter Suzette Fernandez worked closely with the agent to engineer the placement, and he was able to write the account with premium in excess of $20,000. Keep this story in mind when encountering a corporate-owned LLC –Big “I” Markets may be able to help you. Visit www.bigimarkets.com to learn more.

Big “I” Flood Program
Get Disaster-Ready with Great Gifts

It always seems to happen. During every holiday season, there is a news report about a Christmas tree or menorah starting a serious house fire. Each year, millions of lives are disrupted by natural disasters ranging from earthquakes and tsunamis to floods and wildfire. But disasters large and small share a common attribute: they focus attention on the importance of disaster preparedness and the critical need to take action before disaster strikes. The trick is to convert good intentions into good deeds and, according to Acting FEMA Regional Administrator Dennis Hunsinger, there's no time like the holidays to make sure everyone is prepared.

"Disaster-ready gifts save lives and are a wonderful way of welcoming in 2010," he says. "Helping to better prepare neighbors, friends and loved ones for emergencies is a great way to say 'I care.'"

Emergency and preparedness items that make great gifts include: NOAA weather radios and extra batteries; enrollment in a CPR or first-aid class; smoke detectors; appropriate fire extinguishers for the kitchen, garage and car; disaster kits for homes, offices and autos; foldable ladders for a second-story escape in a fire; emergency car kits; the gift of a gardener to cut back combustible vegetation from wildfire-vulnerable homes and national flood insurance.

A wealth of information and preparedness tips are available from the Department of Homeland Security at www.ready.gov or from FEMA at www.fema.gov. Finally, don’t forget to check out www.independentagent.com/flood to learn all about how to access the Big "I" Flood program.