SM

SM

THERE’S NO PLACELIKE HOME

New Mexico Mutual wants you to giveus a look at your client’s workers’ compbusiness. New Mexico Mutual is offeringgift cards for fully completed applications.With excellent risk, safety and claims management services yourclients will benefit by putting their workers’ comp insurance with New Mexico’s experts in workers’ compensation.

Bring your New Mexico business home for the holidays to New Mexico Mutual.

APPROVED APPLICATIONS• Account Representative receives $10.00gift card for every application submitted and approved.*

* All applications must be submitted and approved during the program period of 8/1/2012 - 12/31/2012.

August 1 - December 31Running

www.NewMexicoMutual.com • 505-345-7260

IIANM Staff

2012-2013 Officers

ChairPJ WolffVice-ChairDiana HobbsSecretary/TreasurerGabe PortilloNational DirectorSam ConleeImmediate Past ChairScott Jones

FeaturesThis publication is intended to provide accurate and authoritative information on the subject matter covered, but is distributed with the understanding that neither IIANM, nor any contributing author, publisher, contributor or advertiser is rendering legal, accounting or any other professional service and assume no liability whatsoever in connection with its use. Further, the electronic links to our advertisers and/or contributors found in this publication are provided as a courtesy to our readers and do not necessarily indicate an endorsement by IIANM.

News items from members of Independent Insurance Agents of New Mexico and the general insurance industry are encouraged. The advertising deadline is the fifteenth day of the month, preceding publication.

Advertising rates are available upon request.

Please contact Rachel Sheffield at rachel@iianm.org for details

IIANM's HOLIDAY PARTY 05

LEGISLATIVE MIXER 05

5 Ways to Develop Producers 07

Agency Use of E-Signatures, Paperless Workflows 09

Choosing the Right Holiday Gift for your Client 10

Deductibility of IIANM Dues 10

Preventing Retirement Disaster 15

Animal Liability & Umbrella Policies 16

Sales Diagnosis Plan 18

6 Tips to Extract the Best Talents Millennials Offer 20

IIANM 2013 Calendar of Events 22

Keeping Customers for Life 25

The Greatest Insurance Story Never Told: Harmony, Not Noise 27

Community Corner 28

Tech Talk 12

December's Clickable Calendar 30

Odds n Ends 31

IIANM's 2012 Company Partners 04

In Every Issue

Advertiser Index

"The Voice" of Independent Agents since 1934

President/CEOThom Turbett

Vice President of Member ServicesConsuelo Trujillo

Vice President of Insurance ProgramsJulie A. Franchini

Communications DirectorRachel Sheffield

Member Services Associate Renee Trujillo

“La Voz” is the official monthly e-publication of the

Independent Insurance Agents of NM 1511 University Blvd. NE Albuquerque, NM 87102.

(505) 843-7231. Fax (505) 243-3367. Web site www.iianm.org.

La

oVZ

Acuity 29

Burns & Wilcox Back Cover

Litchfield Special Risks 06

Lovelace Health Plan 14

Market Finders, Inc. 08

MexiPass 21

Mountain States Insurance Group 11

New Mexico Health Insurance Alliance 24

New Mexico Mutual 02

Trustco 24

SM

SM

THERE’S NO PLACELIKE HOME

New Mexico Mutual wants you to giveus a look at your client’s workers’ compbusiness. New Mexico Mutual is offeringgift cards for fully completed applications.With excellent risk, safety and claims management services yourclients will benefit by putting their workers’ comp insurance with New Mexico’s experts in workers’ compensation.

Bring your New Mexico business home for the holidays to New Mexico Mutual.

APPROVED APPLICATIONS• Account Representative receives $10.00gift card for every application submitted and approved.*

* All applications must be submitted and approved during the program period of 8/1/2012 - 12/31/2012.

August 1 - December 31Running

www.NewMexicoMutual.com • 505-345-7260

Thank You!

THANK YOU to the members of

the IIANM 2012 Partners Program.

The companies listed below have made a

commitment to support the strongest agents’

association in New Mexico.

In turn, as members, please show your thanks by

utilizing their varied products and services.

Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 5

The Whole Office is invited toIIANM’

s Holiday PartyJoin us for

cocktails & hors d’ oeuvres!

Don’t forget your checkbooks - Young Agents will be holding their

YA REVERSE RAFFLE! You could win BIG!

December 6, 20124 - 8 pm

Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 7

“If you’re in an agency where $25,000 or $30,000 a year is a good number [for new business commission], and guys with gray hair are kind of putting those numbers up, there’s no reason why that needs to be your bench-mark,” he says. Doran recommends using targets from model agencies to help set sales goals, which will vary by region, market and agency size.

Develop a Network of Centers of InfluenceTo get leads on prospects, producers should establish relationships with other professionals in their community whose clients’ insurance concerns may cross with them, McNeely says. Some good sources of referrals include accountants, attorneys, real estate agents, and commu-nity and business leaders.

Akin to a mentor, an agent’s relationship with these types of professionals also needs to be a two-way street. “You can’t be saying, ‘Send me some leads,’…and he never hears anything from some business you might refer to him,” McNeely adds.

Some young producers claim they don’t have friends who are considered centers of influence. But Doran says that will change over time as they too develop their profes-sional careers.

“This is a long-term kind of process of developing a busi-ness generation orientation with folks [who] are today and are going to be going forward highly influential in your marketplace as trusted advisors,” he says.

In addition, McNeely says producers can also look for referrals from current clients. “If you’re doing a really good job for one of your clients, just ask them, ‘Is there any-body [who] you think I should talk to?” he says.

Be Highly DisciplinedThe most effective producers aren’t necessarily the smartest people and didn’t go the best schools—but they do work the hardest and are focused and methodical, Doran says.

“You’ve got to be the Energizer Bunny to be successful in this industry,” he adds. “And it’s born out [of] our experi-ence that those [who] work really hard and really smart tend to be the most successful, even if they’re not the smartest.”

Listen to the full audio of Tom Doran and Brian McNeely’s presentation from this year’s Big “I” Young Agents Lead-ership Institute.

In addition, hear what a panel of young agents say about their challenges and successes.

Developing young talent is crucial to an agency’s valua-tion and long-term perpetuation, an industry consultant says. But picking the best candidate isn’t the sole key to success—agencies also need to help young profession-als cultivate their skills and abilities.

Tom Doran and Brian McNeely of Atlanta-based Reagan Consulting, which authored The Young Producer Study, offer five tips for helping entry-level and early career pro-ducers succeed:

Train and Mentor Agencies should not only train young producers on cover-ages and other insurance topics, but they should provide comprehensive sales training as well, McNeely says. And telling producers to simply go out on the streets and sell doesn’t qualify as internal training. “Sales training is something that you always fall back on,” he says. “It helps you create your sales process, it gives you a leg to stand on and it will sustain you through a lot of different issues.”

In addition, agencies should have mentoring programs for early career producers. Whether it’s using a structured program or teaming a seasoned producer and young em-ployee together, McNeely says it must be a long-term and “give-and-take process” between both parties.

His advice to mentees: “You just can’t be going to a men-tor and sucking all the life out of him, if you will, and giv-ing him nothing in return. People [who] are good mentees are able to add value to their mentor.” That means young producers should assist their mentors with sales calls and other duties to help them sell, he says.

Develop a SpecialtyAs young producers face the challenge of overcoming “reverse ageism,” Doran says they can stand out by spe-cializing in a market.

To pick a niche, he says there are three factors to con-sider: What am I passionate about? Will it make money? What can I be the best at in my marketplace? Doran says that his firm has found that successful producers write generalist business and “two or three things that they can be the very best [at] in their marketplace.”

“If you’re the best in your marketplace at whatever it is that you’re doing, the fact that you’re 30 or 32 years old is not going to be a hindrance to you over the long run,” he adds.

Set Your Sights High Early career producers should look to exceed expecta-tions, instead of simply meeting an agency’s status quo, according to Doran.

by Victoria Goff, IA online editor

NEW MExICO’S

5 Ways to

Develop Producers

Page 8 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 9

Page 8 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

By using electronic signatures and e-delivery of docu-ments, independent agencies can improve the efficiency of their workflows and deliver a better customer experi-ence. To help agencies adopt this approach, ACORD has released a best practices guide for using effective electronic signature, e-delivery and electronic archival processes.

The report, “Guidelines for e-Signature and e-Delivery in the Insurance Business,” is penned by international law firm Locke Lord.

It covers the federal ESIGN law and UETA, the state model law adopted in 47 states (including New Mexico), which permit the use of electronic signatures, electronic delivery and electronic records to satisfy the “in writing” legal requirements for transactions. The laws also permit companies to satisfy statutory record retention require-ments solely through the use of electronic records.

ESIGN and UETA only provide legitimacy for electronic signatures, e-delivery and electronic documents, according to the report. All of the other requirements relating to the execution of documents contained in a particular law must still be satisfied—for example, the requirement to verify or confirm consumer’s receipt, or the requirement that a certain election be made before completing an application.

The guide also explains how the laws interrelate when both are in effect in a state, and it details other key information for agencies:

Electronic signature vs. digital signature. “Electronic signature” is the better term to use when referring to a consumer signing a document online because a “digital signature” can also mean a method by which two devices establish a secure, recognized connection. These and other terms are defined in the report’s glossary.

Special consumer disclosures. ESIGN and UETA per-mit the use of electronic signatures and electronic records even for “special consumer disclosures,” which are those contained in the insurance code specifying the disclosure be made to the consumer in writing and be signed by the consumer. Examples of such disclosures include those about uninsured/underinsured motorist coverage. ESIGN and UETA also require the electronic record of special consumer disclosures be provided or made accessible to the consumer for later reference.

Consumer consent. Both statutes require the party initiating the e-signature and e-delivery to obtain the consumer’s consent for both completing the transaction electronically and receiving disclosures electronically. Several states also require the consumer to reasonably

demonstrate the ability to open an electronic record in the case of special consumer disclosures. It is good practice for an agent to determine this upon receiving the consum-er’s other consents.

Signature authentication. In addition to getting the con-sumer’s consent to sign a document using an electronic signature, agencies need to authenticate the identity of the signer. This is often done by requiring the signer to enter some information that only he and the agency know. The agency’s electronic signature tool should also create an audit trail surrounding the signature process and apply a tamper seal to the electronic document upon signing, so it cannot be altered.

Electronic record retention. ESIGN and UETA allow companies to store electronic records in place of paper to satisfy their legal requirements to retain records in writing, provided the electronic records are stored accurately and are accessible on a timely basis to all persons who are legally entitled to access such records.

Evidentiary tests. Agencies and other companies that retain electronic documents are going to have to meet the same evidentiary tests that they must meet for written documents in order for them to be admissible in court. The report explains these tests and agencies should care-fully review them to make sure their “records custodian” with first-hand knowledge of their processes can testify that their electronic signatures and electronic documents meet each of these tests.

Exceptions to the laws. ESIGN and UETA delineate a few types of documents as exceptions where elec-tronic documents are not given legal recognition. The exceptions pertinent to the insurance business where the notices may not be given solely via e-delivery are ones for termination of health insurance or benefits of life insurance, excluding annuities. Also, the statutes do not provide legal recognition to electronic signatures and electronic records relating to wills, codicils or testamen-tary trusts.

Agents are encouraged to review the full report on the ACORD website for further details.

The Agents Council for Technology hopes this report also will provide a catalyst for carriers to support agency efforts to use electronic signature tools and move to paperless workflows, such as e-delivery and retention of electronic documents, and to provide their agents with guidelines for using these tools and workflows. In addi-tion, ACT encourages agency management system ven-dors to integrate with the electronic signature tools their agencies are using.

New Report Supports

Agency Use ofE-Signature, Paperless Workflows

ACORD report covers best practices for electronic signatures, document delivery and retention.

by Jeff Yates

Page 10 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

1. Be personal but professional. A gift is a personal thing. When you ship a crate of Pepperidge Farms to someone it says... well what the hell does it say? Unless that person is a declared processed cheese and meat afi-cionado, it says you didn't care enough to be personal with your gift.

2. Deliver by December 20. Get it there before Christ-mas, the traditional holiday gift-giving season date. Re-gardless of faith, if you are giving a holiday gift, then the traditional date of observation for delivery and gift opening is the 25th of December. By getting the gift delivered by the 20th, you can observe the tradition.

3. Food & alcohol say nothing about you or the client. I receive food often as a gift, and as an observant "foodie" I love it. The problem is that I just don't often remember the giver of the food. It goes into the break room and the office vultures descend upon it with vigor until only frayed paper doilies are left.

4. Gift cards are for college students... not executives. What does a gift card say to your client except, "I couldn't think of anything, so I decided to give you money."

5. The note means as much as the gift. The note tells you everything about the gift, the relationship and the thoughtfulness of the giver. Take the time to write the per-sonal note and the gift will have the desired impact.

6. (This is an important one) Keep the logos on your shirts, not your client gifts. It's a gift, not a branding opportunity. I had to learn this the hard way. I always used to give logo-ridden gifts until a client, (gratefully before I sent his gift), showed me the closet they kept all of the logo "crap", (his word), that he received. Great instruction for me.

Choosing the RIGHT Holiday Gift for your Client is Important.

If you are going to thank your clients this holiday season for helping to make you successful, a recent article on CBSnews.com

outlines a few rules to consider when selecting that perfect gift, none of which includes a fruitcake (the gift that keeps on giving):

by Steve White

Deductibility of dues / Lobbying Percent

By federal law, we are required to provide each of our members with the following disclosure regarding their 2011-2012 dues.

Dues to the Independent Insurance Agents & Brokers of America (IIABA) are not deductible as a charitable contribution but may be deductible as an ordinary and necessary business expense. To the extent that IIABA engages in lobbying, the portion of the dues that relate to lobbying expenses is not deductible as an ordinary and necessary business expense. This law was enacted in 1993, effective January 1, 1994 [Section 13222 of the Omnibus Budget Reconciliation Act of 1993 (OBRA 1993)]. The non-deductible portion of dues for 2011-2012 is 22.29%.

The following is a recap of the non-deductible portion of dues for the past six years:

FY 2006-07 Estimated 22.98% Actual 24.93%

FY 2007-08 Estimated 25.16% Actual 17.99%

FY 2008-09 Estimated 18.23% Actual 17.35%

FY 2009-10 Estimated 17.72% Actual 21.37%

FY 2010-11 Estimated 21.92% Actual 22.19%

FY 2011-12 Estimated 22.83% Actual 22.29%

FY 2012-13 Estimated 22.71%

Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 11

Page 10 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

Underwriting AppetiteMountain States’ underwriters have the skills, flexibility and decision-making abilities to provide insurance to meet our customer’s needs. We are known in the Southwest region as commercial construction specialists, but we have a broad risk appetite, and entertain many different types of accounts. Our underwriters are versed in all classes of businesses, and work closely with our agents to place quality risks.

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RESTAURANTSCafés & Bakeries

Delicatessens

High-end Dining

Family Style Restaurants

Franchised Restaurants

CONSTRUCTIONElectrical Contractors

HVAC Contractors

Glaziers

Metal Building Construction

Garage Door Installers

Landscapers

SERVICEPackaging

Auto Body and Repair Shops

Janitorial

Tire Sales and Service

Water Companies

Stable – Secure – Permanentwww.msig-nm.com – 505.764.1400

5051 Journal Center Boulevard N.E., Albuquerque, New Mexico, 87109

Page 12 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

SteveANdErsoN.com

by, Steve Anderson

Use Complex Mobile Device Passwords

Passwords seem to be the bane of our existence. But, until better technology comes along, we are stuck with having to manage multiple passwords for multiple websites as well as multiple devices. We have written before about how to use strong passwords.

Because of the difficulty managing multiple passwords, it's easier to choose a simple password that you can use in multiple places. Unfortunately, this can be very dangerous, especially when you're trying to protect private client data. This is particularly true for mobile devices that might only allow a small number of numeric digits. For example, the iPhone requires only four numeric digits.

But, you should make sure that you do add a passcode to your device. While it can be a pain - it is the first line of de-fense to protecting your information and maybe your client's personal information.

At the same time, try to make sure your password is not easy to guess.

Daniel Amitay, a New York-based developer of an iPhone security app that requires users to set a four-digit passcode, disclosed to the Wall Street Journal in July what the most popular PINs were among his more than 200,000 users.

If everyone had chosen a PIN at random, each PIN would have about 20 users. But instead, more than 15% of users, or 30,000, chose one of just 14 common PINs: 1234; 2580 or 0852 (the keys at the center of the keypad, in order or reverse order); 5683, which spells "love"; or four identical digits, such as 0000 or 5555.

As a reminder, the best way to protect yourself is to get creative with passwords. Here are a few suggestions:

• Don't use personal information that can be easily found, like a birthday, an address, a zip code, or a high school graduation year.

• Voicemail PIN numbers often can have up to 10 dig-its, so go beyond the typical four digits.

• Get creative. For example, spell your favorite 10-letter word.

• Android devices allow you to create a "pattern pass-word." You run your finger over a three by three square of dots to create a pattern. This becomes your "pass-word." You can mimic this function on an iPhone using numerals.

• For email passwords, utilize letters (capital and lower case), numbers and symbols.

• Avoid using the same password for ALL of your ac-counts. This helps to limit your exposure in case one of your accounts gets hacked. By using multiple pass-words, all your accounts won't be jeopardized in one instance.

*****************************

(Always feel free to email me with comments, new ideas or products that have worked for you. I will check them out and spread the word!)

Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 13

Page 12 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

EmployEE SkillS TESTing

Finding just the right person to fill that empty slot in your office can be a

challenging task. One step you should take in the hiring process is testing the level of skill the potential candidate has based on the requirements of the job.

eSkill Testing specializes in providing employers with an online skills testing service.

Online tests are available for a wide range of skills includ-ing general computer skills, typing and data entry, general office skills, and maybe most importantly for an insurance agency, Microsoft Office product skills.

Two pricing options are available. The first option is for an unlimited usage subscrip-tion plan with annual rates starting at $2,920. Shorter term subscriptions are also available.

For those agencies that prefer more flexibility and don't hire a large number of people, eSkill offers test credit pricing. Each time a candidate completes a test, which can include any number of subjects

and questions, a single credit is deducted from your Test Credit balance. Therefore, with a single test credit you can evaluate a candidate's skills in several fields of knowledge. Pricing starts at $280 for 10 credits that can be used at any time.

With a testing service like eSkill you can make sure a po-tential employee has the skills they say they have before you hire them.

Mobile ACORD Forms

Tablet devices are becoming an increasingly important tool for anyone who interacts with clients outside the of-fice. One helpful process is capturing information into an ACORD form for later submission to the carrier.

ACORD One is a new web app product that allows you to fill out an ACORD form using virtually any mobile device -- any smartphone or tablet device that has Internet ac-cess. While not all ACORD forms are currently available, the most popular ones are online, with new forms being added frequently.

The form data is entered into fields using the mobile device's keyboard or voice dictation capability. Partially completed forms can be saved on the device or to a web portal for later access. You can save as many partially completed forms as you wish. One of the nice features of the service is the ability to capture a signature using your mobile device as a signature pad. Once the form data is completed, it is merged, along with the graphic signature, with the PDF ACORD form and then it is emailed to any address you specify.

Completed forms are created as flattened PDFs, which means you can't change anything on the form once it has been sent finalized. This protects the legal nature of the document informa-tion and signatures. Forms can also be completed by internal office staff by logging onto the Web version of the application. The pro-ducer can then pull up the completed form to obtain the necessary signa-tures.

This service is designed as a Web app, so it will work on any of your mobile devices or on a laptop using the Chrome or Safari browsers. The cost is $50 per month for unlimited forms.

Online Human Resources Management

One of the most difficult tasks for any size agency is managing HR duties well. Cloud-based applications are making it easier to automate these functions and help make up for the lack of staff within their organization.

TribeHR is an affordable solution that organizes and streamlines human resources functions. TribeHR is simply a virtual HR department for small businesses. It will help your agency master a variety of tasks such as managing employee information, tracking the number of sick versus vacation days as well as draft job openings. Their monthly subscriptions vary, depending on what you're looking for:

• $2 per user for a Starter package

• $5 per user for a Group package

• $10 per user for a Team package

TribeHR walks you through the steps to create your web-site that will host all of your agency HR information. You

then add information to your home page or "overview," such as the number of vacation and sick days you and your employees have, job postings, company events, and schedules.

AWARDS & RECOGNITION TOp RANkED ppO IN NEW MExICO NCQA’s Private Health Insurance Plan Rankings, 2011-2012 Lovelace Insurance Company, Inc.

4-STAR RATING Center for Medicare & Medicaid Services Lovelace Health Plan

BEST plACES TO WORk Modern Healthcare Magazine for 2011 Lovelace Women’s Hospital Lovelace Westside Hospital

ROADRuNNER RECOGNITION Quality New Mexico Lovelace Women’s Hospital Lovelace Westside Hospital

BREAST IMAGING CENTER Of ExCEllENCE College of Radiology Lovelace Women’s Hospital’s Diagnostic Imaging Center

Only hospital in Albuquerque recognized as TOp pERfORMER ON kEy QuAlITy MEASuRES The Joint Commission Lovelace Westside Hospital

Only hospital in New Mexico CARf ACCREDITED IN SIx pROGRAMS Lovelace Rehabilitation Hospital

GET WITh ThE GuIDElINES STROkE SIlvER pluS pERfORMANCE AChIEvEMENT AWARD American Heart Association/ American Stroke Association Lovelace Medical Center

BEST plACES TO WORk New Mexico Business Weekly for 2011 Lovelace Health Plan

things just keep getting better.

A few years back, we began telling you that you’re going to

love Lovelace. But we didn’t just tell you – we began to show

you. We made a commitment to change the way healthcare

is delivered not just here in Albuquerque, but in the whole

state. We made a commitment to hard work and providing

quality healthcare, to recruiting the best employees and to

providing affordable, accessible health plans to businesses

and individuals.

Our commitment is showing results. Today, Lovelace Health

System is proud to be recognized by these independent

organizations. But we’re not finished. Our focus remains on

bringing the best health care to you. And giving you even

more to love about Lovelace every day.

It’s proof positive that we’re changing the way healthcare

is delivered.

smile. feel the love.

LHP 976-0112 LINC 483-0112

lovelace.com

Lovelace Health System, Inc. • Lovelace Insurance Company

AWARDS & RECOGNITION TOp RANkED ppO IN NEW MExICO NCQA’s Private Health Insurance Plan Rankings, 2011-2012 Lovelace Insurance Company, Inc.

4-STAR RATING Center for Medicare & Medicaid Services Lovelace Health Plan

BEST plACES TO WORk Modern Healthcare Magazine for 2011 Lovelace Women’s Hospital Lovelace Westside Hospital

ROADRuNNER RECOGNITION Quality New Mexico Lovelace Women’s Hospital Lovelace Westside Hospital

BREAST IMAGING CENTER Of ExCEllENCE College of Radiology Lovelace Women’s Hospital’s Diagnostic Imaging Center

Only hospital in Albuquerque recognized as TOp pERfORMER ON kEy QuAlITy MEASuRES The Joint Commission Lovelace Westside Hospital

Only hospital in New Mexico CARf ACCREDITED IN SIx pROGRAMS Lovelace Rehabilitation Hospital

GET WITh ThE GuIDElINES STROkE SIlvER pluS pERfORMANCE AChIEvEMENT AWARD American Heart Association/ American Stroke Association Lovelace Medical Center

BEST plACES TO WORk New Mexico Business Weekly for 2011 Lovelace Health Plan

things just keep getting better.

A few years back, we began telling you that you’re going to

love Lovelace. But we didn’t just tell you – we began to show

you. We made a commitment to change the way healthcare

is delivered not just here in Albuquerque, but in the whole

state. We made a commitment to hard work and providing

quality healthcare, to recruiting the best employees and to

providing affordable, accessible health plans to businesses

and individuals.

Our commitment is showing results. Today, Lovelace Health

System is proud to be recognized by these independent

organizations. But we’re not finished. Our focus remains on

bringing the best health care to you. And giving you even

more to love about Lovelace every day.

It’s proof positive that we’re changing the way healthcare

is delivered.

smile. feel the love.

LHP 976-0112 LINC 483-0112

lovelace.com

Lovelace Health System, Inc. • Lovelace Insurance Company

exceptional care for

Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 15

by, Dave Evans

AWARDS & RECOGNITION TOp RANkED ppO IN NEW MExICO NCQA’s Private Health Insurance Plan Rankings, 2011-2012 Lovelace Insurance Company, Inc.

4-STAR RATING Center for Medicare & Medicaid Services Lovelace Health Plan

BEST plACES TO WORk Modern Healthcare Magazine for 2011 Lovelace Women’s Hospital Lovelace Westside Hospital

ROADRuNNER RECOGNITION Quality New Mexico Lovelace Women’s Hospital Lovelace Westside Hospital

BREAST IMAGING CENTER Of ExCEllENCE College of Radiology Lovelace Women’s Hospital’s Diagnostic Imaging Center

Only hospital in Albuquerque recognized as TOp pERfORMER ON kEy QuAlITy MEASuRES The Joint Commission Lovelace Westside Hospital

Only hospital in New Mexico CARf ACCREDITED IN SIx pROGRAMS Lovelace Rehabilitation Hospital

GET WITh ThE GuIDElINES STROkE SIlvER pluS pERfORMANCE AChIEvEMENT AWARD American Heart Association/ American Stroke Association Lovelace Medical Center

BEST plACES TO WORk New Mexico Business Weekly for 2011 Lovelace Health Plan

things just keep getting better.

A few years back, we began telling you that you’re going to

love Lovelace. But we didn’t just tell you – we began to show

you. We made a commitment to change the way healthcare

is delivered not just here in Albuquerque, but in the whole

state. We made a commitment to hard work and providing

quality healthcare, to recruiting the best employees and to

providing affordable, accessible health plans to businesses

and individuals.

Our commitment is showing results. Today, Lovelace Health

System is proud to be recognized by these independent

organizations. But we’re not finished. Our focus remains on

bringing the best health care to you. And giving you even

more to love about Lovelace every day.

It’s proof positive that we’re changing the way healthcare

is delivered.

smile. feel the love.

LHP 976-0112 LINC 483-0112

lovelace.com

Lovelace Health System, Inc. • Lovelace Insurance Company

Recently, millions of Americans and Caribbean residents have dealt with the ravages of Hurricane Sandy. Major storms are often a reminder of the human tendency to procrastinate—just ask any independent agent who has received a call from a con-sumer asking to purchase flood insurance as a storm heads to their area.

The United States is facing another very real catastrophe, and that is the lack of meaningful retirement savings by a broad swath of the population.

Studies estimate that the average balance in the 50 million 401(k) accounts is just more than $60,000, according to the Employee Benefit Research Institute. People within 10 years of retirement have saved an average of only $78,000, and more than a third of them have less than $25,000. More than half of U.S. workers have no retirement plan at all.

With Social Security averaging $14,780 a year for individuals and $22,000 for couples, many Americans will exhaust their savings in just a few years. The lack of real wage gains, low-interest rates and volatile stock returns have resulted in tepid account balances for many working Americans.

There have been a myriad of initia-tives to raise awareness of the is-sue. The latest was National Save for Retirement Week, which was even recognized by the U.S. Senate on a bipartisan basis.

But the national campaign didn’t seem to garner much

attention. According to a survey conducted by Plan

Sponsor’s e-newsletter News-Dash, 86% of responding read-

ers said their companies did nothing. Only 6% reported their

companies used an education cam-paign offered by a retirement pro-

vider. And half of readers who made comments said they didn’t know that

week was National Save for Retire-ment Week. Those who were aware ex-

pressed doubt that such a week is helpful to encourage individuals to save.

Just how big is the potential prob-lem? There are 75 million baby boomers

nearing retirement, according to a U.S News and World Report story.

In addition to a person’s health status, some studies show that financial resources are the

next biggest factor influencing when a person de-cides to retire. Companies need to be proactive

in encouraging broad participation in their 401(k) plans, or they could find themselves with a signifi-

cantly older workforce. Older employees can be very valuable and productive—when they choose to work

rather than needing to continue working beyond the customary retirement age.

Independent insurance agents would serve their clients well to remind them of age

discrimination rules—that is, companies cannot dismiss employees due to age. Thus, organizations need to have a mean-ingful strategy to encourage retirement savings on behalf of their employees. Don’t wait for the storm to approach to make adequate preparations.

Dave Evans is a certified financial planner and an IA L&H contributing editor.

Preventing the Retirement Disaster

Many have inadequate retirement savings, studies show.

Page 16 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

Animal Liability & Umbrella policies

Information provided by the Insurance Information In-stitute (www.iii.org) shows why a significant number of insurers issue homeowners policies with animal liability exclusion endorsements. In fact, Insurance Services Office (ISO) has rolled out a “canine exclusion” endorsement in the Homeowners 2011 program.

Each year in the United States, there are about 4.7 mil-lion injuries from dog bites, 900,000 of the bites require medical treatment, 50 percent of the bites happen at the residence where the dog lives, 33 percent of all dollars paid out for homeowners policy liability coverage can be attributed to dog bites, $412 million was paid by insurers for dog bites in 2009, and the average dog bite claim was a bit over $24,000.

Since many homeowners policies do not cover animal liability (or in the case of ISO, canine liability), it begs the question of how personal umbrella and excess liability poli-cies respond for dog bites and other animal liability claims.

It’s important to remember that excess liability policies are known by various names and all respond differently. Each policy is different and no analysis of a claim can take place without reading the policy. How an excess or umbrella policy responds to an animal liability claim (or any claim for that matter) depends on the type of policy in question.

An umbrella policy (sometimes called “broad form um-brella”) typically increases the underlying policy limits by $1 million or more and in addition provides coverage for some claims that the underlying policies do not cover. Relating to animal liability claims, therefore, it’s possible that some umbrella policies would respond for an animal liability claim even if excluded by the homeowners policy. This is often referred to as a “drop down provision” and in such circumstance a “Self Insured Retention” or “Retained

Limit” applies, typically $250 to $1,000 on personal um-brella policies. Each umbrella is different so it’s important to read each policy to determine coverage.

A following form policy exactly tracks the underlying poli-cies in all respects. Therefore, if the homeowners policy covered an animal liability claim so, too, would a following form policy. Likewise, if the homeowners policy excluded an animal liability claim, the following form policy would also exclude the claim. Each following form policy is different so it’s important to read each one to determine coverage.

An excess liability policy typically provides only higher lim-its of liability above the underlying policies and does not cover claims that are excluded by the underlying policies. It’s possible, however, that an excess liability policy would exclude a claim that would be covered by an underlying policy. As it relates to an animal liability claim, an excess policy would typically respond only if the underlying policy also responded. Even if the underlying policy did respond, the excess liability could exclude the claim. Each excess liability policy is different so it’s important to read each one to determine coverage.

If the underlying homeowners policy excludes an animal liability claim, the most likely policy to respond is the umbrella policy. As pointed out earlier, each umbrella is different. Some umbrella policies will cover animal li-ability claims that are excluded by the homeowners policy (subject to the Self Insured Retention) while others will exclude them.

Agencies looking for a stand-alone animal liability market can look to various sources for the coverage.

So, put a muzzle on Rover, read your policies, and hope for the best!

Since many homeowners policies do not cover animal liability (or in the case of ISO, canine liability),

it begs the question of how personal umbrella and excess liability policies respond for dog bites and other animal liability claims. For insureds with an

animal exposure, an umbrella policy may be critical.

by David Thompson

Page 16 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

Animal Liability & Umbrella policies

Page 18

Here’s an easy-to-use template to follow in conducting an analysis of how you performed in 2012. You can focus this analysis on sales and/or marketing, or you can use it to analyze other departments or the entire company. If com-pleted thoroughly, it will provide valuable insights which can be used when building your next year’s sales plan.

Sales Objectives for 2012 / how many were achieved These are the “big picture” goals and objectives which you established at the beginning of the year, and they were targeted to be accomplished during this year.

Some examples might be:

• “To Grow Revenue in the Southwest Region by 25%”

• “To expand our sales team by adding 2 new Sales Executives”

• “To open a new office in New York”

• Go through the list and check off which were achieved and you’re done!

Sales Quota/Targets for 2012 vs. actual performanceThis is where you examine your actual sales numbers and compare them to your targets. There are dozens of

programs to conduct sales analysis, and you should have ready access to these figures. At a minimum, you should evaluate the following:

• Total Sales Revenue Achieved as a % of what was assigned

• Total sales by rep/region versus what was assigned

• Comparison of these sales results to the past 5 years’ results

• Amount of Revenue from NEW accounts versus total revenue (Growth)

• Key Sales Ratios

a. # of inquiries that convert to qualified opportunities (% qualified)

b. # of qualified opportunities that closed (the closing ratio as a %)

c. Average order amount

d. Average time to close an order

e. How many opportunities are in the pipeline?

Of course, you can spend a lot of additional time digging deeper into these numbers, but the above will give the management team a good snapshot of sales performance and results.

Sales Diagnosis Plan

I once knew of a company that seemed obsessed with coming up with “Next Year’s Plan”. Every year about this time, the key sales and marketing managers were called in and told that they had to put together “The Plan” for next year, and that it was critical this be completely done and ready to announce to the troops by the end of December. The rev-enue targets needed to be in place, the organization should be finalized, accounts and territories completed, the bonus plan approved and everything must be ready to “rock n’ roll” so they could get off to a fast start in the coming year.

Something was missing, I wondered. What about the year we’re just completing? Shouldn’t we take a long hard look at what we got right, and where we fell short? Shouldn’t we take a PAUSE, look deeply into our performance, and criti-cally evaluate our performance before we dash willy-nilly into planning for the future?

Fortunately, wiser heads prevailed and this company – a leading technology firm --- decided to perform a thorough analysis and because of what they learned were able to chart a much more accurate path into next year’s sales success. What about your company?

by Patrick McClure

Highlights for the Year

This is a review of the highlights of the previous year or planning period with particular attention paid to any stra-tegic achievements. Included here would be key achieve-ments and a brief explanation of why they occurred i.e., number of new accounts, new business vs. sales to exist-ing customers, improvements in recurring revenue, chang-es in client size, wins vs. competition, market share, etc.

Lowlights for the year

The next part reviews the lowlights of the previous year. Included here are the key shortcomings and a brief ex-planation of why they occurred. While this section can be “painful” to review, it has the benefit of helping focus on areas offering potential for improvement and frequently points to areas that, once improved, offer significant payback.

SWOT Analysis

The next section is a SWOT Analysis. It details strengths, weaknesses, risk assessment (threats) and opportunities for the coming year. Given the highlights, lowlights, and challenges you are facing, where are the best opportuni-ties for you to focus on in the coming year.

An example of a SWOT analysis for a small manufactur-ing company:

STRENGTHS• Custom Manufacturing excellence

• Management Team Experience

• Experts in Industry

• Products built to last forever

• Engineering Excellence

• Loyal staff

• Strong customer base

WEAKNESSES• Lack of Marketing & Advertising

• No Sales Management

• Management Conflicts and Churn (lack of stability)

• Weak Sales Volume

• Minimal Lead Generation

• Lack of CRM, accountability

• Weak Manufacturing Economy

OPPORTUNITIES• Rebranding

• Capturing new markets

• Increased Marketing and social networking to drive leads

• Develop outsourced services

• Increase service revenues, support contracts, upgrades, spares

• Excess Capacity to Utilize

THREATS• Lack of funds to travel

• Brand not visible in marketplace

• Competition

• Morale problems due to low production and rev-enue

• Uncertain Economic conditions

• Not a full service solution set

• Not keeping pace with technology

Top 3 Problem Areas to Fix

Given the above analyses, it should become evident where the problem areas might be. In the sales arena, you would look for where the biggest LOSS of customers/prospects occur, or where the sales team is most chal-lenged. For example, you might find that your sales-people are excellent at presenting their product/services, but they may be weak at finding and developing new business. Or, the challenge for your team is weakness in handling common objections, resulting in failure to close sales. There are a myriad of potential problems, you are looking for the “top 3” that if fixed will result in huge improvements in performance.

Top 3 Opportunities for Growth

On the plus side, you should also uncover some “silver bullets” that will allow you to rapidly grow your business and capture market share. One of my clients learned that they were not sending copies of invoices from inside sales to their outside sales reps, thus creating confusion among their customers and losing potential upside business. They were sitting on $2 million in potential business locked away in file cabinets at headquarters, and they didn’t even know it!

Take advantage of this time, right now, to evaluate your performance. You might be surprised at what you’ll discover!

Patrick McClure, Sr. Sales & Customer Service Training Consul-tant of Lighthouse Consulting Services, LLC, is a speaker, train-er, consultant, and author who enjoys working with individuals and corporations to help them achieve maximum performance. He has dedicated his practice to helping others become more successful. To learn more, email patrick@lighthouseconsulting.com or call (310) 453-6556, extension 406.

Page 20 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

6 Tips to Extract the Best Talents

OffErby Rachael Rizzi, MBA, CSRM, CISR

afforded the ability to meet these goals. While Millennials enjoy the perks of money, they recognize the value of a balanced life and will gladly sacrifice riches and accolades for the type of fortune that money can’t buy–a happy work environment, vacation time, feeling that their work means something, or the ability to spend time with their family and friends.

Bring It On!

One of the biggest myths out there is that Millennials are not capable of being loyal and staying with a company. While I am confident that raw statistical data on average tenures would support this position it is not for the reasons you may think. Millennials thrive on challenge and the op-portunity to contribute in a way with which they connect. In other words, they don’t want to be good at doing the same thing for the rest of their lives like their predecessors. They want to be challenged. This doesn’t mean that they have to change positions or even companies. On the contrary, Millennials will follow you into battle, guns blazing, for the duration of the war IF they are part of the challenge. Change their goals, charge them with finding a solution to a productivity issue, cross-train them in another department, or elicit their help in innovating in technology. Get creative and think outside of your box!

Embrace the Triple Bottom Line

In addition to a lack of connection to their personal re-sponsibilities in a company, nothing will get a Millennial to jump ship faster than a company whose focus is primarily on profits. As a generation Millennials are very conscien-tious about the environment as well as the way people are treated. They will band together at the speed of light to boycott both products and employers whose gains are ill begotten through exploitation or any perceived wrongdoing. Companies who balance environmental and social respon-sibilities with fiscal ones have a much higher likelihood of keeping employees committed, as there is nothing Millen-nials love more than a cause (or in this case) a company to stand behind.

Mentor to Motivation

First, you have to be crystal clear on the fact that Millen-nials do not revere or respect those who have gotten their

People often ask me how I gained so much knowledge in commercial insurance at such a young age, to which my answer is always that I was raised by the best. As the old adage goes, it takes a village to raise a child; it also takes a village to raise a professional.

A lot of buzz lately indicates that industries in all sectors of business are in a race to bridge the gap between soon to be retirees and up and coming talent. The shrewd among the pack realize that the key to this is raising strong Millen-nials (people born between 1980 and 2000) as successors.

One of the most cherished roles in my life is serving as an advisor to one of the sororities at UNLV. In this position I get to connect with some bright, talented, and incredibly driven people. Given this unique connection to these young minds coupled with my amazing experiences working with some amazing seasoned folks I have grown a propensity for serving as a translator between the two generations.

Thus, the concept for this article was born. Following are the best tips I can give for raising Millennial professionals in a way that meets their needs while extracting the best talent they have to offer.

Change YOUR Mindset

The current executives in control of the industry, baby boomers (people born from 1945 – 1965), typically provide overwhelming negative generalizations about Millennials with specific emphasis on a perceived lack of commitment and loyalty. Nothing could be further from the truth. Einstein defined insanity as doing the same thing over and over again and expecting different results. In this case Millenni-als aren’t broken, but rather the ideologies of older gen-erations. It is through evolution of generations throughout history that progress is made. The same is still true. Doing things the way they worked for your generation is not the same way it works for Millennials. Stop trying to fit a square peg into a round hole. Learn about and from them instead of trying to change them to fit the previously used pattern.

Quality Over Quantity

As the generation following the wrath of The Great Depres-sion, Baby Boomers became ravenous in their appetite for everything–in particular amassing wealth. Working 50, 60, or even 80 hour work weeks became the norm as it

Page 20 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 21

Rachael Rizzi, MBA, CSRM, CISR,

is a commercial insurance broker at

Orgill/Singer & Assocs. in Las Vegas.

positions based on paying their dues. While they will respect those who are talented and have earned their stature, they pay respect in a different currency. For these young, talented workers respect should be given based on the merits of your work rather than entitlement. They will work hard, when they know that their work will be weighed as equally as others in their position.

Once you have this in mind, then it is necessary to men-tor rather than simply train. When they receive knowledge and wisdom rather than proficiencies and processes they flourish. On a very basic level you have to provide as much insight as to the philosophy and reasoning of a skill as you do to teaching the skill itself. This seems like a “duh” kind of statement, but for many the reality of today’s busy world is that we teach to check a box, not why the box was cre-ated. The bottom line–they have to connect to their work and feel the purpose they are serving in their role.

Bend Like a Pretzel

This generation has grown up with the best of ever changing technology. They are adaptable and productive in ways that workers in other generations cannot fathom. Unleash this productivity by providing the tools and au-tonomy they need to succeed.

    Partners | Carey Bush, Brandon Perry,    William Re, John Ward 

  

6279 Tri‐Ridge Boulevard, Suite 150 Loveland, Ohio 45140 

513‐381‐2500 www.cincinnatuspartners.com 

Cincinnatus Partners I, LP $30 Million of Committed  

Equity Capital 

 Focused on acquiring property‐casualty            independent insurance agencies with the      following profile:  ■ Comprised predominately of personal lines, agriculture and small commercial coverages  

■ Annual commission income in the range of $500K ‐ $5 million  

■ Based in New Mexico and surrounding states 

®

The current confines of corporate America stifle Millen-nials–from the rigid 40 hour work week to the required daily appearance in a brick and mortar office. With their technological savvy, Millennials can often complete in 2 hours what may take workers in other generations 4 hours to do. Given this predisposed ability to reap results quickly and through alternative, more efficient means, Mil-lennials crave the ability to direct their remaining time in a way that works for them–be it starting on another project or skipping out early for happy hour.

In short Millennials are redefining the path to achieving the American dream to fit their ideals, just as the genera-tions before them did and the generations after them will do. Just like adapting to changes in technology, com-panies who do not change to meet the changing of the generational tide will fall by the wayside.

IIANM’s 2013 CalendarJanuary

1st Office Closed - New Year Day

8th & 9th Property & Casualty License Exam Review Kitty Leslie IIANM

10th Life & Health License Exam Review Bob Ouellette IIANM

21st Office Closed - Martin Luther King Day

30th Legislative Mixer La Posada, Santa Fe

February

5th & 6th Property & Casualty License Exam Review Jack Cleary IIANM

7th Life & Health License Exam Review Jeff Straight IIANM

18th Office Closed - Presidents Day

20th AAI 83A Principles Agency Management (8 CE hrs) Jeff Straight

21st AAI 83B Agency Company Relations (8 CE hrs) Jeff Straight

March

5th & 6th Property & Casualty License Exam Review Kitty Leslie IIANM

7th Life & Health License Exam Review Bob Ouellette IIANM

14th ACSR #1 Homeowners (8 CE hrs) Jack Cleary IIANM

19th & 20th 53rd Annual Education Seminar (15 CE hrs) Crowne Plaza Hotel

29th Office Closed - Good Friday

April

4th ACSR #2 Personal Auto (8 CE hrs) Jack Cleary IIANM

9th & 10th Property & Casualty License Exam Review Jack Cleary IIANM

11th Life & Health License Exam Review Jeff Straight IIANM

24th AAI 83C Agency Financial Management (8 CE hrs) Jack Cleary IIANM

25th ACSR #8 Commercial Auto (8 CE hrs) Jeff Straight IIANM

May

1st ACSR #3 Personal Lines Related Coverages (8 CE hrs) Jeff Straight IIANM

2nd ACSR #9 Commercial Lines Related Coverages (8 CE hrs) Jeff Straight IIANM

7th & 8th Property & Casualty License Exam Review Kitty Leslie IIANM

9th Life & Health License Exam Review Bob Ouellette

16th IIANM/NMM Golf Tournament tbd

27th Office Closed - Memorial Day

(tentative)

June

4th ACSR #7 Commercial Liability (8 CE hrs) Jeff Straight IIANM

5th AAI 81A - Principles of Insurance (8 CE hrs) Jack Cleary IIANM

6th ACSR #4 E&O Loss Control (8 CE hrs) Jack Cleary IIANM

25th & 26th Property & Casualty License Exam Review Jack Cleary IIANM

27th Life & Health License Exam Review Bob Ouellette

July

4th Office Closed - Independence Day

9th AAI 81B - Personal Lines (8 CE hrs) Jack Cleary IIANM

10th AAI 81C Special Commercial Lines (8 CE hrs) Jack Cleary IIANM

16th & 17th Property & Casualty License Exam Review Jack Cleary IIANM

18th Life & Health License Exam Review Jeff Straight IIANM

30th & 31st Southern Seminar (15 CE hrs) Las Cruces

August

6th & 7th Roswell Seminar (15 CE hrs) Jeff Straight Roswell

8th Life & Health License Exam Review Bob Ouellette IIANM

13&14 Property & Casualty License Exam Review Kitty Leslie IIANM

15th ACSR #5 Professional Development (8 CE hrs) Jeff Straight IIANM

26th & 30th Last Chance Seminar (15 CE hrs) (tentative)

September

2nd Office Closed - Labor Day

3rd & 4th Property & Casualty License Exam Review Jack Cleary IIANM

5th Life & Health License Exam Review Bob Ouellette IIANM

18th and 19th 79th Annual Convention (tentative) Sandia Casino

October

9th & 10th Property & Casualty License Exam Review Kitty Leslie IIANM

11th Life & Health License Exam Review Jeff Straight IIANM

November

5th & 6th Property & Casualty License Exam Review Jack Cleary IIANM

7th Life & Health License Exam Review Bob Ouellette IIANM

27th & 28th Office Closed - Thanksgiving

December

5th IIANM Holiday Party IIANM

10th&11th Property & Casualty License Exam Review Kitty Leslie IIANM

12th Life & Health License Exam Review Jeff Straight IIANM

24th & 25th Office Closed - Christmas

HomeownersCatastropheInsuranceTrust

Your preferred homeowners clients deserve the broadest possible coverage for their homes and personal property. As an active

member of IIANM, you have the original -- the very best such program available to you right now.

The HCIT Difference in Conditions (DIC) policy supplements basic homeowners coverage by providing

protection for catastrophic losses, including FLOOD and EARTHQUAKE.

Just contact:

Trustco, Inc. - HCIT Program Administrator 2063 East 3900 South Ste. 100,Salt Lake City, UT 84124 1-800-644-4334 / Fax: 801-278-9051

Bobbi Phillips / bobbip@hcitins.comEric Kingdon / erick@trustcoinc.com

www.hcitins.com

Insurance agents!You spoke, we listened! New plans and more options now available!

Click here to visit our website.

HomeownersCatastropheInsuranceTrust

Your preferred homeowners clients deserve the broadest possible coverage for their homes and personal property. As an active

member of IIANM, you have the original -- the very best such program available to you right now.

The HCIT Difference in Conditions (DIC) policy supplements basic homeowners coverage by providing

protection for catastrophic losses, including FLOOD and EARTHQUAKE.

Just contact:

Trustco, Inc. - HCIT Program Administrator 2063 East 3900 South Ste. 100,Salt Lake City, UT 84124 1-800-644-4334 / Fax: 801-278-9051

Bobbi Phillips / bobbip@hcitins.comEric Kingdon / erick@trustcoinc.com

www.hcitins.com

Insurance agents!You spoke, we listened! New plans and more options now available!

Click here to visit our website.

Keeping Customers for Life!

Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 25

Keys to Keeping Customers for Life

1) Always make the customer your number one priority.

You must bend over backwards for the customer and make sure that every experience with you and you company is an absolute pleasure. This begins with the number one rule of customer service: making sure the customer is always right. It also means doing what you say you’ll do when you say you’ll do it, and going above and beyond, doing more than you get paid for, to make sure the customer is always pleasantly surprised by the extra service they receive. In addition, the customer comes before paperwork, phone calls, and other tasks you need to get done. When cus-tomers think of the best customer service they’ve ever received, you should be the one that comes to mind. They should always feel like a V.I.P.

2) Keep communicating.

While some people require more communication than oth-ers, you want to reach out to people on a regular basis. This includes sending at least three cards to everyone you do business with: a Birthday Card, Holiday Card, and Anniversary Card on the date you started doing business with them. You also want to have your e-mail customers on an e-mail list that you send something of value to once a month. The title should make the content obvious to the recipient. In addition, you should talk to each client on the phone a minimum of once or twice a year, and meet with them in person at least once a year to review their cover-age and find out if anything has changed that might affect their coverage.

A note on your cards: make sure they are personally signed by you in blue ink. Better yet, handwrite a personal note. If you don’t have good handwriting, you can have the note printed, but make sure you still sign it no matter what your signature looks like. Everyone from teenagers to centenarians appreciates a hand-written note.

3) Personalize the relationship and always seek to build and strengthen it.

You want to take a personal interest in customers. Where are they from, where did they go to school, what interests

do they have, do they have kids, grandkids, are they mar-ried? What activities are the people in their lives involved in? Once you have this information, show interest is what makes each customer unique. Ask about children, grand children, their personal interests, and the like.

Also, ask customers for their personal preferences and do business with them according to those preferences. For example, do people prefer e-mail or hardcopy? Are they okay receiving their renewal in the mail, or would they rather you deliver it personally? Yes, these are extra steps, but they are extra steps that your competition is more than likely not taking.

Ultimately you want to move customers from acquaintanc-es, to friends, to good friends. The better relationship you have with a customer, the more likely they are to stay with you. If all your customers are good friends, and you take good care of them, they will stay with you.

4) Let them know you appreciate their business and that you don’t take them for granted.

Thank customers for their business on a continual basis. You should be saying, “Thank you for your business, I re-ally appreciate it” and/or “Thank you for being a customer” during phone calls and in-person meetings. You don’t have to mention this in the Birthday and Holiday Cards you send out, but you do want to mention it in the Anniversary Card as that is the main focus. The primary objective of the Holi-day and Birthday cards is to add a personal touch.

The bottom line: Treat customers right by making them a priority, taking a personal interest in them, and by letting them know that you appreciate and care about them.

If you would like access to John's free white paper on what it takes to be successful in sales along with a monthly newsletter, you can visit John's website at http://www.completeselling.com

John Chapin’s specialty is helping salespeople and sales teams double sales in 12 months. He is an award-winning sales speaker, trainer and coach, a number one sales rep in three industries, and the primary author of the gold-medal winning "Sales Encyclope-dia". In his 24 years of sales, customer service and management experience, he has sold in some of the toughest markets and economies.

These days I hear many excuses for agents losing custom-ers. The most prevalent by far is price. “The other company had a better price. There was nothing I could do.” While price is always a factor, very rarely is it the main consider-ation when considering a switch, the best estimates put the percentage at about 7%. The reality is, many agents simply aren’t building the strong relationships and they use price and other excuses when the customer naturally goes else-where. If you build a strong relationship and keep custom-ers happy, they won’t jump ship the first chance they get. Also, if you thrill customers such that they are customers for life, they are much more likely to refer friends and fam-ily, thus increasing business and making your life a whole lot easier.

by John Chapin

Please visit our web site at www.insurbanc.com or contact one of our Relationship Managers at 800.957.0858.

But don’t take it from us. Listen to your peers.

Agents Express Leasing is an effective solution to manage your clients needs with today’s best equipment technology. Jay Byrnes of Byrnes Agency experienced

how easy our leasing solution is for his agency:

“As a longtime member of the “Big I”, I always knew of InsurBanc and their commitment to the independent insurance agent. Recently we wanted to update the agency with a new computer network and desktops, so I turned to InsurBanc for leasing options.

From start to finish I experienced firsthand how seamless it was to conduct business with them. We have a 35 person agency so to update everyone’s computers was a decent size upgrade. InsurBanc made the process very easy and offered attractive terms and competitive rates which helped to manage the agency’s cash flow”. – Jay Byrnes ~ Byrnes Agency

How it works:• Lease terms are 24, 36, 48 or 60 months with a minimum transaction of $5,000• You can finance most out-of-pocket expenses, such as installation, freight, software

and training• No down payments or advance payments are required• Monthly payments can be customized to meet your special business needs

We invite you to see for yourself. Contact us today for help preserving your cash flow with an equipment lease solution.

11INR051 10/11

Agents’ Express Leasing is a program of De Lage Landen Financial Services, Inc, benefitting InsurBanc clients. Lease financing is subject to lessee credit, vendor, and equipment approval by De Lage Landen. This is not a commitment to lend. Other terms and conditions may apply.

Leasing: A Seamless Customer Experience

Member FDIC

Please visit our web site at www.insurbanc.com or contact one of our Relationship Managers at 800.957.0858.

But don’t take it from us. Listen to your peers.

Agents Express Leasing is an effective solution to manage your clients needs with today’s best equipment technology. Jay Byrnes of Byrnes Agency experienced

how easy our leasing solution is for his agency:

“As a longtime member of the “Big I”, I always knew of InsurBanc and their commitment to the independent insurance agent. Recently we wanted to update the agency with a new computer network and desktops, so I turned to InsurBanc for leasing options.

From start to finish I experienced firsthand how seamless it was to conduct business with them. We have a 35 person agency so to update everyone’s computers was a decent size upgrade. InsurBanc made the process very easy and offered attractive terms and competitive rates which helped to manage the agency’s cash flow”. – Jay Byrnes ~ Byrnes Agency

How it works:• Lease terms are 24, 36, 48 or 60 months with a minimum transaction of $5,000• You can finance most out-of-pocket expenses, such as installation, freight, software

and training• No down payments or advance payments are required• Monthly payments can be customized to meet your special business needs

We invite you to see for yourself. Contact us today for help preserving your cash flow with an equipment lease solution.

11INR051 10/11

Agents’ Express Leasing is a program of De Lage Landen Financial Services, Inc, benefitting InsurBanc clients. Lease financing is subject to lessee credit, vendor, and equipment approval by De Lage Landen. This is not a commitment to lend. Other terms and conditions may apply.

Leasing: A Seamless Customer Experience

Member FDIC Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012 Page 27

THE GrEATEST INSUrANCE STOrY NEVEr TOLD:Harmony,Not Noise

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I sing in a gospel quartet. And what, you may ask, has that

to do with building a great insurance agency?

Maybe everything. Let’s list some of the attributes

of good quartet singing and apply them to your agency.

• Singers need to be on the same page, but not the same notes. In a quartet, the goal is harmony, not uni-son. Each person must be in exactly the same place in the music at the same time as the other singers, yet each must deliver his unique note. It’s the song’s arrangement that determines how those notes are to be sung and when, if the proper musical effect is to be created. Likewise in your agency, each person has a unique responsibility and role. But to coordinate each person’s efforts into a seamless whole, there must be an agency “arrangement” for them to follow. In music, it’s the song sheet. In the agency, it’s the action plan.

• Singers have to listen to each other. It’s not enough to just sing your part. That’s a given. But four guys singing solos does not a quartet make. The real key to achiev-ing harmony is working together to blend the voices into a seamless whole. When it’s done right, people listening to four-part harmony will have a difficult time telling who is singing what part. And so it should be with your agency. Your client should find the various parts of your organiza-tion functioning so seamlessly it will be difficult to tell where the producer left off and the CSR stepped in.

• Singers follow the music, not vice versa. Until the song is written, there’s nothing to sing. To properly create harmony, the composer determines what the notes will be, and how they will fit together to form the whole of the song before making the music available to the singers. Similarly in an agency, you must first develop your overall plan, determining the parts you need, the talents to effectively perform each part, and how they will function together to create a great organization.

• Each part must be assigned to a singer with the abil-ity to hit the notes. The music also determines the type of singers that will be needed. For example, in a gospel quartet, the song will normally call for a high tenor, a lead, a baritone and a bass. You may find four tenors or four bass singers who all have great voices, but the song will not sound the way it was intended by the composer. Each singer must be chosen based upon their individual abili-ties to sing the parts necessary to deliver the music in the

intended way. No good quartet will ever expect the bass singer to hit the high tenor’s notes, or vice versa. While the musical range of each individual can vary, there is always an ideal range within each singer performs at his best. Why would you expect your staff to perform any differently? You may hire a great staff, yet wonder why the agency never quite function as you intended. Each employee may have a range of skills, but each also will have talents and capabili-ties that will allow them to perform at their peak in certain positions. Top producers are rarely great managers and CSRs who are highly efficient at processing will rarely be great salespeople.

• Train for improvement, not radical change. Vocal and musical training can work wonders, but it won’t change a bass into a tenor. Don’t expect any different from your folks. Once you have determined the role in which they perform the best, focus their training on enhancing that perfor-mance. While broadening horizons is great, keep things in perspective. Producers need sales training far more than they need technology seminars.

• Good sound folks don’t sing; they make singers sound good. If the quartet is to deliver the best music to the ears of the audience, someone has to be responsible for the microphones. In effect, a good sound person takes the music created by the quartet and amplifies it in a way that allows the quartet to reach a far greater audience with a far better sound than the group can achieve on its own. While the group individually or collectively may take this task on, it distracts from what should be their one true pur-pose – making great music. Sounds a lot like agency man-agement, doesn’t it? The best managers shouldn’t be trying to make their own music. Their role is to guide and amplify the efforts of their staff to create the sweetest service pos-sible for the largest number of clients. Doing otherwise is like trying to run the soundboard at the same time you sing lead – it can be done, but it’s not likely to sound pretty.

Think like a quartet, and you and your staff can make beautiful music together!

COMMUNITY CORNER

Page 28 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

This month marks Daniels Insurance, Inc. 75th Anniversary!Congratulations for providing 75 years of insurance exper-tise and unparalleled service. Daniels has three locations in New Mexico: Hobbs, Santa Fe and Albuquerque. They are one of the original members of the association!

December 4th, 1937

Fed Farm Proposal May Bring Relief for NM DairysDairy farmers are hoping for federal help after severe drought and high

feed prices have closed around 40 dairies in New Mexico.

The Portales News-Tribune reports (http://bit.ly/SZ-dS7U) that experts believe the U.S. Farm Bill could give dairy farmers relief by ending old price support systems.

New Mexico State University Extension Dairy Special-ist Robert Hagevoort (HAYG’-vohrt) says the proposal would create a regulated producer-paid insurance program. He says the program would make sure that if margins are upside down, insurance will pay out.

Most of New Mexico’s dairies are located in Curry, Chaves and Roosevelt counties, an area of the state most affected by the drought and high feed prices.

New Mexico Moves Ahead with Health ExchangeNew Mexico Gov. Susana Martinez's administration is moving ahead to establish a state-run clearinghouse to help small businesses and tens of thousands of individuals find affordable health insurance they currently lack.

A fight over the exchange, however, could break out in next year's Legislature. Attorney General Gary King's office is reviewing whether new legislation is needed to implement a health insurance exchange or whether it can be done as the Republican governor plans, without a change in current law or legislative involvement.

The exchange is envisioned as an online shopping center for the uninsured to buy health coverage from a selection of plans offered by insurance companies with benefits tailored to New Mexico. It's to be ready to enroll people starting next October and under federal law must be fully operating by January 2014. That year, an estimated 55,000 New Mexicans may use it to enroll in an insurance plan.

Martinez doesn’t plan to establish a new agency to run the exchange. Instead, the exchange will be operated by the New Mexico Health Insurance Alliance.

Congratulations Daniels!

IIANM Closed Christmas Week

With such a small staff, it’s always hard for us to give everyone time off for the holidays. Last year we were closed Christmas week to finish some much needed office renovation. When we asked members if it was an imposition, most told us that they were so busy with January renewals that they barely noticed!

With that in mind, we are going to close the association office the week of December 24th again this year.

From the staff and Board at IIANM, we wish everyone a great holiday season, and we’ll be back in the office bright and early on January second to start an exciting new year!

Looking for Instructors

If you possess the skills and abilities to teach a program which would be a GREAT addition to our IIANM curriculum, we’d like to talk with you!

Classes are a great way to bring in extra revenue doing something you love

to do. We work out the class fee together, and our supportive staff will do your advertising and class registrations.

If you are interested in a part-time insurance instructor position, contact Consuelo Trujillo at 505-999-5805.

Page 28 Independent Insurance Agents of New Mexico - www.iianm.org - * December 2012

Note: The current MMAC registration fee is $18.96/year. All services offered within MMAC are priced independently and at a discount for our members. For more information, contact brett.sutch@iiaba.net.

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Looking to fill a position within your agency? Trying to find a job but don’t know where to look?Whether you are looking for somewhere new to share your special skills or an employer looking for quality, pro-fessional employees, we are here to lend a helping hand. Click here to take advantage of IIANM’s Job Bank.Do you have an agency you’re trying to sell, or in the market to buy one? Check out our Classifieds!

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Both optimists and pessimists

contribute to our society. The

optimist invents the airplane and

the pessimist the parachute."

Do most online dating profiles seem too good to be true? There’s a reason for that. Research shows at least 81 percent of online daters have lied in their profile. Click through to see the top 10 lies to watch out for when you’re looking for your match.

You know that feeling you get when you’ve successfully completed a Pinterest project?

Yeah, me neither.

See some pretty hysterical Pinterest Fails

Holiday lights: How to stay safe

How to deck the halls without sparking trouble:

• Buy LED holiday bulbs. They won’t burn your hands, and they’re shockproof and shatterproof.

• Hang them safely. All outdoor cords, plugs, and sockets should be weatherproof. Keep electrical wires off the ground and clear of drainpipes and railings.

• Check your light sets. Look for frayed wiring, damaged sockets, or cracked insulation before you decorate. If you find any of these problems, replace the entire set.

• Know what lights go where. Make sure you buy the kind of light sets you need—indoor sets for indoors and outdoor sets for outdoors.

Need some inspiration? Try a mug o’ joeA cup of coffee helps you get going in the morning, but can it help you be more creative? Well, maybe. Here’s a quick look at how caffeine affects the brain.

The neurons in your brain produce a substance known as adenos-ine. The harder your neurons work, the more adenosine they create; the more adenosine floating around your brain, the more it inhibits connections between neurons by clogging up your neural receptors. Thus, when you’ve got a lot of adenosine drifting through your nervous system, you feel tired.

Caffeine blocks adenosine production by impersonating the chemical, pre-venting it from being absorbed by the receptors in your brain. This permits

natural stimulants like glutamate and dopamine to operate more freely. Those substances can stimulate connections between neurons, and so may lead to better combinations of thoughts and ideas in your mind.

You don’t want to overdo your caffeine consumption in search of a spark of genius, of course. But a cup of coffee or tea may be just the thing when you’re trying to jump-start your thinking.

SOURCE: KOAT7

Steve Jobs (co-founder of Apple Com-puter): “When I was 17, I read a quote that went something like: ‘If you live each day as if it was your last, some day you’ll most certainly be right.’ It made an impression on me, and since then, for the past 33 years, I have looked in the mirror every morning and asked myself: ‘If today were the last day of my life, would I want to do what I am about to do today?’ And whenever the answer has been ‘no’ for too many days in a row, I know I need to change something.”

No one writes Excess/Umbrella with the capacity and speed of Burns & Wilcox.

Put the power and speed of the Burns & Wilcox pen to

work for you: Solidify your clients’ coverage with our

breadth of proprietary Excess/Umbrella solutions.

Derived from our exclusive binding contract authority,

our assets allow us to quote and bind policies at

rocket speed. When it comes to securing your clients’

financial interests, think fast. Think the largest

independent wholesale broker – Burns & Wilcox.

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Albuquerque, New Mexico | 505.822.0018toll free 866.643.8538 | fax 505.822.0092scottsdale.burnsandwilcox.com

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