WINTER 2012 • VOLUME 30 • ISSUE 1 INDEPENDENT INSURANCE AGENTS OF IOWA

}Getting Involved In Your Conferences

}Looking Forward

}Not Knowng the Rules of the Game

}Rural Agents Conference

}Dealing with Divorce

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BOARD OF DIRECTORSPresidentBrian Petersburg - Decorah

President-ElectPaul Pohlson - Grinnell

TreasurerTerry McDonald, CIC - Iowa City

National DirectorDean Brooks, CPCU, CLU - West Des Moines

DirectorsScott Morningstar, CPCU - LisbonJerry Mease - WintersetEldon Hunsicker - OttumwaTerry Friedman, CPCU - DubuqueTim English, CIC - DyersvilleJohn Dalton - Council BluffsSteve Madsen - MarshalltownDavid Rowley, CPCU, CIC, AU - Spirit LakeScott Wirtz - Emmetsburg

Past PresidentMark Currie, CIC, CPIA - West Des Moines

IIAI OFFICE STAFFChief Executive OfficerBob Skow, CPCU, CAEbob@iiaiowa.org

Membership Operations CoordinatorMelissa Meinersmelissa@iiaiowa.org • Ext. 15

Technology & Communications AdministratorJeanne Reynoldsjeanne@iiaiowa.org • Ext. 17

Membership Services CoordinatorMarilyn Paul, CPCU, AIT, AAM, CPIWmarilyn@iiaiowa.org • Ext. 11

Membership Services CoordinatorBrenda Kluger, MBA, CIC, CISR, CPIWbrenda@iiaiowa.org • Ext. 14

Customer Service RepresentativeMegan Kincymegan@iiaiowa.org • Ext. 16

Membership Services CoordinatorMarie Hugginsmarie@iiaiowa.org • Ext. 22

ReceptionistCindy Grimcindy@iiaiowa.org • Ext. 12

Independent Insurance Agents of Iowa4000 Westown Parkway

West Des Moines, Iowa 50266(515) 223-6060 • FAX (515) 222-0610

800-272-9312 (In-State only)

Advertising EditorMelissa Meiners

MISSION STATEMENT: The Independent Insurance Agents of Iowa will be an unrelenting advocate of the business, professional and political interests of its members; doing so by working in the public’s best interest and with the highest ethical standards.

Viewpoint is a publication of the Independent Insurance Agents of Iowa. Viewpoint is published quarterly: Winter, Spring, Summer and Fall. Viewpoint is mailed to Iowa insurance agents, Iowa Home Office Executives, Affiliate members, and other state associations and organizations.

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President’s ReportGETTING INVOLVED IN YOUR CONFERENCES

I encourage you to attend the Insurance Day on the Hill or the National Legislative Conference. Your participation will be rewarded.

by Brian PetersburgPage 5

National Director’s ReportLOOKING FORWARD

The challenges have never been bigger; the opportunities have never been greater.

by Dean Brooks, CPCU, CLUPage 7

In This IssueFederal Crop InsurancePage 11

Not Knowing the Rules of the Game…Can Cost You More Than Just the Game

by Kevin RinkPage 12

Rural Agents ConferencePage 14

Dealing with DivorcePage 17

Advocacy is #1

by Bob Skow, CPCU, CAE -Chief Executive OfficerPage 22

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GettinG involved in your conferences

p r e s i d e n t ’ s r e p o r t

By Brian Petersburg

When asked what service your Association provides for its members that has the most impact on our business, I’d have to say the work done on the hill in Des Moines and at our nation’s Capital ranks at the top.

On January 31st, a large contingent of our member-ship traveled to the Iowa State Capitol for Insurance Day on the Hill. Also in attendance were the Iowa Insurance Institute (IAIFA), the Mutual Insurance Association of Iowa (MIAI) and the Surety Underwriting Association of Iowa. This is our 10th year of hosting the Insurance Day on the Hill event and it has been very successful.

Our membership had the opportunity to sit down over a box lunch and talk face-to-face with their respective legislators to discuss current issues relating to our industry. It is important that we get close to our Senators and Representatives. The more contact we have with our legislators, the more effective we are at a grassroots level. You know you are successful when your legislator calls you up and asks for advice or clarification on an insurance bill.

Bob Skow and Larry Blixt do an outstanding job lobbying for or against bills that have major impacts on our profession. Our Association is very respected and powerful on the hill. An example of this is the success in overturning the Langwith State Supreme Court deci-sion. This was a huge victory for every member of our Association. This victory returned Iowa to a state in which it is favorable to conduct business and helped keep our E&O insurance affordable. The Government Affairs Committee reviews all legislative bills introduced

during the legislative session and then recommend policy decisions for each. They also develop proactive legislation that would be in the members’ and consum-ers’ best interest. The Committee does a great job keeping us informed of the bills affecting our industry. The Governmental Affairs Committee and the Board determine if we want to support, oppose or be neutral on these bills. Bob and Larry spend countless hours defending our position.

On April 25th, your Board and members of the Association along with agents from all over the nation will travel to Washington, D.C. for the National Legislative Conference. This is a grueling two days. We start with a Legislative Briefing where the IIABA staff breaks down the most pressing legislative issues facing independent insurance agents. The follow-ing day, members from practically every state in the country deliver the same message to their legisla-tors. We meet with every available Iowa Senator and Congressman to personally lobby our position on the issues affecting our business. Each topic is relevant to agencies all over the country. Examples of topics discussed are health care, agent licensing, multi-peril crop insurance and flood.

Your Association is dedicated to lobbying at both the state and national level to ensure that we continue to have laws that are fair to our industry and that we are compensated fairly for the services we provide.

I encourage you to attend the Insurance Day on the Hill or the National Legislative Conference. Your participation will be rewarded.

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lookinG forwardn a t i o n a l d i r e c t o r ’ s r e p o r t

Dean Brooks, CPCU, CLU

This is my first report to all of you as your new National Director, and it will be mercifully brief because, as I write this on an unseasonably warm Sunday evening in early January, I have yet to attend a national board meet-ing. The first Board meeting is next weekend, after this issue of Viewpoint goes to print. I do look forward with great anticipation to the opportunity to represent our Iowa Association and all of our member agents the next three years at the National Board meetings.

The first order of business is to recognize Tom Richardson for his outstanding service as your most recent National Director these past three years. He did an extraordinary amount of work on our behalf, not only as National Director but also through his service on other national committees, including national health insurance. Even though Tom has completed his term as National Director, he continues to serve on the AAS Board (the for-profit company owned by IIABA) and he chairs the Health Care Task Force. Please join me in congratulating Tom on all his tireless work for the betterment of our Association. He is most deserving of our gratitude. If you have a spare minute, drop him a “thank you” note at Tomr@KSBINSURANCE.com

There will be numerous items under discussion at the Board meeting, but judging by all my email traffic the past couple of weeks, the three agenda items gener-ating the most discussion will be the Consumer Agent Portal (CAP), Trusted Choice, and Government Affairs/PAC. I’ll give you my preliminary take on those three topics and then can provide more detail in my next article after the Board meeting.

“The challenges have never been bigger; the opportunities

have never been greater.”

The CAP initiative is one of the most exciting and ambitious Association undertakings I have ever seen. The goal is simple: provide an online tool to help independent agents recapture personal lines market share. The stakes are high in the personal lines mar-ket. Just one percentage point of the aggregate total countrywide personal lines market represents $2.8 billion in premium and $300 million in agency com-missions. The vision of the Portal is to collectively give member agents access to a dynamic website that links interested online shoppers with independent agencies locally who will provide real-time, competitive quotes and coverage options.

In today’s world, we know that three out of every four American consumers have used the internet to either research or buy insurance at some time. We all recognize that direct writers continue to increase their market share in auto and home insurance at our expense, especially in the online marketing arena. Direct writers have a strong online presence supported by aggressive marketing tactics specifically designed to drive potential customers to their sites. To date, inde-pendent agents’ individual internet sales efforts have been fragmented and mostly ineffective. On the other hand, through the Portal we collectively can develop a strong, effective internet presence that drives qualified prospects to our agencies. Think “high search engine ranking” and the potential for personal lines growth it could bring to your agency!

Six independent agency companies, along with IIABA, contributed the initial capital to fund start up

8 | | Winter 2012

of the CAP initiative: Central Companies, Main Street America Group, Safeco Insurance, Selective Insurance, State Auto Insurance and Westfield Insurance.

There is a great deal of work yet to do to make the portal a reality but it is getting closer every day. We are fortunate here in Iowa that Eldon Hunsicker, President of the NOEL Agency in Ottumwa, is on the CAP Advisory Panel. Eldon brings a wealth of knowledge to the project, plus the experience of an agency owner. As the portal concept develops in 2012, you will receive additional information from IIAI regarding rollout of the program here in Iowa and how you can participate. In the meantime, you can find more information about CAP at www.ProjectCAP.info

Trusted Choice continues to mature as a marketing brand. As a reminder, all IIAI member agencies are

allowed to access and use the Trusted Choice national branding tools at no additional fee—it is now one more benefit of your mem-bership. Remember that Trusted Choice is a marketing brand, not an Association logo. Unlike an asso-ciation logo, which simply connotes membership in an organization, a mar-keting brand conveys a proactive promise of performance, quality and/or pur-pose. Trusted Choice highlights the benefits of working with an independent insur-ance agent or broker: a trusted advisor and advocate who can offer consumers a

choice of products and markets. These are the quali-ties consumers value most in an insurance provider.You can find a wealth of additional information about Trusted Choice on the IIABA website. I would encour-age you to take a look if you haven’t done so already. During the Board meeting, we will be receiving a report from a consulting group on Trusted Choice, but I would also like to hear your thoughts on this marketing brand. Drop me a note if you want.Government Affairs activities and InsurPac will be reviewed in detail during the meeting. Our govern-ment affairs activities are vitally important every year, and especially important in this election year. Make no mistake about it—there are many bureaucrats, elected officials and so called consumer advocates out there

who see no value in what we as agents do on a day-to-day basis. Fortunately, IIABA brings together the power of many into one unified voice in Washington for all our benefit. On the state level, IIAI and Bob Skow do the same for us here in Iowa every day.

Our federal PAC finished the 2011 year having raised $899,205.36. This was short of InsurPac’s overall goal to be a one million dollar PAC per year, but was still a good achievement considering the state of the econ-omy and the soft market drag on agency revenues. InsurPac continues to be the largest P/C agent PAC by a very wide margin, but was overtaken last year by a direct-writer P/C group (USAA) so we can no longer claim having the largest P/C industry PAC, as we had for over 30 years. Expect to hear more about this as we progress through 2012.

I remember several years ago when Rep. Barney Frank, then chair of the House Financial Services Committee, gave a speech at the annual meeting of the Property Casualty Insurers Association of America (PCI). During his comments to the companies rep-resented he said: “Insurance agents are the most influential group within the property-casualty industry. You will never win in a head-to-head battle with them over any issue. They are not only numerous, but they are an outgoing culture. They are…extremely active and influential from a political grass roots standpoint in their communities.” Wow! A U.S. congressman saying that to P&C insurance companies at their annual meet-ing—that’s powerful stuff.

As an Association, we have developed a reputa-tion over the years as the “go to” Association on the Hill, both in Washington and here in Iowa. It takes a lot of hard work by many folks to get to that posi-tion. The reality is it also takes PAC dollars to maintain our position. I would encourage each of you to think long and hard about all that your Association does for you and then get out the checkbook to support that effort. Once again, I would love to visit with you about everything our Association does in the legislative arena at both the national and state level. Let me hear from you anytime.

As a side note, we have always considered insur-ance to be regulated by the respective states, but don’t forget there is a Federal Insurance Office (FIO) in Washington. As I write this, the insurance industry is anticipating a report from the Federal Insurance Office that is due to Congress by the end of January. The report will contain the office’s views on how to mod-ernize regulation as well as its role in overseeing the industry. Stay tuned for more on that one!

When I started in this crazy business forty years ago this month, I had no idea what I was doing or where I would end up. Thanks to some hard work, some good fortune and a lot of wonderful agent friends who helped me along, I can say those forty years, with all their ups and downs, turned out to be pretty darned good overall. If asked to identify the one single thing that was most influential, most helpful and most benefi-

“Insurance agents are the most influential group within the prop-erty-casualty industry. You will never win in a head-to-head battle with them over any issue. They are not only numerous, but they are an outgoing culture. They are…extremely active and influential from a political grass roots standpoint in their communities.”

-Rep. Barney Frank

cial to my career, without hesitation I would say it was getting involved in our Association. Through Association experiences, I learned, I grew, and I found many, many friends from whom I can still get help and support to this day. I can’t stress enough the importance of volunteering your time to serve on one of the many State committees—you will be rewarded many times over for your efforts. I know from firsthand experience, the friendships you develop through the Association will last a lifetime and the support will be immeasurable.

What’s on your mind? What is important to you regarding IIABA? Do you have ques-tions, comments or opinions you want to share regarding our Association? If so, feel free to contact me. My direct line at the office is 515-868-0484 and my email is dean@millerfidler.com.

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Or stop by at Miller, Fidler & Hinke Insurance Agency at 1011 Grand Ave. in West Des Moines.

Our business is beset by challenges and blessed with opportunities. Your Association will be there to do all it can to help you grow and prosper. The way I see our business can be summed up by an old quote I picked up somewhere along the trial: “The challenges have never been bigger; the oppor-tunities have never been greater.”

Until next time, good fortune and good selling to you one and all!

Dean Brooks

Miller, Fidler & Hinke Ins. AgencyWest Des Moines, Iowa

dean@millerfidler.com.

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Federal Crop Insurance2011 Premium and Fees as of October 8, 2011 Accounting

2011 2010

2011% Change Buyup CAT Total Buyup CAT Buyup Total inTotalInsuranceProvider Premium Premium Premium Premium Premium Fees Premium Premium

ADM Crop Risk Services 242,760,626 3,960,754 246,721,380 108,189,218 3,130,520 401,940 111,319,738 121.63

AgriLogic Insurance Services 166,045,410 3,336,220 169,381,630 10,130,651 256,369 20,940 10,387,020 1,530.70

Agro National LLC 281,359,416 4,054,724 1,078,680 285,414,140 -100.00

American Farm Bureau Insurance 151,413,256 3,244,256 154,657,512 97,345,429 3,412,944 447,810 100,758,373 53.49 Services, Inc.

ARMtech Insurance Services, Inc. 766,006,649 25,495,279 791,501,928 499,671,959 28,525,743 1,633,020 528,197,702 49.85

CGB Diversified Services 306,857,023 6,016,213 312,873,236 147,784,653 1,355,063 450,600 149,139,716 109.79

Country Mutual Insurance Company 104,265,455 762,089 105,027,544 72,059,355 1,049,893 586,650 73,109,248 43.66

Farmers Mutual Hail Insurance 526,341,711 3,761,646 530,103,357 313,333,867 3,004,270 1,727,100 316,338,137 67.57 Company of Iowa

Great American Insurance Company 1,005,665,190 20,676,505 1,026,341,695 640,431,165 17,298,634 3,405,000 657,729,799 56.04

Heartland Crop Insurance, Inc. 282,701,136 4,100,673 286,801,809 225,881,706 4,482,794 963,450 230,364,500 24.50

Hudson Insurance Company 140,459,083 3,746,672 144,205,755 86,199,594 2,453,266 212,280 88,652,860 62.66

John Deere Risk Protection, Inc. 380,365,377 8,048,470 388,413,847 276,299,154 13,554,012 959,430 289,853,166 34.00

NAU Country Insurance Company 1,716,480,474 25,998,480 1,742,478,954 791,668,897 15,971,588 3,339,180 807,640,485 115.75

Producers Agriculture Insurance Company 721,242,904 30,209,675 751,452,579 445,674,736 28,475,641 1,480,740 474,150,377 58.48

Rain and Hail L.L.C. 2,486,103,672 86,280,629 2,572,384,301 1,632,147,113 80,755,702 4,952,970 1,712,902,815 50.18

Rural Community Insurance Services 2,518,303,435 55,294,513 2,573,597,948 1,682,970,223 52,987,245 7,434,150 1,735,957,468 48.25

GrandTotal 11,515,011,401 280,932,074 11,795,943,475 7,311,147,136 260,768,408 29,093,940 7,571,915,544 55.79

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Workers’ Compensation is a game of rules. And like all other games, from Monopoly

to football, if you don’t know the rules, you’re going to find it difficult to win.

We don’t normally think of insurance as a “game,” but you definitely have to know the rules in order to get the best results for your clients. These rules are readily available. But it’s been my experience that agencies rarely have these rules at their disposal. They choose instead to rely on experience to guide them to what they think is correct.

It’s true that experience is a great resource. But when things change, as they often do, experience can become more of a liability than an asset. That is why it is imperative that agents have access to the manuals that govern a Workers’ Compensation policy.

In Iowa and other states governed by NCCI (National Council on Compensation Insurance), there are three key manuals:

not knowing the rules of the Game…

can cost you More than Just the Game

By Kevin RinkLead Workers’ Compensation Analyst, IWCP

1) BasicManual This is the manual that contains

information on the basics of Workers’ Compensation. Here you will find the rules for classifying a business. What are the standard inclusions and exclu-sions for classifications? What money that you give to employees is included or excluded from the Workers’ Comp premium calculation? And so on.

Also of critical importance in the Basic Manual: What are the rules governing how classifications can be changed both during and after a policy period?

2) ExperienceRatingPlanManual The rules covering the Experience

Modification Factor are vast. This

manual explains in detail each of the elements of the Experience Modification Factor and how they are calculated. For instance, if you are going to cancel and rewrite a Workers’ Comp policy, how can you know what policy periods will be included on an Experience Mod?

If one of your clients buys a busi-ness, what are the rules relating to their separate Experience Mods? (hint: they are almost certainly required to be combined)

Also in the Experience Rating Plan Manual are the rules relating to which businesses are required to have an Experience Mod and what changes can be made to the Mod during the policy period.

3) Scopes®Manual For the different types of business

that exists, NCCI has defined just over 600 distinct classifications to describe them. This manual contains each of

WINTER 2012 | | 13

those classifications, spelled out in detail. It is critically important that your client be classified correctly, otherwise they are in grave danger of being overcharged and you are in grave danger of losing a client.

The Scopes® Manual has a wider reach than the two manuals previ-ously mentioned, as it covers 42 states and the District of Columbia. The exceptions are Wyoming, North Dakota, Michigan, Washington, Texas, Pennsylvania, New Jersey and Delaware.

These manuals also include the excep-tions for each of the states which are governed by NCCI, as well as several states with independent bureaus. These exceptions are critically important, and not knowing them can be costly. As a simple example, the national rule is that pay for vacation time is included for Workers’ Compensation premium deter-mination. However, that’s not the case in Kansas (provided you can document what portion of the payroll was paid during vacation time). As you can see, it’s not hard for money to add up quickly for your client.

The NCCI manuals are available online and in print for a fee. However, in several states that publish their own manu-als, they are available at no cost in PDF format.

These manuals provide the basis for all Workers’ Compensation policies, and I’ve barely scratched the surface of the amount of information contained in those hundreds of pages. Without access to this information, it’s impossible to know for sure if your clients are having the rules applied correctly to them or not. If you don’t have access to them, log in to your bureau’s website today and find out how.

Kevin Ring is the Lead Workers’ Comp Analyst for the Institute of WorkComp Professionals, the Asheville, NC-based organization that trains insurance agents to help employers reduce Workers’ Comp expenses. A licensed insurance agent, he leads workshops, analyzes Workers’ Comp programs and is the co-developer of a Workers’ Comp software suite.

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Always popular Bob Fulwider discussed Farm Property.

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A n age old question in our indus-try is how an agent or company should respond to coverage

change requests for couples that are separating or divorcing. Well, we ALL know that the policies should solve the problem? Below is an “Ask the Expert” question and the responses of our faculty members. As always, if you have any questions to add send and email to Bill.Wilson@iiaba.net.

Q. “An insured we will call Bill and Nancy own 27 cars a ‘few’ homes,

15 boats, and a lot of other stuff! They are named insureds on everything. Now the kicker…Bill and Nancy are getting divorced! Bill wants us to remove Nancy on everything except two autos and a boat. Bill faxes us documentation that shows that all the autos are registered to him alone. This is a large and very good account that Bill controls. The struggle is to keep Bill happy but to act legally and ethically to both parties. Some thoughts: We could rewrite all the autos that Bill owns exclusively to a new policy and keep the policy in both the names for the remaining items.

How do you suggest we handle this?”

DeAling with

WINTER 2012 | | 17

A.Well, unless you want to get more personally involved in this (along

with your E&O carrier), you MUST, for many reasons, resolve this with the wife as well as the husband. The fact that the vehicles are registered in the husband’s name is probably immaterial…we sus-pect, depending on applicable state laws, that an ownership interest exists beyond registrations or titling. Most important, since she is a named insured, she has equal rights under the contract which MUST be honored.

So HOW the insurance will be restruc-tured is a mutual decision and, like it or not, that’s the way it’s got to be. Your challenge is to explain the potentially adverse legal and ethical ramifications of handling this unilaterally with the hus-band…while YOU are certainly at risk of a lawsuit and/or E&O claim, the husband could be as well. If he insists on doing this in a manner that is effectively illegal or unethical, then I’m not sure you’d want a client like that…but, of course, that’s your call.

If this guy is otherwise decent, then he should understand and comply with your legal, professional and ethical obligations.

Below are some responses of several of our faculty.

Faculty Response

As an agent, it has always been my policy to NEVER make any changes to a policy when I know there’s a divorce going on WITHOUT GETTING THE CONSENT OF BOTH PARTIES. The questioner should start a dialogue with the Mrs. and see what her needs are, and work it out with both of them.

Faculty Response

There can be a big difference in what an agent can legally do when a couple gets divorced, and what the agent SHOULD do. Failing to do all a good agent SHOULD do will dramatically increase the E&O exposure to this agent.

Since Nancy is named insured, she is owed the same rights as Bill under the policy. The fact that cars are no longer titled in Nancy’s name doesn’t mitigate the need to honor her rights under the policy.

Continued ➧

“Ask the Expert”VU Faculty

18 | | WINTER 2012

As an agent I faced this a lot. The first thing I tried was to contact “Nancy” and have her come in and sign the endorse-ment removing her from the policy. I’d provide her coverage at this point too if needed. Then “Bill” would sign the endorsement request too so that both parties knew exactly what was happen-ing. If Bill didn’t know where Nancy was or if Nancy would not sign the endorse-ment requests, that’s a difficult problem. New policies could be written in the name of Bill only, allowing the old policies to expire probably due to nonpayment by Bill.

The thing that should not happen is that the agent caves in to Bill because he has a big account. If Bill insists that Nancy be removed, the agent should not do it until she can be located and until she signs off. Of course, some agents don’t want to hear this because it’s a big account and “nothing will happen” if we take her off. Often, and unfortunately, that’s not the case.

My rule was real easy and I still teach it. Do nothing without both signatures. If you can’t, it’s better to lose the account

because, if you pull one person off without a signature, it’s like pulling the pin on the hand grenade and saying, “It’s going to blow some day, I just don’t know when.”

Faculty Response

This is a tough one for sure. When I was an agent, I never removed or changed the policy during a divorce situation without the consent of both parties. The insured needs to understand that, as a professional insurance agent, I have a duty to BOTH my insureds. Since the policy is in both names, this means consulting both parties. Until the divorce is final, legally they are still married and his liability is most likely her liability and vice versa. I know that this is a signifi-cant account to the agent, but an E&O claim on this account would be even more significant and could far outweigh the loss of the account if the husband refuses to understand the agent’s position.

Faculty Response

First comment: Stay out of it.

Second comment: Start new.

• Have both parties sign cancellation request, preferably witnessed by the respective attorneys.

• Have the previously insured assets insured in separate policies as directed by the divorce decree.

• Have the parties agree to a division of the unearned premium on the old policies.

• Upon completion, send a certified letter to each of the parties explaining what was agreed upon and the actions taken. Send a copy to the lawyers.

Third comment: Pray this is an amicable break-up or the above will not go smoothly.

Fourth comment: During the divorce proceeding, up until you complete the transaction, do not take any coverage reduction action without the approval of both parties.

Fifth comment: Don’t take sides.

Sixth comment: If all else fails…punt (within the rules).

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FALL 2011 | | 25

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© Copyright Employers Mutual Casualty Company 2011 All rights reserved

I’m celebrating our 100th year by planning for our next 100 years.

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Our future will be marked by the relationships we forge with you—the independent insurance agents who represent us. You’re the reason we’ll continue to investigate new market opportunities. Why we’ll develop competitive products. Why we’ll maximize the use of new technologies. Why we’ll emphasize ongoing professional development for our staff. By helping you profitably and efficiently grow your agency, EMC Insurance Companies will continue to serve you and your customers today and well into the future.

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Seventh and final comment: Documenteverything!!!

Faculty Response

Agents have a good faith duty to both named insureds. They should not limit coverage for someone without that person’s express, preferably, written per-mission. The agent can relay the request to Nancy, but should also advise her of the coverage implications of removing her name.

An agent can check with the company to see what their guidelines are. Then the company is the heavy, not the agent. Not that that will keep an insured from going down the street to another agent and applying for policies in their own name.

Bill being the only name on the title doesn’t mean he’s the sole owner of the property, especially in community prop-erty states. Until there’s been a property

division approved by the courts, each should be named on the other’s policies as additional insureds. That way their interest in the property is protected and notice of cancellation is sent if the policy is cancelled.

I always recommend to separating and divorcing couples that they leave the policies as they are until a divorce is final.

naucountry.com | 1.888.NAU.MPCI

© 2011 NAU Country Insurance Company. All Rights Reserved. NAU Country Insurance Company is an Equal Opportunity Provider. The links logo is a registered service mark of QBE Insurance Group, Limited. NAU Country is a registered service mark of NAU Country Insurance Company.

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WINTER 2012 | | 21

“ As an agent, it has always been my policy to

NEVER make any changes to a policy when

I know there’s a divorce going on

WITHOUT GETTING THE CONSENT OF BOTH PARTIES.

The questioner should start a dialogue with the

Mrs. and see what her needs are, and work it

out with both of them.

”If they can’t agree on what to do, I’ll tell them to have their attorney’s work it out and let us know when they both agree on what to do.

In the meantime, it’s very important that all policies have both names on them. Otherwise there could be some serious coverage gaps for the unnamed spouse.

For more about how Integrity can help you

help your customers contact:

Cathy Beaudin at 920-968-8326

or cbeaudin@imico.com

We push ourselves for you.Because you push yourselffor them.

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WINTER 2012 | | 23

By: Bob Skow, CPCU, CAE - Chief Executive Officer

Over the 106 years the Independent Insurance Agents of Iowa has been in existence our number one reason for being has been advocacy. Advocating on behalf of independent agents with the insurance buying public, advocating on their behalf with carriers they represent, and advocating with elected officials and regulators. While no question about it education, resource for information, errors and omissions coverage,

and all the other services this Association provides are important but, advocacy remains our number one purpose for being here.

ad•vo•cate

1. to speak or write in favor of; support or urge by argument;

recommend publicly: He advocated higher salaries for teachers.

2. a person who speaks or writes in support or defense of a

person, cause, etc. (usually followed by of): an advocate

of peace.

3. a person who pleads for or in behalf of another; intercessor.

4. a person who pleads the cause of another in a court of law.

Continued ➧

ADVOCACY IS #1

24 | | WINTER 2012

ADVOCACY IS #1

Senate Majority Leader Mike Gronstal visits with IIAI member at Insurance Day 2012.

Speaker of the House – Kraig Paulsen makes a point.

Governor Terry Branstad discusses insurance issues with us.

WINTER 2012 | | 25

Each year we raise money for our Political Action Committee (PAC) which in turn makes contributions to those seeking state and federal legislative office. We lobby thousands of hours, we ask you as members to engage in contacting members of the Iowa Legislature and the U.S. Congress. We annually hold mem-ber lobbying events at the State Capital (Insurance Day on the Hill held in late January) and in Washington at the IIABA Legislative Conference (held in March or April). These events give Iowa’s agents direct access to elected leaders and a chance to visit face-to-face about our issues.

Insurance is a heavily regulated indus-try. Consumer groups abound, many who feel agents are an easily expendable party in the insurance transaction. Frankly, they don’t get it. Regardless of how one accesses insurance someone has to be the agent of record. While true it can be a company licensed employee like GIECO uses, or a captive agent like State Farm engages, regardless of how they access insurance a licensed person must be the conduit for “selling, soliciting or negotiat-ing” insurance products in every state. The core principal of requiring an agent’s license for selling, soliciting and negotiat-ing insurance, along with ownership of expirations is the two pillars which our Association’s advocacy is built. These are two causes without compromise.

Today, it would be my opinion agents need to figure out on all fronts who is friend and who is foe. This applies to all three areas we advocate, elected officials, companies, and consumers (i.e. con-sumer groups). Crop insurance and health insurance are two products which it has become increasing apparent the role agents play in the delivery of their cover-ages is being challenged. Regardless of where we live, the insurance products we sell, we all must be engaged. Our future depends on it.

Over 100 agents attended meeting with Governor Branstad and Lt. Governor Kim Reynolds.

House minority leader Kevin McCarthy discusses issues.

Senator Jerry Behr – Senate Republican Leader meets with the group.

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