the texas connection october 2014
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TEXAS CONNECTION TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL OCTOBER 2014
SSSSoooo lllloooonnnngggg BBBBiiiigggg TTTTeeeexxxx………… WWWWeeee’’’’llllllll sssseeeeeeee yyyyoooouuuu nnnneeeexxxxtttt yyyyeeeeaaaarrrr!!!!
In This IssueIn This IssueIn This IssueIn This Issue
• Why Customers LeaveWhy Customers LeaveWhy Customers LeaveWhy Customers Leave
• Retiring Baby Boomers?Retiring Baby Boomers?Retiring Baby Boomers?Retiring Baby Boomers?
• Meet the MemberMeet the MemberMeet the MemberMeet the Member
• Becoming PaperlessBecoming PaperlessBecoming PaperlessBecoming Paperless
• Young Insurance ProfessionalsYoung Insurance ProfessionalsYoung Insurance ProfessionalsYoung Insurance Professionals
• Insuring College StudentsInsuring College StudentsInsuring College StudentsInsuring College Students
PROFESSIONAL INSURANCE
AGENTS
In This IssueIn This IssueIn This IssueIn This Issue
Presidents Corner ……………………………………… Page 3
Meet The Member …….……………………………… Page 5
Re*ring Baby Boomers …....…..……………………. Page 6
Insuring College Students …………………………… Page 8
Young Insurance Professionals ……………………… Page 8
Why Customers Leave ……………………………...... Page 9
Become a Paperless Producer …...…………….……. Page 10
Think About It …………………..……………………… Page 12
TDI Enforcement Ac*ons …….……..……………….. Page 13
Current Events ……………………………...………… Page 14
Our Partners ……..………………..………………….. Page 16
Crossword Madness …….……………………..…….. Page 20
Texas Trading Post ……………………………….…… Page 21
The Last Word …………………………………....…… Page 26
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 3
Keep your kids & yourselves
SAFE Halloween night…
here’s my �ps:
1. Take the kids to the Mall and
let them go to the stores that
par*cipate.
2. Some grocery stores par*ci-
pate in handing out treats.
3. Go before it gets dark.
If you’ve made the decision to
a=er go out a=er dark, here are a
few safety points:
Remember that kids get too excit-
ed to watch for danger so you
have to be the one on alert!!
Be sure that costumes are de-
signed so that kids can move
around without tripping over
them.
Hold hands if possible and stay on
the sidewalk.
Keep all costumes as light and
bright colored as possible. If a
dark color is chosen be sure to use
light colored tape to ensure that
you and your child are easily seen.
(Con*nued on Page 26)
Tony HarperTony HarperTony HarperTony Harper
AGENTS WANTED!
Aspera Insurance Services, Inc. is seeking
Coastal Texas agencies to market our
Manufactured Home product. Homes will be wriDen through a non admiDed insurer assigned the financial
Strength of A-(Excellent) by A. M. Best Company.
TARGET COUNTIES INCLUDE: Aransas, Calhoun, Cameron, Chambers, Orange, Jackson, Jefferson, Kenedy, Kleberg, Nueces, Refugio, Willacy and Southern Matagorda.
CONTACT: Marke�ng
Aspera Insurance Services, Inc. Phone: 804-289-1318
E: marke�ng@asperains.com
Aspera Insurance Services, Inc. is a licensed Surplus Lines Agency in Texas.
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 5
Doug Hill
Hill Insurance Agency
Ingram, Texas
Doug Hill owns and operates his true ‘mom & pop’ in-
surance agency, just a stone’s throw from the Guada-
lupe River in Ingram, Texas. Doug is a mul*-faceted
guy… he knows insurance, but he can tell you about
gold mining in Venezuela, how to snap a chalk-line, or
how to raise prize pigs… and much, much more.
When he’s not in the office, you will find him carrying
on a long standing family tradi*on of passing out can-
dy canes to most everyone he runs into.
His wife Shaleah is probably the finest sausage maker
in the western world. Dinner at the Hill home is a
las*ng memory.
There’s a famous landmark in the Kerrville area, that
you may have seen or heard of… it’s a ¾ scale replica
of ‘Stonehenge’ the ancient druid construc*on just
outside of Oxford. Well, Doug built this model as well
as replicas of Easter Island statues. Before he became
an insurance agent, he was a stone mason… and the
model is truly something to see. Next *me you’re in
Kerrville, there are three things you have to do. See
LiDle Stonehenge, stop by Bernhardt’s and pick up
some dry sausage s*cks, and then stop by Hill Insur-
ance and say hello to your fellow member, Doug. All
three will make you smile!
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 6
IS RETIREMENT A REQUIREMENT?
When FDR linked social security with re*rement in the U.S. he adopted the re*rement age used by Germany, 65 years old.
The average length of life in the U.S. at that *me was 63 (When Germany adopted the 65 year old re*rement age, their
average life span was 46). Today our average life span is more than a decade longer than it was in FDR’s *me and is s*ll
going up.
The ques*on before us is, “How will our business lives change due to the extension of produc*ve lives of our insurance
agency owners, most of whom are baby boomers?”
First, we must cover the crass truth. For those of us who come from gene*c stock that tend to die in their six*es and seven-
*es, the ques*on of re*rement is actually easier. If we have done well in our business and wish to spend quality *me with
family and doing other things, re*rement is s*ll a viable op*on. Inter-genera*onal transfer of agencies, mergers and sales
is s*ll an op*on that will be exercised by many agents.
However, we encounter a larger and larger number of agents each year who very reluctantly enter the re*rement pool.
They may have promised children, employees, and others that they would turn their companies over to new owners. Agen-
cy Consul*ng Group, Inc. is called in to value the agency and structure the change of management along with ownership.
But a growing number of agents express reluctance and resistance when the transi*on is about to occur. They have
planned for re*rement but when re*rement faces them, they don’t really want to leave.
It’s Really Not the Money!
If you are an agent of re*rement age and find that you don’t have the assets to support yourself in re*rement – even with
the value of the agency earning you interest in an investment -- then you may not be financially able to re*re.
This is a simple analysis of assets vs. long term living expens-
es and we all should do this exercise. Call us (800-779-2430)
if such an analysis is needed in your Perpetual Plan.
Most agents are aware that Agency Consul*ng Group, Inc. is
a primary valuer of insurance agencies in the U.S. What you
may not realize is that we actually counsel agents away from
agency sales and transi*ons when their financial condi*ons
prohibit their re*rement.
Most independent agents in the U.S. fall into two categories,
those whose agencies provide them basic support for their
families (it’s a job and a working income) and those whose
agencies provide sufficient income to both support their life-
style and sponsor investments for re*rement plans. You
don’t have to be a liberal spender to fall into the basic sup-
port category. A large number of insurance agents earn sub-
stan*ally less than a six figure income during their produc*ve
careers. Although their annual compensa*on may provide
them sufficient income to support a family, few agents in this
category can invest sufficient income in re*rement vehicles
to con*nue their lifestyles past their produc*ve agency ca-
reers. If their agencies, themselves, cannot provide sufficient
value to provide equivalent income streams a=er their re*re-
ment, they may find that re*rement is simply not available to
them.
These agents can s*ll perpetuate, sell or merge their busi-
nesses, but they have to con*nue to work simply to maintain
their lifestyle. On the other hand, many agents have done an
excellent job in their money management and, as a result,
are certain that they can support themselves as long as their
agency’s value provides sufficient addi*onal investment re-
turns in the future. But what happens if you CAN re*re, but
don’t want to?
If you are fi=y or fi=y-five, sixty or sixty-five or even 70 and
s*ll have the energy and stamina to pursue the insurance
business, you should have the op*on to sell and leave the
business, but you should not be forced to leave it.
If we look at the number and quality of the people entering
the insurance business in the last twenty years (our agency
successors) we find that we haven’t enrolled the same quali-
ty or quan*ty of insurance professionals into the insurance
industry than we did in the 1960’s through the 1980’s (the
Baby Boomers).
That is not an accusa*on. That is a reality because those sub-
sequent genera*ons simply had fewer members and those
people had many more op*ons in career development than
we did when we went to college.
How can we enjoy the benefits of our agency’s value but not
leave it?
The answer is a mindset change that will permit senior
agents to sell down their interest in their agencies but s*ll
stay ac*ve in the business. Most buyers (except, in some cas-
es, long term par*cipants in the agencies) desire the old
owner to stay for some period to transi*on the customer and
carrier rela*onships to the new owners. Many new owners
would even welcome the con*nuing par*cipa*on of the old
owners in service and rela*onship maintenance roles to max-
imize reten*on and earnings capacity. However, the keys to
the reten*on of the old owners are the transi*on of decision-
making roles, the level of ac*vity of the old owners and the
compensa*on expecta*ons of the selling owners.
Make no mistake about this -- The main block for having old
owners stay with their agencies a=er a sale is EGO. The old
owner has been in control for decades. If his ego cannot
stand the transi*on of decision-making to a new owner, he
must either con*nue in an ownership role or he must leave
the agency. And this means that those high-ego owners may
never personally realize the value of their agencies. Selling
the agency and s*ll retaining decision-making authority in
the old owner is a recipe for disaster.
If, on the other hand, you can assume an “emeritus” posi*on
and con*nue maintaining rela*onships with your clients
while the new owner makes the decisions and operates the
agency then you may have an on-going role in the agency
that is both produc*ve and rewarding. Iden*fy a specific
book of business that needs your par*cipa*on and the value
of that role to the agency. The agency’s new owner will prob-
ably enjoy your ac*ve par*cipa*on in reten*on (and in
growth) of the agency’s book of business. Iden*fy the appro-
priate value to the role and don’t expect a compensa*on lev-
el (and perks) equivalent to that earned while you were an
owner. Your value should be equivalent to what you would
pay to hire an experienced person to fulfill the role assigned
to the selling owner—no more, no less.
(con*nued on page 19)
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 7
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 8
YIPs Names New President
With many years experience running a multi-store operation, David is equipped to offer young people interested in our business a unique perspective of the agency business and help YIPs achieve their objectives during the coming year.
The YIP’s incentive is to introduce young peo-ple to our industry with access to successful professionals to help them consider a career in the insurance business. In addition, YIPs will help smaller agencies achieve success by offering whatever practical help they need.
Their first project, the “Meaningful Education Series” will offer both continuing education and sessions with practical training for the day-to-day operation of a successful agency in today’s environment.
Covering a College
Student’s Belongings
If you are sending your child off to college this fall, you probably realize that your life is about to change. You might not realize that your insurance needs change as well. Here’s what you need to know about college stu-dents and insurance.
Take a peek inside a typical college student’s
room: you’ll probably find a laptop, a smart
phone, a television, a bike, clothing, jewelry and
furniture. Altogether, most students bring thou-
sands of dollars worth of property to school.
If your student is living on campus, her property
is probably covered by your home owners insur-
ance policy. However, most policies do not cover
the property of students living off campus. In ei-
ther case, you will want to make sure your child’s
valuables are insured.
Student property insurance
College students can buy insurance designed spe-
cifically to protect their personal property. This
insurance has several aDrac*ve features:
Low deduc�bles: While homeowners de-
duc*bles generally range from $500-
$2,000, student policy deduc*bles can be
(con*nued on page 17)
David Gorman, owner of Dallas based agency AmericoDirect Insurance has been elected to serve as President of The Young Insurance Professionals initiative of the Texas PIA. He brings with him the energy and commitment that won him
the “David Almany - Volunteer of the Year Award” in 2014.
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 9
Ad Size Monthly Pre-Pay 6 Issues
Full Page $200.00 $1,000.00
Half Page $150.00 $750.00
Third Page $100.00 $500.00
Quarter Page $50.00 $250.00
Check out the rates for the most cost effec�ve method of keeping your
message in front of your customers… professional insurance agents.
Ques�ons? Contact Joe Tipton at joe@piatx.org or (972) 862-3333.
WHY CUSTOMERS LEAVE
1% Die
3% Move Away
5% Buy from Friends
9% Prefer our Compe�tor
14% Judge all like business
by one bad experience
68% Leave because of ONE employee’s in differ- ence, rudeness or lack of service.
Congratula�ons to Tony Marquez,
the winner of the Kindle Fire HD
tablet door prize at the DFW EZ CE
& BBQ on October 1st.
What To Look For In A Tablet
and away from textbooks.
A tablet computer is designed primarily as a consump*on device to
read and consume informa*on. Currently, it is not well-suited to
write large amounts of text. For wri*ng, I con*nue to use a laptop
with a standard keyboard. If you plan to subs*tute a tablet for a
notebook computer you likely will be disappointed, since it is not
easy to enter long streams of text unless you have an external key-
board.
Even though keyboards are available, most people don’t use them
frequently. It certainly is easier than typing on a smartphone, but, in
my opinion, anything beyond a sentence or two can be cumber-
some and inefficient. For extended wri*ng, I think most people con-
*nue to use their notebook.
CHOOSE AN IPAD
Last month, Apple announced the availability of “The new iPad,” the
latest third-genera*on iPad. Several improvements in this version
include a new high-resolu*on screen called Re*na, a faster pro-
cessing chip called A5X, an updated camera and the availability of
the faster 4G LTE cellular Internet network. At the same *me, Apple
dropped the price of the iPad 2 by $100.
There is no ques*on that for the foreseeable future the iPad will
dominate the tablet market. Hopefully, Android tablets will provide
(con*nued on page 23)
By Steve Anderson, CIC
Tablet devices like the Apple iPad and Motorola Xoom change how
insurance producers interact with client and prospect informa*on;
present insurance coverage proposals; and consume and share in-
forma*on drama*cally. This trend will con*nue to accelerate and it
is likely that many producers will see tablet devices as a “must-
have” sales tool.
My first tablet device was a Motorola Xoom, purchased as soon as it
became available. I began to see an increasing number of insurance
agency personnel who brought tablets (mostly Apple iPads) to
presenta*ons. And, my personal experience with the Motorola
Xoom showed the tablet could be a great device for consuming in-
forma*on. I le= my laptop at the office more and began to bring my
tablet home with me.
One key to the success of tablets is the form factor and the ability to
consume electronic content easily and have rapid access to key in-
forma*on when you need it. The latest iPad is about the size and
weight of a small magazine, yet it can hold hundreds of thousands
of books. Unlike a bulky notebook computer, which typically weighs
three-to-five *mes as much, it is easy to carry with you.
Many different types of businesses u*lize the iPad effec*vely. Yale
Medical School has its en*re curriculum available on the iPad.
Many, if not most, airlines are in the process of conver*ng their 40
pounds of paper flight manuals carried by each pilot to iPad equiva-
lents. There is no ques*on that many schools will switch to tablets
and away from textbooks.
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 10
Texas PIA Offers Members Satisfying E&O Solutions
“Fifteen minutes could save you 15%.... Everyone knows that1 but did you know that not all E&O policies are the same?
E&O is like other types of insurance1 you buy it hoping you’ll never need it1 but if you do1 E&O can be the difference in whether you stay in business or not.
How about it? Do you know what your poli-cy covers1. And more importantly, what it doesn’t?
Texas PIA offers members, quality E&O mar-kets and coverage. And members say they have saved as much as 40% when they switch to exclusive PIA programs.
Call today and get an analysis of your cover-age and a competitive quote from multiple markets.
Call Texas Insurance Professional Services:
Ray Reyes or Bob Dixon
(214) 618-2365 (832) 375-0787
ray@piatx.org bdixon@piatx.org
Think about it:
A father calls back to his son’s bedroom:
Father: “Jimmy did you say your prayers?”
Jimmy: “I’m saying them now.”
Father: “I can’t hear you…”
Jimmy: “I’m not talking to you.”
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 12
Assertiveness Training
A mild-mannered man was
tired of being bossed around
by his wife, so he went to a psy-
chiatrist. The psychiatrist said he
needed to build his self-esteem,
and so gave him a book on as-
sertiveness, which he read on
the way home. He had finished
the book by the time he
reached his house.
The man stormed into the
house and walked up to his
wife. Pointing a finger in her
face, he said, "From now on, I
want you to know that “I” am
the man of this house, and my
word is law! I want you to pre-
pare me a gourmet meal to-
night, and when I'm finished
eating my meal, I expect a
sumptuous dessert afterward.
Then, after dinner, you're going
to draw me my bath so I can
relax. And when I'm finished
with my bath, guess who's go-
ing to dress me and comb my
"The funeral director," said his
wife.
hair?"
TDIACTIONS
Recent TDI Disciplinary Ac�ons:
Byers, William Marlin of El Paso
Order Number: 3325
Date of Order: 6/5/2014
Ac�on Taken: Must cease and desist from performing acts of an insurance agent
and engaging in acts that cons*tute business of insurance
Viola�on: Unauthorized insurance
Comprehensive Behavioral Care, Inc. of Tampa, FL
Order Number: 3348
Date of Order: 6/17/2014
Ac�on Taken: (SOAH Docket No. 454-14-3633.C) Third party administrator cer*fi-
cate of authority and u*liza*on review agent cer*ficate of registra*on revoked
Viola�on: Failed to *mely adjudicate claims and report a change of ownership and
control
Cypress Texas Lloyds of Jacksonville, FL
Order Number: 3363
Date of Order: 6/20/2014
Ac�on Taken: Fined $75,000
Viola�on: Failed to conduct annual examina*on of Managing General Agent; Con-
ducted business with unlicensed MGA
Gallemore, Larry W. of Azle
Order Number: 3366
Date of Order: 6/24/2014
Ac�on Taken: SOAH Docket No. 454-14-3460.C) General lines life, accident, and
health license; general lines property and casualty license; and adjuster license
revoked
Viola�on: Incarcera*on for felony convic*on
Garcia, Adrianna M. of Pflugerville
Order Number: 3324
Date of Order: 6/5/2014
Ac�on Taken: Fined $2,000
Viola�on: Engaged in fraudulent or dishonest acts or prac*ces
Hart, Wesley of San Antonio
Order Number: 3347
Date of Order: 6/17/2014
Ac�on Taken: (SOAH Docket No. 454-14-3081.C) Fined $5,000; General lines prop-
erty and casualty license revoked
Viola�on: Engaged in fraudulent or dishonest acts or prac*ces
Penta, Jeffrey Douglas of Waltham, MA
Order Number: 3335
Date of Order: 6/9/2014
Ac�on Taken: (SOAH Docket No. 454-14-3081.C) Nonresident general lines proper-
ty and casualty license revoked
Viola�on: Engaged in fraudulent or dishonest acts or prac*ces; Failed to *mely
report order of another state regulator
Rodriguez, Guadalupe of Harlingen
Order Number: 3361
Date of Order: 6/20/2014
Ac�on Taken: (SOAH Docket No. 454-14-3635.C) Fined $5,000; General lines life,
accident, and health license and general lines property and casualty license revoked
Viola�on: Misappropriated or converted money belonging to an insurer or insured
ContactUs
Give us a call for more infor-
mation about member services
and products.
Texas PIA and Young
Insurance Professionals
3632 Frankford Rd 200B
Dallas, Texas 75287
(972) 862.3333
joe@piatx.org
www.piatx.org
“Assuming the customer
is always right can lead
you straight to E&O ex-
posure� and lose you a
company....”
- The Insurance Sage
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 13
: https://wwwapps.tdi.state.tx.us/inter/asproot/commish/da/clips2014.asp
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 14
DFW EZ CE & BBQ The meeting in early October was a big success!
Extremely informative as always! Thanks Keith Moon!
WE APPRECIATE
OUR PARTNERS
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 16
Aggressive Insurance
21st Century Managing General Agency
Affirmative Insurance
Alpha Insurance
American Southwest Insurance Managers
Ashley General Agency
Berwick Insurance Group
Celestite Group
Columbia Lloyds Insurance Company
Integra Premium Finance
Direct General
Dovetail Insurance
Empower Insurance Group
FloodSmart
Frank Crum
Great American Insurance
Hallmark Personal Lines
Hagerty Classic Insurance
Imperial Fire and Casualty
Imperial PFS
Insurance by Design
iMGA
Louis A. Williams & Associates, Inc.
Lane and Associates
Mendota / American Bankers Insurance
Mercury Insurance
Midlands Management
National Lloyds
Nations Safe Drivers
Personable Insurance General Agency
Premium Funding Associates, Inc.
Progressive
Ramsgate Managing Insurance
Safeway Insurance
Select Insurance Markets Inc.
Superior Access
Southeast Surplus
US E&O Brokers
United Auto Insurance Group
Varsity Insurance Group
Western General Insurance Company
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 17
(con*nued from page 8)
as low as $25. If your student’s $1,000
computer is stolen, he could receive $975
to replace it.
First dollar payment: Even if your stu-
dent’s possessions are covered by your
homeowners policy, the student policy
pays the claim. Your own claims history is
not blemished by your child’s loss.
Worldwide coverage: This is important for
students who plan to study or travel over
seas.
Student property policies have limita*ons. Unlike
most homeowners policies, they do not cover
lost items — only stolen property, confirmed
with a police report. Addi*onally, the policies do
not have liability protec*on, which is standard in
homeowners policies. This coverage costs about
$125 per year for $5,000 in coverage with a $25
deduc*ble.
Renters insurance
Renters insurance is worth considering if your
child is living off campus. It covers personal prop-
erty that is lost or stolen and also provides liabil-
ity protec*on if someone is injured while in your
student’s residence. According to the Na*onal
Associa*on of Insurance Commissioners, policies
generally cost between $15 and $30 per month,
depending on the loca*on and size of the rental
unit and the value of the possessions insured.
As with homeowners insurance, you pay a larger
premium for a lower deduc*ble. Some*mes,
roommates can buy one policy that covers every-
one in the rental property.
You need to know whether you are buying
“actual cash value” or “replacement cost” cover-
age. With cash value coverage, the insurer will
seDle a claim for a lost laptop for a depreciated
amount. With replacement cost coverage, your
seDlement pays to actually replace the computer.
You pay only the deduc*ble. Replacement cost
coverage costs more, but will provide a higher
seDlement for property claims.
Please note that some policies have separate,
lower limits for valuable items such as jewelry,
an*ques and electronics. If your child’s renters
policy doesn’t provide adequate coverage for his
or her electronics, you can buy addi*onal cover-
age by “scheduling,” or itemizing, this property
separately.
Auto insurance
If your student is taking a car to school, call us to
discuss the best way to handle your auto insur-
ance. Auto rates may be significantly different in
the city or state where the school is. We can run
the numbers and let you know whether it makes
sense to keep the car on your policy or buy a new
policy.
Iden�ty theR
Iden*ty the= costs vic*ms more than $5 billion
each year. College students are especially vulner-
able because they are more open to requests for
personal informa*on. (Think Facebook.) Your
homeowners policy may already cover you and
your family for the costs of reclaiming your iden-
*ty. Give us a call and we’ll confirm your cover-
age or give you informa*on about adding it.
Protec�ng your property
The Insurance Informa*on Ins*tute recommends
(con*nued on page 25)
(con*nued from page 7)
Be Wary of the R.I.P.
Many agency principals feel that they have “paid their dues” and have earned more *me off, addi*onal perks, and leeway in
their business dealings. While they are business owners, they are right. A=er they sell their businesses, they are described as
R. I. P., Re*red In Place. In the armed services we described short-*mers who no longer adhered to the rigid rules of behavior
as R.O.A.D., Re*re on Ac*ve Duty.
Neither the armed forces, nor the independent businesses in the U.S. can afford par*cipants who are R.I.P. or R.O.A.D. If your
desire to remain in the business stems from the desire to remain ac*ve, to con*nue to serve your clients and to support the
next genera*on of agency owners, it is commendable and should be pursued. Financial issues should be considered because
value received is equivalent to value paid. But if you seek a con*nua*on of your compensa*on (or its equivalent) without your
ac*ve commitment of *me and effort to the company, please reconsider your posi*on.
No, Re*rement is not a Requirement. It remains an op*on for agents who are *red of the “grind” or can no longer abide with
the clients, the carriers, the employees or the vagaries of the industry. If they are s*ll energe*c enough to be ac*ve in the
community, they should sell, re*re and seek other avenues for their con*nued ac*vity and mental well-being. A new career
and community service are examples of fulfilling direc*ons that take agents out of the insurance industry but doesn’t put
them in a rocking chair.
If you feel that you’ve just “hit your stride” and are finally at the point that you no longer worry about the next sale, you may
be beDer served (and live longer) by remaining ac*ve in the insurance agency – as long as you don’t get in the way of the new
owner’s direc*on for the agency.
If you can neither afford to re*re or have no poten*al successors, you MUST con*nue working through your later years, but
you don’t have to concentrate on growth. Many agents have taken the decade a=er they should have re*red to reduce ex-
penses and *me in the agency and wean the agency down, enjoying greater returns during those years than when they were
forced to fund personnel, systems and business growth. It can easily take ten to fi=een years to wear an agency down to a
pure service level for the exis*ng client base. This may be considered for agents in circumstances in which the sale of their
agencies would not return sufficient funds to sponsor their lifestyles for their expected life*me.
Texas PIA Names New Executive DirectorTexas PIA Names New Executive DirectorTexas PIA Names New Executive DirectorTexas PIA Names New Executive Director October 1, 2014 – The Texas PIA has appointed Joe
Tipton, of Dallas, Texas as Executive Director. With more
than three decades of experience in the Texas insurance
market, Joe offers an in-depth understanding of all facets
of our industry. For the past year, he served as Member-
ship Director, increasing membership 42%.
Earlier this year, PIA National awarded Texas PIA the “2014 Growth Achievement Award” for outstanding growth in members.
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 19
18. A specialist in the mathema*cs of
insurance.
22. Companies with no capital stock
and owned by policyholders.
25. The current president of the Texas
PIA.
26. A representa*ve of the insurer
who seeks to determine the extent
of the Insurer’s liability for loss
when a claim is submiDed.
27. Amount of loss that the insured
pays before the insurance pays.
28. Fee paid to an agent or insurance
salesperson as a percentage of the
policy premium.
29. Insurance salesperson that search-
es the market in the interest of the
client, not the insurance compa-
nies.
31. The automa*c re-establishment of
in-force status effected by the
payment of another premium.
32. The cause of a possible loss.
1. R. Templeton using ailerons.
2. Agreement by insurer to make peri-
odic payments that con*nue during
the survival of the party for a speci-
fied period.
5. Condi*ons not covered by the gen-
eral insurance contract.
6. Broadly, any legally enforceable
obliga*on.
8. The price of insurance for a specified
risk for a specified period of *me.
11. Life insurance which might be kept in
force for a person’s en*re life and
which pays a benefit upon the per-
sons death.
13. A pre-determined flat fee an individ-
ual pays for health care services, in
addi*on to the insurance coverage.
15. The ra*o of incurred losses and loss
adjustment expenses to the net
premiums earned.
17. What Joe Tipton drove before 1940?
1. The wriDen contract effec*ng
insurance, or cer*ficate thereof, by
whatever name called, and includ-
ing all clause, riders, endorse-
ments, and papers aDached there-
to and made a part thereof.
3. A loss of significant size that it can
be said that there is no value le=.
4. Individual who sells and services
insurance policies.
5. A leading Managing General Agen-
cy headquartered in Ft. Worth,
Texas.
7. Restora*on to the vic*m of a loss
by payment, repair or replace-
ment.
9. The right of an insurer who has
taken over another’s loss also to
take over the other person’s right
to pursue remedies against a third
party.
10. Auto insurance for average drivers
with rela*vely few accidents during
life*me.
12. Tom Sorrels alter ego
14. Circumstance increasing likelihood
or probable severity of loss.
16. The part of the premium applicable
to the unexpired part of the policy
period.
19. In effect, insurance that other in-
surance companies buy for their
own protec*on.
20. The process of selec*ng risks for
insurance and classifying them ac-
cording to their degrees of insure-
ability so that the appropriate
rates can be assigned.
21. The scope of protec*on provided
under an insurance policy.
23. The amount represen*ng the actual
or poten*al liabili*es kept by an
insurer to cover debts to policy
holders.
24. Purchasing bond investments that
mature at different *me intervals.
30. A demand made by an insured, or
by the insured beneficiary, for
payment of the benefits as provide
end by the policy.
1 2 3
4
5 6 7
8
10
9
12
11
13
16
14
17 18
15
20
21
22
23
26
25
28
29
31
32
27
24
30
19
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 20
ACROSS DOWN
You might feel like
you are playing a
game. But it’s more
likely you’ll feel like
you’re taking your
insurance license ex-
am.
Either way, be the
first person to either
fax or email your
completed puzzle
with all of the correct
answers and you will
win a fabulous prize!
Feel free to call Joe if
you’re stuck.
972.965.2025
Email to:
Joe@piatx.org or fax
to 972. 307.7888
Looking to sell? Looking to buy or trade? Just want to haggle? More fun than
EBay, safer than Craigslist. It’s Free, Give it a try! Email your ad
to TradingPost@piatx.org
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 21
Mark your calendars for the November 12th CE Meeting!
“Agency Management” Series
2 hours of FREE CE, door prizes ... plus great Mexican food!
6:00 to 9:00 p.m.
415 W. 12th Street
Dallas, TX 75208
(214) 941-4304
Texas Insurance Professional Services
Ray Reyes or Bob Dixon
(214) 618-2365 (832) 375-0787
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 22
This new feature of The Texas Connec*on is a column dedicated to
Marke*ng Reps. You have the opportunity to pass on compliments
and cri*cisms, helpful hints and pet peeves… We know there are
things that Agents might do beDer… and this will give you a larger
plaZorm to spread your message. The objec*ve is communica*on
for beDer company/agency rela*ons. It can be anonymous… or we
can publish your contact info… your call… Try it! It will be construc-
*ve… it might even be fun!
(con*nued from page 10)
some compe**on in the future, but for now the iPad rules. If you
haven’t purchased one, here are some sugges*ons for which model
to buy.
Wireless Internet. One key to make the iPad a great tool is the
speed of your connec*on, as many of the useful apps may be slow
for some people to use at typical 3G speeds. You will have the op-
*on of Wi-Fi only or Wi-Fi and Cellular 3G (iPad 2) or 4G on the new
iPad. I suggest you consider not purchasing the cellular model. It will
cost $100 more and you also will need to pay a monthly access fees
to Verizon, AT&T or Sprint for a wireless Internet connec*on that
will work only on the tablet. I purchased the Wi-Fi only version.
I also purchased a MiFi 4G wireless data card to allow me to connect
up to five devices through its Wi-Fi hotspot capability. My cost is
$50 per month, the same price as the iPad-only wireless data plan.
This device provides the flexibility of connec*ng other devices like
my iPhone and laptop to the same wireless connec*on. By the way,
the 4G wireless network is significantly faster than the current 3G
network.
A poten*al downside of not purchasing the 3G op*on is the lack of
GPS. Several naviga*on applica*ons use the GPS signal contained in
the iPad to allow you to have turn-by-turn direc*ons. These applica-
*ons will not work on a Wi-Fi only model. For me this was a reason-
able trade-off because my iPhone is my GPS naviga*on tool.
Storage space. The op*ons for the amount of storage you are able
to put on the device is 16 GB, 32 GB and 64 GB. Each step up adds
$100 to the total cost of the tablet. How much space you need will
depend on what kind of informa*on you plan to put on the device.
Text and photos typically take up a smaller amount of storage
space. Music and videos eat up space rapidly. If you’re using the
tablet primarily as a sales tool then you may be able to get by with
the 16 GB model. If you can afford it, the 32 GB model would likely
meet your needs.
While the iPad device is nice, it really is the applica*ons that you
can download that make it effec*ve sales tool. There are more than
400,000 different applica*ons in the iTunes App store that you can
install. The applica*ons that will work best for you o=en are based
on personal preference. Following are some apps that I think should
be installed on your device to help you sell insurance.
I have scanned thousands of ar*cles and downloaded different ap-
plica*ons, and these are some of my favorites. This is not meant to
be an exhaus*ve list, since each independent agency has its own
interests or specific needs, but this is a good place to start.
Evernote. This service allows you to store all kinds of random in-
forma*on on different plaZorms. Evernote is intended for all the
random (unstructured) data in your life. And, “data” means
“informa*on,” not necessarily just “words.” For example, you can
store whole websites; a photo of a prospect building; an audio re-
cording of your ini*al interview; as well as handwriDen notes.
Evernote allows you to quickly store and retrieve informa*on and
includes full-text searching (meaning it is fully indexed).
Notetaking and PDF annota�on. Several popular notetaking apps
include: Penul*mate, Ghostwriter Notes, iAnnotate and GoodNotes.
In addi*on to taking notes Ghostwriter Notes allows you to anno-
tate PDF files. This allows you to write on a PDF document (including
signatures) and have the notes become part of the document.
DropBox. Another free app that allows you to transfer and share
files between your computers and your iPad easily. Two gigabytes of
storage is available for free, which is more than enough for most
users, but if you need more you always can purchase addi*onal
space.
Google Maps. Google Maps is an amazing tool that doesn’t cost
anything and is a great way to navigate to a loca*on while not only
driving, but walking.
Instapaper. Instapaper allows you to maximize the use of your
iPad as a reading tool. You can use this to transfer ar*cles you find
on your computer to your iPad easily. You install the web version on
your desktop or notebook by dragging the icon to your toolbar.
When you find an ar*cle you want to read later, you click the icon in
your toolbar and like magic the ar*cle appears on your iPad ready to
read with all the ads stripped out, which makes it easy to read.
AppStart for iPad. For those who are just learning how to use the
iPad, AppStart is one of the best apps. It is a tutorial inside of a
guide inside of an ... iPad! It has a great user interface that simplifies
the process of learning about Apple’s iPad.
These are a few of the applica*ons I suggest you explore to see how
they might work for you.
Anderson is a na�onally recognized expert on agency-company
technology. A prolific writer, his knack is transla�ng between
“geek speak” and the language of agency managers. Anderson’s
ability to fine-tune his ideas for the real world has made him one
of the industry’s top technology consultants and speakers. For
more informa�on, visit www.steveanderson.com.
—Reprinted with permission from PIA Management Services Inc.—
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 23
(con*nued from page 17)
several things students can do to help recover lost items and lower the odds of a the=.
♦ Leave valuables at home. Do not take unnecessary items such as expensive jewelry.
♦ Create a dorm inventory. See www.knowyourstuff.org for a free online inventory program sponsored by
the Insurance Informa*on Ins*tute.
♦ Engrave electronics with the student’s name.
♦ Lock the door. Insist that roommates also lock the door to a dorm room or rental unit.
♦ Use a laptop security cable.
♦ Beware of scams. Encourage your child to talk to you before buying anything that requires advance pur-
chase or providing a Social Security number.
Whatever major changes occur in your family, it makes sense to see if your insurance matches your lifestyle.
LOOKING FOR EXPERIENCED CSR
COMMERCIAL LINES CSR
Temple/Belton area. License required.
Excellent salary & benefits.
Send Resume to: classifieds@piatx.org
North Houston Agency needs personal
lines CSR. Flexible hours... pay scale
based on experience.
Send Resume to: classifieds@piatx.org
LICENSED SOLICITOR OPENING
AGENCY FOR SALE
Dallas area, 2 years old, high
traffic store.
Send inquiries to:
classifieds@piatx.org
Agency in South Dallas increasing mar-
ke*ng staff. Good compensa*on and
working condi*ons.
Send Resume to: classifieds@piatx.org
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 25
THE TEXAS CONNECTION - TEXAS PROFESSIONAL INSURANCE AGENTS DIGITAL JOURNAL Page 26
(con*nued from page 3)
Steer your liDle ones toward
costumes that don’t have extras
like swords, guns or knives that
they can fall on or accidently hit
someone with. If there’s just no
talking them out of them be
sure that they’re short and so=.
Comfy shoes are the rule – no
one wants to contend with a
blister because of new or ill-
fi[ng shoes.
If going house-to-house stay
within a couple of blocks of
your own house.
Plan to eat all candy a=er you
arrive safely back home. That
way you can check to be sure
that each piece is individually
wrapped and has not been tam-
pered with. (NO one wants
tears to interrupt what children
have been looking forward to.
One solu*on to ea*ng the can-
dy that’s collected could be to
agree to have a piece at your
own house before you start out
– it will make it easier to save
the rest.)
Being a promulgated policy
form, you’ll notice if you look
closely enough, Subsection C of
Article 8 where it clearly denotes
the terms of permissive use.
Insurance can be complex!
Never hesitate to ask us. We
have collectively hundreds of
years of insurance experience
between our members.
(972) 862-3333
Last word the
As unscien�fic as this observa�on may be… It appears from
member email addresses in our database that many of you
members do not have an agency web page. If you’re wri�ng
all the business you want, then no reason to read on... If
you’d like to see your business increase by up to 18% or
more... then consider this:
Texas PIA has made arrangements for you to get a FREE
website design (a $350 value) and help your agency move
into a new age of marke�ng. This is not a joke... it’s not a
sales gimmick... And it is available only to Texas PIA mem-
bers.
If you’d like to know more, contact me:
Email: joe@piatx.org or call 972.862.3333
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