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ALSO INTHISISSUE:________________

12 metrics to track for agency growth

Emails and teleconferencing may be time-savers, but there is no substitute for the one-to-one relationships with insurance professionals who know you and your community. Early on, EMC Insurance Companies realized the value of being close to agents and policyholders. That value continues to pay off in products and services tailored to individual market needs. Whatever the future holds, insurance will always be a relationship business and EMC will continue to keep those relationships as close to your office as possible.

We’re celebrating our 100th year by planning for our next 100 years.

Tanya Wentzel, Des Moines Branch Marketing ManagerTroy Boysen, Minneapolis Branch Commercial UnderwriterConnie Jarzynka, Omaha Branch Claims Adjuster

Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2011 All rights reserved

Members steer the way

The world really does revolve around you. At IA&B anyway. IA&B is grounded in the philosophy that you — the member — know best and should chart the course of your association. Here, IA&B shares its evolving strategies for soliciting member feedback.

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12 growth metrics to track

A select few high-growth agencies consistently increase their total personal lines books by 10 to 24 percent. Here, we pinpoint what they have in common,including how they track their marketing efforts to understand what is and is not effective.

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ContentsP R I M A R Y A G E N T M A G A Z I N E

Copyright 2012. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two monthsprior to publication. Advertising rates furnished upon request.

Address inquiries to:Primary Agent Editor5050 Ritter RoadMechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office. Ride-along enclosed.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-12 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

2 Chair of the Board’s Message3 Member FAQ4 State News6 Preventing E&O8 Coverage Corner12 Tools You Can Use

13 IA&B Partners19 Glance at Events22 HR HeadquartersIBC Advertisers IndexIBC Classified AdsIBC Last & Least

In every issueMission StatementPrimary Agent delivers ideas to help InsuranceAgents & Brokers’ members negotiate their uniqueposition as guardians of trust between insuranceconsumers and companies while facing thechallenges of maintaining a small business. PrimaryAgent also supports IA&B’s mission to preserve andadvocate the American Agency System.

Get social with IA&B

Driving members to distinction.

OfficersNorman F. Basso, CPCU

Chair of the BoardYork, Pa.

G. Greg Gunn, CICVice Chair of the BoardLemoyne, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PImmediate Past Chair of the BoardWest Chester, Pa.

MembersJoyce M. Bailey, CIC, CRM, CPIW

Newark, Del.

Henry “Butch” Bradley, Jr.Forest Hill, Md.

Timothy P. BurrisMifflintown, Pa.

N. Lee Dotson, CIC, AAIWilmington, Del.

Michael P. ErtelColumbia, Md.

John L. FrankenfieldTelford, Pa.

John B. HollisterMilford, Pa.

Diana M. Hornung Hanby, ACSRWilmington, Del.

Jocelyn R. Howard-Sinopoli, CIC, CISRButler, Pa.

Robert S. Klinger, LUTCF, CPIA+

Germantown, Md.

Douglas A. Loesel, CPCUErie, Pa.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Craig S. Mader Gambrills, Md.

Ann Gallen Moll, CICReading, Pa.

April E. Ressler, CICAltoona, Pa.

Scott C. Rogers, CPIA*York, Pa.

David B. Wasson Sr., CICState College, Pa.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM**New Castle, Del.

* Pa. IIABA National Director** Del. IIABA National Director+ Md. PIA National Director

Board of Directors

[ 2 ]

Norman F. Basso, CPCU

Chair of the Board’sM E S S A G E

IA&B is all ears

It’s nice to be heard. No, scratch that. It’s nice to listen and to belistened to in return.

From the distracted teenager sitting across the kitchen table, to the emotionally detached customer service rep answering the phone for the utility company, to the — let’s get personal here — unreceptive pet snoozing on a favorite recliner, daily life is full of those talking-to-a-brick-wall moments.

One of the things that initially drew me to IA&B and keeps meinvested today is the organization’s member-centric philosophy.When producers talk, IA&B listens.

The commitment runs deep. Three state-specific public affairscommittees and 13 member agent panels provide direction andinsight to the member-run boards of directors. And beginning in2013, IA&B will launch additional opportunities to secure member feedback based on agency demographics.

I encourage you to get involved with your state agents’association. It’s an opportunity to influence change for thebetterment of your agency, IA&B and the independent agencysystem. Trust me, IA&B is all ears.

Until next month,

Norm Basso

[ 3 ]

ANSWER:Probably not. First, it’s important to determine where theagency is located. When it comes to broker of record(BOR) letters, not all states have a statute laying outrequirements for carriers or producers to follow. Absent astatute, the modus operandi is generally determined by,and up to, the carrier.

Delaware: No statute or regulation governing treatmentof a BOR letter.

Maryland: BOR letters are addressed under the Unfair Trade Practices title (Title 27), Subtitle 9, § 27-911 - Requests for change of insurance producer ofrecord. The law:

w Requires carriers to accept the BOR within 30 daysof the request unless the policyholder withdrawsthe order in writing;

w Requires that the new producer have a currentappointment with the carrier before the transfer is effective;

w Requires that commissions go to the new producerno later than the next renewal (except for vestedlife, supplemental health commissions andcompensation payable under an insurer’sretirement or deferred compensation plan withthe producer); and

w Requires that the BOR be in writing and containspecific information (policyholder’s name andaddress, policy number, name and address of thenew producer of record, and date of request).

The law does not provide specific requirements or atimeframe to notify the current producer.

Pennsylvania: No statute or regulation governingtreatment of a BOR letter.

In your specific case, while it is a common industrypractice and proper etiquette, none of our three statescompel the company to notify the current producer withina certain timeframe. You could check whether youragency agreement addresses company procedures forbroker of record situations and, specifically, if it commitsthe company to a notification timeline. If your agreementis silent and no other underwriting procedures orcompany guidelines address the subject, you will havelittle recourse.

DO YOU HAVE A QUESTION? Email it to us at iab@iabgroup.com. Please use “PrimaryAgent FAQ” in the subject line of your message. You canalso fax your question to 717-795-8347. We look forwardto answering your questions!

QUESTION: One of my carriers sent me notification three weeks after the fact that a broker of record letter was submitted on one of my accounts. I feel it did not give me enough time to attempt to gain the client back. What does the law say? Do I have any recourse?

Member FAQ

Primary Agent | December 2012

State NewsPennsylvania’s General Assemblyconvenes in Harrisburg as mandated bythe state Constitution on Wednesday,Jan. 2. Both the House and Senate begintheir regular voting session on Jan. 22for what promises to be a busy year withmany new faces in the Capitol. The newyear also brings with it a full legislativeagenda for IA&B, including:

w WC coverage for firefighters —Last legislative session a bill waspassed that enables volunteerfirefighters to collect benefits if theydevelop cancer after being exposedto carcinogens at fire scenes.Municipalities across the state havebeen hit hard with these increasedworkers’ compensation costs, andsome insurers have left thisparticular market altogether. IA&B isworking on a solution to theseincreased rates.

w Certificates of insurance — IA&Bplans to renew its push forcertificates legislation this sessionand will meet with stakeholders andlegislators on the issue.

w Minimum limits — Governmentaffairs staff continues to investigatepotential for increasing the state’sminimum auto insurance limits andremains in contact with the trial bar,carrier groups and InsuranceDepartment to examine all sides ofthis subject.

w State health exchange — At theend of 2012, the PennsylvaniaInsurance Department and theGeneral Assembly failed to meetthe deadlines for a state-run healthexchange per the federal healthcare law. Although many questionsremain unanswered about what ahealth exchange in Pennsylvaniawill look like moving forward, IA&Bwill continue to advocate for therole of agents and brokers as theexchange takes shape.

w Perennial issues — IA&B plans forthe annual legislative attacks oninsurance agents from thelegislature, including bills relating tocredit scoring, increased noticesand the promulgation of limitedlines licenses, among others. IA&Balso will advocate on behalf ofother general pro-agent legislation,such as reducing various tax ratesin the state and efforts to addressinsurance fraud.

IA&B plans to meet with all newlyelected representatives and senators inthe first few weeks of the legislativesession in order to welcome them toHarrisburg and brief them on theassociation and its legislative goals.Members can track IA&B’s legislativework in Agent Headlines and CapitolConnection newsletters, as well as on theassociation’s online Political ActionCenter, throughout the session.

2013 legislative preview

[ 4 ]

Amended surpluslines form in use asof Jan. 1Members spoke, IA&B listened, and theInsurance Department delivered.Effective Jan. 1, insurance producers nolonger will have to list the three carrierswho declined the risk on the 1609-PRaffidavit before placing a risk in thesurplus lines market. (Seeking anddocumenting the three declinations stillwill be required.)

Based on consistent feedback duringMember Agent Panel meetings, IA&Bfor some time discussed the issue withthe Insurance Department andconveyed members’ dissatisfaction withthe “diligent search” and overallantiquated surplus lines process. InSeptember, the Insurance Departmentagreed to revise the 1609-PR form.While the development maintains therequirement to seek three declinationsdue to statutory restrictions, it is a stepin the right direction.

The association will continue discussionswith the Insurance Department on otherpossible improvements to the process.In the meantime, members can accessamended resources on how to submitcompliant placements, as well as therevised form, by visiting the IA&Bwebsite.

www.iabgroup.com/pa/surplus_lines

ProfessionalEmployerDesignation Acteffective Jan. 1 The early July barrage of signedlegislation included the ProfessionalEmployer Designation Act. The law,which will take effect in the new year, isintended to regulate professional

employer organizations (PEO) in thecommonwealth. It applies to peopleengaged in the business of providingprofessional employer services througha PEO and outlines duties andagreements regarding taxation andbenefits, including workers’compensation coverage.

The Pennsylvania Compensation RatingBureau (PCRB) this fall submittedrevisions to the Basic Manual inresponse to the new law. The filingadopts a new rule in Section 1, as well asthree endorsements. More information isavailable on the PCRB website(www.pcrb.com) by selecting “Filings.”

Big “I” meets withGAO to lobby foradditional NFIPcoveragesThe Big “I” government affairs team —IA&B's federal lobbying arm inWashington D.C. — this fall began aseries of meetings with the GovernmentAccountability Office (GAO) to push forthe addition of business interruptionand additional living expenses coverageto the National Flood InsuranceProgram (NFIP).

The Big “I” successfully lobbied for thepassage of the Biggert-Waters FloodInsurance Reform Act of 2012, signedinto law in July, which extends the NFIPfor five years and makes much-neededreforms to the program. The new lawrequires a study by the GAO of theavailability and affordability of businessinterruption and additional livingexpenses coverage both in the currentprivate market and as a potentialaddition to the NFIP. The Big “I” islobbying for the addition of thesecoverages on an optional basis as a wayto improve the program and betterprotect consumers.

These meetings will continue over thenext few months, and the GAO isexpected to conclude its study nextsummer. IA&B will update members inAgent Headlines.

Neighboring newsAttn. producers with customerswho are Maryland employers

The National Council for CompensationInsurance (NCCI) – the designatedlicensed rating and statisticalorganization in Maryland and manyother states, as compared to thePennsylvania Compensation RatingBureau – filed a change in itsExperience Rating Plan formula effectivestarting with 01/01/2013 renewals. As aresult, some clients’ mods will change,even without a change in their lossexperience, and this will impact theiroverall premium.

www.iabgroup.com/md/ncci_mod

New MembersW E L C O M E

Blair Insurance Services IncAltoona, Pa.

Brinker Insurance Agency IncNewtown Square, Pa.

Capital Insurance Works LLCHamlin, Pa.

Eber & Associates IncJefferson Hills, Pa.

Explorer Resource GroupFort Washington, Pa.

First Security InsuranceLatrobe, Pa.

Fortside Insurance Group LLCSwarthmore, Pa.

H D Compton Insurance Agency IncPhiladelphia, Pa.

Main Line Insurance GroupGladwyne, Pa

Westmor Insurance LLCScottdale, Pa.

Patriot Insurance Group IncCassville, Pa.

[ 5 ]

[ 6 ]

CURTIS M. PEARSALLCPCU, AIAF, CPIA

Curtis M. Pearsall, CPCU, AIAF,

CPIA, president of Pearsall

Associates Inc. and special

consultant to the Utica

National E&O Program,

supplied this article.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your E&O coverage,

contact IA&B at 800-998-9644

or iab@iabgroup.com.

Primary Agent | December 2012

How many of your personallines customers have apersonal umbrella?Hopefully, you know theanswer. If not, your agencysystem should be able toprovide the information.Serious claims can occur atany time with any customer,so ensuring your clients havea personal umbrella couldsave them from significantfinancial consequencesshould that major claimhappen to them.

Develop a sales campaignA good starting point is todevelop a small salescampaign to educatecustomers on what apersonal lines umbrellacovers and what theapproximate premium wouldbe. It can be as simple as aninformative letter that goesout to customers. Becausesome clients may not believea major claim could happento them, ask your personallines umbrella markets forsome sample claims. Theseclaims could involve

situations where a personallines umbrella was in placeand responded to the loss —or instances where there wasno umbrella and the clientwas responsible forconsiderable financialresponsibilities.

For those personal linescustomers without anumbrella, include theapproximate cost in themarketing letter. Thispresumes your agency writesthe underlying coverages andthus knows the variousunderlying exposures – suchas the number of cars,drivers, primary andsecondary residences,watercraft and any otherpotential exposures thatcould be scheduled.

There will probably besituations where theunderlying limits would needto be increased to satisfy thespecific umbrella carrier’srequirement. Your marketingletter should address theadditional costs associatedwith this circumstance.

Don’t recommend a certainumbrella limitBe careful not to suggest thata certain limit – $1,000,000,for example – is sufficient as,without a doubt, there havebeen claims exceeding thissize. If you provide apremium for a $1,000,000limit, include a statementnoting that higher limits areavailable.

Marketing letter is solidE&O protectionWhile it is highly unlikely,there’s a chance no one willtake you up on your offer tosecure an umbrella proposal.Have your efforts then beena “waste of time?” Not at all.By reaching out to yourcustomers to notify them ofthe benefits and cost of apersonal umbrella, you havefurther protected yourself inthe event a customer isinvolved in a significantclaim. This writtennotification could be a keypiece of evidence, so ensureeach client’s file contains thisdocument.

PERSONAL UMBRELLAS – SHOULDN’TEVERYONE HAVE ONE?

PreventingE R R O R S A N D O M I S S I O N S

[ 7 ]

Don’t assume you “write” allunderlying coveragesIf your client expresses interest infinalizing an umbrella proposal, knowall of the underlying exposures theywould look to have scheduled on theumbrella policy. If possible, sit downwith the client to guarantee you havethe correct information as there is achance your agency doesn’t currentlyinsure all of these exposures.

For exposures your agency doesn’tinsure, secure the declarations pagefor these coverages. If the limits arenot at the required level, advise thecustomer that the specific exposurecannot be scheduled on the umbrellapolicy until those required limits arein place. Confirm this communicationin writing.

Are there any conditions to theumbrella?The umbrella carrier may imposespecific conditions or limitationswhich could involve a host of issues,so look for any stipulations and bringthese to the customer’s attention.

Ensure the correct underlying limitsare in placeAs noted by the following claim, evenwhen your customer has an umbrella,a problem can develop if there is agap between the actual underlyinglimits and those specifically required:

This claim involves a $250,000 gap incoverage between a personal autopolicy and a personal umbrella. Theagent indicated to the umbrellacarrier that there was a $500,000 CSLin place for his client, and theumbrella policy was issued indicatingon the declarations page that therewas a $500,000 auto policy in place.However, the agent only secured a$250,000/$500,000 BI limit instead ofthe required $500,000 CSL. Theinsured caused a serious autoaccident, resulting in brain damage to

a person in the other car. The casewas ultimately settled for $4,000,000.The auto carrier paid their $250,000limit, and the umbrella carrier paid$3,500,000, the amount they wouldhave been responsible for had theproper $500,000 limit been in place.There was a $250,000 gap. Theplaintiffs’ sued the agency, and theclaim against the agency waseventually settled for $160,000.

Could this claim happen in youragency? It could happen in anyagency without the proper safeguardsto ensure the necessary underlyinglimits are in place at all times.

Discuss umbrella coverage and/orinclude it on proposals for all newcustomers. Look to get the customer's sign-off ifthe customer chooses not to purchasethe umbrella, and then retain thisdocument in your agencymanagement system.

“Let me think about it”If your client states “Let me thinkabout it,” confirm in writing thatcoverage has not been bound.

Developing an umbrella campaign isa great way to identify exposuresyour agency does not insure and“round out an account.” Additionalsales will probably result, plus it’s aneffective way to enhance youragency’s errors & omissionsprotection.

the “A” way — Attitude, Assistance, Adaptability

ATLANTIC SPECIALTY LINES

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CoverageC O R N E R

[ 8 ]

JERRY M. MILTON, CIC

Jerry M. Milton, CIC teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

Primary Agent | December 2012

All states impose time limitsin which workers’compensation claims for awork-related injury oroccupational illness must befiled. These time limits areknown as statutes oflimitation.

Statutes of limitation varyfrom state to state and rangefrom one to three years. Thestatute of limitation for filinga workers’ compensationclaim in California, Florida orTexas is one year. In moststates, including Marylandand Delaware, the statute istwo years. Pennsylvania,with a three-year statute, ismore lenient.

If the claim is not filed withinthe statutory time period,then the injured party isbarred from filing the claimat a later date.Pennsylvania’s workers’compensation law states, “Allclaims for compensationshall be forever barred,unless, within three yearsafter the injury, the partieshave agreed thatcompensation is payable,

or, one of the parties hasfiled a petition for benefits.”

That should be the end ofthe story. But it’s not. As isthe case all too often, thereare exceptions. In manyjurisdictions, the workers’compensation commissionsor courts have found variousways to extend thesestatutes of limitation.Pennsylvania, Maryland andDelaware are no exception.

Pennsylvania:Several court decisions inPennsylvania have, undercertain circumstances,extended the three-yearstatute of limitations. InZimmerman v. W.C.A.B.(1991), the court ruled that itwas the date of disability,not the date of injury, thatgoverns the commencementof the statute of limitation. Ifthe actions of the employer(or its workers’compensation insurer)deceive an injured workerinto thinking that a claim hasbeen accepted, the timelimitation will be extended.(Kocis v. W.C.A.B., 1999).

Payment by the employer ofthe injured worker’s wagesor medical bills in lieu ofworkers’ compensationbenefits could also extendthe time limit (Miller v.Springfield Township, 1964).Finally, in Martin v. W.C.A.B.(1990), the court ruled thatthe payment of out of statebenefits for the injuryextended the statute oflimitations in Pennsylvania.

Maryland:In Maryland, the statute oflimitations is two years inmost cases. However, claimsfor ionizing radiation can befiled within two years afterthe worker becomesdisabled or is made aware ofthe possibility of disability. Ifthe accident causes death,then the claim must be filedwithin 18 months from thedate of death. However, ifdependents are claimingdeath benefits from anaccidental injury, thedependents have sevenyears from the date of deathto file the claim.

WORKERS’ COMPENSATION AND STATUTES OF LIMITATION

Delaware:The statute of limitations in Delaware istwo years. However, once all partieshave accepted the work injury claim, anew stopwatch begins to tick with anew statute of limitations. The newstatute of limitations runs for five years.If the injured employee incurs at leastone medical bill related to the initialwork related injury, a new five-yearperiod begins. Each time a medical billrelated to the injury is paid, a new fiveyear period begins.

Several states have ruled that peoplewho are mentally incompetent or whoare minors are not bound by the state’sstatute of limitations. For theseemployees, the time period does beginto run until a guardian or legalrepresentative is appointed to protecttheir interests.

Although it might appear that statutesof limitation clearly prohibit the filing ofworkers’ compensation claims after acertain amount of time, these statuteshave been eroded by the courts. If theemployer misleads the claimant, orpays the injured worker’s bills ratherthan file a workers’ compensationclaim, the statute of limitations may beextended. The time period can also beextended for incompetent or underageworkers.

Y’all take care!

[ 9 ]

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ASSOCIATION AT WORK

Charting IA&B’s courseMembers steer the way

The world really doesrevolve around you. At IA&Banyway. IA&B is groundedin the philosophy that you— the member — knowbest and should chart thecourse of your association.

Primary Agent | December 2012

Since 2003, Member Agent Panels (MAPs) have been instrumental in obtaining member feedbackand, in turn, ensuring that IA&B evolves and remainsrelevant.

MAPs are regional groups of IA&B members — typicallyagency principals and producers — and associationleadership who come together to informally discuss issuesaffecting agents. Participants serve two-year terms and meetin 13 locations: nine in Pennsylvania, three in Maryland andone in Delaware.

A look backMAPs determine the association’s focus. Previous MAP inputsparked a variety of IA&B initiatives: from the creation ofmember resources on carrier insolvency, privacy andfiduciary duties, to legislative and regulatory advocacy onerrant loan lenders’ requests, workers’ compensationloopholes and overlooked agency termination rights.

And, during the most recent 2011-2012 MAP cycle,participants shared concerns about the increased treatmentof insurance as a commodity, the firming market in anunstable economy and consumers’ lack of insuranceeducation. This feedback helped IA&B recognize the need formembers to elevate their marketing and branding effortsand, in turn, showcase the benefits of working with anindependent agent. In response, IA&B’s new suite of onlinemember resources will debut next month.

A look aheadIA&B’s member-input mechanisms will get a facelift in 2013 as IA&B revamps the MAP format and introduces newopportunities to solicit feedback.

MAP participants will meet in person once, rather than twice,each year. These meetings will be supplemented withconference calls, polls and other communication throughoutthe two-year cycle, allowing IA&B more flexibility inaccumulating timely feedback. At the same time, MAPparticipants will maintain the benefit of in-personnetworking while minimizing their time out of the office.

In addition, IA&B will launch new platforms to ensurevarying member segments are understood. Groups ofdemographically similar (such as agency size) members willmeet to provide feedback on their specific experiences,needs and preferences.

So while IA&B’s methods may change, the goal remains thesame: to obtain member input and act upon it to thebetterment of membership.

S

[ 11 ]

____________________________

IA&B’s member-input

mechanisms will get a facelift in

2013 as IA&B revamps the MAP

format and introduces new

opportunities to solicit feedback.

____________________________

A sincere thank-yougoes out to the

2011-2012 MAPparticipants. Their

input was invaluablein determining

IA&B’s direction.

View participant list:www.iabgroup.com/map_participants_2012

Indicate interest in future participation:www.iabgroup.com/get_involved

Tools Y O U C A N U S E

[ 12 ]

REJECTION OF FLOOD COVERAGE FORM

If recent severe weather events (think: Hurricane Irene, Tropical Storm Lee and SuperstormSandy) have taught us anything, it’s the importance of flood coverage — understanding it,offering it and documenting it.

IA&B helps member agencies protect their E&O by offering a flood insurance notification and/orrejection of coverage form for use with customers. The form allows customers to check one or moreof three options: 1) understanding the unavailability of flood insurance, 2) rejecting buildingcoverage for flood protection and 3) rejecting contents coverage for flood protection.

Access the form online. Visit www.iabgroup.com, select Coverages from the left-hand menu bar, and then click Flood.

Shares flood riskregardless of location

Explains disasterassistance

Exposes lack of flood coverage instandard policies

Recommends floodinsurance

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

DO YOU SEEYOUR NAME?To become an IA&B Partner,

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at 800-998-9644,

717-795-9100 or visit us

online at www.iabgroup.com

to get started.

Listed below are those companies that strongly support the independent agency

system and Insurance Agents & Brokers.Thank you for your continued sponsorship.

PLATINUM LEVELACUITYBerkley Mid-Atlantic GroupDonegal Insurance GroupErie Insurance GroupHarleysville InsuranceHM Insurance GroupInsurance Agents & BrokersService Group Inc

MMG Insurance CompanyMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupOhio CasualtyPenn National InsuranceSelective Swiss ReThe Main Street America GroupUtica National Insurance Group

GOLD LEVELProgressive Westfield Insurance

SILVER LEVELAccess Insurance Company Allied InsuranceAmerican Mining Insurance CoCumberland Insurance GroupFrederick Mutual Insurance CoJuniata Mutual Insurance CoPSBA Insurance TrustThe Philadelphia Contributionship

BRONZE LEVELAegis Security Insurance Co

Agency Insurance Company

AmWINS Program Underwriters Inc

Auto-Owners Insurance Company

Briar Creek Mutual Insurance Company

Builders Insurance Group

Chubb Group of Insurance Companies

Countryway Insurance Company

Encompass Insurance

First General Services

Foremost Insurance Group

Goodville Mutual Casualty Company

Guard Insurance Group

Harford Mutual Insurance Co

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance House

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Valley Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn PRIME Municipal Insurance

Reamstown Mutual Insurance Company

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Motorists Insurance Group

The Mutual Service Office Inc

Travelers

Tuscarora Wayne Insurance Company

Zenith Insurance

Primary Agent December 2012

IA&B Financial Reports

IA&B maintains a strongbalance sheet with over$8 million in assets, $6 million in memberequity and no long-termdebt, despite a $418,000loss for the year.

IA&B supports theactivities that ourmembers value —effective advocacy,timely complianceresources and qualityeducation. We’re 1,400members strong acrossthree states. 7,000participants attend over200 IA&B classesannually. And 1,900members buy theiragency insurancecoverage through us.

This allegiance to IA&B,combined with ourcarrier partnerships,supports the financialstrength of theorganization.

The accountants’ reviewfor the fiscal year, whichended March 31, is onfile at IA&Bheadquarters. Thesestatements are asummary of that report.

ASSETSCombined IAB Intercompany Combined

IAB of PA IAB of MD DAIAB IAB-Associations Service Group Eliminations IAB

Cash & Cash Equivalents 1,993,547$ 327,171$ 338,784$ 2,659,502$ 560,440$ -$ 3,219,942$

Premium Fiduciary Cash 340,968 340,968

Accounts Receivable 93,275 11,253 15,602 120,130 339,688 (269,171) 190,647

Mutual Fund Investments 1,422,814 233,612 8,251 1,664,677 54,320 - 1,718,997

Prepaid Taxes - - - - 21,479 - 21,479

Prepaid Expenses 101,400 7,704 6,633 115,737 66,379 - 182,116

Total Current Assets 3,611,036 579,740 369,270 4,560,046 1,383,274 (269,171) 5,674,149

Property and Equipment, net - - - - 1,382,814 - 1,382,814

Cash whose use is limited, board and donor 389,569 20,306 7,726 417,601 417,601

Investment in Big I Reinsurance Co. 90,000 30,000 120,000 120,000

Investment in IAB Service Group 486,082 102,013 12,005 600,100 (600,100) -

Other Assets - 1,071,099 1,071,099

Total Other assets 965,651 122,319 49,731 1,137,701 1,071,099 (600,100) 1,608,700

Total Assets 4,576,687$ 702,059$ 419,001$ 5,697,747$ 3,837,187$ (869,271)$ 8,665,663$

LIABILITIES AND NET ASSETS

Combined IAB Intercompany Combined

IAB of PA IAB of MD DAIAB IAB-Associations Service Group Eliminations IAB

Total Current Liabilities 1,416,284 251,818 107,475 1,775,577 601,167 (269,171) 2,107,573

Long-term liabilities, retirement obligations - 1,054,411 - 1,054,411

Total Long Term Liabilities - - - - 1,054,411 - 1,054,411

Net assets, unrestricted:

Designated funds 392,457 21,256 7,788 421,501 421,501

Undesignated 2,767,946 428,985 303,738 3,500,669 2,648,237 (600,100) 5,548,806

Total Net Unrestricted Assets 3,160,403 450,241 311,526 3,922,170 2,648,237 (600,100) 5,970,307

Accumulated other comprehensive loss,

defined benefit pension plan, net of deferred tax (466,628) (466,628) Total Liabilities and Net assets 4,576,687$ 702,059$ 419,001$ 5,697,747$ 3,837,187$ (869,271)$ 8,665,663$

March 31, 2012

COMBINING STATEMENT OF FINANCIAL POSITION

INSURANCE AGENTS & BROKERS

COMBINING STATEMENT OF ACTIVITIES

YEAR ENDED MARCH 31, 2012

Combined IAB Intercompany Combined

IAB of PA IAB of MD DAIAB IAB-Associations Service Group Eliminations IAB

Revenues: Membership Dues 285,416 95,739 16,558 397,713$ (3,903) 393,810$ Professional Training 1,484,948 390,754 62,480 1,938,182$ 1,938,182$ Events & Member Products 118,829 42,345 81,461 242,635$ (4,000) Royalties & Commissions 584,475 102,412 34,975 721,862$ 2,071,114 - 2,792,976$ Other 36,636 (277) 5,114 41,473$ 1,549,788 (1,437,078) 154,183$ Total Revenues 2,510,304$ 630,973$ 200,588$ 3,341,865$ 3,620,902$ (1,444,981)$ 5,517,786$

Expenses: Membership 87,946 4,942 4,543 97,431 (714) 96,717 Commission 125,296 - 125,296 Professional Training 1,191,177 342,774 59,991 1,593,942 (12,424) 1,581,518 Events & Member Products 40,383 9,738 58,898 109,019 (9,996) Publications 90,081 90,081 Advocacy 32,596 53,562 6,835 92,993 (2,037) 90,956 Corporate & Management 1,222,706 242,253 64,774 1,529,733 3,061,469 (1,419,810) 3,171,392 Depreciation - 345,168 345,168 Taxes & Other - 335,608 - 335,608 Total Expenses 2,574,808$ 653,269$ 195,041$ 3,423,118$ 3,957,622$ (1,444,981)$ 5,935,759$

Net Operating Income

(Loss) (64,504)$ (22,296)$ 5,547$ (81,253)$ (336,720)$ -$ (417,973)$

Pension related change (55,901)$ (55,901)

Investment gain from 36,005$ 5,911$ 210$ 42,126 1,374$ 43,500 mutual funds

Change in Net Assets (28,499)$ (16,385)$ 5,757$ (39,127)$ (391,247)$ -$ (430,374)$

INSURANCE AGENTS & BROKERS

[ 14 ]

[ 15 ]

SPEAK UP! YOUR JOB

DEPENDS ON IT!

SUPPORT AGENTPAC— your voice IN THE

STATE CAPITOL.

AgentPAC is your state political action committee and the collectivevoice of independent agents in the state capitol. Issues that affectyour job are at stake, and backing legislators aligned with IA&B’sgovernment affairs agenda depends on your support. Watch forGrassroots Action Alerts prompting you to contact your legislators onspecific issues, and consider donating to AgentPAC at a level thatspeaks (loudly) to policymakers that support our cause.

Your voice in the state capitol.

LEARN MORE AND CONTRIBUTE

ONLINE AT IABGROUP.COM/AGENTPAC.

Statement of Ownership, Management and CirculationTitle of PublicationPrimary Agent

Mailing Addressof Known Officeof Publication5050 Ritter RoadMechanicsburg PA 17055

Complete Mailing Address of the Headquarters ofGeneral BusinessOffices of Publisher

Publication Number0274-9025

Number of IssuesPublished Annually12

EditorKaren RobisonIA&B Service Group Inc.5050 Ritter RoadMechanicsburg PA 17055

Date of Filing09/27/12

AnnualSubscription Price$15.00

Publisher

IA&B Service Group Inc.5050 Ritter RoadMechanicsburg PA 17055

Frequency of IssueMonthly

Owner

IA&B Service Group Inc.5050 Ritter RoadMechanicsburg PA 17055

The purpose, function and non-profit status of this organization and exempt status for federal income tax purposes has not change during the preceding 12 months.Extent and Natureof Circulation

A. Total Number of CopiesB. Paid Circulation

(1) Mailed Outside-Country Paid Subscriptions(2) Mailed In-Country Paid Subscriptions(3) Paid Distribution Outside the Mails(4) Paid Distribution by Other Classes of Mail

C. Total Paid DistributionD. Free or Nominal Rate Distribution

(1) Free or Nominal Rate Outside-Country Copies(2) Free or Nominal Rate In-Country Copies(3) Free or Nominal Rate Copies Mailed(4) Free or Nominal Rate Distribution Outside of Mail

E. Total Free or Nominal Rate DistributionF. Total DistributionG.. Copies Not DistributedH. TotalI. Percent Requested

Average No. of Copiesof Each Published IssueDuring Preceding 12 Months1,577

1,5050001,505

35000351,540371,57798%

Actual No. of Copiesof Single Issue forSeptember 20121,600

1,5250001,525

35000351,560401,60098%

MARKETING

Grow Your Agency &Improve Your Marketingby Tracking Key Metrics

A select few high-growthagencies consistentlyincrease their total personallines books by 10 to 24percent. Here, we pinpointwhat they have in common,including how they tracktheir marketing efforts tounderstand what is and isnot effective.

Primary Agent | December 2012

Independent agents should be winning, even dominating,in the personal lines marketplace. Is there any otherindustry where companies selling just one option have amajority of the market share over other companies in

that industry selling multiple options of the same product?Think of cars, ice cream or appliances. The company sellingmultiple brands consistently beats companies selling just oneoption. And yet, in the world of personal lines insurancewhere independent agencies have multiple insurance carriersto sell and choose from, independent agents have around 33percent of the personal lines market share (A.M. Best, 2011).It’s been this way, almost no movement, for five years. Manyagencies claim they’re growing a little, but it takes 1.7percent growth per year just to keep up with the populationincrease and stay flat with market share (U.S. CensusBureau, 2000 to 2010 population annual growth average).

High-growth agencies track metricsWhile most agencies change little in size of their personallines books, there are a select few high-growth agenciesconsistently increasing their total personal lines books by 10to 24 percent (Safeco NW Region top 25 personal lines high-growth agencies study, 2011). Comparing the commonalitiesof these agencies, it’s clear that they stand out in their salesmethods, training and support. One thing really was trulyunique — these agencies tracked their marketing efforts andknew what was effective and what was not.

For the purposes of this article, we’ll keep the discussion topersonal lines, but many of the tracking metrics that followwill work for commercial as well.

Marketing an independent agency is different from marketingan insurance company. Large insurance companies need todrive greater name recognition. But like all small businesses,insurance agencies need to be more efficient, more costeffective. Simply put, your marketing efforts should be theresult of knowing where your new business comes from, andhow much revenue you make from the new business, so youcan focus on how to drive in more and keep more.

Key metrics for growthTo gain back some of that market share, independent agentswill need to get more effective with their marketing. Let’stake a look at what the high-growth agencies specificallytrack to help achieve their high-growth numbers. Thesetracking methods can help you grow too.

These 25 growth agencies tracked 12 common items. Theyfall into three categories: new business, average revenue per

[ 17 ]

Your marketing efforts should

be the result of knowing

where your new business comes

from, and how much revenue

you make from the new business,

so you can focus on how to

drive in more and keep more.

I

[ 18 ]

MARKETING

client and retention. Here’s alook into each of the 12, alongwith a few key target examplesso you can see how youcompare. As you read throughthis, put a mental check mark byall that you’re currently trackingin your agency.

New businessItem 1: Total new business items

This is fairly easily trackedthrough agency managementsystems. Most can say how manynew policies were written. But itgets tougher from here.

Item 2: Where each new policycomes from

Here’s the big one. The mostimportant question each personmust ask on every call is, “Howdid you hear about us?” Everyoneknows it. Without this, everythingelse falls apart. You can tellwhere the business comes from,which advertising dollars aremost effective, where to focusyour efforts and more, just fromthis question. Once asked, thenthe tracking begins. The moredetailed you get, the more you’lllearn. Here are 10 basic trackingcategories:

Total new business items —

1. Number from cross sellefforts

2. Number from client referrals

3. Number from mortgage referrals

4. Number from real estate referrals

5. Number from walk-ins

6. Number from phone books

7. Number from print ads

8. Number from website

9. Number from Facebook

10. Number from other

You can also track on a muchdeeper level. You can break outreferral leads by each producer’sclients. You can track referrals byindividual mortgage companies,real estate agencies, titlecompanies and credit unions.This helps you understand whichcenters of influence are high-quantity referral sources and thuswhere to spend time enhancingrelationships. Or you can viewthe low-production sources, soyou can either change focus ordrop the lead source completely.

Item 3: Close ratio by category

Learning your close ratio bycategory can also be a big boost.It’s clear where you should spendyour time if you know, forexample, that your close ratiosfor mortgage companies andcertain captive agent referrals arenear 80 percent and othermethods are at 25 percent.

Some of these agents who trackclose ratios know that their clientreferrals are closing around 70 percent, while other agenciesknow they close client referralsat 35 percent. Digging further,those with the higher close ratiosare only considering true clientreferrals to be those where theperson referred is calling for aquote. Agencies with the lowerclose ratio are accepting anyname and phone number givenby a client as a referral, but thismeans that the prospect may ormay not be ready to look intoinsurance at the time you call,and the agency is spendingresources to continue to call andfollow up on each lead. Bothmethods can work, and severalagents say that they want toencourage the behavior of giving any referral. But if you are tracking everything, at leastyou’ll know which ones are most effective.

Item 4: Monthly close ratio by producer

This is an excellent training tool.If you know your agency closesreferrals at 55 percent, but thatyour three producers are closingreferrals at close ratios of 70percent, 50 percent and 35percent, then you’ll know whereyou should focus your salestraining internally. Sounds easy,but you can’t do this if you don’ttrack close ratios!

Continued on page 20

____________________________

Learning your close ratio by

category can be a big boost.

____________________________

Date Topic Location

December

3-6 CIC Personal Lines Institute Philadelphia, Pa.

4-6 P&C Licensing Study Course Allentown, Pa.

11-12 Executive Management Conference (rescheduled) Gettysburg, Pa.

11-13 P&C Licensing Study Course Mechanicsburg, Pa.

January

15 CISR Agency Operations course Mechanicsburg, Pa.

16 William T. Hold—Learning from Losses Reading, Pa.

17 William T. Hold—Learning from Losses Philadelphia, Pa.

23 CISR Personal Auto course Pittsburgh, Pa.

29 CISR Personal Auto course York, Pa.

30 CISR Personal Auto course Lehigh Valley, Pa.

31 CISR Personal Auto course Wilkes-Barre/Scranton, Pa.

Glance at EventsDECEMBER & JANUARY CALENDAR

[ 19 ]

Power Hour webinar to navigate flood changes

The next Power Hour webinar will cover the Biggert-Waters FloodInsurance Reform Act of 2012 and its impact on new and renewal businessbeginning Jan. 1, 2013. Members will learn the core changes, questionsthat remain unanswered and the law’s impact on agents.

Watch www.iabgroup.com/powerhour for more details and registration.

IA&B’s Power Hour is a free, member-only webinar held every othermonth on topics of immediate concern to agents. These live, hour-longwebinars are led by industry topic experts who can speak to memberconcerns and offer valuable solutions.

[ 20 ]

MARKETING

Average revenue per clientItem 5: Total premium

Another easy one to track. Thisneeds to be done for all personallines in the agency, not just bycarrier, so compile the totals andread on.

Item 6: Total policies

Also easy to track by totaling allof your policies by carrier intoone agency number.

Item 7: Total number of clients

This equates to total households.Pull the total number ofaddresses from your agencymanagement system to get this tally.

Item 8: Average number ofpolicies per client

Divide total policies into the totalnumber of clients to get thisnumber. This is one of the mosthelpful statistics you have to tellyou how your team is cross sellingyour book. A rough average ofnumber of policies per client touse is 1.6. If you’re averaging 1.4,you know that one of the firstthings you should do is a bigcross-sell effort throughout yourbook. Cross selling boosts bothnew business and retention, so ifyour average policies per clientare 1.6 or less, you should focusyour marketing efforts here first.

What is the high-end ceiling foraverage policies per client? Veryfew agencies average 3 or morepolicies per personal lines client.It’s challenging to move yourbook one tenth of a point in this

category. But if you track itmonthly and can see growth overthree months of 1.72, 1.73, 1.74,you know you’re making solidprogress on cross selling. If not,you may want to do some crossselling mailings with phone callfollow ups. Or it may show aneed for you to do more internalsales training on cross selling toprotect your clients properly.

Item 9: Average premium per policy

To find this amount, divide total premium by total number of policies.

Item 10: Average revenue per client

This is more challenging, but it’sthe jewel of tracking numbers forevery agency. To determine theaverage revenue per client,multiply the average premiumper policy by average policies per client. For example, if youraverage premium per policy is$1000, and your average policiesper client is 1.6, then youraverage premium per client is $1,600.

Now multiply your averagepremium per client by youraverage commission. Forexample, $1,600 averagepremium per client times youraverage commission of 13percent would equate to averagerevenue per client like this:$1,600 x .13 = $208 averageagency revenue per client.

What is a good target range foraverage revenue per client in

personal lines? Heavy non-standard agencies selling mostlymonoline auto will be in the $140to $180 range. In low catastropheareas, average preferred agencieswill see $190 to $240. In moreaffluent areas or places withincreased catastrophe exposure,the average revenue per client ishigher, averaging $280 to $325per client.

Once you know this number, and you know where yourbusiness comes from, you caneasily track your return on yourinvestment. Agents who knowthese numbers are shooting for a one-to-one first year returnon all of their marketing. Forexample, if you’re spending$1,000 per month on phone bookads, and your average revenueper client is $200, then you know you need to write five new clients each month to get aone-to-one return. If you’re not,then you may want to considershrinking your marketing in thatarea. If your newsletters aredriving a one-to-one first yearreturn or better based on theincreased referral traffic, thenyou know your marketing there is paying off.

RetentionItem 11: Retention for yourentire book each month

To determine your monthlyaverage retention, you’ll need to know:

w Total policies from 12months ago

Continued from page 18

[ 21 ]

w Total policies as of the last month end

w New business total policies written over the past 12 months

For example, let’s say 12 months ago you had 1,000policies. At the end of the 12 months ending lastmonth, you had 1,150 policies. Subtract the 250policies you wrote new over the 12 months from theending total of 1,150, and you kept 900 or 90 percentof the original 1,000. (Be sure you’re not countingrewrites as new!)

Is focusing on retention worth it? Here’s how to findout. Multiply your current annual revenue by yourcurrent retention rate. Do that over 10 years. Don’tadd in new business; just see what happens to yourcurrent book over 10 years. Then multiply the samestarting annual revenue by a retention number threepoints higher over 10 years, and calculate thedifference. Here’s what it looks like for a $1 millionrevenue agency that moves its retention from 88percent to 91 percent:

$1,000,000 rev. 88% 91% Difference

1st year income 880,000 910,000 30,000

2nd year income 774,400 828,100 53,700

3rd year income 681,472 753,571 72,099

4th year income 599,695 685,750 86,054

5th year income 527,732 624,032 96,300

6th year income 464,404 567,869 103,465

7th year income 408,676 516,761 108,085

8th year income 359,635 470,253 110,618

9th year income 316,478 472,930 111,451

10th year income 278,501 389,416 110,915

882,689

Item 12: Average length of time clients stay with you

Determine the number of years each client has beenwith you. Tracking in whole years as opposed tomonths is easier when you start. Add up all the yearsclients have been with you (this will be big). Thendivide that total and divide by the number of clientsyou have. This will give you the average length oftime clients stay with you. Excellent marketing tactics

should deliver a $1.00 return for every $1.00 spent or better in the first year, but you get a much stronger picture for how profitable your marketing is when you know how long you retain your clients on average.

Keep tracking each of these metrics, and you’ll enjoyseeing how your monthly report card can drivegrowth and stronger profitability.

___________________________________________________

Chuck Blondino is the Northwest Region Marketing Directorfor Safeco Insurance, Member of Liberty Mutual Group.Chuck wrote this article for ACT, and he can be reached atChuck.Blondino@Safeco.com. This article reflects the viewsof the author and is not an official statement by SafecoInsurance or by ACT.

Primary Agent | December 2012

H.R.H E A D Q U A R T E R S

[ 22 ]

JEFFREY W GERHARTCEBS, MBA

Jeffrey W. Gerhart, CEBS, MBA,

provided this article on behalf of

Mosteller & Associates, IA&B’s

contracted human resources

consulting firm.

IA&B members have access to

HR Solution©, a compilation of

products and services to help

them establish or improve their

human resources program.

Included are base-level

consultation services and

discounted professional services

from Mosteller & Associates.

Learn more at

www.iabgroup.com/hr.

Are job descriptions reallyworth the time? I’ve had thisquestion posed frequentlyover the years. Somemanagers have expressedtheir frustration about havingto write them, let alonehaving to share them withemployees (does anyone seewhere this is going?). Whilethere is no legal requirementthat a job description exist, it does provide a sound basis of operation on anumber of fronts.

Job descriptions (JDs) providea fundamental grounding ofwhat is expected by eachposition within yourorganization. They help clarifyjob expectations and establishthe skills, educationalbackground, related workexperience and physical andmental effort required tocarry out the job.

What can JDs provide?w A meaningful,

standardized job titlethat effectivelycommunicates statusand level ofresponsibility to internaland external constituents

w Information about careeradvancement foremployees

w Clarification foremployees on what’simportant about their

JOB DESCRIPTIONS: ARE THEY REALLY WORTH THE TIME??

Primary Agent | December 2012

job, and minimization ofdistractions

w Backbone of performancemanagement/appraisal systemsto evaluate the skill set ofemployees

w Help determining whethersomeone is able to do the jobwhen recruiting for a position orpromoting from within

w Assistance in establishing payranges and rates of pay usingappropriate, comparative wageand salary survey data

w Explanation for employees tounderstand the difference in paybased on the differences in jobs

w A defensible position fromclaims from unemploymentcompensation, state workers’compensation and, where

applicable, American’s withDisabilities Act as Amended(ADAAA), Family Medical LeaveAct (FMLA) or other allegationsof discrimination by protectedemployees

w Defined workflow practiceswithin a department, or how thejob holder interacts with externalcustomers

w Help determining whether aposition is eligible or exemptfrom overtime provisions underthe Fair Labor Standards Act

What are the drawbacks to JDs?w Poorly written, providing little

guidance to the employee

w Not updated to reflect currentduties or specifications

w Vague rather than specificlanguage to describe job duties

w Embellished language to “lift”the pay range of the position

w Too detailed, providing a task listrather than describing the typeof work to be conducted

w Using the JD as the performanceappraisal tool, missing thebehavioral or outcomes aspectsof a job, as well as notacknowledging individual goalsand objectives

[ 23 ]

Choose 5 of 9 to improve your 9 to 5.

II

ExR d

9 ’W

Register and learn more @ iabgroup.com or call (800) 998-9644

Job descriptionsprovide a sound basis

of operation.

H.R. HEADQUARTERS

[ 24 ]

What are some of the typical elements of a jobdescription?

w The header or job information:contains information such as jobtitle, immediate supervisor, FLSAstatus (exempt/non-exempt),department, job code, effectivedate and management approval

w The job summary or purpose: intwo or three brief sentences,provides a high level overview ofwhat the job entails

w Essential functions: regular,recurring duties and

responsibilities on a daily,weekly, annual or other periodicbasis that form the primary basisof the job

w Non-essential functions: thosecomponents of a job that maybe expected from employees,but if removed in order toprovide an accommodation donot change the nature of the job;helpful in applying ADAAA ordisability claims

w Physical and mental demands:includes range of motion;percent of time sitting, standingwalking; weight lifted; and level

and intensity of sustained mental activity

w Physical environment: level ofcomfort and distraction

w Educational and experiencebackground: minimum level of formal education and related work experience toperform the job

w Equipment: unique or specializedmachinery or office equipmentused inherent with the job

Other tips?Job descriptions should be kept brief,but informative. Sentence structureshould focus on one or two ideas.Use action verbs, keep it outcomes-focused (ex. accurately record andappropriately transfer information),and use non-technical words wherepossible. Job descriptions are aboutcommunicating clearly to youremployees your needs to effectivelyrun your business.

Check out HR Solution© for additionaltips in the Administrative Guide, andaccess a sample job descriptionformat in the Administrative Tools.

Learn more atwww.iabgroup.com/hr.

Get Real! Get MBG

Really.

REAL supportRERE

Real peopleR

REAL solutionsR

REAL responseR

REAL experienceRAt MBG, you get a real say. Our executive and marketing teams ask for your feedback regularly...formally and informally. Then they listen...and act.

MUTUAL BENEFIT GROUPHuntingdon, Pennsylvania

www.mutualbenefitgroup.com

Atlantic Specialty Lines Inc . . . . . . . . . . . . . . . . .7

Coastal Agents Alliance . . . . . . . . . . . . . . . . . . . .9

EMC Insurance Companies . . . . . . . . . . . . . . .IFC

Guard Insurance Group . . . . . . . . . . . . . . . . . .21

IA&B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13, 23

IA&B Partners Program . . . . . . . . . . . . . . . . . . .13

Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .28

Preferred Property Program . . . . . . . . . . . . . . . .9

Ad Index

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“And the beard of his chin was as white as the snow.”

Brady White’s beard is the real deal – a vital attribute in his roleas “Santa to the Stars.” Hence the reason he insured it withLloyds of London.

White’s Santa stint began as a last-ditch effort to pay his rent.The gig landed him in a local contest — which he won — for thebest Santa. From there, an agent informed White that Santaswith real beards earned more than those who faked it, so henixed the razor. Today he is the furry face of Santa at Macy’s department store in New York and visits the homes of PamelaAnderson, Kirstie Alley and other Hollywood A-listers everyChristmas Day.

“All sorts of things can happen to Santa’s beard,” shared White of why he took out an insurance policy. “Children can be a little rough, so it gets tugged and pulled a lot, and then there is the soot and the danger of being singed when I headdown the chimneys…. I wanted to know that it was protected.”

Source: lloyds.com

----------------------------------------------------------------———————-------The Last & Least column is dedicated to the industry’s oddities —from creative claims and kooky coverages, to (tasteful) jokes andstrange stories. Submit yours to iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

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