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...gainst the “growth industry” of employment-related litigation. Today, every b...ates to clients who implement best practices hiring policies.

...ership, such as a checklist for employment practices or pollution. This is a w...rketing. Once the agency is positioned for growth and able to take advantage of opportunities that always present themselves, long-range marketing planning extend the agency into the future.

... estimates of contingent product and environmental liability 2. Explain the basis for estimates and describe any uncertainties in annual and quarterly reports filed with the SEC TSCA - Toxic Substance Control Act of 1976 Requires educating employees for their reporting of exposure and, if employees are dissatisfied with employers procedures and conclusions, the employer is required to inform then that they can take the situation to the EPA (protection for whistle blowers) SARA Title III Superfund amendments and Reauthorization Act of 1986 Emergency Planning and Community Right-to-Know SARA 311, 312, 313 Community Right-to-Know ... are typically devoid of emergency non-business hour contacts and recommended pre-crises and post-loss procedures including suggested contingency plans. Insurance Underwriters Regularly issue policy contracts with virtually no instructions regarding an action plan to be implemented in the event the loss, which is insured, should occur. Accounting Practices Routinely complete major corporation annual audits and issue reports with statements concerning the adequacy of insurance but often neglect to address the lack of a Crisis Management Program or even minimal contingency planning. Risk Management Consultants Perform audits of existing risk management programs as well as provide on-going ... Plan Legal Considerations SEC - Securities and Exchange Commission SEC Staff Accounting Bulletin No. 92 (SAB 92), June 1993, requires all companies whose shares are traded on U.S. Stock Exchanges to: 1. Quantify and disclose best estimates of contingent product and environmental liability 2. Explain the basis for estimates and describe any uncertainties in annual and quarterly reports filed with the SEC TSCA - Toxic Substance Control Act of 1976 Requires educating employees for their reporting of exposure and, if employees are dissatisfied with employers procedures and conclusions, the ...

...sured, should occur. Accounting Practices Routinely complete major corporati...lace Post-crisis image enhancement for stakeholders Protection for Officers and Directors from neglige...

... . However, an association offers ways to approach a group. Consider sending a tip sheet' or an unsolicited newsletter or information item to the association's office for insertion in the association newsletter. Offer some free service to the association membership, such as a checklist for employment practices or pollution. This is a way to be very creative and contact a lot of people for very little cost. 5. Faxed solicitations, in my opinion, should be primarily a service to the prospect, such as an employment practices or pollution checklist ... with it, rather than shotgunning' business and going in many directions at the same time. The problem with this is that the agency never develops any expertise or opportunity to distinguish itself in a particular field. Now that the stage is set, let's take a practical look at the development of this specific class of business market for the distressed agency. The first step is to develop a hit list of eligible prospects. If the agency has a Sales Center, the responsibility for developing a list should rest with it. Yellow ... areas where it can realize some short-term success. Success breeds success, and small, short-term victories can be built upon. First, let's start with markets. Identify a class of business for which you have a market or two with competitive pricing and enhanced Property or Liability coverage forms. This tells you the carrier wants that class of business. Build your initial marketing around that area. For example, let's assume the agency has a good program and market for family-style and fast-food restaurants and is located in a growth area. If ...

... reason should be treated separately in the transaction, perhaps by paying a certain percentage of renewed business only and not guaranteeing anything up front. Are any of the major accounts currently handled by a producer who is not an owner? If so, is there an enforceable employment agreement that can be assigned? Examine the relationships with any accounts producing over 1% of the total revenues. Those that appear to be questionable for any reason should be treated separately in the transaction, perhaps by paying a certain percentage of renewed business only and ... the next three years? The amount of interest income on premium float should be more than 3% of revenues unless the agency has less than 50% of its premiums on the agency bill. If income from investments has been at or above that percentage, collection practices may have been lax in the past. This could result in above-average attrition when tighter controls are imposed. What percentage of revenues was paid to outside brokers or producers who own their books of business? What are the arrangements and do you want the relationships to ... is important to review the agency balance sheet even if the transaction will not include the purchase or merger of corporate stock since the balance sheet can provide indications about how well the agency was run in the past. Compute the current ratio (current assets divided by current liabilities) . In an agency with proper liquidity, this ratio should be slightly more than 1:1 . Use the receivable ratio (accounts receivable divided by accounts payable including pre-billed items) to help assess the collection practices. If this ratio is more than 55 ...

... :51 PM by CompleteMarkets Editor This content has not been rated yet. &# 160 AGENCY/BROKER PROFILING The agency profile tells the agency's story and presents the agency's expertise to prospects, clients, and companies. It's like a resume. If you're looking for employment, you would prepare a resume that highlights your work experience, education, and other activities in a way that makes you look good to the prospective employer. Likewise, the profile should impress the prospect with your competence- your ability to anticipate and solve their ... . Item No. 19: Does the agency have any formal, written arrangements for perpetuation? To some carriers, this question is more important than any of the others. Today's carriers talk about a long-range relationship that will be profitable to both parties. (In practice, however, they may do something else.) Any principal who is aging or has health problems poses a risk to a carrier. If something happens, is the agency in a position to perpetuate itself? Carriers want to know that a relationship will continue ... that they won't be forced into any decisions because of distressed circumstances. Item No. 20: Are there any ownership interests in the agency other than active principals? Carriers want to know who is in control. They want to know who is responsible if the worst happens. The question also provides you with an opportunity to highlight an association that may be able to produce a very good, controlled source of ongoing business. Items No. 21, 22, and 23. These three questions are designed to show some of the ...

... If so, is there an enforceable employment agreement that can be assigned? Ex...to you. Remember, an agency should pay for itself out of its own cash flow in ...