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...nsured corporations, self-insured public entities or pools, captive insurers, ...subscription will continue; do nothing and it will end. It's that simple. We h...

...ibility. It is also emerging as a public relations issue for agents. Compariso...olvencies will continue to be of major and immediate concern for agents during...

... important that: the function is well managed proper follow-up occurs to guarantee client satisfaction personnel keep track of how the carriers are responding to claims to ensure proper and timely service Poor claims-handling by the firm's personnel or an insurance company adjuster can cost the firm the account. Public relations can slide when a client who suffers a loss isn't covered or when the claim is poorly handled. These thing can also cost a firm future clients and irreparable damage to its name and reputation. Even though the insurance company may be at fault, and ... if the producer finally gets the claim properly handled and reimbursed, nine in 10 instances will cost the firm the account due to the client's suffering stress and strain. As consultants, we don't hold a strong preference as to whether the firm keeps a separate claims department or makes CSRs responsible for claims. It's up to management to decide whether clients are better served by having the person they know handle the claim (the producer or CSR) or by having a competent claims person take care of it. We recommend a separate claims ... in the following situations: 1. When the firm doesn't have its file information on the computer 2. When the firm has a large concentration in targeted classes of business 3. If there's a high concentration in certain lines of business and special expertise is needed 4. When the firm routinely uses draft authority and there's a need for tight controls for issuing claims checks The key concerns we have for proper management of the claims comes from our work in analyzing hundreds of firms over the years. Here are some claims tips: Keep ...

...er can cost the firm the account. Public relations can slide when a client who suffers... management, automation, clustering, Errors and Omissions, evaluations, mergers and producer compensation. You may E-ma...

...can cost your agency the account. Public relations can slide when a client who suffers...t (707) 935-6565 . e-mail catherine@oakandassociates.com, or visit www.oakandassociates.com.

...nal private networks, traditional public networks, the Internet, and the vario...nally appeared in Rough Notes magazine and is reproduced by permission.

... and deferral of tax by the acquired shareholder. If you plan to use a reorganization, don't plan on being able to amortize the expirations. You can still amortize a covenant not to compete. The sale of the new stock received by the seller' to a public company may be restricted for a period of time under the securities laws. Frequently two or more years must elapse before the seller can cash out the stock he receives on a reorganization. The acquirer suffers dilution of the ownership interest of its shareholders. This is ... get both deductions and capital gains treatment. Sales of expirations and good will get the same treatment as capital gains, and are amortizable over 15 years in many cases. Sales can't be amortized, however, for self created intangibles', or intangibles sold to a related person' or the agent and the acquirer are engaged in business under common control' (IRC Section 197(c )( 2 ), (f )( 9 ) . This means that it will be tricky to use amortization of expirations and good will in ... aware of comparable sales. There can be a combined approach, under which the parties agree to attempt to determine the price themselves, and go to an appraiser if they cannot agree. A seller should sell the sizzle as well as the steak. An insurance specialty consultant can suggest ways to make the agency more saleable. The specialist may know of a buyer who may be interested. Structuring the taxes in a way favorable to the buyer may also enhance the agency's value. Steps to reduce litigation exposure through proper anti piracy agreements ...

...ock received by the 'seller' to a public company may be restricted for a perio...t of a decedent, suffering both estate and income tax (with

... members will probably manage it directly by majority vote. There may be some risk in that format, since individual members may be able to bind the LLC contractually on third-party transactions despite agreement provisions between them prohibiting this. Also, your LLC agreement is usually not a public document, so no one has notice of any limitations on powers of the members. If your initial certificate filed with the state specifies managers, ' then third parties have received notice on public record of your manager-controlled format. Generally there will be no liability solely ... in a sale of assets out of the corporation. Your combined tax can then easily exceed 50% (in some states, it can be over 70%)- but careful tax planning can often reduce some of this very high exposure. The double-tax problem is relatively new, having started in 1989 as a result of the 1986 tax act. Unfortunately, the majority of agencies today are C corporations. With Subchapter S corporations, on the other hand, all income flows through onto the owners' personal tax returns; that ... the seller about the extraordinary tax consequences of an asset sale format, or (2 ) you get zero write-off if you do a stock purchase. The potential for tax savings in this area are immense; so is the potential for catastrophic errors. Be sure to consult appropriate professional advisors. Is your agency merging with another agency? The merged agency can be a newly-created LLC, with each of the merging agencies (corporations, sole proprietorships, other LLCs, and so on) as the members. If the merger doesn't work ...

...s that deal in 'services' for the public. This method does just that. Since agencies are not ordinarily publicly traded, there is no price available...ncy's underwriting authority Errors & omissions history and coverage History of prior a...