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... ANALYSIS CRISIS MANAGEMENT PLAN STRATEGY REFINEMENT \/ /\ CRISIS RECOVERY Subsequent Operations Restoration Tasks /\ The following is a summary overview of the significant activities anticipated during the four specific time periods: 7.5 Prior to Crisis Timing The most important time segment concerning Crisis Management Plan timing is the period identified as "prior to crisis" . This involves an on-going time period without any definable termination. Within this major time segment lie Crisis Management Plan formulation, implementation and on-going maintenance. At the time of a crisis, the ultimate success of the Crisis Management Plan is dependent upon the effectiveness of the strategic planning which has been completed during this time period. 7.6 During Crisis Timing This time segment is relatively brief and addresses only action necessary during the actual crisis occurrence. This involves immediate ... funded under the risk management program to a major unfunded or underfunded catastrophe that could threaten the ultimate financial survival of the organization. (Refer to subsection 4.4) The crisis exposure assessment should remain broad in scope and not become inhibited by the traditionally narrow considerations of only those perils addressed by standard commercial insurance policies. 7.3 Crisis Management Plan Components The crisis management plan normally involves structured formulation, implementation and operating strategy as well as on-going operating maintenance, thus typically involving the following five sequential phases: Phase I Crisis Criteria Development Phase II Assessment Analysis Phase III Crisis Management Plan formulation Phase IV Crisis Management Plan implementation Phase V Crisis Management Plan Maintenance The above five sequential steps are summarized in detail in the organized plan Exhibit 7.1. Frequently, a comprehensive Crisis Management Plan is formulated and implemented in a developing ...

... the customs under the American Agency System that the agency is the owner of records and expirations is of no avail to the agency. Hardin County Farm Bureau v. Farm Bureau Mutual Ins. Co. 341 S.W. 2d 62 (KY. 1960) A final case shows that agents in a contractual relationship who attempt to compete or interfere with the company and refuse to return records are entitled to no termination benefits: Where agency contract provided for payment of termination benefits provided that the agent returned records and files, and agreed in writing not to service policyholders, or compete or interfere with insurer's business, agent who admittedly did not live up to such commitments was not entitled to termination benefits. State Farm Mutual Auto Ins. Co. v. Anderson, 70 NJ Super 520 176 A. 2d 23 ... to capable individuals. You know who has the delegated responsibility, and whether the owner relies on their judgment in making a renewal decision. It's important to know the dynamics of authority within the insured's firm and how you should relate to lines of authority, when and if they change. Taking this one step further, who in the firm can provide the information you need to keep abreast of the operations of the company? Your rapport with the comptroller, fleet manager, human resources director, operations manager, marketing manager, and others is essential. We've all heard about the need to learn who's who from top to bottom in our insureds company structure. The only change we'd make is that we need to know who is who from bottom to top. After all, the top is pretty ...

... and agency automation system. List of stockholders or partners by name and percent of all types of ownership. History of changes in ownership for which outstanding notes or agreements still exist. Review of buy/sell agreement or other internal perpetuation documents. Review of deferred compensation, non-compete, or other vesting agreements. Current ownership of expirations, brokerage arrangements, etc., including details of settlement upon possible termination of employment/agreement or sale of agency. Review of employment agreements. Who has them and what do they say? Average number of employees and revenues per employee and compensation per employee. Compare to industry averages. Biographies and impressions of key people (not necessarily limited to owners and/or producers) . List of commissions handled by each producer and CSR (include "house accounts, ... rarely solve the problems — it will just make them bigger. Although there are exceptions to every rule, a financially weak agency should not be in an acquisition mode. Even the best agency purchase will generally cost more money than it will make over the short term. Unless there's a cushion to fall back on, the demands of the acquisition on total agency cash flow can literally drag the whole operation under. To be a healthy buyer, your agency should have a current ratio of at least 1:1 , a trust ratio of more than 100%, a receivable/payable ratio of less than 75%, and a tangible net worth that's in the black. If you've recently made several acquisitions or are in the process of buying out a major owner, the existing demands of ...

... to comply with instructions on how or when to work. Can't be trained or supervised by anyone in the agency. The agency can't set annual production goals or take any action if the contractor doesn't follow agency procedures. Must be in a position to realize a profit or suffer a loss as a result of the services provided. Can't be discharged as long as the contractual obligation is fulfilled. Can't terminate the relationship with the agency at will. Your agency has about a 10% chance of facing an IRS audit. If you're one of the unlucky few to get audited, you'll probably be dealing with the implications of the Federal Insurance Contributions Act, the Federal Unemployment Tax Act, income tax withholding, tax penalties, and Workers Compensation. EMPLOYMENT CONTRACTS and NON-PIRACY PROTECTION A departing producer or customer ... x No Thanks Loading.. Defensive Agency Management 4/30/2013 by CompleteMarkets Editor , Carol Hammes This content has not been rated yet. DEFENSIVE AGENCY MANAGEMENT by Carol Hammes Even in the best of times, managing an insurance agency isn't easy. The past decade has brought about rapid changes in technology, created more sales opportunities, and presented new operational challenges. In this article, we'll look at how new trends are affecting management, relationships, distinctions between exempt and nonexempt employees, agency trust requirements, and procedures. Opportunities to join mergers or networks pop up almost weekly, further confusing already murky business plans. As if direct writing companies, banks, the Internet and mega-brokers aren't enough, accountants are getting commissions for Life insurance sales and they may begin selling other lines. The ...

... the need for any change. Always agree with the intermediary representing your company on what is expected and what can be realistically delivered. Insist on follow-through. Whenever possible, arrange renewals together, or at least group coverage into property/asset protection and liability/casualty. Use these combinations, or your whole portfolio, to maximize leverage in your favor. Always consider the value of long-term relationships before terminating a carrier. Consider the carrier's attitude to claims in the past and whether you were treated fairly. If you had favorable experiences, it may be worth paying a bit more to maintain the relationship. Always remember that the provision of a risk management program should be viewed as a cooperative venture between the in-house buyer-counseled when needed by a true risk management professional, the client's chosen intermediary-and the insurer ... management review is complete. A common misconception is that the purchase of insurance achieves the goals of risk management. But insurance does not affect risk; it only affects the effects that arise from the risk. A useful question to ask is this: If I did not have any insurance at all, what would I do differently? If this question is applied systematically to every aspect of a corporation's operations, the initial evaluation will serve a very useful purpose: You will know which risks can be endured and which risks will shut down your corporation. If we say that risks you can easily assume are rated 0 and those you cannot assume are a 10 (and must therefore be insured), then those that you have rated 1 through 9 need to be carefully considered for their impact. ...

... mutually appreciative. Avoiding disagreements about commission or account ownership, commission splits, and other aspects of the book of business is important. LIFE CARRIERS The other claimants to your book of Life business could be the companies you and your Life associates selected to write the business. Some companies have written their producer contracts in ways that give them free access to the agency's insureds in the event of the agent's termination. Each producer's contract should be carefully studied for termination clauses and the consequences of termination. Many P/C agencies have Life business written through outside agents. Sometimes such agents are contracted with a general agent (GA), not with a Life company, and termination of the outside GA (or of the agent) could wrest the client from your agency. In any case, if ... that things will go wrong. And just as owning an insurance policy is worthwhile even if things never go wrong, so is a contract worthwhile even if it's never put to a test. At the very least, get a letter of agreement between the P/C and Life/benefits parties, with a definite date set to formalize the agreement with a contract. If your Life/benefits operation is a separate corporation, then that corporation should have such contracts with its Life producer(s ) . Contracts are necessary regardless of how close, trusting, or loving a relationship exists between the P/C and Life principals. That includes close family members. Consider, for example, that when a party dies, the executor and/or lawyer for the deceased is obliged to pursue ...

... current owners must agree to the events that will trigger the plan, have this agreement committed to written form by competent attorneys, and have it signed by all parties (including spouses) . Often there will be two documents that will make up the plan. One is the Buy/Sell Agreement governing the disposition of the stock or partnership interest in the event of death, disability, retirement, termination, and divorce. This contract defines each of the events (make sure that the definitions coincide with definitions in any funding vehicles) and specifies price and terms for selling the ownership interest. It gives either the existing owners or the corporation the right of first refusal to purchase the stock and restricts owners from selling to outsiders. If the transfer of stock is to be disproportionate between owners or ... . Given a ready market for insurance agencies, spending a lot of time agonizing over perpetuation issues is simply not necessary. Right???? The problem with this argument is that the number of buyers willing to purchase the agency at a good price is dwindling, particularly if the agency has been successful and has grown to such a size that it cannot easily be folded into an existing agency operation. Ten or fifteen years ago, an agency with $1 ,000,000 in revenues was a prime acquisition target for most of the major public and regional brokers. Even five years ago, there were a number of large buyers actively pursuing business combinations in major cities. Now these same buyers have become sellers in a number of communities, divesting themselves of offices that they purchased in ...

... and "Our" refer to [cluster name]; a [definition] corporation with its principal office located at: [address] and doing business under the name [cluster name] . SECTION 2- LENGTH OF AGREEMENT 2.1 Initial term-This agreement will become effective on the date indicated at the end of this agreement. It will continue for a period of three years, unless terminated sooner according to the terms described in Section 6, "Conditions of Termination." 2.2 Extension-If you have performed your contractual obligations and are not in default under this agreement, this agreement will be extended for successive three-year periods. If you want an extension, you may be required at that time to execute the then-current form of agreement being used. If you do not ... all leads generated for me by the cluster. I agree to utilize promotional materials developed for me by the cluster. I agree to devote time to the cluster in management and training activity as needed. Agency Principal Cluster Representative CLUSTER MEMBER AGREEMENT This is an example of the kind of contract participating cluster agencies will sign. You should have your attorney draw up a similar contract more adequately reflecting your cluster's operations. Remember, you must have an attorney draw up the contract. The following is only a guideline, and is not to be used as the actual contract. CLUSTER MEMBER AGREEMENT (SAMPLE) [member name and mailing address] SECTION 1- WHAT THIS AGREEMENT COVERS; NAME UNDER WHICH WE OPERATE, AND LOCATION 1.1 What this agreement covers-Under this agreement, [cluster name] agrees to provide ...

...eral industry, shipyards, marine terminals, and longshoring activities regardl...

... business use of electronic communications (notably the Internet, voice mail, electronic mail, and fax) . Electronic communications systems owned by the Company and all messages generated on or handled by these electronic communications systems, including back-up copies, are considered the property of the Company. Any attempt to violate, circumvent, and/or ignore these policies could result in corrective action, up to and including termination. Authorized Usage The Company's electronic communications systems must be used solely to facilitate the business of the Company. Users are forbidden from using the Company's electronic communications systems for private business activities, personal, or amusement/entertainment purposes. Employees are reminded that the use of corporate resources, including electronic communications, should never create either the appearance or the reality of inappropriate use. Inappropriate use might result ... communications systems, encryption or similar technologies to protect the data must be employed. Users should have no expectations of privacy using Company equipment. Unlike written communications, e-mail does not usually have an envelope. Unless the e-mail message is encrypted, you're sending a postcard, not a letter. Regular Message Monitoring Contents of electronic communications might be monitored and the usage of electronic communications systems will be monitored to support operational, maintenance, auditing, security, and investigative activities. The Company reserves the right to disclose any electronic messages to law enforcement officials without prior notice to any employees who might have sent or received such messages. Users should structure their electronic communications recognizing the fact that the Company will, from time to time, examine the content of electronic communications. Because all messages are company records the Company ...