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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 ...

Safety With Video Display Terminals
INFORMATION DATE 19920217 DESCR...if necessary. Task lighting enables operators to adjust lighting to their indi...

... , you are asking for trouble. For a number of years we have been urging agents to formalize and standardize job descriptions, performance evaluations, and salary administration. First of all, it's one of the best ways to improve overall agency productivity and profitability. But second, and perhaps more important today, this system provides the management discipline that will help you avoid legal action. Lawsuits for wrongful termination, discrimination, defamation, intentional infliction of emotional distress, and breach of contract often arise from the real or perceived unequal treatment of employees in the areas of compensation, promotion or discharge. If you have written rules in place, and follow those rules, you stand a much better chance of averting unpleasant situations. Employee handbooks are the best place to outline agency policies and procedures regarding employment ... off, there is no assurance that the judge or jury will view your innocence as you do!!! So it is very important to make a complete review of the agency's personnel policies and treatment of employee issues. What are you doing or not doing that could get you into a legal quagmire? Most employee lawsuits start with poorly planned and executed employee relations decisions. If you have been operating with a seat of the pants' management style, i.e., making snap decisions about an employee's performance and acting upon those impulses, you are asking for trouble. For a number of years we have been urging agents to formalize and standardize job descriptions, performance evaluations, and salary administration. First of all, it's one of the best ways to improve overall agency productivity and profitability. ...

... 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 ...

... through Friday. Each CSR then takes a 20% salary cut in return for a four-day work week. THIRD KEY: PRODUCER/ACCOUNT EXECUTIVE COMPENSATION Following excess staff costs as a major expenditure are the profits lost by overpaying producers. Agencies should use the following maximum commission-payment schedules for producers: Producers handling a book of business of less than $120,000 after three years' employment should be terminated as a drain on the agency's resources and morale. Likewise, a producer handling a total book of less than $175,000 after five years should be considered marginal and terminated. FOURTH KEY: COMMIT TO STAFF UPGRADES Agency management must commit to constantly upgrading the quality of the agency staff: 1. Always hire a higher quality (not necessarily more experienced) individual to replace a departing ... submissions to each carrier for success 16. when seeking a new appointment, agency offers a seasoned book of business SIXTH KEY: BUSINESS DEVELOPMENT PLANNING All business development and growth planning must be activity-based. Premium and commission goals are nothing more than hopes and dreams. SEVENTH KEY: FINANCIAL BUDGETING All agency managers need to remember a basic management tenet: There is no such thing as financial problems, only operating problems. Financial statements are nothing more than a measurement of operating performance. If profits are low and/or cash is short, the agency's financial trouble is the effect, not the cause. The cause or problem lies somewhere in operations. This is why annual and monthly revenue and expense budgets are critical to success and why the agency's financial performance should be compared closely to industry standards. ...

... quot; refer to [cluster name]; a [definition] corporation with its principal office located at: [address] and doing business under the name [cluster name] . &# 160 SECTION 2- LENGTH OF AGREEMENT &# 160 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." &# 160 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 ... utilize promotional materials developed for me by the cluster. &# 160 I agree to devote time to the cluster in management and training activity as needed. &# 160 Agency Principal Cluster Representative &# 160 CLUSTER MEMBER AGREEMENT &# 160 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. &# 160 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. &# 160 CLUSTER MEMBER AGREEMENT (SAMPLE) &# 160 [member name and mailing address] &# 160 SECTION 1- WHAT THIS AGREEMENT COVERS; NAME UNDER WHICH WE OPERATE, AND LOCATION &# 160 ...

... 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 ...

... claims, accounting, underwriting, auditing, and engineering problems. 8. Supervise licensing and activities related thereto. 9. Coordinate production bulletins to keep producers informed. 10. Supervise the Life/Employee Benefits Department. 11. Promote intercommunication among departments. 12. Participate in seminars and classes for skill and knowledge development. 13. Perform other duties as assigned. AUTHORITY: 1. Appoint and terminate producers. 2. Train producers. 3. Hire, promote, and fire departmental employees within agency standards. 4. Recommend departmental increases within agency standards and guidelines. 5. Approve departmental expense accounts. 6. Enforce agency credit terms. 7. Coordinate interdepartmental contacts. 8. Coordinate and control all bulletins to producers. JOBS CHARTER MEASUREMENT STANDARDS: 1. Produce at least the forecast ... Administrative Support Clerk II G. Administrative Support Clerk I H. Sr. Policy Typist/Data Input I. Policy Typist/Data Input Clerk JOB DESCRIPTIONS\LIFE A. Life/Employee Benefits Manager B. Life/Employee Benefits Coordinator &# 160 POSITION CHARTER Position Title: AGENCY MANAGER Objective: Under the direction of the President/Owner, to plan, lead, organize, and control operations of the agency so as to ensure the development and maintenance of a viable and profitable organization. Salary Grade: Ungraded ACTION STEPS: 1. Develop and maintain sufficient production levels for various lines of business, including Commercial, Personal, Bonds, Employee Benefits, and Life. 2. Develop standards, procedures, and guidelines for effective processing of all lines of business. 3. Establish procedures ...

... 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 ...