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... programs are created (for HVAC Wholesalers, as an example) through the carefu...aurant supply operations, and meat wholesalers. We prefer the mother-child me...

... run, this should be beneficial because it eliminates the "requirement" of sending out cancellation notices. The new form reinforces the need for agents using certs to follow these "best practices:" Best Practices to consider: Have a written procedure for the handling/issuance of certs. This should address all pertinent issues, including how to handle requests for adding additional insureds when the policy doesn't provide this coverage. Consider identifying a specific number of staff who can handle this responsibility, and make sure they receive the necessary training. Audit completed certificates periodically to ensure that they are done in accordance with established agency procedures. If you're issuing certificates on behalf of E&S carriers with which you have placed business, understand that unless you have an E&S license and are acting as the wholesaler, you are technically not the agent. Get approval from your E&S wholesaler to issue these. Many agents issue a "draft" and send it to the wholesaler for approval. This is acceptable. Issue the certificate from your system. This will ensure that the producer, named insured(s ), carrier, policy number(s ), policy dates, etc., are correct. If you still produce certificates manually, as your software is updated to the new ACORD 25 form, take advantage of technology – it's a great time saver that will help reduce (but not eliminate) the potential for mistakes. Use the Additional Insured column as much as possible to help tie additional insureds into the right coverage. Don't issue a certificate with additional coverages notes ...

... companies, the business plan had to be comprehensive and make companies feel confident about doing business with me, ' she explains. I included demographics of the area where the agency would be located, description of the competition, marketing plans, and expected growth, among other things. A friend of Amy's suggested that she call the Professional Insurance Agents of New York (PIANY) to obtain E&O coverage for her new business. The very next day, I attended my first PIA meeting — a regional conference — bringing copies of my business plan to hand out, ' she recalls. What a jump-start that was for me. I met so many agents and company people that day. I was so green, ' Amy laughs. I met a company rep who asked if I was a wholesaler or retailer. I said, What's a wholesaler and what's a retailer? ' I never feel stupid asking questions, though; I keep asking until I understand. She says that most people — especially company underwriters — have been very helpful in providing guidance and information in these early years of her agency's operation. At this first PIANY event, Amy met the president of Associated Mutual, a regional company, who appointed her that day. I didn't quite know what to do. I asked him, Do I come to you? ' and he patiently answered, No, we come to you.' With this appointment under her belt, Amy was able to get appointments from other companies more easily. I'm so grateful that Associated Mutual gave me a chance, and it was a chance, ...

...ort for registered reps through wholesalers. So mutual fund availability/suppo... Unlike mutual funds which provide wholesalers to support the sales activities...

... dealing with the E&S market, take these E&O precautions. Before you go to the Surplus Lines market, be sure to educate your staff on the uniqueness of this marketplace: Many E&SL carriers require their own apps. Don't get caught in a situation where you need to bind coverage and the carrier wont do so until they have their app. You'll need to complete affidavits to show that the standard market won't write your risk Since Surplus Lines is free of rate and form in most states, the forms might not be familiar. Make it a standard practice in your agency to review new policies and to compare them with the old forms. If you can't get comparable coverage, notify the client. Be sure to request a copy of the policy form from the wholesaler. Check the financial rating of the Surplus Lines carrier. If you're not sure, ask the wholesaler. Remember: there's no Guaranty Fund with Surplus Lines carriers. Exercise extreme caution! Here's an E&O claim that illustrates these issues: The claim against the agency was for failure to provide a client tavern owner with adequate Liability coverage. There was a fatal shooting at the tavern when a 14-year-old girl attempted an armed robbery. An intoxicated patron tried to disarm the girl, but was killed in the struggle. The patron's estate sued the tavern for failure to maintain safe premises. The agent submitted the lawsuit to the General Liability carrier, who denied the claim on the basis of an Assault and Battery exclusion. The agent gave notice to the Liquor Liability carrier, who also denied ...

...   L. 5 -- Auto Parts Wholesalers   M. 5 -- Air Conditioning & Refrigerator Wholesalers   N. 10 -- Fast Food Busin...

... company must change from selling insurance to active competition. Your mystical mission statement sounds great in print, but probably means nothing to your customer or your sales force. You must replace this antique with a reality statement such as, Our goal is to replace XYZ Agency as the No. 2 company in our marketing territory! ' Without this extremely narrow focus, you don't stand a chance of motivating your sales force to action. This change of view will probably engender a fight with your staff, but unless you make a decision to do something concrete-and let your sales force know the goal-your efforts are misguided. Find your customer. Do you really know who your customer is? Are you assuming that Jane and Jim Doe are the buyers and ignoring the fact that your real buyers may be the wholesale, retail, or franchise establishments? Without a realistic analysis, your sales force is out there beating the bushes for squirrels when the real prey should be lion. Target your customer. People are going to buy insurance. The question is: Who's going to sell the insurance contracts? ' Find and target prospects that fit the appetites of the companies you represent. Then make it attractive and easy for them to buy from you. Survey your existing customers, determine your perceived strengths and weaknesses-and then accentuate the positive and eliminate the negative. Develop a sales force that concentrates on the account selling, not the onesies and twosies. Supporting your sales force. Begin the change by giving your sales force a real target. Try something such as, Our goal is to become the highest producing ...

... happens if they don't want or intend to work for the new agency owner? A sale can disappear quickly if a buyer finds that not only will they lose employees, but that these people will enjoy free rein to compete against the new owners on the very book of business that's being purchased. If you're buying a book of business or an agency, make sure that the Employment Agreements, or at least the Non-Compete and Non-Piracy Clauses, are transferable. If there's any question about their transferability, make the acquisition or merger contingent on getting signed Employment Agreements with specific employees. An Employment Agreement protects both the employee (who is given specific duties and rights) and the agency. If an agency is being purchased or sold in an asset sale, this protection can become critical — we've seen wholesale departures that effectively ruined a transaction. If the sale involves stock, a strong Employment Agreement can provide a period of transition and stabilization that protects both buyer and seller. Either way, the new owner would be wise to re-negotiate a new Employment Agreement with pre-existing employees, using a legitimate form of consideration (thus avoiding any whiff of coercion) . The goal of the CompleteMarkets editor is to bring valuable content to the CompleteMarkets members. Providing content to insurance professionals to enhance their sales process, increase revenue streams, understand their clients and provide value to their agency. Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole ...

... In the digital frontier of this economy, the players, dynamics, rules, and requirements for survival and success are constantly changing. Middleman functions between producers and consumers are being eliminated through digital networks. Intermediaries need to move up the food chain to create new value, or they face being disintermediated. Disintermediation: Cutting out the middleman. In the insurance world, this means eliminating the agent. This new way of thinking demands that the broker have instant access to extensive information. Coupled with strong human relation skills, solid knowledge of key variables, and powerful tools to package deal scenarios, the broker can move up the value chain to forge trusted partner relationships. Rather than being disintermediated, the broker can use the new technology to create new value. If your company uses midst agents, wholesalers, distributors, retailers, brokers, or middle managers, it's time to do some serious strategizing (or career planning if you are one of them) . All these roles in the past have been in the business of executing transactions, brokering, or in general boosting the faint signals that passed for communications in a predigital economy. Disintermediation is changing the signal pattern. In ACORD: In the digital economy, which industries do you think technology will affect the most? Is insurance one of them, and why? Tapscott: Every industry is being affected profoundly, insurance and, more broadly, financial services are great examples. This is a time of both opportunity and peril. I'm convinced that insurance companies that don't reinvent themselves around the digital media will be gone in a decade. ...

... happens if they don't want or intend to work for the new agency owner? A sale can disappear quickly if a buyer finds that not only will they lose employees, but that these people will enjoy free rein to compete against the new owners on the very book of business that's being purchased. If you're buying a book of business or an agency, make sure that the Employment Agreements, or at least the Non-Compete and Non-Piracy Clauses, are transferable. If there's any question about their transferability, make the acquisition or merger contingent on getting signed Employment Agreements with specific employees. An Employment Agreement protects both the employee (who is given specific duties and rights) and the agency. If an agency is being purchased or sold in an asset sale, this protection can become critical — we've seen wholesale departures that effectively ruined a transaction. If the sale involves stock, a strong Employment Agreement can provide a period of transition and stabilization that protects both buyer and seller. Either way, the new owner would be wise to re-negotiate a new Employment Agreement with pre-existing employees, using a legitimate form of consideration (thus avoiding any whiff of coercion) . The goal of the CompleteMarkets editor is to bring valuable content to the CompleteMarkets members. Providing content to insurance professionals to enhance their sales process, increase revenue streams, understand their clients and provide value to their agency. Login or Register (for FREE) to gain access to thousands of other great articles. Need more reasons to join? Need insurance for you, your business or your family? Get quality appointments - Save yourself a whole ...