Massachusetts Association of Insurance Agents

The Mass Agent

MAIA’s Official NewsletterAugust 30, 2017

SUBMIT YOUR NEWS

in this issue...

IIABA NewsTrusted Choice Disaster Relief Fund

MPIUA NewsMPIUA Announces Automatic Renewal

Industry NewsHeritage Insurance to Acquire Narragansett Bay Insurance

DOI NewsUpdated Auto Filings

MAIA NewsThe Big Event 2017

YAC NewsYoung Agents Host Legends Panel at Gillette Stadium

WCRIBRecent Bulletins

E&O NewsIs the Carrier Providing All the Coverages You Requested?

Education NewsThe AAI Designation

Thanks Company Partners

IIABA News

MPIUA News

MPIUA Announces Automatic Renewal

The Massachusetts Property Insurance Underwriting Association (MPIUA) has announced a change to renewal procedures to take effect in October. In an announcement made by MPIUA made on August 8, 2017, Homeowners and Dwelling Fire policies renewing on or after October 1, 2017 will begin to receive a Renewal Premium Invoice, rather than a Renewal Offer Premium Invoice.

Per the announcement: “Approximately 50 – 55 days prior to policy renewal a Renewal Premium Invoice will be generated. This invoice will be mailed to both the insured and producer named on the policy. Following the issuance of the Renewal Premium Invoice a copy of the Renewal Declarations Page will be mailed to the producer under separate cover. This Renewal Declarations Page will indicate that coverage shall continue uninterrupted into the renewal policy term.”

This change affects Homeowners and Dwelling Fire policies only. The MPIUA points out that Commercial Fire policies “remain on the existing expiration and renewal offer program.” For additional questions and payment options please refer to the Full Announcement or contact MPIUA directly at 617-723-3800.

MPIUA Bill Pay ReminderInvoice numbers are no longer required when paying a bill at mpiua.com. If you experience an error when submitting payment your web browser history may have to be cleared. To do so, hold Control and F5 [CTRL + F5] to clear the browser’s cache [memory] and make the attempt again. If you continue to experience an issue please contact customer service at 617-723-3800.

Hurricane Harvey Disaster Relief

Our thoughts and prayers have been with the people of Texas who have been experiencing the effects of unprecedented flooding, damage and devastation caused by Hurricane Harvey.

As insurance professionals, we know that a disaster of this type not only has a significant impact on the insurance industry but also creates lasting effects on independent agencies in the area, their staff and the communities they serve.

As a member of the independent agent community, we encourage you to consider making a monetary donation to the Trusted Choice Disaster Relief Fund. This fund is available to assist IIABA members and their staff in the event of unrecoverable losses caused by a hurricane or other natural disaster.

Donate Now

APP

August 30, 2017 2

Updated Auto Filings

MAIA has recently collected the latest insurance company filings from the Division of Insurance. Included below is a summary of updates. Members may view the newest filings for the following companies at massagent.com (log-in required):

Company Filing Date & Rate Impact

Amica AMMA131052709 - Form/Rule 11/01/17

Arbella ARMU131066622 – Groups 06/17

Commerce CMRC130956150 – Rule

CMRC131069634 – Groups

CMRC130109234 – Groups

08/01/17

07/17

07/17

Foremost FORE130992370 – Forms 11/01/17 New

12/01/17 Renew

Citizens/Hanover HNVXG131065779 – Rate 11/01/17 New

10/01/17 Renew

+1.9% Impact

Liberty Mutual

LM General

LBPM131749772 – Groups

LBPM131133440 – Groups

06/17

08/17

Metropolitan P&C METX131037564 – Rate/Rule

METX131105759 – Groups

08/18/17 +6.7% Impact

07/17

Norfolk & Dedham NFDG131034573 – Form 08/01/17

Quincy Mutual QUEN131074641 – Form 08/15/17

Sentry Select NEW CO VKNG130994341 – Initial Filing for Motorcycles 07/30/17

Commercial Endorsement CA 04 49 11 16 Approved by DOI Per notice on 08/22/2017 on the AIB website: “The Division of Insurance has placed on file (approved) the AIB filing of ISO endorsement CA 04 49 11 16 for an October 1, 2017 effective date. Please see Commercial Auto Notice CA-054 for details.”

DOI News

Heritage Insurance to Acquire Narragansett Bay Insurance

Narragansett Bay Insurance Company (NBIC) announced earlier this month, that the company has entered an agreement to be acquired by Heritage Insurance Company.

Citing the companies’ similar business models Tim Moura, Senior VP of Narragansett Bay, expressed excitement by management in having found the right partner to “provide long-term financial resources and operational support to position NBIC for continued growth and success.” The combined entity is expected to have over $900 Million in gross premiums written. In a letter to NBIC agents Maura wrote:

“NBIC management are very excited to continue running the NBIC business and to put our expanded resources to good use after the transaction is completed. In the coming months, NBIC management and Heritage will be collaborating to develop a comprehensive integration plan and we will share more information with our agents as it becomes available. In the meantime, it is business as usual for NBIC.”

A lead writer of commercial residential insurance in their current markets, Bruce Lucas, Heritage Chairman and CEO, recognized the acquisition as part of Heritage’s geographic diversification strategy, noting that they will be looking to “expand the commercial residential expertise we have cultivated in our current markets to the Northeast.”

Primarily focused on coastal property insurance with over $600 million in gross premiums written, Heritage Insurance Holdings is a publicly traded company based in Clearwater Florida. Heritage currently writes in Florida, Hawaii, North Carolina, South Carolina and Georgia, and is licensed in the states of Alabama and Mississippi. Narragansett Bay Insurance Company is based in Pawtucket, Rhode Island, with a presence in New York, New Jersey, Connecticut, Rhode Island and Massachusetts.

The transaction is expected to close by the fourth quarter of 2017.

Industry News

August 30, 2017 3

YAC News

Young Agents Host Successful “Legends Panel” at Gillette Stadium

Approximately 60 attendees joined the Young Agents Committee and Plymouth Rock Assurance for a panel discussion at Gillette Stadium on Wednesday, August 16th, where industry leaders shared their thoughts about what successful agents are doing, touching on the topics of technology, marketing, talent acquisition, and industry consolidation.

The panelists (pictured L-R) Ray Gallant of Gallant Insurance, Steve Gilmore of ServiceMaster by Gilmore, Glen Davis of Renaissance Alliance, Ben Cavallo of C&S Insurance, and Allan Egbert of Ask Kodiak, represented a variety of industry perspectives and experience. The panel was moderated by Ryan McMahon, Business Development Manager at Plymouth Rock.

Panelists were in agreement throughout the hour-long discussion, that successful agents were stepping away from their “traditional comfort zones” in order to step-up their value proposition to clients. They described the use of emerging technology, hiring from outside the industry and targeted marketing approaches that included both digital and in-person components. Each described the ways they are seeing their own agencies or those of their colleagues, enhance the client experience. Successful agencies were using technology to

increase efficiency, extend their voice online and provide a focus on risk management and value-added services.

The conversation continued in Patriot Place where attendees gathered for a networking event hosted by ServiceMaster by Gilmore. The casual setting capped off an interesting afternoon for attendees. Additional coverage of this event can be found in Agency Checklists and the 8/25/17 edition of The Standard. The Young Agents look forward to hosting future panel discussion events.

Registration is open for The Big Event 2017

MAIA is proud to host the Association’s annual conference and trade show, which will be held Thursday, October 26th through Sunday, October 29th at the Boston Marriott Copley Place. Known as one of the largest independent agent conferences in the country, The Big Event provides agents and industry partners an incredible opportunity for education, networking and entertainment.

Focused on the event theme “Amplify Your Voice”, the 2017 program has been crafted to be high energy, interactive, and undoubtedly fun … with a rock ’n’ roll edge. The robust 3+ day schedule features more of MAIA’s exceptional member agents as presenters, speakers and panelists, alongside a roster of insurance industry experts and state government representatives. MAIA is honored to have Governor Char-lie Baker join us as the Guest Speaker of Arbella’s Gourmet Luncheon on Friday, October 27th and Registrar Erin Deveney as a speaker on Saturday, October 28th.

As always, attendees will find a wide variety of breakout sessions, an energetic 133-booth trade show and some rockin’ entertainment. Some highlights include:

• Personal and Career Track sessions on the agenda include Mindfulness, Belly Dancing and Genealogy & more.• Nominate your Agency Idol – $1,000 winner announced at The Safety Zone’s Rockin’ Reception• Watch for your name to appear in The Great Central Give-a-Way.• Hear from leadership at MAIA’s State Annual Meeting.• E&O Loss Control options for an incredible value.

Registration is open now. Questions about the conference may be directed to Heather Kramer at 800-742-6363.

MAIA News

August 30, 2017 4

Is the Carrier Providing All the Coverages You Requested?by Curt Pearsall, CPCU, AIAF, CPIA, President, Pearsall Associates, Inc. and Special Consultant to the Utica National E&O Program

In your efforts to grow your business, your agency is probably actively soliciting new business opportunities. This will eventually lead to sending new business applications to your carriers and wholesalers for competitive quotes and, hopefully, landing those accounts. The applications will reflect specific coverages, including modifications to endorsements, that you believe will be needed based on your exposure analysis.

As the carrier proposals arrive, suppose you determine that the quoted premiums look great. Is that the only extent of your focus? Are you assuming that each proposal provides all the coverages requested? Do you believe that if the carrier could not provide certain requested coverages that it would have told you?

If the answer to any of these questions is “yes,” there are some potentially significant errors and omissions (E&O) ramifications. To prevent a major headache, every agency should have a detailed approach to comparing the coverages requested versus those provided.

Perform a ComparisonThe best place to start is to presume the carrier proposal does not exactly meet the coverages requested on the application. Use a spreadsheet or checklist to carefully compare the carrier proposal to your requested coverages. Ideally, the producer working on the account should be involved because who would better know the coverages needed to sell the account? It is possible that the carrier added an endorsement that must be noted. This could include issues such as a Protective Safeguards Endorsement or a Professional Liability Exclusion.

If the application was sent to the wholesaler market, the coverage issues could be more significant. The excess and surplus (E&S) market is known for excluding exposures they are not willing to cover and for placing significant limitations on coverages.

This comparison would identify any missing pieces and serve as the basis for dialogue with the underwriters to resolve the issues. Since this process could take some time, agencies should plan on securing the carrier proposal well in advance of the date they will be meeting with the prospect to propose the account. The carrier proposal will likely reference specific endorsements. Unfortunately, the names of these endorsements may not make it clear exactly what coverage is being offered. It is highly suggested that specimen forms be secured and reviewed.

Prevent a DisconnectPerforming this comparison is also key when it comes to developing the agency proposal. If a comparison is not done, there is greater potential that the agency proposal may reflect coverages that were requested and presumed included. What if some of those coverages requested were not included by the carrier? Your proposal could be incorrect. This could be extremely damaging to the agency if a subsequent problem develops.

The responsibility for reviewing the proposal to determine how well it provides what was requested falls squarely on the retail agency. It makes no difference if you are dealing with a standard carrier or a wholesaler. In addition, contrary to the belief of many, this issue is not solely a Commercial Lines account issue. It can occur on Personal Lines accounts as well.

There are many situations where there can be a disconnect between the carrier proposal and the application. The only true way to uncover the magnitude of the issue is to perform a comparison. Make sure your agency has this procedure in place.

The material contained in this article is for informational purposes only and is not for purposes of providing legal advice.

You should contact your attorney to obtain advice with respect to any particular issue or problem.

E&O News

Number OneInsurance Agency

WC News

Recent WCRIB Bulletins

Access the latest WCRIB Bulletins at WCRIB.org including the following: Updated Information on Residual Market Share (sb09-17) - includes the latest residual market share estimate with data as of 8/15/17 and Residual Market Loss Ratio and Burden Estimate (sb08-17) - the Pool Re-serving Committee estimate (as of 3/31/17) of the Massachusetts loss ratio for policy year 2016 is 71% with a resulting residual market burden of 2.04%.

August 30, 2017 5

91 Cedar Street, Milford, MA 01757 508-634-2900 · 800-742-6363

massagent.com®inquiries to Melissa Murphy · mmurphy@massagent.com

Massachusetts Association of Insurance Agents

Platinum Partners

Gold Partners

Diamond Partners

Thank You Company Partners 2017 for supporting MAIA’s mission to strengthen and elevate the independent insurance agents of Massachusetts. We appreciate your generous support.

Number OneInsurance Agency

Education News

ACCREDITED ADVISER IN INSURANCE (AAI)

In today’s increasingly complex property-casualty insurance marketplace, only producers with in-depth insurance knowledge and a strong focus on customer service have a competitive edge. In 9 one-day seminars, you can gain the tools you need to establish a clear professional advantage in the marketplace and fulfill your commitment to customer service by earning the Accredited Adviser in Insurance (AAI) Designation.

The AAI Designation is comprised of nine one-day seminars. Each classroom segment concludes with a 30-question multiple choice exam. The designation is earned when you successfully complete all 9 segments and pass the corresponding exam. Self-study is RECOMMENDED because of the volume of information covered in each class. View the upcoming AAI classes offered at MAIA …

DATE CLASS NAME CITY CEUs9/25/17 AAI 83A - Principles of Agency Mgmt Milford, MA 8Learn about the formation and environment of an agency, organizational management, sales management and personal production plans including time management and negotiating skills.

10/18/17 AAI 83B - Insurance Production Environment Milford, MA 8 Get a closer look at the relationship between producer and insurer, ways of developing the public image of your agency and how to handle agency growth and customer communications. Discover the work of market segmentation and target marketing.

11/29/17 AAI 83C - Agency Mgmt Tools Milford, MA 8 The ins-and-outs of agency management as it relates to automation, client service financial management and the producer’s legal and ethical responsibilities.

10/24/17 AAI 87 - Agency Leadership & Strategic Alignment Milford, MA 8Complete 1 additional course to earn the Accredited Adviser in Insurance - Management Designation (AAI-M ). Learn to apply strategic decision making, marketing and communications to gain a competitive advantage and maintain strong relationships with clients, insurers and other partners and align agency operations with organizational goals. New techniques to improve agency financial results through strategic risk analysis and effective portfolio management are also covered.