FLOOD INSURANCE PROGRAM
 
 
Are you currently writing flood insurance? Are you getting 20% on new business and 20% on renewal business?  SPECIALTY INSURANCE AGENTS has entered into an agreement with NATIONAL GROUP INSURANCE COMPANY to appoint our members to sell flood insurance.  Our program pays 20% on new and renewal commissions. Writing flood policies increases your bottom line and supports your Association. 
 
If you are not currently writing flood insurance, all you need are a 2-20 license and a flood education class to write in the Federal Program. The Association can assist you in obtaining an on-line CE class that will satisfy your CE requirements and give you in-depth knowledge of the flood program.  You don't need a homeowner's appointment to write flood, but having a flood appointment could help you get a homeowners appointment.  Many of your clients need flood insurance and you can sell it to them.
 
You need to take the flood class (this class will also be presented at the 2010 convention), sign up with us and get appointed by National Group and notify your customers that you now have flood insurance available. You can also sign up with the National Flood Program and get referrals.
 
If you are presently writing flood, contact us to discuss the benefits of our 20% commission program.  You must be a member of SPECIALTY AGENTS to take advantage of this great opportunity.  If you sell just one $1000 policy -- the commission you receive will be enough to pay your annual membership fee for your entire office.  YES -- that is correct!  Membership is per office -- not per person.
 
Please call 888-290-8436 for information on how to join SPECIALTY INSURANCE AGENTS OF FLORIDA and get appointed to write flood insurance with NATIONAL GROUP INSURANCE COMPANY.  This is only one of the benefits of being a member of this great organization whose primary function is to work for you -- the SPECIALTY INSURANCE AGENT.
 
 
 
CURTIS TYRE
BOARD MEMBER
SPECIALTY INSURANCE AGENTS OF FLORIDA

 

 

 

It's 1886 All Over Again
By
Travis W. Moore
 
Each election cycle is hectic in Florida. We all quickly reach a point of saturation and attempt to avoid our mailboxes, televisions and dinner-time incoming calls to our home telephones as Election Day quickly approaches. Well, friends, the 2010 presidential mid-term election will be as busy, intense and meaningful. Not far under the current, there is a great deal of activity occurring and it behooves us as an association, and certainly each agent as an important part of the fabric of their community, to be paying close attention.
 
First, let's look at way 2010 is going to be so active.
 
There is something extremely significant regarding the November 2010 general election ballot; something that Florida voters have only seen one other time....in 1886.
 
Those of you who are astute historians will readily recall that 1886 was during a national period of Reconstruction following the Civil War. Similar to most southern states, Florida was in process of reconstituting an entire state government. The election of 1886 featured an entire slate of candidates for every one of Florida's statewide officeholders and not a single one was running as an incumbent to the office they were seeking. That has never happened since.
 
Until now.
 
Except for U.S. Senator Bill Nelson, whose office is not on the ballot in 2010, EVERY SINGLE ONE OF FLORIDA'S STATEWIDE OFFICES ARE ON THE BALLOT AND THERE IS NOT ONE INCUMBENT RUNNING TO RETURN TO THEIR CURRENT OFFICE.
 
When U.S. Senator Mel Martinez announced that he would not seek re-election to the United States Senate (and has in fact recently announced that he will resign his term early) he set off a scramble that has not been seen since the graveyard shift at the Woodstock, NY IHOP on August 15, 1969. Governor Crist is running for the open U.S. Senate seat, (there are no term limits for the U.S. Senate or House of Representatives so those seats do not become open very often...see Wikipedia entry for Senator Ted Kennedy or Senator Robert Byrd), instead of re-election as Governor. Attorney General Bill McCollum therefore isn't running for re-election as AG so he can run for Governor. Similarly, CFO Alex Sink is running for Governor and not for re-election as CFO. Our third Cabinet officer, Agriculture Commissioner Charlie Bronson, is term limited out leaving that an open seat as well. Several House and Senate members are running for the open Cabinet seats leaving those legislative seats open. (i.e., Senator Atwater not running for re-election to the Senate to instead run for CFO causing at least three House members, Reps. Bogdanoff, Domino and Skidmore to leave their House seats open to run for the Senate.) To make matters even more exciting, Florida's constitution establishes term limits for Legislators (something that was not the case in 1886) and a significant number of those seats (over 25 in the House and over 10 in the Senate) are open just from term limit attrition. Plus there has been movement due to retirement (Senator Pruitt) and unfortunately, death (Senator King) requiring special elections.
 
Second, why is this important to agents, agencies, companies and insurance consumers?
 
With all this movement and flux, a unique, historic opportunity is presented to change the dynamic, direction, perceptions and policies of state government. Florida will have a new Governor giving direction from the top. Will it be a former banking executive who understands small business and knows how important it is for business to be able to charge for the services they provide? Florida will have a new CFO who will be the state's chief regulator of agents, agent services and agencies. Florida will have new Legislators and legislative leaders who will help craft and move the public policy agenda.
 
We say it every election cycle but it is truly more important this year than in any of our lifetimes'....GET INVOLVED! Make certain you are an ACTIVE member of Specialty Agents so you have immediate access to helpful information regarding candidates, their positions on issues of importance to us, etc. Each month we will have a UNITE article in this space asking you to do certain things and letting you know what is happening so you can be an informed advocate for your industry. There are so many things you can do which will positively impact the process and therefore you directly. You can volunteer your time on a campaign. It is easy and fun and a small investment of time produces large, positive results. You would be surprised. You can host a meet and greet in your home or agency for a candidate and invite friends, family, agency employees, neighbors, fellow agents....we are all in this together. If you have any question about a candidate or how to specifically be engaged in the process, please don't hesitate to contact us. We are eager to point you in the right direction.
 
See you on the trail!                

A KIND WORD WILL GO A LONG WAY WHEN MARKETS GET HARD
 
 
By Arnie Vasquez
 
      So many agents are new to the world of insurance and may not know or remember what a hard market is, since it seems it's been soft for ever. We will all soon have our memories jolted since by all accounts it's around the corner or probably should have already been here. Many companies are showing less and less underwriting profits and some outright losses.
        In the personal lines we know something is not right when non-standard companies have begun to raise their rates, revisited their underwriting rules and have begun to cut-off agents. We are left with changed programs and re-issued rules on what they can and can't or wont do (unfortunately MVR cost increases have come during these times when agents could use the help of a more liberal and competitive insurance environment). As companies raise rates, capacity will start to become a problem with some of the smaller companies and a choice with larger companies that will be looking for quality business rather than just the numbers.
              We will all be scrutinized as agent to see if maybe we were the problem that they couldn't see black with their underwriting.  Once they eliminate agents that were truly a part of the problem, they will come to the conclusion that they continue to have a problem and must make the more difficult decisions. All the rules begin to change at such a rapid pace you can barely stay abreast of all of them. Policies begin to get cancelled for good reason and for not. Customers begin taking the increases, lack of options and lack of understanding by the companies on you and your staff.
                  You will now wish you hadn't scolded that marketing rep., underwriter and/or CSR at the company, on how important you were and that they should always remember that (to many veteran agents this sounds crazy but ask a few marketing reps, underwriters and/or CSR on how it happens more often than you think) It will now be their turn for you to understand how important they are and how they are the ones that can plead your case whether it be to reinstate a policy or bend an underwriting rule. They may be part of the committee that decides what agents to keep on board or what limitations to but on agents. Many times (soft or hard) the speed at which a file is worked on, is determined by how you've treated the person in who's hands the file is in, so the practice of treating company personnel with a courteous and kind way should be strongly adhered to and trained to all staff.
           I once had an agent who was complaining that he couldn't get certain things done at the companies that some of the other agents could. I asked if he was being friendly when calling and he assured me he was, but that sometimes he was treated rudely. When visiting with companies either at their headquarters or while at Tradeshows I always ask how my staff is doing following their rules and if any problems have occurred. Well, this one tradeshow, politely I kept being told "your staff is great but.....there was this one person who sometimes, not often, but sometimes was not overly polite and not very understanding." Guess who? We had a good long conversation and I made it understood that this behavior would not be tolerated and his attitude should change quickly. Fortunately he digested my reasoning and went on to have much better relations with company personnel and acknowledged how the change had really had a positive impact on how he was serviced from then on.
                  One friendlier reminder is that our industry is smaller than you think and that company personnel could be promoted or end up at another company where you may need their assistance and they probably won't forget how they were treated by you in the past. Some of the top company executives you know today were some of the best company personnel that agents dealt with in the past and appreciate the proper behavior (or not) of those agents.  

 

 TONER SLAMMING AND OTHER TELEPHONE MAIL SCAMS IN YOUR OFFICES - DON'T' LET YOUR EMPLOYEES BECOME VICTIMS - OR MAKE YOU ONE!
 
Over the past twenty years, working in an office, or multiple offices, I can't tell you how many times I have heard of, or received, phone calls to office personnel from "toner scammers."  Someone calls your office and says, "Hi, this is Susie from the copier company.  I'm just calling to let you know that the price of toner is going up $11.00 per case and I just wanted to see if you wanted to get an order in for your Mita copier before the price goes up."  Your employee says "Oh, we don't have a Mita, we have a Lanier."  Susie says "Oh, I better up date my records, which model is that?"  Your employee replies, "It's the 2137."  Susie says "Thanks, I'll update my records," and hangs up the phone.
 
Two or three days later, that same employee or another one gets a call, from the same "slammer" who now has the correct info on your copier and gives the same line about the toner pricing going up.  Your employee, in an effort to do the right thing says, "Oh yes, you better send us a case," and the fun begins.
 
You see, you have actually got a contract on your copier, which includes toner and you don't pay for it, but your employee doesn't know that.  The next thing that happens is you get a delivery in the mail, you have no idea that this is not your FREE toner and then you get a bill for $300 from some toner reseller that didn't even send you the "official" toner from your copier manufacturer and charged you twice as much as it would have cost, had you actually had to purchase it from the copier manufacturer.  Trying to send back a half case of toner to the "wrong" distributor is always a trial.
 
Alert your employees.  Make sure that there are only "assigned" personnel, who actually know what is going on in your office, who are allowed to order toner.  Check the shipping label when you receive toner to assure it came from the right place.  Otherwise, you are in for the battle of all time, because you will have actually "ordered, received and used" toner from this erroneous company and will actually OWE THEM THE MONEY. 
 
ANOTHER GREAT SCAM is the RQS Catalogue Company (name has been made up to protect the innocent).  Your office may receive catalogues from a company that has many wonderful items for sale at very affordable prices.  These companies NEVER send catalogues to private homes.  They simply send them to "Owner or Manager" of XYZ Business at your address.
 
An employee gets the catalogue, sees a whole bunch of "cool" stuff that they sure would love to have, and places an order.  No money required.  They receive the order, take it home (isn't this stuff lovely in my living room) and the employee neglects to pay the bill.  Next thing you know, that employee no longer works for you.  Right after that, you are receiving collection notices from LMO Catalogue Company (another fictitious name) for $700 "past due."  Thus begins another "fight to the death" with the billing company as to why you, the owner of the business, is NOT responsible for the money due.  Just the time it takes to fight these people is debilitating, when there is so much better use of your time.
 
Bottom line; circulate a memorandum to your employees.  Inform them that only certain people are authorized to make purchases for your company and that they the employee, could be responsible, financially, for ordering supplies NOT approved by you.  You might even want to make an official policy that personal orders cannot be delivered to your office without prior approval from you.  The catalogue companies will NOT deliver to private homes.
 
At the end of the day, it's tough enough to make a profit, without having to turn it over to companies you never chose to do business with in the first place.
 
Just my thoughts.
 
Pat Lorello

REGISTERED CUSTOMER SERVICE REPRESENTATIVE LICENSE ~ THE ALTERNATIVE FOR CSR LICENSING.
 
THE UNIVERSITY OF CENTRAL FLORIDA (WWW.CE.UCF.EDU/) NOW OFFERS A SELF STUDY PROGRAM FOR THE 4-40 LICENSE. THE COURSE IS COMPLETED BY SELF STUDY AT THE EMPLOYEES OWN PACE, TAKING OPEN BOOK TESTS AS THEY ADVANCE. THE TESTS ARE RETURNED TO UCF BY MAIL OR FAX FOR GRADING. THE FINAL EXAM IS ALSO AN OPEN BOOK TEST. WHEN UCF CERTIFIES THE EMPLOYEE HAS PASSED THE FINAL EXAM, THEY ISSUE THE NECESSARY DOCUMENTS TO APPLY FOR THE 4-40 LICENSE. THE UCF PROGRAM EXEMPTS THE EMPLOYEE FROM THE STATE EXAM. OUR AGENCY HAS HAD GREAT SUCCESS WITH THE 4-40 LICENSE PROGRAM AND HIGHLY RECOMMEND IT. IT IS A GREAT SYSTEM, SAVES THE AGENCY MONEY AND ALLOWS YOU TO MONITOR THE EMPLOYEES PROGRESS.  THE EMPLOYEE DOESN'T LEAVE THE OFFICE, BUT COMPLETES THE MATERIAL UNDER YOUR SUPERVISION. YOU REVIEW THE MATERIAL WITH THE EMPLOYEE AND SEE THEIR STRENGTHS AND WEAKNESSES. THE COST OF THE PROGRAM IS ONLY $299.OO. REGULAR CONTINUING EDUCATION IS REQUIRED TO RENEW THE 4-40 LICENSE IN THE FUTURE. 
 
GO TO THE UCF WEB SITE AND OPEN THE PAGE "PROFESSIONAL DEVELOPMENT ON THE LEFT SIDE. THEN OPEN THE "INSURANCE" PAGE FROM THE LIST. NEXT CHOOSE INSURANCE LICENSING COURSE AND THEN CHOOSE REGISTERED CUSTOMER SERVICE REPRESENTATIVE PRE LICENSING.
 
THE BEST PART OF THE PROGRAM, YOUR EMPLOYEE DOESN'T GET RECRUITED BY ANOTHER STUDENT WHILE ATTENDING A CLASS.  A SPECIALTY AGENTS MEMBER RELATED HOW THAT HAPPENED TO THEM. THEY HIRED AND TRAINED A YOUNG PERSON FOR SEVERAL MONTHS. AFTER DETERMINING THE EMPLOYEE WAS GOING TO BECOME PERMANENT, THE AGENT PAID THE $500.00 TUITION FOR THE 4-40 CLASS. THAT EMPLOYEE NEVER CAME BACK TO WORK, BUT WAS RECRUITED BY A FELLOW STUDENT TO ANOTHER AGENCY. THE SPECIALTY AGENT COMPLAINED TO THE SCHOOL, AND WERE ADVISED THEY WAS AWARE THAT THINGS LIKE THIS HAPPENED, BUT THEY HAD NO WAY TO CONTROL IT. NOW YOU DO WITH THE NEW PROGRAM AT UCF.
 
REMEMBER THE SPECIALTY AGENTS CONVENTION AND TRADE SHOW IN ORLANDO, MAY 2010. WE WILL BE OFFERING FREE C.E. TO ALL MEMBERS, INCLUDING THE REQUIRED COURSES ON ETHICS, WIND MITIGATION AND LIFE ETHICS. 

FOR INFORMATION CLICK HERE 

LAWMAKERS ON BOTH SIDES LOOKING AT FEE INCREASE REPEAL

By KATHLEEN HAUGHNEY
THE NEWS SERVICE OF FLORIDA

THE CAPITAL, TALLAHASSEE, Aug. 19, 2009..........Lawmakers on both sides of the political aisle are looking at repealing a law that raised fees on drivers starting Sept. 1.

Rep. Ron Saunders, D-Key West, and Rep. Brad Drake, R-Eucheanna, have both filed bills that would roll back the increases on a number of driving-related costs including the reinstatement of a driver's license, registration of a motor vehicle, license plates and initial registration for certain vehicles.

The two chambers approved the increases this past spring as a way to plug holes in the budget. The fees went into effect Sept. 1.

On that day, late payment fees on driver's license renewals increased 15-fold, from $1 to $15, and the cost of an original driver's license went from $27 to $48. Renewing a driver's license increased from $20 to $48.

All of the House Democrats voted against the increases in the spring, and Saunders said many of the House Democrats are in support of repealing them now and passing other revenue-raising measures instead, such as closing tax exemptions.

"From the beginning, we all agreed we needed some funding to avoid some cuts," Saunders said. "But we just think this is the wrong way to do it."

Drake voted in favor of the original measure, but now has changed his opinion. He said that when the proposal to raise the fees was originally brought up this past spring, he thought it was going to be used as a negotiating tactic and didn't expect the increases to be in the final budget.

"I think that in the times that we're living in, with the economy as bad as it is and the people trying to save as much money as they can to be able to live and work, I think that we need to give the people some reprieve through either reversing the original intent or putting those increases off down the road a little bit," Drake said.

The reversals could face stiff opposition in the Legislature. Despite the fact that House Democrats are united over the prospect, they are still at the mercy of a majority GOP that may not be keen to do away with incoming revenue when the budget remains difficult to balance.

Drake said it shouldn't be a partisan issue, but couldn't project how difficult it might be to reverse the Legislature's earlier move.

"I'm gonna try," he said.

-END-
9/11/09

Independent and Indispensable

http://www.newsserviceflorida.com

Reprinted with permission of News Service  of Florida  

CLICK HERE FOR MORE INFO 

 

 

 

The insurance world around us is changing.  Today, a carrier will write a piece of business and tomorrow they won't.  Today, a carrier is A rated and tomorrow they are in liquidation.  As agents, we are the liaison between the carrier and we get the job of explaining this insanity.  In today's marketplace, where do we make up the lost income from missed sales and decreases in commissions?  We are all well aware of the problem but what is the solution?
I believe that part of the solution is for us who have only sold one or two lines of insurance to get out of our comfort zone and increase our knowledge, customer base and lines that we sell.  Instead of sending business down the street to someone else who has more knowledge than us, why don't we gain the necessary knowledge and keep the business for ourselves?  After all, we have the license(s), so now let's fully use them.
Starting with this issue of UNITE; we will have a monthly column focusing on various aspects of Commercial Lines of insurance.  Initially, it may seem overwhelming, but most experienced commercial agents learn as we go.  Remember you are not alone.  We will have a monthly section in UNITE for your questions which we will respond to.  A partial list of what we will be covering will be General Liability, Excess and Umbrellas, Professional Liability, Workers Compensation, Property (Buildings, Contents, Business Interruption, Extra Expense, Builders Risk, etc.), Ocean Cargo and Inland Marine.  Our goal is to give you enough information to have the confidence to begin your journey into the Commercial Insurance World.
Where do you begin?  You begin with whatever the first account is that comes through your door.  It could be a plumber, an accountant, a restaurant or a mobile mechanic.  When we are new to anything, fear takes over and we think, "Oh no.  I never did this before.  It would be easier to send it down the road."   Instead, take out the appropriate Applications and simply begin to complete them.  Each type of classification of risk has different questions you will need to ask.  The good news is that most of the time you can use ACORD forms (125 Commercial Insurance Application, 126 - Commercial General Liability and 130 - FL Workers Comp) no matter what type of risk.  There are times when a Supplemental Application will also be required, but let's take one step at a time.  We will be going over various scenarios and types of questions to ask for various types of risks. 
This month's focus will be Guaranteed Cost Workers Compensation.  The basic rating formula is payroll multiplied a factor which is assigned to a specific class code.   Sources where you can get these codes is SCOPEs Manual or from the National Council on Compensation Insurance ("NCCI").  Information needed is as follows:
1.      Payroll based on Classification of Payroll (Corporate Officers vs. Regular Employees and each class of employee.  An office worker would be rated differently than a mechanic or engineer.
2.      Experience Mod. (A new business will start with an experience modification of 1.00.  As losses increase or decrease, the premium is either debited or credited by the percentage that the Experience Mod moves up or down.) 
3.      Loss Runs from previous 3 to 5 years, depending on the carrier.
4.      Find out if the Officers wish to be excluded?
5.      Credits are given for Safety and Drug Free Workplaces.
6.      What states do their employees work in?
The following is an excerpt taken directly from the Florida Division of Workers Compensation website:
 
Workers' Compensation Coverage Requirements For Employers
Chapter 440, F.S., establishes workers' compensation coverage requirements for employers.
1.               Construction Industry: An employer in the construction industry who employs one or more part or full-time employees must obtain workers' compensation coverage. Sole proprietors, partners, and corporate officers are considered employees. In the construction industry only, members of a limited liability company are considered corporate officers. Corporate officers may elect to exempt themselves from the coverage requirements of Chapter 440, F.S.
A construction industry contractor, who sub-contracts all or part of their work, must obtain proof of workers' compensation coverage or a Certificate of Election to be Exempt from all sub-contractors, prior to work being done. If the sub-contractor is not covered or exempt, for purposes of workers' compensation coverage, the sub-contractor's employees shall become the employees of the contractor. The contractor will be responsible to pay any workers' compensation benefits to the sub-contractor and its employees.
2.               Non-Construction Industry: An employer in the non-construction industry, who employs four or more part or full-time employees, must obtain workers' compensation coverage. Corporate officers are considered employees, unless they elect to exempt themselves from the coverage requirements of Chapter 440, F.S. Sole proprietors and partners in the non-construction industry are not considered to be employees unless they elect to be employees. The Notice of Election of Coverage, form DWC 251, must be submitted to the Division. Once approved the individual is considered an employee until a Revocation of Election of Coverage, form DWC 251-R is filed with, and accepted by the Division.
3.               Agricultural Industry: Agricultural employers with five or more regular employees and/or 12 or more seasonal employees, who work for more than 30 days, must obtain workers' compensation coverage for those employees.
4.               Out-of-State Employers: Any construction industry employer having one or more part- or full-time employees performing work in Florida is required to obtain a Florida policy through a Florida-licensed insurance company. The company must use the Florida job classification codes, approved manual insurance premium rates, rules, and manuals prior to beginning work in Florida. If the construction industry employer has an out-of-state policy, the insurance company must be licensed in Florida, and Florida must be listed in Section 3A of the policy.
 
In the real world, it can be difficult to find a Workers Comp carrier in the voluntary market who will write a WC policy with less than 3 employees.  You would then have place the business with the FWCJUA (Florida Workers Compensation Joint Underwriting Association).
 
In closing, fear not, for everyone who ever wrote a Workers Compensation policy was once where you are right now.  In these hard economic times, we must be brave.  It is our livelihood.  Remember the first auto or homeowner's Application you completed?  Now, look how far you have come since then!!!   Be encouraged.  We are all in this together. 
 
Check out the following:
 
Florida Division of Workers Compensation
http://www.fldfs.com/WC/employer/index.html

 
Scopes Manual: Available at https://www.ncci.com/NCCIMain/ServicesTools/OnlineCatalog/Pages/SCOPES.aspx?pnl=pricing

 
Webinar on Intro to Workers Comp
https://www.ncci.com/nccimain/Training/WorkersCompensation/Pages/IntroductiontoWorkersCompensation.aspx

 
http://www.fwcjua.com/
 
 
Byline: Deborah Grey, CIC

Board Member of Specialty Agents

Marketing Rep for Morstan General Agency of Florida

Contact her at dgrey@morstan.com.

 

 

WHY SHOULD I BE A MEMBER OF SPECIALTY INSURANCE AGENTS ASSOCIATION ?  

 

Want to become a member of Specialty Insurance Agents Association? Just call to receive the new membership application emailed, faxed or download form today. Don't delay call Susan Graves at 1-888-290-8436

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