Primary Agent - August 2009 - PA Edition

PENNSYLVANIA

INTHISISSUE_______________How to position and plan foryour agency’s future

Erie Insurance talks shop

Member profile: Insuranceruns in the blood for five generations

Independence throughemployee ownership

G10463_Aug09Covers.qxd:August09Primary 7/20/09 5:00 PM Page 3

© Copyright Employers Mutual Casualty Company 2009 All rights reserved

www.emcinsurance.com

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General Casualty is a registered service mark of General Casualty Company of Wisconsin.QBE and the links logo are registered service marks of QBE Insurance Group Limited.All coverages underwritten by member companies of QBE. © 2009 QBE Holdings, Inc.

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G10463_01-11PrimAgAug09.qxp:August09Primary 7/20/09 4:45 PM Page 1

Perpetuation is in your hands — positioning & planning for your agency’s futureBack by popular demand … MarshBerry returns to lead IA&B members in atwo-day executive management conference focused on agency perpetuation.

Page 12

Erie Insurance talks shopErie Insurance representatives attended the May IA&B Board of Directorsmeeting to discuss the company’s unique offerings, as well as its commitmentto the independent agency system, plans for growth and legislative priorities.Here, IA&B provides a recap.

Page 16

Thicker than water: Insurance runs in the blood for five generationsKathleen Mullins Shoudt gets it naturally. She represents one of fivegenerations that have found a career in the independent agency system.

Page 20

Inside track: Independence through employee ownershipAs Murray Risk Management and Insurance’s two primary stock holdersreached their mid- to late 50s, they began planning. Their goal? To perpetuatethe agency and maintain its independence.

Page 26

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ContentsP R I M A R Y A G E N T M A G A Z I N E

Copyright 2009. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two monthsprior to publication. Advertising rates furnished upon request.

Address inquiries to:Primary Agent EditorPO Box 2023Mechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2009-8) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

4 Chairman of the Board’s Message5 Glance at Events6 State News7 New Members8 Preventing Errors & Omissions9 Member FAQ

10 Coverage Corner15 IA&B Partners23 Technology Update25 Advertisers Index25 Classified Ads

In every issue

Mission StatementPrimary Agent delivers ideas to helpInsurance Agents & Brokers’ membersnegotiate their unique position asguardians of trust between insuranceconsumers and companies whilefacing the challenges of maintaining a small business. Primary Agent also supports IA&B’s mission topreserve and advocate the AmericanAgency System.


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OfficersRobert J. “Buc” Cawley, AAI

ChairmanWexford, Pa.

Kathleen M. Glattly, ChFC, CLU, CPCUVice ChairwomanFactoryville, Pa.

G. Kevin Nemith, CICImmediate Past ChairmanDover, Del.

MembersNorman F. Basso, CPCU

York, Pa.

Vincent D. “Chip” Boylan Jr., CPCURockville, Md.

Timothy P. BurrisThompsontown, Pa.

M. Scott Clemens, CIC, CPCU, CLU, ChFC Souderton, Pa.

John T. “Chip” Colwell Jr., CICCorry, Pa.

Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-PWest Chester, Pa.

Denise M. Kozel, CPCUNewark, Del.

Linda A. McCann, AAI, CPCU, CPIWSalisbury, Md.

Thomas G. McElhaney State College, Pa.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Scott C. Rogers, CPIAYork, Pa.

David Rosenkilde, CICReisterstown, Md.

Susan A. Sallada, CIC**Ft. Washington, Pa.

William D. Schneider, CPCU, ARM*Pittsburgh, Pa.

Robert A. Walbeck, CICHomer City, Pa.

David B. Wasson Sr., CICState College, Pa.

James M. Watkins*Dover, Del.

King W. “Kip” White, LUTCFFallston, Md.

John S. Yasik, CICNewark, Del.

* IIABA National Director** PIA National Director

Board of Directors

Perpetuation planning takes center stage

Perpetuation. It’s an industry buzz word these days. As itshould be. By and large, baby boomers are heading up thenation’s independent agencies, and as they look towardretirement, not enough young people are looking towardthe industry as an appealing opportunity.

Fortunately, knowing is half the battle, and the industry asa whole has recognized the impending crisis and beguntaking action. Producers are attending career days, tradegroups are implementing awareness campaigns andagency principals are contemplating acquisitions, mergersand succession plans.

IA&B has swung into action as well.

The board of directors has prioritized the issue, andassociation staff is responding. There is a hub oniabgroup.com that links members to industry resourcesand an October 2009 executive management conferencethat will focus on perpetuation planning.

This edition of Primary Agent magazine is dedicated to the topic, too. On the pages that follow, you’ll find moreinformation about the conference, plus examples of how IA&B members have dealt — and plan to deal — with perpetuation.

So consider this your wake-up call. If you haven’t put thetime and energy into a succession plan, no one else isgoing to do it for you. At the same time, there have neverbeen as many resources to help you make it happen.

[ 4 ]

ROBERT J. “BUC” CAWLEYAAI

ChairmanO F T H E B O A R D ’ S M E S S A G E


Glance at EventsDate Topic Location

4 CISR — Commercial Casualty Scranton, Pa.

4-6 P&C Licensing Allentown, Pa.

4-6 P&C Licensing Mechanicsburg, Pa.

5 CISR — Commercial Casualty State College, Pa.

6 CISR — Commercial Casualty York, Pa.

11 CISR — Commercial Casualty Hagerstown, Md.

Company Auto vs. Personal Auto seminar Philadelphia, Pa.

Insuring Contractors seminar Gaithersburg, Md.

12 CISR — Commercial Casualty Lancaster, Pa.

12-14 James K. Ruble Graduate seminar Hershey, Pa.

13 CISR — Commercial Casualty Philadelphia, Pa.

18 Insurance Success Seminar: CPIA 1 Pittsburgh, Pa.

18-20 P&C Licensing Pittsburgh, Pa.


19-21 CIC — Personal Lines Timonium, Md.


25 William T. Hold Seminar Hagerstown, Md.

25-27 L&H Licensing Mechanicsburg, Pa.

26 Dynamics of Service Baltimore, Md.

27 William T. Hold Seminar Newark, Del.

Don’t wait for a CISR course to come to you — access it from your desktop! CISR OnLine is an excellent way to complete a course you need that may not be scheduled in your area in thetimeframe you need it. You can also mix and match the CISR OnLine course with classroom courses so you can stillmaximize the benefit of networking and face time with the instructor.Register for courses online at iabgroup.com.

A U G U S T C A L E N D A R

[ 5 ]


State NewsPrimary Agent | August 2009

[ 6 ]

Quick factsName: Patricia “Pat” Shughart

Designations: CIC, CPIW

Title: Customer Service Agent

Employer: Michael A. StarrInsurance, Chambersburg, PA

Pat Shughart’s reputation precedes her.Recently she received a call from aman in East Waterford — an hour anda half away from her Chambersburgoffice. He was planning a conferenceand had difficulty finding coverage.When a bank teller overheard hisdilemma, she (someone Shughart stilldoesn’t know) said to call Pat, becauseif anyone could place the risk, it wouldbe her.

“I go out of my way every day of theweek to do something for someone,”says Shughart. “That’s the wayeveryone who’s in this business shouldbe. We don’t have a physical productto hand someone. All we can givethem is the best service possible.”

About the Outstanding CSR of the Year contest

Each year The National Alliance forInsurance Education & Research holds acompetition to find the most exceptionalcustomer service representatives in thenation. One CSR is recognized from eachstate and Puerto Rico. These 51 awardwinners then advance to the nationalcompetition, where one CSR is chosen toreceive a $2,000 prize in recognition of hisor her contributions to the industry andprofession. In addition, four nationalfinalists receive $500 each.

Pat Shughart named Outstanding CSR ofthe Year for Pennsylvania


[ 7 ]

Through the yearsShughart began her insurance career in1965, when she took a position withMarsh and McLennan in Chicago. Thereshe started in group accident andhealth and later worked in life.

After a few years, she left Illinois totravel across the country and visitEurope several times. But shereturned to insurance — the industryshe already loved.

In 1982 she settled in south centralPennsylvania, and by the following yeartook a full-time position within anagency. She began with Michael A. StarrInsurance in 1997.

Of particular interest“One of my fields of expertise is SurplusLines,” shares Shughart, “It has becomemy baby, and I really enjoy it.”

When she tells the story of a client whobought a cave and wanted to give tours,it is apparent that she loves thechallenge — and the ability to helpsomeone in a crunch — that come alongwith Surplus Lines coverage.

“I hate to turn anyone away,” sheadmits. “If I don’t help them, maybe no one will.”

With that attitude, it is no wonder thatShughart has developed such strongties to her customers, whom she countsas friends.

“Some of them hug me when theyleave,” she says.

In tough timesWhen asked about the biggestchallenges of working in the industry,Shughart cites the current economy.

“Not a day goes by that someonedoesn’t call and say, ‘Business is bad,what can I cut back, what can I do?’”she shares.

Shughart uses those calls as anopportunity to provide superb customerservice. She walks her clients throughtheir policies and discusses theircoverages – what they have and whatthey can do without.

“It’s important in this economy toprovide the best service we can,” saysShughart. “That’s one of the ways wekeep accounts.”

____________________________

“When I have a service request,I want them to leave heresaying, ‘That person did a

bang-up job,’” says Shughart.

____________________________

On top of changeThat ability to understand coveragesand talk through them with clients iscrucial, according to Shughart.

“The most important thing that newagents can do is to study and learn allthey can,” she advises. “They need togo to CISR or CIC courses and get ahandle on coverages.”

Shughart makes a similar suggestion tothose who have been in the businessfor years as well.

“Coverages change every day,” shesays. “We have to keep up with thechanges, which is especially importantwhen we have a lot of companies withdifferent coverages.”

Essay excerptAs part of her application forOutstanding CSR of the Year, Shughartsubmitted an essay on the five ways aCSR can add value to the insurance-client relationship. An excerpt follows.

“At a time when competition forour customers is intensifyingand when our rocky economy

leaves profit margins shrinking,maintaining great customerrelationships has never beenmore critical….

My rule of thumb is never let theday end without returning allphone calls; customers deservethe best service I can supply.Whether large or small,customers want effective,efficient responses to theirquestions….

I consider customers friends andalways treat them that way.Remembering their names, evenif I see them outside the office,makes an impression. Takingthat little extra time to get toknow your clients goes a longway in maintaining loyalty….”

New MembersW E L C O M E

HUB International Northeast LimitedNorristown, Pa.

Life & Health Insurance Services Inc.Unionville, Pa.

The Bolger Group LLCFlourtown, Pa.

Capitol Area AgencyShiremanstown, Pa.


Although most agents wouldcharacterize the currentmarketplace as somewhatsoft, there is no doubt that asignificant amount of businessis still placed with Excess andSurplus lines companiesthrough the wholesalercommunity. Whether theneeded coverage is propertyor general liability orumbrellas as well asprofessional liability andDirectors & Officers Liability,the E&S marketplace todayserves a vital need for virtuallyevery insurance agent.

To effectively deal in thismarketplace requiresknowledge of some distinctivedifferences as compared tothe admitted marketplace.Without knowledge of thesedifferences, dealing in thismarketplace could be yourbiggest nightmare.

First, let me clarify that anyE&O concerns that I haveabout this segment of themarketplace should not beconstrued as a negativecomment towards the carriersthat write business on a non-

admitted basis. There are a tremendous number of top-notch, A-rated E&Scarriers that have stability and exhibit unbelievablecreativity in writing whatcould be characterized as tough business. Theindustry is better because of these markets.

Essentially, E&S, or companiesthat write business on a non-admitted basis, means that inmost state jurisdictions, thecarrier can write the businessfree of rate and free of form.While most carriers have setrates for the business theywrite, these rates do not haveto be filed with the InsuranceDepartments. One advantageof this is that the carrier canchange the rates very quicklysince they do not need stateInsurance Departmentapproval. In fact, this is whatyou are probably seeingtoday. As the standardmarkets look to grow, muchof the business that they aretargeting is businesspreviously written in the E&Smarket. So the E&S carriersare dropping their rates to

keep these accounts, and theycan do this fairly quickly.

As stated above, the formstypically do not need to befiled. This is actually one ofthe areas that has thepotential to cause a problemand that you should look outfor. Most of the E&Scompanies use their ownpolicy language. The languagemay have some resemblanceto ISO, but don’t count on it.As a result, the coverages canbe modified withoutdepartment approval. Sowhen placing business inthe marketplace, be sure torequest a specimen copy ofthe forms from thewholesaler that you’redealing with and includethem in the proposal toyour client. Don’t assumethat when you get quotesfrom a wholesaler with 3different carriers that thecoverage is identical with allthree. Be certain that you aredealing with a wholesaler thatwill advise you of theexclusions. This will enableyou to guide your accountaccordingly. It is also

PreventingE R R O R S A N D O M I S S I O N S

[ 8 ]

CURTIS M. PEARSALL,CPCU, AIAF, CPIA

Curtis M. Pearsall

is vice president of E&O

for Utica Mutual Insurance

Company in Utica, N.Y.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your Errors &

Omissions coverage, contact

IA&B at (800) 998-9644 or by

e-mail at [email protected].

SURPLUS LINES – A POTENTIAL E&O NIGHTMARE?

Primary Agent | August 2009


important to understand that E&Scompanies are not required to send out conditional renewal noticeswhen the renewal coverage is goingto be different from the expiringcoverage. Once again, it would beadvantageous to ask your wholesaler ifthe coverage in the renewal proposal isdifferent from expiring. Without thisknowledge, you will need to do a policycomparison to identify the differences.Do you have the time?

Oftentimes in the standard marketplace,circumstances arise where you areasked to bind an account effective today,but due to your workload, you do notget to the actual task until tomorrow.Well, in the standard market, this maynot cause a problem since you areprobably acting as an agent and thushave the authority to bind on thecarrier’s behalf. In the E&S market, thiscan be your biggest headache. In theE&S market, you are not acting as anagent, and you should understandthat carriers will bind the risk the daythey are asked to bind, not a daybefore. No backdating. I can guaranteethat not binding on time will cause yousignificant anxiety, praying that a lossdoes not happen. Also it may not be justan issue of calling to bind. With manywholesalers, binding a risk may requiremoney and the necessary affidavit formsprior to binding. In some situations thismay be virtually impossible. Once again,dealing with a wholesaler that looks tomake dealing in the E&S marketplacesomewhat customer friendly is a must.

Sounds like dealing in the E&Smarketplace can be a nightmare. Yes, itcan be, but by better understanding theuniqueness of it, you can adjust yourprocedures and workload accordingly.Also, having a relationship with thewholesaler that you do business withcan play a key role.

[ 9 ]

?QUESTION:

We hold a non-resident license in Ohio and just received a delinquency noticeabout corporate franchise tax from the state. What is this notice and what, ifanything, did we do wrong?

ANSWER:This notice likely comes from Ohio’s Department of State, but a similar situation couldarise with other states as well.

When you applied for a non-resident license in Ohio, you probably first registered theagency with the Ohio Department of State. This came with some requirements, such as those relative to annual filings and taxes. Whether those requirements were clear or not from the onset is a different story.

It is a common misconception that if your license is renewed everything else follows suit. Rarely is there coordination between the state’s Insurance Department and theSecretary of State.

In the same line of thought, rarely are the reporting requirements the same from onestate to the next. So, if you are licensed — and registered — in many states, you need tomonitor and abide by each state’s specific obligations. Some states send requests tobusinesses registered in their states and systematically ask for annual reports. Someexpect to receive those reports annually, but rather than notify you in advance, they will simply post the information on their Web site.

As the number of non-resident licenses held by an insurance agency increases, so does the need to monitor each state’s requirements, forms and deadlines. Theserequirements do not only stem from the Department of Insurance, but also from theDepartment of State.

In your case, the best course of action is probably to:

1) Contact the Ohio Department of State and explain that you were not aware of the need to file the annual report and had assumed that the license renewal handled by the state ‘s Department of Insurance was coordinated with any Department of State requirement. In other words, you interpreted the license renewal as the confirmation that everything was in order.

2) Offer to correct the deficiency from now on. Usually, the states are tolerant of that approach.

3) Make sure you implement a system that will remind you of the report thatis needed for the state in question and the deadline for remittance. Put together a chart with each state. Investigate the other states for which you hold a license and are registered as a business entity, and keep an eye on their Web sites for updates to the requirements.

DO YOU HAVE A QUESTION? E-mail it to us at [email protected]. Please use “Primary Agent FAQ” in the subject lineof your message. You can also fax your question to (717) 795-8347. We look forward toanswering your questions!

Member FAQ


CoverageC O R N E R

[ 10 ]

JERRY MILTON, CIC

Jerry M. Milton teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.

IS A DIRT BIKE AN “UNINSURED MOTORVEHICLE” UNDER PENNSYLVANIA’S FINANCIALRESPONSIBILITY LAW?


On July 6, 2001 Ivan andHelene Burdick were travelingin their auto on a public roadin the city of St. Mary’s, PA.Nicholas Dragone wasoperating a dirt bike in aprivate driveway thatintersected with the road onwhich the Burdicks weretraveling. Dragone entered the road in front the Burdicks’auto. The Burdicks collided

with the dirt bike and then ran into a ditch. Both suffered injuries as a result of the accident.

Dragone’s dirt bike wasunregistered and uninsured.Following the accident, theBurdicks filed a claim forUninsured Motorists benefitswith their auto insurer, theErie Insurance Group. Erie

denied the claim on the basisthat the dirt bike was not anuninsured motor vehicle. Theirpolicy specifically excludedany vehicle designed for useoff public roads.

Time out. Let’s pause aminute. The ISO UninsuredMotorists Coverage –Pennsylvania (stacked or non-stacked) endorsements statethat an “uninsured motorvehicle” does not include “anyvehicle or equipment designedfor use off public roads whilenot on public roads.” In thiscase the dirt bike was on apublic road when the accidentoccurred.

Now, back to the Burdicks. OnJune 22, 2004 they file acomplaint for declaratoryjudgment against Erie. Erieresponded, and both partiesthen filed motions forsummary judgment. On April3, 2006 the trial court grantedsummary judgment in favor ofErie, concluding that theexclusion in the Erie policy didnot violate Pennsylvania’sMotor Vehicle FinancialResponsibility Law (MVFRL).


[ 11 ]

The Burdicks appealed and raised two issues:

1. Does a contractual exclusion fromuninsured motorist coverage for acollision with a motor vehicleintended primarily for off-road useviolate the MVFRL where the lawmakes no provision for such anexclusion?

2. Is a motor vehicle insurance policycontrary to public policy where itattempts to exclude fromuninsured motorist coverage aclaim for injuries suffered in acollision on a public highway witha motor vehicle not intended forhighway use?

On appeal, the Superior Court ofPennsylvania concluded the following:

1. The MVFRL requires that UMcoverage must be offered.

2. The statute provides that UMcoverage shall provide protectionfor persons who suffer injuryarising out of the maintenance oruse of a motor vehicle and arelegally entitled to recover damagesfrom owners or operators ofuninsured motor vehicles.

3. The MVFRL defines an “uninsuredmotor vehicle,” in part, as “amotor vehicle for which there is noliability insurance or self-insuranceapplicable at the time of theaccident.”

4. The MVFRL does not provide adefinition of the term “motorvehicle,” but the legislatureprovided a definition of “motorvehicle” within the broader VehicleCode.

5. The Vehicle Code defines a “motorvehicle” as “a vehicle which is self-propelled except an electricpersonal assistive mobility deviceor a vehicle which is propelledsolely by human power or byelectric power obtained from

overhead trolley wires, but notoperated on rails.”

6. Clearly, the dirt bike at issue falls within the definition of amotor vehicle as defined by theVehicle Code.

Based on the above conclusions, on April 4, 2008 the Superior Court of Pennsylvania reversed the trialcourt’s ruling. The court found that the exclusion contained in the Erie policy which excludes UM coverage for a collision with a motor vehicle intended primarily for off-road use violates Pennsylvania’sMotor Vehicle Financial Responsibility Law.

Erie argued that their policy’s exclusion of motor vehicles primarily intended for off-road use is supported by Herr v. Grier(PA Superior Court, 1996). The Herrcase involved a situation where Herr

was injured when the four-wheeled golfcart in which he was riding overturned.At the time of the accident, the golf cartwas being operated on a golf course.Herr sought UM coverage under his auto policy, which excludedcoverage for vehicles or equipment“designed mainly for use off publicroads while not on public roads.” In this case a panel of the SuperiorCourt concluded that the golf cart was not a motor vehicle within themeaning of the MVFRL because it was not “a vehicle of a kind required to be registered.”

I have no legal knowledge whatsoever,but the opinions in these two cases —Burdick and Herr — appear to me as if the court is talking out of both sidesof its mouth.

Y’all take care!

When there’s a loss, Mike Snare is there.

The minute a policyholder calls with a claim, Mike responds with sympathy, courtesy, and professionalism. And he’s been doing so for 20 years.

That’s reliability.That’s the MBG Experience. That’s reliability.That’s the MBG Experiennce.

Mike SnareMultiline Claims Supervisor

www.mutualbenefitgroup.com

MUTUAL BENEFIT GROUP

Huntingdon, PA

You know who we AREAREs there.

a


ASSOCIATION AT WORK

Back by popular demand …MarshBerry returns to lead IA&B members in a two-day executivemanagement conferencefocused on agencyperpetuation.

Perpetuation is in your hands — positioning & planning for youragency’s futureIA&B to offer first-of-its-kind conference


[ 13 ]


It’s a well-known fact that an aging population operates the independent insurance industry. Thatmeans that agency perpetuation and successionplanning will take center stage over the next few years — and at the inaugural IA&B ExecutiveManagement Conference.

Last October, IA&B brought together over 150 members for a day themed on planning for the future, which included a presentation on agency valuation by MarshBerry. This Oct. 27-28, IA&B once again will host MarshBerry for amember-exclusive event — Perpetuation Is in Your Hands —Positioning & Planning for Your Agency’s Future. Built around member feedback, the program will provide attendees with specific strategies for perpetuation planning.

“Our goal is for the audience to leave … with the knowledge,process strategy and tools to help them define a perpetuationplan,” said Patrick Linnert, executive vice president of Marsh,Berry & Company, Inc.

IA&B members consistently have expressed that the mostprominent roadblocks preventing their perpetuation planningare time, money and getting started.

“This program will tackle all three obstacles,” said Robert“Buc” Cawley, chairman of the Insurance Agents & BrokersService Group. “It requires minimal time out of the office andwill be reasonably priced. What’s more, attendees will walkaway with tips and strategies from the industry experts.”

Additional information about the program will be available via Agent Headlines and on iabgroup.com in the comingmonths.

SAVE THE DATE:IA&B EXECUTIVE

MANAGEMENT CONFERENCE

October 27-28

Eden Resort and Suites

Lancaster, PA

I SCHEDULE OF EVENTS

TUESDAY, OCT. 27

12:30 – 1 p.m. — Registration

1 – 5 p.m. — General session

n State of the Industry and the M&A Environment

n Sales Management Designed toAttract and Fund Perpetuation

n Agency Valuation Methodology

n Characteristics of Agencies thatPerpetuate — Income Statement,Balance Sheet and New Business

5:30 – 7:30 p.m. — Welcome Reception

WEDNESDAY, OCT. 28

7:30 – 8 a.m. — Registration

8 – Noon — General Sessionn Perpetuating the Ownership,

Relationships and Leadership of the Agency

n Financial Building Blocks — The relationship between Valuation and Cash flow

n New Producer Hiring, Training and Retention

Noon – 1 p.m. — Lunch

1 – 3 p.m. — Breakout Session1. Case Study—Valuation and

Financial Modeling of Transactions2. Perpetuation Funding

3 – 4:30 p.m. — Breakout Session1. Case Study — Valuation and

Financial Modeling of Transactions2. Estate Planning

4:30 – 5 p.m. — General Session


The Main Street America Group’srich history began in 1923 whenwe formed our company to serve

the insurance needs of Grangefraternity members in New England.Today, Main Street America serves theinsurance needs of individuals,families and small businesses in 24states. We provide a full line ofcompetitively priced personal linesand commercial lines products andservices, as well as fidelity and suretybond products, and annually writenearly $800 million in premium.

Through our five “A” rated propertyand casualty carriers — NGMInsurance Company, Old DominionInsurance Company, Main StreetAmerica Assurance Company, MSAInsurance Company and Great LakesCasualty Insurance Company, wepartner with more than 1,000

independent agents to providesuperior, personal service to morethan 500,000 policyholders.

As a founding company partner ofTrusted Choice®, Main Street Americais 100 percent committed to theindependent insurance agent, as youare our sole channel of distribution.We strive to meet the needs of ourcustomers (agents), and ourcustomers’ customers (policyholders),better than anyone else in the market.To become our customer andrepresent Main Street America, please visit www.msagroup.com andclick on the “Become a Main StreetAmerica Agent” link.

**A.M. Best’s rating of “A” (“Excellent”) applies to The Main Street America Group. Ratings listed hereinare as of Jan. 1, 2009, are used with permission ofA.M. Best, and are subject to changes by the ratingservice. For more information about ratings, pleaseaccess www.ambest.com.

Insurance Agents & Brokersproudly recognizes The Main

Street America Group as one ofits Platinum Partners. IA&BPlatinum Partners dedicate

the highest level of sponsorshipto our organization.

FEATURED PARTNERThe Main Street America Group

CHIEF EXECUTIVE OFFICERTom Van Berkel, Chairman

President and CEO

CORPORATE HEADQUARTERSJacksonville, Fla.

Regional OfficesGrand Rapids, Mich.

Jacksonville, Fla.Keene, N.H.

Richmond, Va.Syracuse, N.Y.

Claims Service Center Auburn, Mass.

A.M. BEST RATING“A” (Excellent)**

Platinum Profile

“Independent agents have more than

50 percent of the overall market. You

offer your customers choice, expertise

and advocacy. No one else can offer

that. This is why consumers prefer

your distribution channel.”

— Tom Van Berkel, Chairman,President and CEO

Main Street America business management executiveTerry Evert (right) and Knoll Insurance Agencypresident John Knoll (left), Main Street America agent-customer and IA&B member, meet at theagency’s New Cumberland, Pa., headquarters.


WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

DO YOU SEEYOUR NAME?To become an IA&B Partner,

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at (800) 998-9644,

(717) 795-9100 or visit us

online at www.iabgroup.com

to get started.

Listed below are those companies that strongly support the independent agency

system and Insurance Agents & Brokers.Thank you for your continued sponsorship.

PLATINUM LEVELBerkley Mid-Atlantic GroupErie Insurance GroupHarleysville InsuranceInsurance Agents & BrokersService Group IncMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupPenn National InsuranceSelective Swiss ReThe Main Street America GroupTravelersUtica National Insurance Group

GOLD LEVELOhio CasualtyProgressive

SILVER LEVELAegis Security Insurance CoAmerican Mining Insurance CoCumberland Insurance GroupFrederick Mutual Insurance CoHarford Mutual Insurance CoJuniata Mutual Insurance CoMMG Insurance CompanyPrivate Client GroupPSBA Insurance TrustThe Motorists Insurance GroupWestfield InsuranceZenith Insurance

BRONZE LEVELAAA Insurance

Agency Insurance Company

Allied Insurance

Briar Creek Mutual Insurance Company

Builders Insurance Group

Capitol Insurance Company

Chubb Group of Insurance Companies

Companion Property & Casualty Group

Countryway Insurance Company

Encompass Insurance

Foremost Insurance Group

Friends Cove Mutual Ins Company

Goodville Mutual Casualty Company

Grange Insurance Companies

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Mutual Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn Millers Insurance Company

Penn Prime Municipal Insurance

PMSLIC Insurance Company

Reamstown Mutual Insurance Company

Rhoads & Sinon LLP

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Mutual Service Office Inc

The Philadelphia Insurance Companies

Tuscarora Wayne Mutual Insurance Company

UPAC Insurance Finance

Primary Agent August 2009


INDUSTRY NEWS

Erie Insurance talks shopErie Insurance representatives attended the May IA&B Board of Directors meeting to discuss

the company’s unique offerings, as well as its commitment to the independent agency system,

plans for growth and legislative priorities. Here, IA&B provides a recap.

(L to R) Robert “Buc” Cawley, IA&B’s Chair; Kathleen Glattly, IA&B’s Vice Chair; Tim Maher, Erie Insurance Regional Vice President; and Mark Dombrowski, Erie Insurance Manager of Government Affairs.

G10463_16-19.qxp:August09Primary 7/20/09 4:54 PM Page 16

[ 17 ]


Erie is committed to the independent agencysystem,” opened Tim Maher, regional vicepresident. “It is the only way we do business andthe only way we plan to do business. We areconvinced that independent agents, with apresence in local communities, building

relationships with customers, are the best distribution modelthat exists.”

Erie began in 1925 as a Pennsylvania auto insurer and,through the years and a network of independent agents, hasgrown its operations to include auto, home, business and life.Today, Erie is the 21st largest P/C group, 16th largest autowriter and 121st largest life insurer.

Growth aspirationsThe regional insurer has goals for growth and profitability, butnot extensive expansion.

“We have no aspirations to be in all 50 states,” said Maher. “Weare very comfortable being a big player in a small market.”

Maher offered that the company intends to grow to remainprofitable and poised for the future and explained, “The key toour growth is helping our agencies grow.” Rather than specificquotas, Erie works to become their preferred insurer — a goalthe carrier has attained with over 80 percent of its agencies.

__________________________________________________________

“Erie is committed to the independent agencysystem. It is the only way we do business and

the only way we plan to do business.”

__________________________________________________________

“We ask that they give us a chance to become their leadcarrier,” he continued. “We want to earn the right to be thetop carrier in every agency that we do business.”

Erie also plans to make 127 appointments in 2009, with six ofthem in Maryland and another six in Pennsylvania.

“We’re proud of the fact we are one of the few carriers whowill help people start scratch independent agencies,” saidMaher. “Over the years we have developed what we believe isa niche in the marketplace: letting people start business andletting them get up and off the ground.”

Legislative prioritiesLike the rest of the industry, Erie has its eye on legislation.

The carrier is monitoring safe-driving initiatives in Maryland.In Pennsylvania, several bills are of note, including one thatwould require policies to be translated into various languagesand another, HB 400, which would define more clearly an

E“

Mark Dombrowski, Erie Insurance Manager of Government Affairs, talks about

carrier relations during the IA&B board meeting.

Erie Insurance by the numbers

Erie Insurance works with

over 9,000 licensed agents at

more than 2,000 independent

agencies throughout 11 states

(including Maryland and

Pennsylvania) and in

Washington, D.C. In over

80 percent of those agencies,

Erie is the No. 1 carrier.

Tim Maher, Erie Regional Vice President, addresses the IA&B Board of Directors.


independent contractor in theconstruction industry. (IA&Balso is tracking HB 400 andworking to ensure that it isfree of any provision thatpotentially could hold agentsliable for improper coverage,particularly workers’compensation.)

“In the area of life insurance,we have a general difficulttime getting products tomarket in Pennsylvania,”continued Erie InsuranceGovernment RelationsManager Mark Dombrowski,who reported that InsuranceCommissioner Ario is aware ofthe issue.

On a federal level,Dombrowski discussedsystemic risk and the need toeducate legislators.

_____________________________

“We are very comfortablebeing a big player in a

small market.”_____________________________

“Perhaps there should besome regulation and somemonitoring of what’shappening in the insuranceindustry, but we want to makesure [legislators] understandthat it wasn’t the insuranceindustry that caused all of theproblems,” he said.

Finally, Dombrowskicommented on Erie’sopposition to the repeal of theMcCarran-Ferguson Act: “Wethink the sharing ofinformation actually helpssmaller companies to competeeffectively, helps the overallindustry and helpsconsumers.”

Agency supportThe Erie representativeswrapped up their presentationby discussing industry hottopics, including economic,marketing and perpetuationchallenges.

[ 18 ]

INDUSTRY NEWS


“It is a tough time to own a small business. Creditmarkets are tight. Consumers are price shopping.There is not as much discretionary income,” saidMaher, who went on to cite the value of branding.“What is it about your agency that sets you apart?What is about your agency that makes youdistinctive? What is it that you want a consumer toremember about your agency?”

Maher also discussed the ways Erie assists itsagencies – from monitoring the ease of doingbusiness and lightening the administrative burdensfaced by owners so they can remain in a sales role,to helping even the smallest agencies have apresence on the Web and piquing young people’sinterest in the industry.

“We won’t turn our back on people who haveproven they’re great insurance agents and greatbusinesspeople,” said Maher of Erie agents.

[ 19 ]

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The Harford Mutual Insurance Companies200 North Main Street Bel Air, Maryland 21014-3544


PERPETUATION

Kathleen Mullins Shoudtgets it naturally. Sherepresents one of five generations that have found a career in the independentagency system.

Thicker than waterInsurance runs in the blood for five generations


[ 21 ]


Kathleen’s great grandparents owned anindependent insurance agency in Stroudsburg,PA, which is where her father got his start in theindustry after leaving the U.S. Marine Corps in1956. Then in 1972 her father opened theStroudsburg, PA-based Harry A. Mullins

Insurance Agency — the agency that Kathleen now managesand that employs her daughter, Katie Ace.

Family tiesKathleen’s family history showcases the struggles andsuccesses that can accompany a family-owned business.

Her father, Harry Mullins, became enamored with the world ofinsurance when he went to work for his grandfather. But afterHarry’s father joined the business in 1957, tensions eventuallyran high, and as in many family businesses, the stresses ofjoint ownership and management resulted in conflict.

So in 1972, Harry left E.A. Bell Agency. He borrowed $135from his daughter Kathleen’s savings account and started hisown agency from his dining room. It was a leap of faith for aman with five young children to support.

But Harry’s agency brought out the best in the family. His wife,who had no industry experience, joined him, and throughoutthe years, they built a thriving business and are now thrilledto pass it through the family tree.

“A lot of families don’t get along, but we’ve never had aproblem with that,” says Kathleen, of the working relationshipamong her, her parents and her daughter.

_________________________________________________________

Kathleen graduated with a degree in business education and never intended to stay in her hometown,

let alone work for her father’s agency. But the agency eventually called to her when she started

a family and sought part-time work.

_________________________________________________________

Begrudging beginningsKathleen graduated with a degree in business education andnever intended to stay in her hometown, let alone work forher father’s agency. But the agency, which first provided herwith employment during summers in high school and college,eventually called to Kathleen when she started a family andsought part-time work.

She began filing. Eventually she earned her license andentered the personal-lines side of the business. Later Kathleen

Kathleen Mullins Shoudt (right) with her parents, Harry and Patricia Mullins, who began theHarry A. Mullins Insurance Agency.

“Within 10 years, 40.3 percent

of [family] business owners

expect to retire…. Of these,

fewer than half of those

expecting to retire in five

years and fewer than a third of

those expecting to retire

between six and 11 years have

selected a successor.”

– 2007 American Family BusinessSurvey, conducted

by MassMutual, Kennesaw State University and

the Family Firm Institute

KG10463_20-25.qxp:August09Primary 7/20/09 4:55 PM Page 21

added commercial lines.Today she owns 40 percent ofthe agency and manages it ona full-time basis.

Succession plans“My parents had four girls andthen one boy,” says Kathleen.“The plan was always for mybrother to take over. Therewas no talk of the girls.”

However, after Kathleenshowed interest in thebusiness, her parents workedwith an attorney and put inplace a plan to gift her and herbrother gradually with apercentage of the agency withthe intention that theyeventually would buy out theirsisters and then co-own andoperate the agency.

After he graduated fromcollege, Kathleen’s brotherbegan working with her at theagency. Within three years heleft, only to return briefly afew years later with nointerest in ownership ormanagement.

So it was back to the drawingboard for Kathleen’s parents.They met with their attorney,accountant and life-insuranceadvisor, and they devised anew strategy for turning theagency over to her.

___________________________

Harry’s agency brought out the best in the family.

He and his wife built athriving business and are

now thrilled to pass itthrough the family tree.

___________________________

Kathleen received a certainpercentage of ownership eachyear until she reached hermaximum of 40 percent. Hermother now owns 42 percentand her father 18. Eachparent’s ownership willtransfer to the other parentupon death, and once they areboth deceased, their 60percent will be divided amongKathleen and her four siblings.Life insurance is in place toassist Kathleen in buying outher sisters and brother.

Gradual transitionKathleen’s mother is retiredfrom the business, but herfather has maintained his“semi-retired” status for thepast 12 years.

“He occasionally meets withlarger clients he has knownfor years,” says Kathleen. “Hestill looks over incomestatements, producer reports,balance sheets, etc. eachmonth, but he’s not activewith writing or servicing.”

Instead, another generation ofthe family has taken on thoseduties. Kathleen’s daughterbegan working there fouryears ago as a receptionisthandling claims and mail.Today she is licensed andworking in personal lines.

“We haven’t formallydiscussed if my daughter willtake over one day, but I wouldlike to see that happen,”Kathleen shares. For now, sheis concentrating on the currenttransition and ensuring thecontentment of her employeesand customers.

“My parents and I are all glad to see that the agency continues to be perpetuated.”

[ 22 ]

PERPETUATION

Approximately 30 percent of

family-owned businesses

transfer to a second

generation. Twelve percent

survive to a third generation,

and only 3 percent reach a

fourth generation.

– Joseph Astrachan,

Family Business

Review editor


JEFF YATES, ACTEXECUTIVE DIRECTOR

Jeff Yates is executive director of

the Agents Council for

Technology (ACT) which is part

of the Independent Insurance

Agents & Brokers of America.

Jeff can be reached at

[email protected]. ACT

has posted further information

on many of the subjects

discussed above at

www.independentagent.com/act.

This article reflects the views of

the author and should not be

construed as an official

statement by ACT.

Primary Agent | August 2009 TechnologyU P D A T E

[ 23 ]

Independent agents andbrokers should take timeperiodically to think about thetrends that are most likely toaffect the future of theirbusinesses:

w How do I identify thetrends that have thehighest degree ofcertainty?

w Do the trends createopportunities for myagency to begin to takeadvantage of today, ordo they represent threatsthat I had better start toprepare myself for now?

w What are the two orthree things the leaders

of my agency all agreewe must do today tomeet these trends andcontinue to improve ourbusiness?

Under the leadership of ourStrategic Future Issues WorkGroup, ACT has beenencouraging this type ofdiscussion on an industry levelby the agents, brokers,carriers, vendors, user groupsand industry associationsparticipating in ACT. Thediscussions themselves havebeen very healthy to get theindustry focused on the futureand moving toward acommon vision. ACT’s work isongoing, but I’d like to give

the reader a flavor of thediscussions we have beenhaving, and why I believethese trends representprimarily a positive forindependent agents andbrokers, provided they have aculture that is willing toembrace change and seekcontinuous improvement.

Trend typesNoted technology futuristDaniel Burrus, author of“Technotrends,” provided ACTwith good methodology fordistinguishing between hardand soft trends. Hard trendsare usually driven bytechnological, demographic orlegislative/regulatory changes

IDENTIFYING KEY TRENDS THAT DRIVE REAL OPPORTUNITY


TECHNOLOGY UPDATE

[ 24 ]

that are permanent and often transformthe reality with which we must deal. Theemergence of the Internet, cell phonesand globalization are all good examples.These trends have changed our realityforever. We have the highest degree ofcertainty about hard trends, and theyare the most important trends fororganizations to consider when they aremaking investments for the future.

There are two categories of soft trends.Trends known as soft trends Is areapparent trends today, and we thinkthey will continue to occur. But they are not a certainty. Soft trends IIs arethose that are apparent today, but wedo not think they will continue to occurin the future. The prediction of acontinuing federal government budgetsurplus was a good example of a softtrend II, upon which decisions shouldnot have been based.

Technology trendsBurrus spends a lot of time thinkingabout trends, and he believes thattechnology will continue to transformour reality at an accelerating pace. Hepoints to the fact that computing powercontinues to double every eighteenmonths (Moore’s Law), whilebroadband connectivity, wireless andlow-cost storage all continue to becomemore widespread.

Consumers increasingly will turn to theInternet as their first source to getinformation and be attracted tobusinesses that give them value addedservices online. Competitors — both thedirect companies and innovativeagencies — will move to the nextgeneration of Web site that marriesvoice and video with the graphics,enabling customers to access acustomer service representative live

over the Internet, as well as to see andtalk to him/her through the computer.

Many independent agencies run the risk of ceding the Internet to theircompetitors by not focusing on thisarea, at the very time the Web isbecoming the “go to” resource for alarge percentage of the public. It isimportant for agents to develop a Web site strategy and to offer ameaningful Web site presence. Theyalso need to learn more about how they can use search-engine optimizationand other Internet marketing techniquesto attract business to their site and totheir agencies.

Demographic trendsThere are also many demographicsrelated hard trends occurring. A bigpercentage of baby boomers will reachthe traditional retirement age over thenext ten years. We know this is going to happen. We also anticipate that thebaby boomers will differ from priorgenerations by continuing with active lifestyles into retirement, often re-engaging with new work, includingpart-time positions, in-home businessesor volunteer work. This latter predictionis a soft trend I, and its implications arethat baby boomers will continue to beimportant insurance consumers formany more years.

During this same time frame,Generations X and Y will be in theirprime child rearing years, owninghomes and running businesses. Theywill have needs similar to those thattheir parents had at this stage of theirlives, but they are likely to have somedifferent expectations from theirparents, which service providers willhave to ascertain and deliver. Weanticipate that these consumers —

having grown up with computers — willlook for agencies which are fullparticipants in the networked world andare readily accessible to them 24/7 toaccommodate their busy lifestyles.

We will also see the United Statescontinue to become more ethnicallydiverse, and there will be significantnumbers of single parent and othernon-traditional households. Intraditional households, it will continue tobe the norm for both spouses to beworking, and women will increasinglyhold managerial positions. In thisenvironment, time will continue to be inshort supply for most consumers andbusinesses, and they will favor businessrelationships that can save them time,rather than cost them time. Agents, ofcourse, are in an excellent position tosave their customers time.

Relationship opportunitiesOne point Burrus made struck me as a particular opportunity forindependent agents and brokers: In spite of the growing pervasiveness of technology, ours remains essentiallya human economy that is based uponrelationships. Trust continues to lie atthe heart of all effective relationships,and agents are well positioned to build trust relationships with theircustomers. Today, more than ever,however, trust must be earned, because of the high degree of publicskepticism, based upon people’sperception that many businesses havenot lived up to the promises they havemade, whether to customers,employees, stockholders or insureds.

Burrus was very excited about thedirection in which many agencies areheaded to transition their staffs into therole of trusted advisors who actively


work on nurturing their relationships withtheir customers. These agencies are inthe process of using new technology toautomate their processing functionswherever possible so that they free uptheir service personnel to perform thisnew role. These agencies are alsobeginning to track the preferences ofthese customers including how they wantto be communicated with and whatcustomized services they want to receive.

We urge agents to seize this opportunityto strengthen their customer relationshipsby specifically focusing on building thelevels of trust they have with them. Towhat extent do current communicationsand procedures, as well as contemplatedactions, build client trust or detract from

it? Agents should consider addressing thetrust issue directly with their customers,asking them what it would take to movetrust to the next level.

We hope this article will serve as astarting point for the reader to identifythe hard trends that promise to be themost significant for his or her particularagency, so that the agency can thendevise the appropriate must-do strategiesto capitalize on the opportunities createdby these trends, while fully preparing tocounter any accompanying threats.

Commonwealth Insurance Co . . . . . . . . . . . . . .3

EMC Insurance Companies . . . . . . . . . . . . . . .IFC

General Casualty . . . . . . . . . . . . . . . . . . . . . . . . .1

Harford Mutual Insurance Co . . . . . . . . . . . . . .19

IA&B Series Ads . . . . . . . . . . . . . . . . . . . . .18, IBC

IA&B Partners Program . . . . . . . . . . . . . . . . . . .15

Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC

KnightBrook Insurance Co . . . . . . . . . . . . . . . .19

Millers Mutual Group . . . . . . . . . . . . . . . . . . . .28

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .11

Preferred Property Program . . . . . . . . . . . . . . .25

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If you would like to place a

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to (717) 795-8347, and we will take

care of the rest.

[ 25 ]


PERPETUATION

Inside trackIndependence through employee ownership

As Murray Risk Managementand Insurance’s two primary stock holders reached their mid- to late 50s, they began planning. Their goal? To perpetuate the agency and maintain itsindependence.


[ 27 ]


It was always our goal to stay independent,” explains RickRankin, president and CEO of Murray Risk Managementand Insurance. “We looked for ways to facilitate that.”

So principals of the Lancaster, Pa.-based agency beganresearching their options. They did their due diligence, and in1994 created an employee stock ownership plan (ESOP).

StrategyThe ESOP originally bought 30 percent of the primary stockholders’ stock. Within five years, the employees ownedanother 15 percent, and today the agency’s 135 staff membersown 53 percent.

“In our particular case, it was a smooth transition,” saysRankin. “It allowed us to retire quite a bit of stock and do it ina way that wasn’t detrimental from a financial standpoint anddidn’t put pressure on our other shareholders.”

As with many ESOPs, the Murray plan originally was aleveraged ESOP, which meant the company borrowed moneyto buy out shareholders.

___________________________________________________________

“It takes a lot of work to promote ESOP as the culture of a company,” shares Rankin.

“It takes not only management but all employees to buy into the concept.”

___________________________________________________________

Today, the money is paid off, and the ESOP sustains itself. Anannual stock valuation determines Murray Risk Managementand Insurance’s fixed stock value for the following year.

“Our staff receives a statement each year that explains thevalue of the ESOP,” explains Rankin. “They know what’s there,and when they retire, they are paid based on the stockvaluation.”

ManagementA committee, comprised of nine employee-ownersrepresenting each of Murray Risk Management andInsurance’s four locations, is responsible for educating fellowemployee-owners about how ESOPs work and what valuethey bring to employees and clients.

“It takes a lot of work to promote ESOP as the culture of a company,” shares Rankin. “It takes not only managementbut all employees to buy into the concept.”

He advises that an ESOP must operate more transparentlythan a private company: “You really have to let employees

I“

ESOP statistics*

w There are approximately11,500 ESOPs (covering 10million employees) in place in the United States.

w At least 75 percent of ESOPcompanies are or wereleveraged, meaning they usedborrowed funds to acquire theemployer securities held by theESOP trustee.

w Approximately 4,000 ESOPcompanies are majority-ownedby the ESOP, whileapproximately 2,500 arecompletely owned by theESOP.

w U.S. ESOPs’ assets reached anestimated $800 billion at theend of 2006.

w A majority of ESOP companieshave other retirement plans,such as defined benefitpension plans or 401(k) plans,to supplement their ESOP.

* Courtesy of The ESOP Association


know where you’re at from anumbers standpoint. If youaren’t open and willing to share,you won’t recognize thebenefits.”

ConsiderationsRankin stresses that an ESOP is not for everyone.

“It’s for primary owners whose major goal is internalperpetuation and taking care of employees and clients,” he explains.

For those who are interested, he advises seeking out andtalking with other business that have adopted ESOPs and meeting with an attorney and accountant todetermine the best way to move forward.

[ 28 ]

PERPETUATION

805 N. Front St., Harrisburg, PA 17108

Success

YourUnderwriting

SM

GIVING PROPERTY OWNERS CONFIDENCE TO BUILD UPON.

Years ago, Mike Serluco had a national company insuring his growing property development business. “But they go the way the wind blows,” he says. Then Independent Agent Don Kingsbury, of Christian Baker Insurance Agency, Lemoyne, suggested a local insurer with a stronger commitment to building owners – Millers. “It’s very, very important for an investor to have an insurance partner, and that’s what I call Millers,” Mike says. With the few insurance claims he’s had, “Bing, bam, boom – it’s done and taken care of.” Adds Kingsbury, “With Millers, they actually listen to what you have to say. And not only do they know this industry, they offer package policies at a good price, and they back it up with excellent claims service.” Smart business people, independent agents and Millers...truly partners in protection.

ESOP ResourcesThe ESOP Association

(866) [email protected]

The National Center forEmployee Ownership

(510) [email protected]

The Employee Ownership Foundation(202) 293-2971

info@employeeownershipfoundation.orgwww.employeeownershipfoundation.org


PROTECT THE BIGGEST ASSET YOU HAVE WORKED A LIFETIME TO BUILD – YOUR AGENCY.

2 0 0 9 E X E C U T I V E

MANAGEMENTCONFERENCEPERPETUATION IS IN YOUR HANDS -

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to guide you through the perpetuation

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Visit iabgroup.com for program details.

OCTOBER 27-28, 2009

LANCASTER EDEN RESORT

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Introducing a new

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Primary Agent - August 2009 - PA Edition

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