Create your ideal agent education program

March 3, 2011

By Laura Mazzuca Toops, PropertyCasualty360.com

Believe it or not, I'm still getting mail about some blogs and articles that looked at agent education. (It all started here: "Agents: Are you smarter than a plumber?")

I won't reiterate all that was said, but the core discussion focused on why in-depth agent training requirements and basic education programs are lacking in our industry. (Before anyone starts yelling, I'm not overlooking or denigrating professional designations and all the fine education programs that are currently available. This question focuses on independent insurance agent "basic training.")  read more..

Helpful Reminders…

Commercial Lines............

New Policies – If you don’t receive the policy or a reply from Underwriting within two weeks from submitting an account for issuance, please remember to check your work queue or contact your underwriter.

Account Declination – When entering an on-line submission, if you receive a “declination” of the risk, do not hit the “decline” button. Instead, please either refer the account to your underwriter for further consideration or close out the request. If you have any questions, please give your underwriter a call.

Cloud computing evolves

In the past 15 months, more agents are "doing fine on Cloud Nine"

American Agent & Broker March 2011
By Rick Gilman, APR, CMP

I’m pretty sure that back in the late ‘60s when The Temptations first released the song "Cloud Nine," the lyrics "I’m doing fine on Cloud Nine" weren’t referring to their perceived value of cloud computing. More likely, it described how people dealt with the problems of being poor and black in America. This psychedelic, soul-style music was a sign of the times.  read more..

Virtual Viewpoint: Assessing the Carrier/Agent Relationship

March 11, 2011 By Rebecca C. Amoroso

What is the status of the carrier/agent relationship? Are more property/casualty insurers looking at direct sales? What are agents/brokers doing to assess their end of the relationship?    read more..

ROCKFORD INSURANCE AGENCY says: THINK SPRING!

We are getting close to the time of year when many people buy ATV’s, Motorcycles, and Boats. The Rockford Insurance Agency offers a great option for these stand alone policies. The program offers many discounts and coverages like total replacement cost on newer motorcycles and boats for your favorite toys!!

Also coming this spring — DISAPPEARING DEDUCTIBLE!

Stay tuned for more exciting details to come.

Let us also help you with some of our preferred classes of business:

Animal Shelters
Bars & Taverns
Caterers
Christmas Tree Farms
Clubs (Eagles, Chamber of Commerce)
Commercial Auto (sand & gravel)
Counseling Services
Day Care Centers (children & adults)
Dental Assistants (Professional)
Detectives
Exercise & Fitness Centers
Fishing & Hunting Guide
Homeowner Associations
Hunting Preserves
Liquor Liability (several markets)
Martial Arts Centers
Message Therapists (GL & Professional)
Motorcycles, ATV’s,Golf Carts
Nurse’s Professional Liability
Pick Your Own Apple Orchards
Professional Liability (many classes)
Restaurants
Senior Centers
Skating Centers
Umbrella’s (both personal & commercial)
Vacant Property (personal & commercial)

Give us a call or e-mail us about your risk and let us give you a quote today!

Susan Leoni Ext. 267 sleoni@rockfordmutual.com
Nicole Hamilton Ext. 292 nhamilton@rockfordmutual.com

Ratings Could Suffer For Single-Model Users, A.M. Best Analyst Says

National Underwriter P&C March 21, 2011 By Chad Hemenway, PropertyCasualty360.com

A change to a catastrophe model, like the latest revision announced by Risk Management Solutions, can influence the level of reinsurance purchased by companies and impinge on the rating process.

“If a company relies on only one model, it could have a big impact on its balance-sheet strength,” said Thomas Mount, assistant vice president at rating agency A.M. Best Co.

Assuming a company buys reinsurance up to the minimum required for a 1-in-100-year wind event, and it used only one model whose results changed greatly after revisions, a company’s overall financial strength may suffer, he said.  read more..

Bill Kliethermes Retires

The Kliethermes Family

Thank You, Bill.

Revisions to Homeowners Program

Effective February 1, 2011 for New Business and
March 1, 2011 for Renewals

New Items We will now offer Equipment Breakdown Coverage as an optional endorsement, please refer to our manual for more details.
Homepac Endorsement will now be eligible in Select as well as Preferred program. Also, water back up coverage on Homepac endorsement will now be stacked with any other purchased water back up coverage on the policy.
HO-4/Auto discount - We will now discount HO-4 premium if the corresponding automobile is also insured with Rockford Mutual.
Rockford Homeowners is now available on EZLynx in Illinois.

Rates The overall impact of the revision for the average policy: Illinois +5%, Wisconsin +8%, Missouri +17%, Indiana +4%.
Revised Homeowners Loss Surcharge to vary by years renewed and forgive losses less than $1,000.
Adjusted Coverage A relativities to align with marketplace for middle market property.
Territory base rate adjustments.

Homeowners Manual We will not be distributing hard copies of our updated manual with this notice. Please visit our website at http://www.rockfordmutual.com/ for an updated copy of our manual or you can acquire a hard copy by contacting our Supply Department at extension 331.

Miscellaneous As a result of recent technological advancements in our homeowner policy administration process, we will no longer be providing photo reimbursement. Our easy to use system allows you to attach electronic photos directly to our website. This change will also help RMIC reduce new business acquisition cost and in turn keep our rates competitive.

Homeowner premium is reduced by an additional 25% when packaged with automobile!

Commercial Umbrella now available in Missouri 4/1/11

GREAT NEWS!!

Commercial Umbrella is now available in the State of Missouri effective 4/1/11. Please contact your Underwriter or Marketing Rep for details.

ROPAC/CONPAC “Lunch & Learn” webinar

Please join us to learn what's new!

Who: Open to all RMIC Commercial Agents & CSR’s

What: Rockford Mutual Insurance Company is releasing a ROPAC and CONPAC update effective 5/1/11 for new business and 6/1/11 for renewals.

When: Thursday, March 24th from 11:30 am – 12:30 am (CST)

What do I do: You’ll need to register to attend this webinar using the
link indicated below.

Upon registration, you will receive an email directing you how to participate on the 24th of March. Your marketing rep will also have instructions for webinar registration.  --click here to register--

Help your customers through the claim process and avoid later problems.

 February 2011 By Matthew S. Marrone, Esq.

Sometimes people just don’t follow instructions. Even though every insurance policy clearly instructs the insureds on where and to whom a claim should be reported, you probably have had insureds contact you instead of the carrier to report a claim. How should you respond?
 

The first option is to refer the insured to the policy and advise him to report the claim in accordance with policy instructions. But there are risks to this approach. If your client doesn’t follow through and report the claim or misunderstands your instructions and the claim is later denied, he will blame you. If you follow this approach, document your file with a letter to the insured advising him to follow the policy instructions.  read more..

Words from our new President and CEO

This year, Rockford Mutual Insurance Company celebrates our 115th year. Since its beginnings, the company has carried on a proud partnership with our independent agents and farm mutuals. Our goal is to provide the very best service possible and to be your choice in companies.

As I begin this new role, I would like to share my thoughts. Although 2010 will come in with a combined loss ratio of just over 106, we were able to add to surplus and had solid premium growth. There is still great opportunity for profitable growth, and we intend to earn your good business.

Our focus is on putting the experience of 2010 behind us and returning to a combined loss ratio under 100 percent. We recognize the market is not turning yet, and don’t see that happening this year in commercial lines. We also recognize that we must grow policy count and surplus along the way.

A company is only as good as the people that work there, and Rockford Mutual has a fantastic team to help you. That is one of the strengths that we will leverage to work with you to help you be more successful – despite the market. We have knowledgeable, experienced underwriters, great claims service, a solid portfolio of products and associates that want to help you.

In closing, I want to say that It has been a pleasure working with Bill throughout this transition. As you know, his official retirement date is March 31st. We all wish Bill the very best in his retirement and appreciate the many contributions and sacrifices he has made in the success of Rockford Mutual.

Thank you for your support,

Joseph DeChatelets
President/CEO

An Analysis of H.R. 1063 and Its Effect on Workers’ Comp

The “Strengthening Medicare and Repaying Taxpayers Act of 2011” Addresses Insurance Payment Issues

March 21, 2011 By Rafael Gonzalez

More changes are in the works regarding Medicare secondary payer rules and workers’ compensation, and they have earned the support of major insurance trade groups including the American Insurance Association and the Property Casualty Insurers Association of America.  read more..

Revisions to Businessowners Program

Effective: New Business 5/1/2011, Renewal Business 6/1/2011

We have reviewed our current business and will be implementing a slight rate increase for new and renewal business. This rate change will vary by customer.

ROPAC

1. We have reviewed and reduced rates up to 20% for Fast Food, Limited Cooking, Bed & Breakfast and Self-Storage in all 4 states. We feel these changes will make Rockford a more competitive option.

2. Minimum Premiums are being increased to $350.

3. Back Up of Sewers or Drains – Will be revised to offer 2 limits for new business: $25,000 and $50,000. Existing business will remain at current limit except those policies above $50,000, they will be capped at $50,000. Rates will also be increased.

CONPAC

1. We are introducing a Contractors’ Installation, Tools, and Equipment Coverage Endorsement. The endorsement provides coverage for Contractors’ Installation, Tools and Equipment. Basic coverage limits of $5,000 are included, except individual tools in excess of $2,000 need to be scheduled. Higher limits are available for an additional premium. Premium (Basic Coverage): $125

2. Minimum Premiums are being increased to $350.

3. We are adding 2 new classes- Carpentry-Interior (91341) and Janitorial Services (96816)

Manuals

We will not be distributing hard copies of our updated manual with this notice. Please visit our website at www.rockfordmutual.com for an updated copy of our manual or you can acquire a hard copy by contacting our Supply Department at extension 331.

Based on our analysis of the current marketplace we feel that we will continue to remain a competitive option for your new business. We strongly value our partnership with you and are genuinely committed to earning your business. Thanks for a positive year in 2010 and we look forward to continued growth in 2011. If you have any questions, please feel free to contact your underwriter or marketing representative.

Workers Compensation Coverage

Do you have your quote opportunities ready for our review? Do you have a ROPAC account that you’d like for Rockford Mutual to consider the work comp coverage? Attach the Acord applications to current hard copy loss runs and send to your Commercial Underwriter today.

 Our agents will have the power to utilize our company website to create a “premium indication.” If initial pricing looks favorable, the entire submission can be completed on-line and submitted to your Commercial Underwriter for review.

 Workers’ Compensation premium written with Rockford Mutual Insurance Company will apply towards profit sharing calculation.

 8% flat commission for all work comp accounts up to $100,000 in premium.

 All accounts will be underwritten at the “desk level.”

 Many acceptable classes of business available…Appetite Guide is being finalized.

Important Commercial Reminders

Even during this very challenging insurance marketplace, our agency force has again outperformed the industry and helped Rockford Mutual Insurance to grow. As we focus on the need to grow our business “profitably,” now is a good time to re-enforce two key “front line” underwriting principles:

· Vacant Buildings – Vacant buildings are becoming more and more common in our society. Not only do unoccupied properties lead to higher risk of theft and vandalism, they are also more prone to frozen pipe/water damage losses in the winter. It’s important to remember that in order to qualify for coverage in any of our commercial programs, occupancy for apartment or condominium buildings must be 50% or better at minimum. This information should be asked to all prospective insureds on new business submissions as a part of the underwriting process. If the occupancy rate is less than 50%, coverage should not be bound and any exceptions will require approval from your underwriter. For all accounts with coverage already in force, you should notify us as soon as you become aware of properties that do not meet this guideline. Your commercial underwriter will work with you to determine appropriate action.

· General Contractors – Our appetite for contracting operations have been closely aligned with the classes of business that fit into our CONPAC program. This program offers a diversity of business operations that allow you to insure small artisan contractors with Rockford Mutual Insurance Company. It is important to remember that General Contracting operations do not fit within any of our programs. When conducting frontline underwriting on these operations, pay close attention to the amount of business that the applicant is subcontracting out to other entities. If the total amount of their receipts exceeds 25% from work that is subcontracted to others, they are considered a “General Contractor” and do not qualify for coverage. We have enhanced our automated system to make this question more visible and have added a separate question to our self-audit forms to clarify insured’s operations.

It is through your support that we will mutually create a long-term, profitable book of business. It’s as important that you protect your own agency’s loss ratio as well as the results for Rockford Mutual Insurance Company. We appreciate your commitment to RMIC and are happy to answer any questions that you may have.

Contributed by:
Joe Flynn, CPCU, AU, CRM

Six Ways to Keep a Client’s Experience Mod Under Control

Wednesday, March 16, 2011

Many agents are not fully aware of the enormous influence the experience modification plays and, more importantly, how to help a client manage it to the lowest permissible point. Here’s a checklist that can help agents better serve their clients. .. read more..

A message from commercial lines…...

Our struggling economy has impacted many of us  in different ways. Unemployment and foreclosure rates are at an all time high. It’s not uncommon to see people transitioning from their current communities in search of better opportunities. 

At Rockford Mutual Insurance Company, we work with our agency partners to insure many apartment and condominium risks. These commercial accounts form an important piece of our book of business. With so many people being displaced, now is a good time to  remind everyone of our underwriting occupancy guidelines. 

In order to qualify for coverage  in any of our commercial programs, occupancy for apartment or condominium buildings must be 50% or better at minimum. This information should be asked to all prospective insureds on new business submissions as a part of the underwriting process. If the occupancy rate is less than 50%, coverage should not be bound and any exceptions will require approval from your underwriter. For all accounts with coverage already in force, you should notify us as soon as you become aware of properties that do not meet this guideline. Your commercial underwriter will work with you to determine appropriate action.  

As always, we understand that there may be a compelling reason to make a decision outside of the guidelines and agree to consider all elements of the situations before making a judgment. We appreciate your continued support.

ROCKFORD INSURANCE AGENCY, INC.

 Here are some classes we’d like to write for you:

-Amusement Centers
-Athletic/Sports Camps/Leagues
-Beauty Salons with Tanning
-Bowling Centers
-Clubs (VFW, Eagles)
-Concessionaires
-Day Care Centers
-Golf Courses
-HOLE-IN-ONE EVENTS
-Homeowner/Condo Associations
-Resorts & Campgrounds
-Special Events of all types

SPECIALTIES:
-Directors & Officers Coverage
   -Condo Associations
   -Churches
   -Libraries
   -Various Non-Profit groups

-Professional Liability for many classes

And much more.  Give me a call or
Email me about your risk.

Susan Leoni:  Ext 267 or   sleoni@rockfordmutual.com