THURSDAY, JULY 1, 2010 

                                                Big “I” National News


Big “I” Government Affairs
Big “I” Joins Forces with Other Producer Groups in Health Care Law Implementation
Letter to NAIC gives suggestions on Medical Loss Ratio definition.

This week, the Big “I” took the lead on a letter to Commissioner Jane Cline, National Association of Insurance Commissioners (NAIC) president, outlining their recommendations and concerns as the organization she leads has been tasked with defining the “activities that improve health care quality” as part of the Medical Loss Ratio (MLR) definitions in the new health care reform law.

The letter says:
“We strongly support the goals of reducing care costs, providing better value for consumers, and improving health outcomes for patients—and our organizations are concerned because the draft definition has so far failed to account for the wide spectrum of insurer activities that contribute to better health outcomes and care delivery efficiency. We fear the adoption of a narrow and static definition will adversely impact spending on certain important health plan activities. If the definition is improperly crafted, discourages or precludes the development of new innovations over time, or excludes activities that both improve care quality and also help contain treatment costs, then the quality of care delivery will deteriorate and costs will surely increase.”

In addition to the Big “I,” the letter was signed by the National Association of Health Underwriters (NAHU), the Council of Insurance Agents and Brokers (CIAB) and the National Association of Insurance and Financial Advisors (NAIFA). Collectively, these groups represent more than 500,000 professional health insurance advisors, agents, brokers, consultants and employee benefit specialists. This letter is part of their joint continuing efforts, as a coalition called the Health Insurance & Broker Alliance, to voice the important role of agents and brokers in the sale and delivery of health insurance.  

Click here to read the full text of the letter.


Big “I” Government Affairs
Final Standard Reinsurance Agreement on Federal Crop Insurance Program Released
Big “I” says RMA language weakens program and will hurt America’s farmers, ranchers, local agencies, small businesses and rural communities.

Yesterday, the Risk Management Agency (RMA) released its final version of the Standard Reinsurance Agreement (SRA) which determines the terms and conditions for the Administrative and Operating (A&O) reimbursements and underwriting gains for crop insurance companies.

The Big “I” was disappointed with the language and said the new SRA agreement will have destructive effects on rural America and called the agent commission cap provision in the SRA “misguided and potentially dangerous to the farm safety net.”

The agent cap provision in the SRA represents the first time that RMA has attempted to directly regulate agent crop insurance commissions rather than allow the marketplace to determine the appropriate commission rate.

The association has pointed to research that indicates the average commission rate has declined from 2008 to 2009 as evidence that allowing the marketplace to determine commission rates works. The agent cap does not impact the crop insurance budget whatsoever and has no policy merit. The Big “I” believes that by placing arbitrary restrictions on agent commissions, RMA is contradicting Congress’s intent and undermining one of the program’s key goals: professional, efficient delivery of the program to those it is intended to benefit.

The language cuts the federal crop insurance program by $6 billion over ten years and puts an 80% cap on agent commissions. The SRA will cap company expenditures on agent commissions at 80% of the A&O subsidy (calculated at the state level), and the SRA will cap total agent compensation, including profit sharing or similar plans, at 100% of the total A&O. The Big “I” has repeatedly communicated to the administration the harmful impact that the commission cap would have on small businesses and is very disappointed that in this final document they have chosen to side with insurance companies over small business.


Big “I” Flood
Time to Talk Flood 
Use quick flood facts to make the case to clients.

Now that NFIP has been extended until September 30, take the time to talk about flood insurance with clients. Use these facts as a starting point:

• Floods and flash floods happen in all 50 states.
• Everyone lives in a flood zone.
• Flash floods often bring walls of water 10 to 20 feet high.
• Hurricanes and heavy rains are common but often overlooked causes of flooding, even in non-coastal areas.

For more flood facts, visit www.FloodSmart.govor click here.

Let Big “I” Flood help with your flood customers. Big “I” Flood offers flood coverage in, above and outside of the NFIP!  Register to participate at www.bigimarkets.com. For more program or flood insurance information, contact Linda Mackey (linda.mackey@iiaba.net), CIC, CISR, AIAM, Big “I” flood program manager. Watch www.iiaba.net/flood for Latest News from FEMA and Big “I” Government Affairs.


Big “I” Communications
Big “I” Featured in a Pair of National ABC News Stories 
Coverage highlights value of independent agents.

Recently, ABC News spotlighted the Big “I” and independent agents in two high-profile consumer news reports. Last week, “Good Morning America” launched its summer safety series with a piece on hiring contractors and other in-home workers for home remodeling projects. The story included an interview with Big “I” President & CEO Bob Rusbuldt on security and insurance issues surrounding these jobs. He offered advice for consumers to make themselves less vulnerable to problems and thefts during and after construction projects. In addition, the story played on many ABC affiliates’ local newscasts, and the national morning show’s website included a link to a complete list of Big “I” tips on the topic. Click here to see the video and read the accompanying article.

The GMA story followed a segment on auto insurance earlier in June on ABC News Now, the network’s 24-hour all-news channel, which touted the value of independent agents. Consumer correspondent Elisabeth Leamy directed viewers to www.TrustedChoice.com to find an agent and explained how independent agents can shop multiple companies for the best coverage for car owners. For more information on these segments or other recent media hits, contact Sue Nester (susan.nester@iiaba.net), Big “I” director of broadcast media.


Best Practices
Get Your Business Recovery Plan in Place
Best Practices tool can guide your agency through the preparation process.

What would your agency or clients do in the event of a flood, IT failure, boycott, negative media exposure, storm, terrorism or berserk employee? Do you have a plan in place?

The vast majority of businesses are unprepared—but it doesn’t have to be that way. “Best Practices of Crisis Management” can lead you (and your clients) through the process of creating a business recovery plan. This valuable tool has been updated to reflect technology risks, planning trends and resources in an interactive CD designed to enable you to create an in-house, fully-customized plan to work step-by-step through the recovery process. A good business recovery plan can:

• Reduce the amount of a business interruption claim
• Reduce the number of days it takes to reorganize an agency after a loss
• Ease the emotional trauma for your customers and the companies you represent

Things can and do happen—be ready.  For more information on all the available Best Practices resources and to obtain your copy of the Crisis Management CE, visit the Best Practices page or e-mail BestPractices@iiaba.net.


Big I Advantage^®
Big I Advantage^® Virtual Risk Consultant Offers
Users report increasing sales while lowering exposure to E&O claims.

Increasing sales while lowering exposure to E&O claims are two reasons Big “I” members from across the country are flocking to purchase the Big “I” Advantage^® Virtual Risk Consultant Powered by Rough Notes (VRC). And those who have purchased it are very glad they did. A recent survey of registered VRC users found that 92% were extremely satisfied and would recommend VRC to other agents.

Starting at $250 a year, the VRC is an easy-to-use agency resource website offering:

• Risk Exposure Analysis Tools
  VRS offers commercial and personal risk exposure analysis information at your fingertips with hundreds of industries including narrative descriptions, minimum coverages and suggested WC, ISO GL, SIC and NAIC codes. The popular “Coverages Applicable” material, customized questionnaires and E&O coverage checklists are also included.
• Reference and Proposal Tools
  The tool includes reference materials to make sure agency staff understands the products they are selling and help create winning proposals. Included are access to ACORD forms, PF&M and a glossary of insurance terms.
• Marketing and Prospecting Tools
  Through VRC, agencies can access articles on various insurance topics to share with customers, post on websites or use to create a client newsletter. There are also hundreds of professionally written building business letters so you can spend more time selling and less time writing.

Gain a competitive advantage by purchasing the exclusive VRC today. Visit www.iiaba.net/VRC to learn more, view a product demo and purchase.


Big “I” Fall Leadership Conference
Hotel Rooms Going Fast—Have You Registered Yet?
Head to San Francisco Sept. 21-26 for the Big “I” Fall Leadership Conference.

Hotel rooms are moving quickly for the Big “I” Fall Leadership Conference. Register now to reserve your spot! Enhance your leadership skills and network with your peers at this flagship event at the Fairmont San Francisco Sept. 21-26. The program also includes the Virtual University User Group on Sept. 21, executive committee meeting on Sept. 22-23, InVEST board meeting on Sept. 22-23, Education Convocation on Sept. 22-23, Young Agents Leadership Institute on Sept. 24-25 and the board of directors meeting on Sept. 25-26. Visit www.independentagent.com/events to register and check out the schedule of events. You don’t want to miss it!


Big “I” Umbrella
Take Advantage of the PUP Summer Special
Earn higher commissions despite a soft market.

While the market in general shows little or no sign of any real hardening, Big “I” Markets is doing its part to help lighten the burden on you with an increase in commission on any personal umbrella policy bound on Big “I” Markets. From June 1 through August 31, you will receive an additional $15 in commission for every personal umbrella you bind on BIM. We will simply add the $15 to your monthly commission statement. It will apply to both umbrella markets, including the preferred market offered though RLI which features a broader appetite within PUP Special. Visit www.iiaba.net/umbrella to learn more about the program, then log into www.bigimarkets.com to access the markets.


YAC Association News
Wish You Could Multiply Yourself? 
Learn how to work smarter at the Big “I” Young Agents Leadership Institute.

Some days, four hands would be better than two—young agents know this better than anyone as they work their way up the agency ranks.  The action-packed Big “I” Young Agents Leadership Institute will give agents the edge they need to work smarter. Agents Council for Technology (ACT)  gurus will start the event with a round of Jeopardy, but this isn’t any game show quiz——it’s chock full of tips on workflow,  marketing, social media, saving time and current trends. The acclaimed Presidents’ Panel will include representatives from leading carriers who will share their insight on perpetuation, the economy and making the best of today’s market. Keynote speaker Bodine Balasco will show agents how to tap the power of the creative process to reach goals without exhausting resources and energy. If smart marketing is on your mind, this event offers two as young agent social media gurus who will share tips and techniques for using social media effectively. Join us Sept. 24-25 at the Fairmont San Francisco for the premier event for young agents. Spend time with other young agent movers and shakers and build lasting relationships. Not a young agent? Invite young professionals in your agency to attend the event and demonstrate your support of their continued professional growth. Register today!


Big “I” Markets
Member Agent Samples Stand-alone Valuable Articles Market
Fill the gap when homeowners insurance can’t step in.

When people who are no longer homeowners cancel their homeowners insurance are often left with a big question—how to cover their valuable articles?

A customer of Big “I” member agent Julie Mayr of the Bond Insurance Agency in Claremont, W.V., was recently in a predicament. He was being transferred, put his home on the market and it sold quickly—too quickly. The transfer ended up being put on hold, and now he is living in a hotel and his wife is with her parents while they wait for the employment location picture to change. But he needed interim coverage for a $15,000 gold wedding ring.

Julie turned to Big “I” Markets and was pleased with the outcome. “Not only was the underwriter, Jason, fast and responsive, but the zero deductible with minimum premium feature of the policy makes it very attractive,” Julie says.

To learn more and submit a quote request today, visit www.bigimarkets.com.


Big I Advantage
Why Think FedEx?
Big “I” program offers members discounts on shipping services.

When it comes to your agency’s reputation, reliability is key. FedEx has made its name by delivering shipments on time and intact. Consider these FedEx features:

• Faster than UPS. Reliable and cost-effective, FedEx Ground is faster to more locations than UPS Ground.  And FedEx offers overnight delivery to more zip codes than ever.
• Time-critical delivery in the U.S. and abroad. FedEx Express delivers in one, two or three business days by a certain time. You can even request same-day service.
• More than 50,000 convenient drop-off locations nationwide. FedEx offers convenient, easy-to-locate FedEx Express® Drop Boxes, including many at post office locations.
• Reliable office services. With more than 1,800 convenient FedEx Office locations, you can print signage, business stationery, brochures and more. FedEx will even help you pack and ship your boxes.
• Provides you with vital information online. Free FedEx electronic shipping tools let you manage every phase of the shipping process more easily and cost-efficiently—especially billing.
• Offers a money-back guarantee. FedEx offers a money-back guarantee, which covers qualifying shipments to virtually every U.S. address, plus 220 countries and territories worldwide.
• Helps reach your global potential. FedEx offers a variety of international services to more than 220 countries or territories.

Sign up now and save. Take advantage of your special Big “I” member discounts of up to 26% on select FedEx® services. To enroll in the discount program or learn more, go to enrolladvantage.fedex.com/4739 and enter passcode ZFT3SF, or call 1-800-MEMBERS between 8 a.m. and 6 p.m. ET Monday-Friday. Enroll today and start saving!