1st           Law Day

5th           CISR Personal Auto, Flowood, MS

6th            PIA Commercial Lines Coverages, Jackson, MS
 
                CISR Commercial Casualty, Kenner, LA

7th            ACSR Mod #3 Personal Lines, Flowood, MS

8th            CISR Commercial Casualty, Baton Rouge, LA

12th           PIA Commercial Inland Marine, Jackson, MS

14th           IIABA Personal Auto/HO Issues, Jackson, MS

15th           Monthly Business Meeting of the IW of SW MS

16th            Today’s Insurance Professional Mailed

18th            NAIW Week Begins

20-22          PIA Agent License Review

21st             ACSR Mod #7 Commercial Liability, Flowood, MS

The U.S. Supreme Court’s split decision to throw out a $145 million punitive damage award against State Farm Mutual Automobile Insurance Company could lead to significantly smaller awards in the future, but it will take several years to have an effect, according to an industry attorney.

Travelers Property Casualty Corp. posted a dramatic increase in first quarter net income, supported by strong underwriting and increasing rates.

With insurance fraud costs reaching $1 billion in New York, State Farm is testing a new way to fight fraud, with disposable cameras.
 

 Test your potential for E & O losses by completing this quiz.  Answer each question with either no, yes or sometimes. For yes, give yourself 2 points, for sometimes 1 point, and for no 0 points. Good luck.

1. When discussing coverages with clients or prospects, I am sure there is NO doubt at the end of the conversation as to what we had agreed on.
2. I have NO misunderstanding with my insurance carriers regarding the coverage ordered for clients.
3. I document, with clear notes in my files, ALL conversations pertaining to active polices or new business inquiries.
4. I periodically review with ALL my clients their insurance needs along with the coverages and limits which are in force.
5. I use a three-part form to document ALL coverage transactions and send a copy to the client, a copy to the carrier and a copy to the file.
6. I am familiar with ALL coverages that my carriers offer, my binding authority, my limitations, and the underwriting guidelines.
7. I check ALL policies to be certain they provided the coverages that were ordered and all other information is correct.
8. I explain ALL coverages when polices are delivered to my client.
9. I have an active and infallible suspense system to be certain that there is proper follow up on ALL quotes, renewals, policy issuance, and claims.
10. I ONLY sell products with which I am familiar.
11. I am familiar with the rules and regulations of ALL plan coverages such as the FAIR plan, Assigned Risk Auto, flood coverages, etc.
12. I periodically review my own performance to be certain that I understand ALL the functions which I am performing and that I am properly trained for my job.
13. I NEVER “slow pay” client claims when large unpaid balances are owed my agency.
14. I promptly report to the carrier ALL claims made by my clients.
15. I NEVER tell my clients when they have a loss that their claim will be paid.

How did you do on the quiz?

A score of 30 is excellent, 25 is good, 20 or less you might need some work.

As a leader, you will sometimes find yourself bringing together different points of view.  There are generally two ways to do this.  The first relies on organizational structure.  Items such as policies, procedures, and standing rules help make sure each person in the group knows what her job is.  When this method fails, the leader will have to turn to negotiation to manage the conflict.

Whatever method you use to manage conflict, there are steps to follow in the process.  The first step in conflict management is to gather all the facts.  The problem should be defined and underlying issues clarified.

The second step should be to look at your options.  The first response we have to a situation may not always be the best.  Examine every option available.

Now that you have your list of options, you must choose one.  Look at the pros and cons of each option.  Even if a choice seems obvious, the probable outcome may not be worth it.

Leaders sometimes can’t afford to follow a policy of noninterference when conflicts erupt.  If members of your organization are at war, you must mediate if their disputes threaten the organization.  Try to get the parties to reach a solution themselves.  If this doesn’t work a third party may speed resolution, because opposing parties won’t feel like they are losing face when concessions are suggested.

Remember that conflict is not always bad.  Conflict can be beneficial.  However, running away from conflict will always hurt you.

Keri Morrell celebrated her recent birthday with a trip to New Orleans.  A visit to the “Bank of Harrah’s” ensured that she would have to work a while longer before retiring.  She is looking forward to visiting with the grandchildren who have just moved back from North Carolina into their new home in Mandeville, LA and to a little down time fishing on the farm.

Virginia Zeigler is going to relax this month.  When asked about her May calendar she surprised everyone by saying it was blank.  She is going to spend some time working in her yard and resting up for National Convention in Nashville, TN.

Mary Jones’ wedding is May 24, 2003,  so she is busy finalizing last minute wedding plans and drawing up house plans.  She has also been shopping for a trousseau.  We wish her and Tim the best of luck.

Ruthie Phillips will be out of the office May 20-23rd.  She will be in Jackson attending the Agents License Review and taking the agents licensing test.

Deborah Ledford just finished helping and attending the Region IV Conference.  She was the hostess for the National Representative Candace K. Robinson.  Deb knows Candi so she had lots of fun.

Bea Jones spent a long Easter weekend at Lake Concordia.  She and Norm went up there to fish, but the weather did not cooperate.

Do you know the top ten reasons for error and omission claims?  On a piece of paper write down what you think the top three reasons are.  Then compare it to the list below.

1. Inadequate, lack, failure to obtain coverage

2. Misrepresentation

3. Processing delays

4. Cancellation errors

5. Description errors

6. Policy change errors

7. Agency agreement violations

8. Insolvency/nonadmitted carriers

9. Dishonest acts

10. Renewal errors
 

One of the key ingredients to all E & O claims is lack of communication and failure to document.  So take the time and make sure you document all conversations with your insureds and prospects.

Change is inevitable.  Even though our society changes constantly, people tend to resist change.  Below are some reasons why people might resist change, and some ideas to combat the resistance.

Inertia.  Inertia is an innate desire to retain the status quo even when the current situation is inferior.  This person will not get around to doing anything differently, until made to do so.

Fear of the unknown.  No matter how bad something is, we know how it works.  Combat this fear with training programs.

Fear of failure.  This individual may see no need for change, or be afraid that once it is changed they will fail at it.  Change on a trial basis should reduce this fear.

Personality.  Personality conflicts can cause resistance to change.  Maintaining a friendly relationship with others will help eliminate personality conflicts.

Outside consultants.  Reliance on outside help can cause resentment.  Make limited uses of outside consultants.

Timing.  Timing of the proposal is essential.  Select a time when the receiver is in a receptive mood.