INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA

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INDEPENDENT INSURANCE AGENTS

OF

SOUTH DAKOTA

November 2018

May you and your family be blessed on Thanksgiving

and throughout the rest of the year.

IIASD Board of Directors and Staff

IIASD Board Director of District 5

Young Agents Today Leaders Tomorrow

With the election behind us, I think it's a good time to sit and take a moment to reflect on your own leadership. Let's take a quick look at the Young Agents of IIASD, for example. First off, what makes you a Young Agent? A Young Agent is anyone under the age of 40 OR in the insurance industry less than 10 years. If you are over 40 years old, but have been in insurance less than 10 years, you are STILL a young agent.

Another frequently asked question: What does it mean to be a Young Agent? Plain and simple, it means you're a `greenhorn', a `newbie'. More importantly, it means that you have exclusive YA benefits from the IIASD. I was that `newbie'. I had no idea what the letters IIASD stood for and there was no Young Agents Committee (YAC). I was busy trying to figure out insurance lingo and getting to know my customers. At one point in time, I found myself desperately searching for quality continuing ed classes. An agent at another branch suggested I check out the IIASD website, because they have some great CE courses and events. That is where it all started. I got involved and realized all of the benefits I was missing out on. I am thankful that someone took the time to point me in the right direction. It only takes one voice to get people involved. Be that voice, spread the word within your agency about IIASD and everything it has to offer. Notify the IIASD of newly licensed agents in your office. Educate your new agents about IIASD and point them in the right direction. It takes involvement from all of our members to have a successful and strong association.

I am proud to say that our association is thriving, but it will take the involvement of everyone to continue this trend. As a Young Agent myself, I am very passionate about the YAC and IIASD. One of my FAVORITE parts of IIASD is that agents from across our great state can gather at conferences throughout the year to network and learn from each other (and maybe even have a little fun), all at a noncompetitive level. This builds lasting friendships and makes each and every one of us stronger and smarter, so we can better serve our customers and communities. Let's be sure that people continue to choose independent agents. Be a leader. Spread the word and take advantage of everything YAC and IIASD has to offer! You won't regret it.

Yours Truly, Elizabeth Nepodal Fidelity Insurance

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INDEPENDENT INSURANCE AGENTS OF SOUTH DAKOTA

2018 OFFICERS

PRESIDENT

Jesse Konold

Key Insurance Inc.

Mobridge, SD

PRESIDENT-ELECT

Derrick Linn

Leavitt Heartland Ins. Services

Sturgis, SD

VICE PRESIDENT

John Meyen

Rosholt Insurance Agency

Rosholt, SD

SECRETARY-TREASURER

Josh Gilkerson

Fischer Rounds & Assoc.

Pierre, SD

PAST PRESIDENT

Annette Conway

Black Hills Agency Inc

Rapid City, SD

IIABA STATE NAT'L DIRECTOR

Dan Maguire

Black Hills Agency Inc

Rapid City, SD

2018 DIRECTORS

DISTRICT # 1

Josh Gilkerson

Fischer Rounds & Assoc.

Pierre, SD

DISTRICT # 5

Elizabeth Nepodal

Fidelity Agency

Platte, SD

DISTRICT # 2

Mindy Huntington

Fischer Rounds & Assoc.

Watertown, SD

DISTRICT # 6

John Meyen

Rosholt Insurance Agency

Rosholt, SD

DISTRICT # 3

Melanie Parsons

Parsons' Insurance Agency

Viborg, SD

DISTRICT # 7

Amy Bailey

Starr Insurance

Custer, SD

DISTRICT # 4

Amy Olson-Miller

McKinneyOlson Insurance

Sioux Falls, SD

DISTRICT # 8

Deana Taylor

Agents of Insurance

Rapid City, SD

EXECUTIVE VICE PRESIDENT

Carolyn Hofer

IIASD

Fort Pierre, SD

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The Pains of Change.......

Election is over and you may feel like a winner or loser, depending on your political preferences. Whether the outcome turned in your favor or not, one fact is certain ? change is inherent.

It is human nature to strive for routine; familiarity with what to expect next. Then someone comes in and wants to change the goals and the overall plan. Change means wading into the unknown and that scares us.

South Dakota is entering a new era as we inaugurate our first woman governor. Congratulations to Kristi Noem as she makes history. Even though the same political party controls the legislature, change is coming on South Dakota's Capitol Hill. It will be exciting to follow and be involved in the change and progress; however, the uncertainty is stressful for many.

We are well aware that insurance is a highly regulated and ever-changing industry and those of us who are dedicated to the profession have had to change how we do business and will need to continue to adapt to interrupters such as technology, online marketing, carrier mergers and changes in our client's exposures and needs. Federal regulation imposes new responsibilities on agents today with the focus on providing more protections for the client and offer more affordable options. Individual states are charged with regulating some of these changes so it is critical that we keep informed on how our state is responding to these changes.

Legislative session is only two short months away and IIASD's lobbyist, Randy Moses and your IIASD Board and staff will be updating you on a regular basis to inform you of bills that may affect the success of your business and the insurance industry in South Dakota. Keep informed and respond to the grass roots request to contact your legislators when critical votes are pending. We need to work together to make sure informed decisions result in a better industry for all.

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E&O EDGE ? Megan Linn, E&O Administrator

A Little Dab My Do In Your Agency By Jim Redeker

Whether it's to please a large account, appease a family member or an attempt to diversify their business, many insurance agents agree to place coverage that is either outside their expertise or their geographical comfort zone. Due to their lack of expertise or lack of knowledge about the area where they are placing coverage, these agents are at risk of committing an error. This is a dangerous practice because, to paraphrase a famous ad campaign: "A little dab'll do you in."

We have seen claims where a large agency customer purchases their own airplane, a summer home on the coast or even a yacht. The customer asks their agent to procure coverage for the new acquisition and, while the agent is not comfortable placing the coverage, they are even less comfortable sending their prize customer to a competitor for the coverage. Instead, they muddle their way through, obtaining what they believe is the coverage their customer needs.

Not until a loss occurs is the coverage flaw discovered:

?The owner/pilot of an airplane did not meet the qualifications required in the policy. ?The agent failed to realize that the homeowner's policy procured for a coastal home does not include wind or flood coverage. ?As for the yacht now located on the bottom of the Gulf of Mexico, it had a docking restriction: with in 100 miles of the owner's address ... which the policy lists as Indiana.

In each of these actual examples our insured agent had to go back to a large agency customer and explain why there was no coverage for their loss. Not uncommonly, agents lose their largest accounts over dabbling mistakes because those are the very customers they will never refer out for fear of losing the business ? thereby causing the very outcome they feared most.

Another common dabbling error we see is when an agency or agent decides to expand their book of business by branching into a new area of coverage. In an attempt to broaden their footprint, the agent will approach potential customers who require coverages of which our insured agent is unaware. In these scenarios our insured agents have failed to procure pollution coverage or hired- and non-owned auto coverage just to name a couple of examples.

The common thread across most of these claims: when there is a loss, the missing coverage is so obvious that we are unable to find an expert witness who will say our insured agent met the standard of care. The damages are often high and the impact of the claim on the agency is dramatic.

The good news is there are ways to lessen, or even avoid these dabbling errors. When placing a type of coverage for the first time an agency can go through a broker, who is knowledgeable about the type of coverage. While the agent must split the commission with the broker, they can look at the cost as paying for an education and also buying some peace of mind that the correct coverage is being obtained.

Another good source of information is the Big I's "Virtual University", which is full of white papers, articles and checklists for multiple types of coverage anda in many geographical areas. Or if you have a specific question you can use the Big "I"'s "Ask an Expert" for help.

Remember, as a member of the Big I family you have a wealth of information and expertise at your disposal for no additional charge, starting with this simple piece of advice: even a little dab is too much.

Jim Redeker is vice president and claims manager at Swiss Re Corporate Solutions and works out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re Corporate Solutions.

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Division of Insurance News and Views

Life Insurance Policy Locator Tracks $390,541 for South Dakota Consumers The Life Insurance Policy Locator has matched South Dakota consumers with policies totaling $390,541 since its inception in November 2016. A total of 170 inquiries resulted in 40 policy beneficiaries being found. The free national locator service makes it easier to connect consumers with lost life insurance policies or annuities. It was launched by the South Dakota Division of Insurance through the National Association of Insurance Commissioners (NAIC). "State insurance regulators saw a need for a national service a few years ago, and we want to do everything to protect consumers," said Division of Insurance Director Larry Deiter. "This tool does just that by efficiently connecting consumers with lost policies and possibly money they're owed." Basic information about the deceased must be included when submitting a request. The more information provided will allow the participating life insurance and annuity companies to conduct a more accurate search for an existing policy. In its initial two years, the locator has matched 24,934 consumers throughout the nation with policies, totaling $368 million. More than 48,000 consumers have conducted searches nationwide. View additional information on the Life Insurance Policy Locator.

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Division of Insurance Contact Information: Larry Deiter, Director South Dakota Division

of Insurance 124 S. Euclid Ave. 2nd Floor

Pierre, SD 57501 Phone: 605.773.3563

Fax: 605.773.5369

From cattle ranches to grain farms and dairies, we are looking to partner with you to help your book of business grow!

As the #1 preferred business Insurer,* we know your clients each have their own specific needs. That's why we work

with you to provide coverages exclusively for them. Contact Morgan Sexton at Morgan.Sexton@ or visit Business to learn more.

"Highest Ranked by Independent Agents for Commercial Line Insurers" by J.D. Power.**

*Based on 2018 survey of business insurance buyers on preference of national carriers sold via independent agents.

**Liberty Mutual received highest numerical score among commercial lines in the J.D. Power 2018 U.S. Independent Insurance Agent Satisfaction Study, based on 4,021 total responses measuring experiences and perceptions by independent agents among

commercial line insurers, surveyed September-November 2017. Your experiences may vary. Visit

? 2018 Liberty Mutual Insurance. Insurance underwritten by Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries.

Kayla's Advice

What You Need to Know About Cyberattacks

Sponsored By: Grange Insurance

In our ever-connected world, business owners are finding themselves at the forefront of a new threat: ransomware.

Ransomware is a form of extortion in which hackers often access connected business devices, install debilitating malware, then demand payment for removal--a risky solution that can be costly.

Businesses of all sizes are being targeted, and small businesses may be more vulnerable since they often don't have the security measures or training in place to defend themselves. Last year, ransomware attacks caused $5 billion in damages, according to CyberScout, a top security protection service provider in the insurance industry.

Grange Insurance can help protect your agency and your clients from these threats. Here are some steps you can take to shore up your defense:

? Stay informed about cybersecurity threats and outbreaks.

? Back up files regularly and separate backups from your network.

? Educate employees to avoid email phishing attacks. ? Keep software current, especially operating ? systems and antivirus. ? Strengthen email defense, including filters and

authentication. ? Use cybersecurity services to proactively

monitor and respond to threats.Have a response plan in place for regaining control of systems.

If your business is attacked, contact law enforcement right away. Then, follow these steps to get your business back up and running:

? Contact your IT service provider and cybersecurity monitoring provider, if you have one.

? Obtain temporary server space to restore your sys tems if law enforcement needs your computer or servers for an investigation.

? Wipe hard drives, restore systems and download clean versions of your files from an uninfected backup. Then, run a scan.

? Obtain legal counsel to determine if a data breach has occurred.

HELP WANTED:

We're Hiring!

McKinneyOlson Insurance in Sioux Falls is looking for a Commercial Lines Account Executive to join our team.

This individual should be licensed in Property & Casualty and have customer service experience.

The ideal candidate should have a high level of organizational skills and the ability to effectively communicate both verbally and in writing.

The position comes with a full benefit package (health, dental, life and disability insurance as well as 401k plan and PTO).

If interested, please send your resume to

amym@.

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Safety is no accident.

Provide more than coverage to your clients. Offer them the added protection of EMC's loss control services. Whether it's making operational changes to reduce injuries, implementing new work policies or coordinating targeted safety courses, our experts provide valuable services that can result in meaningful loss reduction.

A safe work environment often leads to a more profitable business. And offering our loss control services at no additional cost to your clients often leads to a more profitable business for you too.

Count on EMC? to have your clients' best interests in mind.

losscontrol

?Copyright Employers Mutual Casualty Company 2018. All rights reserved.

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