aianc's street wise - january 2013

More “News, Satire & Opinions for Independent Agents from Independent Agents” at www.AutoInsuranceAgentsNC.com

AIANC’s STREET WISE January, 2013

STREET WISE Alliance of Insurance Agents of NC

What is THE MOST important thing for an Agency?

In this edition

WHAT IS THE MOST IMPORTANT

THING FOR AN AGENCY? ................. 1

HOW TO HAVE YOUR BEST YEAR

EVER ............................................. 7

DON’T LET A BURGLAR GRINCH RUIN

YOUR HOLIDAY ............................ 10

USING ELECTRONIC SIGNATURES

COULD SAVE BILLIONS ................. 12

MAKE A REAL DIFFERENCE! ......... 16

EVERY DOOR DIRECT MAIL........... 18

BIG IDEA 2013: THE YEAR OF

MOBILITY ..................................... 20

GET A COMPLIMENTARY WEBSITE &

MARKETING ASSESSMENT ............ 20

WHAT IS A MOBILE SITE AND WHY DO

YOU NEED ONE? ........................... 21

LET’S TALK FLOOD ...................... 22

The Fiscal Cliff Deal: What It Means for You........................... 25

NC DOI COMMISSIONER GOODWIN

................................................... 27

by Al Diamond

What is THE MOST important thing for an agency?

� Adding Customers

� Retaining Customers

� Providing ALL insurance products for the customers

� Nurturing satisfied and

happy employees

� Generating Profits

� Keeping the carriers happy (growing and good loss ratios)

Many have looked at this list and said that more than one or all of these subjects are important to an agency. A few agents probably consider a few of these options LESS important than others.

The greatest mistake made by most agencies is picking ONE from the list above. Most of the time, the priorities of the above list depends on the ‘crisis of the moment’ that causes an agency owner to categorically state the one which is the most important thing that the agency is focused upon.

In reality the most successful agencies focus on each of these subjects as if they were the openings in a revolving door – if one breaks down, the door simply stops and no one gets into or out of the business. So the only answer is ALL OF THE ABOVE!

But the most frustrating thing for agency owners is the dilemma of how to keep ALL of these critical subjects attended to at all times.

Ladies and Gentlemen, this is MANAGEMENT 101, something that very few agents are trained to do, but are forced into the role the same way we learn parenting for better or worse. Most parents go through the same learning curve, the same frustrations and make the same mistakes. This is because no one teaches young people HOW to parent before they become parents, themselves. The same thing happens with agency owners, even if they are second or third generation agents. Mom and Dad don’t teach their kids or their next generation owners the lessons they learned the hard way, leaving the new owners to also learn through trial and error.

There ARE a few lucky exceptions. They are trained and enter management a little cocky, but much better prepared to run agencies. Once they shake their ‘youthful exuberance’, you know, the part about knowing everything as soon as they become owners, and gain the maturity to learn from and take advice from their elders they usually become much better managers and owners than their predecessors.

Continued on page 2



The Most Important Thing

Continued from page 1

I got a wonderful lesson in this through first-hand experience with one of my children. A much, much better parent than I ever was, my son and daughter-in-law had the benefit of training in psychology and special education for their careers as special education teachers. The side benefit to this training was their understanding of children and, when they had their first baby, they were much more patient and understanding and devoted much more time to the development of my granddaughter than I ever did with them. Similarly when agents mature and train their next generation of owners into the roles that the agents have held and share and teach them how to properly manage those roles, the next generation becomes stronger than the last in the position of agency owner and manager.

But there is little need for management for small agents with only the responsibility of a single insurance agent to his customers. However, once you own an agency that has producers, employees, multiple carrier relationships and a growing book of business, you are no longer just an insurance agent.

An insurance agent is someone that keeps customers satisfied by attending to their insurance needs on a regular basis. Actually, this is the definition of an insurance broker – one who works for the client’s best interest at all times. The successful broker makes sure that ALL OF THE CLIENTS ASSETS ARE PROPERLY PROTECTED, which Agency Consulting Group defines as our Relationship Selling Model, the Asset Protection Model. So if you think you’re a broker or agent by selling a few or a lot of people one policy each, you’re fooling yourself. That is the definition of an Insurance Salesperson whom mostly on the phone at direct writers. They sell customers what the customer asks for regardless of what the customer needs.

Once you establish contracts with insurance companies, you become an agent of the companies, required to perform in the best interest of the carrier while still serving the customers insurance needs. So now you are concerned with providing quality products to your customers, insuring ALL of their asset needs AND generating a growing premium base of low loss ratio business for your carriers.

Continued on page 4

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Once you hire or inherit employees, you extend your role from an insurance agent to an employer. Now you are responsible for someone else’s career, as well as your own.

To perform this role successfully, you must assure that the employee is properly trained, given the tools to do their jobs and are treated with the respect, authority and responsibility they deserve to earn their compensation and be satisfied with their roles and positions in your agency. Too many agents still treat their employees like clerks and personal assistants, telling them what to do and when to do it, not giving them the latitude and responsibility for which most of the employees are trained.

These are people who own homes and property, make investments, raise children and educate them. We ask them to ‘check their brains at the door’ – they won’t need them until they leave at 5:00 PM.

The happiest employees are those who are treated with respect for the knowledge that they have accumulated. They are responsible for their jobs, certainly are managed to the expectations of the agency and the customer, and are honored for their roles.

If you get to the point of hiring producers, your role expands further into that of a sales manager. No, you don’t hire a producer and tell him to ‘go ye out and sell insurance’. You don’t give him the Yellow Pages or tell him to sell insurance to his friends and relatives. Most agents know that is a recipe for disaster – failed producers and a terrific expense to the agency for as long as the agency can support the producer.

Continued on page 6

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Successful producers are given training, as needed, specific expectations of the job and the marketing and advertising support to provide them all the prospects they need. Their role is to develop relationships with the prospects that cause the prospect to trust the agency to do a better job protecting the clients’ assets for them.

They get the prospect to TRUST the producer and the agency’s capabilities to protect them. Their function is NOT to troll for prospects and face the rejection normal to that role.

All of these subjects are critically important to an agency owner’s primary goal of supporting him/herself and their families. In order to accomplish that we must balance revenue with expenses in order to create a profit that allows us to earn a comfortable lifestyle AND to create value in the business asset that will eventually become our retirement vehicle (or add to our estate value).

The lesson to be learned in this ‘Management 101’ class is that smaller agents must balance GROWTH OF CLIENTS, RETENTION OF CLIENTS, and PROVIDING FOR ALL OF EVERY CLIENT’S INSURANCE NEEDS, the customer oriented priorities of the agency with nurturing the employees (including producers) and establishing and paying attention to the carrier needs – all while learning how to budget for profits.

Larger agencies, whose owners are smart enough to develop the agency, will hire managers to handle these priorities and the owners will dedicate themselves to their favorite role in the agency. Sales managers are hired to manage growth and the producers into ever-growing books of business. Operations Managers are hired to manage customer service, employee development and retention of business. Financial Managers are hired to evolve the budget into an Agency Strategic and Tactical Plan including the budget that assures profitable operations every year.

Most agencies still stay small. They may talk about growth, but the owners aren’t really comfortable doing the things necessary to accomplish that growth, many blaming everyone and everything but themselves for their lack of success. Even most agencies that grow do so very painfully, not hiring support staff until customer crises arise and not hiring management until frustration with dealing with employees overcome the owners.

That’s why only a relatively small percentage of agencies ever evolve into professionally managed businesses generating millions of dollars of revenues, double-digit growth every year, expansion of geographic and business scope beyond the expectations of even the

owners and profits that result in extraordinary business value on behalf of the agency owners.

It doesn’t have to be that way. It begins by paying attention to the Revolving Door of agency priorities in equal proportion.

First, make sure that every customer is satisfied and likes you.

Second, while still maintaining customer relationships that grow and retain your revenues, evolve competent, responsible staffs that are trusted to do their jobs, but are managed so they know that you know everything that is being done.

Third, create relationships with your carriers with the same intensity and honesty as you do with your clients. Never lie or exaggerate what you can do for a carrier. Under-promise and Over-deliver so the carrier sees you as a profitable growth, oriented agency.

Fourth, bring in and mentor producers as if they were your children. Nurture them and give them every opportunity to succeed by establishing agency marketing programs that bring a constant flow of prospects to the door.

Finally, love and respect them all customers, employees, carriers, producers but remember your first obligation is to yourself and to your family. Operate at a profit EVERY YEAR. Pay yourself for what you do as fairly as you pay your staff for what they do. Profit is not a part of your paycheck. Your paycheck is compensation for your productivity. Profit is the additional money that you are to use to support your business growth and value.

Remember the Agency Consulting Group, Inc. Revolving Door of Agency Priorities. We can help you develop and evolve any or all of the doors so that no jams occur to stop your progress. Call us to discuss your particular situation (800-779-2430).

Reprinted from the PIPELINE, the national newsletter for agency principals, by permission of Agency Consulting Group, Inc., a leading consulting firm for independent agents in the U.S. for more than 20 years. Call 800-779-2430 for information or subscription; e-mail

[email protected]; website,

www.AgencyConsulting.com.

mailto:[email protected]

http://www.agencyconsulting.com/



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How to Have Your Best Year Ever

by John Chapin

By the time you read this we’re a week into 2013, one fifty-second of the year is already gone. How’s it going so far? How are you doing with your New Year’s Resolutions if you made any? Are you on track to achieve your personal and professional goals this year? If you’re not on track, these ideas will get you on track and caught up. If you are on track, these ideas can help you achieve your goals even faster and go even further.

Five Keys to a Highly Successful 2013

1) Why do you want to have your best year ever?

Before you take on any endeavor, you have to know why you’re doing it. This one factor will determine whether or not you are successful. What are you capable of if you set your mind to it? Pretty much anything, right? So in order to wake up every day driven and motivated to do what must be done in order to achieve your goals and dreams, you must have powerful reasons for doing so. Find your WHY in positive reasons for achieving your goals and negative consequences if you don’t. The start of all great achievement is a burning desire in your heart and soul that simply must be fulfilled.

2) Have goals and a plan.

You’ve heard it a million times but this is still the biggest factor that the most successful people on the planet attribute their success to, so, if you haven’t done this yet, DO IT! The top 3% of people on the planet have goals, a plan for their achievement, and they work on those goals every day. They are worth more in financial terms than the other 97% combined. You don’t need a huge list of goals in each area of life with elaborate plans for their achievement, in fact, the simpler you can make it, the better. At a minimum, pick one major professional goal and one major personal goal, put a simple, straight-forward plan together, and take action on both goals daily.

3) Do what you must do.

Now that you know why you want to have your best year ever and you have goals and a plan, it’s time to get to work. Not tomorrow, not later today… NOW! The most successful people are people of action. They don’t put things off and they rarely hesitate once they have decided upon a goal.

You must work on your goals every day whether you feel like it or not. You must work on your goals when you’re tired, sick, and beaten down. Should you rest occasionally? Yes. Should you take a vacation and have balance in your life? Yes. But assuming you have the burning desire necessary to achieve your goals and dreams, you will pick yourself up in the most tiring and difficult times and press on. Anything worth acquiring in life usually requires that we work hard, get uncomfortable, and face some fears.

Also, contrary to popular belief, WILL POWER DOES WORK. It’s simple, you’re either going to eat that donut or you’re not based upon a simple decision that your parents, the economy, or your relationships have nothing to do with. Speaking of that, I give you point #4…

4) Stop making excuses and giving up control of your life.

Over the years I’ve heard every excuse as to why people don’t achieve their goals. I’ve heard reasons related to health, emotions, past traumas and negative events. People blame the economy, other people, and bad breaks growing up. I have two words of advice: Stop it! Assuming you are reading this right now and comprehend it, you have no excuses.

Once you hit the age of 25 you are responsible for where you are in life. While a 13 year old can blame his or her parents, and a couple other outside factors for their present position in life, anyone 25 or older can go no further than the mirror.

Continued on page 8

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Your Best Year Ever


The faster you “get” that you determine your outcome, not the economy, your parents, or your boss, the quicker you will grab control of your life and live it on your terms. If you continue to blame others and outside circumstances, you will be a victim and the things you don’t want will continue to show up. You are responsible, you are in control, and you decide where you end up.

5) Follow Winston Churchill’s advice.

You remember his advice, right? “Never, never, never give up.” Another saying is, “Quitters never win and winners never quit.” If you hang in there long enough, you’ll make it. Life is simply a game of deciding what you want, developing a plan to get it, taking daily action on that plan, seeing what works and what doesn’t, and adjusting your approach until you get to your destination. Even a ship is of course 99.9% of the trip. The captain simply continues to get feedback and course corrects until the ship lands safely in harbor.

You can do, be, and have anything you want, but it’s going to take hard work and sacrifice. The question isn’t can you have your best year ever, the questions are: Are you willing to put in the time, effort, energy and money that are necessary? Are you willing to give up the excuses and other crutches and pay the price for success?

If you would like access to John's free monthly newsletter and a white paper on what it takes to be successful in sales, you can visit John's website at http://www.completeselling.com/

Have a sales question? E-mail John at [email protected] John Chapin’s specialty is helping salespeople and sales teams double sales in 12 months. He is an award-winning sales speaker, trainer and coach, a number one sales rep in three industries, and the primary author of the gold-medal winning "Sales Encyclopedia". In his 24 years of sales, customer service and management experience, he has thrived in some of the toughest markets and economies.

For permission to reprint, or to reach John, email him at [email protected].

John Chapin Complete Selling, Inc. Helping you find and get all the business you want Cell: 508-243-7359 [email protected] www.completeselling.com LINKEDIN: once logged in find me under: johnchapin1 FACEBOOK: http://www.facebook.com/johnjchapin TWITTER: http://twitter.com/johnjchapin # 1 Sales Rep in 3 industries, Author of the gold-medal winning SALES ENCYCLOPEDIA - The most comprehensive "how-to" guide on selling.

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Don’t Let a Burglar Grinch Ruin Your Holiday

Protect Expensive Gifts with the Right Amount and Type of Insurance

Gifts are an important part of many holiday traditions, and while you can’t put a price on their sentimental value you certainly can—and should—insure their financial value in case a costly item is lost, stolen or destroyed by a fire or other disaster, according to the Insurance Information Institute (I.I.I.)

“If you receive a sparkling engagement ring, a stunning piece of art or even took advantage of the end-of-year sales to treat yourself to a new set of golf clubs or fast new bike, it is important to contact your insurance professional to make sure the items are properly insured,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I.

Generally speaking, personal possessions are covered under standard homeowners and renters insurance policies. However, there may be a limit on the amount covered for theft. Typically, items such as jewelry, furs, collectibles and precious stones are limited to $1,000 to $2,000.

To properly insure jewelry, consider purchasing additional coverage through a floater. In most cases, a floater also provides coverage for ‘mysterious disappearance,’—for example, if your wedding ring falls off your finger or is lost, you would be financially protected.

Floaters (also known as endorsements) are available as an addition to homeowners and renters insurance policies, carry no deductibles and frequently provide the option of having the insurance company replace the item for you. Prices vary depending on the type of jewelry, the insurance company you choose, where you live and where the item will be kept. In addition to jewelry, floaters are also available for furs, fine art, musical instruments and even sports equipment.

If you receive an expensive present and want to make sure it is adequately protected, the I.I.I. suggests the following:

Contact an insurance professional immediately. Let your insurance professional know that you now own a piece of jewelry, a fur or other expensive item. Find out how much coverage you have under your current policy and whether additional insurance is needed.

Find out if you have a replacement cost or actual cash value policy. An actual cash value policy pays to replace your possessions minus depreciation, while a replacement cost policy pays to replace your possessions at their current market value. For example, if a fire destroys your 10-year-old TV a replacement cost policy will pay to replace the television with a new one. On the other hand, an actual cash value policy will pay only the depreciated amount of the TV. Some replacement cost policies also replace the item and deliver it to you. Generally, the price of replacement cost coverage is about 10 percent more than that of actual cash value, but it is a better value in the long run. However, keep in mind that if you have a National Flood Insurance Program policy for your belongings, it is only available on an actual cash value basis.

Keep a copy of the store receipt. Forward a copy of the receipt to your insurer so that the company knows the current retail value of the item. Keep a copy for yourself and include it with your home inventory.

Have the item appraised. Heirlooms and antique jewelry will need to be appraised for their dollar value. Ask your insurer for recommendations regarding a reputable appraiser. It is important that expensive items be appraised properly—if you purchase a floater, you will pay a premium based on the appraised value and, in the event of a claim, be compensated for this dollar amount.

Take a photo or video of the item. Get into the habit of keeping a visual record of all of your personal possessions. If you use a video camera, you can also provide a verbal description of the item or collection. This helps to document your loss and speed up the claims process. It is also useful for documenting antique and unusual pieces of jewelry.

Add the item to your home inventory. A home inventory can help you purchase the correct amount of insurance and speed up the claims process when there is a loss. To make creating your inventory as easy as possible, you can use the I.I.I.’s free Web-based home inventory software, Know Your Stuff® - Home Inventory. The software includes secure online storage so you can access your inventory anywhere, anytime. You can also download the Know Your Stuff app in the iTunes App Store (or search for “iii inventory”) or from Google Play. Information about your belongings can be entered either through the mobile app or online and your data will automatically synchronize between the two. All of your information will be kept in your personal, password protected account, on Amazon secure servers. And, like the online version, the Know Your Stuff® app is free of charge.

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Using Electronic Signatures Could Save Billions

In today’s world, technology is making everything easier, more efficient, and less expensive. Unfortunately, one area where technology efficiency has not impacted the insurance industry is in the active use of electronic signatures for applications and other forms. This is unfortunate, as significant productivity gains and expense reductions can be achieved by the widespread use of electronic signatures for most insurance transactions.

While many agents and brokers have heard of electronic signatures, some questions still remain. Is a digital signature truly legal? Will it hold up in court? Are cloud-based digital signatures secure? What choices do I have for e-signing documents?

WORKFLOW IMPROVEMENT

Consider how a simple insurance agency workflow—getting an application signed—could be improved with an electronic signature process. The basic workflow steps currently look like this:

1. Agency staff inputs application information into the agency management system.

2. The ACORD application is generated by the system and is probably printed as an electronic PDF file.

3. The electronic application is sent as an email attachment to the client for signature.

4. The client physically prints out a copy of the applications and signs with a pen. They then scan the application and email it back to the agency.

5. Agency staff receives the signed application, forwards it to the insurance company for processing, and attaches the document to the client file.

Consider how much easier this process would be, and how much time and expense would be saved, if an electronic signature process was involved:

1. Agency staff inputs application information into the agency management system.

2. The ACORD application is generated by the system, attached to an email, and sent to the policyholder for their signature.

3. The client receives the email and opens the document. They electronically sign the document and immediately send it back to the agency.

4. Agency staff receives the electronically signed application, forwards it to the insurance company for processing, and stores the document in the client file.

When you add up the time savings and multiply that by the number of documents sent daily that require a signature, significant productivity and expense reduction can be achieved.

ARE ELECTRONIC SIGNATURES LEGAL?

It all started in the 1980s when many companies began sending documents via fax machines. Although the real signature was on the paper, the signature’s image was transmitted electronically. Courts in different jurisdictions made a decision that electronic signatures can be enforced. This way, agreements can be performed with the use of email.

President Clinton signed the ESIGN Act into law in 2000. ESIGN, short for the Electronic Signatures in Global and National Commerce Act, legalized the validity of digital signatures on contracts and other legal documents. The law says that a contract signed in digital form cannot be legally denied simply because it is in digital form. Basically, ESIGN says your electronic signature is just as valid as a paper signature. While some states have their own laws when it comes to digital signatures, the Federal law governs interstate commerce.

In addition, many states have adopted The Uniform Electronic Transactions Act (UETA) proposed by the National Conference of Commissioners on Uniform State Laws (NCCUSL). Forty-seven states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands have adopted it into their own laws. Its overarching purpose is to bring into line the differing state laws over such areas as retention of paper records (checks in particular), and the validity of electronic signatures, thereby supporting the validity of electronic contracts as a viable medium of agreement.

UETA allows e-signatures to be covered in legal documents in all states but New York, Washington state, and Illinois, in which UETA is not yet acknowledged. No matter your state, however, electronic signatures are becoming much more commonplace.

UETA has its own requirements, some of which include:

Continued on page 14

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Using Electronic Signatures


The signature must be logically associated with the document.

Both parties must have agreed to conduct the transaction via electronic means.

If the sender inhibits the receiver’s ability to either store or print the record, the document is not enforceable against that recipient.

UETA also specifies that if a law exists that requires a signature; an electronic signature will satisfy that requirement. This gives signers the confidence of knowing a digitally signed document is as legally valid as a document signed with a pen the old-fashioned way.

ACORD has published a white paper—New Strategic Analysis Sheds Light on eSignature and Insurance—that may help move your organization to quickly adopt electronic signatures for all transactions.

DON’T WAIT

The insurance industry should be a leader in the adoption of e-signatures. Agents are now equipped with laptops and tablet computers so it is easy to process intricate application forms. The e-signature method makes everything much simpler.

E-signatures are coming. It’s time for agents to begin experiencing the benefits of increased efficiency, reduced staff workload, and improved client satisfaction. Agents and Broker can no longer wait for others in the industry to embrace this change. Take the lead and begin experimenting with using electronic signatures in your organization today.

Has your organization adopted electronic signatures? If not, why not? If yes, what electronic signature process do you use? Leave your comments on my blog.

Steve Anderson is the leading authority on insurance agency technology. He is a prolific writer known for his knack for translating “geek speak” into easily understood concepts. Check out his free weekly newsletter “TechTips” and other resources for the insurance industry on his website.

http://www.acord.org/about/NewsCenter/PressReleases/Pages/20120724_esignatures.aspx

http://www.acord.org/about/NewsCenter/PressReleases/Pages/20120724_esignatures.aspx

http://www.steveanderson.com/



Make a Real Difference!

by Matthew A. Treskovich, CFP®, CMA, MBA, CLU, ChFC, FLMI

The year-end sales push is on, and carriers, independent marketing organizations, agents, and brokers are gearing up for the traditional year-end dash to get business placed and paid. Life insurance for business purposes is a particularly hot topic this year. Business continuation planning is popular because unlike income, gift, and estate tax planning sales, the underlying insurance needs are at best loosely tied to the political and tax environment.

The two primary types of business planning sales are

Business succession planning

Business continuation planning

Succession planning looks at the current ownership structure of the business, and how present owners and prospective owners want that structure to evolve should something happen to the owners. This is distinct from business continuation planning. A continuation plan funded by life insurance provides the cash the company will need to keep running after the loss of a key manager, salesperson, executive or owner.

Some key questions to ask before a business succession planning engagement are

“Who owns the business?”

“What do the owners want to happen in the event of an untimely death?”

“Has this been formalized in any documents?”

“Where are the documents, and what do they say?”

Sometimes clients are reluctant to discuss business succession planning because they do not want to admit or contemplate their own mortality or that of their colleagues. It can often be helpful to ask less analytical, more emotional, questions in that situation:

“Are you prepared to have your deceased partner's spouse as your new partner?”

“Are you prepared to have your deceased partner's children as your new partner?”

The business continuation and business succession planning discussion is not limited to owners. Conversations with key employees, especially high-ranking finance and accounting executives, can lead to business continuation planning sales. If you are talking to someone who is a high-ranking employee, and not an owner, ask them this:

“Are you ready to have your deceased boss' family running the show?”

“Do you think they can handle it?”

“If something happens to the boss, can you make payroll next month? And the month after that?”

If there is no continuation plan, these key people are the ones who will have to take the initiative and keep the company running. As an advisor, you can help them understand why continuation and succession plans are important to their job security, and gain advocates for the planning process.

As advisors, we tend to focus on the technical and analytical aspects of planning. We worry about cross purchase vs. corporate redemption buy-sell agreements. We worry about corporate AMT on life insurance proceeds, and are required to follow all of the intricacies of employer owned life insurance compliance. Too often this attention to detail can lead us to lose sight of the big picture.

Key person and buy/sell planning have a real impact on people’s lives. The effect of poor planning can have a wide impact, not only on owners and employees, but also on families of those stakeholders, and on clients and suppliers. Proper planning can mean the difference between liquidating a formerly successful business and selling a going concern. It can also make the difference between people keeping the jobs they've had and loved for years, and those people ending up on the unemployment rolls.

Do your clients a favor – don't let them take this subject lightly!

Matt is the CFO at Creekmore Insurance Group, a life insurance BGA specializing in impaired risk and jumbo life cases, serving independent agents and financial advisors nationwide. In addition to his management role, Matt provides field support for advanced case design and underwriting. He can be reached via email [email protected] or at 800-936-0339. For more information, visit www.LifeAgents.com


http://www.lifeagents.com/



Every Door Direct Mail

Since 1998, Mitch Schwark has worked as an insurance agent and as a marketing representative in the insurance industry in Georgia. In 2012, he became a Business Solutions Specialist with the United States Postal Service. I recently sat down with Mitch and discussed how in his position with the USPS he can help independent insurance agencies drive in more business.

EKE: Mitch, you’ve left the insurance world and are now a Business Solutions Specialist with the USPS. What is a USPS Business Solutions Specialist?

MS: Every business has a postal representative assigned to them to assist with their shipping and mailing solutions. The USPS offers this service at no cost to the customer.

EKE: Insurance agencies don’t really ship anything. And isn’t mailing just slapping on a stamp and sticking it in the mailbox?

MS: It’s much more than that. I’m not talking about mailing out your bills. What I do is show businesses how to effectively use the mail to drive in more customers.

EKE: Are you talking about buying lists and sending out mailers? I think all of us that have owned agencies have tried this and have found it to be expensive and unproductive.

MS: Having owned an agency, I’ve tried that myself and was very unhappy with the results. If only I would have had the tools that are available now from the Postal Service.

EKE: What’s changed?

MS: An insurance agency’s customer base is generally that group of people that live within a 5-mile radius, depending on the area. In the past, you would have had to purchase lists to determine their names and addresses. And after you got your mail piece ready, you would put a stamp on it, a time-consuming and costly process, and send it out, hoping someone would read it and respond.

EKE: Between the lists, printing costs and postage, that would be expensive.

MS: Upwards of $3500.00 to send out 5000 pieces. But that was then. Now we have Every Door Direct Mail. This product eliminates the need for buying lists. And the cost of the postage is 67% less than the price of a first-class stamp.

EKE: Are we talking about sending out post cards?

MS: Not at all. In fact, you can be very creative with the design. And bigger is better.

EKE: So how do you not need mailing lists?

MS: With Every Door Direct Mail, we have an interactive map on our website that allows you to pick which carrier routes you want your piece delivered to. You can target exactly what neighborhoods you think has potential clients. The postal carrier takes your mail pieces and delivers one to every stop on his route.

EKE: Well that sounds easy. Why do we need you?

MS: Good question. The training that I receive focuses on marketing. Return on investment should be every business owner’s goal, especially with advertising. I receive extensive training on direct mail advertising. Take a look at your own mail. Some things you take a second look at and some things you throw right in the trash. I know how to get that second look.

EKE: Doesn’t all junk mail go right in the trash?

MS: Not at all. In fact, in recent surveys, it has been shown that 59% of people surveyed prefer to receive promotional messages from a company with which they have never interacted. Compare that to the 38% that preferred email and you can see that using direct mail is still your best return on investment. Direct mail is not disruptive like text messages or pop-ups, it does not invade a consumer’s space, and it is established. For better or worse, consumers are used to it.

EKE: Are mailing permits required to use Every Door Direct Mail?

MS: A permit is not required. Paying for Every Door Direct Mail is as easy as going online, or paying at the Post Office.

EKE: So what’s the first step to get started?

MS: Go to www.usps.com/everydoordirectmail and you can begin the process. I would also suggest that anyone interested contact me for free guidance. I can be reached at [email protected] or by calling 770-990-3569.

http://www.usps.com/everydoordirectmail


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Big Idea 2013: The Year of Mobility

The question that gets asked about technology, the one that is almost always precisely the wrong question is, “How does this advancement help our business?”

The correct question is, “How does this advancement undermine our business model and require us/enable us to build a new one?” Seth Godin

Every prediction on the growth of the use of mobile devices has been wrong. According to Mary Meeker at KPCB, mobile now accounts for 13% of all Internet traffic up from 4% in 2010.

It's becoming abundantly clear that, for the insurance industry, 2013 will be the “Year of Mobility.”

Why mobility? The idea of mobility encompasses far more than apps and tablets and smartphones. Mobility involves many technologies that are coming together, giving us anytime, anywhere, by anyone capabilities. In other words, mobility is about wireless broadband web access and cloud computing as well as the Internet of Things, just as much as it’s about small devices. The key to success for insurance organizations will be understanding how these technology changes will work together.

The worldwide insurance industry is being transformed. Stakeholders need to ask themselves, “How can we gain new competitive advantages by using mobility to transform all of our business processes?” Mobility is transforming how customers communicate and collaborate. Mobility changes how we will market, sell, train, and share information.

Here are just a few ideas on how mobility will impact the insurance industry:

Mobility Strategy: Your organization will need to define your communication strategy for clients on the go. How are you redefining your products and processes to attract and retain this mobile consumer?

Consumer Self-Service: Digital consumers demand access to their information using whatever device makes sense to them at the time. Many want online self-service options. Agencies must explore how they can most effectively connect with consumers anywhere, anytime. Agency-branded mobile apps will be a key tool.

Mobile Payments: Allowing consumers to make payments on any device requires closer collaboration and better partnerships between the insurance company, their agents, and vendors.

Agency Producers: Smartphones and tablets (probably an Apple iPad) will be used by more agency

producers to become truly paperless for the first time. How will insurance companies and vendors support this mobile producer?

Agency System Vendors: Agency systems will need to be mobile-optimized for employee and client access. For examples of first small steps go here and here. But vendors — you can’t wait 18 months to launch these new products.

Insurance Companies: Telematics, cellular broadband, and who knows what else will require new product and service strategies. Legacy computing platforms will have to be rapidly updated to support these new connections.

My hope is that you will use 2013 to think about “Mobility” and ways your insurance organization can experiment more, optimize more, think more and do more. The new digital consumer won't wait much longer.

How do you think mobility will shape your organization in 2013?

Steve Anderson is the leading authority on insurance agency technology. He is a prolific writer known for his knack for translating “geek speak” into easily understood concepts. Check out his free weekly newsletter “TechTips” and other resources for the insurance industry on his website.

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Send an email to [email protected]

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http://www.steveanderson.com/linkedin




Millions of people are using mobile devices to get online every day.

Does your agency have a mobile-friendly site or an app?

If not, you’ve come to the right place to get started.

What is a mobile site and why do you need one?

Just because you can access your desktop site on a mobile phone doesn’t mean it’s mobile-friendly. Your mobile efforts should reflect the unique navigation capabilities and limitations of mobile devices. A mobile-friendly site and mobile app can help your business connect with customers and drive conversions.

Why does mobile matter?

Your customers are already mobile. Are you?

Customers want to access your agency in their real world – anyplace, anytime.

Users expect their mobile experience to be as good as their desktop experience.

If customers can’t find or easily access your mobile content or services, you’ve lost their business.

Mobile users want to connect with the businesses in their local area.

Your competitors’ mobile performance influences your customers’ expectations.

Where do I start?

We know that starting to develop a mobile strategy can be an overwhelming task. Many questions can arise, leaving you anxiously contemplating which to concentrate on first.

Who is your target audience?

Are you targeting an audience using multiple devices?

Which platforms will you utilize?

What are your primary goals for the mobile site or app?

What do your customers want?

How are you going to measure success?

Go to www.AgencyThrive.com for the answers!

Whether you need significant direction, or a few questions answered, AgencyThrive will help develop your mobile strategy so you can see it thrive in the market!

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Let’s Talk Flood

New Legislation, Winter Flooding Risks, and Barrier Busters for Your Customers

Take Note of Changes in Policy Rates Due to New NFIP Legislation

The Biggert-Waters Flood Insurance Reform Act of 2012 (BW-12) requires FEMA to take immediate steps to eliminate a variety of existing flood insurance subsidies and calls for a number of changes in how the program operates. Some insurance subsidies and discounts will be phased out and eventually eliminated, and rates on almost all buildings that are, or will be, in SFHAs will be revised over time to reflect full flood risks.

Effective on January 1, 2013, flood insurance policy rates for some older non-primary residences in SFHAs that received subsidized rates based on their “pre-Flood Insurance Rate Map” (pre-FIRM) status will increase by 25 percent a year until they reflect the full-risk rate. A pre-FIRM building is one that was built before the community’s first flood map became effective and has not been substantially damaged or improved. If the building will be lived in for less than 80 percent of the policy year, it is considered to be a non-primary residence. Click here to read a National Flood Insurance Program (NFIP) bulletin that provides additional details.

The NFIP will also begin eliminating subsidized premiums for other buildings effective on August 1, 2013, as mandated by Section 100205 of BW-12. Click here to read the full bulletin and note that key changes include:

Subsidies will be phased out for severe repetitive loss properties consisting of 1-4 residences, business properties, and properties that have incurred flood-related damages where claims payments exceed the fair market value of the property.

Properties with subsidized rates will move directly to full-risk rates after a sale of the property or after the policy has lapsed.

New policies will be issued at full-risk rates.

Note that policyholders should be aware that allowing a policy to lapse could be costly. A new application will be required and full-risk rates will take effect.

Important Note on Preferred Risk Policies (PRPs)

As of January 1, 2013, PRPs issued on properties newly mapped into high-risk areas may continue beyond the previously designated two-year period until FEMA completes its analysis and implements a revised premium structure put in place with BW-12.

For some policyholders in areas flooded by Sandy, the impact of these changes could be substantial. For this reason, the Federal Emergency Management Agency (FEMA) encourages property owners to consider flood insurance costs when making decisions about how high to rebuild. A brochure that details some of the legislation’s impacts on building is also available here. We encourage you to print it out and distribute to community members.


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http://bsa.nfipstat.fema.gov/wyobull/2012/w-12043.pdf

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Let’s Talk Flood


For More Information:

For the latest NFIP Bulletins about the implementation of these changes, visit www.nfipiservice.com/nfip_docs.html. For more details about flood insurance, visit FloodSmart.gov. Visit FloodSmart’s Community Resources section for tools and resources you can use to help you better communicate the risk of flooding and the importance of flood insurance.

Winter Weather Outlook—Both Wet and Dry—Raises Flood Risk

It’s that time of year again: Meteorologists have rolled out their predictions for the upcoming winter season and they are calling for abnormal weather patterns, including heavier-than-average snowfall for those living along the I-95 corridor from Washington, D.C., to New York City. Agents in these areas should educate their customers on snowmelt and spring thaw, two causes of flooding that come with heavy snowfall and frozen ground. Residents in these areas may have forgotten about these occurrences due to lower-than-average snowfall during the past two winters. And some may be so focused on the aftermath of Hurricane Sandy that they haven’t even considered upcoming flooding threats.

Moving west, the consensus among meteorologists is for lighter-than-average snowfall, which may increase the concerns of drought in some areas. Midwesterners are familiar with flooding caused by melting snow, therefore it might seem counter-intuitive to link flood risks with drought. Yet the threat is real. Ground that normally is primed for water absorption from past precipitation is dry, so it is unable to absorb as much water as it normally would. As a result, when it rains the risk for flash flooding increases.

Looking south, residents of Florida, Texas and Georgia can expect above-average precipitation with a chance of severe winter storms. Now is a good time to remind customers in these areas that flood risks exist beyond hurricane season. Educate them on the risks associated with Winter Rainy Season, and remind them about the importance of flood insurance during every season. Even though Winter Rainy Season typically occurs on the West Coast, there is a real threat for it along the East Coast this winter. An overview of these flood risks is also available online in the What Causes Flooding section at www.FloodSmart.gov.

Flooding is a year-round risk. Whether it’s the result of snow melt, a mid-winter deluge across parched Midwestern farmland or a pop-up thunderstorm in the Texas Hill Country, make sure your customers have the coverage they need to weather the storm.

Flood-After-Fire Risks Still Pose a Threat to the Southwest

This past summer, severe wildfires tore through western United States, creating charred ground without the vegetation that would normally absorb rainwater and melting snow. Areas at risk for flood after fire include Arizona, California, Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, the Dakotas, Utah, Washington and Wyoming. Properties directly affected by fires and those located downhill or downstream of burn areas are most at risk for flooding. Encourage your customers to visit our Flood After Fire page to learn more about the flood risks associated with wildfires.

One way you can help your customers is by visiting our Tools and Resources page and downloading the Flood After Fire widget, which provides a concise overview of the flood risks associated with wildfires in a user-friendly format. It also provides a link to ways your customers can prepare their homes and families for flooding. Consider adding the widget to your website, so that your customers can learn more about their risk. Simply copy and paste the provided code into your site to get started. It’s a free and easy way both to educate your customers and get them involved with insurance protection.

Barrier Busters

Talking to customers about flood insurance can be difficult. Many have preconceived notions about what flood insurance covers and who needs it. As a trusted agent, it’s important to make sure all customers have the correct information about flood insurance. Below are the top five barriers many agents face when discussing flood insurance with their customers.

1. I already have homeowners insurance. Many customers mistakenly believe that flood damage will be covered by their homeowner’s policy. Make sure to remind everyone that only flood insurance covers the damages caused by floods.


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Let’s Talk Flood


2. I live on a hill and am not at risk. Those who live on a hill or in an area that has never been flooded do have reduced flood risk, but flooding can happen anywhere, anytime. Aside from major storms, flooding can be caused by heavy rains, melting snow, inadequate or clogged drainage systems, or failed protective devices such as levees or dams. Remind your customers that even if they live in an area of reduced risk, it doesn’t mean the risk is eliminated.

3. I cannot purchase flood insurance because I live in a floodplain. Whether you are in a high-risk or low-risk area, as long as your community participates in the National Flood Insurance Program, you are eligible to purchase flood insurance.

4. I have already experienced a flood—it will not happen again in my lifetime. The phrase “100-year flood” can be misleading. Many may think that this means a flood only happens once every 100 years, but actually this refers to the flood elevation that has a 1 percent chance of being equaled or exceeded each year. A “100-year flood” could occur more than once in a relatively short period of time.

5. I do not live in a flood zone. Everyone lives in a flood zone; it is just a question of whether you live in a moderate-to-low or high risk area. Over 20 percent of NFIP claims are filed from people outside of high risk areas and receive one-third of disaster assistance for flooding.

Agent Spotlight: Lessons Learned on Inland Flooding

It’s been a little over a year since Hurricane Irene and Tropical Storm Lee smacked communities from the Southeastern US and all the way up to New England with torrential rain and flooding. While Binghamton, New York was one of the hardest-hit, hundreds of local residents are still thanking agent Jim Rollo for convincing them to get flood insurance.

“I grew up here, and feel a strong personal stake in the protection of my customers against all kinds of risk,” Rollo says. “In 2006 we faced tremendous damage from flooding, which affected more than 7,000 residential and commercial properties in the area. It was real proof that flooding can happen virtually anywhere, and it was a huge wake-up call for me.”

That wake-up call was a big benefit to Rollo’s customers, many of whom were among the 20,000 who were ordered to evacuate as the floodwaters from Irene and Lee crested the nearby Susquehanna River and topped the city’s retaining walls to cause the worst flooding in 70 years. Fortunately as a result of Rollo’s vigorous promotion of flood insurance, many were covered and have been able to rebuild.

Between 2006 and 2011 Rollo utilized FloodSmart’s co-op advertising and mail-on-demand programs to promote flood insurance through local media and directly to potential customers. He also partnered with local realtors, attorneys, surveyors and National Flood Insurance Program (NFIP) representatives to conduct seminars about flood insurance to local residents, and was interviewed by the local newspaper for a story on the importance of flood protection.

That hard work paid off with significant growth in Rollo’s flood business and significant goodwill among the customers who were protected. “The worst flooding happened on Friday,” Rollo remembers. “We called every one of our policyholders to talk them through the claims process, and then took the time to go out with the flood adjusters to walk through the flooded homes.

“I think this was the moment of truth—the day my staff and I assured our policyholders that we were living up to our promise to protect their financial health. Because after all, that’s what we’re selling—a promise to be there for people when they need us. Around town I’m known as the ‘flood guy,’ which has been great for my business and for the protection of my customers.”

Visit the National Flood Insurance Program Web sites at www.fema.gov/business/nfip Agents.FloodSmart.gov and FloodSmart.gov Email us at [email protected] FEMA, 500 C Street SW, Washington, D.C. 20472

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THE FISCAL CLIFF DEAL: WHAT IT MEANS FOR YOU

By now, everyone has heard about the "fiscal cliff" bill signed into law on January 2, 2013, but what you might not understand is how it affects you. With that in mind, let's take a closer look.

WHAT IS THE "FISCAL CLIFF"?

The term "fiscal cliff" refers to the $503 billion in federal tax increases and $200 billion in spending cuts (according to recent Congressional Budget Office projections) that took effect at the end of 2012 and beginning of 2013--before Congress passed ATRA. It is the abruptness of these measures and possible negative economic impacts such as an increase in unemployment and a recession that has resulted in the use of the metaphor "fiscal cliff".

What Could Have Happened?

According to the Tax Policy Center the arrival of the fiscal cliff would have meant that nearly 90% of all households would see their taxes rise. The top 20 percent of Americans would see their effective tax rate rise about 5.8 percentage points on average, while the bottom 20 percent of Americans would see their tax rate rise about 3.7 percentage points as a result of the Bush-era tax cuts to income, estate, and capital gains tax.

Further, in addition to a rise in tax rates, middle class and the lower-income working families are affected by the fiscal cliff in other ways--among them child-related credits and deductions for dependent care and education, and the EITC.

What Actually Happened: The "Fiscal Cliff" Deal

On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012, which President Obama signed into law the following day. The "fiscal cliff" bill, as it's referred to, extended a number of tax provisions that expired in 2011 and 2012, as well as increasing taxes on higher income individuals.

All Wage Earners

Personal tax rate. Marginal tax rates remained the same for most taxpayers (10%, 15%, 25%, 28%, 33%, and 35%) except for those taxpayers with taxable income greater than $400,000 (single filers) or $450,000 for married filers, whose rate increased to 39.6%.

Payroll taxes. The payroll tax holiday expired at the end of 2012 and was not extended. This means that you'll see 6.2% taken out of your paycheck for Social Security for the first $113,700 in wages for 2013 instead of 4.2%. For the average family making $50,000 a year, this amounts to $1,000 less in their pocket. The self-employed tax rate reverts to 15.3% up from 13.3% in 2012.

Unemployment Insurance. Federally funded unemployment insurance (UI) benefits, scheduled to end on December 29, 2012, were extended for another year, through December 29, 2013.

Middle Income Families

Child-Related Tax Credits. Child-related tax credits, used by families to offset their tax burden, have been extended under ATRA. The child tax credit remains at $1,000 and is still refundable. It is phased out for married couples who earn over $110,000 and single filers who earn more than $75,000. The dependent care tax credit is equal to 35% of the first $3,000 ($6,000 for two or more) of eligible expenses for one qualifying child.

Education. The American Opportunity Tax Credit, which was scheduled to revert to the Hope Credit ($1,500), has been extended through 2017. The credit is used to offset education expenses and is worth up to $2,500.

EITC. The EITC or Earned Income Tax Credit, which benefits low to middle income working families, is extended for five years through the end of 2017. In 2013 the maximum credit is $5,981.

Higher Income Earners

AMT. The AMT (Alternative Minimum Tax) (exemption amounts) was made permanent and indexed for inflation for tax years beginning in 2013 and made retroactive for 2012. In addition, nonrefundable personal credits can be used to offset AMT liability. For 2012, the exemption amounts are $78,750 for married taxpayers filing jointly and $50,600 for single filers. Continued on page 26

http://www.themetrocpa.com/newsletter.php?date=092012#4



Marriage Penalty. The larger standard deduction for married couples filing joint tax returns is retained ($12,200 in 2013) as is the increased size of the 15% income tax bracket. Generally, each spouse would need to earn income in excess of $80,000 (with no itemized deductions) in order to be hit with the marriage penalty; however, the higher your income, the harder you get hit with the penalty. Despite this, it usually makes more sense to file joint tax returns and not married filing separately. If you're not sure which filing status to use, give us a call.

Retirees

Long Term Capital Gains and Dividends. For retirees (and others) whose investment income is at or above $400,000 (single filers) or $450,000 (married filing jointly), long term capital gains and dividends are both taxed at 20%. However, taxpayers in the lower brackets (10% and 15%) however, the tax rate is zero. For middle tax brackets, long-term capital gains and dividends are taxed at 15%.

Even if that dividend income is part of an IRA or other retirement plan (and not in and of itself subject to taxes), retirees in the highest tax bracket ($400,000 for single filers) will still be affected by higher income tax rates in 2013 of 39.6%.

Wealthier Taxpayers

Estate and Gift Taxes. The exclusion for a decedent's estate remains at $5 million (adjusted for inflation) and the top tax rate increases to 40% for taxpayers with income of $400,000 ($450,000 married filing jointly). The "portability" election of exemptions between spouses remains in effect for decedents dying after 2012. The gift tax is increased to $14,000.

Pease amendment and PEP. The Pease amendment, which enabled wealthier taxpayers to get the full value of their itemized deductions, expired in 2012. As a result, taxpayers with incomes of $250,000 $300,000 married filing jointly) will see higher taxes, especially when taking into account higher personal tax rates, Medicare tax increases (see Higher Income Earners above), and the return of the personal exemption phase-out (PEP) provision in 2013 as well. Threshold amounts for PEP are $250,000 for single filers and $300,000 married filing jointly.

If you have questions or need help understanding how the fiscal cliff impacts you, don't hesitate to give us a call. We'll help you figure it out and plan ahead for the future.

Metro CPA, LLC

2193 Northlake Parkway, Building 12, Suite 101, Tucker, GA, 30084

Phone: (678)382-0444 [email protected]

200 Russell Court, Canton, GA 30114

Eddie K. Emmett, Publisher / Editor / Janitor

[email protected]

Cell: (770) 312-2342 Fax: (770) 783-8226

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NC DOI Commissioner Goodwin

Henderson County Body Shop Owner Accused of Insurance Scam

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of George Connolly, 58, of 173 Underwood Road, Fletcher; he is charged with one count of obtaining property by false pretense.

Department of Insurance criminal investigators allege that on Feb. 8, 2012, Connolly — an auto body shop owner — received checks from two insurance companies for the same repair work, resulting in him knowingly accepting a duplicate payment. Connolly is also accused of forging a signature on one of the checks, which was made payable to the owner of the damaged vehicle.

Connolly was arrested on Jan. 12 and released on a $500 secured bond.

The Department of Insurance employs 20 sworn state law enforcement officers dedicated to investigating and prosecuting claims of insurance and bail bonding fraud.

Since Insurance Commissioner Wayne Goodwin took office in 2009, criminal investigators have received more than 16,800 complaints, resulting in 720 arrests and 380 criminal convictions. These efforts have delivered more than $50 million in restitution and recoveries for victims.

An estimated 10 cents of every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Criminal Investigations Division at 919-807-6840. Callers may remain anonymous. Information is also available at www.ncdoi.com.

Thomasville Insurance Agent Arrested for Allegedly Submitting False Applications

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Corinne Elizabeth Sylvester, 30, of 1188 Noahtown Road, Thomasville; she is charged with one felony count of obtaining property by false pretense.

Department of Insurance criminal investigators allege that Sylvester received approximately $974.77 in unearned commissions by submitting fraudulent and unsanctioned insurance applications in June 2010 while working as an insurance agent for AFLAC Insurance Company. Sylvester is accused of submitting applications on behalf of family members without their knowledge.

Sylvester was arrested on Jan. 10 with assistance from the Davidson County Sheriff’s Office and released on a $500 secured bond.

Hendersonville Doctor Accused of Failing to Pay Employee Insurance Premiums

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Dr. Felicia Brabham, 59, of 735 Sixth Ave. West, Hendersonville; she is charged with one count of insurance fraud.

Department of Insurance criminal investigators allege that between November 2011 and April 2012, Brabham stopped paying the health insurance premiums for her medical office employees and willfully failed to notify them that their coverage had been cancelled, resulting in the employees incurring thousands of dollars in medical bills.

Brabham was arrested on Jan. 9 with assistance from the Hendersonville Police Department and released on a $2,500 unsecured bond.

http://www.ncdoi.com/



Davie County Law Firm Employees Arrested for Alleged Embezzlement Scam

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrests of Kelly Renee Jones, 45, of 1739 Highway 601 South, Mocksville: and Jacqualynn Donna Stroud, 58, of 284 Highway 901, Harmony.

Jones was charged with 19 counts of larceny by an employee. Stroud was charged with 12 counts of embezzlement.

Department of Insurance criminal investigators allege that between February 2010 and November 2011 Stroud - while an employee of the Wade Leonard Law Firm in Mocksville - misallocated funds from the firm's trust fund on 12 different occasions. Jones - also an employee of the law firm - is accused of wiring a total of more than $30,000 from the company's trust fund to her personal bank accounts on 19 occasions between March 2010 and December 2011.

The Department of Insurance opened an investigation in January 2012 in response to a property loss insurance claim at the firm and discovered evidence of the allegedly misallocated funds.

Jones and Stroud were arrested on Jan. 7 in Davie County, and each was placed under a $5,000 secured bond.

Raleigh CEO Charged with Alleged Failure to Pay Insurance Premiums

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Rebecca Horne Wood, 36, of 2338 Dove Court, Rocky Mount; she is charged with one count each of failing to pay premiums deducted from employee pay and failing to notify employees of insurance cancellation.

Department of Insurance criminal investigators allege that between Nov. 30, 2009, and Feb. 28, 2010 — while acting as CEO and president of Alpha/Omega Health Care in Raleigh — Wood collected insurance premiums from her employees but did not forward those funds to the group health insurance provider, resulting in the termination of her employees’ health insurance coverage.

Wood was arrested on Jan. 2 in Nash County and was placed under a $5,000 unsecured bond. Her first scheduled court appearance is on Jan. 4.

Engagement Ring Leads to Arrest for Alleged Insurance Fraud

RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Nathan Daniel Cooperman, 40, of 218 First Ave., New York, N.Y.; he is charged with one count each of insurance fraud and obtaining property by false pretense.

Department of Insurance criminal investigators allege that on Aug. 25, 2007, Cooperman submitted a fraudulent claim to Travelers Claims Hartford Auto for the loss of a $50,000 engagement ring stolen during a burglary of his residence in Durham. Travelers settled the claim with a payment of $49,200 to Cooperman, who has since relocated to New York. Investigators allege that the engagement ring was not stolen, but given to his ex-fiancé, who still had the ring and reported the malfeasance to the Department of Insurance.

Cooperman was arrested on Jan. 2 by the New York Police Department and is being held until he can be extradited to North Carolina.

The Department of Insurance employs 20 sworn state law enforcement officers dedicated to investigating and prosecuting claims of insurance and bail bonding fraud. Since Insurance Commissioner Wayne Goodwin took office in 2009, criminal investigators have received more than 14,000 complaints, resulting in more than 600 arrests, 333 criminal convictions and more than 110 pending court cases. These efforts have delivered more than $48.5 million in restitution and recoveries for victims.

An estimated 10 cents of every dollar paid in premiums goes toward the payment of fraudulent claims. To report suspected fraud, contact the Department of Insurance Criminal Investigations Division at 919-807-6840. Callers may remain anonymous. Information is also available at www.ncdoi.com.

http://www.ncdoi.com/