December 2011

October 2011

November 2013

Minnesota Insurance

Minnesota Insurance1107 Hazeltine Blvd.,MD 16Chaska MN 55318Return Service Requested

PresortedStandard

U.S. PostagePaid

Little FallsPermit No. 9

TheMarketingMan

Brian Emswiler at The Mall of America’s RadissonBlu Hotel, new site of the

MDRT Minnesota Day.

NAIFA-MN President Brian Emswiler Has Made a Career Of

Creative Ideas.

LTCI SPECIAL ISSUE: NEW KINDSOF POLICIES WITH LOWER PRICES

Annual Rankings:

Northwestern Mutual Again Tops in State Life Sales;

Jackson Life No. 1 in Annuities

Two Major Agencies Sold

With life insurance from Pru, I feel confident I’m giving my customers what they want and need. A company that offers real solutions—a breadth of products for a wide range of consumers. One that’s committed to no-lapseguarantees and has the financial stability to back them up. That’s what I call life insurance from The Rock®.

Reasons I Quote The Rock®

return of premium

term

life insuranceprotection

con�dence

commitment

strength prudential

solutions

no-lapse guarantees

breadth

That’s why I quote The Rock. Need more reasons? Contact the Brokerage General Agency in your area or call 800-292-0054.Steve Springer, CLU, ChFC, Regional Vice President

• Offering a broad line of protection products with the potential for cash accumulation

• $30 million in retention and $65 million in capacity1

• Commitment to offering no-lapse guarantees

• #1 in term life insurance premiums2

• #1 in variable life insurance assets under management3

• 134-year history of financial strength4

accumulation potential

VUL

UL

living needs benefit

©2011 Prudential Financial, Inc. and its related entities. 1Amounts available are subject to underwriting and may be reduced based on other in-force or applied-for policies. These limits are graded down for smokers, ratedcases, and issue ages over age 65. Limits are also graded down for celebrities, sports figures, private pilots, non-U.S. residents, and juveniles. 2LIMRA Sales Reports, Prudential Financial Fourth Quarter 2009 Sales.3Tillinghast VALUE report, Prudential Financial Fourth Quarter 2009. 4The Prudential Insurance Company of America. Life insurance is issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in New York and/or New Jersey), and Pruco Life Insurance Company of New Jersey (in New York and/or New Jersey). Variable life insurance is distributed by Pruco Securities, LLC. All are located in Newark, NJ, and are referred to collectively above as “Pru,” “Prudential,” and “Prudential Financial.” Each is a Prudential Financial companyand is solely responsible for its own financial condition and contractual obligations. PruLife Return of Premium Term, which is issued by Pruco Life Insurance Company except in New York and New Jersey where it is issued byPruco Life Insurance Company of New Jersey, can return the premiums paid under certain conditions. Guarantees are backed by the claims-paying ability of the issuing company and do not apply to any underlying investment options.FOR THE EDUCATION OF PRODUCERS/BROKERS ONLY. NOT FOR USE WITH THE PUBLIC.

Investors should consider the investment objectives, risks, and charges and expenses carefully before investing in the contract, and/or underlying portfolios. The prospectus of the contract, and/or the underlying portfolios contains this information as well as other importantinformation. A copy of the prospectus may be obtained from prudential.com. You should read the prospectus carefully before investing.It is possible to lose money by investing in securities.0193768-00001-00 Ed. 01/2011

Interested in becoming part of the Couri family? Visit our website, couriagents.com or give Steve Albinger a call at 800-444-1215

Grow your business... Retain your identity with

Hear what our associates are saying

about our focus on agents

and our great commissions!

Visit

www.couriagents.com/raves/

or

Or Ask one of these strategic partners about Couri Associates’ value

Scan thiswith your

Smartphone QR Reader App.

Search “QR Code” in your App storeto download a mobile reader.

This is just a sampling of the quality carriers Couri represents.

Minnesota Insurance is published monthly at 1107 Hazeltine Blvd., MD 16, Chaska MN 55318. Phone number 763-208-2924. Subscriptions are $24 a year. For advertising or editorial information contact Jack Meusey, pub-lisher. Assistant publisher: Jim Meusey. Staff Writer: J. Michael Edwards. Photographers: Jana Noonan. Graphic Design: Brian Smith. Email: jack@meuseypublishing.com.

Minnesota Insurance Magazine

www. meuseypublishing.com

Minnesota Insurance Page 4

Largest MGA/Underwriting Manager

November 2013 Vol. 31 Issue 11

Jack Meusey Column Page 5

MNsure News Page 7

Whispers & Shouts Page 10

Insurance Production Numbers Page 12

Brian Emswiler Profi le Page 16

This Just In Page 19

Long-Term-Care-Insurance Section Page 20

USE THIS NEW AD

AUTO GLASSSAFETY COUNCIL

AUTO GLASSSAFETY COUNCIL

AUTO GLASSSAFETY COUNCIL

CERTIFIED TECHNICIAN

MEMBER

AUTO GLASSSAFETY COUNCIL

REGISTERED COMPANY

CAG-MIM-Sept2013.indd 1 8/14/2013 5:29:43 PM

Acquisition Strategy #15MARKETING SUPPORT

Minneapolis Branch: 800.362.4670 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2013. All rights reserved.

“ Tell us where you’re headed, and we’ll help you get there.”

Are there certain accounts in your area you want to write? The more we know about your goals, the better we can provide the right expertise, online resources and other marketing programs and materials to grow your business. It’s just one of the many reasons you can Count on EMC®.

Troy Boysen, Minneapolis Branch Commercial Underwriter

Fit to PrintBy Jack Meusey, Publisher

Minnesota Insurance Magazine

The insurance industry, despite what is often thought, is a very stable industry—pending what might be wrought by the ACA.

For example, when the Minnesota Insurance Magazine began run-ning life insurance production fi gures from the Minnesota Com-merce Department 16 years ago the leading company—based on 1996 sales fi gures—was Northwestern Mutual.

In this issue, which reports on the 2012 results, the leading com-pany is: Northwestern Mutual.

Moreover, its main challengers remain pretty much the same. Such continuity is also prevalent in annuities where Jackson Na-tional Life and Riversource/IDS Life simply traded No. 1 and No. 2 positions over the 16-year period.

Where things have changed—property-casualty lines included—is in health/accident insurance. Sixteen years ago the leading pro-viders in order were: Principal, Life Insurance Company of North

America, Fortis, UNUM and Principal who had about 30 percent of the market. Today it is the nonprofi ts that dominate: Blue Cross, UCARE, Medica, Health Partners, Preferred One, Group Health and Preferred One in order with a cumulative market share in the 90 percent range.

One category that defi nitely has changed for all, however, is the amount of premium sold—as well as which of the lines is sell-ing the most of it. In 1996, Northwestern Mutual generated $118 million in direct written premium. IDS Life had a leading $110 million in annuities.

In 2012, Northwestern Mutual was still the life leader at $413 mil-lion. Jackson Life was still the annuity leader, but its leading total was an even more impressive $487.9 million in direct premium.

Looking back 16 years:insurance remains a

relatively stable industry, but there are new health leaders.

Local novelist writes aboutviatical settlements with LakeMinnetonka as a backdrop.

Two major agencies sold.

c

Minnesota Insurance Page 5

Minnesota Insurance Page 6 Minnesota Insurance Page 7

c

!"#$%&#' ( )"#&* +,'-. +#"%/0% !&##*.

12332"4 5&. 60-% 1"#/

789: ;#2 52/<& +0,3&="#/. >,2$& ?@A

B0=&3"%/. C-20 D@?DA

@?E EF? 8@AA

GGGHI2%I2%%"$,'J"#$%&#'HI04

)2%I2%%"$,' !"#$%&#' K. B!

LEA M23320% 0N )0442$$&/

OP,2$* )"J2$"3

Q0I,'&/ 0% "IP,2#2%< J#0J&#$* I"',"3$*

2%/&J&%/&%$ 2%',#"%I& "<&%I2&' G2$- $-&

N0330G2%< J#0N23&R

)04J#2'&/ J#&/042%"$&3* 0N J&#'0%"3 32%&'.

"<#2I,3$,#& "%/ '4"33 I044&#I2"3 I0=&#"<&'

S%%,"3 I0442''20% 2%I04& 2% $-& #"%<& 0N

L@AAT L@ 423320%

+"'&/ 2% M2%%&'0$" "%/ ',##0,%/2%< '$"$&'

®

FINALLY, A PLAN WITH CHARACTER!$3,500 MAXIMUM DOWN TO ONE.

• NO networks - 90% U&C choose your own dentist

• NO participation requirements for voluntary dental down to 2

• NO waiting periods - even for major and ortho services

For agent contracting and brochures, email info@spiritdental.com or visit us at www.spiritdental.com

hope to have every school in Minnesota participating by end of 2014,” said Nyquist, a board member for the organization. Ny-quist also heads Nyquist Fantastic Alliance that is one of Blue Cross-Blue Shield’s six preferred general agents in Minnesota. NFA provides health, life, dental, vision, long-term care, interna-tional travel insurance, disability insurance and benefits coverage to over 1,300 clients. Founded nearly 40 years ago, the alliance, 1325 American Blvd East, suite 5A Bloomington 55425, now has 100 agents and 14 other benefits and financial planning agencies as members. A Bloomington native, Nyquist is a 1976 graduate of the University of Minnesota and is a tuba player in the U’s alumni band. He is also an avid traveler and a lifelong downhill skier. His son Aaron is an international arbitration attorney. n

-0-Local author James Michael Larrananga has written a novel In The Company of Wolves about the viatical settlement industry— with Minnesota as a backdrop. Larrangaga, whose full-time busi-ness is in marketing, sets much of his story on Lake Minnetonka. A promotion about the book says “this legitimate industry (viati-cal setlement) is no stranger to fraud, but Larranaga’s villains take it to another level—they kill their clients to collect on the death benefits.” Larranaga wrote his novel 12 years ago with the story’s setting on Lake Minnetonka—long before Tom Petters, who once lived there, was convicted in a non-insurance $3.6 billion Ponzi scheme. It was also long before Trevor Cook—convicted in 2010 of a $194 million investment fraud case—received his funding from a Wayzata firm and operated from the Van Dusen mansion in Minneapolis that at one time was owned by the well-known family still in the insurance business. “Those were strange coincidences that happened after I wrote the novel,” Larranaga said. “I guess it proves truth is sometimes stranger than fiction.” Kirkus Reviews called In the Company of Wolves “a wild, mind-bending read…” The company said Larrananga’s book ranked number one in Ama-zon’s Top 100 Free Downloads during October. Print and digital editions of the book are available at Amazon.com.

-0-

revenue of approximately $8 million, and has 50 employees—all of whom will continue with the agency. “Clients will experience virtually no changes other than enhanced services and offerings that the consolidation makes possible,” said CEO Bob Murphy. “This move will allow us to take our operations to the next lev-el while maintaining constant focus on our clients and their in-surance needs,” said Murphy vice president Bob Schmitz. “Our industry is in a state of transition. Vast changes are coming, in-cluding those resulting from the federal government’s new health care reform legislation. This transaction allows us to fully prepare for and equip our talented team with the resources it needs to as-sist employers and individuals in this changing landscape.” Lake Mary, Fla.-based AssuredPartners Inc. is a portfolio company of Chicago-based private equity firm GTCR. It acquires and invests in insurance brokerage businesses, including property/casualty, employee benefits, surety, managing general agents, and whole-salers, across the U.S. and in London.

-0-Paul Nyquist, a long-time Bloomington agent, is a supporter of the Campus Faith Clubs that are student-led organizations to provide a place for high school and middle-school student in the southern part of the Twin Cities a place to discuss everything from their faith to bullying. There are currently 26 schools that have started faith clubs in Prior Lake, Lakeville, Farmington, Rosemont, Ea-gan, Apple Valley and Burnsville. “Campus Faith Clubs are an important forum for students, allowing kids to have a safe place to discuss anything from their faith to school bullying. We are pas-sionate about getting the word out about this great program and

Jim Holm Jennifer Larsen Merwyn Larsen Erickson-Larsen, Inc., Maple Grove, has purchased the general agency rights to the renewals of policies written through Plym-outh-based The InterAgency (also is known as Blackburn, Nickels and Smith, Inc.). The purchase includes mainly policies placed through these carriers: Capitol Companies; CNA; Zurich; Hart-ford Steam; Great American; Windsor; Philadelphia; and Travel-ers (The Travelers policies involved are D&O, E&O, professional liability only). “This is a unique opportunity for us,” said Jennifer Larsen, President of Erickson-Larsen, Inc. “Our clients will con-tinue to work with the same underwriter because we have hired Di Gast of The InterAgency. In addition, since we share many of the same markets we expect The InterAgency’s clients will expe-rience a seamless transition.” InterAgency President Jim Holm emphasized that a major factor in the transaction was that both organizations share the same values. “We conducted an extensive search, but in the end it was our respect for the excellent service, outstanding expertise, and integrity we’ve seen for decades at E&L that drove our decision,” he said. Since 1989, Holm has also been focused on Insurance Partners, his standard lines brokerage that he will continue to own and operate. “Jim and I have known each other for four decades and have competed on a daily basis for most of that time,”said Merwyn Larsen, CEO of Erickson-Larsen, Inc. Holm said: “We’re grateful for the support we have received over the years in the four-state area and pleased to be able to con-centrate on the ongoing development of Insurance Partners.”

-0-Florida-based AssuredPartners Inc., has acquired the Lee F. Mur-phy, Inc. insurance agency in the St. Paul suburb of Roseville. The agency offers a wide range of insurance and consulting services for both businesses and individuals. Lee F. Murphy, Inc. reports

Robert Murphy Paul Nyquist

Minnesota Insurance Page 9Minnesota Insurance Page 8

Your Long-Term-Care Insurance ResourceWe have been providing group and long-term care insurance to Minnesota agents since 1984. We are a leader in marketing LTCI to more than 180 banks. Working with banks’ valued customers means that we must provide

Contact: Jerry Dock, wildcard@GreenhavenMarketing.com 763-421-1993www. GreenhavenMarketing.com 2621 Fairoak Ave., P.O. Box 98, Anoka MN

We also provide Life Insurance, Group and Individual Medical Insurance, Final Expense Policies, Medicare

Supplements, and Disability Income Protection

the absolute highest service as well as the best products. We will do the same for your clients.

Obama’s Change Has MNsure and Insurers Scrambling

Prof. Roger Feldman Julie Brunner

MNsure officials recently presented two individuals as examples of those who benefit from MNsure. Two years ago lawyer Mary DesCombaz discovered that she had a serious medical condition that effectively ended her legal career.

Her family’s health coverage at the time was a high-pre-mium, high-deductible plan. The regular doctor visits her treatment required meant the copays added up quickly. When her problem returned this year she found herself facing more surgery and follow-up MRIs twice a year.

Using MNsure.org, she enrolled in a plan that covers 100 percent of office visits, testing, surgeries, hospital stays, prescriptions and more—and that, she says, will save her family nearly $10,000 next year.

Small business owner Julie Peck has lacked adequate in-surance since she started her own company three years.Peck went to MNsure grantee Health Access MN, Inc., where its certified navigators helped her find health cov-erage through MNsure that she said is comprehensive and affordable beginning in 2014. n

Two Who Found at MNsure The Coverage They Needed

Dave Phillips, who owns several newspapers in the Rushford and Spring Valley area in southeastern Minnesota shared his experi-ence on MNsure with readers recently. “My experience won’t re-late to most people since I am viewing MNsure from an employer perspective, but it will give an idea of how the system works and what results I get,” Phillips wrote in an Oct. 29, column prior to the site going live Nov. 1. “My first shock was the price, which seemed extremely high. I figured out why, though, on my second visit to the site. To save time, I had put only myself on the com-pany roster because I didn’t have all the employee information and was mostly just curious at this point. Later that night, I wondered if it was basing the policy on my age, which is on the older side and means higher premiums for the insurance my business has now.

“I went back and entered a couple younger employees and when I got to the quotes page, the price was even higher. With all the negative publicity, my first thought was that the system is buggy and this is a mistake. However, another night, and more thoughts about why led me to the question that maybe it was adding all the premiums together. My third visit to the site confirmed my theory and I discovered and then clicked on a link that broke down the premiums by employee.

“My experience leads me to think that the complaints about the workings of MNsure are political in nature rather than construc-tive criticism. However, this first experience says nothing about whether the Affordable Care Act is a good or bad thing. It’s going to take some time to reach a verdict on the success or failure of Obamacare,” Phillips wrote. n

Newspaper Owner Writes About His MNsure Visit

Tired of Walking Away from Business?We Can Help!

The Midwest’s Premier Cluster Group * 100% Retained Ownership * Increased Markets-Over 30 Represented * Knowledgeable Support Staff

Commercial Assistance - Placement * Increased and More Stable Contingencies * Comparative Rater Provided * Retain 90% of Commission * Reduced Cost of Applied Management System * Preferred Agency Contracts

Check out our website at www.iaanetwork.comFor more information call Mike Sabourin 866-789-9712

A MUTUTAL INSURANCE COMPANY

AIA Tired PC BACK 10_21_13:AIA 02.10.10 PC BACK 10/21/13 10:49 AM Page 1

MNsure and Commerce Department officials were considering their reactions following President Obama’s Nov. 14 news con-ference announcing that persons with insurance plans could keep them. About 140,000 plans have become outdated in Minnesota because they did not include newly mandated benefits.

A concern, however, is that Obama’s directive does not apply to individuals who are buying new plans that have to include the expensive and controversial benefits. The president also said that health companies and insurance regulators have the option of not complying, which could further complicate the process. Early in-

dications were that because of Gov. Mark Dayton’s strong politi-cal connection to President Obama, the state would go along with it. But Dayton later said that would not be the case.

Dayton wrote in response to a letter from Julie Brunner of the Min-nesota Council of Health Plan that while he supported Obama’s goal, he understood the difficulty it would cause Minnesota’s in-surance companies.

“Your letter makes clear that making the program changes offered by the president last week would be unworkable for your mem-bers and would likely cause more expensive health coverage for Minnesotans,” Dayton wrote. The reason is MNsure is counting on enrolling many healthy people to offset the cost of covering more sick people under the federal health reform law.

Experts say, however, that Obama’s directive would prevent many healthy people from entering exchanges, therefore skewing the risk mix. That means premiums, which are already set for 2014, are likely to get hiked in 2015. In her letter Brunner said, “while we understand that many consumers are frustrated that their health coverage is changing, the president’s offer for a one-year delay will not erase their frustration—it will only postpone it to the fall of 2014 when those policies must be brought into compliance.”

Roger Feldman, a professor in the University of Minnesota’s School of Public Health told the website MinnPost that the changeof direction will damage the actuarial calculations that insurers have done. n

Minnesota Claims Page 10

James C. Erickson, Attorney

“If the state dares tell them, ‘Here you

go, you all share the million dollars,’

that’s worse than saying we’re not

going to give you anything,’’ said Chris Messerly, an attorney representing

some of the victims. The state recently

paid $300,000 to settle with the family

of college student Dru Sjodin, killed

by a convicted rapist released from a

Minnesota prison.

If bridge victims get more, “we would

have to explain to Dru Sjodin’s family

that her life was worth less than the life

of someone who died on the bridge, and

I don’t know how we would do that,’’

said Latz, an attorney who has worked

on personal injury cases. If the state

does not set up a special fund, victims

who press for a settlement above the

liability cap likely face years of legal

struggle. The claims panel normally

does not take up requests until victims

have gone through the courts. Bridge

lawsuits might not even begin until

the National Transportation Safety

Board pinpoints the collapse’s cause,

which might not happen for a year or

longer. Victims could go after private

companies that worked on the bridge,

including the consultant that examined

the bridge, the contractor resurfacing

the deck when it fell and the company

that installed anti-icing equipment,

said James Schwebel, an attorney

for another group of victims. But

‘We would have to explain to Dru

Sjodin’s family that her life was

worth less than the life of someone

who died on the bridge, and

I don’t know how we would do that.’’

Minnesota Insurance Page 10 Minnesota Insurance Page 11

S.H. SMITH & COMPANY’S Professional & Management Liability Department provides comprehensive risk management solutions, including exposure identification, insurance placement, claims management, and Policy Review & Analysis (PRA)™.

Contact us today to find out how we can make your job easier.

Stephen Hunziker651-414-3861Stephen_Hunziker@shsmith.com

WWW.SHSMITH.COM

D&O: Public, Private & Non-Profit

Technology and Cyber

Financial Institutions

Medical Professional

E&O: All Classes

Transactional Risk Coverages

Private Equity Portfolio Programs

Securities Broker/Dealer E&O/D&O

Employment Practices

Design Professional (A&E)

Lawyers’ Professional

Accountants’ Professional

Jeanine Loomis651-414-3863 Jeanine_Loomis@shsmith.com

Whispers & Shouts Whispers & ShoutsCHS Insurance Services LLC is the new name for agribusi-ness insurance broker Ag States Group, Inver Grove Heights. The agency is owned by Minnesota-based CHS Inc., a national farmer-owned cooperative and global energy, grains and foods company. CHS Insurance also provides customized loss control and on-site safety resources, along with employer services programs, for ag-riculture, food processing, petroleum and related industries. The agency is licensed across the U.S and represents 70 major carriers.

The leading homeowners’multi-peril writers in Minnesota in 2012, according to A.M. Best, were State Farm with 26.3 percent of the market followed by American Family with 13.0 percent. Minnesota moved up one place to 14th nationally in direct written premiums, with 2.2 percent of the $78.6 billion written nationally. The fi gure represented a 7.4 percent increase, which was the 7th highest yearly increase of HO premium in the nation. Colorado was fi rst with a 9.0 percent. The average increase nationwide was 5.5 percent. Minnesota’s adjusted loss ratio for the line was 52.0 percent—placing it below the national average of 59.0. Direct writers have nearly three quarters of the homeowners’ market in the state. There were 193 companies writing the line in Minnesota last year. Nationally, Best reported that 1,084 insurers wrote home-owners’ business in 2012. State Farm was the leading writer in 41 states. American Family was the leader in only one, its home state

of Wisconsin.

Some pharmacists in Minnesota are concerned about the indirect impact of some parts of the Affordable Care Act. Pharmacies left out-of-network anticipate their customers paying higher out-of-pocket costs for prescriptions. As a result, some customers may choose to go elsewhere, to an “in-network” provider, for their me-dicinal needs, according to a report by KARE-TV. Hopkins Center Drug owner Josh Lemm said he makes every effort to be “in-net-work” for all insurance plans, but sometimes it is not possible. He said he has lost some loyal customers through the years because

of the higher “out-of-network” costs. Uni-versity of Minnesota Professor and Health care expert Steve Parente, Ph.D. calls it a “huge problem.” Another potential issue for pharmacists is reimbursements. Re-imbursements are the payments that phar-macists receive from insurance plans for the drugs they dispense.”Currently, we are hearing estimates of a 30 percent decrease in pharmacy reimbursements for prescrip-tion medicines,” said Lemm.

Insurance brokers Charles Moline and Jim Lutes held a question and answer ses-sion on MNsure and the ACA at Wheeler’s Bar and Grill Oct. 23 in Harmony, in the southeastern part of the state. The event was sponsored by the Harmony Insurance Group, which also has offi ces in Roches-ter and Austin.

Underwriter Al Danforth is retiring after 40 years in the business and 35 years with St. Paul and Travelers.

Students at the University of Minnesota have formed an insurance club that is looking to establish contacts with the edu-cation/career committees of professional organizations in the industry for employ-ment, mentor-ships, internships and jobs. For more information contact professor Andrew Whitman: awhitman@umn.edu.

Twila Brase, patient advocate and co-founder of Citizens’ Council for Health Freedom, says there are better, smarter—and perfectly legal—alternatives to enroll-ing in Obamacare. Brase offers these three legal alternatives to enrolling in Obam-acare: Obtain private insurance. Find a plan outside the government bureaucracy in a real marketplace that meets the Af-fordable Care Act’s “minimum essential coverage” requirement. This could in-clude the private individual purchase of health insurance, a health insurance pol-icy available from a person’s employer or a policy purchased through a private health insurance exchange. Claim one or more of the nine exemptions to Obam-acare. There are four exemptions from the individual mandate and fi ve exemptions (including an additional list of hardship exemptions) from the “uninsured tax.” The exempt include: Members of health-sharing organizations, certain religious

groups that receive no Social Security and Native American tribes. Undocumented immigrants, incarcerated individuals, for whom health insurance is considered unaf-fordable (premiums after subsidies/contri-butions exceed 8 percent of income). See the complete list at www.healthcare.gov/exemptions. Go uninsured and pay the “un-insured tax.” Penalties for adults without required coverage begin at $95, or up to 1 percent of income in 2014, whichever is greater, and increase annually. Penalties for children under age 18 begin at $47.50.

Thrivent Financial for Lutherans, Min-neapolis, has been sued by California’s controller who alleges the insurer failed to turn over records for an audit on whether it paid death benefi ts to policyholders’ ben-efi ciaries, according to published reports. “Unlike other life insurance fi rms which are now cooperating with California to cor-rect past injustices perpetrated against their policyholders, Thrivent has suppressed its records,” State Controller John Chiang said. The controller said he has been audit-ing life insurers since 2008 regarding what he said was an “industry-wide practice” of not paying benefi ts despite having access to records that a policyholder had died. David Westmark, senior counsel with Thri-vent, said that the insurer has been paying benefi ciaries of deceased policyholders and fi led its own lawsuit for clarifi cation of what information it has to provide to the

controller, according to the reports. “We’re really good at fi nding people and paying benefi ts,” Westmark said. “We have no problem with being audited, but we want to be treated fairly.”

Otis Magie Agency in Duluth has added the following staff: Scott Winjum, a 17-year industry veteran and former agency owner; Katy Metcalfe with 12 years experi-ence in insurance; and Kaija Johnson, with seven years are new account executives; Brianna Storck joins as a personal lines processor. Karin Brinkman is a new assis-tant bookkeeper and Austin Nikunen is the new receptionist/offi ce assistant.

David Wick, 85, owner of the Wick Insur-ance Center in Albert Lea, died Oct. 14 af-ter a battle with Lewy Body Dementia. n

Scott Winjum Katy Metcalfe Brianna Storck Kaija Johnson

David Wick Twila Brase

• AgStates Agency Now CHS Insurance.

• MN Pharmacists Worried How They Will Fare Under ACA.

• Twila Brase on Alternatives to ACA.

• U Students Form Insurance Club.

• Thrivent Being Sued in California.

• State Farm Tops in Homeowners.

• Al Danforth Retires.

Minnesota Insurance Page 12 Minnesota Insurance Page 13

Life Sales for 2012

Minnesota Insurance Page 11

Reach 7,500 insurance decison-makers who read the

Minnesota Insurance Magazine every month

Contact Jack Meusey 763-208-2924or email: jack@meuseypublishing.com

SUBSCRIBE HERE!To receive every issue of the Minnesota Insur-

it with a check to: Minnesota Insurance Maga-zine, 1107 Hazeltine, MD 16, Chaska MN 55318.Or, you may subscribe by calling 763-208-2924; Or, by visiting our website: meuseypublishing.com; or by email:info@meuseypublishing.com

The cost is $24 for 12 issues and $39 for 24. All major credit cards accepted.

NAME__________________________

COMPANY______________________

ADDRESS________________________

CITY, STATE_______________________

ZIP________________________________

Insurance Rankings

LIFE COMPANIES Domicile Direct Market Cumulative Premiums Share Market Company Name Written Share

NORTHWESTERN MUT LIFE INS CO WI 413,690,564 11.13% 11.13%LINCOLN NATL LIFE INS CO IN 247,337,022 6.66% 17.79%JOHN HANCOCK LIFE INS CO (USA) MI 215,272,023 5.79% 23.58%MINNESOTA LIFE INS CO MN 145,112,603 3.91% 27.49%PACIFIC LIFE INS CO NE 141,870,563 3.82% 31.31%AMERICAN GEN LIFE INS CO TX 137,582,945 3.70% 35.01%PRUDENTIAL INS CO OF AMER NJ 136,384,203 3.67% 38.68%STATE FARM LIFE INS CO IL 94,767,630 2.55% 41.23%RELIASTAR LIFE INS CO MN 92,774,639 2.50% 43.73%AXA EQUITABLE LIFE INS CO NY 83,586,560 2.25% 45.98%PRINCIPAL LIFE INS CO IA 69,860,142 1.88% 47.86%RIVERSOURCE LIFE INS CO MN 65,832,839 1.77% 49.63%HARTFORD LIFE & ANN INS CO CT 65,350,700 1.76% 51.39%GUARDIAN LIFE INS CO OF AMER NY 64,166,543 1.73% 53.12%PHL VARIABLE INS CO CT 63,542,975 1.71% 54.83%METLIFE INS CO OF CT CT 60,511,015 1.63% 56.45%METROPOLITAN LIFE INS CO NY 60,479,829 1.63% 58.08%NEW YORK LIFE INS CO NY 57,991,706 1.56% 59.64%TRANSAMERICA LIFE INS CO IA 56,811,240 1.53% 61.17%US BR SUN LIFE ASSUR CO OF CANADA MI 55,818,079 1.50% 62.67%PRUCO LIFE INS CO AZ 53,639,873 1.44% 64.12%LINCOLN BENEFIT LIFE CO NE 53,340,423 1.44% 65.55%PROTECTIVE LIFE INS CO TN 48,791,148 1.31% 66.87%NEW YORK LIFE INS & ANN CORP DE 48,177,965 1.30% 68.16%MIDLAND NATL LIFE INS CO IA 47,844,555 1.29% 69.45%MASSACHUSETTS MUT LIFE INS CO MA 47,253,618 1.27% 70.72%AVIVA LIFE & ANN CO IA 44,757,336 1.20% 71.93%HARTFORD LIFE & ACCIDENT INS CO CT 44,371,837 1.19% 73.12%AMERICAN FAMILY LIFE INS CO WI 42,369,160 1.14% 74.26%GENWORTH LIFE & ANN INS CO VA 40,029,915 1.08% 75.34%LIFE INS CO OF N AMER PA 30,717,708 0.83% 76.16%UNUM LIFE INS CO OF AMER ME 29,793,095 0.80% 76.97%METLIFE INVESTORS USA INS CO DE 29,542,300 0.80% 77.76%PRIMERICA LIFE INS CO MA 25,951,564 0.70% 78.46%WEST COAST LIFE INS CO NE 24,445,337 0.66% 79.12%UNITED OF OMAHA LIFE INS CO NE 24,418,635 0.66% 79.78%STANDARD INS CO OR 23,232,237 0.63% 80.40%PENN MUT LIFE INS CO PA 22,212,145 0.60% 81.00%SECURITY LIFE OF DENVER INS CO CO 20,329,516 0.55% 81.55%FARMERS NEW WORLD LIFE INS CO WA 19,779,685 0.53% 82.08%NATIONAL GUARDIAN LIFE INS CO WI 19,189,341 0.52% 82.59%UNITED STATES LIFE INS CO IN NYC NY 18,290,653 0.49% 83.09%JACKSON NATL LIFE INS CO MI 18,226,859 0.49% 83.58%BANNER LIFE INS CO MD 17,040,134 0.46% 84.04%FARM BUREAU LIFE INS CO IA 16,336,733 0.44% 84.48%PRINCIPAL NATL LIFE INS CO IA 16,227,404 0.44% 84.91%GENERAL AMER LIFE INS CO MO 15,659,245 0.42% 85.33%NORTH AMER CO LIFE & HLTH INS IA 14,708,081 0.40% 85.73%PENN INS & ANN CO DE 13,548,849 0.36% 86.09%AMERICAN INCOME LIFE INS CO IN 13,264,008 0.36% 86.45%FEDERATED LIFE INS CO MN 12,534,409 0.34% 86.79%UNION CENTRAL LIFE INS CO NE 12,495,457 0.34% 87.12%OHIO NATL LIFE ASSUR CORP OH 12,045,384 0.32% 87.45% 326 COMPANIES IN REPORT 3,715,682,012 100.00% 100.00%

• Life

Northwestern Mutual is showing substantial gains in the life insur-ance sales, according to figures compiled by the Minnesota De-partment of Commerce for the Minnesota Insurance Magazine.

The company’s direct written premium in 2012 jumped to $413.6 million, nearly a $146 million rise in production. The increase led to a more than two percentage point rise in market share for the Wisconsin-based insurer (from 9 percent to 11.1 percent.) Com-merce reports that there were 326 companies writing $3.7 billion in premium in 2012. The leader’s top life competitors, Lincoln National and John Hancock remained in second and third place with $247 million and $215 million respectively.

The lineup of other top life insurance writers remained virtually the same in 2012 production as they were in 2011. Commerce reported that total premium rose slightly to $3.7 billion in 2012 from $3.1 billion the previous year. The number of companies sell-ing life insurance in the state dropped from 386 to 326.

Jackson National Life retained its position as the top annuity seller with $452.7 million in direct written premium, which represents 12.4 percent of the market. Riversource jumped from third last year to second, while 2011 second-place finisher MetLife fell to sixth. Pruco Life, Allianz and Lincoln retained their order near the

top of the list. There were 184 companies selling annuities in 2012, down from 206 the previous year. That decrease is reflected in a decrease in total sales. Annuity premium in 2102 was $3.5 billion compared to $4.8 billion in 2011.

Blue Cross Blue Shield of Minnesota remained atop the accident/health listings. Followed again this year by Medica and UCare in the top spots. Distorting the listings is that most companies have a variety of plans so that premium is spread over several entities.

About half of the insurers in the top 15—who represent about 80 percent of the market—reported loss ratios in the 80 percent range.The highest among the leading companies was Blue Plus HMO at 95.8 percent. n

Northwestern Mutual Jumps to 11.2 Percent Share 2012 Annuity Sales in State Dropped to $3.5 Billion From $4.8 Billion in 2011

No. 1 in Life: Northwestern Mutual

No. 1 in Annuities: Jackson National

No. 1 in Health: Blue Cross-Blue Shield

Minnesota Insurance Page 14

Annuities Sales for 2012

Minnesota Insurance Page 15

Accident/Health Sales for 2012* Annuity

ANNUITIES Domicile Direct Market Cumulative Premiums Share MarketCompany Name Written Share

JACKSON NATL LIFE INS CO MI 452,714,297 12.74% 12.74%RIVERSOURCE LIFE INS CO MN 348,855,124 9.82% 22.56%PRUCO LIFE INS CO AZ 336,256,969 9.46% 32.03%ALLIANZ LIFE INS CO OF N AMER MN 312,823,005 8.81% 40.83%LINCOLN NATL LIFE INS CO IN 239,205,583 6.73% 47.57%METLIFE INVESTORS USA INS CO DE 194,100,703 5.46% 53.03%PACIFIC LIFE INS CO NE 126,345,770 3.56% 56.59%AXA EQUITABLE LIFE INS CO NY 104,976,610 2.95% 59.54%TRANSAMERICA LIFE INS CO IA 98,788,272 2.78% 62.32%NEW YORK LIFE INS & ANN CORP DE 84,541,840 2.38% 64.70%AMERICAN GEN LIFE INS CO TX 83,947,401 2.36% 67.06%NORTHWESTERN MUT LIFE INS CO WI 83,205,805 2.34% 69.41%METROPOLITAN LIFE INS CO NY 53,345,769 1.50% 70.91%TEACHERS INS & ANN ASSOC OF AMER NY 50,983,508 1.44% 72.34%MINNESOTA LIFE INS CO MN 50,899,995 1.43% 73.77%GREAT AMER LIFE INS CO OH 50,667,471 1.43% 75.20%AVIVA LIFE & ANN CO IA 50,436,608 1.42% 76.62%PRINCIPAL LIFE INS CO IA 44,241,703 1.25% 77.87%GUARDIAN INS & ANN CO INC DE 38,341,196 1.08% 78.95%PROTECTIVE LIFE INS CO TN 38,279,768 1.08% 80.02%PHL VARIABLE INS CO CT 38,101,804 1.07% 81.10%OHIO NATL LIFE INS CO OH 37,875,401 1.07% 82.16%MASSACHUSETTS MUT LIFE INS CO MA 37,190,507 1.05% 83.21%SECURITY BENEFIT LIFE INS CO KS 35,977,772 1.01% 84.22%AMERICAN EQUITY INVEST LIFE INS CO IA 26,141,049 0.74% 84.96%ING USA ANN & LIFE INS CO IA 23,451,821 0.66% 85.62%VARIABLE ANN LIFE INS CO TX 22,065,399 0.62% 86.24%STATE FARM LIFE INS CO IL 20,073,672 0.57% 86.80%FUNERAL DIRECTORS LIFE INS CO TX 20,058,235 0.56% 87.37%FARM BUREAU LIFE INS CO IA 18,542,892 0.52% 87.89%THRIVENT LIFE INS CO MN 17,476,489 0.49% 88.38%JOHN HANCOCK LIFE INS CO (USA) MI 16,050,201 0.45% 88.83%PRUDENTIAL ANN LIFE ASSUR CORP CT 15,346,273 0.43% 89.27%HORACE MANN LIFE INS CO IL 14,757,523 0.42% 89.68%FIDELITY INVESTMENTS LIFE INS CO UT 14,539,625 0.41% 90.09%LAFAYETTE LIFE INS CO OH 13,957,375 0.39% 90.48%STANDARD INS CO OR 13,286,498 0.37% 90.86%FORETHOUGHT LIFE INS CO IN 13,051,377 0.37% 91.22%METLIFE INVESTORS INS CO MO 12,959,927 0.36% 91.59%UNITED LIFE INS CO IA 12,201,799 0.34% 91.93%MIDLAND NATL LIFE INS CO IA 11,863,039 0.33% 92.27%AMERICAN NATL INS CO TX 11,514,936 0.32% 92.59%JEFFERSON NATL LIFE INS CO TX 11,336,008 0.32% 92.91%FEDERATED LIFE INS CO MN 10,696,019 0.30% 93.21%AUTO OWNERS LIFE INS CO MI 10,563,064 0.30% 93.51%SYMETRA LIFE INS CO WA 10,422,356 0.29% 93.80%BANKERS LIFE & CAS CO IL 10,402,024 0.29% 94.09%EQUITRUST LIFE INS CO IA 9,973,518 0.28% 94.37%FIDELITY & GUAR LIFE INS CO MD 9,789,140 0.28% 94.65%ATHENE ANNUITY & LIFE ASSUR CO DE 8,814,424 0.25% 94.90%MONUMENTAL LIFE INS CO IA 8,527,696 0.24% 95.14%ZURICH AMER LIFE INS CO IL 8,509,146 0.24% 95.38%GENWORTH LIFE INS CO DE 7,578,561 0.21% 95.59%METLIFE INS CO OF CT CT 7,545,393 0.21% 95.80% 184 COMPANIES IN REPORT 3,552,684,686 100.00% 100.00%

ACCIDENT AND HEALTH Domicile Direct Market Direct Direct Pure Premiums Share Premiums Claims Direct Company Name Written Earned Incurred Loss RatioBCBSM INC MN 3,040,799,429 21.49% 3,043,469,070 2,575,738,861 84.63%UCARE MN MN 2,251,383,176 15.91% 2,251,383,176 2,013,331,668 89.43%MEDICA INS CO MN 1,597,323,528 11.29% 1,597,323,528 1,386,979,008 86.83%HEALTHPARTNERS INC MN 1,370,526,000 9.68% 1,373,019,000 1,073,014,000 78.15%MEDICA HLTH PLANS MN 1,156,522,569 8.17% 1,156,522,570 1,078,892,131 93.29%HMO DBA BLUE PLUS MN 955,469,191 6.75% 955,469,191 906,144,637 94.84%HEALTHPARTNERS INS CO MN 736,756,000 5.21% 735,209,000 617,552,000 84.00%GROUP HLTH PLAN INC MN 404,790,000 2.86% 405,209,000 288,320,000 71.15%HUMANA INS CO WI 364,705,462 2.58% 364,687,129 321,788,364 88.24%UNITEDHEALTHCARE INS CO CT 184,925,411 1.31% 184,488,203 163,157,164 88.44%PREFERREDONE INS CO MN 147,853,559 1.04% 144,841,766 119,959,235 82.82%METROPOLITAN HLTH PLAN MN 138,627,096 0.98% 132,444,018 111,217,686 83.97%DELTA DENTAL OF MN MN 126,985,820 0.90% 126,740,038 90,900,880 71.72%AETNA LIFE INS CO CT 69,394,341 0.49% 71,099,703 64,855,028 91.22%HARTFORD LIFE & ACCIDENT INS CO CT 65,238,632 0.46% 65,579,845 50,063,538 76.34%AMERICAN FAMILY LIFE ASSUR CO OF COL NE 64,028,749 0.45% 64,850,786 37,432,698 57.72%PREFERREDONE COMM HLTH PLAN MN 63,357,597 0.45% 62,890,988 57,208,248 90.96%METROPOLITAN LIFE INS CO NY 55,860,383 0.39% 54,418,205 46,114,526 84.74%UNUM LIFE INS CO OF AMER ME 55,786,517 0.39% 56,257,698 50,391,182 89.57%GENWORTH LIFE INS CO DE 51,398,445 0.36% 50,853,407 16,545,873 32.54%CONNECTICUT GEN LIFE INS CO CT 50,578,175 0.36% 49,306,417 42,363,002 85.92%LIFE INS CO OF N AMER PA 50,567,909 0.36% 50,567,908 41,366,688 81.80%TIME INS CO WI 49,598,743 0.35% 50,098,688 36,770,992 73.40%FEDERATED MUT INS CO MN 49,258,552 0.35% 49,258,552 41,286,227 83.82%PRINCIPAL LIFE INS CO IA 39,178,452 0.28% 36,281,223 20,806,949 57.35%TRANSAMERICA LIFE INS CO IA 39,110,938 0.28% 38,891,740 40,390,603 103.85%STANDARD INS CO OR 37,192,917 0.26% 48,930,456 47,280,442 96.63%JOHN HANCOCK LIFE INS CO (USA) MI 34,031,001 0.24% 34,592,071 7,396,577 21.38%PENNSYLVANIA LIFE INS CO PA 32,896,147 0.23% 31,973,027 23,358,050 73.06%COMBINED INS CO OF AMER IL 32,483,000 0.23% 32,627,693 20,405,126 62.54%UNION SECURITY INS CO KS 30,977,842 0.22% 31,452,671 23,505,823 74.73%LINCOLN NATL LIFE INS CO IN 30,568,329 0.22% 30,563,182 22,673,909 74.19%VISION SERV PLAN INS CO CT 29,448,277 0.21% 29,448,277 24,052,632 81.68%FIRST HLTH LIFE & HLTH INS CO TX 29,145,582 0.21% 28,963,556 25,785,722 89.03%HEALTH CARE SERV CORP A MUT LEGAL RE IL 29,089,927 0.21% 29,089,927 23,692,059 81.44%PRUDENTIAL INS CO OF AMER NJ 27,195,130 0.19% 27,859,903 20,665,418 74.18%STATE FARM MUT AUTO INS CO IL 27,079,392 0.19% 22,485,411 24,587,739 109.35%NORTHWESTERN MUT LIFE INS CO WI 26,674,454 0.19% 26,543,085 14,950,163 56.32%RELIASTAR LIFE INS CO MN 25,297,653 0.18% 24,991,016 17,501,031 70.03%GUARANTEE TRUST LIFE INS CO IL 22,098,795 0.16% 21,541,492 11,007,531 51.10%SILVERSCRIPT INS CO TN 21,846,901 0.15% 20,569,945 17,573,632 85.43%GUARDIAN LIFE INS CO OF AMER NY 19,892,125 0.14% 19,862,369 17,179,889 86.49%BANKERS LIFE & CAS CO IL 18,640,442 0.13% 19,620,642 17,489,026 89.14%US BR SUN LIFE ASSUR CO OF CANADA MI 18,369,094 0.13% 18,191,574 10,064,068 55.32%RIVERSOURCE LIFE INS CO MN 16,387,631 0.12% 16,356,639 9,404,440 57.50%MII LIFE INC MN 15,956,782 0.11% 15,956,782 17,033,859 106.75%CONTINENTAL CAS CO IL 15,740,760 0.11% -8,321,506 11,590,571 -139.28%NORTHWESTERN LONG TERM CARE INS CO WI 15,222,004 0.11% 14,786,505 1,810,212 12.24%PROVIDENT LIFE & ACCIDENT INS CO TN 13,508,827 0.10% 13,902,900 8,796,012 63.27%MINNESOTA LIFE INS CO MN 12,831,027 0.09% 13,120,060 5,001,823 38.12%COLONIAL LIFE & ACCIDENT INS CO SC 12,171,416 0.09% 12,231,096 6,096,518 49.84%MUTUAL OF OMAHA INS CO NE 11,100,679 0.08% 11,121,066 8,360,100 75.17%LIBERTY LIFE ASSUR CO OF BOSTON NH 10,874,792 0.08% 9,660,730 5,153,614 53.35% 341 COMPANIES IN REPORT 835,555,952 100.00% 816,050,782 510,518,666 62.56%

• Acident and health

Minnesota Insurance Page 16 Minnesota Insurance Page 17

c

NEW P/C DIRECTORY AVAILABLE NOW!

Order Here Mail order to Minnesota Insur-ance, 1107 Hazeltine Blvd., MD 16, Chaska MN 55318. Or, order by email via info@meuseypublishing.com.Or by phone: 763-208-2924.

Name_____________________________________________________________

Company__________________________________________________________

Address___________________________________________________________

City State, Zip______________________________________________________

All major credit cards accepted

YES___I want the 212-page printed book at $89 per copy.

YES___I want just the CD version for $199

YES___I want the greater value: the book and the CD together for $239.

�e new 2013 Minnesota Insurance Property Casualty Directory contains more than 200 pages of speci�c information on more than 1,200 Minnesota independent agencies, branch o�ces, national brokers, insurance organizations, regulators, managing general agencies, surplus lines brokers and many more. Just like similar directories for attorneys, engineers, physicians and other professionals, this book lists the people at the vary top of the business. If you are a serious professional in the insur-ance business, this book and CD are for you.

Sample Agency Listings:NORTH SUBURBAN AGENCIES, INC.11421 Hanson Blvd. NW763-755-2300 FAX: 763-755-3236email: nsa@nsagencies.comWWW: www.nsagencies.comOwner: Robert L. Comeau, president. Employees: 6. Key Employees:Diane Gluth, CISR/agent; Carol Whalen, CISR/agent; MariannePaul, CIC/agent; Janelle Secord, CISR/agent;Karen Wrobel,CIC/agent; Loraly Lane, CISR/agent. Companies: Allied, AutoOwners, American Collectors, CNA Surety, Harleysville, Foremost,Hagerty, Hartford, MetLife, Progressive, Safeco, West�eld, Zurich, Travelers, Dairyland, Indiana, Bristol West. Premium: $4-5 mil-lion; 60% personal, 40% commercial. Specialization: Sub contractors,home builders, personal packages, recreation vehicles. Notes: Agency started in 1982 by Robert Comeau.

Sample Company ListingNORTH STAR MUTUAL INSURANCE CO.P.O. Box 48, 269 Barstad Rd. S.

Cottonwood 56229 507-423-6262/800-622-5230email: info@nstarco.com WWW: www.nstarco.comEmployees: 210, agency force: 700 in Minnesota. Key Employ-ees: Je� Mauland, president/CEO; Joe Ho�, Ex. VP/Ex. Sec./Treas;Terry Timm, Sr. VP; Verlin Scheer, Sr. VP; Pete Hellie, Sr. VP; Mike Flugum, Sr. VP. Rating: A+ Superior, Best’s rat-ing. Financials: Assets $460 million; Liabilities $207 million; Surplus $253 million. Gross premium, $288 million, 65% personal, 10% commercial, 25%, farm. Specialization: Auto, farm, home and small commercial. Notes: Organized in 1920. Writes in Minnesota,Iowa, Oklahoma, South Dakota, North Dakota, Nebraska.Sample MGA listings:PROHOST USA, INC. 4500 Park Glen Rd., #410Minneapolis 55416 Phone 952-922-2404 FAX: 952-922-5423email: HStrommen@ProHostUSA.com WWW: prohostusa.com Employees: 10. Key Employees: Heidi Strommen, Presi-dent. Companies: Various admitted markets. Premium Vol-ume: $20 million.Specialization: Restaurants, bars and taverns. Notes: Founded in1989. Member of Target Markets Program Administrators Association. Doing business countrywide.

Dewitt A. Davidson, a 32-year-old Eagan insurance agent has been charged with felony theft by swindle for allegedly creating numer-ous fake insurance applications in order to receive commissions. In 2011 an insurance company asked the Minnesota Commerce Department to investigate Davidson, an agent who submitted ap-plications for 88 new policies from 22 people. That led to his being paid $32,088 in commissions because the company advanced 40 percent of the commission after receiving the application, regard-less if the prospective insured had paid anything. A Commerce De-partment investigator discovered that only three of the applicants existed: Davidson’s father, his sister and one actual paying pros-pect. Interviewed under Oath, Davidson allegedly acknowledged the deception and offered to pay back the money. According to the criminal charges fi led in Dakota Country last month, Davidson said that he was having money issues and “got in over (my) head . . . it was like a slippery slope. I did just one and I just did another . . .” he told the investigator. He collected his commissions in a six-week period in 2010.

-0-ACA TO RAISE ANOKA COUNTY EMPLOYEES

HEALTH CARE COSTS 2.83 PERCENTAnoka County employees will pay between 5.8 percent and 3.5 percent more for their health insurance premiums in 2014—plus another 2.83 percent for Affordable Care Act fees, according to a report from an EMC newspaper. The Anoka County Board ap-proved a proposal from Blue Cross-Blue Shield of Minnesota, which offers three plans to employees: Aware $20 Copay, which is the most expensive; Aware High Deductible; and Regional High Deductible, which is the least expensive. According to the report, 42 percent of the employees selected the Aware High Deductible, with $35 chosing the Aware $20 Copay. The increase in rates for the Aware $20 Copay is 5.8 percent for both single and family coverages. The single coverage will be $718.38 a month for the Aware $20 Copay with the county paying $590.45, while for fam-ily coverage, the county share’s of the $1,651.54 monthly premi-um will be $1,209.06. For Aware High Deductible users, the in-creases are 4.34 percent for single and 5.1 percent for family with a single monthly rate of $653.48, with the county paying $598.43, and a family premium of $1,478.12, of which the county will pay $1,236.01. The Regional High Deductible premiums will go up 4.31 percent for single coverage and 3.5 percent for family. That results in a 2014 premium for single coverage of $627.23, with the county paying $587.09, and a monthly rate of $1,417.74 for family coverage, of which the county will pay $1,243,97. The newspaper reported that the ACA fees ranged from $17.75 a month to $46.74 depending on what policies were chosen.

-0-LAMBORGHINI STORY HAS QUIET ENDING

An escapade that started with the full-throated roar of a 520-horse-power V-10 engine ended with the whimper of a guilty plea Oct. 13, Dave Hanners of the Pioneer Press reported. David “Super-dave” Juntunen, who wrecked a customer’s 2007 Lamborghini Gallardo during a late-night joyride in March 2012—then claimed someone else was behind the wheel —admitted his guilt in court to

insurance fraud and unauthorized use of a motor vehicle.“He did not give me permission to drive the car that evening,” the man said of the car’s owner, a Minneapolis lawyer who had entrusted the vehicle to Juntunen’s company, Top Gear Autoworks. Hennepin County District Judge Pamela Alexander accepted the plea and set sentencing for Dec. 11. Assistant Hennepin County Attorney Paul Scoggin said the deal calls for three years’ probation and restitu-tion to the car’s owner and insurer.

-0-INSURANCE COSTS FOR CITY OF PRINCETON

The Princeton local newspaper recently gave some insights into the cost of insurance for a 4,600 population of Princeton, a city in east central Minnesota. According to a report by Joel Stottrup, the city’s premium rose about $18,000 this fi scal year. The main reason for the increase was that the city’s assets have risen from $13 million to $34 million, mainly because of an additional $14 million in new taxable property at the city’s wastewater treat-ment plant. The premium for blanket property coverage jumped about $9,000 to $64,134 while the city’s liability premium also rose about $9,000 to $34,377 because of projected higher sales at Princeton’s off-sale liquor store. The city did see some slight premium decreases, as auto liability dropped $213 to $7,249 and auto physical damage declined $243 to $7,358. Rollie Natvig of the Princeton Agency said that the League of Minnesota Cities Insurance Trust actually reduced its rate from 27 cents to 19 cents for $100 of insurance but the increased value of the assets raised the total premium. Natvig also told the council that because the LMCIT has determined that statewide 20 percent of member cities claims arise from their police departments, cities without police departments were effectively over paying. Natvig also reported that the insurance trust returned a $32,795 dividend to Princeton because of lower claims. The news report further noted that the city council decided not to increase by $1 million to $2.5 million its general and auto liability coverage. To do so would have cost $13,056.

-0-IRON RANGER’S LIFE COMPANY MOVES TO IOWA

Fidelity & Guaranty Life Insurance Co., a presence in Baltimore since its founding 54 years ago, will move its headquarters to Des Moines. The life insurance and annuity company, which employs about 150 at its Fleet Street offi ces in Harbor East, said it will maintain a presence in Baltimore, but its future growth will occur in Iowa. Since 2011, Fidelity has been owned by Harbinger Group, a publicly traded investment company headed by disgraced hedge fund adviser Philip A. Falcone, whogrew up in Chisholm on Minnesota’s Iron Range. In August, Falcone and his advisory fi rm, Harbinger Capital Partners, agreed to pay more than $18 million as part of a settlement with the Securities and Exchange Commission. Regulators subsequently barred Falcone from having direct orindirect control over the operations ofFidelity’s New York subsidiary for seven years. n

Felony Charge For Collecting Commissions On Fake Policies

this just in

Philip A. Falcone

Minnesota Insurance Page 19Minnesota Insurance Page 18

612.253.6500 | www.eidebai l ly.com

Experience the Eide Bailly DifferenceAs a Top 10 Audit Firm ranked by

A.M. Best, Eide Bailly has been serving the insurance industry for over 40 years.

Audit | Tax | ERM ConsultingForensic & Valuation | Technology Consulting

Joe Pope, CPA

“Our client service sets us apart.”

*

Bringing buyers and sellers together.

Bringing buyers Bringing buyers

Rudnik Surety, Inc.Building Profi table Relationships

• Contract Bonds

• License & Permit

• Probate & Civil Court

• Fidelity/ERISA

• Hard to Place/Poor Credit

Contact Nick Newton at: nick@rudniksurety.com

651-705-7960 Fax: 763-786-9444P.O. Box 120176 New Brighton MN 55112

3920 Nicollet Ave S. Minneapolis 55409 612-823-7257

www. mulroysbodyshop.comdonna@mulroysbodyshop.com

You can s

dd

send your insureds to us with confidence.

Pat and Donna Mulroy

In just six years, Brian Emswiler, owner of Long Term Care In-surance Advisors in Eden Prairie, went from being a new mem-ber of NAIFA Minnesota to president of one of the oldest and most prestigious agents organizations in the state. Such rapid ascent, however, is nothing new for Emswiler who set sales re-cords early in his career.

His first major assignment as a new NAIFA member was to head the group’s Insurance and Financial Advisors Political Action Committee (IFAPAC). The PAC had been contributing about $30,000 per election cycle. By injecting some innovative marketing into the process, however, Emswiler raised the con-tribution to $112,000. Putting that total in perspective: the Min-nesota chapter raised twice what the typical NAIFA state PAC did. What makes the Minnesota figure even remarkable, is that it is being measured against some heavy hitters. The National IFAPAC, which combines money from state chapters, ranks in the top one percent of all 3,700 registered PACs nationwide.

Emswiler’s marketing secret for the PAC: he gave the contribu-tors some immediate benefit for their money. “The first year I bought a four-wheeler and raffled it off to the members who bought tickets,” he explained, “with all the money going to IF-APAC.” In ensuing years, Emswiler offered equally attractive prizes such as ipads and mopeds. But perhaps more important, the marketer in him stepped forward. He began providing vol-ume discounts for ticket purchases: one cost $20, but a stretch of 10 could be bought for $75 with a stretch of 20 going for $100. With that incentive, member contributions accelerated. The result was that everybody won in the sense that even if a ticket buyer did not get the prize, the result was more money for the PAC, which would do the buyer more good in the long run.

-0-That Emswiler had an inclination for marketing was under-standable. His stepfather, who was in the insurance business, had relatives that created the famous Burma Shave road signs that captivated highway travelers for between the 1920s and 1950s with ditties strung out over several miles like:Past school houses....Take it slow....Let the little....Shavers grow.... Every Sheba....Wants a sheik....Strong of muscle..Smooth of cheek....Burma Shave! So, creativity and marketing ideas were no strangers to Emswiler while growing up in suburban Eden Prai-rie. What he thought he wanted to be, however, was a geologist.

But then came that aptitude test that the very progressive Eden Prairie school district administered to eight graders. Emsilwer’s results showed that he was best suited to be: an insurance agent. An insurance agent? “I don’t think so,” he thought and parked that result in the back of his brain. But when he graduated from the University of Minnesota’s Duluth campus with $23,000 in student loan debt in the late 1980s, a career in the comparatively well-paying insurance business suddenly looked a lot more appealing.

He started working for John Dewey, a major agent with Franklin Life who, Emswiler said, was an excellent mentor whose payroll check put a dent in the student loan. But Emswiler found that rath-er than life insurance, he was better suited for the health field. In short order he eventually wound up at the Small Business Benefits Agency, a field marketing organization for Fortis Health (which later became Assurant Employee Benefits) that designs benefits programs.

Success was immediate. SBSA, which had 40 agents, became the top sales office in the country for Fortis. Emswiler led the charge with simple strategies. One was to go to areas with nu-merous small businesses and simply slip a sheet with rates under the door. His effort was helped immensely because Fortis had by far the lowest rates at the time. When business owners saw them, they called the office, which flourished. Some of the commission checks were so substantial that the unbelieving company president took to signing them personally. But, unfortunately for Emswiler and his colleagues, those very low rates not surprisingly had to be changed the next year to keep Fortis in business.

That is when Emswiler opened his own agency, Long Term Care Insurance Advisors in Eden Prairie, and began selling that prod-uct, which was quickly gaining popularity. His firm now also sells health insurance, Medicare supplements and critical illness cover-ages. His location also carries a story. While in grade school in Eden Prairie, Emswiler’s school bus regularly went by the Prai-rie Lawn and Garden store on 78th St. One day the grade school student said to himself: “I am going to buy that property”. Even though he had no idea what business it would be for, the vow in-dicated that an entrepreneurial seed had already been implanted. After his agency had success at a different location and needed to expand, Emswiler approached the store owner to see if he could buy the land. Unfortunately it was not for sale. But then he did the next best thing: he located his agency in a business park on Venture Lane near the intersection of Highway 5 and Eden Prairie Rd, within close view of the site he had envisioned as a youngster.

-0-Even though Emswiler does not sell life products, he joined Min-nesota NAIFA after he was invited in 2007. He is now the second primarily non-life agent to head the organization in successive years. Last year another LTCI general agent, Deb Newman, was president. Both Emswiler and Newman got their starts in the life insurance business.

Emswiler and the association are facing a number of important issues during his presidency. Foremost, may be Stranger Owned Life Insurance, which is expected to be heavily debated at the next

legislative session. NAIFA Minnesota opposes the concept. Em-swiler points out that the association’s legislative effort is one of the biggest benefits to members . . . as well as non-members. “For example,” Emswiler said, “our Executive Director Todd Johnson did a great job pulling together the various associations in the Agents Coalition that was set up to have input on MNsure. The Agents Coalition was crucial, for example, in making sure that our commissions will come from the insurance companies—not be controlled by the MNsure board.”

In a major change, the association is moving its annual NAIFA Minnesota Day with the Million Dollar Round Table next spring to the new Radisson Blu Hotel at the Mall of America. “It is time is to give the event a new look,” Emswiler explained. n

MarketingMan

Cover Story Cover Story

Brian Emswiler’s skills propelled him to the NAIFA-MN presidency in six Years.

Brian Emswiler started in the life business, but quickly found he did better in other lines. He still employs many of the strat-egies he learned from his early life insurance mentors.

Minnesota Insurance Page 20 Minnesota Insurance Page 21

Long-Term-Care Insurance Long-Term-Care Insurance

Do you want to earn more money, close more sales, but...• You don’t have enough leads or they are weak.• We have more leads than agents! � • You call on prospects who don’t remember sending in a response card. � • You seem to run out of leads.

GOLDENCARE USA is here to help you...Right Now!You can count on...• A continual supply of pre-qualified leads.• Prospects who know you’re going to call.• Prospects who are professionals, like nurses, have a greater propensity

to buy, and have resources to purchase long-term care insurance.

To maximize your internet sales efforts, you’ll also receive...• A Laptop (provided at no cost to you). • An array of effective marking supplies. � • Licensing assistance - you can contract with multiple carriers

at once with one easy form.

At GOLDENCARE USA, Your Success Is Our PriorityOur lead program is so successful - we have more high quality,

association leads than we have agents to work them!Want flexibility?

We offer internet selling, so you can work from home or your office. Whatever is more convenient for you!

If you want a brighter future and know how to sell long-term care insurance, we can give you what you want.

Please Contact Me Today!Tim Casey - Vice President - Career Agent Development

(toll-free) 800-842-7799 - (local) 763-525-1111www.goldencareagent.com - timc@goldencareusa.com

A New Wave of Insurance SalesTHROUGH THE INTERNET

(or Face-to-Face)

GOLDENCARE USA Can “Fill the Bill” For You

The good news is that GOLDENCARE USAʼS new long-term-care insurance program for nurses has now expanded to 10 states, with several more expected to join soon, says Tim Casey, Vice President of Career Agent Development for the company.

“The growth has exceeded all expectations,” said Casey, who re-cently attended a nursesʼ convention in South Carolina.“Long-term coverage is extremely popular among nurses because they (perhaps more than anyone else) recognize its importance and immense value. And thatʼs a significant boon to agents—even P&C agents—looking for more business.

“One new GOLDENCARE USA agent who just started selling the nursesʼ program generated $36,000 in new premium during the first three weeks of October. Although the annual average pre-mium for most sales was between $2,000 and $2,500, nurses who were married to physicians were able to spend as much as $5,000 a year. The thing to remember is: If you find the right audience, long-term-care insurance can be a very easy sale,” he said.

According to Casey, GOLDENCARE USA continually enjoysan inexhaustible supply of leads that are primarily generated by nurses themselves at various state association conventions and gatherings. Nurses complete cards that include contact infor-mation and the best time to call—an important consideration as nurses generally work irregular hours.

To maximize sales opportunities, GOLDENCARE USA also pro-vides first-class training and support. For example, agents have access to video tapes that demonstrate how to achieve an effec-tive presentation, as well as phone scripts, manuals and other sales-related material. To ensure optimum agent support, GOL-DENCARE USA employs a 22-member support team at its head-quarters in Plymouth. The staff helps establish agentsʼ email sys-

tems, takes care of licensing, and other routine needs that enable the agent to concentrate solely on sales. Keeping up with the times, GOLDENCARE USAʼS training is mainly online-based and much of it can be accomplished at the agentʼs convenience.

Casey did point out that although sales arenʼt always a“slam dunk,” agents who are persistent have a very high closing ratio. Another attraction for agents is that they have significant flexibility in their work schedules. Many work from their home offices…and even their recreational vehicles or boats. With the Internet, thereʼs no need to be office bound any more, he noted.

GOLDENCARE USA also has a full-service resource center for independent agencies who concentrate on lines other than long-term-care insurance. These agencies use a wide range of the re-sources in varying degrees. Some designate a specialist in their agency to receive extensive long-term care training. Others simply take advantage of GOLDENCARE’s products and dedicated sup-port staff to oversee their customersʼ needs.

“At GOLDENCARE USA, our top priority is our agentsʼ success —and we are happy to serve each agent and each agency in any way we can,” says General Manager Mike Lynch. “In addition to long-term care insurance and the latest product lines from Mutual of Omaha, GOLDENCARE agents can maximize their sales op-portunities with critical illness, final expense, life insurance, an-nuities, medicare supplements plus medigap, Advantage and pre-scription drug plans.”

GOLDENCARE USA was Medicaʼs leading sales agencystatewide during their open enrollment period. Lynch pointed out that the company is now writing the majority of long-term care on Mutual of Omaha paper. “Mutual of Omaha is an iconic brand that is very easy for an agent to sell,” says Lynch, “it is a top-ratedcompany that virtually everybody knows about.” MutualCareʼs newest product line offers compound inflation ranging from one percent to five percent in .25 increments.

“This will help many young families purchase a lower amount of inflation at the onset, increasing it with a buy-up option,”Lynch said.

Agents interested in a career opportunity can contact Tim Casey at timc@goldencareusa.com. Agents seeking brokerage opportuni-ties can do so by contacting Todd Anderson, Vice President of Bro-kerage Sales at todda@goldencareusa.com. Agents can also call 763-525-1111 or (toll-free) 800-842-7799, or visit GoldenCareʼs agent website goldencareagent.com n

A NEW WAVE OF LTC INSURANCE SALES AWAITs

Pinnacle Information Services

Advertisement Redesign 3"w x 3.5" high

A New Wave of LTC Insurance Sales AwaitsOne GOLDENCARE USA agent who just started selling the nurses’ program

generated $36,000 in new premium during the first three weeks of October

Minnesota Insurance Page 22 Minnesota Insurance Page 23

smile!

Hazeltinad.qxp:Hazeltin Ad 2/10/10 9:24 AM Page 1

Long-Term-Care Insurance

Shift your LTCI sales into overdrive! Call us today!

612-454-4400 www.NewmanLTC.com 6636 Cedar Ave South | Suite 100

Richfield, MN 55423

All roads lead to Newman Long Term Care!

The upper Midwest’s premier resource for long term care insurance for over 20 years.  Work with us through our brokerage, or team with a LTCI specialist through our Business Alliance program.  Either way, you will discover that no one is better at helping you spread awareness about the need to plan for long term care.   

Long-term-care insurance is entering a new era: affordability. Con-sumer research has confirmed what agents already know: Cadillac-type policies with fully loaded benefits are fine for the people who have them, but for people now looking to buy: price is often the deciding factor.

Responding to that research, companies have designed new plans with lower-priced entry points that should be easier for agents to sell.

“If you get the price manageable, many more people will buy long-term-care insurance,” exclaims Deb Newman of Newman Long Term Care in Richfield. “Studies show it.”

Recent research shows that the typical consumer without LTCI coverage thinks the annual premium for a 55-year-old couple is $7,000 a year, Newman said. “We also know that $4,500 a year is what agents today are quoting that same couple because that’s what they ask for. What is really enlightening is that those in their fifties told Forbes Consulting Group another story entirely—they indicated that they are most willing to pay a combined price of $2,400 annually. That comes out to just $100 a month per person,” Newman said. “That’s almost a $5,000 difference between what they think coverage costs and what they are actually willing to pay. Agents have to adapt to that.”

For people under 50, there’s another number to know, Newman’s Marketing Manager Craig Roers said. “The sweet spot for poten-

Selling MORE long-term-care-insurance by selling LESS?

tial buyers under 50 seems to be a premium around $75 per month. In that same survey, there was even a 14 percent uptick in poten-tial sales if you reduced the quote from $80 a month to $75. You would not think $5 a month could make that big a difference in buying habits, but it does.” Those between 59 and 65 are will-ing to spend $150 per person per month, he added. While many opt for the lower price points, the study also showed that about 22 percent of the respondents (in households with income above $70,000 and over $100,000 in investable assets) were comfortable paying higher prices for more extensive, higher-price traditional LTCI coverage.

“Reasonable prices take the edge off buying,” explains Newman. “As the buyers’ circumstances change . . . and as their income goes up . . . they can add coverage.”

Newman said the industry has responded by developing so-called starter policies, often with a three-year option to increase cover-age that helps avoid sticker shock. Other innovative policies offer interest adjustments (similar to dividends) contained in policies where the buyer assumes more of the risk. Another advantage of starter policies—and a strong selling point for it—Roers notes, is

that the purchase today protects insurability and purchase options in the future. “One of the hardest things an agent has to tell a client is that they are no longer healthy enough to buy,” he said. Newman said that her firm’s experience is that a key word for buyers of LTCI is “permission.” “If they have the coverage on themselves,” she explained, “it gives their family permission to go ahead and hire professional care so they do not have to do it themselves in order to save money. LTCI buyers tell us that ‘per-mission’ is the best gift they can give their family, friends and other potential care givers.” Newman added that while the new products represent a great sales opportunity, many agents are busy with other lines. “Those agents would be a good fit to team up with one of our Long Term Care Specialists who split all new and renewal commissions on a 50/50 basis,” she said. “A partnership with us enables agents and brokers

Pinnacle Information Services

Advertisement Redesign 3"w x 3.5" high

Long-Term-Care Insurance

This year several major long-term-care insurers have made major changes in their products. Genworth, for example, has switched from unisex to gender-differentiated pricing. Also coming on the market are shared-benefit policies as well as those that combine long-term-care insurance with life insurance. There are also poli-cies offering substantial discounts for couples who purchase the coverage and still others with CPI-adjusted inflation protection that trims premiums.

The changes make it difficult for both agents and their potential buyers to keep up. Agents are especially aware of the challenge because they know that it is important to cross-sell an account in order to maintain it. But they also have to concentrate on their other lines of coverages that can be equally complex. Greenhaven Marketing understands that challenge and has positioned itself as a prime resource for agents looking for support when it comes to providing long-term care insurance and supplementary products.

“We understand that it is hard for agents and brokers to keep up with all the changes in the products they sell today,” said Green-haven founder Jerry Dock said. “That is why we have staked out a specialty as the people to see when agents need a resource for long-term care insurance or similar supplemental products. Using our highly experienced Greenhaven staff enables an agent to ef-fectively cross-sell existing accounts.”

The Anoka-based firm is the Twin Cities’ second oldest long-term-care insurance marketing organization. It has been supplying Min-nesota agents with a wide array of products since 1976 and also has a major presence among community bankers, providing not only long-term care insurance but also life insurance, group medi-cal plans, disability and dental coverage for bank customers.“We have worked for years with more than 200 local Minnesota banks,” explained Dock. “It is a unique environment. The deci-sion-makers are conservative and they feel a special responsibility

toward their customers. We are honored that they have trusted us to help them provide their clients with the products they need.”Many Minnesota agents and brokers have come to view Green-haven as a resource they can rely on, much the same way a medical general practitioner calls in a heart specialist. Another attraction is that Greenhaven has a dependable and recognizable stable of carriers.

“At Greenhaven we know long-term care insurance and supple-mentary products,” Dock pointed out, “so we can work with an agency to provide for their clients. We also understand how cru-cial it is to follow the agent’s direction. We will do only as much—or as little—as the agent wants. We are dependable and have es-tablished a reputation for doing precisely what the agent directs us to. Usually that means doing a lot of the routine work such as an-swering all the questions and getting out the mailings and the poli-cies. We also provide highly competitive commissions, which is another reason we have been serving them for over three decades.”

For more information contact: Jerry Dock at Greenhaven Marketing in Anoka (email:wildcard@ greenhavenmarketing .com or 763-421-1193.) n

c

Newman Story continued from page 22

Continued on next page

Dock: New Policies Respond to Changing Needs of LTCI Marketplace

Genworth has switched from unisex to gender-differentiated pricing. Also coming

are shared-benefit policies as well as those that combine long-term-care-insurance with life insurance. Other policies offer substan-tial discounts for couples who purchase the coverage and still others with CPI-adjusted

inflation protection that trims premiums.

‘If you get the price manageable,

many more people will buy long-term-care insurance.’

-Deb Newman

to provide all the products and services they need to keep a client, while enabling them to concentrate on their strongest lines with the knowledge that we are exclusively long-term care, which means we sell no other products.” n

facebook.com/acuitywowFor All That Matters

See what they’re saying at: www.acuity.com

Have u heard the latest about ACUITY?

YES! Every1 is talking about them : )