Nebraska-Iowa UFAA ECHO Chapter 19 Newsletter

November ~!007
Nebraska-Iowa
UFAA ECHO Chapter 19 Newsletter Thi.~very
Is Not l\.cceptable
Listen up, this is not acceptable behavior. Over and over again, UFAA is receiving thE~ same
complaint from dm's, company lemployees, members and non-members regarding the thievery of
existing policyholders. It is causing resentment and many agents are starting to believe that the
company is condoning this type of behavior. Thievery is non-productive and is certainly not the
way to build a long term successful agency.
OM's are under tremendous financial and policy production pressure to ensure that they're new
agents succeed. This in itself is not a bad incentive to become creative and think outside of the
box. However, some dm's havE~ chosen to try a shortcut and therein lies part of the problem.
New agents wanting to fast track to success are soliciting existing policyholders instead of new
business. Instead of cold calling, purchasing leads or developing circles of influence, the new
agents are provided policyholder lists and they exclusively target these existing policyholders.
Now, one could argue that if there is unwritten business in a household, that it is fair game. But,
that's a different discussion for another day.
What is happening is that agents are not necessarily writing new business. They are canceling
existing policies and writing new business just to add a discount or change coverage. This
serves a two-fold purpose. It {;;lives the a~Jent new production count and it allows them to escape
paying the existing agent the standard one year agent transfer commission. Back in August an
Omaha District Manager issued an e-mail to his district asking that his agents refrain from
this practice and if caught, he will recommend termination to the Nebraska State Office.
Kudo's to this dm!
This whole situation is problematic in that there really is no new business being written in these
situations. Shouldn't this be of interest to the management company? Primarily, because the
existing policyholder is probably paying fewer premiums and thus the company loses. Secondly,
the policyholder is being charoed an unnecessary additional policy fee. Thirdly, the agents are
stealing from each other and that type of ethical behavior cannot be tolerated. Fourthly, the
losing agents are becoming angry because they are not receiving satisfaction from their dm's and
state office's when the thievery is presented.
UFAA now appeals to the management of Farmers to review what is going on across thE~ United
States and issue an edict that this wholH situation is counter productive and needs to stop and
follow the lead of that Omaha District Manager! (credit to National UFAA)
UFAA ChaptE~r 19 extends its sympathy to the Lyle Willow family_ LyIE~ passed
away on Au!~ust 11 th and was one of the early founders and officer's of our
chapter goin~J all the way back to the 70's. For those of us that grew with Lyle, he
will be greatly misse~d not only for his friendship, but also for his insurance
expertise.
run! See
on the 19th hole!
Mixed bag!
# Thank you goes out to Jim Slaughter from medjames for taking the time to speak at our
September UFl\A meeting.
schedule is higher.
Medjames will take what Farmers will not and their commission
# Mark your COD list and please remove Park Drive from it.
# Independent agents appointed with Bristol West in Nebraska receiv.e 14% commissions on
th
th
new business and then 11 %. on renewal. - Bristol West entered Nebraska on July 5 , On the 6
st
they took a 5% rate increase, on the 31 they took another 5% rate increase and then on August
20tn they took a 4% rate increase. (source - our independent agent friends in Omaha)
# Did you know that UFAA. offers free e-mail?
# With the passing of L.yle Willow, will the issue of IBNR credit ever reach a conclusion?
th
# Going back to our last state meeting on August 28 , it was the Bristol West Rep who stated,
"that it was FIG not Foremost that set the commission schedule."
#
Effective 11/16/7 Nebraska will see a 9% rate increase for Protector Plus, Special
Renters, Townhouse/Condo and Landlord Protector policies. And Farmers wonders why our
long-term households are leaving us even when we are profitable?
Pete Greve
. . . . . -SAr-E6UARD~
l)ox
Calendars .. {)ens & Hi-Lighters
Presentation folders - l)ags
Insurfince Cclrd find Policy Holders
Trfivel t\ugs .. Portfolios .. t\(lgnets
Kitchen lltensils Apparel & flore
C~olf
45
Omaha,. NE 6& 1
toll-free 500-44,2-0016
phone 402-696-01 2)
fax &OO-5Q6-4 587
Items
pgreve@gosafeguard.com
www.safechoicemcrketing.com
and have a low credit score, are you more
likely to get into auto accidents? A recent
report to Congress has confirmed such a
correlation but also revealed a more con­
troversial finding: African -Americans and
Hispanics are far more likely to hold those
low credit scores. It's set off a new round
of complaints that such statistics serve only
to discriminate against minorities.
The auto insurance industry has long
maintained that deadbeats
are accident-prone and has
pushed state legislatures to
allow credit scores to be a
bigger factor in setting auto
premiums. Most states now
restrict their use, and Cal­
ifornia has banned the
practice.
But a recent report by
the Federal Trade Commis­
sion, which studied some 2 million cus­
tomer records, found that people with
credit scores in the lowest decile, or 10%,
generated twice the claim costs of those in
the highest decile. This relationship held
even when researchers looked only at white
customers, or conversely, within ZIP codes
identified as low-income neighborhoods.
Consumer groups zeroed in
on the fact that in the FTC
study 26% of blacks and
19% of Hispanics were in
the lowest decile of credit
scores, compared with
roughly lO% each for non­
Hispanic whites and Asians.
Credit scores, they com­
plained, are just being used
as a proxy for ethnic back­
ground-and will be used to
justify charging higher prices to minority
customers or refusing their business alto­
gether. "Its institutionalized redlining:' says
Birny Birnbaum ofthe Center for Economic
Justice in Austin, Tex.
The FTC offered several theories for why
people with low scores get in more accidents.
Perhaps financial troubles are distracting,
or poor people might be inclined to fUe
an insurance claim instead of paying the
loss out of pocket. Other research suggests
people who take financial risks tend to
be risky in other parts of their lives. ''A
consumer who is prudent in financial mat­
ters might also be cautious in other matters
related to insurance:' the report says.
FTC Commissioner Pamela Jones
Harbour, a Bush appointee, wasn't happy with
the FTC study; she said it was too small.
Patrick Butler of the National Organization
of Women Foundation says the correlation
exists because poor people have fewer cars
and put more miles on them, thereby increas­
ing the likelihood they'll get into an accident.
But then, is it unfair for people who drive
more to pay more for auto insurance?
Whatever the cause of differences in
scor~s, the FTC estimates 59% of customers
would save money if auto insurers based rates
entirely on credit scores, because payouts
would more closely match premiums. But the
majority of blacks and Hispanics would see
an increase.
The Federal Reserve also rejected the idea
that credit scores are a proxy for race in
a companion report in mid-August. That
study, based on credit repOlis on 300,000
individuals, found that blacks and Hispanics
tend to have lower credit scores than others.
However, suggests the Fed, this is not nec­
essarily racial discrimination at work, since
these groups default more often on loans. In
statistical terms: Default rates explain away
group differences in scores, leaving no resid­
ual impact that can be attributed to race. F
Proxy Fight Credit scores seem to predict car accidents and
loan defaults. Consumer advocates say the~y also
facilitate racial redlining I By Daniel Fisher
I
F YOU ARE A SLUGGARD IN PAYING BILLS
FOR B E S
SEPTEMBER 17, 2007
New agents are always welcomed to join! Please contact any officer for an
application.
Continuing education credits - Please contact Dave Strunc at 330-3333.
members and for non-members the cost remains at $4.00 per credit hour.
Courses are free to
Thank you goes out to our advertisers for their continued support!
When FIG rejects it, or doesn't
offer it, UFAA members now
have access to:
• Coverage for vacant residential
and commercial buildings.
• Commercial outlets.
• AccidenUsickness policy.
• Agent contract value loans up to
100% of contract value.
-Agents
HeipirJ'g
Agent~)®
On the first day of opening his brokerage firm,
the new business school graduate was excited
to see his first potential customer walk in.
Wanting to impress the man, he quickly picked
up the phone and began shouting buy and
sell orders in huge quantities, demanding fast
service and confirmations faxed immediately!
Slamming down the receiver, he spun his
chair around and said to the visitor, "Yes, good
morning, can I help you?"
"Urn, yeah," said the man. "I'm here to hook up
your phones."
Need legal assistance? Only if you are a member of UFAA, will your local chapter
and or your national office offer assistance to you and or your attorney.
Help your clients find a UFAA agent when they move out of state'. Call 1
800 275-8668.
If you wou ld like to vo ice your opinion, submit an article, or to advertise in our nE~wsletter , please send your
letters to UFAA Chapter 19 PO Box 642244 Omaha NE 68134. Your letters must include the writer's name,
address, phone number and be signed in the writer's own handwriting. We will make every attempt to
publish your letter exactly as submitted. We promise you will be given final approva l before publication.
You can request an alias be used at the time of publication if desired.
The UFAA Echo of Nebraska is published for the United Farmers Agents Association, Chapter 19 in Omaha
Nebraska . The United Farmers Agents Association and the editor, neither assumes any responsibility for
the accuracy of the articles or advertisers, or any liability arising from reliance upon them .
The tax documentation package that UFAA makes available for the IRS is for
UFAA agents who have quit, retired or were terminated. If you are not a member
of UFAA, then be prepared to pay m10re in taxes if any of the above takes place.
Roughly I-Ialf of Adult Americans Would Rather Renew their
Drive'r's License Than Asses their Life Insurance Need
Would you rather have a root canal or baby-sit sextuplets? If neither seems appealing , consider
that many Americans would choose either scenario if it meant they could put off looking into their
life insurance needs. The results of a Ilew survey released today by the nonprofit Life & Health
Insurance Foundation for Education (LIFE) show that while the majority of Americans feel that life
insurance is a necessity, many would do just about anything than take the first step to obtain it.
Conducted in support of Life Insurance Awareness Month in September, the LI FE survey found
that 47%of adult Americans prefer to go to the motor vehicle office to renew their driver's license
than investigate their life insurance needs. One in five said they would rather go to the dentist for
a root canal; 1511'0 said they would baby-sit sextuplets and 11 % preferred to get stuck on a NYC
subway with no air condit ion ~ ng .
Despite these results, Americans do recognize the importance of insurance. Nearly three in four
Americans consider life insurance to be a necessity to just 18% who consider cable or satellite TV
a necessity.
"People say tha life insurance is a necessity, but their actions tell a much different story," said
David F Woods, CLU, ChFC, president of the LIFE Foundation. "Many Americans won't hesitate
to shell out $30, $50 or even $100 a month for cable TV." "But when it comes to setting aside
money for life insurance, they claim it's to expensive, Americans need to get over their reluctance
to focus on their life insurance needs, re-assess their spending priorities and stop gambling with
their fam ilies' financial futu res." (http://www.insurancenewsnet.com 9/1717)
Thank you home office for your 9/14/7 Breaking News bulletin on
Commission corrections for agent and DM folios. Action well taken!
Looking for a Health Insurance PARTNER you can count on? INDIVIDUAL C'R GROUP! HEALTH-DENTAL-LIJ~"E-DISABILITY
MEDICARE SU1~PLEMENT! MEDICARE ADV£tNTAGE PPO! MEDICARE PART D! LONG TERJt([ CARE! We provide excellent agent/customer service and
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FOR MORE INFORMATION/(2UOTES or CONTRACTS CALI.; PREFERRED MARKElrING ASSOCIATES
920 South 107 th Avenue Suite 200
Omaha, NE 68114
1-800-777-0723
Dashboard
Agent change on policies? If the policies are on easy pay, you need to call our service center
and have them chanfle the agent of record on the easy pay account. You can see the
change before and aftHr by accessing the billing summary screen, then putting your cursor on
the additional information box.
• Time out error in the imaging center? No need to m-image, just cursor back and check your
document Jist.
•
LifeNet? If you're having trouble retiring auto/home post card leads, do not cl ick on retire
permanently. Instead, click on the blue name and then click on "set for no contact option."
• When dwelling coverage is lowered prior to the renewal date, the cornputer may still be billing
for the old premium amount. W hat is on your home summary screen (which is correct) may
be different than what is on the billing summary screen. Per our service center, the computer
is not correcting the old to the new.
• Dashboard slowdown on a Monday afternoon's? Its all across the United States!
Which cars are stolen most often in Iowa?
Which cars are stolen most often in Nebraska?
1. 1994 Chevrolet Full Size elK 1,500 Pickup
2. 1996 Chevrolet Blazer
3. 1992 Ford F150 Series
1. 1993 Chevrolet Full Size elK 1500 Pickup
2. 1991 Chevrolet Blazer
3. 1988 Oldsmobile Cutlass
4. 1995 Pontiac Grand Am
5. 1997 Chevrolet Cava lier
6. 1995 Oldsmobile Cutlass
4. 1993 Jeep CherokeelGrand Cherokee
5. 1993 Ford F150 Series
6. 1994 Saturn SL
7. 1997 Ford Taurus
7. 1991 Ford Explorer
8. 1991 Ford Explorer
8. 1994 Honda Accord
9. 1994 Dodge Caravan
9. 1999 Chevrolet Cavalier
10. 1991 Chevrolet S-1 0 Pickup
10. 1998 Dodge Ram Pickup
http://WYNW.statefarm.eolniinsuraneel auto _ insuranee/nie bears/nebraska.asp
2007 Chapter 19 Officers
President
Tom Dal1ulick
5154 N 90 St
Omaha NE 681:34
Off 402 572-92:44
Fax 402 572-9491
tndny77 U7)hotmai I.com
Treasurer
Dave Strunc
2707 S 134 Ave
Omaha NE 68144
Off 402 330-3333
Fax 402 333-97'99
dsteeitup@cox.net
National Executive Board Member
Director at Large
Jeff Acklle 2210 N 91 Plz Omaha NE 68134 Off 402 391-1979 Fax 402397-6798 jeffrey@acklie.net glennbeverly@hotmaiL.com
Vice President
Glenn Cochrane
12814 Emiline St
Omaha NE 68138
Off 402 895-1986
Fax 402895-7984
Secretary
Bob Queen
2200 Peoples Rd # C
Bellevue NE 68005
Pepper . . . and Salt
THE WALL STREET JOURNAL
Off 402 292-7222
Fax 402 292-0808
bobgueen ins@yahoo.com
"Stop stalling. It's okay to give
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WHO
WHAT
WHEN
Se habla espanol
\'VHERE
WHY
Who in our home office is addressing the issue on the loss of our long-term households? What is happening to the drop in customer service with ServicePoint and HelpPoint? When will home office take the lead and address the issue of new agents going in and stealing veteran's agents books of business? Where is Farmers headed in auto/home pricing? Why the 3 rate increases with Bristol West in less than 47 days in the Sate of Nebraska? It's the Law
Federal law prohibits OM's and all management company personnel from discouraging
agents or threatening agents that belong to or d4~sire to join any organization. (UFAA) If
your rights have been violated , contact the National Labor Relations Board located at 2948
nd
Jackson Federal Building 915 2 Ave. Seattle WA 98174-1078. Reference sections 7 and
71 under the National Labor Relations Act. (most libraries have a copy of this law) Also,
please send this organization a copy of your letter.
The postal department has similar laws. If you cue in a district office and do not receive
your copy of our newsletter and or our National Voice publication, then contact your local
postmaster. You have rights! Let neither t he company nor any of its officials t hereof;
deny you your rights.
Your insurance for a great car. @ ertz Local Ii)diti()n~ can help anyone get bac},- on the road \vith:
- Special insura,nce replacenlent rates
• I)irect billing to insurance conlpariies -Free picl{-up and delivery* • Free unlinlited ltuilea,ge oninsnrance replacenlcn t rentals
• 1\ \vide selection of clean, current-model vehicles
• 24-1Iour li:n"lergencyRoaciside l\ssist<'lnce
@ o contact one of the locations throughout the FrontH.t:-ll1gc
call 1-800--704-4473.
fl/lll?t'?
Local Edilion~
$C ustonlc r pick-up and car return is available at participating locations i n local arca only.
He r tz rents Fords and other fine cars.
®REG.
u.s.
PAT. OFF. 02002 HERTZ .sYSTKM . INC
Happy retirement wishes go out to Roger J~nderson. Great run Roger!
When your CE requirement rolls around, consider the mold class offering from ServPro. You will
get a different perspective of the mold issue by those adjusters who are in attendance. Highly
recommend this offering. - Tom Dahulick
Where can an agent go and exchange information from agents in other districts from both Iowa and
Nebraska and further hear what is happening on the Independent a~ent side? None other than a monthly
r
Iowa/Nebraska UFAA meeting. Our monthly meetings are held the 3 Tuesday of each month at Garnbino's
7202 Giles Road Lavista Nebraska. 11 :30am to 1pm. New agents welcomed! For non-members,
your lunch is free for our November meeting. RSVP to Dave Strunc at 330­
3333.
Posted Office Hours?
Ever wonder why clientele leave you when the issue is not rates? Ever get tired of your fellow agents
complaining to you over lost clientele, when you know deep down that the other agent is only in their office
4-5 hours per day. Don't blame Farmers! Worse yet, how many agents pass on mo re and more of
their work to their staff and expect them to do it, while they are out shopping, playing golf, gambling, fishing,
etc.,.
Don't blame Farmers if your employeE~ quits!
Several years ago, State Farm did a study and determined that the majority of clientele that le'ft the company
was due to the fact that the agent was not keeping regular office hours and in turn the agent was passing
more and more of their work onto the staff. Clients want to work with the agent not the help. So, ask
yourself. Do I have posted office hours? Do I really pass my work off onto my staff?
If you want to find out a person's faults, praise
them in front of their in-laws.
Ever notice that people who try to give you
advice never seem as intelligent as those who
ask for yours?
Computer and ~Jetwork Professionals
Full-Service, Locally-Owned
SURETY Technologies
Scott Isaacson
402-896-4261
isaacson@suretytek.conl
Jeff Zimmerman
402-597-1554 jdzimme@suretytek.com
We work to bui ld long-term relationships with our clients to support the secure, reliable and efficient operation of your computer systems and networks. Our Services
Troubleshooting a failed or failing system to solve the problem. Securing your computers and network. Assessing an existing or proposed network or system. Implementing new computer or network technology. Monitoring systems and networks. Training you and your staff. Circle of Dependability Shops Omaha
Elkhorn
AA Collision Repair
Inter-Tech Collisic)n Center
4902 S 33 St
Omaha NE 68'107
402 734-7705
1120 N 205 St
Elkhorn NE 680.22
402 763-9940
B Street Body Inc
13222 F St
Omaha NE 68144
402 333-9872
norma@bstreetautobody.com
Dave's Autci Body
th
Papillion
Thorpes Body Shop
546 N Jackson 5t
Papillion NE 68046
402 339-4321
thorpesbody@glx.net
9630 Redick Ave
Omaha NE 681!22
402 572-0200
Lincoln
Florence Auto Body
Sid Dillon Body Shop 2859 Clay St
Omaha NE 68112
402 451-3566
2627 Kendra Lane Lincoln NE 685'12 402 464-6500 denny@siddillon.com
Great Plains Auto Body
Tracy's Body Shop Inc
14540 Grover St
Omaha NE 68144
402 334·7100
4538 Cornhusker Hwy
Lincoln NE 68504
402 441 ~4820
North
lisain@tracysbodyshop.. com
Inter-Tech Collision Center
Tracy's Body Shop Inc
5638 Center St
Omaha NE 68106
402 898~8900
1500 Center Park Road
Lincoln NE 68512
402441 -4800
South
shonnens@tracysbodyshop.com
Northwest Carstar
Wayne's Body Shop Inc
3304 N '120 St
Omaha NE 68164
402 498-9400
4721 Cooper Ave
Lincoln NE 68506
402 483-2120
craig@waynesbodyrepair-=.fOB!
Wenzl's Carstar
4515 N 62 St Lincoln NE 68507 402 466-0821 dgrenemeier@necarstar.cor1J,
A Winning Season
EVE~ry season we send forth our team hoping the results will be better than the season before. ~n
the past five years the results have been more disappointing than the time before. Changes In
strategy and personnel have not changed the outcome.
New recruits, managers and coaches are hoping to make the grade and gain ground on the
opposition. New gimmicks and old knowledge are being put to the test again. Some managers
and players are leaving the game in disgrace, when their plans have failed.
Again this season we are falling behind the expectations of management. Personal goals and
achievements have not made the scores. The competition is wise and can counter our advances,
which change as the season rolls by us. All the spin from management cannot disguise the loss
of progress toward the goal.
Sorry, did you think that we were talking Nebraska football?
I was talking about our agencies and how we are not able to compete in the insurance market
place. Poor rates, policy rating, credit scoring and replacement costs have all contributed to our
decline.
If you are a small agent, 50% of your money is going toward your agency and promoting
Farmers. Tell your manger that you deserve more for your money.
Trying to achieve success without stress is
nothing more than wishful thinking.
E-Mail Elements
E-mail represents your personality to another person. Try to incorporate these elements in all
your e-mails.
• Be Precise. Say exactly what you mean or state precisely what you want the other person to
do. Don't beat around the bush and clutter your e-mail with a lot of words that cloud the
issue.
• Be concise. Get to the point quickly. None of us like to wade through sentence after
sentence in an email only to find the point of the, whole thing buried in the fourth paragraph.
Make it easy for the recipient to know what you want up front.
• 8e accurate. Don't exaggerate situations or estimate numbers if your not sure of your facts.
E-Mails have a long half-life and your shoot from the hip words may come back to haunt you
in the future.
• Be professional. This is especially important for an e-mail that your sending to someone you
don't know because you never get a second chance to make a first impression. Be sure your
e-mail labels you as a "professional" by using grammar and spelling correctly, and don't write
anything you wouldn't say to the person's face. (compliments to the Oklahoma Voice)
Wishing you all a "Happy Thanskgiving and
Holiday season. "
United Farmers Agents Association
PO Box 642244
Ornaha NE 68134
/
>
..
,
~ USA First-Class
United Farmers Agents Association
9785 Wfackenzie, Suite 104
St. Louis rvro 631 23
Service'ilAsr£:R
Clea1i,~~>
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