UAIIA Newsletter

For a flyer on the benefits of membership, please click on the following link: www.uaiia.org/benefits.pdf

Thanks to our 2008 Associate Members: Acuity, Advanced Restoration, AIG, American Mining, Amtrust North America, Austin Mutual Insurance Co., Auto Owners Insurance Co., Bear River Mutual Insurance, BELFOR, Burns & Wilcox LTD, Cananwill Premium Funding, Capital Premium Finance, Chubb Group of Insurance Companies, CIBA Insurance Services, CSE Insurance Company, Colonial General Insurance, Colorado Casualty Ins. Co., Continental Western Group, Cresta Insurance, LLC, Dairyland Insurance Co., EMC Insurance Companies, Encompass/Allstate/Deerbrook, Germantown Mutual, Great American Insurance Co., Kemper, Legacy Insurance Services, MetLife Auto & Home, Mountain States Insurance Group, Multico Rating Systems Inc., Mutual of Enumclaw Ins. Co., National American Insurance Co., Networked Insurance Agents, PLUS Insurance, Premium Financing Specialists, Progressive Insurance, Republic Indemnity Company, Risk Placement Services – Salt Lake, Risk Placement Services – Scottsdale, Sagamore Insurance Co., Sequoia Ins. Co., Service Master by Restoration Xperts, State Auto Insurance, Statewide Insurance Corp., Surplus Line Assoc. of UT, Swett & Crawford, Inc., Telford Financial, Transwestern General Agency, Travelers, UAIC, UCA General Insurance, Unitrin Specialty, Utah Disaster Kleenup, Victoria Insurance, WCF.

1. Brett Nilsson Inaugurated Chairman
2. Flyer with Newsletter
3. Elderly Women Get Life
4. Certificates of Insurance Dilemma
5. Stripper Shoe Lawsuit
6. Agency Records Retention
7. GAP Insurance Product
8. Utah Insurance Code Book


1. Brett Nilsson Inaugurated as Chairman Recently, Utah’s own Brett Nilsson was inaugurated as the chairman of the Independent Insurance Agents & Brokers of America (IIABA), with David Daniel as the new chairman elect, Mike Miley as the new vice chairman, and Tom Minkler as the new executive committee member. The new officers began their terms at the recent Big “I” Leadership Conference in Las Vegas.
I am confident that we have just installed the “best of the best” of our industry to head the Big “I”, says Robert Rusbuldt, Big “I” president and CEO. “With Brett, David, Mike and Tom at the helm of our association, we are well-armed to navigate through uncertain economic times for our industry and the country.”
Brett Nilsson, CIC, is senior vice president for The Buckner Company, based in Ogden, Utah. Nilsson was first elected to the Big “I” Executive Committee in 2003 and was sworn in as vice president September 2006. Nilsson also served on IIABA’s national Communications Committee and its Finance Committee, which he chaired from 1999 to 2003. Prior to being elected to the Executive Committee in 2003, Nilsson served as president of the Utah Association of Independent Insurance Agents from 1992 to 1993 and as the board director from Utah for nine years. He is a past recipient of Utah’s Agent of the Year and Young Agent of the Year awards, and he received a Big “I” Presidential Citation in 2001. In 2003, Nilsson received his state association’s highest individual honor, the Burgener Award, a distinction that has only been awarded five other times in the history of the Utah Association.
Look at the current IA magazine (IIABA’s October 2008 issue) for a complete story of Brett’s new position with the Big “I”.

2. Flyer with Newsletter Watch for MULTICO flyer included with the printed version of this newsletter. Did you know that associate members could have 525 of their 8” X 10” (letter folded) flyers inserted in our printed newsletter mailing for only $100.00?

3. Elderly Women Get Life Remember the two elderly women who befriended two homeless men, took out life insurance policies and then killed them in murders staged to look like hit-and-run automobile accidents? Well, they were each handed down two life terms without the possibility of parole. Both women were convicted of first-degree murder and conspiracy to murder for financial gain in the 1999 death of Paul Vados, 73 and in the 2005 death of Kenneth McDavid, 50.

4. Certificates of Insurance Dilemma A common practice by insurance carriers is to inform their agents that they should not send the company copies of certificates of insurance when they are issued. This is most likely the result of mail-flow issues with the carrier’s underwriting departments, many of which are now becoming “paperless” … not to mention that the task of naming and filing certificates into a computer system is cumbersome!
That leaves the agent with the responsibility of issuing and filing certificates. However, if a copy is never sent to the carrier, the carrier can hide behind a “shield of ignorance” if a problem arises by stating that they knew nothing about the certificate. In effect, the practice of refusing certificates can place a carrier in a better defense posture when a claim is made based on misrepresentations on a certificate. At the same time, the defense of an agency can be weakened when a carrier claims ignorance.
Certificates of insurance can and will be the basis of claims against agencies. Even though there is language present on a certificate that in effect states the certificate does not constitute a contract between the parties – nor does it amend, extend or alter coverage under the policies listed – claims are made and suits are filed based on representations present on certificates.
It is important to never issue a certificate as a favor to an insured without knowing for certain that the information stated on the certificate is accurate. When a lawsuit ensues as a result of inaccurate information on a certificate, all fingers will be pointed directly at the agency, especially if the carrier knows nothing of the certificate.
Finally, it is advisable to send copies of certificates to the carrier, regardless of whether the carrier wants them. Once receipt of the copies has been confirmed, a carrier cannot claim ignorance – and the agency might have an additional avenue for recovery should a claim arise.

5. Stripper Shoe Lawsuit Imagine someone heading to a strip club, settling in with a drink, watching the routine – and then they wind up with a shoe in their eye? That’s what recently happened to a Florida man.
Apparently one of the strippers got carried away during a pole dance and kicked off her shoe. It hit the club’s mirrored ceiling, and both mirror shards and the shoe rained down on the unfortunate patron. He ended up with facial cuts, a nosebleed and grounds for a day in court. From: msn.com

6. Agency Records Retention Have you wondered how long you should keep records in your agency such as: Corporate/Partnership, Real Estate, Financial, Tax, Correspondence, Personnel, Agency/Company Files, Client Record Files, Licensing/legal, Electronic Data, Y2K Records, and Miscellaneous Records? Then click on www.uaiia.org/_private/agencyrecordsretention.pdf for guidelines. This can also be retrieved from our website at www.uaiia.org. Press the membership button and then scroll down.
Disclaimer: Although thorough analysis has gone into the preparation of this document, the retention periods are not offered as final authority but as a guideline. The material in this document is for informational purposes only and is not intended as legal or other professional advice. Please procure the appropriate legal or other professional advice and services to address your individual needs and circumstances.

7. GAP Insurance Product Our association has been given the opportunity to offer you, our members, GAP Insurance to sell to your clients. How does GAP Insurance work? If your clients new car is stolen or declared totaled, their auto insurance company will pay them the actual cash value (ACV) of the car. This can be a lot different from what they still owe on their loan. Without GAP insurance, their lender will hold them responsible for paying the difference between the ACV and the amount left on the loan. A GAP insurance policy will eliminate your client having to pay the difference and eliminate the problem of you trying to explain to your client why the auto insurance company did not pay the entire amount.
We are told that dealers usually charge $500 to $600 for this coverage. You would charge a onetime fee of $349 for new and used vehicles for the life of their loan and receive a $60 commission.
We haven’t agreed to offer this to members yet. We want to know if you think this is a good idea. If so, drop me a note at: stevebaugh@uaiia.org. Or, if you hate the idea, you can respond that way as well. We probably will not offer this coverage unless we receive several positive responses to go forward with it. Thanks!

8. Utah Insurance Code Book Are you looking for a book that is guaranteed to put you to sleep at night? This book might work, but better yet, it just might keep you out of trouble in the insurance business with all of its statutes and rules. We receive calls all the time from agents looking for a specific statute or rule pertaining to a practice in our industry. H-m-m-m -- the unfair marketing practices rule comes to mind.
Did you know that you could have your own 2008 Utah Insurance Code book, which even contains changes made during this year’s legislature?
In spite of increased costs for printing, the department will continue to offer the book for $37 plus $3 for mailing. This is the same price they charged in 2005.
To purchase a book, go online to the Insurance Department’s website at www.insurance.utah.gov and click on “Purchase a Code Book.” You can also order it by phone by calling (801) 538-3803, or by mail to: Utah Insurance Department, State Office Building, Room 3110, Salt Lake City, UT 84114.
And yes, UAIIA will be ordering one as well to handle all of those unfair marketing practices questions.