Table Of ContentANNUAL INDEX OF ARTICLES 1997
ARTICLE TITLE AUTHOR
AGENTS’ LEGAL ISSUES Randall Kleinman, JD, CPCU, CLU
Pacts written in blood: An unusual look at contract law January
When agency principals can’t get along: Emotion, pain and lawsuits March
Trusts: So popular, but so misunderstood and mishandled May
Piracy of insurance accounts July
Business torts are a ’90s kind of thing, and (don’t get surprised) lawyers love them September
“Hiking the trail” of “causation” cases November
COVERAGE CONCERNS Roy C. McCormick
Consider definition of “occurrence” when setting employee dishonesty coverage limits January
“Conditions precedent” must be observed by commercial insureds to ensure loss coverage February
Personal insurance property damage caused by animal is reviewed March
Income tax deduction helps ease burden of uninsured losses for householders April
Agency's cost of flood insurance advertising is shared
with National Flood Insurance Program May
Depreciation is warranted when dwelling damage is not repaired June
Guidelines for providing notice of suit August
Strong economy underscores need for personal umbrella September
Dealing with earthquake and volcanic action exposures October
Reviewing business theft and fidelity exposures November
Employment-related practices liability program developed by ISO Decemberr
CRITICAL ISSUE REPORT
Studies indicate overly-generous homeowners coverage
enhancements have contributed to market problems Phil Zinkewicz February
P-C company CEOs’ ranking of concerns gives | agents their cue Phil Zinkewicz August
Illinois Insurance Exchange responding to a competitive marketplace Phil Zinkewicz September
Homeowners insurance availability in coastal areas Phil Zinkewicz October
Collection of credit information could lead to E&O problems Dennis Pillsbury December
FAX POLL RESULTS
Agents’ Internet interest continues to grow February
Agencies list their approach to casual dress, other issues March
Agents provide views on partnerships with banks April
GENERAL ARTICLES
8th Annual Rough Notes Marketing Agency of the Year Contest January
CEO Forum—What's ahead for 1997? Four industry
analysts look into cloudy crystal balls and try to find answers January 22
ISO broadens the BOP Diana Kowatch, CPCU, AU, AAM, CPIW January 32
PF&M Companion—November 1996 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW January 44
In Search of Continuous Quality Improvement—Part 2 Elisabeth Boone, CPCU, January 62
ISO revises the CGL Diana Kowatch, CPCU, AU, AAM, CPIW February 20
Industry begins reaching out to serve minority markets Phil Zinkewicz February 33
Risk Problems/Solutions—Helping insureds deal with the added
costs of complying with building laws and ordinances LeRoy Utschig, CPCU, CLU, ARM February 38
PF&M Companion—December 1996 !SO form and endorsement changes _ Diana Kowatch, CPCU, AU, AAM, CPIW February 62
HSI: Serving the child welfare industry exclusively Phil Zinkewicz March 20
ISO's ownership conversion provides long-term flexibility Phil Zinkewicz March 62
Agent-owned Group 500 has aggressive blueprint for growth Thomas A. McCoy March 72
PF&M Companion—January 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW March 82
Risk Problems/Solutions—Dealing with the effect of building
laws and ordinances on the business income exposure LeRoy Utschig, CPCU, CLU, ARM March 94
“E-mail” + “V-mail” + “snail mail” = Fail Mail! Robert L. Stewart March 100
Making a business case for change Nancy Doucette April 31
90 ROUGH NOTES
ANNUAL INDEX OF ARTICLES 1997
ARTICLE TITLE AUTHOR
AGENTS’ LEGAL ISSUES Randall Kleinman, JD, CPCU, CLU
Pacts written in blood: An unusual look at contract law January
When agency principals can’t get along: Emotion, pain and lawsuits March
Trusts: So popular, but so misunderstood and mishandled May
Piracy of insurance accounts July
Business torts are a ’90s kind of thing, and (don’t get surprised) lawyers love them September
“Hiking the trail” of “causation” cases November
COVERAGE CONCERNS Roy C. McCormick
Consider definition of “occurrence” when setting employee dishonesty coverage limits January
“Conditions precedent” must be observed by commercial insureds to ensure loss coverage February
Personal insurance property damage caused by animal is reviewed March
Income tax deduction helps ease burden of uninsured losses for householders April
Agency's cost of flood insurance advertising is shared
with National Flood Insurance Program May
Depreciation is warranted when dwelling damage is not repaired June
Guidelines for providing notice of suit August
Strong economy underscores need for personal umbrella September
Dealing with earthquake and volcanic action exposures October
Reviewing business theft and fidelity exposures November
Employment-related practices liability program developed by ISO Decemberr
CRITICAL ISSUE REPORT
Studies indicate overly-generous homeowners coverage
enhancements have contributed to market problems Phil Zinkewicz February
P-C company CEOs’ ranking of concerns gives | agents their cue Phil Zinkewicz August
Illinois Insurance Exchange responding to a competitive marketplace Phil Zinkewicz September
Homeowners insurance availability in coastal areas Phil Zinkewicz October
Collection of credit information could lead to E&O problems Dennis Pillsbury December
FAX POLL RESULTS
Agents’ Internet interest continues to grow February
Agencies list their approach to casual dress, other issues March
Agents provide views on partnerships with banks April
GENERAL ARTICLES
8th Annual Rough Notes Marketing Agency of the Year Contest January
CEO Forum—What's ahead for 1997? Four industry
analysts look into cloudy crystal balls and try to find answers January 22
ISO broadens the BOP Diana Kowatch, CPCU, AU, AAM, CPIW January 32
PF&M Companion—November 1996 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW January 44
In Search of Continuous Quality Improvement—Part 2 Elisabeth Boone, CPCU, January 62
ISO revises the CGL Diana Kowatch, CPCU, AU, AAM, CPIW February 20
Industry begins reaching out to serve minority markets Phil Zinkewicz February 33
Risk Problems/Solutions—Helping insureds deal with the added
costs of complying with building laws and ordinances LeRoy Utschig, CPCU, CLU, ARM February 38
PF&M Companion—December 1996 !SO form and endorsement changes _ Diana Kowatch, CPCU, AU, AAM, CPIW February 62
HSI: Serving the child welfare industry exclusively Phil Zinkewicz March 20
ISO's ownership conversion provides long-term flexibility Phil Zinkewicz March 62
Agent-owned Group 500 has aggressive blueprint for growth Thomas A. McCoy March 72
PF&M Companion—January 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW March 82
Risk Problems/Solutions—Dealing with the effect of building
laws and ordinances on the business income exposure LeRoy Utschig, CPCU, CLU, ARM March 94
“E-mail” + “V-mail” + “snail mail” = Fail Mail! Robert L. Stewart March 100
Making a business case for change Nancy Doucette April 31
90 ROUGH NOTES
; ARTICLE TITLE AUTHOR MONTH |
Risk Problems/Solutions—Using Drive Other Car Coverage
to prevent some serious protection gaps LeRoy Utschig, CPCU, CLU, ARM April 38
The Flanders Group named Marketing Agency to the Year Thomas A. McCoy April es
PF&M Companion—February 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW April 78
Cashing out...buying in Juan Hovey April 92
Quality Insurance Congress—‘Time for Change” Laura Biddle-Bruckman April
Fee-based compensation—An alternative to relying on commissions Juan Hovey May
The Rough Notes Company reviews its online strategy Barbara J. Jacks, CIC May
Risk managers urged to take holistic approach Dennis H. Pillsbury May
Risk Problems/Solutions—"Individual Named Insured” and
“Drive Other Car” Coverage: A tale of two endorsements LeRoy Utschig, CPCU, CLU, ARM May
ISO’s new home business endorsement—The HOBIZ Diana Kowatch, CPCU, AU, AAM, CPIW June
Employee leasing: What are the opportunities for agents? Laura Beller June
Risk Problems/Solutions—Workers compensation/employers liability LeRoy Utschig, CPCU, CLU, ARM June
Multi-line, multi-year concept attracts interest at RIMS Dennis H. Pillsbury June
CEO Forum—Why, and how, P-C agents should get into financial services June
PF&M Companion—March 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW June
It pays to get it right the first time Nancy Doucette July
IIAA lobbyists—both tough and fair—work hard for the independent agency system Laura Biddle-Bruckman July
Insurance Broadcast System starts televising Dennis H. Pillsbury July
New study measures changes in agency profits and growth Thomas A. McCoy July
Risk Problems/Solutions—Workers compensation other states coverage LeRoy Utschig, CPCU, CLU, ARM July
PF&M Companion—April 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW July
Street festivals: A cautionary tale Dennis H. Pillsbury August
Risk Problems/Solutions—Workers compensation for labor contractors LeRoy Utschig August
PF&M Companion—May 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW August
Boot camp set up to jump start customer retention for agents Elisabeth Boone, CPCU September
American Institute “umpire” interprets Individual Named Insured September
Risk Problems/Solutions—Contractor’s equipment LeRoy Utschig, CPCU, CLU, ARM September
Young Agents—The changing face of the independent agent Laura Biddle-Bruckman September
Business auto changes Diana Kowatch, CPCU, AU, AAM, CPIW September
An interview with Madonna! Phil Zinkewicz September
PF&M Companion—June 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW September
Starting from scratch Elisabeth Boone, CPCU October
Free market insurance industry shows promise in the Ukraine Frank M. Cimino, CIC, CPCU October
Risk Problems/Solutions—Contractors’ equipment—Part 2 LeRoy Utschig, CPCU, CLU, ARM, October
Young Agents Forum—Young agents: The industry's perpetuation plan Tommy Adams, CPCU October
PF&M Companion—July 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW October
Agency networks: Market access...and more Phil Zinkewicz November
Insuring the asset management industry Dennis H. Pillsbury November
Risk Problems/Solutions—Builders risk LeRoy Utschig, CPCU, CLU, ARM November
August 1997 ISO form and endorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW November
Young Agents—Taking over the reins from the previous generation Laura Biddle-Bruckman November
Agent Global Marketplace—Lloyd’s new structure provides accountability and accessability Phil Zinkewicz December
Build it and they will come Penny C. Ciaburri December
Risk Problems/Solutions—Builders risk—inland marine LeRoy Utschig, CPCU, CLU, ARM December
PF&M Companion—!SO form and encorsement changes Diana Kowatch, CPCU, AU, AAM, CPIW December
LIFE/HEALTH & FINANCIAL SERVICES
Annuity market offers added potential with equities in the mix Thomas A. McCoy, CLU January
Era of self-control in financial services brings challenges to agents Thomas A. McCoy, CLU February
CIGNA works with P-C agents in defined benefit pension market Thomas A. McCoy, CLU March
Long term care plan from CNA aimed at smaller employers Phil Zinkewicz April
New “simple” programs fill void in retirement market Thomas A. McCoy, CLU May
MARKETING
Home builders market offers potential opportunities Phil Zinkewicz January
Banks & Insurance—Banks selling insurance: An historical perspective on the controversy Phil Zinkewicz January
Hard market opportunist Dennis H. Pillsbury February
Restoring entrepreneurship to the independent agency system Dennis H. Pillsbury March
Banks & Insurance—Associations relaxing their attitudes on bank-insurer affiliations Phil Zinkewicz and Dennis H. Pillsbury March
St. Paul program helps agencies hire, develop young producers Phil Zinkewicz April
DECEMBER 1997
ARTICLE TITLE AUTHOR : MONTH PAGE
Agent Global Marketplace—Newly invigorated by corporate capital,
Lloyd's faces internal and external challenges Phil Zinkewicz April 96
Agents tired of market problems form their own insurance companies Phil Zinkewicz May 16
Banks & Insurance—Who will regulate the combined entities? Dennis H. Pillsbury May 58
Tuition waiver coverage: An emerging niche market opportunity Thomas A. McCoy June 22
Managed Marketing—The marketing pian: Your road map to success Kimberly Paterson June 70
Out of the Box—The third and fifth “D's George Nordhaus June 72
Agent Global Marketplace—Lloyd’s still must battle U.S. names Phil Zinkewicz June 90
Clustering boosts competitiveness and provides a safety net Phil Zinkewicz July 19
Banks & Insurance—Joint ventures with banks: A look at the I[AA White Paper Dennis H. Pillsbury July 22
Regional carriers continue to grow by catering to independent agents Juan Hovey July 24
One bad dinner can ruin your business Phil Zinkewicz July 28
Out of the Box—Sam & | George Nordhaus July 78
Banks & Insurance—if NAIC and OCC do battle, agents could bear arms Dennis H. Pillsbury August 18
Benefits of the “virtual office” Phil Zinkewicz August 22
Managed Marketing—Effective follow-up is key to marketing success Kimberly Paterson August 56
Out of the Box—The transaction is dead George Nordhaus August 62
Giving your marketing plans a big kick Phil Zinkewicz September 22
High tech can mean high growth for agents writing computer consultants Thomas A. McCoy September 32
Out of the Box—Sick of the Internet? George Nordhaus September 48
Progressive is driving for independents Dennis H. Pillsbury October 20
Selective Insurance moves closer to its agents, then expands its reach Thomas A. McCoy October 70
Hartford targets auto coverage for “diverse households” Phil Zinkewicz October 89
Out of the Box—Taking the technology plunge—again George Nordhaus October 90
Managed Marketing—Brochure basics Kimberly Paterson October 102
The alternative market: Not just for the big guys Laura Mazzuca Toops November 34
Giving agents underwriting control on small commercial business Phil Zinkewicz November 44
Out of the Box—Information overload. . .or useless information? George Nordhaus November 50
Out of the Box—Destroying relationships George Nordhaus December 60
Managed Marketing—Delighted clients are loyal clients Kimberly Paterson December 54
Insurance & banking partnerships could threaten smaller agencies Dennis H. Pillsbury December 38
Young Agents—Generation next—opening the door for future clients Dennis H. Pillsbury December
MARKETING AGENCY OF THE MONTH
Texas agency thrives in small-town atmosphere Samuel Schiff February
Success breeds success Dennis H. Pillsbury March
Answering client needs leads to expanded services and success Dennis H. Pillsbury April
A small family agency competes successfully Dennis H. Pillsbury May
Success starts with knowing what business you're in Elisabeth Boone, CPCU June
Technology, not-for-profit and construction firms rely on AH&T expertise Robert L. Stewart July
Internal changes lead to prosperity for small-town agency Dennis H. Pillsbury August
Florida agency uses “Ritz Carlton” approach Dennis H. Pillsbury September
Specht Group focuses on niche opportunities October
B-H-C makes perpetuation a top priority Dennis H. Pillsbury November
History, traditions & new horizons Laura Bilddle-Bruckman December
REBUILDING COST CHART
Rebuilding Cost Chart—Spring March
Rebuilding Cost Chart—Summer May
Rebuilding Cost Chart—Fall August
Rebuilding Cost Chart—Winter November
RISK MANAGEMENT Donaid S. Malecki, CPCU
Professional liability takes center stage at IRMI’s Construction Insurance Conference January
ISO's latest changes to CGL affect “employees as additional insureds” February
“Mail box” rule does not apply April
Be aware of the limitations of Drive Other Car Coverage—Part 1 May
Supplemental coverages for commercial auto policies—Part 2 June
California court decision prompts CGL endorsements August
Professional liability exposures of construction contractors September
Dispelling the mystery of business income insurance November
Insurance certificates December
92 ROUGH NOTES
r ~
Tete mae
ARTICLE TITLE AUTHOR MONTH PAGE
SPECIALTY LINES
Customer “bonding’—a factor in dramatic agency comeback Harry Montague January
1996 PLUS International Conference—Meeting the challenges of change Laura Biddle-Bruckman January
Agents can score with prize indemnification coverages Wallace L. Clapp, Jr., CPCU February
Special events coverage: Help is at your fingertips Juan Hovey March
The fine art of insuring fine arts, valuables and collectibles Robert L. Stewart and Susan Barros March
Expanding environmental market has huge unrealized potential Juan Hovey March
What twists and turns lie ahead for the E&S market? Phil Zinkewicz March
Booming day care industry can be an attractive niche Laura Mazzuca Toops March
Insurance marketplace for 1997: No letup in continuing softness Wallace L. Clapp, Jr., CPCU March
Long Haul Trucking Edward O’Hare March
Restaurants serve up opportunities for agents Wallace L. Clapp, Jr., CPCU April
Financial institutions provide a wealth of business opportunities—Part 1 Wallace L. Clapp, Jr., CPCU May
Financial institutions—Part 2 Wallace L. Clapp, Jr., CPCU June
Mobile home and RV coverage Laura Mazzuca Toops June
Insuring personal watercraft Dennis H. Pillsbury June
Specialty Lines Markets—Coverages and markets for watercraft Wallace L. Clapp, Jr., CPCU June
Environmental liability markets expand Wallace L. Clapp, Jr., CPCU July
Staying on top of the reinsurance market Laura Beller August
Railroads on the comeback trail Dennis H. Pillsbury August
Specialty Lines Markets—Directory of commercial auto/truck markets Wallace L. Clapp, Jr., CPCU August
Municipal insurance: Public entities control their own destiny Dennis H. Pillsbury September
Specialty Lines Markets—Municipal services covered under public entity packages Wallace L. Clapp, Jr., CPCU September
Specialty Lines Markets—Markets for Social Service Agencies are plentiful Wallace L. Clapp, Jr., CPCU October
Program business expands beyond traditional lines Phil Zinkewicz November
Redefining the E&S business Phil Zinkewicz November
Specialty/surplus market shows small gain Wallace L. Clapp, Jr., CPCU December
TECHNOLOGY
Teleworking: The melding of changing workstyles and technology Nancy Doucette January
Insoft Corporation: Ready to respond to agents’ automation concerns Nancy Doucette February
Agency Marketing Technology—Searching the Internet: How to find a needle in a haystack Steve Anderson February
Keeping current with technology Nancy Doucette March
The “Millennium Bug” crisis Dennis H. Pillsbury March
“I'm scared’—An agent's lament Mechlin Moore April
Agency Marketing Technology—Talking to your computer is finally becoming a reality Steve Anderson April
Can adding software and subtracting costs provide the right answer? Nancy Doucette May
Create smart desktops using “push” technology Len Strazewski May
Faith, Hope & SEMCI Virginia M. Bates May
E-mail and the Internet Laura Biddle-Bruckman May
Working the system Nancy Doucette June
The Diamond System speeds policy processing Elisabeth Boone, CPCU June
Agency Marketing Technology—How to sell in spite of voice mail Steve Anderson June
Transactional filing: Cutting paperwork down to size Elisabeth Boone, CPCU July
Choosing and using a color printer Alice Ashby Roettger August
The Year 2000 Problem (Y2K) Diana Kowatch, CPCU, AU, AAM, CPIW August
Agency Marketing Technology—How to use the telephone to
keep in touch with your customers Steve Anderson August
Strategic Insurance Software is staying focused Nancy Doucette September
A giant step toward SEMCI Phil Zinkewicz September
Surviving the Big Bad Wolf Nancy Doucette October
CLEMS/PC from ISO: Faster...better...more efficient Laura Biddle-Bruckman October
The spider in the Web—Part 3: Insuring Internet exposures Diana Kowatch, CPCU, AU, AAM, CPIW October
Agency Marketing Technology—Converting ink into electronic data Steve Anderson October
Getting wired Nancy Doucette November
Y2K: The Millennium Bug—Part 2—So it begins Diana Kowatch, CPCU, AU, AAM, CPIW November
Piloting the mobile office Elisabeth Boone, CPCU December
Agency Marketing Technology—Eight myths about the year 2000 problem Steve Anderson December
TO THE POINT
Blazing a path to the 21st century's financial services market for independent agents Robert A. Rusbuldt January 66
Development and implementation of a national Natural Disaster Program Hank Halimark May 48
94 ROUGH NOTES
ARTICLE TITLE AUTHOR MONTH PAGE
The environmental insurance marketplace: Rapid emergence to stable growth William Kronenberg III July
Insurance companies: Biting the hands that feed them Donald S. Malecki, CPCU October
SPECIAL SECTIONS
IVANS Dennis H. Pillsbury February 45-55
AT&T Insurance Solutions April 49-66
Alliance for Productive Technology, Inc. (APT) September A1-A36
Professional Liability Underwriting Society (PLUS) Dennis H. Pillsbury and Phil Zinkewicz October 38-60
QUESTIONS & ANSWERS —verandahs (demountable screened enclosures)
(continued from page 12)
—readily removable equipment and fixtures that are
machinery or equipment, it is considered part of the included in the realty
building. Another item to consider is whether or not the mortgage
equipment and machinery is defined in the real estate
agreement as part of the building or part of any real estate —wall-to-wall carpeting only when included in the realty
mortgage. All these factors must be considered in mortgage
determining the overall building value including —permanently installed heating plant
permanently installed machinery and equipment.
—permanently installed air conditioning equipment
Attached are excerpts from two different Rough Notes
Publications. —permanently installed attic or basement ventilating
equipment, including connected fans, vents and ducts
From the Policy, Form and Manual (PF&M) Analysis
Service: —permanently installed lighting and plumbing fixtures
130.6-14 Building or Personal Property Ruling —permanently installed floor coverings of every
Purpose: The following Agreement of Guiding Principles description other than rugs and carpeting, except such
has been adopted by member companies upon the rugs and carpeting that are cemented to the flooring
recommendation of the Insurance Services Organization From Property and Casualty Insurance by Philip Gordis:
(ISO). Situations develop where there is reasonable doubt
Chapter 2—Commercial Property Policy
whether certain property is properly part of a building or
is personal property of the building. The conclusions were What is Covered— Building Property
made specifically in connection with insurance under
As indicated at the beginning of the analysis of the
dwellings or commercial property policies but, of course,
Commercial Property Policy, this form is designed to cover
apply to other policies covering buildings and personal
building and personal property. The coverage on buildings
property. Although this agreement is a number of years
will be discussed first; that on personal property will
old, it is still valid and applicable.
follow.
Application of Agreement
Building Property— When the policy covers building
The classification of property shown below derives from property, it covers in addition to the building structure
Agreements of Guiding Principles recommended to described as follows:
member companies by ISO. Though used as a guide by a
majority of insurance companies and adjusters, the 1. Completed additions to the building, fixtures including
following remarks are applicab!e to the Agreements of outdoor fixtures, permanently installed machinery and
Guiding Principles: equipment, and if not covered by other insurance,
additions under construction, alterations and repairs to
e they are binding only as between subscribing
the building or structure;
companies.
2. Materials, equipment, supplies and temporary
¢ they are effective only in the event of overlapping
coverage. structures within 100 feet of the premises used for making
additions, alterations or repairs to the building.
¢ they do not extend or vary the contract of insurance.
Landlord’s Furnishings and Property—Also covered
Building insurance
under the building coverage is personal property owned by
When the owner of the building is also the owner of the the building owner that is used to maintain and service
personal property of the building, “building equipment and the building and its premises. This would include
fixtures” of the building insurance shall include (whether appliances for refrigerating, ventilating, cooling, cooking,
in position or stored on the premises) storm doors, storm dishwashing or laundering, floor coverings, outdoor
sashes, shades, blinds, wire screens, screen doors, and furniture and fire extinguishers.
awnings.
Note: A loose definition of “personal property” is: Any
When the owner of a building is also the owner of the
property, whether for business or private (personal) use
personal property, items of building equipment and
which is not permanently affixed to the ground or realty.
fixtures essentially in the nature of real property shall be
By contrast, property which is affixed to the ground or the
covered under the building policy.
realty and whose removal would mar or deface the realty
The following types of property are covered as building is real property. An example of the latter is wallpaper that
items: has been installed. A set of lockers standing free is
—TV antennae and towers, detached (not affixed to the personal property, while the same set of lockers built into a
building or to an outbuilding) wall is real property. @
DECEMBER 1997
