Spring 2012 - National Association of Professional Allstate Agents, Inc.

Beyond Facebook Seller Financing protecting Agency DataExclusivefocusSpring 2012An Official Publication of the National Association of Professional Allstate Agents, Inc.How Will You VoteYour Allstate Shares?Page 32Exclusive Interviewwith ALLBlueBlog’sDavid Carr page 16Must Read Parody –Tom Wilson: Earthlingor Alien Android?Page 50Renaissance Man:What You Don’tKnow about NAPAAPresident Bob IsacsenPage 42Better than the Rest:The 2012 National EAConference FeaturingBill Gough and DavidCarr Page 25Now Available – NewMembership Option!Pages 54-65The MythBehind the Mask:Is Allstate Telling You theWhole Truth?Page 38A Magazine for Allstate Agency Owners and Allstate Personal Financial Representatives

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ExclusivefocusSpring 2012An Official Publication of the National Association ofProfessional Allstate Agents, Inc.Features16 David Carr: the Exclusivefocus Interview21 Grounds for Divorceby I.M. Disappointed25 2012 National EA Business Conference & Job Fair30 Bootlickers and High Fliers32 Allstate’s CEO Pay Increased 20%, Stock Price Fell 15% in 201138 Masking the Truth with Tokens and TrinketsBy Jim and Nancy Fish42 LEADERSHIP SERIES: Bob Isacsen – Faithful to his principlesBy Jim Fish with Cathy Isacsen and Ed Erbacher46 A Sense of EntitlementBy Dave Thorpe48 Ralph Waldo Emerson and woopleBusiness14 Beyond Facebook:What Other Social NetworksCan Grow Your AgencyBy Robyn Sharp18 Don’t be Temptedby Unproven Business AdviceBy Bill Gough23 Seller Financing –What Does It Mean?34 The Perfect Storm:Why 2012 May Be the Yearto Buy or Sell an AgencyBy Bill NicholsonParody50 This Explains EverythingWe always knew Tom Wilsonwas not from around here54 NAPAA/OPEIU Guild 17 • A New Way to SuccessTechnology53 Insurance for Your Agency’s Data—Fireproof/Waterproof External Hard Drives vs. Cloud BackupBy Robb MooreA Magazine for Allstate Agency Owners and AllstatePersonal Financial RepresentativesDepartments6 President’s Letter10 Letters to NAPAA68 NAPAA Market Place4 — Exclusivefocus Spring 2012

president’s letterAnnouncing our New AssociateMembership ProgramIn SolidarityBob IsacsenPresidentNAPAA/OPEIUGuild 17As I’ve discussed in previous issues of Exclusivefocus,in addition to the strength that comeswith affiliating with an organization such as Officeand Professional Employees InternationalUnion (OPEIU), being a member of NAPAA/OPEIU Guild 17 brings with it full participation inOPEIU’s membership benefit programs at no additionalcost to you. The combined value of thesebenefits more than covers the cost of membership,making joining NAPAA a smart choice for all Allstateagents.I am pleased to announce that many of thesebenefits of membership are now available to youremployees, through the NAPAA/OPEIU Guild17 Associate Membership Program. For the firsttime, your employees will be able to take advantageof these wonderful benefits at a greatly reducedAssociate Membership rate.The Associate Membership Program is a terrificway to share these valuable benefits with your employees– benefits they would find hard to duplicateon their own. Of course, increased membership basemeans a stronger and more effective NAPAA, givingus an even stronger voice in the legislative hallsat the national and state levels, and in our efforts toaffect Allstate’s behavior and treatment of agents.Signing up your employees as Associate Membersalso means even more benefits for you! If youchoose to enroll your employees in the AssociateMembership program, all participants in youragency will be eligible for two additional benefits:Disability Payment – Disabilities due to an illnessof six weeks or more, receive a one-time flatpayment of $500; and disabilities of six weeks ormore resulting from an accident, will receive aone-time flat payment of $1,000.$25,000 Accidental Death and DismembermentLife Insurance Benefit – These extra benefitsare in addition to the full list of benefits alreadyavailable to members. In addition, here arethe other benefits you and your covered employeeswill enjoy:WellCard Health Access Program – Providessubstantial discounts (up to 65%) on prescriptiondrugs, dental and vision care (up to 50%), as wellas deep discounts on medical hospital bill assistanceand doctor visits.Identity Theft Protection with Internet Monitoring– A proactive, comprehensive defense againstidentity theft – the fastest growing crime in theUnited States – with Internet monitoring and a fullymanaged recovery provider.Towing/Service Calls – up to 2 per year, per household– valued at $100 each – for family members livingin the same household as the member.Continuing Education Subsidy – $50 everytwo years.Errors and Omissions Policy Subsidy – Reimbursementof up to 20% of the deductible for anypaid E&O claim, up to $500 per member per year.PerksCard National Discount Program – Savingsof hundreds of dollars on website and in-store purchasesthrough national retailers, at restaurants, on movietickets and numerous other items.Eligibility for Scholarships – Scholarshipsof up to $6,000, labor studies scholarships up to$3,000 and a summer camp for children, stepchildrenor legally adopted children between the agesof 13 and 16.Federal Credit Union for NAPAA Members –Coming soon!“Welcome Home” Real Estate Rebate Program– A multi-faceted service that offers assistancewith buying, selling and refinancing realestate as well as relocation and rental services andresources.AFL-CIO “Union Plus” Benefits – Consumersavings, discounts, benefits and education resources.Visit www.unionplus.org to learn more.Now more than ever, Allstate agents need thepower that a unified organization can bring. Go topages 54-65 in this issue of ExclusiveFocus and findmore information about how you and your employeescan join NAPAA. We encourage everyone tosign up today. Our affiliation with OPEIU providesNAPAA with greater leverage to accomplish morefor you. Remember, there is strength in numbers,leading to more power for you through NAPAA.Always a cell phone call away: 347-572-46986 — Exclusivefocus Spring 2012

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NAPAA Boardof Directors2011-2012Administrative OfficesJim Fish, Executive DirectorP. O. Box 7666Gulfport, MS 39506Ph # 877-269-3474Nonmembers: Call 563-564-1800ExecutiveDirector@napaausa.orgNancy Fish, Association ManagerP.O. Box 7666Gulfport, MS 39506Ph #877-627-2248Nonmembers: Call 563-564-1800Fax #866-627-2232hq@napaausa.orgPlease email HQ@napaausa.org tocontact our officers and directors.Include the name of the person inthe subject line.OFFICERSBob IsacsenPresidentHoboken, NJDale RevelsImmediate Past PresidentKissimmee, FLDebe Campos-FleenorExecutive Vice PresidentTucson, AZIsmael Melendez, Jr.TreasurerFederal Way, WAJudy OstSecretaryBattleground, WADIRECTORSAl Bullard, Floral Park, NYEd Hogg, Fairfax, VAGreg Thompson, Burleson, TXLezlee Liljenberg, Arlington, TXExclusivefocusNational Association ofProfessional Allstate Agents, Inc.P.O. Box 7666Gulfport, MS 39506-7666Phone Toll Free (877) 627-2248Toll Free Fax (866) 627-2232Web Site www.napaausa.orgEmail HQ@napaausa.orgNonmembers: call 563-564-1800Jim FishExecutive EditorP.O. Box 7666Gulfport, MS 39506Phone (877) 269-3474 • Fax (866) 627-2232Exclusivefocus@napaausa.orgNonmembers: call 563-564-1800Exclusivefocus and DirectExpress are official publicationsof NAPAA - The National Association ofProfessional Allstate Agents, Inc. No part of this publicationmay be reproduced without prior written permissionof the publisher. It is the policy of this publicationto reflect the professional thoughts and attitudes ofour members and to advance the professionalism of theinsurance industry to the ultimate benefit of the insuringpublic.The views expressed by NAPAA, or any of its positionsrelative to its activities and those of its members’ actions onbehalf of this organization, are expressly those of NAPAA,and do not reflect the views or the opinions of Allstate InsuranceCompany, or any of its affiliates.Letters to the Editor: All letters must include an addressand a daytime and evening phone number. Wereserve the right to edit letters for clarity and space.ExclusivefocusSpring 2012Beyond FaceBook Seller Financing protecting agency dataAn Official Publication of the National Association of Professional Allstate Agents, Inc.How Will You VoteYour Allstate Shares?Page 32Exclusive Interviewwith ALLBlueBlog’sDavid Carr page 16Must Read Parody –Tom Wilson: Earthlingor Alien Android?Page 50Renaissance Man:What You Don’tKnow about NAPAAPresident Bob IsacsenPage 42Better than the Rest:The 2012 National EAConference FeaturingBill Gough and DavidCarr Page 25Now Available – NewMembership Option!Pages 54-65the MythBehind the Mask:is allstate telling you theWhole truth?Page 38A Magazine for Allstate Agency Owners and Allstate Personal Financial RepresentativesThis issue of Exclusivefocus magazine may containarticles of interest submitted to NAPAA by outside authors.NAPAA is not responsible for the opinions, adviceor accuracy of any information provided therein.NAPAA’s Mission StatementNAPAA is dedicated to the success of AllstateExclusive Agency Owners and to advance theindependence and entrepreneurial spirit of ourmembers.NAPAA’s GoalsOur goals are subject to alteration, influenced bya constantly changing environment and the needsand wishes of our members.NAPAA encourages its members to activelyparticipate in the process of defining and refiningour Mission, Goals and Positions.Our General Goals:• To provide an organization specifically tailoredto benefit Allstate Exclusive Agents• Monitor legislative and legal issues pertinentto Agents and their clients• Maintain an Action Fund to support issuesbeneficial to agents and clients• Provide reliable communications on all issuesthat affect Agents and the ability to call upon ourmembers to act• Provide Agents with a distinct voice on issuesthat affect them, continually exploring options andsolutions• Make tools and resources available for membersin an effort to increase agency value and success.For more information,please visitwww.napaausa.orgSpring 2012issue of Exclusivefocusbrought to you by theNational Associationof ProfessionalAllstate Agents.8 — Exclusivefocus Spring 2012

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letters to NAPAAI recently sold my agency in LakeWales, Florida. There was no 90-day letter,but there was too much pressure tobear any more. It was almost impossibleto sell auto.I wanted to stay for another two years,but the stress was too great. My doctorsaid that with my diabetes and highblood pressure, I would be a good candidatefor a heart attack or stroke. I tookhis advice and sold, and I am glad to getthe monkey off my back.As luck would have it, my book wasfor sale around the time the company announcedthe 8/8 commission and managementwasted no time in informing thebuyer. Now it ends up that the commissionwill be 9/9, so I took a major hit onthe sale price of the agency. After 25 yearsat Allstate, I expected better from them.Thanks for everything you andNAPAA do for the agents.I have a person that is looking at buyingmy book. Most likely, I will have tostay in the insurance business and waswondering what wisdom you could giveme on this subject. I assume his lenderwill try to force me to sign a rigid noncompeteclause; is this negotiable? Doyou have any information about whichagent networks are better in my state?Also, what is the outlook for agentswho remain with Allstate, do you thinkMatt Winter can save the company andwill the new version of the company includeagents? The only reason I decidedto sell is because I have lost faith and feelthat they are pushing too hard. My bookhas lost $500,000 in premiums over thelast three years.Editor’s response: Some, if not all, of themajor lenders that finance Allstate bookswill insist on a three to five-year non-competeclause requiring the seller to maintaina three to 15-mile distance from the oldlocation. While most everything is negotiable,some lenders might refuse to financeyour deal if they believe the non-compete isinsufficient to protect their interests. Manyagents who want to stay in the business electto take TPP because the company’s one-year/one-mile non-compete is far more generousthan those imposed by the lenders.We’ve had very few complaints about theagent networks that advertise with us. Theyvary quite a bit, so it would be best to contactthem to determine which one fits yoursituation best.The agency force is not going away anytimesoon, but the outlook for Allstate remainsmurky. If there is a change at thetop, there is no guarantee that things willget better for the agency force, as it will takeyears to repair the damage done over the pastdecade. If the next CEO is smart, he wouldmake the sagging morale of the agency forcea top priority. Restoring 10/10 comp woulda good start.I left Allstate 27 months ago after thecompany announced its Ideal Agencyinitiative. The handwriting was on thewall; either grow your book to $4 millionor get out. I was a newer agent atthe time and it was clear that growingto that level would be an enormousstruggle for me. This was a career crisisfor me; should I tough it out and try toquadruple the size of my agency, or takean equally difficult path and go independent?In the end, I decided to risk it alland go independent. The deciding factorwas when I realized that Allstate wouldalways control every aspect of my businesslife. I would never be free of thequotas, the employee-like controls or theconstant meddling in my business affairs.I decided I just could not endure theconstant BS and still be required to quadruplein size. Since I left, I understandthat the company has shelved the IdealAgency concept, cut agent commissionsand is strong-arming agents into taking acourse called woople. Apparently, I madethe right choice. After 27 months as anindependent, I have a $1.4 million book.Nobody “tells” me what to do and I havesolutions for nearly every risk that walksthough my door. Life is good.Things at Allstate do not appear to beso good. Local management in my stateseems to be getting desperate to hirenew bodies to replace the agents that areheading for the exits. An Allstate agentin my area was recently terminated andthe company tried to hire a replacement,but to no avail. After turning down twooutside buyers, they approached me andasked if I wanted to buy the agency.Naturally, I turned them down. A shorttime later, a former Allstate acquaintancecontacted me. She was on “specialassignment” with Allstate, which meantshe would be recruiting full time. Shesent me an e-mail informing me that thecompany would give me $5,000 for anyreferral that became an Allstate agent.Here is the response I sent to her:It is good to hear that you are back in thesaddle again going strong.Given the circumstances surrounding myrelationship with Allstate, and especially themanner in which they threw a fledging agencyto the curb in what was soon to be declareda failed vision, I am not inclined to refer myworst enemy to Allstate as a policyholder, letalone an agent.You are in a tough position, recruiting fora company that clearly doesn’t care about itsagents, their staff and their families. I amsorry your career remains with Allstate afterthis blatant act of disregard and seeminglyuncaring actions to rid the company of thevery people who built it.Perhaps someone who is so far in the woods– with respect to the Allstate – will have thestupidity to sign a deal with the devil company,but it will not be under my recommendationregardless of the monetary reward.You see, it is respect, appreciation and loyaltythat goes a lot further than money inthis case.I wish you and your family much happinessand good health.I am a former agent terminated for nothitting my Expected Results in AFS af-10 — Exclusivefocus Spring 2012

ter being an agent over 25 years. I startedan independent agency and a week later,I received a generic cease and desist letterthreatening to stop my TPP. My attorneyresponded and I thought everythingwas settled when I received a threateningvoicemail from the punk Allstate attorney– which I saved – claiming that Inever responded to his letter and that Iwas continuing to violate the covenantsof my Allstate non-compete agreement,both of which were false allegations. Tome, the worst part is that he didn’t do hishomework before calling me. If he had,he would have seen that I did nothingwrong. His call disturbed me greatly becauseI knew I was innocent.The following Monday, I call to tellhim he was mistaken and he tells mehe would have to review my file. Laterthat day, we spoke and he admitted thathe found the letter from my attorney,which he said had been “misplaced”. Ithen asked him about the “new information”he obtained that would prove Iwas soliciting my old clients. He offeredup the name of the client. It turns outI never solicited them; they came to meafter seeing my ad in the newspaper. Ofcourse, I also had a document on filestating that I never solicited them.This is the kind of behavior I am gladI will never have to deal with again. Theycreated the problem in the first place byfiring so many agents and now they aredesperate to stop the bleeding.I can’t wait until I receive my last TPPpayment. Then the real fun will begin.After seeing life on the independent side,I only wish I would have made the moveback in 2000, when they changed ourcontract. More money, less BS.I especially enjoyed the winter editionof Exclusivefocus. The content andthe layout were outstanding, Jim. Nancy,your piece on Jim was truly inspiring. Iecho your sentiments!I really appreciate all that you two dofor so many, including me.I look forward to seeing you in June, ifnot before.All the best,Dirk BeamerDear Nancy,As with each issue of Exclusivefocus, Iread it cover to cover even though I soldmy agency and retired in June 2008. Istill come into the office a couple of daysper week to work with the new owner,who was employed by me as a producerprior to the sale.I found the article Renegade or WhiteKnight to be especially interesting. I havenever met Jim, but I knew you from yourmanagement days with the company. I knewthat Jim had been terminated by Allstate, butuntil I read this article, I did not know thestory behind his termination. I also was notaware of the many awards that he had wonand the goals he accomplished as an Allstateagent. It is unbelievable that someone whohad achieved so much would be terminatedfor asking questions that any shareholdershould be asking of company management.I can honestly say that selling and retiringwhen I did was the best decisionthat I could have made. Do I resent thetime that I spent as an Allstate agent?Absolutely not. It provided me with anincome that I could not have imaginedwhen I began my career in a Sears storein 1987. Many good times were had duringmy tenure; however, as evidenced inother letters and articles from NAPAA,the environment has not gotten anyfriendlier as time has gone on.I truly applaud Jim, you, and all of thefolks at NAPAA for continuing the fightfor agents and their families. I wish you allthe very best and continued success as youforge on.Mrs. Fish,Great article, well-written and job welldone!One of the worst hatchet jobs in Allstatehistory clearly was the gutless, shamefuldismissal of Jim. Up until that move, Iactually had some respect for Ed Liddy andhalfway understood what he was trying todo with Allstate. The way he exercisedhis differences with your husband trulyshowed the man has b----s the size of raisins!As for me, Ed Liddy can rot in Hell!Keep up the great passion you and yourhusband have displayed with NAPAA.I read your article about your Allstate“journey” and, simply put, you two areAMAZING people…. heroes. Havinggone through the journey you have, builtsuch a huge book of business only tohave it stolen, and turn that awful eventinto a platform to help other people….that is what great people do.I am a long-term agent with a $7.5million book and very blessed to be inFlorida. Things are always a nightmaredown here when it comes to insurance,but premiums are high and the economyis better than in most areas, so meetingExpected Results aren’t quite as hard.I just wanted to thank you both VERYmuch for all you do....VERY MUCH. Iwill be finally getting off my lazy, apatheticass and join NAPAA this weekalong with the agent near me.I enjoyed reading Nancy Fish’s take onwhat her husband Jim is all about andthe things that drive him. His outspokencriticisms of Ed Liddy prior to his terminationwere something I never had theguts to do as a 35-year agent.One thing about the old corps of officers,it was a tradition for new RVPs toterminate a top producer because theywanted to show the agents who was boss.I remember a conversation with TSMGreg Pace in an airport after we’d bothhad a few drinks. We were talking aboutBill Monie, an Ed Liddy clone. He’d justterminated the number one producer inthe state, which befuddled all of us. “SeeDave, get the number one guy and theyall fall in line.”Doug Wendt did show some compassiontoward Jim, and I liked Doug a lot.At the time, we had a condescending jerkof an RVP by the name of Rich Scholl.Doug knew it, and on a Chairman’s Conferencehe took me into his confidenceand asked me about Rich. I describedhim as an overbearing disgrace and so on.Rich was later terminated. But Doug hadtoo much class for Allstate and ended upleaving for other opportunities. One ofmy deficiencies in character is when I’mcrossed, I bide my time until the time isSpring 2012 Exclusivefocus — 11

ight...like I did with Doug. But Jim justseems to have more courage and comesright out with his views.The other thing I like about Jim is youcan disagree with him. He still respectsyour intelligence and point of view evenwhen they don’t coincide with his. We’relucky to have Jim Fish.I’ve been following the constantlyevolving situation at Allstate and it is ashame what they continue to do to theagency force. They actually seem to believethey did the agency force a big favorby reducing their income by 10% ratherthan 20%!The manager who bought out my partnerand me recently admitted she has losta ton of business since she bought us out.Now her new agent grace period is setto expire. My guess is that she’ll be fairgame for a 90-day notice. She is also upsidedown on her loans. I still have no ideawhy she would have bought our agencies,knowing what she did at the time.After careful thought, I think it bestnot to summarize my career to ultimatelytelegraph who I am, where I’m from andto whom I sold my BOB. However, Iwill say that going to two NAPAA conventionsand listening to the speakers atNAPAA greatly helped lay the groundworkfor the contract I ultimately signed.I had two offers to buy my business andthey only offered a minimal amountdown. My accountant insisted on 20%and, thank goodness, I listened and heldfirm. Sellers need to understand the buyerhas little to lose and by the time Allstatecoaches them, walking away fromthe deal is too easy. Equally importantwas the fact that we did not get Allstateinvolved with our contract until it wassigned and presented as a done deal. Theonly things left were Allstate’s approvalof buyer and seller. The price never cameup by management.After decades with Allstate, I am veryunhappy to have left the business that Ilove. I thought of my clients as family andmy office staff remained loyal to me forumpteen years. However, the directionof the company caused me to lose morebusiness than I could write and I was goingbackward. Cash flow was getting lesswhile the company’s demands were escalating.Finally, the opportunity came tosell and I made a business decision to getout. Time will tell if I was wrong or right.I am putting feelers out to continueworking in the insurance business. Eventhough I’ve been through a lot, I am notready to say goodbye to this industry. Myexperience in insurance and in servicingthree generations of families makes mewant to continue to help families withtheir insurance needs.The sad thing is that I cannot understandwhy Allstate would want to losesomeone like me to the competition.I resigned as an Allstate agent in 2010because I felt the tension and mistrustbetween agents and management brewingand I knew that it was time for meto get out. So, I sold my BOB back tothem for less than it was worth in orderto make a fast getaway. I’ve been goneover a year now but I still hear from someof my old Allstate colleagues from timeto time. They always contact me to findout the step-by-step process I took to becomean independent agent.Whenever I hear that an agent has receiveda 90-day notice or that they can nolonger reinstate lapsed policies, I go to theagent’s office and ask them to refer businessto me. I give them my word that Iwill not steal the other lines of insurancein those households. So far, I’ve contactedroughly nine agents, including two whoattend my church. It has now been twomonths and not a one has called, emailedor faxed me one referral!You would think if an agent is leaving thecompany or is unable to renew a customer’spolicy because of Allstate’s new restrictionsand bundling requirements, they would offertheir valued customers an alternative,rather than leave them without insurance.How difficult is it for them to say, “I knowan independent agent that you can trust tolook out for your best interests”?Does NAPAA have an opinion on thissubject?Editor’s response: Even though Allstateprohibits agents from referring business toother agents on a regular basis, most have ago-to independent agent they can trust to helpthem with these situations. I used a handfulof independents who I knew would take goodcare of the customer and not rip me off. Mostof them were former Allstate agents whoI had known for years and whom I trustedimplicitly. Obviously, NAPAA can’t advocateviolating the R3001 agent agreement,but as a practical matter, it is a well-knownfact that most Allstate agents frequently referbusiness to other agents.I think your success depends on how wellyou know these Allstate agents and howwell they know you. If the relationship isn’tstrong, you probably won’t get many referrals.Perhaps you came on too strong andscared them away. If so, you might try a lessaggressive approach. Or maybe they alreadyhave an independent they’ve been using foryears. If this is the case, it may take severalvisits to their office before they agree to giveup a long-term relationship.Before agents decide to start referringbusiness to other agents, NAPAA recommendsthey carefully read the portion of theirAllstate agreement regarding this matter.I have a situation and am wondering ifI should report it to the Alert Line. MyFSL has been blatantly lying to me. I amafraid of what might happen if I ask thoseinvolved in the lie about it. One of thelargest agents in town was fired because ofone of the FSL’s lies. Can you help?Editor’s response: The Alert Line is operatedby a third party and is supposed to beconfidential. I also believe that your manager’sactions could be considered unethicalconduct, which would qualify. However, ifquestioned by the company, the FSL maysuspect it was you who blew the whistle.Furthermore, what would stop the FSLfrom denying it? Unless you can substantiateyour claim, you may need to gather someproof before reporting it to the Alert Line.Voicemails and e-mails could prove invaluablein this case.Continued on page 66.12 — Exclusivefocus Spring 2012

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social mediaBeyond Facebook: What Other SocialNetworks Can Grow Your AgencyBy Robyn SharpIf you’re using social media to promoteyour agency, you’re probably alreadyfamiliar with Facebook. It is by farthe largest and most well-known socialnetwork in the world and has the biggestuser base. However, there are a lot ofother social networks out there to considerusing in your agency marketing.Google+Google+ is a brand new social networkthat only launched a few months ago.When you sign up for Google+, you’llcreate a profile similar to Facebook. Youwill also connect with other people, whoare called your Circle. You can divideyour Circle into smaller groups if you’dlike to share more limited informationfrom one group to another.People are using Google+ similar tothe way they use Facebook, except for afew key differences. One is that there isa lot less personal information. On Facebook,you get more of a running commentaryand personal photos. Google+tends to be more focused on sharing information.If you are blogging or writing articleson your website, Google+ is a great placeto share them. Why? Because every timeyou share an article, you give it a +1. Itwouldn’t be that big of a deal, exceptthose +1s show up in the Google searchresults and provide social proof of greatcontent and helpful information. Andanything that helps boost your searchengine results is a good thing!Google+, at least at this time, is probablynot where you’re going to connectwith a lot of clients.It is best used as a tool to share information,find great content, and help boostyour own site’s rankings.LinkedInLinkedIn is another extremely popularsocial network. It is completely differentfrom the others and has a few uniqueaspects that could help you attract newclients.First of all, LinkedIn is not just forjob seekers, a common misconception.LinkedIn is really a great place to showyour professional background. Whenyou sign up for a free profile, you’ll basicallyinput your resume information.This includes college, past jobs, awards,and affiliations.You’ll be able to establish “connections”with other people you know orwould like to get to know for businesspurposes. Your profile is mostly publicon this social network, which is a goodthing because you want to be found by alarge number of people.Here are some of the ways Allstateagents can use LinkedIn. First, it hasexcellent search results. If someoneGoogles your name, most likely a LinkedInprofile will be one of the top two results.It’s a great place to list all of yourcontact information so you are easy toreach. Fill out your profile completelywith website address, phone number,and email. That way, if a potential clientis looking for you, they’ll know how toreach you.Second, LinkedIn is a great place toget recommendations and testimonials.You can request a recommendation fromyour fellow connections that is shownpublicly on your profile. It is also goodetiquette to write a recommendation foranyone who writes one for you as well.Third, LinkedIn has a large number ofniche networking groups on the website.If you sell commercial insurance productsto a niche group, then LinkedIn is a greatplace to search for those business owners.Simply search the topic in the Groupsfeature and join any relevant group. Eachgroup has its own discussion board wherepeople share tips and articles with othergroup members. You’ll also find quite afew groups for networking with otheragents and getting marketing tips.And fourth, you can use LinkedIn toget introductions through your connections.Maybe you want to meet a goodcontact with a local organization but don’tknow anyone there. Search for the organizationon LinkedIn and see if any ofyour connections are connected with anemployee at that organization. Then askyour connection for an introduction! It’san easy way to network without addingmore luncheons to your packed calendar.TwitterTwitter is a little confusing at firstbut is very unique when it comes to so-14 — Exclusivefocus Spring 2012

cial networks. It is not as mainstream asFacebook or LinkedIn and has a differentsort of user base.Twitter is very public and while peoplewill follow you and vice versa, it is notthe same as a private Facebook friend.Twitter is a great place to find up-to-theminuteinformation and conversationsamongst people who don’t really knowone another.You might recall watching TV in theevening and seeing a show mention a“hashtag,” which is the hash symbol (#)used as a prefix to create conversationcategories on Twitter. This is “Twitterspeak” for a search term on the socialnetwork. An example would be #Shark-Tank, which is used for followers of theABC TV show, Shark Tank. Everyonewho uses Twitter and wants to talk aboutthe show will write their comments andinclude the hashtag in their tweet. Thenothers can search for it, read the comments,and respond. It makes informationmove very quickly.Twitter, liked LinkedIn, is a great placefor insurance agents trying to reach aniche market. If you’re looking for a certainbusiness owner or subject, go searchit on Twitter and see what you can find.Most likely, you’ll find a wide range ofpeople to follow and build relationshipswith. But since it is not as effective as aniche topic, is generally not recommendedto use Twitter for your basic auto andhome insurance sales.YouTubeYouTube will always be one of the topsocial networks and a great place for youto market your agency. After Google,YouTube is one of the top search enginesin the world! It is an easy place to shareinformation and get your name out there.Videos are easier to make than ever before.Most laptops now come with builtinwebcams and many smart phones arenow capable of taking high quality video.Make videos that address common questionsand offer solutions to your clients.The most important thing you can dois to clearly write what your video is aboutin the description settings as you uploadit. Write a link to your website and makesure to include your name, business name,city and state in the description. This willhelp you achieve better search engine results.You also want to clearly name yourvideo so that it compels someone to clickand watch. After creating a video, you canpost it on your website and share it on allof your social networks in order to reachmore people.Social media is always changing butdoesn’t have to be hard to use. The mostimportant thing is to set up your profileson various networks and make an effortto spend five minutes a day connectingwith new people and getting your nameout in your community. EfRobyn Sharp is a former insurance agentand owner of www.SocialMediaForInsuranceAgents.com.Visit her website to get freetips and information on how you can usesocial media to attract more clients and getmore referrals in your agency, while puttingyour social media on autopilot.Spring 2012 Exclusivefocus — 15

featureDavid Carr: the Exclusivefocus InterviewDavid Carr is the creator of ALLBlue-Blog (ABB), a social networking site andcommunity support forum that caters tocurrent and former Allstate exclusive agentsacross the United States to exchange news,information and support. ABB was createdin December of 2008, and has grown tomore than 4,400 members. Exclusivefocusrecently had a chance to learn more aboutDavid and the success of ABB. Following isour interview.Exclusivefocus: Tell us what led you tobecome an Allstate agentDavid Carr: Before becoming an Allstateagent, I worked in the insuranceindustry from 1990 to 1999. I startedin the Insurance Group at First Union,which was initially purchased by Wachovia,and later by Wells Fargo. With FirstUnion, I was selected to participate in afinancial services pilot program and didpretty well at it. I then changed careers tobecome a sales executive at a data communicationsstartup. Within a few years,the company was purchased by a Californiadata communications company, and Iwas downsized out of a job.Since I had previous insurance andfinancial services experience, I beganto research the possibilities of openingmy own insurance agency. At the time,Allstate seemed to be the right choicefor me. I wanted to be self-employedand they said I would be an independentcontractor. With my background,I thought I would get off to a fast startby selling AFS. It seemed like the bestopportunity available at the time, givenmy experience. As a result, I decided toaffiliate with Allstate and in Octoberof 2002, I bought a small book of businessin Columbus, Georgia, after a long,drawn-out approval process.Exclusivefocus: Why did you decide to sell?David Carr: In 2004, I bought anotherBOB, and was heavily involvedwith internet leads. And since I was aborder agent, I was able to market bothGeorgia and Alabama. I often wonderedwhy Allstate allowed me and others tosell policies so far from our offices. Asan example, I wrote a significant volumeof business in the Metro Atlanta area,which was a hundred miles away.Several years later, the lead companyI was using decided to sell my territoriesto another Allstate agent who offeredto pay them more money. Soon after,I decided to stop buying internet leadsaltogether. The internet lead companiesgot greedy and began to sell the sameleads to multiple Allstate agents. Manyagents have since told me that their retentionsuffered badly after utilizing internetleads, but my own experience waspretty good. It was my ALI that suffered.Many internet lead customers have nolocal agent, which probably creates someunhappiness.There were a couple of factors that ledme to sell my agency. The Agency DevelopmentBonus went away and when Ibought my second book and I was reclassifiedas a large agency, which increasedmy quotas. And in spite of my financialservices experience, I was having troubleselling AFS. During 2007 or 2008,the company introduced Resources ForGrowth (RFG). I guess I was guilty ofnot paying attention to all the detailsof the program and RFG negatively affectedmy business. It seemed absolutelysenseless to spend money chasing lowpremium Emerging Business (EB) policiesbecause there was no money in it, except– as I learned later – at bonus time.Then there was the ever-increasingtendency by Allstate to micromanage theagents. It seemed they wanted to controlevery facet of the business, which was contraryto the reasons why I signed up withthem in the first place. In addition, beingan agency owner was no longer as fulfillingas it had been in the past. All of thesethings led to my decision to sell. At thispoint I had two interested and approvedbuyers, one of whom worked for me. Isold him the business in the fall of 2010.I felt that he was the best choice becausehe knew the customers better than anyone.Exclusivefocus: Why did you start ALL-BlueBlog?David Carr: I had an interest in SocialMedia for several years and startedtwo other small-scale community networksusing the Ning platform beforestarting ABB. The success of these socialnetworks led me to think that theconcept would be beneficial for Allstateagents too. I envisioned a place whereagents could share ideas, common problems,and solutions on a national basis.I think this has proven to be true, basedon the growth of ABB membership andthe number of discussions posted. Thefeedback I have received has been verypositive and I think that I have achievedwhat I set out to accomplish.16 — Exclusivefocus Spring 2012

Exclusivefocus: Today, ABB has exceeded4,400 members, most all of whom areAllstate agency owners. How does it feelto know that your followers include nearlyhalf of the Allstate EAs in the country?David Carr: Achieving over 4,400members has exceeded all my expectations.I feel very strong about the qualityof the content offered by ABB and thatI will continue to try to increase overallmembership to even greater heights.Other goals of mine are to encouragecurrent members to participate more frequently,and to provide quality content.Exclusivefocus: Do you have anythoughts on what Allstate might thinkabout your success?David Carr: I believe this can be measuredby how many requests ABB getsfrom Home Office employees asking tobecome members - they seem interestedin what the agents have to say.Exclusivefocus: After your success withABB, Allstate decided to launch a competingsite for agents called the Agency Community.Have you lost members becauseof their efforts or are you seeing continuedgrowth?David Carr: Allstate’s launch of theAgency Community has had no impacton ABB – we just continue to keepgrowing. ABB pre-dates the companynetwork, so we already had a loyal following.Exclusivefocus: Naysayers complainthat many of the most prolific contributorson ABB are “disgruntled”. What is your reactionto such catcalls?David Carr: I think that the “naysayers”are unfortunately missing some ofthe fundamental concerns of Allstateagents with this attitude. They wouldbe better off trying to understand the issuesimpacting the agency force and tryingto resolve these concerns. I believeABB is a measure of the real world, andmore progress could be made by listening,rather than trying to rationalizeagent concerns.Exclusivefocus: You must be a big fanof the First Amendment of U.S. Constitution.David Carr: Of course I am. Yet manyABB members still feel more comfortableutilizing the anonymity feature onABB – something that does not exist onthe Agency Community. I think the factthat so many feel it necessary to masktheir identities is very symptomatic ofsome of the basic trust issues that existoverall.Exclusivefocus: Now that ABB is firmlyestablished, what’s next?David Carr: Obviously, I would like tocontinue to grow the membership. I amalso working on several additional featuresto help member agents. However,ABB continues to require additionaltime and resources on my part. I knewthat ABB would eventually become a fulltime endeavor and I have now reachedthat point. I have been soliciting donationsto help cover my time and effort,but it is a very time-consuming process. Iam currently exploring alternative methodsthat will solve this burden and keepABB financially viable for the long term.Exclusivefocus: You will be speaking atNAPAA’s National EA Conference in NewOrleans on June 21st. What are your expectationsof the event?David Carr: I am looking forwardto this event and hope I’ll get a chanceto finally shake hands with some ABBmembers as well as get acquainted withagents who don’t know about ABB. I’vespoken to hundreds of ABB membersand it would be great to have the chanceto meet them in a more personal setting.I think the conference will be fun andinformative and I hope there will be alarge turnout. EfYour Products Aren’t “One Size Fits All”So Why Choose An AMSBuilt For Another Agency?Nightly downloads • Flexible agency reporting • Easy-to-access To-Do’s and xDates• Document importing • Secure, simple and fast • Starts at $35/monthFind your perfect platform today at www.eAgent.netSpring 2012 Exclusivefocus — 17

sales and marketingDon’t be Tempted byUnproven Business AdviceBy Bill GoughFor my article this month, I want toshare an extremely valuable pieceof knowledge – be careful whoyou take business advice from. Just aswe wouldn’t trust a babysitter who is unqualified,inexperienced or who has poorchildcare skills, we should also be mindfulof those we trust for business advice.There are many peddlers who talk a goodstory as they try to sell you the secretsof success, but few have bona fide credentialsor real world experience. This isespecially true in the business of sellingand servicing insurance. Success in ourbusiness is dependent on getting soundadvice from those who are able to backup what they say with solid credentialsand a long track record of success in ourindustry. Many times our gut instinctwill warn us when something soundstoo good to be true, but not always. Asa result, we must always watch for advicethat may be unfounded and unreliable –it is everywhere!Taking business advice from the wrongplace does nothing but set you up to fail.We must take advice from those who aredoing it successfully. I practice what Ipreach – when I first got serious aboutinvesting in business coaching about 20years ago, I knew I had to seek out thebest if I wanted to be the best. That’swhy I joined some business, marketing,and mindset coaching groups and startedassociating with top performers. It wasn’tlong before I found myself among them.Good business coaches not only helpyou attain your goals quicker, they alsokeep you accountable to your goals sothat you achieve the results you want.It’s no secret that we need to take actionquickly and decisively to make goodthings happen. Your business coachshould also help you make smart decisionsthat make your business profitableand grow efficiently.We know we must be committed,work hard and improve every day in orderto get to where we want to be. Thebest business coaches give you the tools,strategies, techniques, and motivationyou need to grow and profit. With agood business coach, remaining stagnantis not an option. Good coaches and goodleaders take the initiative and do whateverit takes to catapult their players andbusinesses to the top.The reason I know all these things isbecause I did it myself in my Allstateagency, where I succeeded through hardwork, dedication and by soaking up allthe business advice I could learn fromtop performers and my business coaches.Following is my story in a nutshell.In the mid-90s, my wife Vanessa convincedme that we should be going onChairman’s Conference trips instead ofPresident’s, so to make this happen, Istarted talking to the people I knew whowere already earning these awards. From1998 to 2009, I made it a point to winthese awards. Once I won my first Chairman’sConference and Leader’s Forum, Iwas able to get acquainted with some ofthe company’s top performers and as a18 — Exclusivefocus Spring 2012

esult, I quickly became one myself.In 2000, after we became independentcontractor entrepreneurs, I startedseeking advice from business coachesfor small business owners. After doingthis, I quickly discovered that the biggestadvantage we have as local small businessowners is the relationships we havewith our customers, prospects, and centersof influence. When I started focusingon this, my business made some bigperformance increases – I moved up inthe rankings from the top 3% to the top0.5%! In the Allstate world, this meantmore money, better associations, andwinning Inner Circle Awards.One other big benefit of my experiencewith small business coaches was that Ilearned that instead of allowing my businessto consume my life, it should justbe part of my life. Before I learned thisall-important precept, I had made themistake of allowing my Allstate agencyto become my whole life. Once I gotclear on this and followed suggestionsmade by my business coach, I was ableto separate my business life and my personallife. Now things were even betterbusiness-wise, yet I found myself beingless involved in the day-to-day minutiaof my agency, which freed me up to domore strategic planning and marketing.This happened at a critical time inmy life, as my son Bill III accidentallydrowned on January 1, 2007. Needless to“Taking businessadvice from thewrong place doesnothing but set youup to fail.“say, I was a mess and spent most of 2007away from the office. But because of thenew agency structure, business systemsand processes, 2007 was our best yearfinancially.In 2008, I started a marketing businesswith the goal of helping agentsachieve the same kind of success that wehad experienced in my agency. I wantedto be able to share the information andtechniques I learned from my businesscoaches so others could also reach theirmaximum potential for success.The awards we’ve earned, and continueto earn, are awesome, but nothing meansas much as the philanthropic work we dothrough my son’s memorial charitablefund. Since the loss of my son, Lil’ Bill,in January 2007, we have donated over$275,000 to charity, including endowmentscholarships to Northwest ShoalsCommunity College, The University ofNorth Alabama, and Auburn University.Our goal is to donate $1,000,000 byNovember of 2018, exactly 10 years afterfounding my marketing company. EfBill Gough is an Allstate agent and Presidentof BGI Marketing Systems. He will bea keynote speaker at NAPAA’s National EAConference in New Orleans on June 22nd.BGI is a company dedicated to helping Allstateagents take their agencies to the nextlevel of growth while maximizing profits.Bill can be reached at Bill@bgisystems.comor by calling 877- 208-9649.Spring 2012 Exclusivefocus — 19

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featureGrounds for Divorceby I.M. DisappointedMy story is not new. In fact, it isbeing told over and over againall across the country. Therefore,I will try not to bore you with mundanethoughts of anger and resentment,even though they were part of my overallexperience. But instead, I would like totell my story and why I believe that anyjudge with half a brain would rule thatAllstate has given me grounds for divorce.I ran a successful small business withthe Allstate name on my front door for17 years. I had a 93% retention ratio,so our customers liked us. I also had a45% loss ratio, so our customers behavedthemselves. I won Honor Ring almostevery year and earned National Championsa few years too. Although I wasn’t asuperstar, I wasn’t a slacker either.Things started to get weird when Allstatestarted a brokerage. I wrote $20,000to $30,000 of life production per year inmy office with a life specialist. When thebrokerage was started, my Expected Resultsminimum jumped to $44,000. I’mnot sure what percentage of the agentsin my region wrote that amount of insurance,but I’m guessing it was prettylow. I asked managers numerous timesand got no answer.As a result of the new AFS quota, Igot the letters and threats that I neededto improve. All of a sudden it dawnedon me that I was not the kind of agentthe company was looking for anymore.I also realized that my personal goal ofrunning a stable business successfullywas no longer going to fit the company’snewfound philosophy. It was grow, orelse! I honestly didn’t want to grow byleaps and bounds; I was happy maintainingmy current level of business.If the story ended here, it would havebeen much better for me, but it didn’t. Itwasn’t enough for Allstate to kick me out,along with many other agents in my region;they also tried to dictate who I soldmy agency to. I had two offers for aboutthe same amount of money, but one ofthe buyers wanted me to hold a note forhalf, while the other was going to payit all up front. Naturally, I preferred thebuyer who was paying up front. Allstate,on the other hand, wanted me to sell tothe other buyer so that certain managerswould get their hiring bonuses.There wasn’t much I could do about it,since the company has complete controlover the buyer approval process. I askedthem to put in writing what I needed toget the second buyer approved, but theywouldn’t do it. When I pushed, theytold me they would have an answer afterspeaking to the legal department. Instead,after two days of waiting, the buyerof my choice, who had been willingto pay up front, magically lost interest.He sent an email saying he was no longerpursuing the purchase of my agency.You see, he was an existing agent, not anSpring 2012 Exclusivefocus — 21

outside buyer – and as such, nobody inmanagement would get a bonus for hiringhim.The one thing I’m not sure about iswhat they offered him to back away fromthe sale. Maybe it was the promise of afuture agency that he could merge intohis current location, or a split of the bonusmoney. Who knows? But I am convincedthat he didn’t just back out on hisown. We had even signed a contract.So now I am selling to someone andholding a note for half of the money.When I tell this story to outsiders, theywonder how the company could be so viciousand hateful to play these types ofgames with someone’s life savings andfamily security. It baffles me too. I don’tbelieve I have an enemy in this company.As far as I know, I’ve always maintainedgood relations with everyone. For them todecide to treat one of their own this way –much less someone who hasn’t done anythingdisruptive – is unconscionable.At this point, I just have to be glad thatI am leaving and will no longer have todwell on the brutal treatment from a desperatecompany. They couldn’t figure outhow to get new agents on board successfullyto sell their products, so now theyare trying to stick “yes men” into currentagencies that are already making money.In addition, they have watered-downour product so that it is by far the worston the market. Every time we have a seriousstorm in my state, all the houses onthe street get new siding and shinglesexcept for Allstate customers. We arealso the only company in my state with a“Tropical Cyclone Deductible”. So whileState Farm and Nationwide customerspay a deductible of $250 or $500, Allstatecustomers are on the hook for thousands.If all companies were making the samemoves as Allstate, I wouldn’t worry toomuch. But if I were staying with Allstate,I would have to face those who trustedme to manage the risks they face onlyto admit that their policies have becomecoverage-deficient and, in the event of aclaim, that they would be treated poorlycompared to those insured with othercompanies. Does management expect usto hide these truths? I am not willing todo it. I am not a used car salesman andwas never in this business to rip peopleoff. That’s exactly what I feel I would bedoing if I had to sell one more homeownerpolicy in my area.The last thing I want to post here is asimple timeline:• Allstate spends $1 billion to buy Esurance.• Agent commissions are cut to 9%.• Long-established agency owners areterminated or threatened in order to reducethe number of agencies.• Allstate beefs up overall ad spending,particularly during college bowlgames. Ad budget may now be biggestever.• Allstate unfurls major co-brandedEsurance ad campaign.The company’s end game is anyone’sbest guess. In my mind, it won’t be longbefore Allstate agents are competing forthe same products that are being soldthrough other distribution channels ofthe company – and for less money.It’s unfortunate and sad that Allstatehas gotten this greedy and shortsighted,especially considering they had a worldclassbrand, a great agency force and allof the potential in the world. EfRHINOTEKProviding Premium Imaging Supplies for Over 28 Years!RHINOTEK is a preferred NAPAA supplier for ink and toner products.Great Savings - Group Buying DiscountsGuaranteed Quality - Higher Page YieldsFree Shipping - 30 Day Net TermsHelp the Environment - Save the RhinoWe provide our customers with value every step of the way!• A vast selection of 6500 compatible and OEM imaging supplies• Over 28 years as an industry leader of premium inkjet and toner supplies• High-quality output, vivid colors and exceptional yields• Compelling price to performance value• A knowledgeable sales team focused on your growth through savingsTRYING TO SAVE MONEY BY MAKING WISE PURCHASING DECISIONS?A RHINOTEK NEW LIFE PRINTER and PREMIUM TONER CARTRIDGE IS YOUR BEST SOLUTION.Part Number Product Description NAPAA PriceNA13MS-Q5927A RHINOTEK CERTIFIED PRE-OWNED HP LaserJet 1320 with 13 Month Warranty $255QH-1320 RHINOTEK Compatible HP Laserjet Black Toner Cartridge - 7000 yield $72Call your representative today at (800) 695-RHINO for special NAPAA pricing on all Rhinotek branded ink, toner and maintenance kits.Don’t forget to ask about our complete line of Certified Pre-Owned New Life Printers.Rhintotek Computer Products, Inc. 2301 E. Del Amo Blvd., Carson, CA 90220 (800) 695-RHINO www.rhinotek.com/napaa.htm22 — Exclusivefocus Spring 2012

legal mattersSeller Financing – What Does It Mean?Given all of the uncertainty surroundingAllstate’s relationshipwith its agency force, a recordnumber of agents are exploring sales opportunities.When analyzing competingoffers, a significant question for the selleris, “Do I provide ‘seller financing’ in orderto fund the deal?”Assuming they’re getting their askingprice, most sellers would agree that a cashdeal – where the buyer pays 100% of theagreed price at closing – offers the simplestand least anxiety-ridden exit option. Somesellers, however, may welcome the opportunityto earn interest income at above marketrates by allowing the buyer to pay some orall of the price over time with interest. Or,more likely, the seller may have no optionother than to agree to finance some portionof the sale price if the buyer cannot obtainlender approval for the full price.Whether financing only a portion of thesale price or 100% of the sale price, sellersshould keep several key points in mind.Seller Finances a Portion of theSale Price:It is increasingly common that borrowerscannot obtain 100% of the sale pricefrom traditional commercial lenders(CLs). No doubt a tighter credit marketcontributes toward this trend. Increasinguncertainty about agent compensationand a rise in the number of agenciesavailable for sale may also drive down theperceived market value of those agenciesin the eyes of the CLs, making themunwilling to finance at higher values.Buyers still willing to pay those highervalues must make up the difference fromanother funding source.If you are a seller, here are some questionsyou should ask when evaluating an offerthat includes a seller-financed component:Do I accept the deal?• Compare your offers.If you have a cash offer that is smallerthan the total amount of the financed offerbut has a greater amount of cash upfrontat closing, you may decide a birdin the hand beats two in the bush andaccept the cash offer.• Is the cash portion sufficient to justify thesale?If you don’t have other offers, ask yourselfwhether the cash portion of the proposeddeal – assuming you never saw adime of the amount financed over time –is still sufficiently large to warrant the sale.What is the risk of financing a portionof the loan?• Buyer default.For any lender, the risk is that the borrowerstops making payments on the loan.When that happens, you are forced to takelegal action to secure what you are owed.Depending on the assets of the buyer, thismay or may not prove successful. In anyevent, it will cost you time and money.• Junior lien position.If you are financing only a portion ofthe sale price, presumably a CL has financedthe portion of cash at closing.The CL will insist upon maintaining asenior lien position against the buyer’sassets – including commissions and TPP.So, if the buyer defaults on payments toboth the CL and you, all of the assetssubject to liens will be applied first towardpaying off 100% of the debt to thecommercial lender before any proceedsare available for you.• Bankruptcy.In a worst case scenario, your buyermay file bankruptcy. In most cases, thisSpring 2012 Exclusivefocus — 23

will effectively wipe out the debt andleave you without further recovery.What collateral or security can I hold?• Commercial lender may dictate.In theory, you can ask for any form ofcollateral or security (e.g., lien on TPP,mortgage on home, etc.) you choose. Inpractice, the CL will have limitations onwhat the buyer can or cannot offer to juniorlenders like you.• Does your loan violate the commerciallender’s loan conditions with the buyer?In some instances, the CL may be unwillingto loan money to the buyer for asales price that exceeds the commerciallender’s valuation of the agency. Buyersand sellers may try to get around this byprivately agreeing to a higher sales pricethan the one represented to the commerciallender. This is a risky practice. At aminimum, it could be a violation of thebuyer’s loan documents, creating a defaultthat would allow the CL to call theloan due immediately. Worse, it may implicateone or both parties in bank fraud.100% Seller Financed Sales:If you choose to finance 100% of thesale price, you assume 100% of the risk ofthe buyer’s default. The upside is that younow should be in first position to claimrecovery against the buyer’s assets if theyhave been properly pledged as collateral.The greater the value of those assets (includingthe TPP), the greater comfortyou can take in seller financing. Again,here are some questions to consider:• Should I finance the deal?This is a difficult question requiringcareful consideration. In general, avoidthis option unless you have no other viableoffers, and you have high confidencein the value of the collateral.• What are the risks?The risks of default and bankruptcyas described above still exist. They growin magnitude, however, because of theamount unpaid and owing.• What is my security?You must put a valid Asset PurchaseAgreement in place, backed with aPromissory Note and Security Agreement,if you wish to protect your positionas a lender. Additional types of securitymight include:• Personal guarantees from the buyer andthe buyer’s spouse;• A mortgage against the buyer’s personalresidence or other real estate;• An assignment of monthly commissions;• An assignment of the buyer’s interest inthe TPP;• Disability and life insurance on the buyer;• Liens against other assets of the buyer.If you intend to protect the loan withany of these types of security, you needto make sure that the appropriate legaldocuments have been put in place.When dealing with an Assignment ofCommissions or an Assignment of theTPP, you need to make use of the existingAllstate documents. Unfortunately,Allstate’s rules concerning how it administersthese assignments change fromtime to time.WRIGHT BEAMER, AttorneysSERVING NAPAA AND THE AGENTS OF ALLSTATE SINCE 2000DIRK A. BEAMER, ATTORNEYEXPERT CONSULTING FOR AGENTS AND THEIR ATTORNEYS ON:• ALLSTATE CORPORATE SECURITY INVESTIGATIONS• BUYING & SELLING BOOKS• ALLSTATE EA AGREEMENTSPH: 248.477.6300WRIGHTBEAMER.COMDBEAMER@WRIGHTBEAMER.COMConclusionAlthough generally not the preferredoption, seller financing constitutes an importantcomponent of many sales of theeconomic interest in an Allstate agency.If you are the seller providing the financing,analyze your options carefully andthoroughly. Think of yourself as a bank.Demand the same level of disclosure fromthe borrower (your buyer) and as muchcollateral in the form of other assets, asyou can. Review the matter with yourCPA and your lawyer to make sure youhave covered the pertinent financial andlegal considerations. And, perhaps mostimportant, make peace with the level ofrisk you are willing to accept. EfDirk Beamer serves as General Counselto the National Association of ProfessionalAllstate Agents (NAPAA) and helpsNAPAA track legal issues of interest to itsmembers. NAPAA has provided this updatefor informational purposes only. The contentsshould not be construed as legal adviceor an endorsement from NAPAA or its attorneys,and NAPAA expressly disclaimsany such advice.24 — Exclusivefocus Spring 2012

2012 National EA Business Conference & Job Fair2012 NationalEA Business Conference& Job FairJune 20-22 – New Orleans, LAFrom the French Quarter – where visitors can savor fresh beignets at Cafédu Monde or sip a Hurricane at Pat O’Brien’s – to the Warehouse and ArtsDistrict where you will find the awe-inspiring National World War II Museum,New Orleans offers something for everyone. We hope this year’s conference goerswill extend their stay and take in some of the world-renowned tastes, sitesand sounds of this marvelous city.For this year’s conference, we have put together an optional Dual EventPackage that allows you to attend the National EA Conference plus an all-daymarketing workshop conducted by Bill Gough. Bill will conduct his workshopon Wednesday, June 20th at the conference hotel, a day before the National EAConference begins.This is a great opportunity to attend two first-class events at a rarely discountedprice. If purchased separately, the combined cost would be $398. Butyou can attend both events for the ultra-low price of $297! Can’t attend both?No problem – you can attend either one. To attend the conference only, the costis $149. If you wish to attend Bill Gough’s workshop only, the cost is $249.This year, we will feature ten speakers who will share their secrets and experiencewith you. Last year, master marketer Bill Gough wowed the crowd, and he’s comingback to reveal even more of his marketing expertise with us. Then, in his firstconference appearance, David Carr, founder of ALLBlueBlog (ABB) and formerAllstate agency owner, will reveal the story behind ABB’s astonishing rise in popularity.Also, for the first time in several years, Jim Cason, NAPAA’s first president,will attend. Read more about this year’s speakers and topics in the pages that follow.The HotelHarrah’s Hotel and Casino228 Poydras Street, New Orleans, LA701301-800-427-7247Special NAPAA rate: $159+taxHotel Reservations: Call 1-800-427-7247 – Ask for Group Reservation Code“S06NAPA” (Second digit of group codeis a “zero”)Limited number of rooms available atthis rate - expires May 23, 2012Deposit required at time of reservationCancellations must be made 72 hoursprior to arrival date or forfeit depositNOTE: Hotel guest 21 and under are allowedon the hotel property, but statelaw prohibits anyone under 21 from enteringcasino buildings.Spring 2012 Exclusivefocus – 25

2012 National EA Business Conference & Job FairSpeakers and TopicsBill Gough: How to Convert New Prospects and Keep Existing Customers for LifeBill Gough is an energetic and enthusiastic individual who will not only captivate you, but will share some ofthe ideas that have helped make him a super-successful Allstate agent. At this year’s conference, Bill will revealhis secrets on how to retain new and existing customers for life. Retention is likely to become a greater focus forAllstate in the years ahead, so don’t miss this important session.During his 28-year career, Bill has been the recipient of many company awards and accolades. His accomplishmentsinclude earning the following awards multiple times: Honor Ring (Regional Champion), InnerCircle, Leader’s Forum, Chairman’s Conference, National Champions, and Alabama Agent of the Year.Bill was a charter member of the NAB – where he served from 2004-2008 – and has served on both theSoutheast Regional Advisory Board and the Alabama State Advisory Boards.In 2008, Bill founded BGI Marketing Systems, a company devoted to helping agency owners grow their businesses by usingproven marketing systems and processes. These are the same techniques he used to turn his agencies into some of the most productivein the country.David Carr: From Allstate to ALLBlueBlog and BeyondDavid Carr is the creator of ALLBlueBlog.com, a social networking site and community support forum thatcaters to Allstate Exclusive Agents across the United States.Born in Endicott, N.Y. and raised in Charlotte, N.C., David received a B.A. in business management (’90)from North Carolina State University. After college, David spent nearly a decade working as a sales executiveand developing pilot programs for Corporate America. In 1999, David joined a data communications start-upcompany providing broadband Internet access in the Southeast.After a few short years, David traded his 9-to-5 to explore the potential of entrepreneurship when he purchaseda small Allstate agency in 2002. Within 7 years, David grew the agency to over $3.6 million in annual premium.In 2008, David created multiple social networks. He has found unimaginable success with ALLBlueBlog.com, a site neither affiliatedwith nor funded by Allstate Insurance Company. David runs and facilitates ALLBlueBlog.com via donations from its members. A full-timeendeavor, David has successfully aligned the site with companies that help agents through strategic creative marketing products.When David’s not helping others find their voice and realizing their potential in entrepreneurship, he enjoys spending time with his twoboys, Ben and Sackett, as well as Pilates, photography, videography, and working to form an exciting soon-to-be nonprofit organization.Michael Goodwin: NAPAA/ Guild 17 Status ReportWith their jobs threatened more than ever before, agents are seeking remedies to help them preserve theiragencies and their way of life. As we’ve learned, the Allstate contract is a one-way street fraught with speedbumps, potholes and other perils that agents must navigate properly to keep their jobs. Find out what hastranspired since NAPAA affiliated with OPEIU last fall.Michael Goodwin has served as International President of the Office and Professional Employees InternationalUnion, AFL-CIO, CLC since his election in 1994. He joined OPEIU in 1960 as a mailroom clerk.Rising in the ranks of OPEIU’s New York Local 153, he was elected secretary-treasurer in 1977 and businessmanager in 1994. Goodwin was elected to the Executive Council of the AFL-CIO in 1995.Steve Hite: Creating a Successful EA/EFS PartnershipSteve is an Exclusive Financial Specialist from Tucson, Arizona. Having been both an EA and an EFS, Stevebrings a unique prospective and understanding for what it takes to develop a successful EA/EFS partnership.After many years of running successful businesses, Steve began his Allstate career as a scratch EA in 1999.That same year, he was the top producer in the Southern Arizona’s Fall Life Promotion. In 2005, he switchedgears and became a full time EFS. Steve has earned numerous company awards, both as an EA and an EFS.He has been a qualifier of the Million Dollar Round Table for many years and is a multiple recipient of thePrudential Annuities Master Council. In addition, he has served two years on the Southwest Region’s EFSAdvisory Board.Steve looks forward to sharing his knowledge and strategies of to how to develop a successful partnership with your EFS.26 – Exclusivefocus Spring 2012

2012 National EA Business Conference & Job FairTroy and Lynn McDonald: Twice the Tips – Marketing Ideas that WorkThis dynamic husband and wife team is sure to entertain you with their presentation this year. Withover 50 years of combined Allstate experience, they will present an array of sure-fire sales and marketingideas that will help propel your agency to the next level of success.More seasoned Allstate agents will recognize Troy from the days when he traveled the country – atAllstate’s behest – sharing the secrets of his success.Lynn started her Allstate career in Madison, Wisconsin, where she was always in the running for thenumber one spot in her territory. She and Troy met at an Allstate conference and the rest is now history.Lynn sold her agency in Madison and moved to Memphis and bought two books of business. Troyrecently said, “Marrying Lynn was the smartest move my life and the second smartest was when I became an Allstate agent.”Eventually, Lynn sold her Memphis agencies and went to work in Troy’s agency. As a team, they were unstoppable and theagency was always among the top in the country. Individually, they compiled an impressive collection of company awards andhonors.Troy sold his agency to his son a couple years ago, but remains actively involved in developing and implementing marketingideas, while Lynn still works in the agency.Get ready to take a lot of notes during this presentation because its guaranteed to be chock-full of great sales ideas.Debe Campos-Fleenor: Marketing Outside the BoxDebe earned rave reviews for her Frugal Marketing presentation at the 2010 National EA Conference inWashington, DC, so she’s coming back again this year to reveal more of her sales and marketing secrets. Don’tmiss this must-see presentation!Debe began her affiliation with Allstate in 2004 when she accepted a job as a part-time staff person in anAllstate agency. She liked the work and eventually concluded that becoming an Allstate Exclusive Agent wouldbe a sound career move. In July 2006, Debe opened her own scratch agency in Tucson, Arizona.Debe joined NAPAA after she opened her agency, and became a member of the NAPAA Board of Directorsin 2008. She is currently the Executive Vice President and has also served as NAPAA Treasurer. Debe haswon the Allstate Helping Hands Award several times and has made significant financial donations to the Allstate Giving Handscampaign since 2006.While she is active in many groups and organizations, she decided to become involved in NAPAA to make things better forAllstate agency owners.Tom Sanders: Buying and Selling AgenciesTom Sanders will lead a panel of experts in a discussion about buying and selling Allstate agencies. The sessionwill include ample time for Q&A, so get your questions ready!Tom is a Vice President at Capital Resources and has been in the insurance industry for over 24 years. He hasstarted a scratch agency, bought and sold agencies and has been involved in the processes of valuation, negotiationand sales structure of Allstate and independent agencies.Capital Resources is the proud sponsor of the conference Welcome Reception following the Job and VendorFairs on June 21st.Dirk Beamer: Is it Legal to Fire a One-Eyed Jack? Gambling with Employment PracticesDirk Beamer has served as General Counsel for NAPAA for twelve years. One of his areas of expertise isemployment practices law, an area that is too often overlooked by small business owners. As Allstate agencyowners, a basic understanding of workplace practices is essential. In this session, Dirk will provide an overviewof this vital topic.Mr. Beamer is a principal with the Detroit area law firm of Wright Beamer. Areas of expertise include insuranceagencies, non-compete agreements, unfair competition, employment practices, and contract law.Dirk belongs to the Business Law Section, the Litigation Section, and the Labor and Employment Section ofthe State Bar of Michigan. He has received the highest available peer review rating (AV) from Martindale-Hubbell,the nation’s preeminent lawyer review and referral source. Mr. Beamer has litigated in state and federal courts across the country.In 2002, he received NAPAA’s President’s Award “for exemplary and unselfish dedication to the agents of Allstate.”Spring 2012 Exclusivefocus – 27

2012 National EA Business Conference & Job FairMarkus Bruderer: (I Can’t Get No) Satisfaction Guarantee - “Challenges and Opportunitiesin the Stock and Bond Markets”Markus Bruderer is Vice president at UNFCU Financial Advisors, a wholly-owned subsidiary of the UnitedNations Federal Credit Union. He has more than 20 years of private banking experience, overseeing investmentportfolios, both domestically and in Europe.Markus was a surprise hit at last year’s conference. Conference attendees were appreciative of his ability toclearly explain the complexities of the financial markets. This year will mark his third appearance at our conference.Not only are his presentations helpful to agents and life specialists selling AFS, but to those interested inmarket trends that can enhance their own portfolios.Prior to joining UNFCU, Mr. Bruderer was an assistant vice president, Relationship Manager, for the Europe Team of BankJulius Baer & Co. Ltd, N.Y. He served European-based clients in a similar capacity while at Deutsche Bank, N.Y. Mr. Brudererbegan his financial advisory career at Swiss Bank Corporation in Switzerland. He earned a degree in Business Administration fromSt. Gall Graduate School for Economics, Switzerland.Mr. Bruderer is fluent in English, German and French.W. Steven Everett: Total Asset and Lawsuit ProtectionMr. Everett is a senior legal advisor at Legally Mine, Inc. He has been involved in the financial services industryfor nearly two decades. He has been a presenter at several association conventions around the nation onvarious financial topics with a strong emphasis on proper estate and tax planning. Steven has served as Presidentof the National Association of Financial and Insurance Advisors and is a former Allstate agency owner.He holds a B.A. degree and a Masters degree in finance from Brigham Young University.The ScheduleWednesday, June 208:30 am – 5 pm BGI Marketing Workshop with Bill Gough (“Dual Event” attendees only)Learn Proven Marketing Secrets from one of the Country’s Top-Selling Allstate Agents8:30 am - 4 pm NAPAA Board of Directors meeting – attendees welcome5-7 pm Exhibitor set upThursday, June 217:15 – 8 am Registration and Breakfast8 am – noon Speakersnoon – 1 pm Lunch1 – 1:45 pm Speakers1:45 - 5 pm Vendor Fair and Job Fair5 – 8 pm Welcome Reception - Hosted by Capital Resources, LLCFriday, June 227:15 – 8 am Breakfast8 am – noon Speakersnoon – 1:15 pm Lunch - Hosted by BGI Marketing Systems1:15 – 4:30 pm SpeakersFor acompleteconference agenda,please visitwww.napaaUSA.orgState law prohibits anyone under the age of 21 from entering the hotel casino.28 – Exclusivefocus Spring 2012

2012 National EA Business Conference & Job Fair2012 National EA Conference – Registration FormJune 20-22, Harrah’s Hotel and Casino, New Orleans, LouisianaName: ________________________________________________________________________________________________First M.I. LastAddress: ______________________________________________________________________________________________City: ______________________________________________________ State: _________ Zip Code: __________________Daytime Phone: _______________________ Cell: ________________________ Fax: _____________________________E-mail: ________________________________________________________________________________________________Name preferred for conference ID Badge: ________________________________________________________________Additional Attendee Name(s): ___________________________________________________________________________Special Meal/Accommodations Request: _________________________________________________________________Conference AttendeesPrice Qty Extended PriceAgent, NAPAA Conference: $ 149.00 x ___________ = _____________________Spouse or Non-Agent guest $ 99.00 x ___________ = _ ____________________Dual Event Combo Package:This special package price includes the EA Conferenceand Bill Gough’s BGI Workshop. If purchased separately,the cost for both events would be $398. Save over $100!$ 297.00 x ___________ = _____________________Total $ = ________________Method of PaymentTo register online, go to www.napaausa.org and click on the “EVENTS” tab at the top of the page.❑ Check enclosed for the total amount due: $_____________ (Payable to NAPAA)❑ Credit Card: ❑ VISA ❑ MC ❑ AMEX ❑ DISCName on Account: _________________________________________________ Amount to charge: ________________Account Number: __________________________________________________ Expiration (mm/yy): _______________Billing Address: ________________________________________________________________________________________City_______________________________________________________ State _________ Zip Code__________________Authorization Signature: _____________________________________________________ Security Code____________Complete Registration Form and send to NAPAA:By Fax: 866-627-2232By Mail: P.O. Box 7666, Gulfport, MS 39506Questions? Call 877.627.2248Spring 2012 Exclusivefocus – 29

featureBootlickers and High FliersSubmitted anonymouslyIstarted a scratch agency in July 2004.It was a long, tough slog. The hourswere long and it was the hardest learningexperience I ever had in my 46-yearlife. To me, making the business a successwas imperative. I spent all of mylife’s savings to keep the agency running.If you’ve ever seen the movie The MoneyPit, you can appreciate what scratchagents go through to build their agencies– it seemed like pouring money down averitable rat hole. Perseverance was myonly friend in those early years becausethere were many times when I wonderedif I had made a mistake. Despite thosemoments of doubt, I soldiered on, determinedto succeed. This went on for almostfive years before I could see that myefforts were paying off and my agencywas flourishing. I was proud of the factthat I had grown my book to $5 millionin five years without any help from Allstatemanagement.One of my pet peeves with managementwas how they played favorites.They heavily favor the bootlickers andhigh-fliers of questionable integrity – aslong as they toe the company line. Thisis true even at the top of the corporatehierarchy, as Tom Wilson eschews “resistors”and embraces conformers. Agentshave long understood that there are noresistors or disgruntled agents on theNAB or the AEC; these boards are riddledwith conformers who seem contentto “go along to get along,” possibly inthe hope of garnering favors from seniormanagement.In essence, senior management onlywants to hear those who echo their ownsentiments; they have little interest inideas that are not of their own making.This cronyism, with its inherent failureto acknowledge alternative ideas, is thereason the company is faltering.I am a good insurance agent and hada very successful agency. The companyknows it and my fellow agents know it,especially after I earned the Agency ofthe Year award in my region. I treated mycustomers like family and went to theirhomes to visit. I even went as far as toput up handrails on the porches of myelderly clients when needed. I went farbeyond the call of duty for my customersand my company. There is no doubt thatI enhanced Allstate’s image in my market,but my efforts seemed unappreciatedby management. I soon began to feel thatthe company disrespected me and otherconscientious agents like me.During the course of my 8-year career,I became aware of some of questionablepractices perpetrated by certain agentswhose actions were condoned or encouragedby management, presumably becausethe agents’ results helped Allstatetoo, at least in the short term. When amanager looks the other way when awrong is committed, he becomes complicitin a scheme that defrauds the companysome way.These undeserving agents and managersshould be treated as villains, notheroes. Sadly, neither party stops to considerthe long-term damage they inflicton the company with their selfish andunscrupulous tactics.Yet it is these devious culprits whooften receive the accolades and awards.Left behind are the agents who don’ttake short-cuts and who take great pridein ethical practices, which can only leadone to conclude that the only thing thatmatters at Allstate are results, regardlessof how they are achieved. While managementmust realize this, the practicecontinues even as the company falls furtherinto the abyss of mediocrity.Don’t get me wrong, I was never jealousof these agents or managers, but Iwas deeply troubled by the fact that theywere getting off scot-free and still beingrewarded. When I heard about someof the things the agents were doing, Iwent to my manager and told him. Heresponded, “If I were you, I would keepmy mouth shut”. I knew right there andthen how deep-seated the problem wasand what kind of company I was dealingwith.Even the vendors who came to myoffice were aware of some of these shenanigans.They would wonder aloud whythe company chose to keep the offendingagents. Finally, I reached the pointwhere I did not want to be painted withthe same brush and decided to put mybook up for sale.When I mentioned to my managerthat I thought I wanted to sell, I thoughthe would try to coax me into staying.Instead his response was, “Let meknow what you decide because I have afew buyers who are looking.” I thought,“Wow, that’s crazy. They would ratherput someone with little or no experiencein this agency in the hope they can run itbetter than I can. Are they crazy?”The air of indifference, coupled withthe favoritism shown to those bootlickeragents and management’s tacit approvalof questionable sales practices, all convergedupon me and sealed my decisionto leave. If I hadn’t experienced thesethings firsthand, I wouldn’t have believedthey could happen at a Fortune 100 companylike Allstate.I am all set to become a State Farmagent. I’m sure I won’t agree with everythingthey do, but I cannot imagineit will be anything close to my Allstateexperience. As for my old customers, Ican’t wait until the day when I am able tointeract with them again. Ef30 — Exclusivefocus Spring 2012

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oardroom reformAllstate’s CEO Pay Increased 20%,Stock Price Fell 15% in 2011Union and Public Pension Funds PushFor Executive Pay ReformsAllstate Chairman and CEOThomas Wilson received a20.2% increase in total compensationbetween 2010 and 2011. Thisincrease came during a year in whichAllstate’s share price dropped 15% from$31.88 to $27.74. Most of Wilson’s2011 pay increase came from more thandoubling his cash incentive award to$2,252,800.Many Allstate shareholders have expressedconcern about Allstate’s executivecompensation practices. At last year’sshareholder meeting, only 58% of Allstateshareholders voted for the company’s“Say-on-Pay” vote. Say-on-pay votes providean opportunity for shareholders tovote no on management’s compensation.After last year’s say-on-pay vote, theAFL-CIO and a group of pension planssubmitted shareholder resolutions toreform Allstate’s executive compensationand corporate governance. Theseproposals were part of an effort at 10companies where a large percentage ofshareholders voted against managementsponsored say-on-pay votes.The shareholder proposals asked forfour reforms: 1) eliminate golden parachutetax gross-ups, 2) bolster executivestockholding requirements, 3) eliminateaccelerated vesting of equity, and4) establish an independent board chair.These proposals were withdrawn afterAllstate made changes addressing allfour proposal issues:In a March 1, 2011 article “ExecutivePay Votes Spur Shifts in Policies,” TheWall Street Journal interviewed Wilsonto discuss the changes it has made inresponse to pressure from shareholders.He met with owners of 30% of Allstateshares to find out “why people were concerned.”At last year’s shareholder meeting,Wilson had been reelected by just68% of votes, the lowest margin of anyS&P 500 company CEO.Shareholders will have another opportunityto vote on Wilson and Allstate’s otherdirectors at Allstate’s shareholder meetingon May 22, 2012 in Northbrook, Illinois. Ashareholder proposal by the City of PhiladelphiaPublic Employees Retirement Systemwill go to a vote that urges Allstate todisclose its corporate political contributions.Shareholders will also vote on Allstate’ssay-on-pay resolution, and on two charterShareholder ProposalThe AFL-CIO Reserve Fund submitted a proposalto eliminate tax gross-up payments on goldenparachutes.The Kansas City Firefighters’ Pension Systemsubmitted a proposal to bolster executive stockownership requirements.The Trowel Trades S&P 500 Index Fund submitteda proposal to limit accelerated vesting of equity forexecutives.The IBEW Pension Benefit Trust submitted a proposalto establish an independent board chairman.Changes Made By AllstateAllstate created a new severance plan thateliminates tax gross ups and reduces severancebenefits payable upon termination following achange-in-control.Allstate adopted new stock ownership guidelinesand requires that executives hold 75% of net aftertaxshares until an executive meets the guidelines.Allstate adopted a “double trigger” for vesting,which means that equity will not vest in the eventof a change-in-control unless an executive isactually terminated.Allstate’s board elected an independent leaddirector with enhanced responsibilities tocommunicate with shareholders regardingcorporate policies.32 — Exclusivefocus Spring 2012

amendments to allow shareholders to act bywritten consent and call special meetings.Editor’s note: NAPAA is affiliated withthe Office and Professional Employees InternationalUnion (OPEIU), which is affiliatedwith the AFL-CIO. Last fall, shortly afterNAPAA affiliated with OPEIU, the shareholderproposals listed above were submittedto Allstate by a coalition that included AFL-CIO affiliates. NAPAA is pleased to havebeen associated with these proactive efforts.So, how will you vote?The annual meeting of stockholders ofthe Allstate Insurance Corp will be heldTuesday, May 22, 2012, at 11:00 a.m.(CDT) at the Allstate offices in Northbrook,Illinois.Summary• Several members of the AllstateBoard have served more than ten years.We believe these board member actionsover the last five years show clear lack ofaccountability to shareholders. They havefailed to implement several shareholderproposals during their tenure that receivedmajority support from shareholders.• Allstate increased the CEO’s bonustarget to 200 percent of salary despitereducing the peer group target from the75% percentile to the 50% percentile. Webelieve there is a pay for performancedisconnect.• Allstate’s board elected an independentlead director with enhanced responsibilitiesto communicate with shareholdersregarding corporate policies. Webelieve Allstate should separate the roleof chairman and CEO, and establish anindependent board chairman.• Regarding reporting political contributions,we agree with the stockholdersupporting statement “Disclosure isconsistent with public policy, in the bestinterest of the company and its shareholders,and critical for compliance withfederal ethics laws.” EfThe views expressed by the National Associationof Professional Allstate Agents(NAPAA), or any of its positions relative toits activities and those of its members’ actionson behalf of this organization, are expresslythose of NAPAA, and do not reflectthe views or opinions of Allstate InsuranceCompany, or any of its affiliates.Agenda and RecommendationsAllstate BoardNAPAAManagement Proposals Recommendation Recommendation1 Elect Director F. Duane Ackerman (1999) For Against2 Elect Robert D. Beyer (2006) For Against3 Elect W. James Farrell (1999) For Against4 Elect Jack M. Greenberg (2002) For Against5 Elect Ronald T. LeMay (1999) For Against6 Elect Andrea Redmond (2010) For Against7 Elect H. John Riley, Jr. (1998) For Against8 Elect John W. Rowe (2012) For For9 Elect Joshua I. Smith (1997) For Against10 Elect Judith A. Sprieser (1999) For Against11 Elect Mary Alice Taylor (2000) For Against12 Elect Thomas J. Wilson (2006) For Against13 Approval of Executive Compensation For Against14 Act by Written Consent For For15 Call a special meeting 10% owners For For16 Ratification of auditors For ForShareholder Proposal17 Reporting political contributions Against ForSpring 2012 Exclusivefocus — 33

usiness trendsThe Perfect Storm: Why 2012 May Bethe Year to Buy or Sell an AgencyConditions could lead to record year of agencybuying and sellingBy Bill Nicholson1. More profit potentialOne of the reasons agents sell a businessis to realize a gain on their investment,but agents today are worried thatpending legislation may erode profits.The talk in Washington, D.C. is aboutnot extending the Bush-era tax rates,which taxes capital gains at 15 percent.If rates increase to 20 percent or more,waiting to sell may significantly eat awayat an owner’s potential nest egg. Althoughsome owners will decide to postponeselling to work on growing theirbusiness, many are already thinking ofselling within the next couple years andaccelerating plans to do so.Hurricane Irene, the early EastCoast snow storm and othercatastrophes bombarded theinsurance industry with record claimsand losses in 2011. It appears that 2012might be another record year, but thistime one that will benefit agency owners.A perfect storm is brewing to make thetime right for record insurance agencymergers and acquisitions.A variety of factors is influencing agrowing number of agency owners toplan for an agency acquisition or sale thisyear. Here are the key reasons that 2012may be an ideal time to grow through acquisitionor sell your agency.2. Decreasing business valuesLegislative changes that could have anegative impact on an agency’s value alsoare on the horizon and could take effectafter 2012. The Patient Protection andAffordable Care Act (PPACA) is justone. PPACA calls for financial penaltiesfor employers that don’t provide healthinsurance coverage and possibly couldpenalize those that do provide coverageunder certain conditions. The costof providing health insurance and thethreat of potential penalties can make abusiness less appealing to buyers. Agencyowners who are considering selling maybe more motivated to sell their agenciesbefore this legislation takes effect.Changes in the insurance industry alsocan also be a significant factor. As majorcarriers modify commission rates, anagency’s value will be impacted. Manyowners are anticipating changes andconsidering how those changes will affecttheir agency business.3. Improving economyWhile economic conditions are stilltroubling, agency owners seem to bemore optimistic about the economythis year. In January, the U.S. Bureauof Labor Statistics reported the lowestnumber of unemployment claims infour years.What’s more, inflation rates have34 — Exclusivefocus Spring 2012

een trending towards steady and manyeconomists anticipate growth in theU.S. gross domestic product in 2012. Tomany agency owners these factors pointto a growing pool of potential buyers andsellers this year.4. Aging population of ownersMost insurance agents are 55 years orolder. As the demographic ages, agencyowners think more seriously about succession.Many are planning for retirementnow and others are in the processof executing their exit strategy. Someagents have done their due diligence toposition their agency for sale and aresimply waiting for the right market conditionsto find the right buyer and makea profit. These agents may well find thatthe time to sell their agency is now.5. Ins. brokers need distributionBrokers are ready to buy and agentswant to sell while there’s good demand.The Aite Group reported that nearly200 insurance agency merger and acquisitiontransactions were completedbefore the end of 2011 and insurancebrokers acquired the majority of thoseagencies (Mergers and Acquisitions inthe P&C Insurance Ecosystem: Preparingfor the Turn; November 30, 2011).Until the P&C market hardens, companiesin a position to buy will likely continueto take advantage of opportunitiesto grow by purchasing small to mediumsize agencies that are priced to sell due todeclining values and other factors. Sinceorganizations like Willis Group Holdingspredict only slight changes in theP&C market, the mergers and acquisitionstrend may continue.All of these factors are contributingto an increase in commercial loans. Regardlessof the goals of agency owners— to buy, build or sell an agency — theyneed capital and capital typically comesfrom a bank or commercial lender. Becauseof the decrease in small businessloans by traditional banks in recentyears, there has been a common misperceptionthat funding was extremely unlikely.Agency owners now are realizingthere are other, viable funding options.They are turning to lenders that can andwill collateralize with an intangible assetlike an agency commission stream.As a result, more agencies in the mar-ketplace will likely cause agents to reconsiderand attempt securing a loan.With more funding opportunities andlooser credit standards, the market ofpotential buyers is likely to expand.The year ahead may be business-asusualfor much of the insurance industry,but we believe 2012 will be full of agencyM&A activity. EfBill Nicholson is responsible for the strategicdevelopment and expansion of sales for OakStreet Funding. For more than 10 years, hehas successfully led sales organizations inhighly competitive environments and developedgrowth strategies for financial servicecompanies. Bill can be reached at bill.nicholson@oakstreetfunding.com.The material in this article is for informationalpurposes only. They are not offeredas and do not constitute an offer for a loan,professional or legal advice or legal opinionand should not be used as a substitute for obtainingprofessional or legal advice. The useof this article, including sending an email,voice mail or any other communication toOak Street, does not create a relationship ofany kind between you and Oak Street.The Harford Flood InsurancePARTNER WITHTHE HARTFORD,A Leader in Flood Insurance.The Hartford is one of the largest providers of floodinsurance, offering a full-service solution, competitivecommissions and a dedicated local Sales Director.Email us at flood@thehartford.comor call 866-553-5663.With The Hartford behind you, achieve what’s ahead of you. ®Policies are written subject to the National Flood Insurance Program.Insurance is provided by the property and casualty insurance companies of The Hartford Financial Services Group, Inc., Hartford, CT. © 2012 The Hartford Financial Services Group, Inc., Hartford, CT 06155. All Rights Reserved.Spring 2012 Exclusivefocus — 35CLIENT / The Hartford (HFG CO)AD# / P00333-X1/ Cheryl SparksTRAFFIC / Stephanie BrownePROD MGRPUB /Prepared by

, eBook offers tips for agency owners at any stage *DEVELOP A STRATEGY TOBUILD YOUR BUSINESSIt’s vital to keep building your business to ensure profitability and higher equity value.Whether you envision growing with an additional producer, upgraded technology, newmarketing strategy or other methods, now is the time to plan. Find out what you cando to build your agency and compete.GET THE DESIRED BUYERAND PRICE WHEN SELLINGIf you’ve decided that it’s time to step away from your agency, the right planning canhelp you leave with the financial rewards you desire and the satisfaction of seeing thebusiness and legacy you’ve work hard to build continue. See what’s involved in gettingthe right price from the right buyer and what tax laws you should consider in the sale.oakstreetfunding.com/eBookFIND THE RIGHT AGENCYAND FUNDS TO BUY ITA fast way to grow your insurance business is to acquire another agency. It can resultin marketing efficiencies, greater leverage from technology investments and highercontingency fee for reaching premium targets. Learn what every prospective buyerneeds to know.* The materials in this paper are for informational purposes only. They are not offered as and do not constitutean offer for a loan, professional or legal advice or legal opinion and should not be used as a substitute forobtaining professional or legal advice. The use of this eBook, including sending an email, voice mail or any othercommunication to Oak Street, does not create a relationship of any kind between you and Oak Street.

TAKING YOUWHERE BANKSWON’T.• ACQUIRE AN AGENCY• INVEST IN GROWTH• SELL YOUR BUSINESSWith financing from Oak Street Funding, youcan buy an agency, take your agency to thenext level, or open up the sale of your agencyto a broader landscape of prospectivebuyers.Whether you need $10,000 or $10,000,000,Oak Street Funding can help you or potentialagency buyers finance business investmentswith minimal out-of-pocket cost byleveraging agency commission streams.When banks won’t help, Oak Street Fundingwill. Call us now or download our free eBookon buying, building or selling an agency:oakstreetfunding.com/eBook.1-866-OAK FUND | oakstreetfunding.com/eBookLoans and lines of credit subject to approval. California residents: Loans made pursuant toa Department of Corporations California Finance Lenders License. Potential borrowers areresponsible for their own due diligence on acquisitions.

featureMasking the Truthwith Tokens and TrinketsBy Jim and Nancy FishAs the revenue roller coaster ridecontinues, it seems that only theagency force understands thegravity of the company’s flawed AgencyEconomics plan. Make no mistake;agents not only understand it, many aredoing something about it.The company lobbed the first bomblast May at the Orlando Leaders Forumwhen a new compensation scheme –called the Agency Economics Plan – wasannounced by Tom Wilson and MarkLaNeve. Under the plan, base commissionswould be cut 20% to 8% on bothnew and renewal business, but if agentsjumped through enough hoops, theycould supplement the lower base ratewith a nebulous new variable componentthat could add up to 3% more. Ultimately,the variable component conceptproved more illusionary than real becauseof its vagueness, leading agents to questionwhether the company was beingdeliberately evasive or had been caughtflat footed. But based on their experienceswith the complicated and arbitraryRFG formula, agents saw right throughthe new plan. They understood that likeRFG, the variable component would beever-changing by design, leaving agentsto wonder what their incomes would befrom year to year.Shortly after the announcement, regionalmanagement confirmed the planand agent focus groups were organizedto discuss it. Tom Wilson even touted theproposal to investors on an earnings call,claiming that the majority of the agencyforce was supportive of the plan, when, infact, the opposite was true.The agency force was livid and the furorwould not subside as agents continuedto vent their wrath. Just as Nero fiddledwhile Rome burned, the company seemedquite content to ignore the din, hoping itwould blow over. The tide began to turnwhen NAPAA announced it would pollits membership, asking if they supportedan affiliation with the Office and ProfessionalEmployees International Union.The resulting 94.4% vote to affiliate wasoverwhelming and a clear indication thatsomething was amiss. The media pickedup on the story and the NAPAA votebecame the talk of the industry and theAllstate agent blogosphere.Startled and unprepared for the publicityand the agent backlash that followed,the company tweaked its plan byincreasing the variable component to 4percent and delayed the 20% cut in basecommissions to 2013, thinking it wouldappease the agents. A vague outline ofthe variable component was distributed,but agents were still unclear on how theycould boost their revenue above 8%.They knew the devil was in the details,but because Allstate’s plan was incomplete,suspicions mounted. The lack ofdetail made it seem as if managementwas confused and unable to agree on acohesive strategy or was unsure how todeal with the bellowing cacophony thatnow engulfed them. Either way, managementwas clearly shaken and showedsigns of weakness.The ire of the agency force did not letup, but it manifested itself differently in38 — Exclusivefocus Spring 2012

the final quarter of 2011. Many agents –fed up with being jerked around on thecompensation matter and other nonsensicalissues, such as woople – quietly resolvedto end their Allstate careers.For years, the company has dismissedthe complaints of rank and file agents,only to favor the opinions of a small factionof agents who routinely side withthe company – perhaps as a way for themto curry favor with management. For thecompany to rely on this tiny microcosm,which mostly represents the views of thetop 1% of the agency force, is stupid andreckless. The company found this outin the final quarter of 2011 when – accordingto NAPAA estimates – an eyepopping1,000 agents left the company.In an SEC filing disclosed on February22, the company confirmed that theagency force declined by 1,500 hundredagents in 2011. But NAPAA does notbelieve this accurately portrays what reallyhappened; it is convinced that theyearlong loss of existing agents was fargreater because it believes the companyonly reported the net loss of agents – notthe gross loss. Let’s assume that Allstatehired 1,000 new agents in 2011, butlost 2,500 existing agents; the companycould then report a net loss of only 1,500agents, which is a substantial number,but far fewer than 2,500.One can only imagine the pandemoniumthat ensued in Northbrook assenior management grappled with themassive exodus created by tamperingwith agent compensation. Finally, in thewaning days of December, the companyretreated again. On December 21, 2011,Mark LaNeve sent the agents a communiquéwhich stated, “For 2013 and 2014,base compensation will be moving to 9/9,not 8/8 as previously discussed. This changeeases the transition to the variable componentand better allows you to plan for yourbusiness over the next several years and developyour long-term strategy.”Obviously, LaNeve’s message wasdesigned to lull the agency force intocomplacency. Many agents mistakenlythought the announcement meant commissionswould be reduced to 9/9 andstay that way. In truth, LaNeve onlypromised 9/9 for two years, leaving thedoor wide open for further cuts in 2015.AgentCount14,00013,00012,00011,00010,00012,90013,2009,0002006 2007 2008 2009 2010 2011Thus, the company’s long-term objectiveof 8/8 has not changed. Instead, it hasbeen put on the back burner for two yearsuntil 8/8 comes roaring back in 2015.This two-year delay in implementationwill do two things for the company. First,it hopes the promise of 9/9 will stem themassive outflow of agents. Second, it allowsample time for the company to beefup the agency force. As faithful readersof DirectExpress and Agent Informer willattest, the company is on a hiring rampageunlike any before.What is clear is that the companyis trying hard to change the subject. Itwants to replace the commission conversationwith other less controversial topics.This diversionary strategy includesan attempt to regain the trust of theagency force by turning on the charm.This new psychological strategy beganwhen Tom Wilson admitted during anearnings call last fall that agents were notto blame for the company’s woes. Thenin February, after Mark LaNeve abruptlyAllstate Exclusive Agents12,80012,30011,50010,000YearSource: Allstate Form 10K 2006-2011left the company, Matt Winter sent anuncharacteristically warm message to theagency force, followed up by an equallyagent-friendly video in March, each ofwhich was intended to inspire hope andtrust among the agents. Simultaneously,the company announced plans to host itsfirst National Forum where the companyhas promised that the “Conference Team& Leaders will treat you GREAT!”So, what’s up? Since 1999, when EdLiddy became CEO, the bond betweenthe agency force and management hasbecome increasingly hostile. The pivotpoint was the implementation of thePreparing for the Future initiative in2000, wherein the company fired its employeeagents and then offered to rehirethem as independent contractors on thecondition they sign a waiver promisingnever to sue the company. Of course, theagents were also stripped of all employeebenefits and legal protections, leavingthem at the mercy of management.Allstate took full advantage of its new-Spring 2012 Exclusivefocus — 39

StStandard Auto Auto PIFPIF18,500,00018,400,00018,300,00018,200,00018,100,00018,000,00017,900,00017,800,00017,700,00017,600,00017,500,00017,400,00017,300,00017,200,00017,100,00001/01/2007Q12007Q22007Q32007YE2007Q12008Q22008found power by establishing quotas, officehours and tightly controlled agencystandards, among other things.By 2007, there was a new sheriff inNorthbrook, and he brought a wreckingball with him. Since Tom Wilson tookover, NAPAA believes as many as 5,000agents have left the company; some becauseof the commission cuts, but mostbecause they were terminated or threatenedwith termination. The company hasbeen unable to replace the agents whohave left, in spite of its massive hiringcampaigns. As of this writing, NAPAAestimates there are fewer than 10,000EAs and full time employee agents remaining,a far cry from more than 13,000when Wilson took over.There is no doubt the agency force islonging for some TLC from the company.But after 12 years of mistreatmentand abuse, the company’s efforts to winback the hearts and minds of the agencyforce seems more like an act of desperationthan sincerity.There are good reasons why agentsshould be skeptical of the company’s recentagent PR campaign. First, the manwho created all the mayhem and painover the past five years is still CEO. He’sstill the same guy he was last year and theExhibit 1 Allstate Standard Auto Results PIFQ32008YearYE2008Q12009Q22009Q32009YE2009Q!2010Q22010Q32010YE2010Q12011Q22011Q32011Q42011Source: Allstate Quarterly Investor Supplement 2007-2011year before – the only difference is thathe’s scared now and desperate to save hisown skin. Once he hires enough agents– and he will – you can bet we will seea re-emergence of the Tom Wilson thatagents have come to loath.As we know, Matt Winter is the newface of Tom Wilson’s campaign to wooagents back into the fold. He’s the bestman for the job and comes across assincere and caring. NAPAA would liketo believe he’s genuine, and perhaps wewould – if the company wasn’t pickingthe agents’ pockets at the same time.With the company reverting to the8/8 plan in 2015, as we fully expect,an agent with a $2 million agency willlose $40,000 in base revenues every yearfor the rest of his career, or $1,000,000over a span of 25 years – and that’s ifthe book remains stagnant. When factoringin a reasonable growth rate, theresults are sobering. Then just imaginewhat the company’s savings would bewhen multiplied by the 10,000 agents itclaims to have…So now that the stage is set, agentscan expect the company to make someagent-friendly announcements. First,we believe it will address the decade-oldtechnology problem. It is no secret thatAllstate has fallen far behind its competition,mostly because of its penchant tocreate its own proprietary solutions. Becauseof this, the company has likely longpooh-poohed other proven technologiesby dismissing them as too expensive.Some of us will recall a Leaders Forumsome ten years ago or so, when RickCohen, touting the ongoing developmentof the IMPACT system, proudlyannounced, “We’ve reduced the time betweenscreen changes to 9 seconds!” Since9 seconds is a lifetime when face-to-facewith a client, you can imagine what theagents thought, as they rolled their eyesin incredulous disbelief. That same “create,fix and patch” mentality has long beenpervasive at Allstate, but there are signsthe company is changing and some solutionsare possibly on the way. If the newtechnologies work as planned, they willbe a welcome change for Allstate agents,who are used to daily system failures.The Esurance/Answer Financial acquisitionscreated instant intense animosityamong Allstate agents, who stillremain suspicious of the company’s intentions.In addition, agents don’t understandwhy they aren’t being givenbrokering opportunities, now that thepossibility exists. NAPAA believes thecompany will eventually allow agents tobroker or receive a fee for their referrals.Indeed, absent any form of compensation,agents would have little, if any, motivationto make the referral. So, it makesgood business sense to capitalize on thesynergies that exist. From the company’sstandpoint, doing so would help thecompany meet its growth goals as well assoften the effects of the looming commissioncuts.By offering the agents a few tokensand trinkets, the company hopes to removethe bitter thorn of hostility thatis deeply embedded in the side of theagency force. The National Forum willbe a crucial test of agent support forTom Wilson’s policies and a poor turnoutwould be embarrassing. If the agencyforce fails to respond in large numbers,we expect that FSLs and other managerswill attempt to intimidate agents intoattending. Management’s goal is to packthe house so that Tom Wilson can boastto shareholders about how relations with40 — Exclusivefocus Spring 2012

the agents have improved. All you haveto do is look at the timing of the twoevents: National Forum, May 9-11; AllstateShareholders Meeting, May 22.Remember, it is not about tokensand trinkets. It is not about satisfyingmanagement’s hidden goals. “Reinstate10/10” should be your battle cry. Othercaptive carriers are watching very closely.If Allstate succeeds in lowering yourcompensation, they will attempt to followsuit.The aftershocks resulting from the 8/8plan will continue to haunt Allstate foryears to come. Departing agents who takeTPP are determined to take back theircustomers upon the expiration of theirnon-compete agreements. While thecompany wants to change the conversationfrom commissions to other issues,it is losing the battle, as more and moreagents finalize their departures. Hosting aconference will do little to change agentsentiment, especially if it is not wellattended.And if the agency force takesa strong stand on the commission issue,Allstate’s 8/8 plan could be one of the biggestcorporate blunders of all time.The agency force is the lifeblood of thecompany. A cut in commissions is notmerely a cut in one person’s income. Itdiminishes the revenue needed to effectivelyoperate Allstate agencies. A 20%drop in agency revenue is substantial. Formost agents, it means less take-home payand cutting agency expenses to the bone.Some items like rent and utilities arefixed expenses, so reductions must comefrom non-fixed expenses like staffing andadvertising – and cutting those won’t sitwell with management.The lack of stability, the constantrevamping of the plan and months ofuncertainty have already caused mostagents to cut back, the effects of whichcan be seen in the reduction of new businessapplications which, for the last twoquarters of 2011, were a staggering 13%and 14% less than prior year.Another consequence of the commissionfiasco is the reduction in TPP value.For 22 years the 10% commission ratehas been the basis of agency purchasesand TPP payments. Changing to 8% willdevastate agency values and TPP payouts.Is it any wonder why agents are leavingnow in record numbers? Obviously, theysee the handwriting on the wall and wantto get out while the gettin’s good. Failingto restore the 10/10 commission ratewill adversely affect anyone who sells orretires in 2013 or later.Whether this was a planned outcomeis debatable, but many agents believe thatintentionally lowering book prices waspart of the company’s overall plan. Therehave been instances, for example, wheremanagers have deliberately manipulatedbook sales by advising buyers to offer lessbecause of the pending commission cut.Plus, it is common knowledge that managersdon’t want buyers paying too muchfor agencies because it limits the amountnew agents can spend on marketing. So,if what is occurring is the result the companyintended, it has been successful –maybe too successful – as agents flock toredeem their TPPs.In other words, when Allstate decidedto slash agency revenues by 20%, they cuttheir nose off to spite their face.Of course, the company claims thatagents can make up the loss of revenueby capitalizing on the variable component.But once again, agents will recallhow many times RFG changed and howmany hoops they had to jump through,many times to no avail. The reality is thatagents are business owners who mustplan their expenditures based on predictable,fixed revenues – not on hopes andprayers. How silly would it be for agentsto increase staffing in a good year, onlyto lay people off the next, simply becausethey failed to qualify for the variablecomponent?Senior management is already smartingfrom the compound effects of theirdisastrous decision – and it will only getworse. While they may not have envisionedsuch catastrophic consequenceswhen the plan was initially announced, itis clear they do now.Agents are still running for the exits atan unprecedented rate, and new businesswritings continue to fall. This debacleis a defining moment for Tom Wilson’sagenda, and one he is unlikely to survive.More importantly, this is a turning pointfor agents, because for once, they havethe upper hand. It is time for them toseize the day by demanding the companyrestore 10/10.The damage done may be irreparable.Not only will agents continue to leave,those remaining will continue to cutback on staff and expenditures until thecompany reverses itself and announcesthat the Agency Economics Plan hasbeen scrapped.Agents must continue to insist thatcommissions be restored to 10/10. Yes, thecompany would have to eat a little crow,but this issue is too important to worryabout fractured egos or winners and losers,it is all about what is best for the survival ofa Great American Company. EfJump-start 2012with my Sure-fire Methodto increase your AFS SalesJoin NAPAA or refer a nonmember to me who youbelieve would be interested in joining, and I’ll sharea proven technique that may help you write lots moreAFS in 2012.For details please call:Gerry FloresNAPAA Member Benefit Representative563-564-1800Spring 2012 Exclusivefocus — 41

NAPAA leadership seriesBob Isacsen:Faithful to his principlesBy Jim Fish with Cathy Isacsen and Ed ErbacherWhen setting out to write thisarticle, the goal was to writean overview of the professionallife and times of Bob Isacsen.With the Exclusivefocus deadline loomingand the realization that the kind ofarticle I wanted to write would be spaceprohibitive, I thought it best to limit myfocus to the many qualities that add upto the man Bob is. I asked Bob’s wife,Cathy, and his longtime friend Ed Erbacher,a now-retired Allstate agent andformer NAPAA director, to contributetheir thoughts to see if I was missinganything. But what they revealed in theirletters confirmed what I already knew inmy heart – as a person, Bob Isacsen is anopen book with no hidden agenda.In her comments, Cathy Isacsenwrote, “Like any proud spouse I could goon for days about what makes Bob so extraordinary.However, I quickly realizedthat words can be very limiting when attemptingto portray the Bob that I haveknown for over 30 years. One of thethings I feel is so important is his strongcommitment to fairness, which meansmaking changes for the greater good ofall agents, not just a select few. To him,leadership starts at the top, but is onlyas good as its ability to benefit the manyand should never be used for any otherreason, which is where he feels Allstatehas gone wrong.”Ed Erbacher remembers the earlydays when he and Bob were crisscrossingthe country holding meetings to growNAPAA membership. Together, the pairtraveled extensively, holding NAPAAmeetings in places like Cleveland, Chicago,St. Louis, San Francisco, Portlandand Seattle. They became good friendsand their friendship continues to this day.Bob started a scratch agency in LowerManhattan in 1985. One of the storiesEd related to me was that Bob – likemany new agents – believed what Allstatemanagement told him about how greatthe Allstate opportunity was. RecallingBob’s first year in the business, Ed said,“Immediately, his ads started running inexpensive NYC media outlets. He’s crazy,I thought – and I was right. Later on,while having a drink with local management,Bob said, ‘I believed you guys andI ran a lot of ads; BAD IDEA. Now Iwant my money back!’ ” Of course, Bobwas never reimbursed, but the experiencelikely gave him an important insight intothe mindset of Allstate management.By the time I joined NAPAA in 1993,Bob was already a highly-respectedNAPAA leader, and while our paths oftencrossed as I became more involvedwith the association, it wasn’t until hewas contemplating his successful run forNAPAA president that I began to reallyget to know him. That was more thanfour years ago and we have worked togetherclosely ever since.Over those years, I have seen manysides of Bob. He is complex, yet simple.He typically wears his heart on his sleeve,so you always know where he stands. Heis affable and outgoing, yet soft-spoken.He is also a polite listener – sometimesto a fault. I think he really wants to hearthe opinions of others, even if it meanslistening to long-winded talkers. As hiswife Cathy points out, “Bob is very approachableand really means it when heends his Exclusivefocus President’s Letterby stating that he is ‘Always a cell phonecall away’. He really wants to make a differencein the lives of Allstate agents. Heis always open to new ideas and feels thebest way to hear about them is to speakto people. He is never satisfied with thestatus quo and is always in constant motion,which might explain why he takescalls on his cell phone wherever he is,even if he’s in the shower.”Bob also has an instinctive knack forfinding technical solutions to problems.Back in 1990, when an agent wanted tomove to a new office location, an Allstatevendor would show up to movethe AS400 computer system and chargethe agent $7,500. Thinking the cost wasoutrageous, Bob set out to find out howmuch agents could save by moving itthemselves. What he uncovered was soastounding that he wrote an instructionmanual, published by NAPAA, whichwas sent to the agency force. The manualdetailed which parts and cables wereneeded and how agents could move thesystem themselves – all for around $600!This revelation surely must have caused astir in Home Office because a short timelater, the company began offering threechoices to move the computers, one ofwhich was the do-it-yourself option. Ifthis option had never been discovered,Allstate’s vendor might have kept gougingagents for years and years. If 5,000agents during those years had decided tomove their offices, they would have overpaidthe vendor $6,900 each, or a combinedtotal of $34.5 million.Bob is highly motivated and energized.A year after selling his $4 millionAllstate agency in 2007, he was votedin as NAPAA president. He also decidedit was time to go back to work andwas hired as the Managing Director of42 — Exclusivefocus Spring 2012

develop a contract for Bob. By then, itwas June 1, 2007 – the beginning of hurricaneseason! Understanding that few,if any, carriers would be receptive to theidea of writing property insurance whenrisks were highest, Bob requested thatthe company postpone his HRM marketingefforts until November 1st, whencarriers would be more approachable.But even though the delay was causedby its own foot-dragging, Allstate choseto misdirect its anger toward Bob, andlike a spoiled child, stopped communicatingwith him. Needless to say, since2007, the company has lost over 2 millionpolicies in force – who knows howmany of them might have been retained,had management acted in a more maturemanner.Bob is a very selfless individual whogoes out of his way to help others. This isperhaps the greatest leadership quality ofall for an association like NAPAA. Manyagents don’t realize that Bob and theother members of the board of directorsare unpaid volunteers. He is not drivenby fortune or fame, but by his undyingloyalties to the institutions, individualsand beliefs he cherishes. His loyalty toNAPAA is unquestionable. Unlike manydirectors over the years, Bob never lostinterest in NAPAA, despite the setbacksit has endured. And even after his 23-year affiliation with the association, heremains as enthusiastic as ever and is notcontent to see NAPAA standing still. Instead,his mind is always at work, thinkingof new and better ways to move theorganization forward.Like the rest of us at NAPAA, the actionsof the company in recent years havetroubled him greatly. The company’spurging of the agency force, which hasresulted in thousands of agent terminations,has been especially disturbing.Even New Gens (new generation agents)complain that the company is infringingupon their independent contractor statusand those of them who took over anotheragent’s book are learning that the agentthey replaced was admired and adoredby his customers, which is a far cry fromwhat they were told by management. Ofcourse, more seasoned Allstate agents,who live with mandatory quotas andemployee-like treatment, have knownthis all along. But if the existing situationwasn’t reason enough for agents torise up in anger, the imminent commissioncut certainly was. Under Bob Isacsen’sleadership and the strong support ofOPEIU, NAPAA plans to wage a long,dogged campaign to restore 10/10.I could go on because Bob has otherleadership attributes. Among otherthings, he is inspiring, compassionate,bighearted, fair-minded, dedicated andimaginative. Effective leaders are oftenmeasured by their commitment to thecauses they champion and by the leadershipqualities they possess. There canbe no doubt about Bob’s commitmentto NAPAA/OPEIU Guild 17 or hisleadership qualities. The bottom line isthat Bob Isacsen is the embodiment ofgood leadership – the agents of Allstateare fortunate to have such a man leadingtheir agent association. EfReporting “Questionable Business Practices” to AllstateNAPAA receives many inquires from agents who call to complain about unethical conduct by other agents. Itseems unethical behavior is becoming more commonplace, which is why it is up to the agency force to policeitself. And reporting bad behavior is easy and will help protect our rates. Following are selected excerpts fromthe www.AlertLine.com website, operated by Global Compliance, a third-party provider contracted by Allstate.“The Allstate i-Report process is designed to allow employees and non-employees to report potential compliance,unethical business practices and/or raise business issues.”“The Allstate i-Report Process is based on these principles:• Fairness: Every concern will receive individual consideration and be evaluated consistent with the commitmentof Allstate to the employees.• Promptness: Concerns will be promptly directed to areas within the company that have the authority andresponsibility to review, investigate and resolve the issues.• Safety: Concerns can be voiced without fear of retaliation.• Confidentiality: Concerns will be kept confidential. Information will be disclosed only to those who needto know in order to review, investigate and respond to your concern.”“Global Compliance Services (“GCS”), pursuant to an agreement between its clients, provides a website tocollect from employees and others wishing to report information. This information includes but is not limited toallegations of misconduct, questionable business practices, violations of a company’s code of conduct or otherevents and behavior which may result in harm, injury or liability. The information collected and submitted is forwarded,without review or modification by GCS, to the client’s designated contacts.”To file a report, agents should go to www.AlertLine.com or call 800.427.9389.44 — Exclusivefocus Spring 2012

featureA Sense of EntitlementBy Dave ThorpeIt is the beginning of February and I’mcontemplating attending the kickoffmeeting in a couple of weeks forthe Southwest Region. I remember lastyear’s meeting. Personnel from the regionalsales department were pretendingto commiserate with the agents aswe hung around waiting for the doorsto open into the convention area. Ofcourse, with the letters they had sentthreatening me with termination, theyavoided me like the plague. As I waslooking around the room, the doorsopened and the agency sales managersfiled in first. They remindedme of a troupe of bonobosfiling into their communitycage at the zoo. I mean nodisrespect to the apes. Just beforethe doors opened, I notedone gal as she wandered about,working the room. She and mostof the regional office staff emanateda sense of entitlement, as if they weresomehow better than we were. In spite ofthis feeling, I walked over and said hello.I asked her if she and the staff gotalong well with each other, which I’ll admitwas a loaded question. Rather flippantlyshe replied, “Oh yes, we’re onebig happy family,” as if their jobs wereforever secure and without peril. Thispresumption has long since morphedinto an elitist attitude among many inthe regional offices. Those infected withthis sense of privilege and entitlementfrown on associating too closely withagents, whom they view as beneath theirstatus and who make too much money.They complain about the gross incomesof the agents, but never stop to considerhow much is spent on agency expenses.Perhaps for them, ignorance is bliss.Little do they know that many agentsare just barely eking out a living and areconstantly on edge in fear of terminationletters, ALI scores, retention figures andfor missing quotas.Since I am a contributor to this magazine,I hear from readers from time totime. I enjoy hearing from you, but thelast email I received from a longtime andsuccessful agent annoyed me just me abit. It’s a subject we’ve discussed in thepast and bears closer examination. Heforwarded a news article about the Allstatedealership program, which amongother nausea-inducing statements, said,“Agency offices will be placed inside thedealership, typically on the showroomfloor and operate during regular hours ofthe dealership,” and “Traditional aftermarketproducts such as extended servicecontracts and GAP still would be sold inthe F&I office.”I happen to be the son of a car dealerand my brother Dick operates a highendexotic dealership in HuntingtonBeach, California. I can safely say, almostwithout exception, that auto dealers are alot like gypsies. They aretrained to gouge, lie andlegally steal. Selling anextended service contracton a new vehicle is deviousat best and outright fraudulentat worst. Why would anyone of soundmind pay between $600 and $1,500 plusinterest on a car that already has a manufacturer’swarranty? And GAP coverage?This product is sold to protectthose buyers who probably shouldn’tbe new car shopping to begin with.Without a doubt, as soon as theydrive away in their new car, theyowe more than it’s worth, which isthe spread that GAP insurance covers.Of course, if the buyer hadn’t takenout the aforementioned service contract,rust protection, credit life, disability andother stuff you’ve probably never heardof, the buyer might not owe twice whatthe vehicle is worth. Now with that said,my brother Dick doesn’t sell much GAPinsurance or the other stuff because mostof his customers have six figure incomesand generally are smarter and bettereducated than the typical car buyer whowalks onto a Ford or GM lot.Of course, you might ask why wouldanyone unable to afford life insurance or529 plans for his kids be willing to stepinto a dealership and pay 7% sales tax andsuffer the first-year 20% depreciation ofa new car. If you know the answer, letme know, because I’ve never been able tofigure that one out.I hope I’ve convinced you that locatingan Allstate office in the same showroomas an F&I (finance and insurance)office is counterproductive. Let’s say the46 — Exclusivefocus Spring 2012

new buyer is directed to the Allstate officenext door in the same showroom.The agent is fully licensed and has hissecurities licenses displayed on the wall.From an ethical standpoint, doesn’t hehave a moral obligation to see his clientbuys reputable financial products?If so, let’s imagine what a conversationbetween the client and the Allstateagent might sound like:“Congratulations on your new car. Mindif I take a look at your contract?” The clientobliges and hands over his paperwork.“I see you’ve purchased an extendedwarranty for $1,200, credit life and disabilityfor $800, rust protection, GAPand some other stuff for another $1,500.Do you have any life insurance or a planto pay for your kids’ college education?”Bewildered by the question, the customerreplies, “Say what?”“Look my friend. You just got rippedoff. Let me take you down to the creditunion, cancel all these nefarious products,refinance at a better interest rateand you’ll save $250 per month. Thenwe can talk about setting you up with adecent life policy funded by securities,which will also be helpful when you retire.And you might consider starting upa college plan for your kids to boot.”Uh-huh. The dealership agentwouldn’t dare act in his client’s best interests.He’d be thrown off the showroomfloor. For years, my fellow agentsand I have made a very good living takingclients to credit unions after they’d walkinto our offices with their paperwork. Ibecame Arizona’s first Charter Memberof the Allstate Hall of Fame and our officewas featured in the Arizona Republicfor our work with minorities, the largestgroup of the disenfranchised and theeasiest to rip off. Working with the AttorneyGeneral by virtue of reporting themost flagrant of these car dealer crooks,we helped close down three dealershipsand watched two dealers taken away inhandcuffs. Allstate got out of the dealerreferral business quick in Arizona. ARVP was indirectly fired and a numberof agents lost their jobs. But by defyingthe old proverb, “if you sleep with dogs,you’re gonna get fleas,” Mssrs. Tom Wilsonand Mark LaNeve not only refutethe old adage, but ignore proven experienceas well. However, they do have adefense; they’re away from the action andgenerally buy BMWs, exotics and luxurycars for themselves. Field Sales Leadersare closer to our mom and pop clients,but they are mostly unwilling to buck thesystem for a number of reasons, not theleast of which is financial. Also weighingheavily on their minds is their impendingobsolescence.Remember the old movie Death of aSalesman? I think that’s part of it. ALI,Expected Results, renewal ratios andprofit statements tell the tale. A TSMexamines the figures and fires off warningletters. The system identifies wrongdoersquicker than any human can. Wejust don’t need Field Sales Leaders anymore.Allstate RVPs know this, but thedilemma is how to get rid of them withoutbeing sued? The sharpest Field SalesLeaders were promoted long ago. Othershave left management and becomeagents themselves and, surprisingly, verygood ones at that.Field Sales Leaders could providea vital role if the company would letthem. They could act as liaisons betweenagents and higher management, which issorely needed. Imagine the progress wecould make by being honest with eachother. But as it stands today and intothe foreseeable future, career Field SalesLeaders that haven’t been promoted fordecades aren’t going to suddenly see anysuch opportunities soon. The currentcorporate culture at Allstate simply cannotconceive of implementing a conceptso foreign to them. So, Allstate agents areleft with the dregs of lower management.They have no legal authority and by virtueof their decades-long tenure in menialjobs, they stand convicted of mentaltorpor and ineptitude. Like many in theregional offices, a sense of entitlementhas kicked in. I wonder how much thebottom line would improve if we streamlinedand downsized sales management.Maybe then at long last, Allstate wouldbecome competitive again.In my next article, I’d like to examinewhat became of some quality agents whowere terminated years ago for crossingthe wrong RVP or TSM. Are they betteroff having had opportunities with othercompanies? Equally as germane, wouldsome of us old-timers be better off todayif we had been terminated and moved onto other opportunities?Exclusivefocus readers have been verygood at posting me with anecdotes andstories. I want to hear more. You cancontact me through my website www.davethorpe.net. EfCall us at 1-888-547-8877 or email TPPLoans@amgnational.comMember FDICEqual Housing LenderExpandYour AgencyorRefinanceat a Lower Rate• Lending up to 80% of TPP at competitive rates• Experience helping Allstate agents grow their businesses• Community bank service with national reach and resources• Strong and stable national institutionAMG National Trust Bankwww.amgnational.comSpring 2012 Exclusivefocus — 47

featureRalph Waldo Emerson and woopleThe author, who wishes to remain anonymous,originally intended to send this to Tom Wilson, Phil Lawson and Rob Fowler,but thought it would be better to publish in Exclusivefocus magazine.We all know Ralph WaldoEmerson, the author of Self-Reliance. Clearly, he was abrilliant man. Most of us would love tohave an entire staff of Emersons in ouremploy; relying, trusting, and acting ontheir own volition and genius on a dailybasis. Imagine how efficient and productiveour agencies would be.Emerson once wrote: “To believe yourown thought, to believe that what is true foryou in your private heart is true for all men— that is genius.”Men have long been outmaneuveredby the wily skills of the fairer sex. At onetime or another, many of us have experiencedsituations where our wives have anidea, but rather than voicing it outrightin fear of immediate rejection, we arepresented with a series of questions thatlead us to the desired conclusion. Thenwe stand back and take credit and feelbetter for acting upon it while our wivesquietly get what they want.Woople is the opposite of that. Peopledon’t want to come to work in an Allstateagency and not be successful. Theywant success just like we do. They wantcredit just like we do, and they like tobe admired for their contribution just aswe do.Although woople scores a few goodpoints now and then, it mostly drowns usin banal absurdities.Emerson wrote: “A man should learn todetect and watch that gleam of light whichflashes across his mind from within, morethan the luster of the firmament of bardsand sages. Yet he dismisses without noticehis thought, because it is his. In every workof genius we recognize our own rejectedthoughts; they come back to us with a certainalienated majesty...Else tomorrow a stranger will say withmasterly good sense precisely what we havethought and felt all the time, and we shallbe forced to take with shame ourown opinion from another.”Had Emerson been forcedto take woople, what wouldhe have thought? I believe itwould go something like this:The infinite drudgery of beingforce-fed endless hours of elementaryschool common sense is a taskof humiliation that reveals thearrogance and ineptitude of thetaskmaster. For a leader to knowingly andwillingly breed contempt toward himselfis to create problems where none originallyexisted and is the perfect example of errordefeating itself. For a taskmaster to thinkgenius is only within him is not confidence,it is egotism on display for the world to see.He also might say something like: Idon’t know if I would let my third-gradeson be a woople warrior, let alone myselfas an adult with high standing in my community.It has been rumored that someone atHome Office made the decision to doleout a substantial amount of money forwoople, thinking agents would embraceit and use it. The problem was that few,if any, signed up for it. That should havebeen the first clue. But instead, managementhas doubled down and forcedthousands of agents and staff to waste asignificant portion of their lives on thishumiliation.As an agency owner, I can say withcertainty that the blow to agent moralecaused by woople far outweighs the scantamount of information it provides, notto mention the sizeable chunk of moneythe company has spent on it. If there isany rudimentary value in woople at all,the least the company could do is get itaccredited as a CE course, so we can getsomething useful out of it. Ihave a feeling, however, thatthe state insurance departmentswould find it lackingin substance.What will I do at the agencylevel? First, I will tell my staffthat I value them as humanbeings; that I hired them becauseof the quality of peoplethey are and because I appreciatethe genius and goodness they bringwith them through the door every day. Iwill encourage them to innovate and empowerthem to improve what we do whereverthey see it as appropriate. Why? Becauseas Emerson wrote: “To believe yourown thought, to believe that what is true foryou in your private heart is true for all men- that is genius”I believe and trust to my core that whatis in my heart and mind is also in theirs.We will compartmentalize this idioticwoople endeavor and move on with ourlives because we are professionals.Mr. Wilson, I also trust that what isin my heart is in yours; that you know toyour very core that this woople thing is afiasco. The sooner you end it, the soonermorale will improve. And hey, you’ll getall the popularity and credit for ending itand we will all be better off because of it.As I said, everyone at my agency willcontinue to do all the things we do to providethe highest customer experience possible,to grow our agency, and to grow asa person. Why? We want to do it becausethat’s the way we are. Do we need woopleto tell us that or talk us into it? The answer,Mr. Wilson, is a resounding NO! Ef48 — Exclusivefocus Spring 2012

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parodyThis Explains EverythingWe always knew Tom Wilson was not from around here“Suborbital profile complete Commander,”stated the ship’s navigator. Hisflat monotone statement belied the tensionassociated with the execution of theupcoming maneuver.“Very well,” replied Commander Lidd.“Prepare to execute, on my mark.” Liddleaned forward, allowing the restrainingharness to stop his forward momentum.As the commander stared at the navigationconsole, he couldn’t help rememberingthe last time he and his crew visitedthe planet known as Earth.Commander Lidd and his crew hadtravelled to Earth 56 years ago and executedthe first phase of a two-part plan.Because his home planet, Zorbon, wasdesperately low on qualified sales professionals,it was decided it was necessaryto seed a neighboring planet withone of their highly qualified managementdroids. Over time, the droid wouldevolve and grow, and eventually resemblea full-grown adult human. Zorbondroids were fully functioning units andwere capable of consuming Earth drinkand food. The droid would then assimilateitself into a predetermined businessprofile and begin the process ofobserving and cataloging potential salesprofessionals for the mission’s secondphase; exportation to Zorbon.Allowing a small grin to steal acrosshis face, the commander was confidentthat X42, known to Earthlings as ThomasWilson, would be recovered with a databasefilled with the names of thousandsof expert sales professionals. Zorbon’sglobal sales professional crisis wouldsoon be a thing of the past.Commander Lidd watched as the crosshairs of the navigation display centered onthe population center known as Chicago.Noting that all landing status indicatorswere flagged green for “go,” Lidd sat backin his harness and said, “Mark.”The ship decelerated quickly and begana controlled descent to the planet’ssurface. With the ship’s cloaking device atmax efficiency, there was little chance ofunwanted detection either during flightmode or while the ship was stationary onthe ground. The cover of darkness anda regional weather front provided additionalsecurity for the craft’s safe landingand disembarkment of the captain andhis three-man recovery crew.Now walking among the Earth dwellers,Captain Lidd marveled at thesimplicity of Earth’s obsolete groundconveyances. Zorbon had long since advancedto multiple layers of hovercraftflight paths as well as a series of tube-likenetworks for transportation of individualZorbons.Zorbon’s geographical structure wasmuch like that of Earth. Great oceansseparated three main continents. Manyof the countries had a similar economic50 — Exclusivefocus Spring 2012

and political makeup as those found onEarth. But the highly technical natureof Zorbon left most of the world withoutenough qualified sales professionals.Earth was their one hope for solving theproblem.Following the holographic map imageprojected on the lens implants in hiseyes, Commander Lidd sorted quicklythrough the throngs of humans towardthe pulsating blip that identified X42’scurrent location. As his crew fanned outbehind him, Lidd began to notice thedifference in the makeup of the buildingsthat surrounded him. Anticipatinghe would find X42 amid the toweringskyscrapers Chicago was known for, thecommander was surprised when he foundhimself approaching a small, squat, twostorystructure bearing a flashing neonsign that read Wilson’s Liquors.While two crew members positionedthemselves outside, Commander Liddand the third crew member, designatedas a Recovery Tech, went inside thecrumbling establishment. Flickeringoverhead lights and a dank smell of stalecigarette smoke assaulted Lidd’s senses.He quickly adjusted the contrast input ofhis lens implants to their lowest setting,but there was nothing he could do to offsetthe foul smell.Turning to the Recovery Tech, Liddbarked, “Tech, let’s make quick work ofthis. Locate Wilson, uh X42, and let’sget out of here.”Walking quickly through the stacks ofliquor bottles and beer can pyramids, thepair eventually made their way to the areawhere money was exchanged for goodsto be purchased. The Tech then removeda handheld tracking device from a pouchin his jacket and held it at arm’s length.“Positive ID Commander,” said the Techas he pointed at a smallish, bespectacledman behind the sales counter and added,“Not exactly where I expected to find ourstate of the art X42 series droid.”Lidd increased the contrast for hislens implants and confirmed the Tech’sassessment. “I concur with your positiveID,” said Lidd. “Initiate recall signal.”The Tech pressed a series of keys onthe device and watched as the displayaccepted his authorization. “Recall initiated,”stated the Tech.Both men watched as X42 pushed hisglasses higher on his nose and continuedto interact with a human purchasing abottle of wine. “Thanks for shopping atWilson’s Liquors,” X42/Wilson said tothe man while taking the man’s money.“Is there anything else I can do for you?I can also offer you a free evaluation ofyour insurance needs.”“Huh?” said the man. “Nah, I wouldn’tbuy insurance from you; just gimmiemy change.” Snatching the money fromWilsons’s outstretched hand, the customerturned and hurried from the store.“What’s going on?” hissed CommanderLidd to his Tech.“I don’t know sir. The recall device’s programconfirmed X42’s identity and properlyexecuted the command.” The Techpunched a series of keys on the handheldunit and showed the Commander theflashing display. “It’s possible X42 hassuffered some sort of programming error.That might also explain why our highestlevel management droid is selling intoxicationliquids to common humans.”“OK, execute manual retrieval,” saidLidd.Without a moment’s hesitation, theTech quickly strode behind the counter.Before Wilson could react, the Techgrasped the droid’s right arm, spun himaround and hoisted the diminutive manonto his shoulder. Exiting the building,the Commander and his crew quicklytook their captive in tow, and made theirway back to the ship through the darkened,rain-slicked streets.Upon reaching the ship, CommanderLidd ordered the Tech to run a completediagnostic on X42. This was no easyfeat, as the Wilson part of X42 protestedloudly and demanded to speak to whoeverwas in charge.“This must be some kind of mistake,”Wilson stammered. “I need to get backto my store. I have inventory to complete.You there,” he said pointing toCommander Lidd. “You seem to be incharge. What’s your name?”Commander Lidd glanced at the Techin disbelief.Sensing the Commander’s irritation,the Tech turned to face Wilson/X42.“Mr. Wilson, uh X42... don’t you knowwhere you are? Doesn’t your memorycore recognize your immediate surroundingsor the man standing beforeyou?” The Tech motioned toward theCommander.Wilson/X42 glanced at the Commanderand then stared back at the Tech,confusion clearly had overtaken the man/droid’s facial expression.The Tech leaned toward CommanderLidd and said, “I can institute the emergencyverbal re-boot protocol which willimmobilize him. Once X42 is in standbymode we can access his data port for acomplete download of its stored data.”Lidd knew that although unusual,there were instances where a droid’s“overt programming” could be corrupted.He also knew that any attempt to accessthe physical data port without correctauthorization would cause the droid’s“sub programming” to execute a selfdestructsequence, thereby ending anyhope of recovering even the smallest bitof data. “Very well,” he said. “Use X42’sverbal re-boot command.”The Tech consulted his data screen,turning to face Wilson/X42 he said,“Your mommy says you have been a badboy.”Wilson/X42’s facial expression, aswell as his body, went completely limp.Before X42 could fall to the deck of theship, two crewmen, who had been standingby, reached out and cradled the disabledX42.A short while later....After nearly two Earth weeks of intenseanalysis, the Tech was finally prepared topresent his findings to the Commander.With Lidd seated in front of the ship’smain holographic display, the Tech initiatedthe display and said, “Clearly therewas a catastrophic failure of X42’s coreprogramming. We know this is true becausehis actions were in direct contraventionto all acceptable business practicesutilized in the 2,200 known star systems.I searched our data banks and none of the82 million planets as advanced as Zorbonhave ever experienced such lack of competencein their management programs.Even a second grader on Zorbon wouldhave performed better.” The Tech pausedto assess Commander Lidd’s acceptanceof his statement.Spring 2012 Exclusivefocus — 51

Noting the Commander’s pensivefacial expression, the Tech pressed on.“Our onboard data system was able tocompress X42’s real-time data streamand we seem to have pinpointed thepoint in time at which an anomalycorrupted X42’s programming.” TheTech manipulated the console in frontof him and started the video playback,and continued, “We believe that duringa private celebration with a Mr. EdLiddy, X42 attempted to consume alarge quantity of an Earth food productknown as meatballs. Somehow, he managedto lodge four uneaten meatballs inhis primary cooling unit, causing it tooverheat.”Motioning to the playback of theevent, the Tech said, “Watch as a guest atthe party senses X42’s distress, and performsa maneuver called the Heimlich,in order to clear the meatballs from X42’soral cavity.”Lidd watched as the video showed aperson rushing up to Wilson/X42 whilesimultaneously staring in horror at theconvulsing droid. Then just as swiftly, theperson disappears from view and reachesfrom behind to compress X42’s chest.The resulting compressions succeed inejecting three of the four meatballs.“Now here is the defining moment,”states the Tech. “Unfortunately forX42, the fourth meatball becomes permanentlylodged and causes the primarycore unit to continue to overheat,thereby damaging not only the ‘overtprogramming’ module, but the backupmodule as well. The backup modulealso contained all of the standard businesspractice routines, the encrypteddata storage unit, as well as protocolsfor interacting with the targeted salesprofessionals.”Commander Lidd crossed his arms infront of him in disbelief. “You mean totell me that an insignificant tidbit of foodhas completely destroyed 56 years worthof research data?”“I’m afraid so,” stated the Tech flatly.“It’s gets even worse. After the meatballincident, X42 begins dismantling all ofthe years of sales excellence at AllstateInsurance Company. If you will remember,we initially chose Allstate becauseof the highly-tenured, successful salesagents that were an integral part ofbuilding a great company.”The Commander closed his eyes andshook his head in disgust. “Surely thereare enough professionals left that couldhelp us complete our mission.”The Tech took Lidd’s statement as aquestion and answered, “Well sir, therecertainly are qualified representativeswho still work for Allstate, but the psychologicalprofiles for most of them indicatean extremely low level of morale andhigh level of dissatisfaction with theirAllstate careers.”“I thought you said X42’s data waslost? How is it that you are able to determinethe psychological profiles for any ofthe agents?” Lidd asked.“Well sir, it’s true, all of the stored rawdata was destroyed. But as we just saw,Wilson’s ....ah, I mean, X42’s audio andvideo data storage unit was unaffected.Our playback of X42’s audio and videofeed shows he was fully aware of theagents’ loss of confidence as well as theimpact it was having on the number ofagents that were voluntarily leaving thecompany.”“How do you know this?” asked thecommander.The Tech scanned through the videofiles and stopped when it reached a filelabeled: “Agency Relationship Survey,2008 through 2011.”The Tech replied, “I have reason tobelieve X42 knowingly ignored the scientificresults of the survey in order toadvance an alternate plan influenced byMr. Ed Liddy. It was simply bad luck;right after the meatball incident, X42fell under Mr. Liddy’s influence. Afterthe highly advanced computer programmingwas disabled by the meatball,X42 was reduced to a mere puppet,susceptible to the influence of those,like Mr. Liddy, who understood how tomanipulate him. His influence was socomplete, X42 began to espouse all ofthe failed sales processes Mr. Liddy haddeveloped during his tenure at Allstateand Sears without ever questioningwhy they failed. X42 was convinced hecould bypass the agents by selling mostof Allstate’s insurance policies over theInternet and by utilizing its toll-free callcenters. He even tried to place agent officesin car dealerships.”“Car dealerships?” scoffed Lidd. “Whatwas he going to try next, try to sell insurancethrough vending machines?”“As a matter of fact.....” said the Tech.Commander Lidd interrupted. “Howdid X42 end up owning Wilson’s Liquors?”“Well,” said the Tech. “By 2013, only3,000 agents remained out of the 13,000he started with and the company’s stockdropped to a record low of $1.47. Eventhe board members he had ‘hand-picked’couldn’t convince the shareholders he wasdoing a good job anymore, and at longlast, he was sacked. Since the companywas worth a small fraction of what it hadbeen in its glory days, all he received inseverance was enough to buy a run-downliquor store, which is what he did.”“It looks like you have done quite a bitof research on this fiasco, Tech. Is thereany hope of taking at least a few agentsback to Zorbon?” asked the Commander.“Well sir, without the data X42 wasto have retained, it would be too riskyto choose.” The Tech motioned to theholographic display. “The external data Iwas able to collect indicate that there arestill a few excellent agents left, but mostof the highly qualified representativesleft the company and opened independentagencies. Therefore, cannot attainour desired target number of 10,000 salesprofessionals.”“All right Tech,” said Lidd. “Good job.Our mission profile called for ex-filtrationof highly qualified Allstate agents. Sincethe data was lost, as well as the fact thatX42 went rogue, we are cancelling themission. Execute back-up plan Alpha.”Standing on the sidewalk, the newly reprogrammedX42/Wilson glanced up atthe sky. Sensing more than actually seeingthe ship’s departure, Wilson took this ashis cue to initiate the new mission profileit was decided he was best suited for.Arriving at his new place of employment,Wilson quickly placed himself inthe proper position of authority. Seeing anew client enter, he quickly greeted him.With Zorbon-like efficiency, he completedthe initial phase of the transaction.Then, remembering to make eye contact,he initiated the final phase of thesales process by saying, “Would you likefries with that?” Ef52 — Exclusivefocus Spring 2012

technologyInsurance for Your Agency’s DataFireproof/Waterproof External Hard Drivesvs. Cloud BackupBy Robb MooreThe cloud is sometimes perceived asan IT cure-all; it’s the way of thefuture and, sooner or later, all ourdata will be held and processed on remoteservers, avoiding the need to buy, maintainand support expensive hardware andsoftware. When it comes to cloud backup– or online backup – the appeal is obvious.For a modest monthly fee, all yourdata will be backed up and securely storedin a remote location, protected from fire,flood, theft and other accidents that couldhappen were it to be stored on-site. Atleast, that’s the theory. The reality, however,is somewhat different.Online backup is indeed a great option,but to think of it as a completereplacement for local backup would bea mistake. On the contrary, a disasterprooflocal backup – by which I mean aredundant copy of your data that is keptin your office on a fireproof /waterproofhard drive – has a number of advantagesover a cloud backup.Backup speed. Online backup canbe a slow process. In fact, it can be anextremely slow process. For example,Amazon estimates that it would take aminimum of 82 days to backup one terabyte(TB) of data to their servers over aT1 connection. What this means is thatthere may be a substantial lapse betweenthe time data is created and the time itgets backed up, which, of course, couldendanger the preservation of the databy exposing it to loss during those periodsof time. In comparison, backingup that one terabyte data to an externalhard drive would take hours rather thandays, substantially reducing the windowof vulnerability.Recovery speed. After a disaster, it’simportant to be able to recover computersystems in the shortest possible time inorder to minimize costly business interruption.With a local, image-based backup,this can be accomplished in a matterof minutes – even if you need to restorethe operating system, applications anddata to a new computer. Cloud-basedbackups, however, do not enable you tocreate an image-based backup, so restoringeverything to a new computer inone fell swoop is simply not an option.Instead, the operating system and applicationsneed to be loaded and then thedata from the online backup restored. It’sa time-consuming process and, as we allknow, time is money.Cost. Online backup is becoming increasinglycostly. Mozy, one of the bestknownonline backup companies, recentlyabandoned its unlimited storage plansand switched to a per-gigabyte (GB)pricing model. The effect is that costssoar. To store 500GB under Mozy’s unlimitedplan would have cost about $60per year, but to store the same amountof data under the per-GB plan wouldcost about $600 per year. In comparison,you can buy a fireproof/waterproof externalhard drive with one terabyte – or1,000GB – of space for less than $200and there is no recurring monthly fee.Reliability. In March of last year,Flickr erroneously deleted 4,000 photos.Imagine if that had been client data and/or business data. And this was not the firstsuch loss. Carbonite, another well-knownonline backup company, lost data belongingto 7,500 customers. Whoops! Whilecloud backup is not unreliable, it wouldnonetheless be a mistake to assume thatdata stored online cannot be lost. With alocal backup, you retain control over yourdata. This certainly does not remove allrisk, but at least your data will not be permanentlyand irrevocably deleted due tothe carelessness of a third-party.After reading this article, you maythink I’m anti-cloud, far from it. Thecloud is an excellent way for agents tocollaborate and mobilize their data. Butdon’t put all your eggs in one cloudbasedbasket. Local backups offer speed,reliability, cost and security benefits thatthe cloud simply cannot match. EfRobb Moore is the Chief Executive Officerof ioSafe, Inc., the leading manufacturer offireproof waterproof computer storage hardware.Robb has a degree in mechanical engineeringfrom the University of California,Santa Barbara and is the primary inventorfor multiple US patents. To learn moreabout ioSafe, visit www.iosafe.com.References:Amazon’s New Service Goes PostalOver Slow Broadband http://gigaom.com/2009/05/21/amazons-new-service-goes-postal-over-slow-broadband/Blame me: Mozy scraps unlimited backupshttp://news.cnet.com/8301-30685_3-20030096-264.html?tag=mncolFlickr Permanently Deletes User’s Account,4,000 Photos by Accident http://www.pcmag.com/article2/0,2817,2379212,00.aspCarbonite loses 7,500 customers’ files(ouch) http://blogs.computerworld.com/carbonite_loses_7500_customers_filesSpring 2012 Exclusivefocus — 53

Working TogetherWINNING TOGETHERNAPAA/OPEIU Guild 17 • A New Way to Success

ARE You TIREd ofBEING TREATEd LikeAN EmpLOYEE …With Allstate ControllingEverything You Do?Secure your livelihood and create trueparity when dealing with Allstate.Join the only organization representingthe interests of Allstate agents.“The power of NAPAA is enhancedthrough OPEIU at every level.Together we can do far more for Allstateagents than any individual agent cando alone. Allstate agents need to bandtogether now more than ever and joinNAPAA.”Robert IsacsenNAPAA PresidentNAPAA/OPEIU Guild 17 • A New Way to Success

CAN ALLSTATE’s BEHAvIORBe CHANGEd?After decades of happily taking the profits that its agentsgenerated, and terminating agents only for complianceissues or egregious conduct, Allstate has upped theante by demanding more and more production from itsagents in recent years. As more agents have fallen behind,the company has been terminating contracts in everincreasingnumbers. While no one outside the companyknows how many have been terminated, NAPAA believesit could be as many as 5,000 or more under Allstate’scurrent leadership.“Allstate is terminating an unprecedented number of agents for failingto meet arbitrary performance goals. There is obviously somethingwrong when twenty to thirty percent of the agency force can’t achievethese company-imposed quotas, especially when they realize theircareers are at stake.”Jim FishNAPAA Executive Director

THE ANSWER IS YESThat’s why NAPAA was formed. One of the major goalsof our organization is to change the behavior of Allstate,particularly with respect to terminations. NAPAA serves asan ombudsman, constantly checking on and voicing itsopinion with respect to objectionable actions by Allstate.We are an advocate for the agents and will do everythingin our power to protect your well-being.Our affiliation with Officeand Professional EmployeesInternational Union (OPEIU)enables us to have a greater voicein serving as an advocate for theagents, bringing legislative powerand legal support to our efforts.Yes, Allstate’s behavior can be changed! But we needyour help. Please join NAPAA today.NAPAA/OPEIU Guild 17 • A New Way to Success

WHAT IS NAPAA?

Incorporated in New York with headquarters in Gulfport,Mississippi, NAPAA is a non-profit organization whosemembers are predominantly insurance agents undercontract with Allstate. In addition to offering a variety ofbenefits and services, NAPAA further serves its membersby acting on their behalf and speaking with a distinct andunfettered voice on a wide range of issues.NAPAA affiliated with the 108,000-member Office andProfessional Employees International Union to aid in ourlegislative efforts, and to create a stronger, more unified voiceon behalf of Allstate agents.

A NEW WAY TO JOIN OPEIUMost employees or independent contractors becomepart of OPEIU through their membership in a LocalUnion or Guild. Affiliating with a national union suchas OPEIU brings unparalleled strength and supportwithin a common industry or labor market.Thousands of independentcontractors have discovered thatOPEIU can be a great advocate forthem through direct affiliation asa Guild. NAPAA has affiliated withOPEIU as Guild 17.Of course, independentcontractors are not covered bycollective bargaining, but receiveother services such as legislativeand legal support, along withinvaluable membership benefits.By joining OPEIU, NAPAA membersbecome part of the broaderAFL-CIO representing 11 millionpeople throughout the UnitedStates, who enjoy membershipbenefits and support – whileretaining their individual identity,culture and autonomy.Allstate agents need the solidarityof a united labor movement ontheir side. Being part of OPEIUenables NAPAA to become part ofthat movement.

WORkING TOGETHER,WINNING TOGETHERMore iMPorTAntNow Than EverOrganizations affiliated with OPEIU:3 Retain their autonomy3 Maintain their own governance3 And continue making their own policy and program decisionsOPEIU membership provides added strengthto NAPAA through:3 Solidarity with the AFL-CIO and their nearly 11 million members3 Unity at the state and local levels3 A voice – and a vote – at labor’s table, with participation andvoting rights on the national, state and local decision-makingbodies of the AFL-CIO3 Added strength to help change Allstate’s behavior3 Member benefits – discounted goods and services for you andemployees of your agencyNAPAA/OPEIU Guild 17 • A New Way to Success

NAPAA mEmBERSHIpBENEfITS fOR AGENTS$350/YearKey Agent Joins NAPAA and Receives NAPAA Membership Benefits:L WellCard Health Access Program that Provides:• up to 65% on Prescription Drugs• up to 50% on Dental and Vision Care• up to 30% on Medical Hospital Bill Help• up to 25% on Doctor VisitsL Identity Theft Protection with Internet MonitoringA proactive, comprehensive defense against identity theft – the fastest growing crime in theUnited States – with internet monitoring and a fully managed recovery provider.L Towing/Service CallsUp to 2 per year, per household, valued at $100 each for family members living in the samehousehold as the member.L Continuing Education Subsidy$50 every two years.L Errors and Omissions Policy SubsidyReimbursement of up to 20% of the deductible for any E&O claim paid of up to$500 per member, per year.L PerksCard National Discount ProgramSavings of hundreds of dollars on website and in-store purchases through national retailers,at restaurants, on movie tickets and numerous other items.L Eligibility for ScholarshipsGeneral scholarships of up to $6,000, scholarships for labor studies up to $3,000 and a summer campfor children, stepchildren or legally adopted children between the ages of 13 and 16.L Federal Credit Union for NAPAA Members.Coming soon!L “Welcome Home” Real Estate Rebate ProgramA multi-faceted service that offers assistance with buying, selling and refinancing real estateas well as relocation and rental services and resources.L AFL-CIO “Union Plus” BenefitsConsumer savings, discounts, benefits and education resources. Visit www.unionplus.org to learn more.

NAPAA mEmBERSHIp BENEfITSfOR kEY AGENTS ANd empLOYEES$350/Year Plus $72/Year Per EmployeeKey Agent Joins NAPAA and Receives NAPAA Membership Benefits, and if AgentEnrolls His/Her Agency Employees in NAPAA as Associate Members, everybodyreceives All NAPAA Membership Benefits PLUS Disability Payment and AccidentalDeath and Dismemberment Life Insurance Benefits:L Disability Payment• Disabilities resulting from illness of six weeks or more, receive a one-time flat payment of $500• Disabilities resulting from accidents of six weeks or more, receive a one-time flat payment of $1,000L $25,000 Accidental Death and Dismemberment Life Insurance BenefitL WellCard Health Access Program that Provides:• up to 65% on Prescription Drugs• up to 50% on Dental and Vision Care• up to 30% on Medical Hospital Bill Help• up to 25% on Doctor VisitsL Identity Theft Protection with Internet MonitoringA proactive, comprehensive defense against identity theft – the fastest growing crimein the United States – with internet monitoring and a fully managed recovery provider.L Towing/Service CallsUp to 2 per year, per household, valued at $100 each for family members living in the samehousehold as the member.L Continuing Education Subsidy$50 every two years.L Errors and Omissions Policy SubsidyReimbursement of up to 20% of the deductible for any E&O claim paid of up to$500 per member, per year.L PerksCard National Discount ProgramSavings of hundreds of dollars on website and in-store purchases through national retailers, atrestaurants, on movie tickets and numerous other items.L Eligibility for ScholarshipsGeneral scholarships of up to $6,000, scholarships for labor studies up to $3,000 and a summer campfor children, stepchildren or legally adopted children between the ages of 13 and 16.L Federal Credit Union for NAPAA Members.Coming soon!L “Welcome Home” Real Estate Rebate ProgramA multi-faceted service that offers assistance with buying, selling and refinancing real estate aswell as relocation and rental services and resources.L AFL-CIO “Union Plus” BenefitsConsumer savings, discounts, benefits and education resources. Visit www.unionplus.org to learn more.NAPAA/OPEIU Guild 17 • A New Way to Success

JOIN NAPAA/OPEIU GuILd 17Be part of America’s largest, most powerful andmost effective organization for Allstate agents– NAPAA/OPEIU Guild 17 and the AFL-CIO.For more information, please visitwww.napaausa.org or call (877) 627-2248.NAPAA/OPEIU Guild 17 • A New Way to Success

G DETACH GFAX APPLICATION TO: 866.627.2232OR MAIL TO: NAPAA, P.O. Box 7666, Gulfport, MS 39506OR APPLY ONLINE AT: www.napaausa.orgNameMembership ApplicationNational Association ofProfessional Allstate Agents, Inc.(NAPAA/OPEIU Guild 17)P. O. Box 7666, Gulfport, MS 39506-7666Call Toll-Free: 877.627.2248Fax Toll-free: 866.627.2232E-Mail: HQ@napaausa.orgwww.napaausa.orgAddressContact InformationMembershipCategories(Choose One)l NAPAA Membership For Agent Annual Dues – $350l NAPAA Membership forAgent and EmployeesAnnual Dues – $350, plus $72 per employeeEmployee Names:__________________________________________________________________________________________________________________________________________Payment Sectionl CHECK – Annual: Please make payable to NAPAA and mail to the address at the top of this application.l CREDIT CARD – Annual: I authorize this amount to be charged to my credit card. Please complete the information below:Card Type: l VISA l MasterCard l Discover l American Express$Name on AccountAmount to be Charged: (Annual Only)Account Number Expiration Date Security CodeAddress on Card State ZipSignature of CardholderDateG DETACH Gl EFT – Monthly (attach or fax voided check)AuthorizationI understand that the amount stated above will be deducted frommy checking account every month until instructed otherwise.I have enclosed a voided check and understand that the withdrawals will occur on or about the 20th of every month.8SignatureDate

letters to NAPAAContinued from page 12.I just wrote a check and mailedto NAPAA to join. I am one of the MANYof Allstate agents who were shorted 20%on my commissions over the last twomonths. I have won National Conference12 out of the last 13 years. I simply cannottrust this company anymore.My new independent agency is goingwell. I am inundated with all kinds ofAllstate customers calling after the majoradvertising I did announcing my newoffice in my market.The independent carriers I now representtreat us like real professional businesspeople and they help out big time.More agents have left Allstate in myarea, so the company has frozen the terminationprocess. The existing agenciesare having trouble servicing orphanedpolicyholders and the company cannotfind replacement agents. I guess word ofmouth is discouraging the new hires.Wait until 8/8 hits in 2014; it will belike rats jumping ship. I have spoken toother recently terminated agents andlearned that Allstate is harassing themwith cease and desist letters even thoughthey aren’t doing anything wrong. Nonehave had their TPP suspended and oneof them has threatened to sue Allstate forthe unsupported harassment.Inside buyers must achieve high levelsof performance and are still likely to beturned down. Yet outside buyers are routinelyapproved even if they have:• Never worked in any Sales job.• Never been trained in or employedin the insurance industry.• Never been trained and licensed inproperty & casualty insurance.• Never been trained or licensed inlife & health insurance.• Never owned a business.• Never been self-employed.Management stupidity? Not what I believe.Allstate purposefully selects buyerswho are utterly dependent upon receivingguidance and instruction from management.Allstate wants its agents to bedrones, not independent-minded entrepreneursor experienced insurance people.Why, you ask? After 46 years of workingunder their “guidance” I have concludedthat Allstate wants its agencies toblindly follow every instruction they aregiven or suffer the consequences.I just thought I would give you headsup. We just received our 2012 AT&Tphone book and Allstate has completelyeliminated agent names from the bookin both the yellow and white pages. Ouraddresses are listed in the white pagesbut not our names. Allstate placed an adwith an 800 number for claims and an800 number for quotes.We understand that people in manyparts of the country don’t use the yellowpages anymore, but they do in this area.Needless to say, we are very upset. Hasanyone else brought this to your attention?We are trying to decide, as a group,how to combat this situation.Unfortunately, agents can’t control Allstate’sad spending, but with morale as lowas it is, you would think they would directlocal calls to local agencies. However, itwould not surprise me if they reroute thequote calls to newly-hired agents to help ensuretheir success. Certainly Yellow Page adsare not what they used to be, but there arestill people that use them. We checked out thelocal Yellow Pages in our area and it has anAllstate display ad that features several localagents. However, this option may not beavailable in all regions. The company seemsto be moving away from ads that supportindividual agencies in favor of broader messagesthat drive consumers to the 800 channel.Who knows, maybe they think that sinceit’s their money paying for the ads, they deservethe revenues they produce.If a company display ad is not availablein your area, you may want to partner withthe agents in your area to put a joint non-Allstate ad together. If you get enough support,I recommend a full page. If a joint adis not in the cards, you can do the same thingindividually. The other option is an incolumnad, which would be less expensive.If such an ad is not available through Allstate,you can always create a non-Allstateversion.In any case, if the company had properlypublicized the change in advance, agentscould have made alternate plans. Now itwill be a year before the next book comes out.Letters and articles submittedto NAPAA may be edited forclarity, space, grammar, syntaxand suitability.Names of agent contributorswill only be published withwriter’s permission.Letters and othersubmissions can bee-mailed toExclusivefocus@napaaUSA.orgor mailed to:NAPAA, P.O. Box 7666,Gulfport, MS 3950666 — Exclusivefocus Spring 2012

In business it’s not what you know , it’s who youknow, and getting to know Ovation Payrollcomes with benefits!But don’t just take our word for it:“I switched to Ovation and instantly experienced faster and easierpayroll processing at a lower cost”Scott E. SileoThe Sileo agency LLC.“Ovation Payroll allows me to process payroll easily withouthassle. Their software gives me the ability bl go on‐line to processpayroll and view my reports. Their customer service is top notch.”Dennis A KarlanDennis Karlan Insurance“Thank you for being such a great payroll company! Payroll isone thing I don not have to spend time and energy on anylonger, and I know my taxes and employees are being paid ontime. ”Debe A. Campos‐FleenorThe Fleenor AgencyAs an endorsed provider of NAPAA, Ovation Payroll is dedicated toproviding each agency with award winning service, their owndedicated payroll specialist, and a competitive rate.Charles ParkhurstOvation Payroll866‐341‐3504cparkhurst@ovationpayroll.com

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleArizonaTucsonHarold Broc BroccolettiA070725@ALLSTATE.COM520-744-3994Asking Price: $375,000PIF: 1,518 Premium: $1,515,114Number of Staff: 1prime area, low rent, samelocation over 10 years, 35 yearagent.Green ValleyBrad Balmerbradbalmer@yahoo.com520-400-3097Asking Price: $240,000PIF: 1,575 Premium: $1,235,500Number of Staff: 2Low overhead. L/R 38% Retention89% Only EA within 25miles.ArkansasFort SmithGary Richardsongrichardson@allstate.com479-651-8200Asking Price: $550,000PIF: 2,516 Premium: $2,759,600Number of Staff: 2Prime location, approx. 240,000population. LR 43%, retention88%.CaliforniaLos AngelesPaul Parkgordian9@pacbell.net323-845-4622Asking Price: $0PIF: 800 Premium: $1,000,000Achieve Ideal Agency statusovernight. Merger and partnership.Playa Del ReyRobet Attalarobertattala@yahoo.com310-920 -0798Asking Price: NegotiablePIF: 1,795 Premium: $2,167,000Number of Staff: 1Retention is %87. 1,219 Household.Reasonable rent.MontereyNatalie Hungerfordnhungerford@allstate.com831-642-6400Asking Price: NegotiablePIF: 737 Premium: $838,000Number of Staff: 1Excellent downtown location,Qualifies for enhanced commissionsColoradoPagosa SpringsCathe Hillhillagency11@yahoo.com970-731-5190Asking Price: $233,000PIF: 1,036 Premium: $971,725Number of Staff: 1Only EA in Southern CO. Samelocation for 14 years. LicensedNM AZ COConnecticutEast HavenDouglas M Hughesdouglashughes@allstate.com203-469-2289Asking Price: CallPIF: 2,202 Premium: $2,783,289ALI over 90!FloridaPort OrangeBert Danielrsdanielinc@cfl.rr.com386-547-0220Asking Price: NegotiablePIF: & Premium: call for detailsNumber of Staff: 387% retention, 47% LR. Largeexpanded market book. Samelocation 20 years.Saint CloudMarilyn CochranMaJaPa10@AOL.com407-922-9471Asking Price: $450,000PIF: 1,500 Premium: $1,500,000Number of Staff: 3St CloudBernie Olliffbolliff@cfl.rr.com407 -346-9547Asking Price: $55,000PIF: 500 Premium: $400,000Number of Staff: 2Near the new Orlando/LakeNona medical city, brand newoffice with equipment andfurniture still under warranty,2 licensed staff, fully trainedand up to date with educationrequirements. Office is 1000 sqft at $950 per month, a greatlocation south east of Orlandowith vast expansion plannedfor the new medical city, over2300 new homes being builtacross the street from theoffice.Lake MaryD. Brent Carlidbcarli@allstate.com407-322-3911Asking Price: $1,500,000PIF: 4,200 plus Premium:$5,600,00025 year agent giving up theAllstate ways..DelandDenny Cowartdenniscowart@allstate.com386-734-6551Asking Price: $575,000PIF: 2,000 + 700 BrokeredPremium: $2,950,000Number of Staff: 127 yr agent, LR 48%, retentionproperty 94%, auto 89%Haines CityCarol EddyCarolEddy@allstate.com863-860-9555Asking Price: $600,000PIF: 1,740 Premium: $2,400,000Number of Staff: 227 yr agent retiring. Samelocation since 1995.WellingtonJulie Kimejuliekime@allstate.com561-329-4416Asking Price: Call for infoPIF: 3,018 Premium: $5,600,000Number of Staff: 332 yr agent in same location.LR 58%, Retention 87+%MiamiArnoldo ArguelloArguelloArnoldo@gmail.com786-499-3415Asking Price: Please callPIF: 3,000 Premium: $4,000,000Number of Staff: 322 yr agent, Retention: 84.8%,LR: 51.2%, ALI: 81.KissimmeeDale Revelsdalerevels@gmail.com407-924-5336Asking Price: Please callPIF: & Premium: call for infoNumber of Staff: 125 years in the heart of CentralFlorida. Allstate Hall of FameEFSGeorgiaNorcrossHenry Waikgeorgia@gmail.comAsking Price: $925,000PIF: 2,800 Premium: $3,200,000Number of Staff: 2Confidential inquiry onlyKennesawPrivateA097536@allstate.com770-424-1801Asking Price: $425,000PIF: 2,045 Premium: $1,706,000Number of Staff: 125 yr agency, prime location,negotiable rent, low LR, highretention68 — Exclusivefocus Spring 2012

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleNorcrossPrivategeorgiaagencyforsale@gmail.com770-605-8215Asking Price: Please callPIF: & Premium: Please callPlease contact Lee Herringwith Herring Consulting Partnersfor all information.MaconMarion McMillanmmcmillanjr@allstate.com678-223-7397Asking Price: NegotiablePIF: 1,836 Premium: $2,260,000Number of Staff: 132 yr agent, retiring Retention88% LR 44%. Great locationAtlantaLaura Leidigh David Brazierlauraleidigh@yahoo.com404-233-5650Asking Price: $850,000PIF: 2,618 Premium: $2,957,580Number of Staff: 2Established 1989, LR 46..9,retention 90%Smyrna And StockbridgePrivatesamm@melclemmons.com678-223-7397Asking Price: Negotiable2 agencies available, call fordetails. Priced for quick sale.RoswellPrivatesamm@melclemmons.com678-223-7397Asking Price: NegotiablePremium: $5M and $2.3MNumber of Staff: 32 locations, staff will stay. LR50%, retention 90%.TyroneBrad Gohsmangohs31392@msn.com770-487-1112Asking Price: $475,000PIF: 1,850 Premium: $1,450,704Number of Staff: 225 yr agency, reasonable rent,low LR, high retention.IllinoisHickory HillsBryant Harrisbrykath@comcast.net708-254-4629Asking Price: $499,000PIF: 2,412 Premium: $2,043,000Number of Staff: 2Same location 17 years, retention86.67, ALI 74Rolling MeadowsMarty Wahbamartywahba@yahoo.com847-577-7722Asking Price: NegotiablePIF: 1,100 Premium: $1,310,000Number of Staff: 118 yr agency in Chicago NWsuburban, 91% retentionSt CharlesDon SmithA005235@allstate.com630-377-1969Asking Price: NEGOTIABLEPIF: 1,025 Premium: $1,127,769Number of Staff: 114 years, desirable city inChicagoland. 86% retention,low LR.IndianaLa PorteKenneth Elliskennethellis@allstate.com219-324-9595Asking Price: Fire Sale $750KPIF: 2,300 Premium: $2,900,000Number of Staff: 2Motivated Seller, call now tomake a deal.MarylandSeveral locations, Maryland.Ed Hogg (Rep)ehogg9@gmail.com703-862-8168Asking Price: NegotiableSeveral locations. Please callfor details.Glen BurnieCatherine Sorrellcbsagent@aol.com410-768-4446Asking Price: $1,115,000PIF: 3,027 Premium: $3,714,000Number of Staff: 2Retention: 90.14%, LR: 44.53%.ALI: 85SalisburyFred Pastorefredpastore@allstate.com410-860-0866Asking Price: $315,000PIF: 1,263 Premium: $1,434,794Number of Staff: 1Retention 90+, LR 40%, 31 yragent can stay as staff.NevadaLas VegasHoward M Shawhowardmshaw@allstate.com702-365-1392Asking Price: $510,000PIF: 1,589 Premium: $2,044,171Number of Staff: 32011 ALI 90. Retention 92.5, LR51.2. Agent 65, retiring after34 years. Great location inSummerlin. Includes furniture,equipment, signage. Low rent.Turn key.New JerseyPenningtonLloyd M Bezarlloydbezar@allstate.com609-737-7990Asking Price: $520,000PIF: 1,977 Premium: $2,569,000Number of Staff: 1LR 41.96, Retention 92, ALI 84,Commission Scale 10%. 45year book, agent retiring. Priceincludes F&E, call for details.Cape May Court HouseTheresa Caseycaseytmc@comcast.net609-374-5460Asking Price: $2,500,000PIF: 6,150 Premium: $7,000,000Number of Staff: 560 yr agency, purchased 1999.LR 38.62, Retention 93.57.Contents, building everythingnegotiable.GlendoraSparano Insurance Agencyasparanojr@allstate.com856-939-1010Asking Price: $1,400,000PIF: 3,450 Premium: $4,700,000New MexicoSilver CitySimon G Ortizsgortiz0707@gmail.com575-534-5192Asking Price: NegotiablePIF: 1,975 Premium: $1,950,000Number of Staff: 3New, beautiful branded officebuilding. Established in1988New YorkBrooklynBarbara Shamah Leedsbarbararose583@aol.com917-301-2477Asking Price: $1,200,000PIF: 1,758 Premium: $4.600,000Number of Staff: 330 yr agent retiring. 47% LR,89.67% retention.Spring 2012 Exclusivefocus — 69

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleNorth CarolinaAshevilleMike Gentilinigentilini@bellsouth.net828-712-0707Asking Price: NegotiablePIF: 3900 Premium: $3,234,000Number of Staff: 4Beautiful Blue Ridge Mountains.31 year agency on mainthoroughfare. Spacious, modernand well appointed. Optionto lease or purchase. NearestAllstate agency 5½ miles north,12 miles south, 16 miles westand 8 miles east. LR 39% and90+% Retention.Pisgah ForestLeca Harrislecaharris@allstate.com828-606-9515Asking Price: CallPIF: 2,112 Premium: $1,725,000Number of Staff: 1.5Retention 91% LR 44%. ClosestAllstate agency is 20 milesaway. Located on busy thoroughfare.North DakotaGrand ForksLeland Jelinekljelinek2@gra.midco.net701-746-9330Asking Price: NegotiablePIF: 1,227 Premium: $1,000,000Number of Staff: 1703 HH with 90.66 Ret. 5 yr Ret91.90. 2.24 Ave Pol/HH. ALI86. 80+ FL policies. Only 20Brokered policies. Locationstrip mall next to one of largestauto dealerships in MW. $435/month. 20+ yrs same location.Only EA in Grand Forks,65,000+. 3% Unemployment inarea/state. Great opportunityfor growth.OklahomaNormanLouis Hemphilllouishemphill@allstate.com405 -360-7656Asking Price: Please callPIF: 2,000 Premium: $2,000,000Number of Staff: 2Two locations nearby in centralOklahoma, over 2 million inpremium.PennsylvaniaCoplayWendi Kratzerwendikratzer@allstate.com610-462-4278Asking Price: $240,000PIF: 1,140 Premium: $1,000,000Number of Staff: 22.4 policies per HH. Greatlocation on busy intersection.Retention 91%. PSA agencylast 2 years, ALI mid 80’s. Onlycall cell number listed please!DanvilleBert Brunozzibert@allstate.com570-854-1855Asking Price: $240,000PIF: 1,287 Premium: $1,065,000Number of Staff: 2Very good book, great opportunityto merge and achievescale.BuckinghamAndrew Bailey SrAndyBaileySR@allstate.com215-794-1888Asking Price: $1,239,675PIF: 2971 Premium: $4,132,250Number of Staff: 237 yr agent, PSA. SecondAgency in location also availablewith $1,646,366 premium.TexasAustinBlake Simpsonblakesimpson@allstate.com512-923-3004 Evening onlyAsking Price: $455,000PIF: 1,518 Premium: $1,752,787plusNumber of Staff: 1Retention 92.08, LR 52.75, HH692. Merge with an existingagency, and only 1 LSP required.Lease $650/mo includingutilities. Please contact viaemail.HoustonSteve Hosierhosierassoc@allstate.com281-435-6909Asking Price: NegotiablePIF: 3,337 Premium: $5,800,000Number of Staff: 4HH Retention 91.18%. LR50.08%. Preferred location.HoustonSharp Financial Group, Inc.insagency@yahoo.com516-606-1995Asking Price: NegotiablePIF: 1,300 Premium: $1,825,000Number of Staff: 2Diversified book, 10 yr agency,88.2% retention, 57% LRUtahWest JordanRyan Daviswhosgameisit23@gmail.com801-562-8866Asking Price: Please call withinquiriesPIF: 1,180 Premium: $1,065,000Number of Staff: 2VermontBrattleboroMichael Dornerdorninc@yahoo.com802 -380-0014Asking Price: $520,000PIF: 2,464 Premium: $2,271,000Number of Staff: 1Retiring after 18 years. Greatlocation, borders N.H. & MA.Licensed in VT. & N.H. 20+years Allstate experiencedSupport Staff. LR 36% Retention92%, ALI 85. Only EA insouthern VT.VirginiaSpringfieldLarry A Bronstonelbronstone@gmail.com703-967-8287Asking Price: $725,000PIF: 2,286 Premium: $2,939,736Number of Staff: 4Several locationsEd Hogg (Rep)ehogg9@gmail.com703-862-8168Asking Price: NegotiableSeller Rep in VA and MD, severallocations, various sizes.Call for details.WashingtonSpokaneDick Triesch& Michael McClanedickjtriesch@yahoo.com509-768-0957 (Mike)Asking Price: make an offerPIF: 1,987 Premium: $1,675,349Number of Staff: 1Established 1989, retention91.38, LR 43.28, ALI 83.70 — Exclusivefocus Spring 2012

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