they are meant to protect franchisees fromfranchisor abuses such as unjust contract terminationsand interference in the sale <strong>of</strong> thebusiness. Once again, <strong>Allstate</strong> is trying tohave its cake and eat it too.. . . . . . . . . . . .I have heard from a reliable sourcethat 18 agents in one <strong>of</strong> the major marketsin my state have put in for TPP. Mysource originally thought these agentswere probably new agents because theyjust can’t make it, but has since found outthat many <strong>of</strong> them have been agents for10+ years and have $2-3 million books.There are around 140 agents in thatmarket, but still that’s over 10%. Nowonder management is trying to convinceme to stay. What are they going todo with all those accounts and how willthey replace all these agents? What willhappen to all those customers when theyget moved around and don’t know whotheir agent is? I believe a great majority<strong>of</strong> them will leave <strong>Allstate</strong>.. . . . . . . . . . . .I am in my third year as a scratch agentand my finances are extremely tight thisyear. Many <strong>of</strong> my credit lines have beenreduced, so it is essential that I am ableto pay bills out <strong>of</strong> my commissions. Afterthree years, I still have not been able to paymyself and am considered one <strong>of</strong> the betteragents in the area. Unfortunately, I haveno choice but to eliminate all subscriptionsand new finances at this time. Regrettably,this means I must also cancel my NAPAAmembership until things improve.. . . . . . . . . . . .I am a 20-year agent with <strong>Allstate</strong> anda longtime NAPAA member. I’ll soon beterminating my "agreement" with <strong>Allstate</strong>.I'd like you to know that havingthe information provided by NAPAAhas been very helpful and informative...you made it more bearable to remain anagent. However, there is no "bailout"letters to NAPAAfor small agencies like mine so I've decidedto call it a day. I will continue myNAPAA membership, so please updatemy mailing address to my home.Feel free to contact me if you needmore information from me.Thanks and continue to do goodwork!. . . . . . . . . . . .We had a 41-year agent terminatedlast Friday. They showed up Fridaymorning and removed his computers andripped out his phones. I knew he was underthreat <strong>of</strong> termination since early lastyear. He tried to sell without any luck.Most <strong>of</strong> his book was not TPP eligible.Last year, the company threw a big 40-year anniversary party for him and thenthreatened him with termination a daylater. Interestingly, the local managertried to get him to sell to his wife, but shecouldn't pass her insurance license exam,so the deal fell through.With the economy the way it is andmoney for buying anything in short supply,consumers are pinching pennies.This, along with the highest auto ratesin the industry, paints a bleak picture forthe Big A this year – it will be lucky tohave any agents or customers left by theend <strong>of</strong> 2009.I switched my own commercial insurancethis year (my <strong>of</strong>fice building). <strong>Allstate</strong>premium: 1,307. New policy withbetter coverage: $760.The last <strong>Exclusivefocus</strong> was great, andDirectExpress is much better now, too.Keep up the good work.. . . . . . . . . . . .I really would like to attend the conference,but I'm just not able to make ithappen! I'm very interested in what yourspeakers have to say. Is it possible to sellme a video tape or Webcast <strong>of</strong> the guestspeakers' presentations? Others who'dlike to attend but can't, might be willingto purchase it, too.Editor’s response: We have looked atdoing this in the past. However, we havefound that audio recordings do not conveythe energy <strong>of</strong> the speaker or the audience.Most <strong>of</strong> the time, the speakers interact withthe audience, and their questions cannot beclearly heard on the audio recording, whichdiminishes the essence <strong>of</strong> the presentation.It’s a little like going to a concert to see yourfavorite artist perform – a good live performancecannot be replicated by any medium,including a DVD with surround sound. Anotherconsideration is the cost <strong>of</strong> producingand distributing a CD or DVD. And sinceNAPAA only receives a handful <strong>of</strong> requestseach year for conference videos or DVDs, itappears there is not enough demand to warrantthe cost.Last year, we transcribed Canadian RodLaRocque’s presentation and printed it inthe fall issue <strong>of</strong> <strong>Exclusivefocus</strong> magazine. Wemay do that again this year, but that won’tbe decided until after the conference.. . . . . . . . . . . .We are tackling yet even more rate increasesin our state; auto, home and landlords.Then there’s the poor soul with alousy credit score who is getting nailed withincreases that are undeserved. I checkedmy own credit score and it didn’t change,but I went from excellent to good with one<strong>of</strong> the rating bureaus. So what does thismean? More customers will be nailed bythe credit score component <strong>of</strong> rating?I have lost so much business because<strong>of</strong> the continued stream <strong>of</strong> rate increases.These customers think it is a bait andswitch game. I’ve even lost householdsover $10 bucks a month. I’m good, butnot good enough to save accounts thathave increased by hundreds <strong>of</strong> dollars ayear. And definitely not good enough tosave those with increases <strong>of</strong> more than$1,000 per year. Where are those actuariescoming from? What is their real goal?I had one customer with a premium <strong>of</strong>$1,200; we increased the rate to $2,700(no credit score change); and then aLetters continued on page12.10 — <strong>Exclusivefocus</strong> Spring 2009
We Finance <strong>Allstate</strong> Agencies!Paul ClarkeChief Operating OfficerTabitha ChisumSr. Closing Coordinator<strong>Allstate</strong> SpecialistSteven KemperRelationship Manager<strong>Allstate</strong> SpecialistAshley MarcelleClosing Coordinator<strong>Allstate</strong> SpecialistOur Staff isDedicated toServing You!Dustin MangoneRelationship Manager<strong>Allstate</strong> SpecialistKyle CrawfordRelationship Manager<strong>Allstate</strong> Specialist“PPC has been a huge asset to my career and business. Not only have they provided ahassle-free initial loan to fund my acquisition, they have also done a tremendous jobwith ongoing communication as well as recognizing me as a valued client. I have sentother buyers to them and I plan to use their services should I acquire a 2nd location.PPC understands how to value an agency, what personal attributes each individualbrings to the table, and how to leverage multiple banks to ensure the right financingoption for the borrower.” – Adam Pisani, <strong>Allstate</strong> Agent, Sugarland, TXWith the current lending climate you may notice some companies backing out <strong>of</strong>the <strong>Allstate</strong> market. In these unsure times you can rely on Pr<strong>of</strong>essional PracticeCapital to stick to our commitments. Our loans are bank funded and we willcontinue to lend to agents nationwide. If you are left in a bind by another lender -remember you can always count on PPC!100% FinancingLow, Fixed Interest Rates7, 10, &15 Year Loan TermsNo Multiple <strong>of</strong> Revenue Limits800.456.2779www.ppcloan.cominfo@ppcloan.comSpring 2009 <strong>Exclusivefocus</strong> — 11
Change language