A CALL TO ARMS - National Association of Professional Allstate ...

ExclusivefocusFall 2009An Official Publication of the National Association ofProfessional Allstate Agents, Inc.FEATURES11 2010 National Exclusive Agent Conference12 From the Outside Looking In...An interview with Massive RFG’s David Neuenschwander.24 A CALL TO ARMSAn urgent plea for action submitted by a concerned Allstate agent.28 IRS Form SS-8...the Last Resort for Beleaguered Agents?35 Preparing for Your FutureThe ins and outs ofselling your agency.48 A Refresher on the Basic Aspects of Financial Retirement Planning52 “Look Ma, No Hands!”Behind the Wheel of the Allstate JuggernautTECHNOLOGY15 Wi-Fi Calling: A New Communication Tool for Allstate Agents?BY TOM KOKKINES38 Is VoIP Right for Me?BY JACKIE FUNK50 Has Your Business Paid Thousands of Dollars for SomethingIt’s Never Used?A Magazine for Allstate Agency Owners and AllstatePersonal Financial RepresentativesBUSINESS18 Doing BusinessOutside of AllstateBY ATTORNEY DIRK BEAMER20 An Agent’s Guide for Growthin Turbulent TimesBY RICK DENNEN23 Federal Income Tax Creditsfor Replacement WindowsHelp Home InsuranceCustomers42 Increasing Production andEfficiencies withAutomationBY BILL GOUGH37 Structured Sales are NowBeing Used to Safely DeferCapital Gains TaxBY D. JOE MODLIN34 Decisions, Decisions...TipsAgents Should ConsiderWhen Choosing an AgencyManagement System44 Crisis Management:Preparing Your Customersfor the Worst46 Timing is EverythingBY TOM SANDERSDEPARTMENTS6 President’s Letter8 Letters to NAPAAA27 Membership Application60 NAPAA Market Place62 Advertiser Index4 — Exclusivefocus Fall 2009

president’s letterDear Allstate agents, Personal FinancialRepresentatives and support staff:Tom Wilson appears to be all aboutreinventing Allstate, and it’s about time.When you stop to consider how muchthe world has changed in the past 25years, you have to wonder how somethings have managed to remain stagnant.Such is the case with Allstate’s managementstructure, which has been standingstill for as long as I can remember. I thinkwe can all concur that the current managementsystem at Allstate is obsolete.When I look at the managementstructure and practices at Allstate, I amunderwhelmed. Anyone who has beenaround for a decade or two will likelyagree that despite changing titles severaltimes over the years, the MSL, TSL andthe FVP perform virtually the same jobas they did back when they were DSMs,TSMs and RVPs. Or how about addinga new region and then consolidating thesame region based on a new CEO’s vision?In a nutshell, it’s all the same oldstuff, which produces no breakthroughsor positive change.As a result of this oppressive “top down”management paradigm, all of the parts ofthis once great company are in conflict.The agency force, once the “poster child”at Allstate, has become increasingly disenchantedand frustrated as it strugglesto cope with higher and higher quotas,a declining brand image, record rate increasesand unprecedented HRM underwritingpolicies, caused and created by adysfunctional team of managers, most ofwhom still remain in place today. As if allSupport Those Who Bring You This MagazineIf you have a customer moving out of state, call the Agent-to-Agent Hotline to find an experienced NAPAA member in the area.Give something back to those dues-paying member agents whomake this publication possible.Your support is greatlyappreciated.When you havea Transfer-Out…Call 877.627.2248Send email requests toHQ@napaausa.orgExclusivefocusNational 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.orgJim FishExecutive EditorP.O. Box 7666Gulfport, MS 39506Phone (877) 269-3474 • Fax (866) 627-2232Exclusivefocus@napaausa.orgExclusivefocus 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 attitudesof our members and to advance the professionalism ofthe insurance industry to the ultimate benefit of theinsuring public.The views expressed by NAPAA, or any of its positionsrelative to its activities and those of its members’actions on behalf of this organization, are expresslythose of NAPAA, and do not reflect the views or theopinions of Allstate Insurance Company, or any of itsaffiliates.Letters to the Editor: All letters must include anaddress and a daytime and evening phone number. Wereserve the right to edit letters for clarity and space.This 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, influencedby a constantly changing environment and theneeds and 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 optionsand solutions• Make tools and resources available formembers in an effort to increase agency valueand success.For more information,please visitwww.napaausa.org6 — Exclusivefocus Fall 2009

point, most commonly a wireless router,is connected to your broadband modem.You can use your own wireless router ifyou already have one or there are selectrouters that are designed for simple setup.These routers offer enhanced batterylife for the handset as well as ensuringvoice calls are carried with the utmostcall quality. The routers sold by the cellphone companies also have commonlyavailable data features found on standardrouters, and work with the user’s existingbroadband connection.For more information, you can checkwith your wireless carrier to see whetherthey support this service and the costsassociated with adopting this new andexciting technology.Unlimited HotSpot Calling (Wi-Fi):has been honored by Andrew Seybold,Frost & Sullivan, Laptop Magazine andthe New York Times as one of the mostinnovative products of 2007.Advantages• Improved coverage - Cellular overWi-Fi gives subscribers the indoor coveragethey demand in the places wherethey spend most of their time, at homeand at the office.UMA - Wi-Fi Calling Network Architecture• Broadband data rates - Cellular overWi-Fi enables subscribers to receive atrue broadband experience for their mobiledata and IMS services.• Lower costs - Depending on the serviceprovider, mobile voice, data and IMSservices accessed via Wi-Fi will typicallyhave lower charges than when accessedvia the outdoor cellular network.Disadvantages• Faxing – Currently the ability to faxis not an option. However, services suchas eFax and MyFax are typically availablefor less than the cost of a fax line.• Home Alarm Systems – Some homealarm systems are not compatible withthis technology, but most are.This article was written by Tom Kokkines.Tom is a 15 year veteran of the wirelessindustry. To find out more information onthis technology, go to http://www.partnerpages.com/Wi-Fi.Announcing the Agent-to-Agent Referral Contest…Win a $250 American Express card Just in Time for Christmas!Here’s one more reason to keep your transfer-out customers in the in the hands of an experienced agent. From now until December 1, 2009,we’ll put your name in a drawing for a $250 American Express gift card for every transfer-out you refer to the NAPAA Agent-to-Agent Hotline.The more transfer-outs you refer, the better your chances to win.The bottom line is that your customers are the real winners because NAPAA will refer them to an experienced agent, who will providethem with exceptional service. Plus, all agents are eligible to win the gift card.How does the NAPAA Agent-to-Agent Referral hotline work?It’s easy. When one of your customers asks for your help in locating an Allstate agent in another state, you simply call and ask for a referral.You can also submit a request online at www.napaausa.org and we’ll respond by email. When we receive your request, we searchour database for an eligible agent nearest your customer’s destination. While we prefer using a ZIP code, we can also search by city name.It works great and customers appreciate their agent going the extra mile by helping them find an Allstate agent.At NAPAA headquarters we receive lots of compliments about the program. It’s not all about the easy money the receiving agent earns ona transfer-in; it’s more about doing the right thing for your customer. Picture yourself in your customer’s shoes, would you want your insuranceagent or his staff to simply tell you to call just “any agent” when you get to your final destination?So, next time you get a transfer-out, call us. Let us show you how it works.If your staff handles all your service work, have them call us. We can help you provide outstandingcustomer service. And, best of all, this is a free service. Here’s our toll free number: (877) 627-2248.16 — Exclusivefocus Fall 2009

FREEUnlimitedNationwideWi-Fi Calling®from T-MobileSpecial offer for Allstate Agents!Wi-Fi Calling for business can help you cut wireless costsand receive coverage in areas no provider serves.* With Wi-FiCalling, you can make and receive unlimited nationwide callsfrom a Wi-Fi-enabled location -- a home office, local HotSpot,hotel room, and office campuses -- without using yourwireless minutes. Calls seamlessly transition from Wi-Fi tothe wireless network. And now, when you sign-up under acorporate line, there is no charge for Wi-Fi Calling (a $10/movalue) if the service is added to a converged device!Sign up today and you’ll get:A FREE Blackberry ® 8320A FREE D-Link ® Wireless Router foruse in your home officeWaived Activation Fee – a $35 valueUnlimited Wi-Fi calling at no chargeFREE Blackberry 8320+FREE D-LinkWireless Router= big savings!This incredible offer is only available by callingtoll-free 1-866-464-8662 and selecting option 3.Mention promo code Allstate Agent when you call.*Broadband connection required. Plus taxes and fees. Limited-time offer; subject to change. Unlimited HotSpot Calling Service: UMA-enabled phone, qualifying voice rate planand Unlimited HotSpot Calling add-on plan. See Pricing, Service and Devices brochures, and T-Mobile’s Terms and Conditions (including arbitration provision) at www.T-Mobile.com, for additional rate plan information, charges for features/services, restrictions and details, including important limitations on availability and reliability of 9-1-1 emergencyservice. The RIM and BlackBerry families of related marks, images and related symbols are the exclusive property of and trademarks of Research in Motion Limited — usedby permission. T-Mobile and the magenta color are federally registered trademarks of Deutsche Telekom AG. The myFaves design and stick together are federally registeredtrademarks of T-Mobile USA, Inc. © 2009 T-Mobile USA, Inc.

and present a “win/win” for the agenciesand for Allstate.Agents should watch for news andupdates from NAPAA in Exclusivefocusmagazine and elsewhere.Allstate Termination Rights. In evaluatingalternative business options andwhether Allstate will perceive them toviolate either the letter or the spirit ofthe Allstate Agency Agreement, agentsshould keep in mind the broad discretionAllstate exercises in deciding whether toterminate an agency relationship. Accordingto the Allstate Agency Agreement,Allstate has the unlimited right toterminate agents for any reason in its solediscretion by giving 90 days prior notice.NAPAA, along with many others, questionsthe legality of this provision in theAllstate Agency Agreement. But to date,NAPAA is not aware of any decision byany court in the country that challengesAllstate’s unilateral discretion in this regard.That being the case, any decision byan Allstate agency owner that is subjectto Allstate scrutiny should be prudentlyconsidered.Dirk Beamer, a principal with the Detroit-arealaw firm of Wright, Penning &Beamer, advises agents on business practices,purchases and sales, management, and employmentpractices. He has served as generalcounsel to NAPAA for 10 years and has beenrecognized by NAPAA with the President’sAward “for exemplary and unselfish dedicationto the Agents of Allstate.” Learn moreat www.wrightpenning.com.Fall 2009 Exclusivefocus — 19

finance tipsAn Agent’s Guide for Growthin Turbulent TimesBY RICK DENNENon building long-term relationships thatcan withstand change and adversity. Andtry to avoid a large percentage of revenuescoming from just a few clients, becauseif they can’t afford to pay premiumsin a few years, you could lose a big chunkof commission dollars.Despite the ups and downs of theeconomy, it is important to keeplooking for opportunities and strategiesthat will help you achieve your goals—including acquisitions. Reading toomuch bad financial news can stifle yourmotivation. So spend less time dwellingon the economy and instead, focus yourefforts on planning your future.Among the strategies that can helpyou flourish and reach your goals faster:Think long-term success, notshort-term profitsLook beyond next month’s commissionsand visualize what your agencyshould look like in one, three or fiveyears. Your vision can include anythingfrom growing organically, acquiring anotheragency, or upgrading technologyand planning for the next generation totake over the business. This vision shouldmatch your core competencies and thetalents of your management team to helpensure success. Once the picture is clear,chart the path to realize your vision.Target stable clientsWhile all new clients bring welcomerevenues, don’t spend too much time goingafter business owners with shaky corporatestructures or questionable practices,because some may not be around ina few months. They may not be able toafford premium payments in the future.The same strategy holds true for yourpersonal lines clients. It is not usuallya good idea to build a book of businesswith a base of high risk customers. Instead,you should use your marketing resourcesto identify clients most likely tostay on the books and who will continueto generate revenue and referral businessfor years to come.For all your dependable clients, workPlan for the unexpectedNothing is certain in life or businessexcept for death, taxes—and uncertainty.Help prepare for the future by maintainingadequate cash reserves for at leastthree to six months. You may need additionalfunds to keep your agency operatingafter losing a substantial number ofrenewal customers due to back-to-backrate increases or for some other unanticipatedoccurrence.Put clients’ needs beforecommissionsAlways offer products that fit yourclients’ needs—even if it means earninga lower commission. If a client says thathe or she can afford a premium but youknow or suspect otherwise, offer honest,straight-forward recommendations thatwill position that person or company forsuccess. This will help nurture long-termrelationships that will pay off down theroad. Keep in mind what happened to allthose homeowners who got stuck withsub-prime mortgages!Before acquiring a book ofbusiness, do your homeworkIf you’re considering an acquisition, besure to conduct thorough due diligence,outlined below.1. Analyze the other agency’s bookSee what percentage of the accountshave been on the books for two or moreyears. And review the loss ratios and20 — Exclusivefocus Fall 2009

You’ve workedhard buildingyour bookof business.Make that book work hard for you.Your TPP is a hidden asset that manybanks won’t lend against. A loan fromOak Street Funding unlocks that valueso you can leverage assets now to helpyour business grow organically or throughacquisition. Why borrow against yourhome or retirement when your TPP isthe answer? Partner with the consistentindustry leader to get the capital you needto achieve your financial goals.» Allstate agents may qualify for additionalsavings with our Gold Program –Call today! NEW» Fast, hassle-free loan processing withinteractive website portal NEW» Get the cash you need to upgradetechnology, recruit top producers, acquirean agency, consolidate business debt,and more!» Flexible terms and convenientpayment options» Put your TPP to work for you!Your Ideas. Our Money.1-866-OAK-FUND(1-866-625-3863)Mention promo code ALLSTATE09for a free, no-obligation consultationwww.oakstreetfunding.comLoans and lines of credit subject to approval.CA residents: Loans made pursuant to a Department of Corporations California Finance Lenders License.20124-0908

When your customers file claims toreplace broken or damaged homewindows, be sure to let them know they cansave money by installing energy-efficientreplacement windows. Energy-efficientwindows save an average of 25 percent onenergy bills. Plus the federal government isencouraging energy-efficient window replacementsby offering income tax creditson qualifying windows and doors. What’sthe catch? The windows and doors mustmeet tougher standards than in the past.The federal income tax credit for energy-efficientreplacement glass windowsand doors is now 30 percent of theproduct cost up to $1,500 per household.That’s an increase from $500 two yearsago. However, unlike tax credits for energy-efficientwindows and doors inprior years, the “30/30” criteria is stricterthan the government’s Energy Star ratingprogram. Not all Energy Star labeledwindows and doors will qualify for thenew income tax credit.To take advantage of the tax credit in2009 and 2010, homeowners must makesure the energy-efficient replacementglass windows and doors meet or exceedthe “30/30” criteria to qualify. Here’swhat to do:1. Look for the manufacturer’s labelson the glass window product packaging.It should say that it exceeds the “30/30”requirement. Do not rely on the EnergyStar logo.The manufacturer’s labels should showthat the qualifying replacement glass windowsmeet or exceed U-factor and SolarHeat Gain Coefficient (SHGC) ratings,also called the “30/30” criteria. In otherwords, the U-factor rating must be .30 orless and the SHGC must be .30 or less.The U-factor rating measures the passageof heat through the glass. Windowswith lower U-factor ratings are morebusiness tipsFederal Income Tax Credits for ReplacementWindows Help Home Insurance CustomersBY DAN MOCKenergy efficient. They also reduce theamount of ultraviolet light entering theroom, which reduces fading of furnitureand carpeting.The SHGC rating measures the percentageof heat in the room gained fromabsorbed heat and direct sunlight. Windowswith lower SHGC ratings reducethe solar heat gain in the house. Thishelps keep homes cooler in the summer.It adds up to lower home energy costs.2. Select the right replacement windowsthat will qualify for the tax credit.The most energy-efficient replacementwindows on the market are triple-panereplacement windows with argon gas insulation(commonly called Insulated GlassUnits or IGUs). These windows are eligiblefor the tax credits and will reduce home energycosts the most. They are most popularin northern climates because they can alsokeep heat from escaping the home throughwindow glass in the winter.Single-pane replacement windows arenot eligible for the energy-efficient taxcredit because glass by itself is not an insulator.The U-factor and SHGC ratingswill be too high.Most double-pane replacement windowswith low-E coating or gas insulationprobably will qualify. Homeownersshould insist on checking for the EnergyStar label as well as the U-factor andSHGC ratings on the replacement windowmanufacturer’s labels before allowingthe windows to be installed. Remember,not all Energy Star double-pane windowsqualify for the tax credit, but if theproduct does not have an Energy Starlabel at all it definitely will not qualify.If you have a question about whether ornot the double-pane windows qualify, aglass shop will be glad to help contact thewindow manufacturer directly.3. Save the sales receipt, the windowmanufacturer’s labels and documentationfor the special form to be submitted withthe 2009/2010 tax return.To receive the tax credit, homeownerswill have to submit IRS Form 5695 witha receipt for the replacement window purchaseand the window manufacturer labelsand stickers. A tax credit reduces theamount a taxpayer owes the governmentin taxes; it does not reduce the amount ofincome on which the taxpayer owes taxes.The federal energy efficiency tax creditis allowed on the cost of the actual replacementwindow product that qualifies. Thetax credit is not allowed on installationservices, onsite preparation, assembly, orstate sales taxes. Windows for new homesdo not qualify for the tax credit, no matterwhat type of window is installed.If you have any questions about energy-efficientreplacement windows andglass doors, contact your local glass shop.If you have specific questions about thetax credit, be sure to contact your taxplanner or accountant.Dan Mock is Vice President of Operations forGlass Doctor®, the nation’s largest full-serviceglass repair and replacement company,but is not a tax advisor. The above is a partialsummary of the revisions to the federaltax code (U.S. Code Title 26, Section 25C)as updated by the American Recovery andReinvestment Act of 2009. Taxpayers shouldcheck with the IRS regarding updates to theIRS interim guidance in Notice 2006-26 forfurther details on the tax credit. Other energyefficient improvements may apply; check thefollowing link and the IRS website for moredetails at http://www.irs.gov/newsroom/article/0,,id=97322,00.html. Glass Doctorbears no responsibility in the validation ofobtaining the tax credit. For more information,contact Dan at 1-800-280-9959 orDaniel.mock@glassdoctor.com.Fall 2009 Exclusivefocus — 23

Why join NAPAA?NAPAA Resource Center• NAPAA HQ has extensive resourcesto help agents locate hard to find informationNAPAA Acts as the Voice of theAllstate Agent:• We say the things that must be saidon behalf of the agent.• We take stands on issues that affectagents, such as ALI, RFG, independentcontractor status, quotas andterminations (See examples in Exclusivefocusmagazine).• We are willing to meet with companyleaders, without fear.• We have demonstrated that we arewilling to take legal action when warranted.• NAPAA possesses “standing” underboth Florida law and Federal law.National EA Conference• Great speakers, informative legal andbusiness tips, vendor fair and muchmore.Free Member Benefits• Useful tools to help buy or sell anagency• Sample business plan• Sample letter agreement• Sample asset purchase agreement• Non-disclosure agreement for CSRP• Quick Reference Guide to buyingand selling Allstate agencies• Agency for sale listing on NAPAAWebsite and in Exclusivefocus magazine• Consultation with HQ staff familiarwith sale process• Access to “Member’s Only” sectionon NAPAA WebsiteFree NAPAA Communications• Subscription to the “NAPAA Forum,”our online discussion group.• Subscription to DirectExpress weeklyemail newsletter• Subscription to Exclusivefocus magazineFree Customer Transfer-in/Transfer-out Service:• We locate experienced NAPAAmember agents for customers transferringfrom state-to-state• As a member, you become immediatelyeligible to receive customertransfers to your areaFree Leads from the “Get aQuote” Page on the NAPAAWebsite• When a consumer requests a quote,we provide the lead to a NAPAAmember in the area.Special Offers and Discounts• 25% members-only discount on payrollprocessing with Paychex• Access to dental, group health, 401kand Section125 Plan when payroll isprocessed with Advanco. For detailscontact: Gerry Flores at (563) 564-1800 or gerbear_61@hotmail.comExpert Assistance from Staff atNAPAA Headquarters• HQ staff has more than 50 yearscombined experience in and aroundAllstate• Many times, company managers act intheir own self-interest – NAPAA actsin your best interests all the time.• NAPAA members get straight, nononsensehelp on a wide range of issuesfrom the knowledgeable, experiencedstaff at NAPAA HQ. These includesuch issues as buying and selling agencies,staffing, marketing, HO securityinvestigations and terminations.“Legislate for Success” Program• NAPAA sponsors and supports legislationfavorable to Allstate agentsLet NAPAA Help you Succeed• NAPAA acts as a support system formembers if and when they need helpFree Mentoring Program• We help members sort through themixed messages and misinformationthey receive.• Helps newer agent members by givingthem access to an experiencedagent who can provide solid, sensibleadvice and directionThe Board of Directors• Board members are uncompensatedvolunteers who have your interests atheart.• They are a diverse group that includesboth newer agents and seasonedveterans.09/09 - EF26 — Exclusivefocus Fall 2009

featureIRS Form SS-8…the Last Resort for Beleaguered Agents?NAPAA regularly receives questionsand complaints from agents and othersabout Allstate’s perceived failure to honora true independent contractor relationship.We have raised the misclassificationissue a number of times over the years, notonly to provide information to the agencyforce, but to call attention to their plight.Frustration is mounting and agents areasking what options are available to challengethe status quo at Allstate.Some have suggested that agentsshould raise the issue with the IRS byfiling IRS Form SS-8. NAPAA has exploredthis option and has developed ahypothetical example of what a completedSS-8 form might look like basedon information reported to us by Allstateagents over a period of years. In recentmonths these misclassification complaintshave intensified, prompting us topublish this article and our version of ahypothetical SS-8 form in order to helpagents understand the determinationprocess used by the IRS.Filing IRS Form SS-8… theProcess to Determine YourReal StatusThe IRS process to determine workerclassification is initiated by filing FormSS-8, Determination of Worker Statusfor Purposes of Federal EmploymentTaxes and Income Tax Withholding.The IRS has also published Notice 989,Commonly Asked Questions When IRS DeterminesYour Work Status is “Employee.”Form SS-8 with complete instructionsand Notice 989 can be found at www.IRS.gov along with other informationthat can help agents decide if they shouldformally question their worker status ornot. If an agent decides to file the SS-8,the IRS will make a determination. Filersshould understand that this processcan take six months or more.The correct address for filing is:Internal Revenue ServiceSS-8 DeterminationsPO Box 630Stop 631Holtsville, NY 11742-0630A Hypothetical Exampleof Form SS-8Many agents have inquired aboutForm SS-8, and its potential either tocorrect the misclassification of all agentsas independent contractors, or to forcethe company to alter its “BehavioralControl” over the agency force, allowingAllstate agents the freedom they deserveas independent contractors.Following this article is a completed,but hypothetical, Form SS-8. Of course,the filer is a fictional character. Andwhile we made-up the responses on theform, we believe they represent predictableanswers that agents might providebased on company manuals, managementcommunications to agents, andother comments and information suppliedby agents across the country.While the plight of agents surely warrantsattention, NAPAA cannot predictthe determination that might be renderedby the IRS should agents file FormSS-8, or the long-term consequences ofsuch a determination for the agents thatfile and the agency force as a whole.A Word to the Wise…If the IRS determines that a filingagent is in fact an employee, the agentwill be responsible for filing an amendedreturn for any corrections related to thisdecision. A determination that a workeris an employee does not necessarily reduceany current or prior tax liability.Anyone considering filing Form SS-8should discuss it first with his or her accountantor tax advisor to determine anypotential tax ramifications on past andfuture tax returns. Agents should readthe instructions for Form SS-8 entirely,as well as Notice 989, before decidingto file the form. Filers should answer allquestions as completely and accurately aspossible based on their personal experiencewith the company.Filers should understand that the IRSwill notify Allstate and ask for its response.Potential consequences, positiveor negative, when filing Form SS-8 includethe possibility of re-classificationby the IRS, potential tax ramifications,and reprisal from Allstate.NAPAA is providing this article andthe attached sample Form SS-8 for informationalpurposes only.28 — Exclusivefocus Fall 2009

SS-8Form(Rev. November 2006)Department of the TreasuryInternal Revenue ServiceName of firm (or person) for whom the worker performed servicesThe Allstate CorporationDetermination of Worker Statusfor Purposes of Federal Employment Taxesand Income Tax WithholdingFirm’s address (include street address, apt. or suite no., city, state, and ZIP code)2775 Sanders Road, Northbrook, IL 60062-6127Worker’s nameJohn Q. WorkerOMB No. 1545-0004Worker’s address (include street address, apt. or suite no., city, state,and ZIP code)Worker's residence address, City, State and ZIPTrade name Daytime telephone number Worker’s social security numberAllstate Insurance Company( 999 ) 999-9999 SS#Telephone number (include area code) Firm’s employer identification number Worker’s employer identification number (if any)( 847 ) 402-5000 36 0719665Tax ID#Note. If the worker is paid by a firm other than the one listed on this form for these services, enter the name, address, and employer identificationnumber of the payer. Disclosure of InformationThe information provided on Form SS-8 may be disclosed to the firm, worker, or payer named above to assist the IRS in the determination process.For example, if you are a worker, we may disclose the information you provide on Form SS-8 to the firm or payer named above. The information canonly be disclosed to assist with the determination process. If you provide incomplete information, we may not be able to process your request. SeePrivacy Act and Paperwork Reduction Act Notice on page 5 for more information. If you do not want this information disclosed to other parties,do not file Form SS-8.Parts I–V. All filers of Form SS-8 must complete all questions in Parts I–IV. Part V must be completed if the worker provides a service directly tocustomers or is a salesperson. If you cannot answer a question, enter “Unknown” or “Does not apply.” If you need more space for a question, attachanother sheet with the part and question number clearly identified.Part I General Information1 This form is being completed by: Firm ✔ Worker; for services performed Year started as EA to 2009 (or term date) .(beginning date)(ending date)23456Explain your reason(s) for filing this form (for example, you received a bill from the IRS, you believe you erroneously received a Form 1099 orForm W-2, you are unable to get worker’s compensation benefits, or you were audited or are being audited by the IRS). I believe I ambeing improperly classified as an independent contractor. I receive a 1099, but am subjected to many employee-stylecontrols. Yet in spite of being treated as an employee, I am not provided with benefits that other co. employees enjoy.Total number of workers who performed or are performing the same or similar services 12,000 (estimate) .How did the worker obtain the job? ✔ Application Bid Employment Agency Other (specify)Attach copies of all supporting documentation (contracts, invoices, memos, Forms W-2 or Forms 1099-MISC issued or received, IRS closingagreements, IRS rulings, etc.). In addition, please inform us of any current or past litigation concerning the worker’s status. If no income reportingforms (Form 1099-MISC or W-2) were furnished to the worker, enter the amount of income earned for the year(s) at issue $ .If both Form W-2 and Form 1099-MISC were issued or received, explain why. See attached IRS Private Letter Ruling 8925018,R3001 Agreement, and 1099. Supplements to R3001 contract available upon request (approximately 500 pages).Describe the firm’s business. Selling and Servicing of insurance and financial products to individuals and businesses.789Describe the work done by the worker and provide the worker’s job title. Job title: Exclusive Agent. I sell and service only theproducts and services I am allowed to sell by Allstate. I am not able to sell for companies other than those permittedby Allstate. Allstate agents sell single policies or products, one at a time.Explain why you believe the worker is an employee or an independent contractor. I believe I am an employee because my work isdirected and controlled by Allstate. My staff and I receive extensive instruction and training on how the work must bedone, including required procedures and methods. I am subjected to production quotas, sales training, behavioraltraining, annual reviews, work process controls, mandatory office hours, mandatory meetings and more.Did the worker perform services for the firm in any capacity before providing the services that are the subject of this determination request?✔ Yes No N/AIf “Yes,” what were the dates of the prior service? I was an employee agent from 1985-2000.If “Yes,” explain the differences, if any, between the current and prior service. I was an Allstate Neighborhood Office Agent (NOA)before I was re-classified as an 'independent contractor.' Agents in the NOA program were employees. There are nosubstantive differences in my job then (as an employee) and my job today.10 If the work is done under a written agreement between the firm and the worker, attach a copy (preferably signed by both parties). Describe theterms and conditions of the work arrangement. See attached Agent Agreement. Terms: unilateral contract of adhesion. Thecontract expressly incorporates additional documents which can be amended at any time without notice to the agent.For Privacy Act and Paperwork Reduction Act Notice, see page 5.Cat. No. 16106TForm SS-8 (Rev. 11-2006)Fall 2009 Exclusivefocus — 29

Form SS-8 (Rev. 11-2006)Page 2Part IIBehavioral Control1 What specific training and/or instruction is the worker given by the firm? I receive instructions on how to sell, quote, answer thephone, explain rate changes, and more.2 How does the worker receive work assignments? Telephone, email, meetings, or via company programs such as Resourcesfor Growth, a program that establishes minimum expected performance levels for which I am held accountable.3 Who determines the methods by which the assignments are performed? The methods are dictated by Allstate.4 Who is the worker required to contact if problems or complaints arise and who is responsible for their resolution? My immediatemanager, an Allstate employee.5 What types of reports are required from the worker? Attach examples. Most reports are mechanized. They include POSIS, quotevolume, production, closing ratio and others. From time to time, I am required to report sales on a daily/weekly basis.6 Describe the worker’s daily routine such as, schedule, hours, etc. Allstate dictates a 44 hour work week. Unless I can afford tohire staff approved by Allstate, I must work 44 hours each week. My work day involves making policy changes, newsales,taking payments & improving customer satisfaction levels.7 At what location(s) does the worker perform services (e.g., firm’s premises, own shop or office, home, customer’s location, etc.)? Indicatethe appropriate percentage of time the worker spends in each location, if more than one. Agents sell insurance/financial productsat approved company locations. On rare ocassions I make house calls (less than 1%).8 Describe any meetings the worker is required to attend and any penalties for not attending (e.g., sales meetings, monthly meetings, staffmeetings, etc.). Topics include selling, quoting, customer care, complaint resolution, etc. Can be fired for not attending.9 Is the worker required to provide the services personally?✔ Yes No10 If substitutes or helpers are needed, who hires them? Agent hires them subject to company approval if worker is licensed.11 If the worker hires the substitutes or helpers, is approval required?✔ Yes NoIf “Yes,” by whom? Allstate, if helpers are licensed.12 Who pays the substitutes or helpers? Agent13 Is the worker reimbursed if the worker pays the substitutes or helpers?If “Yes,” by whom?Yes ✔ NoPart IIIFinancial Control123456789List the supplies, equipment, materials, and property provided by each party:The firm Product brochures, initial signage and branding, and agent-owned technology allowances or "components."The worker Most all other supplies and equipment, but I receive a allowances from Allstate for certain equipment.Other partyDoes the worker lease equipment?If “Yes,” what are the terms of the lease? (Attach a copy or explanatory statement.)Yes ✔ NoWhat expenses are incurred by the worker in the performance of services for the firm? Utilities, rent, payroll, postage, marketing,legal and accounting fees, E&O and other insurances.Specify which, if any, expenses are reimbursed by:The firm Reimbursement for certain expenses via the Executive Advantage bonus. RFG bonus can pay expenses too.Other partyType of pay the worker receives: Salary ✔ Commission Hourly Wage Piece WorkLump Sum✔ Other (specify) Performance bonuses: Resources for Growth and Executive AdvantageIf type of pay is commission, and the firm guarantees a minimum amount of pay, specify amount $ .Is the worker allowed a drawing account for advances?If “Yes,” how often?Specify any restrictions.Yes ✔ NoWhom does the customer pay? ✔ Firm WorkerIf worker, does the worker pay the total amount to the firm? Yes No If “No,” explain.Does the firm carry worker’s compensation insurance on the worker?Yes ✔ NoWhat economic loss or financial risk, if any, can the worker incur beyond the normal loss of salary (e.g., loss or damage of equipment,material, etc.)? Agent is expected to invest significant cash in a business as if it were his own. Allstate can terminatecontract with a 90 day notice without reason. It effectively controls the disposition of the business and can deny sale.Form SS-8 (Rev. 11-2006)30 — Exclusivefocus Fall 2009

Form SS-8 (Rev. 11-2006)Page 3Part IVRelationship of the Worker and Firm12List the benefits available to the worker (e.g., paid vacations, sick pay, pensions, bonuses, paid holidays, personal days, insurancebenefits). Executive Advantage and Resources for Growth bonuses.Can the relationship be terminated by either party without incurring liability or penalty?✔ YesIf “No,” explain your answer. 90 day written notice requiredNo345678910Did the worker perform similar services for others during the same time period?If “Yes,” is the worker required to get approval from the firm?✔✔YesYesNoNoDescribe any agreements prohibiting competition between the worker and the firm while the worker is performing services or during any laterperiod. Attach any available documentation. Agent prohibited from selling competing products while an Allstate agent.Agent/worker must also sign a non-compete agreement which survives the contract for one year.Is the worker a member of a union?Yes ✔ NoWhat type of advertising, if any, does the worker do (e.g., a business listing in a directory, business cards, etc.)? Provide copies, if applicable.Yellow pages, business cards, direct mail, Internet, newspaper.If the worker assembles or processes a product at home, who provides the materials and instructions or pattern?N/AWhat does the worker do with the finished product (e.g., return it to the firm, provide it to another party, or sell it)?N/AHow does the firm represent the worker to its customers (e.g., employee, partner, representative, or contractor)?As an Allstate Exclusive Agent or as an "agent"If the worker no longer performs services for the firm, how did the relationship end (e.g., worker quit or was fired, job completed, contractended, firm or worker went out of business)? COMPLETE ONLY IF YOU ARE NO LONGER AN ALLSTATE AGENTPart V For Service Providers or Salespersons. Complete this part if the worker provided a service directly to1customers or is a salesperson.What are the worker’s responsibilities in soliciting new customers? Implement marketing campaigns, many times at the behestof company management. Must produce certain quotas or contract can be terminated.2 Who provides the worker with leads to prospective customers? Agent/worker and company-supplied leads.3 Describe any reporting requirements pertaining to the leads.manager.Results from Allstate-supplied leads must be reported to45What terms and conditions of sale, if any, are required by the firm?Are orders submitted to and subject to approval by the firm?All terms and conditions are set by Allstate.✔ Yes No6 Who determines the worker’s territory? Allstate determines which states' agents are allowed to be licensed7 Did the worker pay for the privilege of serving customers on the route or in the territory?If “Yes,” whom did the worker pay?Yes ✔ NoIf “Yes,” how much did the worker pay? $8 Where does the worker sell the product (e.g., in a home, retail establishment, etc.)?Allstate-approved offices.Most often, policies are sold one at a time in9 List the product and/or services distributed by the worker (e.g., meat, vegetables, fruit, bakery products, beverages, or laundry or dry cleaningservices). If more than one type of product and/or service is distributed, specify the principal one. The principle line of insurancessold are personal line property/casualty policies, (primarily automobile insurance).10 Does the worker sell life insurance full time?Yes ✔ No11 Does the worker sell other types of insurance for the firm?If “Yes,” enter the percentage of the worker’s total working time spent in selling other types of insurance✔ Yes90No%12 If the worker solicits orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similarestablishments, enter the percentage of the worker’s time spent in the solicitation N/A %13 Is the merchandise purchased by the customers for resale or use in their business operations?Describe the merchandise and state whether it is equipment installed on the customers’ premises.Yes ✔ NoSignHere Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and to the best of my knowledge and belief,the facts presented are true, correct, and complete.Type or print name below signature.Title Exclusive AgentDate Form SS-8 (Rev. 11-2006)Fall 2009 Exclusivefocus — 31

Every customer has their owngreat reason for choosing Vertafore.Some appreciate that our family of solutions is so interconnected.Others are fans of the efficiencies they’ve gained with proven solutionslike the AMS 360 agency management system. And they’re all happy thatVertafore takes the time to help pinpoint and tailor the products thatare the perfect fit for any business—big or small, agency or carrier.We’d love the opportunity to help your business unleash its full potential.Find out more at iheartvertafore.com.“Vertafore makes things interconnect.I see that as a big advantage.Johnmichael P. MonteithChief Information OfficerParker, Smith & Feek”© 2009 Vertafore, Inc. Vertafore, the Vertafore logo and design, Unleash your potential, and the Vertaforetrademarks listed are owned by Vertafore, Inc. Other trademarks belong to their respective holders.32 — Exclusivefocus Fall 2009

“AMS 360 frees us up. I love thatour agents have more time to sell.Susan HendricksVP/Office ManagerHart Insurance Center”AIM AMS 360 ®BenefitPoint ®CBDDoc ClientConnect ®Compliance Express FinancePro ®ImageRight ®InStar Phoenix PL Rating PolicyRater PremiumBill Prevail Network ®Prime Producer Express Producer Manager Producer Plus ®ReferenceConnect Sage ®Sagitta ®SirconEDGE TransactNOW ®TransitServer Fall 2009 Exclusivefocus — 33

state companies.• Detailed income and policy countsfrom NFIP, Northeast Agencies and anyother sources of policies that do not showup on CSRP• Zip code audit for number of policiesin each Zip code. A serious buyerwill want to know the areas where mostof your policies are written.• Copy of current lease.• A listing of lenders, including contactinformation, who are willing to financeAllstate agency purchases.• It may also be helpful to contact theunderwriter and discuss the sale of youragency before you have a buyer. You maybe able to send them your CSRP and requesta sample cash flow for a buyer.• Any other information about youragency that will help identify the potentialwithin the agency, such as policy andprocedure manuals, staff job descriptions,staff history and production levels, etc.• A complete audit of the entire bookof business should be kept separately inthe event it is needed prior to closing.Suggested Departure Checklist• Professional AdvisorsBe sure to involve your accountantand attorney in this process prior toclosing the sale. The contract shouldestablish the allocation of the proceedsthat will determine the appropriatereporting procedures on yourtax returns.• Extended Coverage E&OInsurance:Your coverage ceases on the datethat your EA Agreement terminates.You then are entitled to anautomatic one year period from thedate of termination to report anyclaims. For an additional premium,you can purchase an extension ofyour E&O coverage. This is sometimesreferred to as an “E&O Tail,”but is more properly called an ExtendedReporting Period policy. Youcan either buy the five-year plan orthe lifetime plan. While the extendedpolicy is not mandatory, NAPAAhighly recommends that sellers buyit. The limits for the Extended Reportingpolicy will be the same asthe limits purchased in the last policyperiod, so plan ahead. If you optto purchase the extension, you mustsend a completed “ERP ElectionForm” with payment to CalSurancewithin 60 days of the termination ofyour Allstate agreement. To contactCalsurance by telephone, call (800)745-7189.• E&O Insurance cancellationYou may also want to notify Cal-Surance of your termination. Thisshould be done in writing. Be sureto include the effective date of yourtermination and ask for a refund ofthe unearned premium of your currentpolicy. We know of at least oneagent who successfully received arefund on his E&O policy, so it’sprobably worth pursuing. To readhis story, please see One Agent’sE&O Experience in the fall 2008issue of Exclusivefocus magazine.• Securities RegistrationYou should file form U5 to terminateyour registration. The AFS RegionalCoordinator should file thisfor you. You will then receive a letterfrom Allstate accepting the terminationand advising that you have twoyears to either move the license toanother firm or reinstate it.• Dissolve your CorporationCheck with your state to determinethe requirements.• Office SpaceIf you are leasing, contact the landlordto subcontract your lease. Obtaina letter from the landlord acknowledgingtransfer of lease to thenew agency owner. If you own thespace, be sure to secure a lease fromyour buyer.• Customer filesMost states require that you maintaincustomer records for a minimum ofthree years. If you release your customerfiles to your buyer, you maywant to have him sign a release assumingresponsibility, and grantingyour access to the records in the eventthe department of insurance requestsinformation from you.• Your Allstate ContractYour contract expressly incorporatesseveral documents – “as they may beamended from time to time.” Accessto these documents is limited to “active”agents via the Allstate Gateway.We recommend that agents save eachof the following PDF files from theGateway to your hard drive, flash driveor compact disk for future reference:R3001 Supplement, R3001 EA IndependentContractor Manual, R3001Reference Guide, and the AllstateAgency Standards. This will be yourlast opportunity to access and preservethis part of your contract. In addition, ifyou do not have a copy of your signed,executed R3001 Agreement, we recommendthat you contact Human Resourcesprior to your termination dateand ask for a copy. It is doubtful that itwould be given to you at some point inthe future if you were to need it.Should I Considera Structured Sale?Regardless of future changes to thecapital gains tax rate, the sale of an agencythat results in a lump-sum payment to theseller could likely subject the seller to theAlternative Minimum Tax, which is higherthan the current capital gains tax. Taxpayersmust compute the amount owedunder the “regular” and AMT systemsand are liable for whichever is higher.Consequently, sellers may want toconsider what is called a structured sale.The structured sale allows you to spreadthe receipt of the sale proceeds over time,thereby avoiding the higher AMT taxcalculation. Your accountant will be ableto give you an approximation of the differencein taxes between receiving proceedsin a lump-sum and those receivedvia a period payment option.The following article, titled StructuredSales Are Now Being Used to Safely DeferCapital Gains Tax, explains the basicmechanics of a structured sale. This arrangementmust be set up prior to theclosing of the sale. You will not be able totake this option after you have receivedthe proceeds directly from the buyer.36 — Exclusivefocus Fall 2009

technology tipsIs VoIP Right for Me?How to Find the Best Fit for your agencyBY JACKIE FUNKSmall business owners are facingdaunting challenges across theboard. No one knows where the economywill be a year from now. That unpredictability,combined with a credit crunchthat is hitting small businesses particularlyhard, has small companies minimizingcapital expenditures and hunkeringdown to “just make it through.”Many Allstate agents, who are facingthese same challenges, are investing everyavailable resource into their businesses toensure survival. With competition forcustomers becoming stiffer by the day,it’s more important than ever to buildup your agency to look and sound like a“bigger” business. To facilitate these newstrategies, many agency owners are takinga fresh look at the way their businesshandles day-to-day communications.In a robust economic environment, traditionalphone services are rarely the bestfit for a small business. In tighter times,the consequences of this poor fit becomeeven easier to see. Traditional phone servicecan hurt a small business’s prospectsfor growth or survival by draining moneyand hampering productivity. Small businessowners who are looking to squeezeevery last measure of savings, efficiencyand productivity from all of their officesystems can ill-afford the drawbacks oftraditional phone service:• Cost. The high cost of a full-blownpremise-based PBX network with powerfulbusiness communication featuresputs it out of reach for most small companies.That fact alone forces small businessowners to choose between affordabilityand functionality. The choicemany end up making is to start theircompanies with a few basic lines fromthe local phone company, which typicallycost more and offer only limitedfunctionality.• Complexity. Traditional, premisebasedPBXs require a business to purchase,install, and maintain equipmenton-site, adding a layer of complexity thatsmaller companies can’t always manage.• Inflexibility. As a company grows, itcan be hard to make a traditional phonesystem grow along with it. Adding a newoffice means adding a new phone system.If the new office is geographically distant,that new phone system could comefrom an entirely different provider withan entirely different feature set.• Limited functionality. The more acompany grows, the more critical advancedcommunication and productivity toolsbecome to its success. With traditionalphone service, many of these tools remainunavailable to small companies unless theyupgrade to a costlier full PBX.VoIP: Changing the Way SmallBusinesses Do Business.Small businesses no longer have to“make do” with phone systems that were38 — Exclusivefocus Fall 2009

designed for fundamentally different enterprises.Hosted Voice over IP (VoIP)networks are changing the way smallbusinesses respond to today’s communicationchallenges. VoIP technologyuses the Internet to transmit voice datainstead of traditional phone lines. Anybusiness with a quality broadband connectioncan use hosted VoIP to get a feature-richphone system without the costor management hassles of traditionalphone service.While there are premise-based VoIPsystems, most small business opt for ahosted VoIP solution where the equipmentand service management is hostedexternally by the VoIP provider. As Allstateagencies continue to evaluate theiroptions with the move to Agent OwnedTechnology, hosted VoIP is worth seriousconsideration. With hosted VoIP,Allstate agents can get:• Full PBX functionality at a lowercost. Today even small businesses needsophisticated communication tools.Hosted VoIP delivers business-classphone service at prices affordable tosmaller companies, allowing them toenjoy features such as automated attendants,extension dialing, voicemail andadvanced mobility features.• Seamless mobility. With VoIP,phone service is delivered over the Internet,allowing business owners and workersaccess to the corporate phone systemanywhere they go. A VoIP system forwardscalls automatically and transparently.• Unified multi-site communications.Businesses of all sizes struggle tomaintain a consistent image and levelof service across multiple offices. Withtraditional phone service, multiple officesmean multiple phone systems, oftenwith differing features and service plans.Hosted VoIP provides one corporatephone system that can encompass manyoffices and provide consistent featuresand flexibility regardless of location.• Easier remote work and telecommuting.Allowing employees to workremotely is one way small companiesare growing business without growingoverhead. Hosted VoIP makes it easy foremployees to work from home or remoteoffices, while still maintaining the impressionthat they are working from theprimary corporate office. Incoming callsare easily routed from an organization’smain number to individual employeephones, regardless of location.• Ease of management. With hostedVoIP, there is no complicated, onsiteequipment to manage or maintain.Companies no longer need to dedicateessential resources to managing businesscommunications.• Extensive productivity-enhancingfeatures and flexibility. Hosted VoIPleverages Internet technology to givesmall businesses access to a wide range ofinnovative communication capabilities,including many that are unavailable withtraditional phone service. With hostedVoIP, for example, small businesses canmaintain call history, utilize reporting tomanage call activity, take advantage ofvirtual transfer capabilities that allow usersto access VoIP call controls on theirmobile phones and more. These featuresallow users to expand their communicationscapabilities and ensure they nevermiss an important call.• Lower calling costs. SignificantFall 2009 Exclusivefocus — 39

savings can be achieved with free localand long distance calling, a benefit ofmost unlimited calling plans. Additionallong-term savings come into play withfree inter-office dialing (through extensiondialing), which allows you to connectworkers in remote offices or teamsthat are geographically dispersed. Andmost VoIP providers don’t charge extrafor features such as voicemail, three-waycalling and fax services.• No equipment to purchase or maintain.With hosted VoIP, the service providerhosts and maintains the networkand equipment, not the customer. Phonesare the only equipment needed to take advantageof a hosted phone service.Do Your Homework Before YouMake the Move to VoIP.Every vendor is not created equal. Asyou seek a provider partner, be sure to developa thorough checklist and comparefeatures, vendor viability, pricing and experienceworking with Allstate. Beforesigning on the dotted line, every agencyconsidering a switch to hosted VoIPshould carefully evaluate their needs:• Profile your company. How manyemployees do you have? How manyoffices? How many remote or mobileusers will you have?• Profile your calling. What is yourcurrent mix of internal, local, longdistanceand international calls permonth? Number of outbound vs.inbound calls? Do you make conferencecalls?• Profile your current phone system.How many lines do you have? Whattype of phones do you use? Do youneed to keep any of your existinglines?• Profile your current broadband connection.What is your bandwidth?How many lines do you have? Whois your current supplier? What isyour current network load? Howmuch unused bandwidth is available?Will you need to upgrade yournetwork?• Make a wish list. Do you need an 800number? Do you have a receptionistor will you need an auto-attendant?Do you need to integrate with emailor other systems? Do you need a callcenter? Voice menus? Will you needto scale your system as you grow?What service level agreements willyou need?• Can the vendor automatically “rollover” to corporate for after-hourscoverage?• Does the vendor have a track recordof working with Allstate agents duringthe transition to Agent OwnedTechnology?• What is your budget? How muchcan you spend in total? What is yourtargeted per user per month cost?• Will you have one person responsiblefor managing the system? Or doemployees need to be able to manage itthemselves?• What type of Internet Service Provider(ISP) will you select? Cableor DSL? You will need a businessgradeservice that offers ServiceLevel Agreements and can meet bidirectionalbandwidth needs.• What kind of router should be inplace? You’ll need to purchase aVoIP-friendly router and be sureto avoid routers geared for VPNs.The most important aspect of aVoIP-friendly router is that it supportQuality of Service (QoS) andincludes port triggering.As you make the transition to AgentOwned Technology, make sure you weighall of your options carefully. Since thischange is inevitable, you might as welluse it to get up-to-speed on what’s availablein the market today and update yourbusiness communications infrastructureto something that reduces your operatingexpense while driving productivity.That way, both you and your customerswill benefit!Jackie Funk is the Director of Marketing forAptela, a leading provider of hosted VoIPservice for small and medium-sized businesses.For more information about howAptela has helped 75+ agencies through thetransition to Agent Owned Technology,please visit www.aptela.com/allstate. ContactJackie directly at jfunk@aptela.com.I Want to Help You sell More AFS!I Have Some Tipsthat Can Help You Achieve Your Expected Resultsthis Year. Learn from a Pro when You Join NAPAA.Ranked #1 in AFS Production Credit in4 of the past 5 Years.To Learn More Contact Gerry Flores(563) 564-1800GERBEAR_61@HOTMAIL.COM40 — Exclusivefocus Fall 2009

As a nationwide provider of agency capital since 2000,we have processed over $250 million in loan bookingsfor hundreds of Allstate agency owners just like you.With PPC LOAN, you can count on:They understand agent needs and do all theycan to get us the funds we need to run ourwith and fast — I couldn’t ask for anything else.”Call us today to get yourloan process started!(800) 456-2779ppcloan.comallstateppcloan.comPaul ClarkeSteven KemperKyle CrawfordRelationship ManagerTabitha ChisumAshley MarcelleClosing CoordinatorFall 2009 and Client ServicesExclusivefocus — 41

usiness/marketing tipsIncreasing Production and Efficiencieswith AutomationBY BILL GOUGHAllstate agencies are no different. Automationcan lower your overhead by increasingefficiencies, which can lead to increasedproduction and lower staffing costs.Automation is a lot easier to set up thanmost people think and your imagination,and of course your budget, are your onlylimitations. The first order of business isto determine which systems you shouldautomate in your agency and what thesesystems can accomplish for you. The moresystems you have in place, the easier it willbe for you and your staff to continue tomarket and grow your business.Key fact: Systems and automationsave both time and money and free upyour staff to do more revenue producingactivities.Take a look at your business and askyourself the following questions:• What tasks are done on a daily basisthat I can automate?• What tasks are done that I can delegateto other people?• What tasks can be eliminated entirelythat are not important?Once you have answered these questions,take action and start to automate,delegate or eliminate!As Allstate agents, we are accustomedto change. Some agentswelcome positive change and others resistit, mostly because change can bringuncertainty and uncertainty makes usuncomfortable. And whenever we thinkabout trying something new, there isthat tinge of uncertainty and doubt naggingat us, making us question if we aremaking the right choices. It is no differentwith automating your agency.Automation in any business is an importantkey to success, especially when it comesto growing and producing more revenues.Today we are talkingabout automation…Automation can help your agency deliverextraordinary and great service toyour clients and prospects. You will alsohave more free time to work ON yourbusiness instead of IN your business.Following are some examples of automationand how you can use each one:ART Voice Broadcast System• A quick and cheap way to reach42 — Exclusivefocus Fall 2009

thousands of clients with a recordedmessage• Use for policy reviews, thank you forrenewing messages, cross-selling yourmonoline customers, safety messages,birthday greetings, holiday messages,and whatever else you can imaginePhone Systems• Record calls for training purposes• Messages on hold that promoteproducts, services, events, gift card withquote promotions, free reports, testimonialsand more while your clients arewaiting to speak with someone• 24 hour recorded hotline so prospectsand clients who are sales resistantcan get your data without having to talkto a sales rep…and you can still capturetheir information to stay in touchEmail Systems• Bi-weekly emails to clients andprospects with helpful, but not boringinformation to make their lives easierand safer. They can also be used to announcereferral program winners, specialevents, and more• Use to welcome new customers toagency. Introduce your staff and servicesin a four-part series sent over a threeweek period• Birthday and holiday messages• Drive prospects and clients to a specialWeb site for a free report, CD or giftcard with quote optionThese are just a few of the ways youcan begin to automate your business.There are many more options availableto help you increase your revenues andfree up your time.To get started, take a few moments to sortout those things in your agency that shouldbe automated, delegated or eliminated. Onceyou’ve made your choices, you can begin toimplement the changes. You will be amazedby the immediate results and wonder whyyou didn’t start sooner. Remember the oldsaying “Money Loves Speed!”After you have implemented the initialset of changes, you’ll want to continue tore-evaluate and refine your operations tosee where you can tweak and improveeven more. This is done by repeating thesame “automate, delegate, or eliminate”process. By doing this from time to time,your agency will become a well-oiled machinerunning at peak efficiency withoutwearing you out in the process.Bill Gough has been an Allstate agent since1984. He is also the President of BGI MarketingSystems, which is dedicated to helpingAllstate Agents take their agencies tothe next level of growth while maximizingprofit. He can be reached at Bill@bgisystems.com or by calling (877) 208-9649.ContractTerminated?Go to page 59Fall 2009 Exclusivefocus — 43

usiness/marketing tipsCrisis Management:Preparing Your Customers for the WorstBY PETER KUSTERERWhen it comes to recovering froma life event, or a catastrophicinterruption in lifestyle, where you turnfirst can make a difference. In the caseof a major casualty loss, the most urgentneed besides finding safety and shelteris to begin the process of itemizing yourpossessions and determining their value.Allstate agents have done a good jobof educating the public to the need toprotect their possessions from loss ortheft. In years past, Allstate agents wouldstress the importance for their customersto complete a “household inventorychecklist.” Oftentimes, Allstate agentswould help their customers complete thistedious, but necessary task. Other agentsadvocated taking photos to keep with theinventory lists, and some even offered tostore the lists and photos in their customers’files to make sure they would notbe destroyed. In the late 80’s and early90’s, a new inventory technique becamepopular – the video inventory.Today things are much different,thanks to the Internet. But the age-oldproblem of customers not keeping upwith cataloging their assets in a timelyfashion still persists. As we know, whencustomers maintain adequate policies andcoverage, peace of mind is assured. However,they should never be allowed to becomecomplacent because an unexpectedevent can disrupt an otherwise peacefulstate of mind. Here is where preparationand planning should take hold, but it isoften overlooked, or left to be addressedlater. To be sure, no one plans to procrastinateover such issues, but busy lifestylescan make an otherwise simple task morecomplex.A change in lifestyle can be equally disruptive.A move to a new area or locationbrings with it an unsettling condition. Socan the addition of family members, orrelatives. As we have seen recently, manyfamilies are now experiencing multiplegenerations under one roof.This change not only brings a lifestyleadjustment, but the need to combinehouseholds or add new furnishings tomake living easier for aging parents orfamily members with limited mobility.In those cases where elder care is introducedto the household, Caring.com isan excellent resource for information tohelp make such transitions easier.Keeping insurance coverage and protectionup to date, along with adequatevaluations, takes on a completely newmeaning with these lifestyle changes.Other policies in the form of personalliability, life insurance, annuities, as wellas other long-term planning vehicles forprotection and peace of mind may be required.The Allstate agent is often consideredthe primary resource of informationas well as a trusted advisor in timeof need.Many businesses and other corporateentities practice crisis management,which is the planning of actions to betaken in a crisis situation. This samekind of planning can be beneficial to theaverage homeowner. Working closelywith their Allstate agent, the insured canbring together those areas of their workand life balance that would be most adverselyaffected by a loss, or theft.Items within the home and surroundingarea may become the first tier of planning.Next are the more significant assetsfor coverage such as the home itself, oneor more autos, or other recreational vehicles.The same process should be usedfor seasonal or vacation homes. It is important,however, that your customersunderstand that crisis management planningshouldn’t end here because there arestill things they may have overlooked,such as immunization records, prescriptions,other healthcare documents, birth44 — Exclusivefocus Fall 2009

and marriage certificates, passports, etc.Think in terms of the softer side of lifethat is more likely to be managed dayto-dayin digital form, either online oron a computer, but which needs to bereproduced in printed (paper) form fromtime to time. Just as the State Departmentrecommends a copy of your passportwhile traveling, it is wise to havedigital images stored in a secure mannerthat can be printed later.As you can see, pulling together a crisismanagement plan for your home requirestime and attention to detail. Forsome people, taking a video with runningcommentary is one way of documentingyour possessions. However, this methodlacks the necessary detail if you cannotproduce the original receipts, many ofwhich are often discarded shortly afterpurchase. Others may be more detailedwith individual photos, or scanned imagesof documents stored on their laptop ordesktop computer. Better, but the storageon a computer can get unwieldy if youdo not adopt a naming convention or description,and proper folder storage.The use of simple word-processingsoftware or spreadsheets can help builda better digital record. There are a numberof templates to follow, that are freeor available at a nominal cost. With theproper discipline of keeping this up-todate,and a uniform method of storage,you can develop a repository of informationand copies for backup purposes. Thisis one step closer to a plan that will holdup under a variety of circumstances.Personal finance software applicationshave also caught on to the need to catalogthe possessions of individuals andfamilies. Many now offer a home inventoryas part of the software application.This serves a two-fold purpose. Addingthis information to the balance of yourfinances can offer a more complete pictureof net worth. The other benefit isa useful inventory for replacement at atime of loss.More complete and better designedsoftware applications are beginning toemerge. Not only do they incorporate thetraditional home inventory component,but add the equally important functionalityto capture images and information.A select few run on a variety of platformsand offer both online and offline (desktop)use. There are even some that incorporateseamless backups to online storagein case of loss of the original data.As these various software applicationsemerge, they present an opportunity forthe Allstate agent to help their customerprepare a more complete crisis managementplan. With software in hand,Allstate agents can assist customers incataloging their possessions, establishvaluations, and point out deficiencies inpolicy coverage. From an ongoing perspective,software that can be providedto customers by their Allstate agentsbecomes a permanent reminder of whoto call when changes or additions occur.Each time the customer uses the software,the agent’s name and contact informationpresents itself along with handylinks to the agent’s Web site, or a requestfor quote.Obviously, software cannot replace thepersonal interaction that has built thetrust and confidence between the Allstateagent and their customers. But softwarethat extends the reach of the agentin a positive and productive way for theWhen it comes to the forcesof nature, and you need tograb your belongings andmake a run for it, are youready to “Grab-N-Go”?The My Grab-N-Go software offersconsumers tabbed sections for storage ofpersonal information in an intelligentdatabase. The stored information includesSafetyNet Services, LLCinformation@mygrabngo.comwww.mygrabngo.comcustomer can bring untold benefits toboth parties. With regular use of agentsuppliedsoftware, it becomes easier forthe customer to spot coverage deficienciesand areas of vulnerability. This newawareness can lead to more savvy customersand more policy upgrades.Allstate agents who are seeking newand better ways to improve their AgencyLoyalty Index (ALI), retention ratios andnew customer growth, now have a vehicleto ensure lasting relationships and increasedbusiness. Rather than a reflectivethought from direct response marketingor traditional advertising, software runningon customer desktops will serve as aconstant reminder of who to call wheneverinsurance related needs arise.Peter Kusterer is vice president of sales &marketing for SafetyNet Services, LLC,home of My Grab-N-Go software. MyGrab-N-Go was designed with Allstateagents and customers in mind. Formore information about how My Grab-N-Go can help your agency, please visitwww.mygrabngo.com, or send an email toinformation@mygrabngo.comcategories for personal details, property and assets, medical andhealthcare records, as well as any pertinent information to file insuranceclaims, or keep an eye on their personal possessions.The My Grab-N-Go interactive platform delivers vendor messages,promotional product offers, or other information from the Allstate agent,for higher customer retention and new business opportunities.Fall 2009 Exclusivefocus — 45

• Consultative credit decisions:You’ll want a lender that considers andunderstands every facet of your agency,including all of your agency’s assets andpotential – one that looks that the “bigpicture.” A lender with an in-depth unfinancetipsTiming is EverythingBY TOM SANDERSannounced recruitment campaigns fornew agency owners in more than halfa dozen states since April, according toan article by Daniel Hays posted onlineat www.property-casualty.com/News.Based on the company’s aggressive hiringefforts, it is clear that a major expansionplan is underway.What about you? Have you beenthinking about an Allstate expansionplan of your own? If so, who you obtain aloan from can be just as important as thetype of loan you get. Consider these issueswhen you’re assessing different Allstatelending sources:• Accessibility: While you may beable to find a loan on a toll-free hotline,through a Web site, or with a businesscredit card, but the convenience couldcost you later. And who will you talk toonce the ink is dry and a problem or additionalneed comes up?Even just thinking about buying anAllstate agency or refinancing yourown Allstate agency at this time mayseem like a crazy notion. However, financialexperts are suggesting this maybe a terrific time.“Despite the economy, if you approachthe market correctly, it truly is an incredibletime to buy a business because it is abuyer’s market right now,” according toRichard Parker, author of How To Buy AGood Business At A Great Price. “Havingup-to-date knowledge is the key to successfor today’s business buyer.”A Silver Lining?There are “signs of progress on theroad to economic recovery,” according toBusiness Week’s Business Outlook ( June22, 2009). The Index of Small BusinessOptimism was up by 2.1 points in Mayto 88.9, “still below its historical averageof 100, but headed in the right direction,”according to the NFIB Small BusinessEconomic Trends report ( June 2009).This can be an excellent time to buyan agency or refinance your own Allstateagency, especially when you find adependable source of financing you cantrust, which is no small task in today’smarket. The Small Business Administration’s7(a) loan program has slowedconsiderably. Large banks are reluctant,or are not in a position to lend moneyfor small business purchases. And overallconfidence in the market is still shaky.So where’s the silver lining? It is with thelenders that focus on Allstate agencies.The prospects for Allstate agents lookextremely good. For starters, Allstate has• Wide range of capabilities: Yourfinancing needs may be simple and relativelyeasy to satisfy now, but in the futureyou could need more sophisticatedfinancing services for future challengesor opportunities.• Sizeable resources: A successfulAllstate agency can grow more rapidlythan you expect, and the need for additionalfinancing support will expandwith the business. You can’t afford tobe limited by your lender’s size, lendinglimitations or lack of knowledge aboutyour business.46 — Exclusivefocus Fall 2009

derstanding of your agency can look pasttemporary aberrations to make informeddecisions. Do you need help with negotiatingtips, the structure of a sale, apurchase agreement or agency valuation?Keep in mind that not all lenders areequal in their knowledge of the Allstatebuy/sell process. Many only want to loanyou money.• Commitment: The movement ofinterest rates and the relative health ofmarket sectors can make lenders eagerto offer cash one moment and reluctantthe next. You should seek a lender whois committed to supporting your Allstateagency, regardless of the fluctuating economicclimate.Gauging Loan FlexibilityIt is also important for your lender tohave enough flexibility to adapt creditterms to your agency’s individual circumstances.You don’t have to settle fora one-size-fits-all program that, in thelong run, could hinder your progress.Your financing program should accommodatethe amortization terms, prepaymentterms, interest rate, range of useand the loan configuration that best fityour needs.For example, a short term loan maybe appropriate for restructuring debt,financing an equipment purchase, additionalstaffing or a move. However, if anAllstate acquisition or merger is in yourbusiness plan, a longer term loan willprovide additional cash flow for marketingand staffing to support your Resourcesfor Growth (RFG) objectives. Whatif your agency has periodic high cashbalances? Could you use these to prepayyour loan and reduce interest costs?Not all agencies have the same cash flowprofiles and not all need the same loanfeatures. Also, some lenders have unfavorableprepayment penalties.By taking the time to assess your agency’ssituation and evaluating the lendingoptions available to you along with thecharacteristics of the lender, it may bepossible to choose a loan that’s flexibleenough to meet your current and evolvingneeds.Tom Sanders is a Vice President at CapitalResources and a 22 year veteran of theinsurance business. He has extensive lendingexperience with Allstate agencies. Thisincludes knowledge of the processes of evaluation,negotiation, sale structuring andtailored financing. Visit www.CapitalResources.comor call (866) 523-6641. Sendemails to tsanders@CapitalResources.com.Need Help Selling AFS?Learn from a ProWhen You Join NAPAAGerry Flores was Number #1 in AFS Production Credit 4Times in the Last 5 Years. After 37 Years as an Allstateagent, Gerry retired last year and now wants to help yousucceed. Receive some good tips when you join NAPAA.InsuranceProfessionalsIS IT TIME TO BECOMETHE OWNER OF YOUROWN INDEPENDENTINSURANCE AGENCY?!* Are you locked with a captive andall of the mounting restrictions?* Are you tired of trying to write thebusiness ‘they’ want you to write?* Are you just tired of workingfor someone else?IF YOU ANSWERED ‘YES’TO ANY OF THESEQUESTIONS,THEN IT’S TIME TOCONTACT EQUITY ONE!Our Global GreenInsurance Agencieshave access to: Multiple Carriers forEVERY Insurance Need Software Support State of the Art AgencyManagement System Bonus ProgramCall or Email us todayfor the Opportunity ofa Lifetime!636-536-5005 orToll Free 877-452-5476ask for Jeff Wilsonjwilson@equityonefranchisors.comVisit us online to see ourgrowing list of carriersGlobalGreenInsuranceOnline.comTo Learn More ContactGerry Flores at (563) 564-1800or at GERBEAR_61@HOTMAIL.COMTravelers Insurance Company's2008 Agency of the YearFall 2009 Exclusivefocus — 47

Length of retirementThere is the uncertainty how long yourretirement is going to last. The life expectanciesof Americans have been risingsteadily over the last twenty years. This iscreating concerns that you could outliveyour financial resources creating a needto mitigate the longevity risk.preparing for your retirementA Refresher on the Basic Aspectsof Financial Retirement PlanningWhen you think about your retirementyou probably have anumber of concerns. In order for you to 2,000.00optimize the process it is best to explore 1,800.00the most important aspects of financial 1,600.00planning as early as possible. Following 1,400.00are several key factors that have the greatestimpact in preparing for retirement:1,000.001,200.00800.00600.00400.00200.000.0BY MARKUS BRUDERERyr.1 yr.2 yr.3 yr.4 yr.5 yr.6 yr.7 yr.8 yr.9 yr.10Inflation-Adjusted CostRegular IncomeWhere do you plan to retire?There may be a big difference in the costof living depending on whether you are retiringin one of the large metropolitan areassuch as New York City or somewhere else.Real estate prices, rents, transportation,utilities and cultural opportunities couldhave a big impact on your expenses, dependingon how you answer the question.Distributions from yourPension Plan, 401(k) plan orIRA account(s)The determination of opting for a partialor complete lump sum distributionor a regular pension benefit depends onyour income sources. In addition, a carefulevaluation should be made to take theeroding purchasing power of future inflationon a regular pension into consideration(see chart below for an illustrationwhich assumes income rising at a slowerpace than inflation).Owning or renting yourResidence(s)There may be advantages to eitherowning or renting your residence dependingon mortgage expenses, maintenancecosts, possible tax considerations,rents, etc. A secondary residence, if rentedout occasionally, might produce somesupplementary income offsetting costs.However, an analysis about the optimaluse of capital may be necessary.Income and ExpensesA careful analysis of all your incomeand expenses should be conducted, takingchanges upon retirement into consideration.Some expenses may not godown as much as anticipated and some,such as travel, may actually increase. Incomecould come from sources such asinvestments, rental of property holdings,annuity payments, etc.Health CareIs public health care available where youplan to retire? What levels of health careare you looking for and are there cost consequences?Is health insurance needed tocover such costs? Besides these immediatehealth insurance needs, long-term careshould be an additional consideration inyour financial retirement planning.Insurance needsAs Allstate agents, you are well-versedin this area. When planning your retirement,however, your needs and exposuresto risk may change. Make certain thatyou review your auto, home, umbrellaand life insurance policies every now andthen to make sure your policies are up todate. This is especially true with life insurancepolicies, as beneficiary designationsmay need changing periodically.Money TransfersA system to facilitate money transfersfrom one banking institution to another,possibly in different geographic locations,should be evaluated to avoid highcosts for such regular transactions. Incase of currency restrictions, alternativesneed to be explored.Financial PlanA solid overall plan for supplemen-48 — Exclusivefocus Fall 2009

tal investments should be developed orreviewed and possibly adjusted if one isalready in place. A re-evaluation to makesure that needs and objectives as well asrisk levels and tolerances are being effectivelyaddressed may be necessary.The need for current income and capitalappreciation may have to be reappraisedkeeping income sources, purchasingpower and possible inflation in mind.Investment Account(s)Taxable and retirement investment accounts,such as 401ks and IRA rollovershave been very volatile over the last twoyears. First they fell precipitously betweenOctober 2007 and March 2009,but today they seem to be enjoying asubstantial recovery. Different sectors ofthe market were affected in various ways.Banking and Financial companies wereespecially hard-hit as a consequence ofthe sub-prime crisis and subsequentcredit squeeze. Pharmaceutical and insurancecompanies have become thefocus of the current health care debate.As a consequence, the outlook is fraughtwith uncertainty. Concerns about a possibledouble dip recession or a recoverywithout creating new jobs is holdingback expectations.Not only have the stock exchange marketsbeen on a roller coaster, but interestrates have come down to historically lowlevels, creating the potential for losses ifinflation should pick up. The fear of inflationhas been exacerbated due to concernsover the projected budget deficitsand the substantial additional nationaldebt needed to finance it.International markets are influencedby the uncertainties of how severe the effectsof the U.S. recession will be on othercountries. The U.S. Dollar exchangerate could have a substantial impact.AnnuitiesYou may have looked at annuities andconcluded that variable plans representtoo much risk for you because the underlyinginvestment options can experiencevolatility similar to that of the financialmarkets, which, of course, negatively affectedso many investment accounts overthe past two years.Fixed annuities, on the other hand, offerpredictable, guaranteed payments forlife. This not only alleviates the uncertaintyover your life expectancy, but alsoeliminates market risk at a time whenyou are dependent on investment returnsfor your regular income.The problem with fixed annuities isthat there are embedded costs, making itdifficult to make side-by-side comparisonsof the various plans.In many instances, it may be beneficialto discuss all these issues with a financialadvisor to bring them into proper balance,reach an optimal outcome and work towardsa long and pleasant retirement.Markus Bruderer is vice president ofUNFCU Financial Advisors. He hasmore than 20 years of private bankingexperience domestically and in Europe.Prior to joining UNFCU, he was withBank Julius Baer & Co. Ltd, N.Y. andDeutsche Bank, N.Y. He can be reached byphone at (212) 324-3902 or by email atmbruderer@unfcuadvisors.com.Income for life!Sound good? We thought so too. Which is why we’re now offeringthis service to NAPAA members. Introducing, Income Solutions ® –a retirement annuity program created specifically to help youmaintain a reliable, lifelong revenue stream.Learn more about this program and other innovativesolutions at the RetirementSolutions website:www.EZRetirementSolutions.com/NAPAARetirementSolutions Innovative solutions for today’s retirement income challenges.© 2008, UNFCU Financial Advisors LLC, a United Nations Federal Credit Union owned company.EZRS_NAPAA_HalfPg2.indd 19/1/09 10:05 AMFall 2009 Exclusivefocus — 49

office solutionsHas Your Business Paid Thousandsof Dollars for Something it’s Never Used?Imagine at your office that an additionalroom has been discovered hiddenbehind some wall. It is space that youhave been paying for, for years. And nowthat it’s been found, this space is freeto use at no additional cost. Would youuse it? Well, of course you would. Whywouldn’t you use something that you arealready paying for that is right there andreadily available?Sorry we cannot provide you a freeroom, but it is almost as good. Actually,what we are talking about is a physicalpiece of office equipment. This piece ofoffice equipment is already being paidfor, is extremely powerful and if usedproperly, could create that “hidden room”referenced above.Well, what is this amazing thing? It’sthat boring copier sitting in the cornerof your office. Sure, what we are talkingabout here is not something dramatic orflashy and perhaps you find the subject ofsimple efficiencies and cost savings a bitboring. But the fact is that many copiers,including some manufactured by Sharp,Xerox, Panasonic, Kyocera, Lanier, NEC,OCE, Saving, Toshiba, Ricoh, Canon,Copystar, Hewlett-Packard, Ikon andKonica-Minolta, have the ability to scandocuments. This means you probably areable to take the reams of paper documentsthat exist throughout your officeand scan them into PDFs. There are atleast a couple of good reasons to start thisprocess in your Allstate agency. First,you’ll be able to reclaim the space in youroffice that is now occupied by volumesof paper and filing cabinets, thereby givingyour office a sleek new look. Second,you’ll be hailed as a good corporate citizenfor “going green.” Third, your efficienciesshould dramatically improve dueto fewer misplaced files and documents.You’ll get all this and so much more andit won’t cost you anything except the timespent to scan the documents.If this technology is free and alreadybeing paid for, why isn’t it being used?Or, if it is being used, are you maximizingits potential? These copiers can scan,so it cannot be related to “scanning”functionality. It cannot be related to costbecause copier companies generally donot charge for scanning. It cannot bethat businesses or organizations do notunderstand the inherent cost savings inmanaging their documents digitally.So why haven’t all Allstate agents gonepaperless? Allstate agencies are no differentthan most other businesses and organizations.Many times it is simply findingthe time to learn the process. They put offimplementation because they believe itwill entail a huge learning curve, so theyview it as an all or nothing proposition.They conclude that starting on anythingrelated to this paperless office project isinsurmountable and completely unachievable,therefore it is never started.Adapting to new methods is alwaysa bit intimidating. And the thought ofscanning a mountain of paper is overwhelming.But what if you were to startout small, such as converting your newbusiness documents to PDFs? After afew fits and starts, you’ll become familiarand comfortable with the process andeager to do even more. That’s when youcan begin to work on other documentsyou wish to convert. The secret is to proceedat your own pace, step-by-step, in acalm, deliberate and methodical fashion.Saying you want a paperless office is thesame as saying your want your businessto be more organized. The two phrasesmean nothing unless they are tied tosome specific short-term end result thatis desired. For example, a specific end resultfor organizing your business mightbe to make the accounts payable processbecome more streamlined. Or perhapsone of your objectives for a paperless officeis to scan in all your purchase ordersand be able to search for them by eithervendor name or by date. In either case,these two goals have a desired outcome.And in order to reach the desired end,you will need some approaches and strategies.A limited paperless office is immediatelyachievable, especially since youalready have the scanning capabilities.Managing scanned documents can bemade even easier with document managementsoftware products, some ofwhich are available for under $300. So,if you have a copier that can scan documents,isn’t time to start experimentingwith the process?Still undecided? Following are fourcompelling reasons why it makes senseto start now:1. It’s free – generally copier companiesdo not charge for scanning documents.2. Your copier can generally work as anetwork device, which means any staffperson can utilize it to scan documents.3. In this economy your existing staffprobably has additional time to partakein new projects.4. Paperless office solutions (documentmanagement software) can act as electronicfile cabinets to store all of thesescanned documents, eventually eliminatingthe need for an overabundance of filecabinets.What are some simple, practical paperlessoffice strategies that can be implementedright now in your agency? Howcan you get started to unleash the pentuppower of your existing office copierequipment? Start a paperless office strategyone document at a time. Rememberthat a paperless office is not a black orwhite scenario. Just because you want toreduce paper in your office, it does notmean you should aimlessly start scanning50 — Exclusivefocus Fall 2009

file cabinets full of papers for no goodreason. Just like any other project or proceduralchange, it should be thought-out,discussed, agreed-upon and put down onpaper, with the emphasis on any changesbeing incremental and phased-in. Thisapproach will not disrupt the organizationbut, instead, ensure success.Start by having a meeting with yourstaff and/or office manager. Ask themwhich documents currently exist in paperform and which of them they constantlygo back to. Ask what historical paperdocuments would create better customerservice if they were accessed via the computerinstead of the file cabinet. After justone meeting several problem documentswould have been identified. Congratulations,you have just completed step one!Next, because it has been determined aparticular document is causing pain in youragency, study it. Follow the entire processof this document, how is it created, whocreates it, how is it delivered to the customer,when does it come into your office,how does it come into the office, etc. Thisone-document-at-a-time approach willenable you to make sure your “paperless officestrategy” will be complete, incrementaland not disruptive. If you could just implementthis one document approach you willget an immediate return on any labor ortechnology costs – keep in mind that yourcost basis is extremely small.Once the document has been identifiedand the business process of this documentis clearly understood, you are ready to figureout a solution. Now get down on paperhow this process can be improved andwhat steps are necessary to complete this.Like any new project, assign someone tohead it, champion it and implement it.This is a business improvement and costreduction process. One that is simple toimplement, requires little or no additionalresources and can be done just like otherprojects in your agency.Once this document management process,or paperless office strategy, has beenadopted, you can easily correct otherinefficient document processes with thesame paperless office concepts. Or don’t,it is always up to you.Here are two examples of a companythat has adopted a successful paperlessoffice strategy and one that has not.A customer calls in looking for informationabout an order they want to place.Before they place the order they need toclarify information that existed on a documentthat is two years old. In order tocomplete the order, you’ll need to accessand review a document and then respondto the customer.Let us see how these two hypotheticalcompanies deal with this “documentrequest”.Company that has not implementedany paperless strategies and are paperbased: You advise the customer that youhave to “pull” or “locate” the documentand get back to them once it is available.You hang up the phone and the searchbegins. Once the document is locatedthe customer is called back and you tryto close the sale. The problems with thisprocess are clearly understandable.1. You had a customer on the phonethat was ready to place an order and youput them off.2. If the document they are speakingabout cannot be found you have a seriousproblem.3. If the document they are speakingabout cannot be found in a timely manneryou have a problem.4. You have to call them back. What ifthey do not return the call or take the call?5. Priorities can change. Two days laterSPEEDYSOLUTIONSthey may no longer want to place the order.6. You may have to close the sale allover again when you call the customerback.7. Customer has had time to thinkabout it and may have additional questionsor concerns.Company which has adopted a successfulpaperless office strategy: As thecustomer is on the phone you access the“document” immediately and provide thecustomer the information they need onthe phone. The sale is complete.Clearly, the second example provides thebest experience for the customer and thebusiness. The sale was seamless and efficient,unlike the experience in the first example.The question is; how will you operateyour agency in the future? Will you keepyour office staff running to and from thoseoutdated file cabinets to locate documents,or will you start taking steps to transformyour agency into the post-paper era?Adapted from an article submitted by writtenby Todd McIndoo of Speedy Solutions,a distributor of Practical Paperless OfficeProducts and Solutions. Speedy Solutions iscommitted to the supply of leading industrysolutions in the area of paperless office anddocument management. For more information,visit www.speedyscan.biz or call(800) 655-2870.Provider of Practical Paperless Office Products800-655-2870speedyscan.bizPAPERLESS OFFICE - Our flagship product Speedy Organizer can handle all of yourdocument management needs for the entire office, for just $300, that’s it! No additionalfees now or in the future.Speedy Organizer is designed with both Simplicity and Power and operates with anymake and model of digital copier or scanner that you probably already have, as well as anyMFP (multi-function printer).Simplicity of use and the power to handle all of your document management needs.Speedy Organizer is being used by thousands of client’s everyday. Automatically catalogall of your paper documents and retrieve them at any time, in seconds. Then send themanywhere you want via. Email or fax or just print a copy for normal distribution. SpeedyOrganizer does it all. So why not start to increase office efficiency today, by eliminating timewasting searches for misplaced documents. Start to save space as filing cabinets begin todisappear, one set of documents at a time.YOUR CLIENTS WILL THANK YOU, for being more productive, more efficient and withfar less mistakes. CALL Speedy Solutions today at 1-800-655-2870 to find out how SpeedyOrganizer can help you! Or, for additional product information visit our website atspeedyscan.bizFall 2009 Exclusivefocus — 51

feature“Look Ma, No Hands!”Behind the Wheel of the Allstate JuggernautWRITTEN BY A CONCERNED ALLSTATE AGENTTom Wilson’s 2010 super stretchMercedes limousine was recentlyspotted exiting the posh, gated communitywhere he resides in his multimilliondollar mansion. A close-up photo of therear bumper revealed a sticker emblazonedwith a toll-free number and thewords: “Allstate CEO onboard- How’smy driving?”To the uninitiated, this question mightsimply evoke a response based upon theskills of the person chauffeuring Mr.Wilson to and from his office. A closerevaluation of the sticker’s real meaningreveals something else altogether. It iswith a more critical eye towards the passengerensconced in Corinthian leatherand a plush hand-trimmed interior thatthe real question will be answered.Mr. Wilson’s short tenure at the wheelof the country’s second, but soon-tobethird, largest insurance company hasnot been without its challenges. Tougheconomy aside, Allstate has been steadilylosing ground to GEICO in breathtakingchunks in a highly competitive market.Possibly feeling the effects of a combinedadvertising assault from Progressive andGEICO, Allstate posted miserable salesresults for 2008. This inadvertent teamingup of two hungry competitors shouldhave been an eye-opening event for Mr.Wilson.At the Q4 2008 Earnings meeting,Robert Brock, Vice President of InvestorRelations stated, “Let me quickly[emphasis added] go through the resultsfor property liability beginning with netwritten premium. For the year we wrote$26.6 billion, a decline of about 2% from2007. The combined effect of a competitivemarketplace, particularly in autoinsurance, and a softening economy interms of auto and home sales negativelyaffected premium results. Earned premiumsfollowed the written trend, decliningabout 1% to $27.0 billion.”Mr. Brock shouldn’t be so eager toignore poor results. After all, agents areheld accountable for their corporatelyassigned “Expected Results.” It wouldonly seem reasonable that Mr. Wilsonshould be similarly held accountablefor his poor performance. But quarterlyshareholder meetings are apparently devoidof accountability as the various representativesfrom Allstate recount mostlydeclining performance results with theaplomb of a school kid skipping acrossthe playground.Year to date numbers for 2009 aren’ttrending much better as Q2 numbersshow losses due to catastrophes higher by17.2% and operating earnings at 55 centsper share as compared to $1.24 a year ago.But rather than dissect the real reasons fora lackluster performance, Mr. Wilson decidesto implement a “Loyalty” campaignthat can perhaps be best described as partinsanity and part witch hunt.During the 4th quarter 2008 earningsteleconference Mr. Wilson was asked thisquestion: “Can you talk more about stuffthat didn’t work to improve customer loyaltyover the course of 2008?” Mr. Wilsonresponds: “We have obviously had anumber of programs we have talked aboutbefore in terms of call back, getting agenciesengaged, but there is something wehaven’t talked to you about before that Ithink is very important. We have a 401(k)savings plan that is part incentive and partretirement for our employees.And the payout, there is a guaranteeand then there is some upside to it. Traditionallywe have done that around operatingearnings. In 2009 that will be on customerloyalty. So we are telling all of ouremployees that we can and must do thisand you will be rewarded for it and it has ahigh priority for us at the company.”Mr. Wilson pauses dramatically, as iftelling a 20 year employee that he is goingto yank their 401k wasn’t bad enough,52 — Exclusivefocus Fall 2009

and then delivers his ultimate message:“George [George E. Ruebenson, PresidentAllstate Insurance Co.] also has anumber of operational activities goingon, down to the individual and agencyowner level, that those people who donot treat our customers well and do notdeliver customer loyalty, will no longerbe part of the Allstate family.”Getting Rid of ThosePesky CustomersSo, let’s get this straight; Mr. Wilsonproposes to downsize or eliminateAllstate’s contribution to all employees’401ks based upon a “loyalty” factor thatmost of them have no possible controlover. Further, Mr. Wilson cautions agencyowners that the book of business eachof them fights tooth and nail to maintainis at risk if customers respond adverselyto a loyalty questionnaire designed by aHarvard business graduate who has neverseen the whites of a customer’s eyes.Apparently, the worst recession in 40years, multiple rate increases, a deterioratingbrand image, an embarrassingstandoff with the Florida insurance commissioner,intense competition and othernegative factors have absolutely nothingto do with the declining sales and saggingretention numbers. No, Home Officecan’t possibly have anything to do with,or accept any blame for, the slow death ofthe Allstate brand. Instead, the real culpritis the malcontent agency force thatpurposefully angers customers in orderto get them to cancel revenue-producingpolicies. It has been reported that severalagents in New York are actually screamingat their customers and telling them off.One California agent was seen pushing acustomer out the door, keeping him frommaking a renewal payment for a five-carauto policy. And then there was the agentin Texas who decided she had enough ofher renewal book, so she sent hate mailto all of her property customers. Yep, forsome reason known only to Mr. Wilson,the age-tested reason for building a bookof business has ceased to exist for everyAllstate agent. Somehow, someone hasconvinced Mr. Wilson that renewal premiumsare toxic to every agent.If Mr. Wilson is convinced there is adisconnect between the company’s desireto deliver superior customer careand what is actually being delivered byhis mostly newbie agency sales force, hehas only to look introspectively to seethat he is the root cause of the problem.Eschewing a hiring process that resultsin true independent contractor entrepreneurs,Mr. Wilson instead prefersinexperienced and under-funded, albeitaggressive agents. It is Allstate’s agencymodel that requires an aggressive “whambam thank you ma’am” approach to theagency sales process. Further, it is Mr.Wilson’s agency program that not onlyinduces such activity; it punishes thosewho fail to meet Allstate’s corporatelyimposed quota system called RFG.Wilson’s self-fulfilling prophecy ofdemanding agents meet quotas or befired has resulted in an aggressive salesbehavior by new agents that is counterintuitiveto providing long-term, superiorcustomer care. He then feigns shock anddisappointment at the quarterly earningsmeetings when talking to investorsabout “stuff that didn’t work to improvecustomer loyalty.” In addition to addingauto and property customers, Wilson demandsgrowth in PIF through “EmergingBusiness” or EB. Selling EB is codefor Mr. Wilson’s attempt to drive up PIFto delude investors into thinking Allstateis growing. The real fact is that EB isWilson’s equivalent to Parts and Labor.For those too new to remember, Partsand Labor was Allstate’s failed attemptto penetrate the auto warranty market.True PIF growth starts and ends withcompetent, tenured agents, period.But, what makes Mr. Wilson’s recent actionseven more counterproductive is thathe does not inspire confidence in what heis doing. First, growth is important. Thencustomer retention is important. Next,growing the agency force is important.Then he slows the hiring process by makingagency start-up requirements morestringent. Wilson has ramped up his agenttermination program for failure to meetquotas while simultaneously advertisinghe wants to grow the agency force again.Channeling sales through the Internet andthe 800 number is paramount, but then headvertises: “Call an Allstate agent.” NowEB will save the day for Allstate by makingcustomers buy policies for their golf carts.There are more examples, but for fear ofgiving the reader “whiplash” I’ll stop here.What Wilson seems to want is a competentsales force of dedicated entrepreneurswho are committed to a long-termrelationship with both their customersand Allstate. What he wants is a StateFarm/Nationwide/Progressive-type salesforce. What he wants is an autonomous,financially independent, and self-motivatedtrue “Independent Contractor”agency sales force. Instead, he has anagency force that is fearful of 90 day terminationnotices and that is unwilling totruly commit long term to investing realcapital into growing their agencies. Shotgunbursts of capital invested by newlyhired,soon-to-be fired agents is no wayto grow and sustain an agency force, letalone a dependable client base.It’s Mr. Wilson’s wayor the highwayFor about a decade now, Allstate hasattempted to implement an agent contractthat is a hybrid of 95 percent employeecontrols and 5 percent independentcontractor. (Some might argue the5 percent number is too high.) By necessity,Allstate has returned to a businessmodel it thought it perfected in the early1980s. The reason? In a word; control.Allstate’s aggressive business plan astouted to Wall Street requires there beultimate control over agents’ production.For Wilson, only through the implementationof employee-style controls can hebe assured of a certain level of projectedsales. But while market projections arefine, Wall Street ultimately reacts tosomething more definitive, like actualresults. And therein rests Mr. Wilson’scrucial reason for risking the use of anemployee scheme for his “independentcontractor” agents. Wilson promises andthe agent had better deliver.Doubtless there are complex computerprograms monitoring the daily, if nothourly, production of the over 12,000Allstate agents. Allstate has carefully categorizedagency production into variouslevels and knows literally to the dollarwhere each agency is in terms of productionand profitability. Rest assured thereare “Dashboard” programs running in thebackground of each and every agent’s of-Fall 2009 Exclusivefocus — 53

fice that can depict down to the last policywritten, what is going on in each agency.Keep in mind that the Allstate managementmodel was, and is, a control modelrather than an incentive model. When anagency fails to produce, the contract is terminated.If tapping into the entrepreneurialspirit of an agent was truly the goal ofAllstate management, then there would bea dramatic difference in both managementstyle and the agent contract. While othercompanies in the insurance industry havechanged and adapted to an incentivized employeemodel, with Allstate there has neverbeen a shift away from treating agents as adisposable commodity. With every iterationof the contract, from the days of Ed Brennan,Jerry Choate, and Ed Liddy to TomWilson’s tenure today, the agent has beentreated like a necessary evil and thereforeat some point, expendable. One only has tolook to the Canadian Allstate agent to recognizethe depth of this statement.When the commander of a RomanWarship wanted more speed from his oarsmen,he mercilessly cracked the whip andflailed them into rowing faster. In battleit was not uncommon for oarsmen to beso badly beaten that many died chainedto their stations. Those who could notrow quickly enough were often thrownoverboard to drown, being replaced by anew slave who perhaps witnessed the suddenoffloading of his “brother in chains.”Likely this is where the cliché “the beatingswill continue until the morale improves,”came from. With ancient managementtechniques like these securelyensconced in Mr. Wilson’s repertoire, is itany wonder most agents think so poorlyof their employer?2008 Exclusive AgencyRelationship Survey: AKA:Mr. Wilson’s “Expected Results”Just as Mr. Wilson imposes a reviewprocess for his “independent contractor”agents, it follows that he also shouldbe held accountable for his actions. ButCEO accountability often comes yearstoo late. Accountability sometimes comesafter a shareholder revolt, or worse, aftera government investigation into corporatemalfeasance or wrongdoing. Unlikethe agents, who the company erroneouslycalls ‘independent contractors’ andwho receive 1099s, Mr. Wilson is trulyan Allstate employee. As CEO he is ultimatelyaccountable for every aspect ofAllstate’s business operations, includingagent relations. But unlike the AgentLoyalty Index survey, whose results arebased on a minimal fraction of responses,the numbers sited below come from asurvey of a majority of Allstate agents.Providing the results as an overviewrather than the entire survey, Allstatelisted the response rates for the currentyear as compared to the previous 3 years.Clearly, a majority have responded forthe last four years, although 2008 representsan increasing level of apathy over2007 results.Year of Survey %EAs Responding2008 63%2007 74%2006 68%2005 69%As shown in the chart below, of theAllstate agents surveyed, 42% are dissatisfiedwith their relationship with Allstate,Total Exclusive Agents 2008Total Exclusive Agents 2007Total Exclusive Agents 2006Total Exclusive Agents 2005up from 22% just three years prior. That’snearly a 100% increase in agent dissatisfactionwith the business relationship theymaintain with the company that providesthem their financial security.In response to question 40, clearlyAllstate agents think something is brokenand yet to date, Allstate has donenothing to fix the underlying problem.But agents have not always been so complacent.Several years ago, agents tried tounionize. A clear signal that all was notwell between agents and management.At that time, there were multiple issuesfacing the agency force and managementwas unwilling to attempt to resolve eventhe simplest problem. Rather than addressgrievances and work to eliminatebarriers, Allstate instead sent administrativeteams to retrain local sales management.Managers friendly to the agent’splight were fired and replaced with a newcrop of bosses who would tow the companyline.As important as it is to look ahead, it is0 10 20 30 40 50 60 70 80 90“43. Overall, how satisfied are you with yourbusiness relationship with Allstate?”40. Allstate taking steps to improverelationship w agents (35% as comparedto 48% in 2007)14f. Effectiveness of communicationmethods for receiving general news andinformation about Allstate: Agency StaffNews (65% as compared to 76% in 2007)42a. Allstate making changes necessaryto compete effectively (33% as comparedto 44% in 2007)0 20 40 60 800% ------------------------------------------%Favorable ---------------------------------------- 100%Under the heading of “Largest Positive and Negative Differences”Allstate reports the 3 largest negative differences from the prior year.58%65%74%78%54 — Exclusivefocus Fall 2009

often past events that portend of things tocome. When past issues between agentsand Allstate are recounted and brought tothe fore, it is not to meant to aggravatenewly-hired agents, it is to properly putinto perspective issues and events thatshape the current business relationship allagents operate under. In as much as Mr.Wilson likes us to think he has a steady visionof the road ahead, we are reluctant togive him any substantial amount of credibilitybecause he refuses to address the issuesthat agents have faced in the past andthat continue to affect them today.This tendency to ignore agent grievancesis not a new behavior for AllstateCEOs. In the past 15 years, Allstate hashad ample opportunity to reach out toNAPAA to redress the many issues it hasraised. Wilson’s rejection of multiple lettersand postcards written to him typifythe one-sidedness of the so-called businessrelationship he claims to have withhis agents.For a business relationship to workthere needs to be, above all, communication.Clearly there is a complete lackof communication between agents andAllstate. Allstate touts the NAB as thepreferred vehicle for agent relations. TheNAB is simply an extension of Allstatecorporate ideology, with complete abdicationof true “independent contractor”business practices. Allstate directives andcorporately instituted programs do notconstitute communication. They establishimplicit control. None of the Allstateprograms, policies, practices, or businessobjectives are negotiated or incentivized.They are ultimatums. Few if any peoplethrive in a business environment profferedas independent but in reality isladen with control.To change or not to change, thatis the questionAn Allstate agent’s relationship withthe company is nothing if not unusual.Allstate views providing its agents with anexcellent brand name product as the primaryincentive for becoming an Allstateagent. Agents see the relationship as anopportunity to build a large book of businessand continued financial success. Fromday one, newly-hired agents are thrust intoan environment where they must focus alltheir time and energy on achieving certaingoals and learning the insurance business,the Allstate way. Therefore, most of themdon’t think about the promises of independencethat were made during the hiringprocess. Then one morning, two, threeor four years later, they wake up and say,“Hey, this isn’t what they promised me.”They realize then that they are navigatingthrough a mine field filled with employeecontrols. Those who are lucky enough toavoid the trip-wire can expect years of relativelyminimal interference from motherAllstate. It is when an agency falls out ofstep with Allstate’s prepackaged businessplan that ways are soon-to-be parted.Companies as large as Allstate rarelyluck upon a pathway to success. In thepast, Allstate has made mostly good businessdecisions and has worked diligentlyto prepare for most of the adverse marketconditions it has encountered. Whenconsidering its relations with its agencyforce however, things have not exactlygone according to plan. With the publicityof the Canadian agents’ plight stillat hand, one would think Allstate wouldbe in a defensive mode in dealing withits US agents. But Allstate has avoidedany “post-marital” letdown from Canadaand instead has ramped up its calculated,if not aggressive, agent termination planhere in the US. It is clear now that theRoman warship philosophy has been officiallyimplemented.But there should be no mystery aboutwhy Allstate behaves the way it does.Simply put, Allstate invented, institutedand maintains a corporately-centeredbusiness plan with agents playingthe part of disposable marketing tools.When Allstate instituted its 800 numberand Internet sales programs, agents wereimmediately placed on warning. Not becausethe new sales channels had instantlybecome a direct form of competition,but because Allstate management couldenvision a day when the agency channelwould be overcome by the CIC and theInternet. As this day draws nearer, agentsare increasingly seen as a means to anend, so there is minimal investment inprotecting and nurturing that relationship.For proof of this, kindly see the surveyresults above. Keep in mind that 37%of the agency force didn’t take the survey.Had the responses of this unhappy groupbeen added into the survey, imagine whatthe final survey results would look like.When something is loved, we protectit, and nurture it. At various times AllstateCEOs past and present have statedthat Allstate agents are the lifeblood ofthe company. One would think that aftersuch an important declaration, therewould be substance and action behindtheir words. Yet with each new addedquota and each new process for agenttermination (ALI), agents are left wonderingwhat they should believe.When Allstate was presented with anultimatum for unionization, one mighthave expected a concerted effort to uncoverthe root cause of the unrest. When agentsexpressed displeasure with their businessrelationship with Allstate, one might haveexpected at least a communication of acknowledgementof the problem. In bothcases the silence has been deafening. Eventhe worst parent on the planet will look tosee why their child is crying out in pain.But not mother Allstate.One question notably left out of thisyear’s shortened summary of the AgencySatisfaction Survey was whether or notthe respondent felt they would be affiliatedwith Allstate three years from now.Prior survey summaries showed an increasingpercentage of agents responding“no.” It can only be imagined that thepercentage for 2008 was trending in thesame direction.So with all this agent unrest and unhappiness,what kind of acknowledgement orchange can we expect from Allstate?Change? Not for Mr. WilsonWith Mr. Wilson getting such bad reviewsfrom his agents, what does he do?Instead of reinventing his approach tothe agency force, he fires more agents. Ifthis weren’t such a serious calamity forthe agents being terminated, it wouldbe comical. Agents are upset, fire them.Agents aren’t selling enough to meetcorporate quotas, fire them. Agents arereceiving low ALI scores, fire them.None of these agents will be able to fightback because Allstate is too big to beat incourt. Allstate knows the cost of doingbusiness the way it does. It knows thatwhatever wrongful termination lawsuit isFall 2009 Exclusivefocus — 55

filed, it can bury the plaintiff in paperworkand attorney fees. Allstate does not carebecause it sees the agent as expendable.If this were not so, then Allstate wouldbe genuinely upset over the unionizationattempt, the backlash in Canada,and certainly the abysmal survey results.But, outside of the brief chuckleMr. Wilson got during his review of theAgency Relationship Survey, he remainsunaffected.So, where does that leave the Allstateagent? Many are unhappy, really unhappy.Many would rather be employedelsewhere if given a choice. Not wantingto walk away from a lifetime of investment,many tenured agents will do whateverit takes to preserve their way of life,including buying life policies on theirbrothers, sisters and other relatives. Thisconundrum of choices gives Allstate theleverage it uses against agents every day.Unable to make the choice to unshacklethemselves from the oars of the Allstatecontract, Mr. Wilson knows exactlywhat he can do next. And with the sameaplomb of the Roman warship captain,he begins to toss a few agents over theside knowing those who remain will sellone more policy to keep their jobs.Mr. Wilson’s final scoreAs Mr. Wilson watches his chauffeurback the limo into his climate controlledexecutive parking spot, hiding the bumpersticker from view, a smile passesacross his lips. He knows no matter whathe does today, there will always be hismultimillion dollar golden parachutewaiting for him. He probably won’t evenlook back as he slips from the leather seatinto the waiting executive elevator.So, how is Mr. Wilson’s driving? Sufficeit to say, his agency sales force mightdo well to stay off the highway when hisstretch Mercedes rolls by.ARE YOU A VICTIM OF AGE DISCRIMINATION?Do the following statements apply to you?· I started my career as an Allstate agent prior to 1990, as an employee with benefits.· I was converted from employee agent to independent contractor agent, with substantially no change in my job other thatthe loss of my benefits and employee protections.· Allstate has now either terminated my contract, or threatened to terminate my contract for failure to achieve their businessobjectives of growth, AFS production or both.· There are other agents in my area whose performance level is the same or worse than mine, however, they are not beingterminated (or threatened) with the loss of their contract and agency.Sound familiar? Are you a victim of age discrimination?If you or someone you know is in this situation, consider whether you should file an age discrimination charge with theEEOC. Filing a charge may help protect your legal rights into the future should you be determined to have been misclassifiedas an independent contractor following your conversion from employee agent.If your contract was terminated in writing with a 90 day notice, or if you received a threat in writing and subsequently soldyour agency in order to avoid termination, you may only have 180 days to file a charge.1. The deadline for filing EEOC charges in most states is 300 days after employees receive notice that they will be terminated.Important: Don’t confuse your termination date with the date you receive notice of termination. Using the terminationdate could substantially shorten the amount of time you have to file. In a few states, primarily in the South, the deadline is180 days. Any filing after that will not be considered.2. The EEOC is overwhelmed, and looks for easy ways to process charges. One of those is to reject any filing from a personwho is not an employee. Any filer should assert in the charge that, notwithstanding Allstate’s label, he or she was an employeeof Allstate.3. Several states’ laws are more favorable concerning age discrimination than the Federal Age Discrimination in EmploymentAct. Filers should check the box on the form indicating that he or she wishes to cross-file the charge under the state’s fairemployment law. The agent can determine later if the state law is better than the federal law.4. California agents only: California protects independent contractors against age discrimination under the Unruh CivilRights Act. A victim of age discrimination does not need to file a charge at all to proceed under the Unruh Act. The act hasa complex statute of limitations (three years for some actions; two years for others).Contact your local EEOC office or visit www.EEOC.gov for more information, or contact an attorney specializing inemployment law in your area.DISCLAIMER: This information has been provided by NAPAA as a proposal for agents whose contractual relationship with Allstatehas already been severed. This action may not be appropriate for your individual circumstances. This information is not intendedto replace an independent evaluation with your attorney of the applicable facts and laws to be considered in your personal situation.This is for informational purposes only and should not be construed as legal advice from NAPAA or its attorneys, and NAPAA expresslydisclaims any such advice.56 — Exclusivefocus Fall 2009

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state claims we don’t charge for NAFs,but agents know better. If someone has aNAF on their driving record or on theirLIS, we deny them a significant discountwhich, of course, costs us the sale. We arethe only company that does this, as well.After years of denial, local managementhas finally admitted openly that we arethe only company that charges more forsingles over 30 and for people with notat-faultaccidents.For ten years now we have also beencharging extra for young drivers on multicarpolicies. Charging a young driver rateon one car apparently isn’t enough, so weadd a surcharge on other cars on the policy.Then, if that isn’t enough, there is thehousehold composition that further addscharges for driver combinations that involveone or more young drivers.Allstate used to surcharge anyonewith substandard insurance when writinga line 10 auto. Then, sometimein the late 1990s it went away and theagents cheered. By then, nobody elsewas surcharging for prior nonstandard.However, our euphoria was short-livedbecause a few years later the surchargereared its ugly head once again with oneof the SRM upgrades. So once again, webecame uncompetitive for anyone withprior nonstandard. At the time, Progressivewas taking loads of business fromus, but we couldn’t write business fromthem because they were considered anonstandard carrier, unless the liabilitylimits were 100/300 or higher. So prospectshad to change their limits to buyAllstate, which apparently made thembetter risks.I bought a small but profitable book ofbusiness from a retiring agent. It was amature book with excellent retention anda low loss ratio. The loss ratio is still low,but most of the book is gone now becauseAllstate hammered it with rate increasesstarting in late 2001. Who did they hit?They went after the older drivers. Anyoneover 65 was getting hit with higherrates. The rates for drivers between 65and 70 weren’t too bad and we couldmanage those. The rates for the 71 to 75letters to NAPAALetters continued from page 10.drivers are higher than our competition.But the rates for anyone 76 years old ormore have really decimated older booksof business. Allstate has determined theydon’t want those people and the pricesreflect it. So as people bump into thesehigher brackets, we usually see them defectfrom us by the late 70s and almostall of the ones over 80. I certainly understandthat there is increased risk. But thepricing does not seem to reflect that atall. Certainly our competitors think morehighly of the older group than we do. Itis pretty well known in the older circlesNOT to call Allstate for quotes. It is awaste of time.Between late 2002 and mid-2004 Allstatetook four AIC rate increases andhit AP&C as well. But the rate increasesalong with all the other surcharges andhidden rates caused people to leave indroves. Agents saw their retention ratesplummet. If you were in the high 80s youwere among the best. There were agentswith retention rates in the 70s and rumorsof some that had dropped into the60s. Allstate saw its market share dropand it has never recovered here. In thelate 1980s we were poised to overtakeFarmers as the second place insurer inthe state. Now, some 20 years later, we’restill behind Farmers and, are about tolose our third place position to Geico,Progressive or Safeco. We are consistentlythe highest in auto throughout thestate. This makes it tough to maintainyour business, let alone try to grow it.For years Allstate was the company youcame to get good rates with home insurance.Not many companies could challengeus. This was a great way to get intothe household. Over time, we would usuallywrite the other lines of insurance inthe household, which gave us a chance to“switch the pitch” to life and financial. So,what happens next? Allstate upsets thisgreat entrée into other sales opportunitiesby raising homeowner rates multipletimes and introduces new homeownerpolicies. They told us repeatedly that thenew policy (out about 3 years now) wouldsolve all our problems. We noticed rightaway that it was not as good as the olderpolicies and it was more expensive. TypicalAllstate - raise rates and reduce coverage- wait awhile and do again.So that brings us to today. In the latestset of meetings, we have been informedthat we will soon take a huge propertyrate increase. We are going to see rateincreases up to 50% in homeowners,25% on PUPs, mobilehomes will increase35%, and LPP rates will go up asmuch as 35%. And all this on the heelsof a 17% homeowners increase last December.Customer defections are soaring.And when someone shops for the home,they also shop for the auto. We aren’tthe only company with muti-policy discountsout there and just about everyother company has a lower auto rate, sowe lose the whole household. My staffand I can usually keep people if we areonly $100 to $200 higher. We have donea very good job of keeping people happyand well-attended to over the years.The problem is that loyalty and serviceonly go so far. When clients save $300to $1,500 per year, they leave. Obviously,the company knows this because theyexpect to lose 6% of our home and autobusiness. What kind of strategy is that?Lose 6% and get a bonus?If there was some sort of market conditionthat would justify these increases,it might be easier to swallow. But therearen’t. At the beginning of the year wewere told by senior management that everythingwas in good order. Nothing haschanged here, but certainly things havechanged elsewhere. Allstate got slappeddown in California and has not gottenwhat it wants in Washington. Andhow much has Florida affected us? Alwaysthey say publicly that rates are setby state. Just last year when Californiawas told to decrease homeowner rates by17%, several of us knew that is was onlya matter of time before rates would increasehere. In December 2008, we sawa 17% increase in Indemnity HO andIdaho saw even greater increases at thesame time. This was coincidence?So why am I and so many agents con-58 — Exclusivefocus Fall 2009

letters to NAPAAcerned? We are sitting on a time bomb.We know we are uncompetitive in autoand will soon be even worse in property.Allstate is going to give our clients evenmore reasons to shop and they are notgoing to like what they see. We will bebombarded with calls from irate clients,many of whom will leave and never comeback. In the past year, a major concern bythe region was the loss of new and neweragents because of the uncompetitivesituation here. But with these enormousrate increases, I’m worried that long termagents could be put out of business too.I am not the only one concerned. I havetalked to several agents locally as well asseveral out of the area and they’re all veryconcerned. Many agents are planningexit strategies now.The problem is trying to figure whento leave. If we go soon, we can get morefor our books of business. If we wait, thebook sale value will be greatly diminishedand so will the TPP. Selling rightnow won’t be easy either. There just aren’tmany qualified buyers and those that are,are not touching a book right now. In mycase, I have spoken to three prospectivebuyers in the past year and none of themlooks promising. There are a few big hitters,but they are scaling back and givingthought to cutting staff.And as I started out, we are gettingmixed signals. Amid all this turmoil andrate activity Allstate wants and expectsus to GROW! I think Home Office hasbeen infiltrated and is being influencedby Washington politicians. Only a politiciancould say they cut a program’s fundingand claim fiscal responsibility – andget away with it. What usually takes placeis that they vote for a smaller increasethan the one that’s proposed, and theycan claim credit for cutting funding.Allstate seems to be in this double talkmode now as well. For an RFG “meets”requirement we need to ONLY lose6% of our home and auto business thisyear. Yet Allstate says it wants to grow.Hmmm… I think what they really meanis that they expect to lose 15%, but hopeagents can reduce that loss to 6%. So insteadof a projected PIF loss of 15,000,they only lose 9,000. Sure, it’s still a negativenumber, but it’s less negative thanpredicted. Welcome to the world of Allstatedouble speak.So what do we tell people about theupcoming rate increases? In the past wecould look to a CAT loss or some otherevent of events to blame, but not now.What do you say to people who are lookingat 25% to 50% rate increases? In thepast we could look at national trends forincreases. But these are generally 5% to10% increases, not the kind of increaseswe’re facing. We could even look at hurricanes,which don’t directly impact us,except for the reinsurance premiums. Wecould look to weather changes here, butthere haven’t been any. We have seen rateincreases due to jumps in building costs,but building costs have been stable overthe past year. We have seen increases intheft claims, but those only go so far anddon’t really affect the LPPs or the PUPs.So what can we truthfully say to our clientsabout these exorbitant increases?Looking back over the past 6 years Ihave seen Allstate develop and releasethree different auto policies, all of whichhave differences, not only in the insurancescores, but also in their assumptions. Wenow have three different HO policies,two different LPPs, two different boatpolicies, two PUPs, and two RPPs. Tosave clients we have had to rewrite policiesover and over again. We have savedpeople but have lost premium doing so.The alternative is to lose them altogetherand never get them back.Currently, we are rewriting fire policiesto LPPs because the fire policies aregoing away. In most cases, the LPP hasbeen cheaper for the customer. But that’sabout to change as soon as the latest LPPrate increase takes effect. All of the newprograms are the ones that are seeingthe biggest increases in rates. What doesthat say? They don’t know anything moretoday than they did when they designedthese policies. We are being run by abunch of clueless individuals at HomeOffice and we are paying the price.Contract Terminated?If you have been terminated by the company for failureto meet Expected Results, NAPAA wants to help.We will post your agency for sale on our Website at nocharge. Just fax or email a copy of your termination letterto 866-627-2232, or hq@napaausa.org.After forwarding your termination letter to us, go to theSell Agency Listing page at www.napaausa.org and fill outthe information you want included in your ad.Important:Be sure to click“NAPAA Member – No Charge” before sending.We will post your listing for free.Fall 2009 Exclusivefocus — 59

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleALABAMAClantonBobby R. Wilsonbrwilsonins@bellsouth.net205-999-1379Asking Price: $100,000PIF: 375 Premium: $310,000Number of Licensed Staff: 11200 sf in a busy area. Fouryears left lease at $675 permonth. 91% retention, 2008RFG 8.2. Retiring due to healthissues. Great office andmarket.CALIFORNIAPasadenaSaad T SaadA069504@ALLSTATE.COM626-564-0090Asking Price: $150,000PIF: 630 Premium: $658,884Number of Licensed Staff: 1West HollywoodSilvina ZoltzmanSilvina@allstate.com310-205-2355Asking Price: callPIF: 1,944 Premium: $1,722,000Number of Licensed Staff: 2Solid book, 10 yr agency. ExcellentLR. Call (310) 279-9486cell.Apple ValleyDavid G Guardadodavidjrjr1981@msn.com760-885-2177Asking Price: $475,000PIF: 1,842 Premium: $1,750,000Number of Licensed Staff: 2Will carry loan. 15 yr office managerwilling to stay. Rent $572per mo. Make reasonable offer.PetalumaJohn FeerickJohnFeerick@allstate.com707-763-2238Asking Price: Call to discussPIF: 1,700 Premium: $1,800,000SOLD!CONNECTICUTTorringtonThomas Krohnertskrohner@sbcglobal.net860-480-4920Asking Price: $685,000PIF: 2,200 Premium: $2,356,652Number of Licensed Staff: 22 agent office, 2 licensed staff,35.54 LR, 91.52 retention. After42 years with Allstate, it’s time.FLORIDADeltonaDenise Whitedwhiteco@gmail.com386-214-1991Asking Price: NegotiablePIF: 900 Premium: $900,000qualifies for new agencyprogramNumber of Licensed Staff: 24 yr agency, qualifies for newagency bonus. Under 500 Allstatepolicies, 400 brokered home.Includes F&E. Under $900,000 inpremium, asking 3 times,$240,000. Allstate book only$400,000 in prem. price $120,000KissimmeeLarry Newmanlcn1986@aol.com407-529-4147Asking Price: $1,100,000PIF: 2,600 Premium: $2,650,000Number of Licensed Staff: 321 year agent retiring, staff willstay. Great location, turn keyKissimmeeDale Revelsdrevels@gmail.com407-924-5336Asking Price: $850,000PIF: 1,100 Premium: $2,200,000Number of Licensed Staff: 121 yr agent. Paperless office,low overhead. Close associationwith Allstate Hall of FameLife Specialist.HAWAIILahainaMichael D Amatomichaeldamato@allstate.com808-661-3542Asking Price: $210,000PIF: 1,296 Premium: $1,211,546Number of Staff: 2 (1 lic)Beautiful, turn-key office.Downtown, tastefully furnished.Talented EFS. Call9AM-11AM Aloha timeIDAHOMoscowNadine Belieunadine@allstate.com208-882-8000Asking Price: Reduced - Callfor detailsPIF: 1,800 Premium: $1,400,000Number of Licensed Staff: 120 yr agent, retiring. Beautifularea - hunting, fishing, recreation,Ret 89%, LR under 30%.ILLINOISLyonsJim Reinharda086138@allstate.com708-447 -8000Asking Price: Looking forreasonable offerPIF: 1,266 Premium: $1,253,500Number of Licensed Staff: 125 yrs, anxious to retire. LR 12mm 48.22, and 36 mm 55.89, retention87.47. Month to monthlease- no obligation. If largerbook desired, 2nd agent willingto combine book - increase toapprox 1700 PIFINDIANABrownsburgStanley Sheppardstansheppard@allstate.com800-687-3913Asking Price: Call for infoPIF: 3,600 Premium: $3,000,000Number of Staff: 0Two agencies same location.Retention 90%, 12mm LR 38%.No seller financing, approvedinquiries only. 6 yr old condooffice also offered, reasonableprice.KENTUCKYHendersonNancy Thornberrynancythornberry@yahoo.com270-860-2853Asking Price: NegotiablePIF: 901 Premium: $946,990Number of Licensed Staff: 1Excellent quality, establishedagency, walk in ready, P&C &Life licensed staff will to stay.LOUISIANAHammondTerry Kingking2926@bellsouth.net985-974-7144Asking Price: $1.85 millionPIF: 3,500 Premium: $5,450,000Number of Licensed Staff: 3Premier 33 yr agency, 7.6 RFGpoints in 2008. 47% LR % 88.5%retention. Great locationMAINEAugustaAndrew PerryAndrewPerry@allstate.com207-623-1394Asking Price: NegotiablePIF: 1,100 Premium: $850,000Number of Staff: 1 (0 lic)90.3% retention, 12 mm LR37.61, 24 mm LR 47.80. AtlanticOcean east, mountains west,ponds and lakes in between.Nice place to live.60 — Exclusivefocus Fall 2009

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleMARYLANDLinthicumJohn D. McCoyjohndmccoy@gmail.com410-859-1300Asking Price: $275,000PIF: 748 Premium: $946,465Number of Staff: 0FruitlandJack Thomaspoconojack@comcast.net410-341-0805Asking Price: NegotiablePIF: 900 Premium: $1,028,737Number of Licensed Staff: 1Beautiful East Shore locationsince 1988. LR 56%. Retention90%. Willing to finance for Allstateagent, manager or staff.MONTANAMissoulaNicole SchreckendgustSchreck@allstate.com406-728-6336Asking Price: call for detailsPIF: 1216 Premium: $1,250,000Number of Licensed Staff: 1NEVADAHendersonEric R. Zimmermanericzimmerman@allstate.com702-809-4747Asking Price: NegotiablePIF: 2,743 Premium: $2,700,000Number of Licensed Staff: 3Clean BOB. Established 22years. LR 38%, retention 88%.Must be company approved.NEW JERSEYSummitJames Fitzsimmons IIIjfitzsimmons@allstate.com908-598-9302Asking Price: $975,000PIF: 1,932 Premium: $2,700,000Number of Licensed Staff: 130% LR. Great loc for AF.$325,000 in revenue.SpringfieldJim FitzsimmonsJfitzsimmons@allstate.com908-598-9302Asking Price: $1,600,000PIF: 4,555 Premium: $5,700,000Number of Licensed Staff: 3Retention 93%. Great location.Firm asking price. No buyerfinancingNEW MEXICOAlbuquerqueKaren C Gonzaleskarengonzales@allstate.com505-610-8882Asking Price: NegotiablePIF: 2,367 Premium: $2,401,668Number of Staff: 2 (lic 1)Seasoned agent (29yrs). Turnkeyoperation in great location.Satellite or primary location.Low overheadNEW YORKNew YorkEileen Marie Rooneya056442@allstate.com212-680-1127Asking Price: $700,000PIF: 2,300 Premium: $2,300,000Number of Licensed Staff: 1NORTH CAROLINAFranklinBurl Parksburlparks@allstate.com828-369-9500Asking Price: $650,000PIF: 2,669 Premium: $2,262,733Number of Licensed Staff: 3PENNSYLVANIABethel ParkThomas Pusateritmichaelpusateri@yahoo.com412-980-1911Asking Price: Upon RequestPIF: 984 Premium: $1,050,000Number of Licensed Staff: 1Prime location. Easy access tosurrounding South Hills communities.Great opportunity forgrowth. Retention 90.70% - LR46.26%. No office calls or emailplease. Serious inquiries.TENNESSEERogersvilleDale Wilsonwilson.d713@gmail.com423-272-5357Asking Price: $132,000PIF: 757 Premium: $675,000Number of Licensed Staff: 1Agency in upper eastern TN.Only Allstate in Rogersville,great potential for aggressiveagent. Low overhead, greatlocation, high business trafficarea.ChattanoogaMitchell Beenembinsures@mac.com423-504-1078Asking Price: Call for infoPIF: 1,424 PIF Premium: $1.42millionNumber of Licensed Staff: 115 yr agency, Prime location.1st yr ret 89.94, 5yr 92.76Lic staff/ 10 yr tenure. Newbranded office condo, picsavailable.KnoxvilleConfidential listingprest222@yahoo.com865-691-0000Asking Price: NegotiablePIF: 1,200 Premium: $900,000Number of Licensed Staff: 1Affluent area, long time agent,high retention, LR under 20%.Low overhead, able split to

the NAPAA market placeAgencies for Sale Agencies for Sale Agencies for Sale Agencies for SaleRichmond ChesterfieldCountyDoherty Insurance Incd4175045@verizon.net804-339-6389Asking Price: $475,000PIF: 1,468 Premium: $1,804,918Number of Licensed Staff: 2Established Agency since1987. Excellent location bilingualBristolOsborne Insurancedonrosborne@yahoo.com423-968-5492Asking Price: NegotiablePIF: 4,900 Premium: $2,710,064SOLD!WASHINGTONSpokaneSteve WilsonSteveWilson@allstate.com509-325-9388Asking Price: Call for detailsPIF: 3,125 Premium: $1,832,547Number of Staff: 3 (2 lic)Established agency, reasonablerent. Lic, experiencedstaff will stay. Retention88.99%, LR 51.19. Big cityamenities-small town attitude.Broadway shows, SpokaneSymphony, and large concerts.All calls confidential.PoulsboEd Rauenedrauen@allstate.com360-697-6500Asking Price: $450,000PIF: 1,630 Premium: $1,530,000Number of Staff: 1 (0 lic)SOLD!91.9% retention. 33.74% 12mmLR. Rent $765.00 per month.BellevueJim Somborovichjs@allstate.com425-888-5673Asking Price: $299,000PIF: 1,468 Premium: $1,318,086Number of Licensed Staff: 1SOLD!Professional office, greatlease, high traffic area, nearMicrosoft HQ. 86% retention,39% LR. New Dell computers.Staff speaks English – Spanish,with agency 8 years.WISCONSINWausauMike Handrickmhandrick@allstate.com888-895-6022Asking Price: NegotiablePIF: 1150 Premium: $780,000Number of Licensed Staff: 1Both Wausau agencies forsale. Approved buyers canbuy both and merge into onelocation. Growing area, NorthCentral Wisconsin.MiddletonRod AbrahamRodAbe@Allstate.com608-220-0321Asking Price: $250,000PIF: 1,595 Premium: $1,000,000Number of Staff: 2 Part time (1 lic)Growing agency. Only agent inMiddleton- Voted #1 mid sizedcity in America. Good retention,LR and Financial results.Exc lic staff, 9 years. Lowexpenses, positive cash flow.Reasonable offers entertained.The NAPAA market place…where buyers meet sellers.Place your classified ad here for just $99 per issueof Exclusivefocus (Price reduced to $50 if ad is inconjunction with online ad.)For more information, go to www.napaausa.org,or contact NAPAA at 877-627-2248,or HQ@napaausa.org.index to advertisersApplied Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Aptela . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39BGI Marketing Systems . . . . . . . . . . . . . . . . . . . . . . . . . 43Capital Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Crawford-Wilvon Consulting . . . . . . . . . . . . . . . . . . . . . 21E-chx, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Back CovereBridge Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Find a Local Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19Gerry Flores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47Global Green Insurance Agency . . . . . . . . . . . . . . . . . . . 47My Grab-n-Go . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45Oakstreet Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22PPC Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41Retirement Solutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . 49Smart Choice . . . . . . . . . . . . . . . . . . . . Inside Back CoverSpeedy Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51T Mobile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17TWFG . . . . . . . . . . . . . . . . . . . . . . . . . . .Inside front CoverTWG Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57Vertafore . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32, 33Wright Penning & Beamer. . . . . . . . . . . . . . . . . . . . . . . . 1962 — Exclusivefocus Fall 2009

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Are Agency Profits Being Squeezed?Cut agency expenses with the new“Recession Fighter Payroll Program”It’s guaranteed to save you money!For a limited time any Allstate agent may receive thesame great rate as NAPAA members.Save up to 25% off processing fees when you convert yourpayroll to E-chx by December 31st, 2009.*Charles Parkhurst866-341-3504cparkhurst@e-chx.com*Typical savings when switching from a national competitor. A national competitor is one that has processing centers located in each time zone.