The Anchor September 2012

THE MAGAZINE OF THE INDEPENDENT INSURANCE AGENTS OF RHODE ISLAND

The AnchorThe AnchorLegislative Wrap Up 2012

Convention Registration Form Enclosed

More.

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table of contentsLegislative Wrap Up 2012Page 10

Convention Registration FormPage 14-15

RI Market Share & Loss Ratio ReportPage 23-28

2012 Partners ProgramPage 29

Case Law NotePage 31

Advertisers29

43

44

4

18

37

9

42

32

17

31

6

2

19

8

13

2012 Partners Program

Big “I” Advantage

Clean Care of New England

EMC Insurance Companies

Enviro-Clean, Inc.

Hospitality Mutual

IIABA

JH Communications

Ovation Payroll

Partridge Snow & Hahn, LLP

Providence Fire Restoration

Servpro of Providence

Smoke Clean of New England

The Beacon Mutual Ins. Co.

Trusted Insurance Alliance

Utica National E&O

From the PresidentPage 5

Executive Vice President PerspectivePage 7

Legal BriefsPage 16

HR CornerPage 22

Profile of an IIARI MemberPage 30

E&O CornerPage 34

Marketing ThoughtPage 38

WC UpdatePage 40

features & articles

The quarterly magazine of the

2400 Post Rd., Warwick, RI 02886401-732-2400, Fax: 401-732-1708

Officers of the IIARIPresident Doug Mayhew, CICPresident Elect Howard Thorp, AAI, CICVice President Greg Troy, CIC, CLU, AAIState National Director Robert Slocum, CPCU, CICImmediate Past President Michael T. Dacey, CPIA

Board of DirectorsDistrict Vice PresidentsCentral Andrew PalazzoEast Bay Richard B. PaquinSouthern Tom Regan, AAINorthern David White, AAI

District Vice Presidents, At LargeRobert T. Hartnett Garry Mansfield, CICDavid Woodmansee, CIC

District RepresentativesCentral Edward F. Bishop, CIC Mark RotondoEast Bay Colette McKeon, CIC Ken Thompson, Jr.Northern Marc Nadeau, CPIA Denise SmithSouthern John Gates, CPIA Stan Tabak

STAFFState Account Manager Marcia L. Berthiaume, AAI, ACSR

E&O Administrator & Mbr Coordinator Helen Collins

SVP, State Account Executive Sean R. Donaghey, CPCU

Education & Events Planner Kathryn E. Griffiths

Executive Vice President Mark A. Male

AVP, Director of Education Jean E. Nagle, ACSR, AAI, AIS

Finance & HR Manager Maureen E. Sears

Membership & Administration Sarah Van Grootheest

The Anchor is the magazine of the Independent Insurance Agents of Rhode Island (IIARI).

Statement of fact and opinion is made based on the responsibility of the authors alone and does not imply an opinion on the part of IIARI, it’s of-ficers, directors or members.

Subscription rate for members is $15, which is included in dues. Subscription rates for non-members is $75 per year (single copies $10). Reprint requests should be referred to IIARI.

Copyright©2012, Independent Insurance Agents of Rhode Island.

iiariIndependent InsuranceAgents of Rhode Island

Third Quarter 2012

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Our future will be marked by the relationships we forge with you—the independent insurance agents who represent us. You’re the reason we’ll continue to investigate new market opportunities. Why we’ll develop competitive products. Why we’ll maximize the use of new technologies. Why we’ll emphasize ongoing professional development for our staff. By helping you profitably and efficiently grow your agency, EMC Insurance Companies will continue to serve you and your customers today and well into the future.

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round going into 2013. If you have any interest in being a guest on the show please be sure to reach out to Mark as it is a terrific way to promote your agency as well. Our local Trusted Choice branding campaign continues to strengthen and this clearly supports our main strategic goals. Project Cap was rolled out with quite a bit of fanfare and a bit of confu-sion. Initially touted as an internet lead portal, the program has evolved into a digital marketing program that will eventually be combined with a Trusted Choice comparative rating portal de-signed to drive qualified leads to local agents. Like most of you, I have been disappointed with the delays that the portal portion of this project has had but also appreciate the time and effort that is being put into this huge project. I’m anxious to hear an update at our next Big I meeting in September. The Government Affairs Commit-tee was instrumental in a couple of key pieces of legislation during the year that addressed hurricane deductibles and agency contract terminations. The agency contract legislation was a tre-mendous win for agents as we will now have 14 months to secure a replacement insurance company to rewrite business if presented with a termination by an insurer. In this issue of The Anchor, be sure to read Ernie Shaghalian’s over-view of all that occurred during the 2012 session of the General Assembly. The newly renamed Consumer and Agent Resource Education Commit-tee (formerly Coastal Committee) was quite active this past year. Bob Hart-nett and his team started out the year

from the president

Doug Mayhew, CICIIARI President

Third Quarter, 2012 The Anchor5

A Look Back

It’s hard to believe that my term as your association President is already coming to an end. This past year has gone by so quickly. I’m quite certain that most of you feel the same way. It just seems that the pace that we are all expected to function now has somehow escalated to a speed that seems unsus-tainable at times. I’d personally like to thank Mark and the dedicated staff at IIARI for working so hard for our association. I can assure you we are in very good hands. Often their work goes unnoticed and perhaps unappreci-ated. I would encourage everyone to take a pause in their busy lives to thank Mark and his staff. I would also like to extend a thank you to all the board members and committee volunteers that take time out of their hectic schedules to address the issues that affect us all. The year started out with a focus on two main goals that were the result of several strategic planning meetings. Advancing Independent Agent Distri-bution System Image and Engaging Members became the mantra for every board meeting and committee meet-ing. I’m pleased to say that throughout the year we were able to make positive steps with each of these goals. Our first ever Trusted Choice Radio Show was rolled out early in the year on AM790. Mark hosted 26 shows that included many of our members, company rep-resentatives and various authorities within our state. All this was done at no cost and most importantly promoted the image of our association as the reliable source for insurance expertise. After some time off you can expect that Mark will be back on the air for another

The Anchor Third Quarter, 20126

with a presentation in front of the RI Realtors Association in October. This presentation clearly showed that IIARI and Trusted Choice agents are the best source for insurance guidance in the local communities. They are now working on a re-tooled website that will include blogs, links, and broadcast communications for members as well as consumers in Rhode Island. As you can see it has been an active year. Throughout this time Mark and his staff have been tracking participa-

tion in meetings, classes, and all IIARI functions to try to set some benchmarks as a means of measuring success go-ing forward. An active and engaged membership is ultimately the key to the continued success of IIARI. As we look to the next year I challenge you to reach out to Mark or any Board mem-ber to get involved with a committee or put your name in for a position on the Board. The pay is terrible but I can as-sure you the experience is well worth it.

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executive vice president perspective

Mark A. MaleIIARI Executive Vice President


ways looking for more effective ways to communicate with our customers, and prospective customers. Effective com-munication is the key to all of our success. Those who can reach the masses quickly and effortlessly will be the winners in the end. Historically, direct communication with customers was limited to a claim or when a premium was overdue. However, times are changing and competition for new customers has exploded. Gone are the days when we can write a new piece of business and then sit back and watch the renewals come in. New competition will come in the form of social media contacts and groups from LinkedIn, Twitter and Facebook. As your Association, you are our cus-tomers and for us to survive, you must find value in what we do for you or we will cease to exist. Social Media is how we plan to deliver some of that value to you in the future, at least the communication part of it. As you know, advocacy is a big part of what we do for you. When we see a bill up at the state house that negatively impacts independent agents as whole, it is our job to deploy all of our resources to get that bill squashed. Based on my recent success with LinkedIn, deploying resources will be much easier if we can make better use of the social media tools that are avail-able to us. Part of our leverage is the size and influence independent agents have as a group. However, it is one thing to say that we have the backing of a few thousand tax payers and business owners, it is another to prove it with the number of followers we have on our social media groups. Now that I have critical mass with LinkedIn, I would like to focus my atten-tion on Facebook. Unlike LinkedIn where the focus was on me individually, Face-book was set up so that IIARI as a group is the focus and if I can get us to collectively do to Facebook what was done with Linke-

It was only three years ago when I was asked by another state exec to do a presen-tation at the annual meeting of state execu-tive directors on Social Media or Web 2.0 and what impact this could have on our business. Social Media/Web 2.0 refers to all the different social websites that will someday replace all traditional forms of communication and includes Facebook, LinkedIn, You Tube and Twitter, to name just a few. With no experience in any of these mediums I immediately signed up for some of the more popular sites in order to get a better understanding of how they all work. In the last three years, I have signed up for Twitter, and LinkedIn and created an IIARI group account on Facebook. Twit-ter and Facebook have gotten off to a slow start, but this past August, I surpassed 1,500 professional connections on Linke-dIn which was a defining moment for me but at the same time,I’m not really sure what it all means. It is a great idea to set up a group and to encourage as many people as you can to join and participate, but now that I have done this with LinkedIn, what do I do with it? How can I replicate that success with Facebook and Twitter? What do I do with 1,500 LinkedIn connections? It took me three years and many searches through lists of “people I may know” to get to this point. Anytime I came across a member of IIARI I invited them to join. Likewise, searches of former colleagues and old friends were invited to link with me. I am now at a point where “friends of friends of friends” are asking to join. These are people with whom I have neither met, nor worked with. Building a critical mass of connections like this is the whole point of social media, and the reason why getting in now is so criti-cally important to the future of our busi-ness. But first we have to figure out how to use it to our advantage. As independent agents, we are al-

I’m Connected - Now What?


dIn, we’ll be off to a good start in changing the way we do business – for the better. As independent agents, we are constantly under attack from the direct writers and are losing market share as a result. Direct writers do a much better job advertising than we do because they have deep pockets and we don’t. Individually, we are small business owners with limited resources but collectively, we can be a force to be reckoned with. My goal in writing this article is to not only point out some of the advantages of social media in general, but also discuss the specific impact Facebook can have on our business as independent agents. If I were a betting man, I would bet that all of you have a Facebook page for your busi-ness and that most of your employees have

a personal Facebook page as well. Col-lectively, we probably reach thousands of clients and potential clients every day. Can you imagine the impact this could have on our efforts to promote the Trusted Choice brand and on information flows with our customers and potential customers? What the direct writers spend in advertising an-nually we can accomplish with the simple click of a button. After reading this article, please take the time to “Like” IIARI on your Face-book page and have your employees do the same. Individually we stand alone but to-gether we are an army of thousands. Let’s take Facebook to a new level and forever change the way we communicate with our customers.

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Ernest Shaghalian Jr, CPCU, AAIErnest Shaghalian/Alpine Ins.Chairman, IIARI Government

Affairs Committee

For the first time in several years the state budget wasn’t a major problem during the legislative session but there were several pieces of insurance leg-islation that received major attention. The bill that garnered the most public-ity was an auto body bill that passed the General Assembly in the eleventh hour but was vetoed by the Governor. The most significant bill that passed and impacts all independent insurance agents was an amendment to the ter-mination of agency contracts law. The most important personal lines property insurance bill effected Rhode Island’s hurricane statute and gave new con-sumer protections.

Here’s a look at some of the legislation that passed in this year’s session:Agency Contract Termination After a recent wave of agency termi-nations by a prominent regional insurer, the committee felt is was time for legis-lation to amend the termination law and to eliminate disruption for insurance consumers. Two identical bills were introduced to address the period of time for termination notice to independent agents: Senate Bill S2389 (introduced by Senator Roger Picard of Woonsock-et) and House Bill H7793 (Representa-tive Cale Keable of Burriville) (it’s a common practice to have identical bills introduced in both chambers). IIARI was able to negotiate and guide these bills through the legislative process leading to their passage. It was signed into law by the Governor and went into effect on 6/12/12. This amended law prohibits insurers from non-renewing


consumer’s property and casualty poli-cies for 14 months from the date when an agency is notified of termination. The existing law had a 180 day time frame and allowed for a lengthy and cumbersome arbitration type process in which the agency could petition for 12 months before non-renewals began. One of our members recently attempted the arbitration process and it took six months to get a negative answer. The new law also maintains a six month notice requirement for contract modi-fication regarding such things as com-mission changes.

Weather Related Losses At the request of the Department of Regulation Insurance Division, House Corporations Chairman Brian Kennedy and Senate Corporations Chairman Joshua Miller introduced legislation that would enhance consumer protec-tions for weather-related losses and prevented premium increases for small personal lines property losses. These bills added onto Rhode Island’s exist-ing hurricane law which was largely crafted a few years ago by Senator Da-vid Bates and Chairman Kennedy. The existing law worked perfectly last year when Tropical Storm Irene came up the coast. As a tropical storm Rhode Island consumers were not saddled with huge catastrophe deductibles like they were in other states (e.g. Connecticut). The new bill passed this year added these new consumer protections:• Limits the application to the amount

of only one hurricane deductible in any one calendar year for personal

Legislative Wrap Up 2012

special article


lines policies.• Prohibits increased premiums or

non-renewals for any type of person-al lines property claims under $500 unless there was more than one in a three year period.

• Prohibits cancellation or declination for a new property owner because of claims at the same location by a former owner (unless damages were not repaired).

• After a catastrophe DBR may: require temporary grace periods for paying premiums and performance of other duties by insureds; tempo-rarily postpone cancellations and non-renewal of insurance policies.

• Authorizes DBR to establish a non-binding alternative dispute resolution procedure for personal lines hurri-cane claims.

• Prohibits insurers from declining, increasing premiums or non-renew-ing a personal lines property policy because of a catastrophe loss.

Body Shop Bill Over the last ten years an ongoing war in the General Assembly between auto body shops and insurance compa-nies has been waged. The body shops are in every community, are well orga-nized and have good relationships with their local legislators. Over the years the body shops have gotten many bills passed in their favor but the unresolved issue has always been the hourly labor rate that the insurance companies pay to repair vehicles. The shops argue that the rate insurers pay is artificially low, about $45 per hour (compared to auto mechanics that charge about $90) and hasn’t changed much over the last 25 years. The insurers argue that they feel the rate is fair because there are an ample amount of shops that are willing to repair the cars for the allowed rate.

The main battle ground for the war is in the respective corporations committees of both chambers. Both sides usually submit legislation and on the day the bills are heard it is referred to as “Body Shop Day” and the reason is that the hearing usually takes all day. This year the body shops got the big one passed. House Bill 7782 would have:• Prohibited an insurer from deeming

a vehicle a total loss unless there was more than 75% damage, thus forcing consumers to have repaired and keep heavily damaged vehicles.

• Required insurers to “negotiate in good faith” and if they couldn’t agree on the repair cost/labor rate allow the shop to sue the insurer even though the shop was not a party to the insurance contract between the insurer and the insured, the law would allow up to a $5,000 penalty against the insurer plus attorney’s fees.

These provisions would have made Rhode Island the first state in the na-tion to allow these actions. The pas-sage of the bill generated articles in the Providence Journal as well as TV news coverage. The insurers argued at the hearing for this bill that it would cause an estimated $164 increase in insurance policy premiums in Rhode Island. After a front page Journal article the Gover-nor’s office got 1,800 requests to veto the bill and 400 requests to sign the bill. Governor Chaffee vetoed the bill citing his belief that it would cause an increase in insurance premiums at a time when people couldn’t afford it.

Loss Reserve Information Insurers will not be required to provide loss reserve information on commercial lines claims when there is a documented dispute between the insured


and includes coverage for preventive care. Primary Care Provider requires insureds to designate a primary care provider but there are no penalties for failure to do so. For the exact text and provisions of the bills referred to you can contact Maureen Sears at the association head-quarters for a link to the actual legisla-tion. As Chairman of the Government Affairs Committee I’d like to thank the following IIARI members who attended our meetings this year. They were: Ed Bishop, Julia Bridges, Sean Daly, Cristie Hanaway, Brian Hunter, Peter Kenahan, Nancy Mendizabal, Kim Raymond, Rick Rheinberger, Ken Thompson, and David White. The com-mittee members are supported by Mark Male our Executive Vice President who is our liaison with the IIARI Board/Executive Committee and is our chief advocate at the Division of Insurance, the Governors Insurance Council and several other committees. Maureen Sears, who is IIARI’s Finance & Hu-man Resource manager, compiles the long list of bills that we follow each year and she administers the IIARI PAC fund management. Attorney Ter-rance Martiesian is our contract lob-byist; he attends our many meetings, gives us valuable legislative council and provides us with some very good connections. The last message for IIARI mem-bers is please give to the IIARI PAC if you haven’t done so already this year. With these contributions we are able to attend fund raisers, get our message out and show we are the local insurance people in the community, providing lo-cal jobs and paying local taxes.

and the insurer. Homestead Estate Exemption A bill passed which increased the amount of the homestead exemp-tion from $300,000 to $500,000. This exemption shields homeowners from most types of attachments. Portable Electronics Insurance Requires the licensing, disclosure rules and education guidelines for insurance products for such devices as cell phones. Emergency Appraisers Licenses Gives the DBR authority to grant emergency auto appraisers status after a catastrophe. Some bills that didn’t pass were: • Electronic verification of auto

insurance that would have allowed cameras to record license plates and electronically verify through a data bank if a vehicle had auto insurance then mail a fine to the owner if not.

• Indemnity Agreements would have prevented the owner of a construc-tion project from requiring that the contractor assumes the insurance responsibility for the project owners negligence.

• Prohibit Credit Scoring on insur-ance policies.

• Prohibit non-hands free cell phone use while driving.

On the health insurance front a couple of bills of note passed: Health Insurance Consumer Protection phases in a prohibition of annual/lifetime coverage benefits, pro-hibits preexisting conditions exclusions

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know.rhode islandassociationof insuranceagents 2400 Post Road Warwick, RI 02886 Phone: 401-732-2400 Contact: Helen Collins

Monday, October 29Continental Breakfast & Morning Education - 8:00 am – 12:00 pmThe day begins with breakfast being served at 8 am and class at 9 am. Students will enjoy a 3 credit ethics seminar on “Street-Level Ethics”, presented by Chris Amrhein.

Golf Tournament & Reception - 10:00 am – 3:00 pmWanumetonomy Golf & Country Club in Middletown is the location of this year’s golf outing. Located on the east side of Rhode Island’s Narragansett Bay, Wanumetonomy is an 18-hole, challenging and picturesque par 70 layout done in a

classic links style. There will be a 10:00 am shotgun start and a boxed lunch will be provided.

Lunch - 12:00 pm – 1:00 pmRelax and enjoy a casual lunch then feel free to stroll through the Exhibit Hall.

Afternoon Education - 1:30 pm – 4:30 pmIt’s back to school again, with Chris Amrhein presenting another 3 credit seminar, “Six Ways to Get Sued.”

Exhibit Hall Reception & Opening Night Reception - 4:30 pm – 9:00 pmThe evening begins with a Exhibit Hall Reception then it’s off to the International Tennis Hall of Fame for the Opening Night Reception. Libations, hors d’oeuvres, music, raffle and more await all who attend. The evening concludes at the Canfield House with a casino, international coffees and desserts.

Tuesday, October 30

Continental Breakfast/Annual Business Meeting/Morning Session - 8:30 am – 12:00 pmThe day begins with a breakfast being served at 8:30 am and all members are invited to attend the Annual Business Meeting at 9:30 am. At 10:00 am, don’t miss the chance to attend a session focused on sales with the award winning speaker, author, trainer, and coach John Chapin.

Installation Luncheon & Afternoon Session - 12:00 pm – 4:00 pmEnjoy an elegant lunch while you witness the new Officers and Directors being sworn in. Following lunch, Rhode Island General Treasurer Gina Raimondo will update us on the State of Rhode Island. Hear how Treasurer Raimondo tackled the looming pension crisis and positioned the State of Rhode Island to overcome an issue that would have paralyzed, crippled or even sent the State into bankruptcy. The afternoon will conclude with an opportunity to network with peers, company representatives, and vendors.

SCHEDULE OF EVENTS

The Newport Bridge Toll Is On Us!

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Register Online at www.iiari.com or complete this form and return with check payable to:Independent Insurance Agents of Rhode Island, 2400 Post Road, Warwick, RI 02886

Phone: (401) 732-2400 www.iiari.com Fax: (401) 732-1708

PlEASE ChooSE A PACkAgE ANd INdICAtE thE EvENtS you WIll BE AttENdINg.

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Hotel ReservationsAt the end of the evening, if you’re too tired to drive, take advantage of the special IIARI $149 room rate.For reservations call the Newport Marriott at 401-849-1000

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legal briefs

Jennifer R. Cervenka, Esq.Partner


to make alternative arrangements for their customers. Exemptions from the notice are carved out appropriately for cases where the producer’s license has been revoked, the producer has been convicted of a dishonest act, or the producer’s company has surrendered its license. The amended law is now in effect.

Insured and Authorized Agents Are Given Greater Access to Loss

Information For non-personal lines of insur-ance, the Insurance Unfair Competition and Practices statute authorizes the first named insured and/or its autho-rized agent to request loss informa-tion from the insurer. Within 14 days of a request, the insurer must provide information on closed and open claims for the period during which coverage has been provided or 5 years, which-ever is less. The information that may be requested on open claims includes loss reserves. Previously, the statute exempted loss reserve information for medical malpractice and medical professional liability insurance, liabil-ity insurance for clinical trials, kidnap and ransom, and commercial property for highly protected risks. Under the amended law (R.I. Gen. Laws § 27-29-17.5), those exemptions have been eliminated and in its place, a new, more narrowly-tailored exemption has been added for loss reserve information on claims subject to a “documented cover-age dispute” between the insurer and the insured. The amended law provides agents and their customers with access to a greater amount of information ex-

In its 2012 session, the Rhode Island General Assembly passed several new insurance laws that are already in ef-fect or will soon impact agents and their customers. Agents will want to familiarize themselves with the new legislation, which provides them with expanded rights and affords their cus-tomers additional protections against weather related losses. The following summarizes some of the more signifi-cant legislative changes.

Required Minimum Notice of Intent to Cancel Producer Contract Is Ex-tended From 180 Days to 14 Months

Rhode Island’s producer licensing act was amended to require more than double the amount of notice a property and casualty insurer is required to pro-vide to an independent producer when cancelling that producer’s authority. Under the old law, the required mini-mum notice was only 180 days. The new law (R.I. Gen. Laws §27-2.4-20.1) now requires the insurer to provide the producer with written notice of its intent to cancel fourteen (14) months before the proposed effective cancella-tion date. The new law also specifies that during such 14 month period, the insurer must continue to renew expir-ing policies which meet the insurer’s underwriting guidelines for the com-pensation provided for under the expiring contract. Modifications to the producer’s contract may still be made only with 180 days prior written notice. The longer cancellation notice period is a major improvement in the law and fi-nally takes into consideration the length of time required for independent agents

Legislative Wrap-Up

cepting situations involving a bona fide coverage dispute.

Additional Protections Are Enacted for Residential Homeowners with

Weather Related Losses The former statute governing residen-tial homeowner losses due to weather related events (R.I. Gen. Laws § 27-5-3.7) was made into a new chapter of the General Laws. The new chapter (R.I. Gen. Laws §§ 27-76) combines all statutory authority governing weather related insurance into a single act and provides for additional homeowner protections. The new law authorizes the Department of Business Regulation to immediately create a mediation process for homeowners and insurers to resolve disputes over hurricane claims and to issue regulations addressing reporting requirements for claims, grace periods for premium payments and cancellations or nonrenewals in the event of a de-clared catastrophe. Effective January 1, 2013, the new law limits the application

of a hurricane deductible to once per calendar year. It also restricts premium surcharges, cancellations and nonre-newals stemming from “de minimus” single claims (less than $500), regulates use of prior owner claims experience and prohibits insurers from canceling, nonrenewing or surcharging policies due solely to catastrophic claims experience. The requirements of the old statute re-main unchanged with respect to insurers’ authorization to apply deductibles, de-ductible triggers, notice to homeowners and availability of mitigation measures (outlined in our Second Quarter 2012 article for The Anchor). The Department will amend Insurance Regulation 110 to address the changes in the law regarding weather related events. Emergency Motor Vehicle Appraiser

Licenses Are Authorized Rhode Island’s Motor Vehicle Dam-age Appraisers statute was amended to permit limited emergency licenses be is-sued for motor vehicle damage apprais-


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Jennifer R. Cervenka, Chair

Christopher C. Cassara • Melissa E. Darigan

Paul M. Kessimian • Howard Merten

John J. Partridge • Steven E. Snow

The Rhode Island Supreme Court licenses all lawyers in the general practice of law. The court does not license or certify any lawyer as an expert or specialist in any field of practice.

ing is not required and the appraiser is employed by an insurance company authorized to do business in Rhode Island. Those obtaining the emergency license may only engage in emergency insurance appraisal work during the period of the declared emergency. This amendment takes effect immediately.

ers who do not hold a Rhode Island appraiser license where the Department of Business Regulation determines a catastrophe has occurred or when the Governor or President declares a state of emergency. The 120-day license may be issued only to licensed apprais-ers from other states or experienced ap-praisers from other states where licens-


Melissa E. Darigan ([email protected]) and Jennifer R. Cervenka ([email protected]) are attorneys with Partridge Snow & Hahn LLP, a Providence based business and litigation law firm. Ms. Darigan is a partner with the firm and Chair of its Litigation group. Ms. Cervenka is a partner with the firm and Chair of its Insurance group.

w w w. e nv i r o c l e a n i n c . n e t

Toll-free (888) 231-3130

FIRE • WATER • WIND • MOLD • BIOHAZARDS Quick Response. Quality Results.

Are you ready? We are.We don’t know when or where

a hurricane may hit, but we do

know one thing: We all have to be

prepared.

Enviro-Clean is ready for the worst.

Who’s on your speed dial?

�e financial strength of Beacon brings stability to the Rhode Island workers’ compensation market - providing businesses with superior loss prevention, claims service and competitive premiums.

Creating valuefor our policyholders

every day.

When you help a staff member retire by having them register with WAHVE, you are helping everyone because:• You are keeping the institutional

knowledge in the industry and mak-ing it available for others who need it.

• You are enabling a transition for your staff.

• You are providing the industry an alternative to outsourcing insurance jobs overseas.

Today’s technology enables people to work remotely from home, and today’s retirees are tech-savvy. Accord-ing to the latest research, 50 percent of soon-to-retire baby boomers are pre-pared to work from home. They have high-speed Internet connections, up-to-date computers, smart phones; they surf the internet and use computers to video chat. Now all they need is a job work-ing from home! WAHVE is the perfect opportunity for you to help your employees who want to retire have a soft landing as they leave the regular workforce. WAHVE has been capturing the in-surance industry’s retiring baby-boomer population (“vintage employees”) who want to continue to work and then out-sourcing them back to insurance firms (agents/brokers, wholesalers, insurers, and vendors), on a full-time, part time or project basis. We have many insur-ance firms’ approaching us with work assignments that can be a good fit for retiring insurance agency employees. Invite your current and past retirees to visit the WAHVE website (www.WAHVE.com) and apply to become a wahve.

Do you know that one of eight Americans is 65 or older? Do you real-ize the average age in the insurance industry is 58? Our industry is facing a huge boomer retirement trend that presents a wonderful opportunity for insurance firms and their retiring staff. Retirement today is not an end game. People retire from the office but not from work. They want to work differently as they phase out of the 9-to-5 workforce and create a better life-work balance. They also know that if they continue to work, they will stay healthier, live longer and have greater financial freedom. When I travel around the country attending conferences, some agency principals and HR managers tell me they have people working for them who they know are ready to retire -- but they don’t know how to help them take the plunge. Some of their staff people tell me they would love to “sort of retire” but are fearful of closing the door. They are afraid that after being home for a few months, they will be bored and/or realize they need to earn some money to supplement their retirement income. They worry that no one will hire them ever again, or that they will end up as a greeter at Walmart and their CIC or CPCU designation will lose its value. But now there’s a solution to the conundrum: a new way to help your retiring employees create a new career after retirement. It’s called “Work At Home Vintage Employees” (WAHVE). WAHVE was created to solve two of the industry’s major im-minent problems: 1) The shortage of qualified talent and 2) the loss of the industry’s institutional knowledge as boomers retire.


When It’s Time for Your Staff to Retire,Help Them Retire the WAHVE Way

Written bySharon Emek

WAHVE LLC

SUMMER OUTING 2012


employee.• Write an interview summary or

complete your evaluation form im-mediately after the interview. VERY IMPORTANT.

• Maintain consistency in making hiring decisions. Review the recruitment and selection process to ensure it meets affirmative action guidelines if ap-plicable and employment opportunity requirements.

• Be able to document and explain the hiring decision. If you can clearly describe the reasons for the decision, it is likely that good selection practices were used. The applicant evaluation form can be extremely helpful in both guiding and documenting the decision-making process.

• Select one or two backup candidates and don’t send rejection letters to those candidates until an offer has been accepted. It is possible that your first choice, for whatever reasons, will decline the position and you will want to be able to make an offer to another qualified candidate if available.

• Move the process along as efficiently as possible. If a hiring decision is delayed, the first choice may take ad-vantage of another opportunity and no longer be available.

• Respond to every applicant who has been interviewed, even if it was just a phone screening. If eliminated, the ap-plicant should be notified as quickly as possible about his or her status in the interview process.

If this is a concern contact some one in the Human Resource field that can help you. Hopefully these tips and suggestions have been helpful. Thanks for your time. See you next quarter.

Dave Nichols Quality Transitions, Inc.

hr corner

How is Your Interviewing Going for Candidatesfor Positions You are Trying to Fill?

This is a continuation in the series of human resource articles for The Anchor. My goal is to bring value to your organiza-tion in accomplishment of the Essentials of Human Resources. This article will deal with some tips and suggestions on inter-viewing. As you are aware the interview is a criti-cal part of the hiring process. Your role as a professional is to be prepared for an effective interview. Here are some addi-tional tips and suggestions that may be of assistance to you.

• Identify the questions that candidates will be asked and write them down. Ask the same question of all candidates for the position.

• Consider the setting; provide a quiet, uninterrupted location that puts the candidates at ease.

• Tell the applicant that you will take some notes. Don’t be so focused on your note-taking though, that you fail to make eye contact or demonstrate in-terest in what the candidate has to say.

• Let the applicant do the talking. Don’t dominate the discussion. The 80/20 rule applies—let the applicant do 80% of the talking.

• Maintain control of the interview and stay within the allotted time.

• Probe incomplete responses. If you don’t feel that the candidate has ad-equately answered a question, ask for clarification.

• At the end of the interview sell the company, but do not oversell the position. It is important to be honest with the candidate about the require-ments of the job and the culture of the organization. Your goal is to make a hiring decision that will be beneficial for both the organization and the new

by Roger L. Messier, CPCU

After decreasing for three years in a row, the written premiums this year increased $33 million – a welcome trend. More important, however, is the loss ratio, for all lines increased on an incurred to earned basis from 50.8 to 67.2. You can see more rate increases coming.

On individual lines, Private Passenger Auto written premiums increased by $7 million, and the incurred to earned loss ratio jumped 8 points to 74% - not a good trend.

Homeowners written premiums increased about $10 million, but the incurred to earned loss ratio jumped from 44.1 to 69.2. This is probably an indication of the cost of last year’s so-called hurricane.

Workers’ Compensation written premiums increased over $14 million, and the incurred to earned loss ratio dropped 2.4% - Beacon’s market share continued its drop to 55.3 of the market.

With all the money Progressive spends on advertising, their auto liability market share decreased from 18.1 to 17.2, and Geico increased from 9.5 to 10.4 – makes you wonder if advertising has a limit.

Many times, I hear people mention how one insurance company or another is so competitive and knowing how they rank and their loss ratio by line helps to see just how competitive they really are. The statistics quoted here will help to show how every company is doing, both in writing and in their loss ratios. Keep in mind, that if any company had a really bad loss ratio, you can expect them to file for large rate increases.

Extreme competition continued all through 2011 and continues, but it seems that most companies are getting auto and homeowner increases, so perhaps, we’ll see some sanity return to our industry.


2011 Rhode Island Insurance Industry Market Share and Loss Ratio Report

(Source: A.M. Best, Best’s Data Services)


RANK NAME

2011 MARKET SHARE

2010 MARKETSHARE

2009MARKETSHARE

WRITTEN PREMIUM (000) P/E I/E

1 Allstate 9.2 9.0 8.6 157,979 63.0 70.2

2 Liberty Mutual 7.7 7.8 7.6 133,183 61.9 64.5

3 Amica 7.0 6.6 6.2 119,895 64.9 81.0

4 Progressive 6.6 7.1 7.2 114,013 63.8 64.0

5 Beacon Mutual 5.2 5.0 5.4 89,678 80.6 51.1

6 Travelers 5.0 5.6 5.1 86,209 53.1 48.3

7 Nationwide 4.9 5.3 5.4 84,502 63.0 59.6

8 MetLife Auto 4.5 4.5 4.2 77,831 62.9 70.5

9 Berkshire Hathaway 4.2 3.8 3.6 71,802 77.3 74.3

10 Amer. Int. Group 2.9 3.0 3.0 49,717 70.9 53.6

11 USAA 2.7 2.5 2.4 46,103 55.0 63.5

12 Chubb 2.4 2.3 2.4 41,937 27.0 29.5

13 Mapfre USA 2.0 2.0 1.8 34,954 63.0 66.6

14 Hartford 2.0 2.1 2.2 34,379 52.7 63.8

15 Zurich 1.8 1.4 2.7 31,389 62.7 57.1

16 Selective 1.8 1.6 1.5 30,975 56.7 68.8

17 Main St. America 1.6 1.5 1.4 27,283 60.4 57.7

18 Harleysville 1.5 1.6 1.6 25,687 63.9 73.6

19 CNA 1.2 1.2 - 20,313 55.4 58.8

20 EMC 1.2 - - 19,991 48.0 47.8

RI - Overall State Ranking (All P/C Lines)

2011 2010 2009Private Pass. Auto Liability 455,448,000 448,644,000 437,735,000Private Pass. Phys. Damage 221,007,000 217,830,000 219,675,000Homeowners 303,117,000 293,653,000 286,319,000W.C. 162,073,000 147,771,000 155,908,000Products Liability 11,700,000 9,354,000 9,645,000Comm’l Multi-Peril (Non-Liab.) 85,440,000 81,400,000 84,156,000Comm’l Multi-Peril (Liability) 47,318,000 47,015,000 48,502,000Other Liability 100,818,000 160,999,000 123,053,000Comm’l Auto Liability 66,083,000 69,657,000 70,353,000Comm’l Auto Phys. Damage 14,790,000 15,437,000 16,641,000Inland Marine 53,438,000 52,775,000 49,933,000Med Mal - Other than MMJUA 35,710,000 43,815,000 40,603,000Fire 42,088,000 43,846,000 39,835,000Allied Lines 31,767,000 35,153,000 31,330,000

RI - Group Line Results (By Line)

2011 2010 2009

Total Written Premium 1,719,986,000 1,686,957,000 1,695,032,000

Paid to Earned Loss Ratio 68.0 49.8 63.0

Incurred to Earned Loss Ratio 67.2 50.8 62.8


2011 2010 2009 WRITTEN RANK NAME MARKET SHARE MARKET SHARE MARKET SHARE PREMIUMS P/E I/E

1 Allstate 15.6 15.4 15.3 47,173,000 64.5 73.2 2 Amica 12.8 12.0 11.6 38,675,000 70.2 86.7 3 Liberty Mutual 9.7 9.8 9.9 29,491,000 49.4 60.5 4 Nationwide 7.2 7.8 8.1 21,960,000 66.8 61.3 5 MetLife Auto 5.7 5.8 5.8 17,386,000 71.6 77.2 6 USAA 5.0 4.6 4.4 15,194,000 31.9 39.4 7 NBIC 4.6 3.3 1.7 13,889,000 41.7 41.3 8 Chubb 4.3 4.5 4.7 13,020,000 31.8 28.1 9 Andover 3.6 3.6 3.9 11,061,000 53.4 53.310 Prov. Mutual 3.5 3.5 3.3 10,557,000 92.6 98.111 Travelers 3.1 3.3 3.4 9,385,000 65.4 62.912 Mapfre USA 3.0 2.9 2.6 9,159,000 61.7 67.013 NLC Pool 2.8 3.0 1.4 8,488,000 94.7 93.314 Main St. America 2.0 2.1 2.1 6,170,000 43.5 54.515 Harleysville 1.9 2.1 2.1 5,869,000 53.6 68.216 Amer. Int. Group 1.8 1.6 - 5,400,000 65.6 51.717 Selective 1.2 - - 3,773,000 54.1 70.318 Tower Group 1.1 1.9 - 3,424,000 33.9 35.519 Country Financial 1.0 - - 2,997,000 42.1 42.620 EMC 1.0 1.1 1.2 2,971,000 40.8 43.0

RI - Homeowners

2011 2010 2009Total Written Premium: 303,117,000 293,653,000 286,319,000Paid to Earned Loss Ratio: 61.2 44.6 37.5Incurred to Earned Loss Ratio: 69.2 44.1 36.6Market Shares: National Agency 13.5 14.6 17.1 State & Regional 26.5 26.2 23.6 Direct Writers 60.0 59.2 59.3


RI - Private Passenger Auto Liability

2011 2010 2009Total Written Premium: 455,448,000 448,644,000 437,735,000Paid to Earned Loss Ratio: 69.5 66.7 66.4Incurred to Earned Loss Ratio: 74.0 66.5 66.9Market Shares: National Agency 6.4 6.5 9.0 State & Regional 29.5 31.0 30.0 Direct Writers 64.1 62.5 61.0

1 Progressive 17.2 18.1 18.5 78,154,000 61.3 62.1 2 Allstate 14.3 13.6 17.8 64,975,000 74.1 85.3 3 Amica 11.6 11.0 10.1 52,999,000 62.8 77.0 4 Berkshire Hathaway 10.4 9.5 9.1 47,224,000 67.0 74.2 5 MetLife Auto 8.0 8.0 7.8 36,321,000 63.0 76.9 6 Nationwide 7.1 7.8 8.4 32,125,000 72.3 68.7 7 Liberty Mutual 7.0 6.6 6.4 31,734,000 65.5 63.9 8 Travelers 3.8 3.8 4.1 17,532,000 62.8 66.1 9 Mapfre 3.7 3.7 3.7 17,079,000 62.0 68.110 USAA 3.5 3.3 3.3 15,720,000 75.0 86.711 Integon 2.1 2.3 2.6 9,657,000 82.0 91.212 Main St. America 1.9 1.7 1.5 8,506,000 63.8 69.513 Quincy Mutual 1.0 1.0 1.1 4,742,000 85.0 81.414 Selective 1.0 0.7 0.5 4,374,000 72.6 89.215 Harleysville 0.9 1.0 1.1 4,193,000 107.3 108.916 Providence Mutual 0.8 0.6 - 3,847,000 59.8 55.817 Ohio Mutual 0.8 - - 3,419,000 128.0 119.918 Hartford 0.7 0.8 0.8 3,270,000 99.1 79.719 Tower Group 0.6 1.4 - 2,843,000 65.6 63.020 State Farm 0.6 0.6 0.7 2,628,000 84.6 109.1



1 Allstate 16.1 16.4 16.3 35,618,000 46.5 47.0 2 Progressive 12.1 12.8 13.9 26,796,000 70.8 71.0 3 Amica 10.7 10.6 10.6 23,671,000 68.4 78.3 4 MetLife Auto 10.3 9.8 9.0 22,834,000 54.3 55.0 5 Berkshire Hathaway 9.3 8.3 7.7 20,572,000 82.2 84.5 6 Liberty Mutual 8.1 7.8 7.4 17,861,000 58.6 58.7 7 Nationwide 6.5 7.0 6.9 14,383,000 58.1 57.3 8 USAA 5.2 4.8 4.9 11,571,000 68.2 73.3 9 Travelers 3.9 3.9 3.9 8,729,000 71.6 72.910 Mapfre 3.4 3.6 3.5 7,425,000 69.6 66.511 Main St. America 1.8 1.6 1.3 3,930,000 89.2 89.812 Integon 1.5 1.5 1.7 3,263,000 77.6 77.813 Harleysville 1.2 1.3 1.3 2,684,000 57.6 58.614 Selective 1.2 0.9 - 2,573,000 70.0 72.215 Tower Group 1.0 1.4 - 2,193,000 55.9 57.316 Ohio Mutual 0.9 - - 2,073,000 58.1 57.917 Quincy Mutual 0.9 0.9 1.0 2,015,000 76.5 77.418 Prov. Mutual 0.8 0.6 0.5 1,678,000 121.6 132.319 State Farm 0.7 0.7 0.7 1,571,000 76.5 77.920 Hartford 0.6 0.7 0.7 1,245,000 46.2 47.1

RI - Private Passenger Auto Physical Damage

2011 2010 2009Total Written Premium: 221,077,000 217,830,000 219,675,000Paid to Earned Loss Ratio: 63.6 58.3 54.8Incurred to Earned Loss Ratio: 65.3 58.2 54.5

1 Beacon 55.3 57.6 58.7 89,678,000 80.6 52.7 2 Hartford 8.3 8.2 7.4 13,442,000 56.3 87.6 3 Amer. Int. Group 6.3 3.3 3.5 10,226,000 63.4 55.4 4 Liberty Mutual 5.2 7.7 9.9 8,468,000 121.7 138.4 5 Travelers 4.3 5.5 3.9 6,903,000 81.9 108.6 6 Zurich 2.9 1.9 1.9 4,639,000 53.7 60.4 7 Chubb 1.7 1.7 1.7 2,757,000 46.0 61.6 8 MEMIC 1.5 1.7 1.6 2,416,000 84.2 66.4 9 Guard Ins. Group 1.5 1.3 1.2 2,398,000 42.9 78.110 CNA 1.3 1.7 1.2 2,084,000 92.7 143.211 Fairfax 1.2 - - 1,907,000 41.9 118.312 Old Republic 0.9 0.6 0.5 1,506,000 43.6 37.613 Markel Corp. 0.8 0.8 - 1,287,000 21.6 55.514 W.R. Berkley 0.8 0.8 0.5 1,285,000 31.3 56.115 QBE 0.8 - - 1,280,000 24.1 57.816 ACE INA 0.8 1.1 1.3 1,219,000 60.5 25.817 Arbella 0.7 0.7 0.7 1,188,000 61.1 110.118 SeaBright 0.6 - - 989,000 13.4 70.819 AmTrust Financial 0.5 0.4 0.3 866,000 133.7 65.920 Meadowbrook 0.4 0.6 0.7 699,000 76.6 45.9


RI - Workers’ Compensation




1 Travelers 12.0 12.8 12.7 7,907,000 32.4 37.0 2 Liberty Mutual 10.5 9.3 7.2 6,966,000 39.9 48.5 3 Progressive 9.4 10.5 11.0 6,189,000 55.7 51.1 4 Selective 6.9 6.9 7.5 4,571,000 35.9 64.2 5 EMC 5.5 4.9 5.2 3,618,000 41.4 15.3 6 Arbella 5.4 4.8 3.4 3,552,000 61.1 45.8 7 Philadelphia 3.9 - - 2,586,000 23.2 42.6 8 Zurich 3.9 3.8 4.6 2,583,000 53.8 74.4 9 Harleysville 3.5 3.8 3.6 2,319,000 68.9 73.4 10 Hartford 3.2 3.1 3.2 2,134,000 46.9 -1.4 11 Nationwide 3.0 3.1 3.4 1,975,000 32.0 37.0 12 Main St. America 2.9 2.7 2.8 1,885,000 54.3 28.3 13 Hanover 2.6 1.7 1.7 1,723,000 14.9 50.0 14 Ohio Mutual 2.1 - - 1,359,000 32.1 39.7 15 Amer. Nat. P&C 1.9 1.7 1.9 1,283,000 33.9 52.6 16 Integon 1.9 - - 1,267,000 59.2 77.3 17 Amer. Int. Group 1.6 3.3 3.1 1,076,000 11.5 -99.9 18 W.R. Berkley 1.6 1.6 - 1,066,000 31.3 -33.3 19 Merchants 1.4 1.6 1.6 1,046,000 71.8 169.4 20 CNA 1.4 1.6 1.6 952,000 75.4 19.0

RI - Commercial Auto Liability



RI - Commercial Auto Physical Damage


1 Travelers 11.5 10.8 10.7 1,703,000 77.5 80.9 2 Liberty Mutual 8.8 8.9 6.8 1,305,000 73.3 68.4 3 Progressive 8.1 9.1 9.6 1,198,000 80.7 83.1 4 Selective 7.7 7.5 6.6 1,145,000 107.8 102.5 5 EMC 5.7 5.2 5.1 842,000 66.8 74.4 6 Arbella 4.4 3.3 2.4 657,000 126.3 122.8 7 Harleysville 3.9 4.3 4.0 584,000 91.2 91.7 8 Zurich 3.9 4.1 5.6 571,000 37.1 20.5 9 Amer. Nat. Group 3.2 2.9 3.3 470,000 63.6 62.4 10 Philadelphia 3.0 - - 446,000 69.8 64.8 11 Nationwide 3.0 3.2 3.3 444,000 61.4 61.1 12 Main St. America 3.0 2.8 2.7 444,000 107.2 107.7 13 Hanover 2.9 1.9 1.8 434,000 59.6 60.0 14 Hartford 2.8 3.0 3.0 409,000 77.1 76.7 15 CNA 2.1 2.0 - 317,000 57.2 58.4 16 Munich-American 2.1 2.0 1.6 307,000 61.0 63.2 17 Canal Group 1.9 2.3 2.0 287,000 95.3 93.2 18 Merchants 1.8 1.8 1.7 268,000 135.8 136.8 19 W.R. Berkley 1.7 1.4 - 259,000 54.2 79.2 20 Ohio Mutual 1.7 - - 244,000 100.5 105.8



1 Travelers 11.9 12.5 11.2 5,638,000 40.9 24.0 2 Liberty Mutual 11.4 11.0 9.8 5,381,000 46.5 111.3 3 Main St. America 8.4 9.0 8.7 3,968,000 34.1 5.7 4 Philadelphia 6.4 - - 3,018,000 84.9 56.5 5 Harleysville 6.2 6.2 5.4 2,917,000 73.3 91.7 6 Chubb 4.4 3.8 4.0 2,073,000 25.7 -18.7 7 Hanover 4.3 2.5 1.6 2,050,000 25.4 17.8 8 Hartford 4.0 4.2 5.1 1,871,000 50.1 34.2 9 Nationwide 3.4 3.4 3.5 1,623,000 142.7 113.2 10 Merchants 2.9 2.6 2.6 1,356,000 35.9 40.5 11 EMC 2.7 2.3 2.2 1,288,000 57.7 35.3 12 Ohio Mutual 2.6 2.6 2.5 1,242,000 27.4 45.7 13 Quincy Mutual 2.6 2.4 2.5 1,219,000 26.2 71.6 14 CNA 2.5 2.2 2.3 1,169,000 23.2 32.9 15 Allstate 2.2 1.9 1.8 1,026,000 38.0 84.0 16 Vermont Mutual 2.0 1.8 1.8 928,000 3.2 22.7 17 Amer.Int. Group 1.6 1.6 1.7 771,000 14.8 -34.5 18 Selective 1.5 1.4 - 728,000 27.0 41.8 19 Zurich 1.5 - - 722,000 5.3 -44.4 20 Prov. Mutual 1.1 - - 499,000 112.1 70.1

RI - Commercial Multi-Peril


Combined Liability & Non-Liability Multi-Peril

Liability $ 47,318,000 Paid to Earned Loss Ratio: 60.4Non-Liability 85,440,000 Incurred to Earned Loss Ratio: 53.0 TOTAL $132,758,000


RI - Commercial Multi-Peril (Non-Liability)


1 Travelers 9.4 10.0 10.3 8,066,000 48.1 85.9 2 Liberty Mutual 9.1 8.9 8.2 7,782,000 56.5 18.9 3 Chubb 7.5 7.0 6.3 6,399,000 44.6 36.2 4 Hartford 6.6 7.2 7.2 5,613,000 46.1 44.6 5 Zurich 6.0 4.9 5.1 5,088,000 72.1 81.8 6 Allstate 5.6 5.2 4.7 4,772,000 45.6 53.5 7 Nationwide 4.3 4.4 4.6 3,652,000 43.5 36.8 8 Harleysville 4.2 4.6 4.5 3,556,000 48.6 85.5 9 Philadelphia 4.0 - - 3,414,000 67.5 63.910 Hanover 3.5 2.1 - 2,998,000 85.2 92.011 CNA 3.1 3.2 2.9 2,661,000 67.4 40.112 Quincy Mutual 2.7 2.9 2.9 2,330,000 50.6 58.113 Allianz 2.5 - - 2,163,000 121.6 182.114 Vermont Mutual 2.2 2.1 2.1 1,849,000 72.3 71.015 Greater NY 2.1 2.2 1.5 1,753,000 43.5 76.616 EMC 1.8 1.8 1.8 1,573,000 76.0 87.617 Providence Mutual 1.8 2.2 2.3 1,573,000 73.8 61.818 Country Financial 1.7 1.9 1.8 1,438,000 25.7 48.019 Main St. America 1.7 1.5 - 1,438,000 53.6 19.220 Amer. Int. Group 1.6 - - 1,386,000 10.0 2.5

The Independent Insurance Agents of Rhode Island proudly introduces the 2012 Partners Program. The 2012 Partners Program is a mechanism to allow companies to demonstrate their support of the American Agency System and IIARI.

Be sure to thank your companies for their unparalleled support of IIARI and all independent insurance agents. Look for all of our sponsors throughout the coming year as we acknowledge their commitment at all IIARI events and functions.

American Commerce Insurance Co.The Andover CompaniesEMC Insurance CompaniesPeerless InsurancePhenix Mutual Fire Insurance Co.

Quincy Mutual Group

DiamondSponsor

GoldSponsors

SilverSponsor

BronzeSponsors

THANKSIIARI 2012 PARTNERS PROGRAM COMPANIES


PROFILE of an IIARI Member

ANCHOR: What are your greatest opportunities?

James E. Newell (Formerly of Starkweather and Shepley) and my Grandfather, Allen H. Chatterton, Sr. started the agency in 1924 when it was known as Newell Insurance, Inc. We changed the name to Chatterton Insurance, Inc. in 1970. Unfortunately, our records only go back so far. If the IIARI existed in 1924, as I believe it did, I would think we were a member.

I enjoy the personal contacts and relation-ships you develop in sales. I also enjoy learning about other businesses and how they operate. Particularly so in the manu-facturing sector. Unfortunately that market has almost disappeared locally. I should open a branch in China.

First and foremost our biggest challenge is competing with the direct writers and their seemingly limitless advertising budgets.My second greatest challenge is trying to fathom the constant barrage of personal injury attorney advertisements that a Rhode Island resident is subjected to on a daily basis.

The agency is trying to make inroads into the ethnic and minority market. Front line underwriting is essential in this area but if done so consistently there are many oppor-tunities.

We all have enough competition. I would suggest they go into accounting. If they disregard that recommendation I would advise them to be sure they are cut out for sales. If you have soft skin and can’t take rejection this may not be a career for you.

Besides the obvious struggles with coastal exposures and competition from direct writers I find human resources to be a chal-lenge. Although I have a loyal staff my pa-tience is often tested by personnel issues. I value and appreciate all my employees but as an agency principal, I am sure I am not alone in this experience.

ANCHOR: How long have you been a member of IIARI?

ANCHOR: What do you like most about your business?

ANCHOR: What are your greatest challenges?

ANCHOR: What advice would you give to someone interested in becoming an independent agent today?

ANCHOR: What is your biggest struggle?

Chatterton Insurance, Inc.Allen Chatterton, III150 Main StreetPawtucket, RI 02860

Employees of Chatterton Insurance include (left to right) Alexander Parmenidez, Lori Hann, Georgette Sabetta, Allen Chatterton, Bintou Chatterton and Amber Lema.


Riel v. Harleysville Worcester Ins. Co., Rhode Island Supreme Court, 45 A.3d 561 (R.I. 2012).

Summary: Robert George (“George”) was struck and killed by a car driven by an uninsured motorist while walking on Putnam Pike in Glocester. At the time of his death, George was the sole shareholder and employee of Allied Caulking, Inc. (“Allied”). At issue in the case was a commercial automo-bile policy procured by The Cormack-Routhier Agency, Inc. (“Cormack”) and issued by Harleysville Worcester Ins. Co. (“Harleysville”), which identified Allied as the named insured and George as the only operator under the schedule of opera-tors. The policy did not include a provision for uninsured or underinsured motorist coverage (“UM coverage”). Har-leysville denied a claim under its policy on the ground that the plaintiff was not entitled to UM coverage under the policy. George’s estate filed suit against Harleysville and Cormack seeking a declaration that the policy be reformed to include UM coverage (based on an assertion that R.I.G.L. § 27-7-2.1 required UM coverage be inserted into the policy by opera-tion of law) and alternatively against Cormack for breach of contract and breach of the covenant of good faith and fair dealing. Harleysville moved for summary judgment asserting that even if UM coverage was read into the policy by opera-tion of law, the estate’s claim still failed as 1) George was not a named insured under the policy and 2) George was not using or occupying a covered vehicle at the time of the accident. Cormack piggybacked on Harleysville’s motion for summary judgment and asserted that as UM coverage would not have provided coverage under the facts of the case, the alleged “failure” to procure it caused George no damages and any claim against it must consequently fail. George’s estate argued

that under Mallane v. Holyoke Mutual Ins. Co. in Salem, 658 A.2d 18 (R.I. 1995), George was a named insured because he was listed as an operator under the schedule of operators. Harleysville argued that 1) there was no covered auto involved in the accident and 2) the policy was unambiguous that Allied, not George, was the named insured and distinguished Mallane as a case involving a commercial policy, not a personal one. The trial court held that the undisputed facts established that the policy was commercial and that George was not a named insured and granted summary judgment for both defendants. George’s estate appealed and argued that summary judg-ment was inappropriate as a genuine issue of material fact existed as to whether George was named insured under the policy. The Court noted that under the policy Allied was listed as the named insured and it “is clear from these provisions that only Allied was the named insured. Notwithstanding the policy’s unambiguous language, the estate asserted that George had a reasonable expectation of coverage as he was listed as the only operator under the policy, citing Mallane as support for that proposition. The Court distinguished Mallane and held that the ambiguity that existed in Mallane did not apply here as: 1) the policy here clearly warned George that Harleysville “agreed to provide the insurance as stated in this policy” only “in return for the payment of the premium and subject to all the terms of this policy.” (Emphasis added by Court); and 2) the policy here was commercial, not personal. Ultimately, the Court held that the policy was unambiguous and that George was not a named insured. The Court also affirmed summary judgment for Cormack on the grounds that even if the policy had contained UM coverage, George was not entitled to such coverage under the terms of the policy.

CASE LAW NOTEA Review of Case Law of Interest to IIARI Members

This feature of The Anchor reviews recent case law involving the insurance industry. Please contact the author for more infor-mation: Paul M. Kessimian, Esq. ([email protected] or 401-861-8258), Partridge Snow & Hahn LLP.

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IIARI Hosts 30th Annual Education Awards Luncheon The Independent Insurance Agents of Rhode Island continued a long-standing tradition of recog-nizing the educational achievements of its members and affiliates by hosting the 30th Annual Education Awards Luncheon at the Providence Marriott. This year, we honored the following students:Accredited Adviser in Insurance (AAI) Nancy Berube Nicole Interlini Cynthia Blanco Mary Jordan Natasha Bruno Marybeth Mainelli Andrew Bucci Stephanie New Melissa Chevalier Heidi Ray-Stevenson Pablo DeOliveira Irene Resendes Jocelyn Dewey Chiara Rosa-Reid James Geary Christina Vieira Laura Honey Accredited Customer Service Representative (ACSR) Susete Aguiar Yuleydy Gonzalez Brooke Amaral Mary Hegarty Donna Bianchi Diane Manzo Julia Bridges Kelly Marrocco Laura Caramadre Catherine Pacheco Lindsay Gardella Dawn Thornber Associate in General Insurance (AINS) Dawn Adams Jon Gammell Brooke Amaral William Hunt, Jr. Andrea Dufault Michael MorosoAssociate in Insurance Services (AIS) Nancy Berube Chiara Rosa-Reid Russell Lemoi Susan Schenck Michelle Mowry Melissa Woodhouse John O’Rourke, Jr.

Certified Insurance Counselor (CIC) Jana Dionne Deborah Vadeboncoeur Stephanie Medeiros Rhonda Ziehl Diana Otero Construction Risk & Insurance Specialist (CRIS) Dawn Adams Todd Dalessio William Austin Donna Rodrigues

Group photos by designation were taken and appear on our website.

Two special IIARI Education Scholarship Awards were presented to the following:• Mary Jordan from Starkweather & Shepley

Insurance was the AAI graduate with the highest cumulative grade point average in Rhode Island.

• Lindsay Gardella from USI Insurance Services of RI was the ACSR graduate with the highest cumulative grade point average in Rhode Island.

Several members also were awarded education scholarships from the Donald J. Fallon Education Scholarship Fund. Funding for these scholarships is provided by John Woods of John A. Woods Apprais-ers. The 2012 awards were presented to:• Elisa Cardone• Vrania Coelho• Jody Fisher• Elizabeth Gallant

Donald J. Fallon Scholarship Winners Mark Male Presents Mary Jordan with the AAI Highest Grade Point Average Award

e&o corner

James C. Keidel, Esq. Partner

Keidel, Weldon & Cunningham, LLP

Christopher B. Weldon, Esq. Partner

Keidel, Weldon & Cunningham, LLP


type of transaction, since by definition a stock purchase includes all assets owned in the name of the selling entity. One or more new stockholders are replacing the previous stockholders in the selling entity or a new entity can be created to purchase the stock. However, along with the purchase of all of the assets of the selling entity in a stock transaction, the purchasing entity also assumes all of the liabilities of the selling entity. This includes any tax li-ability and any potential E&O Liability incurred by the entity being sold while still owned by the sellers, and any such liability will become the new owner’s responsibility. Accordingly, the exist-ing or contingent liabilities of the sell-ing entity must be fully disclosed and carefully scrutinized by the purchaser in any such transaction. Appropriate indemnification provisions are impor-tant to protect the purchasers from fu-ture claims of liability which the sellers may have honestly overlooked or may have been unaware of at the time the agreement to sell was executed. Tax considerations must also be addressed in advance of entering into a stock purchase agreement. Most, al-though not all, insurance agencies that are stock companies are Subchapter S corporations – meaning that they are “pass through” entities for tax purpos-es. The profits and losses realized by these companies are passed through to the owners in proportion to the per-centage of ownership of each owner. Such entities file federal tax returns for

Considerations When an Insurance Agency or Brokerage Purchases Another Agency or

Brokerage or a Book of Business The current market conditions pres-ent many opportunities for insurance agencies and brokerages with regard to the acquisition of other agencies or brokerages or books of business. There are various issues and concerns that must always be considered by both the selling and purchasing enti-ties before and during any acquisition process. As we regularly handle these types of matters, in this issue of The E&O Report we will review some of the considerations that come into play when an agency or brokerage is looking to acquire another agency, brokerage or a book of business.

Types of Purchasing Agreements: The precise type of purchase agree-ment for a particular transaction will vary in specifics from transaction to transaction. However, there are basi-cally two types of purchasing agree-ments that are used in connection with the purchase or sale of an agency or a brokerage a stock purchase agree-ment, and an asset purchase agree-ment. There are substantial differences between those types of purchase/sale transactions. Obviously, when buying a book of business, the transaction is more akin to the purchase agreement. (a) Stock Purchases – This type of transaction involves the purchase of the shares of stock of the selling stock cor-poration – in other words, a purchase of all of the business of the selling entity. There is no need to list the particular assets that are being purchased in this

entity that is a limited liability company (along with all of the liabilities of the seller), or may buy all, or a portion of, the assets of the selling limited liability company. Sometimes it is prudent for a pur-chaser to form a new entity for the purposes of purchasing the assets or business of a selling insurance agency. In such instances, it is most often appropriate to form an LLC for that specific purpose.

Other Considerations: The other considerations of a buy/sell transaction are numerous and varied, depending upon the particular transaction in question. Some issues to consider are the reactions of existing clients to the selling of the entity, and what may happen if a substantial por-tion of those clients transfer their busi-ness from the new owners. In addition, there may be issues with regard to the appointments of particular insurance carriers which should be addressed in connection with the sale.

Future Disputes Between the Parties: No one enters into a buy/sell agree-ment anticipating that a dispute will de-velop in the future. However, disputes often arise no matter how carefully the buy/sell agreement has been drafted. It is for this reason that the agreement should contain provisions as to how and where any such future disputes will be handled, including whether to arbitrate those disputes or submit the disputes to the jurisdiction of a particu-lar court for adjudication. Although arbitration and alternative dispute resolutions have gained popu-larity in recent years, that mechanism of dispute resolution may not be the panacea arbitration proponents tout it to be. Our experience has shown that

informational purposes only and do not pay federal income tax. State tax rules differ from state–to-state. (b) Asset Purchase - An Asset purchase is the more frequently used method for the purchase of an agency/brokerage or a book of business. By an asset purchase agreement, the purchas-er is only purchasing a particular list of assets from the seller for a specific price. The sale need not include all of the selling entity’s assets. Although variations exist, the purchaser in this type of transaction generally is not assuming any liabilities of the selling entity. There is still the need, how-ever, to delineate the specific financial documents provided to the purchaser in connection with the transaction and also to include appropriate and com-plete indemnification language in the agreement for both the purchaser and the seller, depending upon the facts of a particular transaction. The same considerations come into play when purchasing a book of business since the book of business is the only asset being purchased. Consideration will also have to be given as to the manner of payment for the assets. Payment can either be made in a lump sum, over a period of time, or a combination of the two. What is most appropriate depends upon the spe-cific nature of the business being sold and the financial situations of both the purchaser and the seller. A popular alternative to stock corpo-rations is the limited liability company or LLC, which has been authorized by all states, including Rhode Island. This entity combines the protection from li-ability to owners afforded in traditional stock corporations, while also allowing for simpler formation and treatment of income and losses. A purchaser may purchase the entire business of a selling



may have potential E&O exposure that must be managed. Obviously, some of the exposure will be managed by the indemnification clause in the agree-ments as discussed above. However, the seller should always seriously consider the purchase of tail coverage for any potential E&O claims that arose before the sale. The buyer must make sure that its E&O carrier is aware of the purchase and the acquired agency/brokerage must be added to their E&O policy.

Selecting the Right Counsel: Choosing the appropriate counsel can save substantial time and money in the purchase and sale of an insur-ance agency/brokerage or a book of business. Getting the lawyer involved earlier rather than later is always pru-dent, and avoids the situation where the client believes that all necessary items have been agreed to, and that the only thing remaining is to “formalize” the agreement in writing – only to discover that counsel on both sides have raised additional questions and concerns for the protection of their respective cli-ents. The clients then may be frustrated when they realize that the agreement they thought was all but completed still needs to be finalized. The involve-ment of an attorney at an early date will help avoid any misconception as to the realistic closing date for the transaction, and will actually save time and money by dealing with all issues up front. The transactional team at KWC regularly handles matters involving the purchases and sales of large and small insurance agencies/brokerages and books of business. KWC also regularly litigates issues that arise in connection with these types of buy/sell agreements. Accordingly, KWC is cognizant of many of the potential pitfalls that may

arbitration can often be much more ex-pensive than anticipated by the parties, and sometimes not substantially faster than litigation in court. In addition, the arbitration clause must be carefully drafted in order to provide for payment of administrative and other expenses, and for the precise powers of the ar-bitrators. The decision as to whether or not to include an arbitration provi-sion in the agreement should be jointly made by the parties and their counsel. It has been our recent experience that arbitration has become much more costly than merely litigating the matter in court. Thus, the decision to litigate in court or arbitrate must be weighed carefully. Another issue that the par-ties may want to consider is whether any dispute should be first submitted to mediation before any arbitration or litigation is commenced. Surprisingly, many disputes are settled during the mediation process.

Ancillary Agreements: No matter which type of purchase transaction is involved, there are often other agreements which the parties need to contemplate and possibly execute supplemental to the buy/sell transaction. Often the owner or owners of the selling entity will remain with the new owners as employees or as independent consultants. The preferred approach is to have such arrangements set forth in a separate agreement which contains all of the terms of the arrange-ment; that separate employment agree-ment should be referred to and incorpo-rated into the buy/sell agreement.

Potential E&O Claims in Connection with the Purchase or Sale: With our specialty in handling E&O matters, we would also like to men-tion here that both the buyer and seller

exist for the client in the drafting of the buy/sell documents. An insurance agency or brokerage that is contemplat-ing a purchase of another agency or brokerage or a book of business should make certain that, whether it is KWC, or another law firm, the attorneys who handle the purchase or sale fully under-stand all of the issues that need to be addressed in order to fully protect the agency/brokerage in connection with the transaction. Doing so will help en-sure that the transaction goes smoothly and the agency/brokerage can spend time focusing on its business.

The law firm of Keidel, Weldon & Cunningham, LLP concentrates its practice in handling errors and omissions claims, litigation and loss control for insurance agents and brokers. Please direct any comments or questions to either James C. Keidel or Christopher B. Weldon either by mail at the firm’s Rhode Island office located at 303 Jef-ferson Boulevard, Warwick, RI 02888, or by email at [email protected] or [email protected] or by telephone at 401-773-7730. The firm also maintains offices in White Plains, NY; Syracuse, NY; New York, NY; Wilton, CT; Philadelphia, PA and Bayonne, NJ.


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did it last year? You need to take a hard look at what you’re spending, what you’re spending it on, and the actual results your marketing achieves. Then, you need to set aside a certain percent of your gross revenue and dedicate it to market-ing.

2. Make sure you have the funda-mentals first. The fundamentals are a professional website and marketing materials to hand out to prospects. Your website needs to have content that has been updated this century, with fresh content every month. This website should showcase who you are as a small business, and it has the potential to dramatically drive in new sales. But if you don’t update it with new promotions and areas of interest, and work to make sure your prod-ucts and services are properly found by these potential customers, your website will be no different than a static brochure. The top products and services your sales people are promoting should be front and center on your website. At the same time, the marketing materi-als handed out by your salespeople should match what is promoted on the website; the great thing about the Web is that you can have all the details about your product and ser-vices, complete with videos, white papers, etc., that a handout never can include.

3. Ensure that your customers

John HouleJH Communications

marketing thought


Integrating Your MarketingMaximizes Your Results

Every business owner or manager has gotten that sales call. It’s that silver bullet answer for all your marketing. It’s that one specialty publication, ad campaign, SEO and SEM package that is the answer for your marketing needs. As someone who has been doing this for nearly twenty years, let me tell you the truth – that one marketing solution does not exist. It is as much snake oil as the salesman on the other end.

Do you want to know what actually works? It’s implementation and execution. In fact, the very best ideas often fall victim to a lack of execution. Often-times campaigns start with such vigor and only teeter into obscurity. So then what is the solution? Read on and I will give you my best answer. But, first I will not pretend that I am some advertising oracle, and what I write will solve your marketing mal-aise. Instead, I’m going to share with you some solid strategies and market-ing advice that are time tested and true.

1. Have a plan that starts with a marketing audit. What did you spend on marketing and advertis-ing last year? What worked and what didn’t? Do you keep spend-ing money in that same newspaper or TV station simply because you

Your website, email marketing, advertis-ing, PR, and internal and outside sales should all be in concert.

How do you know what is the best mar-keting option for your business? It starts with targeting. Who is that customer you’re going after? Are they women 35-45? Or is it men 25-34? Or is it CEO’s? Once you determine whom you want to reach, then you have to look at the best vehicle to reach that targeted consumer. What do they watch on TV, what radio stations do they listen to, what do they read? Design a campaign that targets them directly. For example, if you’re trying to reach men and women, 35-54, you’re best bet is still the local TV news. These consumers still want to know what’s happening in their local com-munity. They watch the weather to plan for their weekend, and they want to know how their local team did. You can target that same consumer on his or her way into work with the right radio station, and when he or she comes home you can have an ad in their local community paper. And of course, all these ads have the same primary mes-sage, the same sales pitch, and the same promotion. So, now that you have some solid marketing advice, remember the most essential thing – execution. You have to do it. You have to commit and imple-ment these campaigns consistently over the course of time if you actually want to see results.


really know all the services you provide. This should go without saying, but how many times have you heard from a customer that they weren’t aware that you pro-vided a certain service? Sometimes they pigeonhole you into the one product or service that you cur-rently provide them. You need to be actively cross-selling your products to your customer base. We’ve all heard the saying that it’s far more cost effective to keep a customer than to find a new one. What are you doing right now to make sure you’re effectively telling your best prospects – your current customers – all that you have to sell? Are you sending targeted letters or emails that are customized to each current customer on current products you are selling? You know that the more products and services you sell to your customer, the less likely they are to leave you, because you have become indispensible to them.

4. Put your external advertising dol-lars where your potential custom-ers are. I cannot tell you how many pitches I have heard from TV, ra-dio, newspaper, and web providers about the best advertising campaign ever. Today, we have TV stations, radio stations, and newspapers selling web ads, and yellow page directories are now online experts.


wc update

Michael LynchVice President, Legal

Beacon Mutual

Temporary Disability Insurance (TDI). The General Assembly clarified two ambiguities relating to an injured workers’ entitlement to TDI benefits if that worker previously settled a work-ers’ compensation claim for an unre-lated injury. (H8076, S2886). Medicaid Liens. As part of the Gov-ernor’s budget, an automated process was implemented by the Executive Office of Health and Human Services for identification and reimbursement of Medicaid Liens. It is expected that the Executive Office will shortly be issu-ing Rules and Regulations outlining the specifics of how to comply with this change. (H7323, Article 11). Courts and Civil Procedure. Chang-es were made in the law governing how expert affidavits are used in civil litigation, which include the Workers’ Compensation Court. This change is not expected to negatively affect work-ers’ compensation in any way. (H7559). Information Sharing. As an indirect result of the work done three years ago by the General Assembly’s Task Force on Misclassification and the Under-ground Economy, a bill became law this year that requires and authorizes the sharing of information between the Department of Labor and Training and the Department of Revenue for pur-poses of fraud investigation. This is a big step in identifying and preventing misclassification. (H7564). Contractors Registration Board. This bill expanded the authority of the Board to suspend a contractor’s license for failure to carry workers’ compensa-tion insurance. (H7995).

The Rhode Island workers’ com-pensation system was the subject of a relatively small number of legislative changes in the 2012 General Assembly session. The Rhode Island Supreme Court also recently released opinions in cases affecting workers’ compensation. Finally, work continues at the grass roots level on potential legislative and policy changes for next year. The fol-lowing will summarize all of the above and more with the goal of helping you better navigate one of the best function-ing workers’ compensation systems in the country.

LEGISLATION

Only three legislative changes were recommended to the General Assembly by the Workers’ Compensation Adviso-ry Council. Consequently, there was no true “omnibus bill”. Other legislative changes occurred that indirectly affect the system. The following is a sum-mary of what occurred at the General Assembly this year that impacts work-ers’ compensation: Uninsured Employers Fund. The General Assembly created an Unin-sured Employer Fund in 2007 but has yet to fully capitalize its operation. While the filing fees at the Workers’ Compensation Court go to the Fund, these monies are not enough. The Gen-eral Assembly has delayed the Fund’s operation since its inception until funds are available. The General Assembly delayed its implementation again this year and its applicability to injuries that occur on and after January 1, 2013. (S2301, H7614).

Workers’ Compensation - What is Going On?


to be at MMI. It is too early to tell the impact of these new endeavors on the system.

WORKERS COMPENSATION COURT

At the Court, the calendar remains a model of efficiency. Pretrial hear-ings are still scheduled and held within twenty-one days of filing and resolution continues to occur in the vast majority of cases at this level. This allows the timely trial of the more complicated issues that deserve and need a full trial. There is a vacancy at the Court with the retirement of Judge Bruce Morin and the Judicial Nominating Commission has made its recommendations for re-placement to the Governor. The Gover-nor nominates a replacement from a list of recommended candidates and sends that selection to the Senate for advice and consent. To date that nomination has not been made. The Appellate Division of the Work-ers’ Compensation Court continues to render decisions, although the number of appeals from the trial level is very few. Of the six Appellate Division de-cisions rendered this year to date, only one appeal was sustained; the remain-der affirmed the trial judge. That one case, Cappalli v. City of Providence (WCC 2009-00576) and a decision rendered last term in Rothemich v. St. Joseph’s Hospital (2006-07906) bear watching as the Supreme Court has accepted certiorari on petitions filed by the injured worker. The subject mat-ter of both decisions is the “Gate” of 312 weeks and the definition of “mate-rial hindrance”. The full texts of the decisions are available at http://www.courts.ri.gov/Courts/workerscompen-sationcourt/AppellateDivision/default.aspx. The Rhode Island Supreme Court

WORKERS’ COMPENSATION ADVISORY COUNCIL

The Workers’ Compensation Advi-sory Council is done meeting for this session. One subcommittee remains active and is studying the employer’s burden of proof in prosecuting peti-tions to review at the Court. No con-sensus was reached on the subcom-mittee studying the exclusive remedy protection afforded the client company (special employer) in the temporary employment relationship so there was no recommended legislation on this issue this year. Next year the Advi-sory Council will be busy with issues including capitalization or further delay of the Uninsured Employer Fund, the “Gate” and the definition of “material hindrance”; and a host of other sug-gested legislative changes.

DEPARTMENT OF LABOR AND TRAINING

The Fee Schedule Task Force has met and it is studying all medical fees. It is expected that the Director will be making changes to the fee schedule this fall. The Dr. John E. Donley Rehabilita-tion Center falls under the umbrella of the Department. The Donley Center has yet to implement the recommenda-tions made by the Advisory Council originating from its Donley Center Task Force. The Center is, however, busy implementing two new programs originated by the Workers’ Compensa-tion Court to assist workers’ who have lump sum settled their claims and those who have been found to be a maximum medical improvement (MMI). The two programs are aimed at assisting work-ers looking for work post-settlement and providing vocational services to workers who are found by the Court


MEDICAL ADVISORY BOARD

The Medical Advisory Board con-tinues to re-visit the protocols that it has established over the years. On the agenda for the future are changes to the Pharmaceutical Protocol and the devel-opment of a Chronic Pain Management Protocol. The Board will be meeting again in early September.

In conclusion, many developments have occurred over the past year that both directly and indirectly impact our state’s system. Without this awareness, our system and its efficiencies could shift to the detriment of its primary stakeholders; the employees and em-ployers of our state. Please feel free to contact anyone here at Beacon with questions in regards to the above.

has rendered two decisions this term directly impacting workers’ compen-sation. In LaFreniere v. Dutton, 2011-244-Appeal (RISC), the Court reaffirmed the viability of the exclusive remedy doctrine in Rhode Island by affirming a summary judgment order of a trial judge in the Superior Court. In Gallagher, et al v. National Grid, et al, 2011-111-M.P, 2011-113-M.P, (RISC), the Court affirmed the decrees of the Appellate Division that found that in occupational disease cases, the burden is on the petitioner to prove liability and exposure against each em-ployer including the last employer. Both of these cases may be accessed at: http://www.courts.ri.gov/Courts/SupremeCourt/Opinions/Opinions%20 (2011-2012).

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