Panera Profits

I liked Laura Mazzuca Toops' blog article “Apple, Panera and the Profitability of Ethics”(propertycasualty360.com, Feb. 23)  

Some people believe that ethics are situational. I believeethics are “locational.” There are three Panera locations that Ihave visited.

At one location, after filling up a frequent buyer card, theytold me they no longer accept them (strike one). At a secondlocation, I have been shorted bagels not once, but twice, which wasnot discovered until after leaving the store (striketwo). 

At the third location, I explained the above to an employee atthe counter. I left the third location with a few extra bagels anda genuine apology (home run).

When we—insurance companies or agencies—mess things up, will weget a third chance to hit a home run?

Phil Minshall,CPCU
Dansville, Mich.

Resonate Reagan

I enjoy reading Laura Mazzuca Toops' contributions to PC360.com.Her writing style is straightforward and insight significant. Theblog article, “SmallBusiness Holds its Nose to Vote” (propertycasualty360.com, Feb.16) on small business perception that President Barack Obama is abigger supporter of small business than Mitt Romney isbreathtaking. Because Romney's strength is his business experience,and Obama has done nothing but make the business environment morechallenging and costly, I guess there is a need to educate smallbusiness as to their real friends and foes.

It would be interesting to see the sample size and wording ofthe questions from the Manta survey. At any rate, the Republicanfield needs to pull together and create a message that can resonatewith the American people despite the bias of the American press.Reagan did it, so it is not impossible. 

SalProvenzano
Riverside, Conn.

Weblining Woes

I am a big fan of the magazine and Laura Mazzuca Toops' articleson PropertyCasualty360.com. In the past I have wanted to respond tosome, but this particular article, “Redliningis Back—On the Web,” (propertycasualty360.com, Feb. 9) hithome.  

Our agency is participating in a Social Media Pilot Program viaThe Hartford, administered by Hearsay Social, and I act as ouragency's administrator for this pilot. Hearsay posts weeklysuggestions and content for us to upload to our Facebook andLinkedIn profiles on a weekly basis. Recently, they posted asuggestion: “Consider emailing friends and family asking them tojoin your fan page. Having a large fan base is a great way to showpotential customers that you are a legitimate, trustworthybusiness.” However, when I forwarded this email to our agencystaff, I not only received pushback from our president, but from amajority of our staff, who offered  valid reasons rangingfrom “I keep my personal life separate from business” to “I don'twant a photo from 20 years ago being tagged and cross referencedwith our business Facebook page.”

So, now we have this other issue to ponder. As if credit scoringwasn't enough to affect the outcome of a prospect/client insuranceplacement, now we will have to be subjected to Big Brotherwatching. As both an agent and consumer, I can see this becoming adefinite problem—not only as it relates to our issue of privacy,but how it creates havoc when marketing or re-marketing a risk. Howwill we know if aggregate data is the culprit, and what is one'srecourse to challenge the data? The sad reality is that as theworld is seemingly getting smaller via social media, I suppose it'sinevitable that it would head in this direction.  

Denise L.Kelly 
Long Island, N.Y.

Valuable Lessons Learned

I look forward to receiving American Agent & Brokerin the mail and first turn to Down to Cases. When reading the lastparagraph of “ValuedAdvice” (AA&BFebruary 2012), I came across this sentence: “The agent shouldhave gone over the meaning of the policy at the time it was issuedand attempted to sell replacement cost coverage since it would haveearned him a higher premium.”

I know we all work to make money to feed our families, butshouldn't that sentence read “The agent should have… attempted tosell replacement cost coverage since it would have been in the bestinterest of the insured”?

That is how I was taught since day one, “do what is in the bestinterest of the client” and the money will follow.

Buddy Butler
Seattle

Barry Zalma wrote a great article, “ValuedAdvice,” in the February issue of American Agent &Broker. His articles have significantly opened my eyes.

Can he expand on how to exercise broad discretion in servicingthe insured's needs or offer a short example of how this could bedefined?

Paul JArnone
Kansas City, Mo.

Zalma response: Discretion for an insuranceagent or broker, or for an insurance company, is to be prudent andconsider all of the needs of the person to beinsured. 

Although the law in most cases only requires an insurance agentor broker to provide the insurance the person to be insured asksthe agent or broker to provide, a broker using a broad discretionuses the broad knowledge of the insurance industry, a completeknowledge of the person to be insured, and explains to the personto be insured the opportunities and types of coverages that mightbe needed. By so doing the insured can then choose or not chooseand if the agent or broker's file is well documented, he can avoidthe type of litigation discussed in the article.

Of course, holding oneself out as an expert can create afiduciary relationship and can be dangerous, so it must be madeclear to the insured and documented in the file that all the agentor broker is doing is offering opportunities, not makingsuggestions as an expert of all the insurance needed. That is why Iused the word “discretion” and why what the agent or brokersuggests to a potential insured must be done prudently.

For example, when an insured comes to a broker and asks for fireinsurance on a house where the insured lives, he or she can justsay “Okay,” or can, with prudence, say there are other coveragesavailable that might interest the insured, like a homeownerspolicy, a fire and extended coverage policy, or other coveragesthat might be important to the insured and for which the insuredmight wish to consider.

When it Rains…

I certainly enjoyed reading Chris Amrhein's article “RainBlame” (AA&BJanuary 2012) regarding the “dog and cat fight” between theNFIP and the dwelling form coverage. Even though I deal with largecommercial accounts, I am from south Mississippi and have weatheredmany, many hurricanes. 

Amhrein's concept of a “hurricane policy” should be given muchthought and consideration. NFIP certainly has its own issues aswell as FEMA. Many of my friends and family lost everything afterHurricane Katrina. The claims process for a few of them wasunfathomable: “Did the water or wind come first?” They had to dealwith that crap from their agents and adjusters—not to mention someof them only had the clothes on their backs. Does it really matterwhich came first? They lost everything!

Our industry is evolving daily and yes, we need to streamlinesome of these types of coverages to fit the circumstances and makeinsurance conform to what it should be.

CindyRawls
Hattiesburg, Miss.