Sharon A. Chace

Remember the film “Groundhog Day,” where Bill Murray was a television weatherman sent off to cover the events surrounding Punxsutawney Phil’s annual appearance on Groundhog Day? During his visit, something happened and he relived the same day over and over until he finally did the right thing. Well, that came to mind recently as I was reading the latest blogs and news releases about annuities.

Glenn Neasham’s situation in California continues to appear in the news. Remember, he was the producer who sold a $175,000 annuity set to mature in 15 years to an 83-year-old woman who was later found to have dementia. Neasham was prosecuted and found guilty by a jury. Since then the verdict was overturned, then the state of California asked for a review of the verdict, which was denied…but the situation keeps coming up in the news over and over again.

Then there’s SEC 151A. Back in 2008 the Securities and Exchange Commission moved to classify indexed annuities as securities, but that maneuver was finally put to rest with the Dodd–Frank Act, which put the control of annuities back in the hands of the state insurance departments. But we’re revisiting that situation once again—with the thought that annuities might be a new tax opportunity. According to NAFA, the Congressional Budget Office projected the potential for an additional revenue to the government of $30 billion. The organization also confirmed in their “Regulatory Watch,” on December 14, 2013, that “Across the Hill, as we had originally suspected, we can now also confirm that the Department of Labor (DOL) [is] in fact planning to re-propose their Fiduciary rule,” which, among other things, proposes to raise standards for brokers providing retail investment advice.

While all of this information is important, what we really need to be focusing on is that the insurance industry has experienced excellent growth for most annuity sales during the last half of 2013. Let’s look at LIMRA’s facts for the third quarter:

“Fixed-rate deferred annuity sales increased 66 percent in the third quarter 2013, compared with the third quarter 2012, according to LIMRA Secure Retirement Institute (SRI).

“Overall, total annuity sales for the quarter increased to $59.4 billion, a 9 percent increase—the largest year-over-year growth since the second quarter 2011. For the first nine months of 2013, total annuity sales were $167.6 billion.

“In addition to the substantial growth experienced by fixed-rate deferred annuities, indexed annuities grew 15 percent in the third quarter to hit a new peak of $10 billion. This growth was driven by improvements in the interest rate environment, increasing demand for accumulation-type annuity products.

“Total fixed annuity sales improved 31 percent in the third quarter over the prior year to reach $23.5 billion—a level they have not reached since the third quarter 2009. Year-to-date, fixed annuity sales rose 6 percent, totaling $58.0 billion.

“Fixed-rate deferred annuity sales—book value and MVA—were $9.5 billion, the highest quarterly total since the second quarter 2011. YTD, fixed-rate deferred annuities sales improved 5 percent.

“In the third quarter, market share for fixed-rate deferred annuities rose 10 percentage points to reach 40 percent of total fixed annuity sales.

“For the first time, quarterly indexed annuities sales reached $10 billion—an increase of $1 billion from the prior quarter. Most of this increase over the second quarter came from accumulation-type products. YTD, indexed annuities sales increased 6 percent, to reach $26.8 billion.

“Variable annuity (VA) sales declined 2 percent in the third quarter, to reach $35.9 billion. YTD, VA sales were $19.6 billion, falling 2 percent from the prior year. Election rates for VA guaranteed living benefit (GLB) riders were 81 percent (when available) in the third quarter, down one percentage point from the second quarter of 2013.

“Deferred income annuities (DIAs) reached $555 million in the third quarter, an increase of 106 percent compared to the prior year. In the first nine months of 2013, DIA sales grew 132 percent to $1.5 billion and are on pace to surpass $2 billion by the end of the year, which would double 2012 results.

“Fixed immediate annuity sales were up 5 percent in the third quarter, to reach $2.1 billion. YTD, fixed immediate annuity sales totaled $5.7 billion, matching sales from one year ago.”

The outlook is sunny for annuities, but let’s hope it isn’t for Punxsutawney Phil on February 2! [SAC]

The National Association of Inde­pendent Life Broker­age Agencies (NAILBA) presented Jack Dewald, president of Agency Services, Inc., with its 2013 Douglas Mooers Award for Excellence.

The annual award, NAILBA’s most coveted and prestigious accolade, honors distinction in brokerage and is bestowed upon the individual most committed to furthering independent life brokerage as a distribution system, and who demonstrates an exemplary record of community service. Dewald was recognized at a special awards dinner held November 22, 2013, as part of the association’s annual meeting, NAILBA 32.

In presenting the award, Dexter S. Umekubo, CLU, ChFC, Producer’s XL, NAILBA Immediate Past Chairman, recognized Dewald as a “shining example of what the Mooers Award represents.”

Dewald has been in the life insurance industry for more than 30 years and has served in a variety of volunteer leadership positions, including a year in service as chairman of NAILBA.

His work at Agency Services, Inc. includes key broker development, management of the agency’s key insurance carrier relationships and staff development. He is also a frequent speaker and author, and proceeds from his book, Ten Sales Concepts to Relish, Remember & Repeat, support both the NAILBA Charitable Foundation and the LIFE Foundation.

In addition to serving as a chairman of NAILBA, Dewald has served as chairman of the LIFE Foundation and is the current chairman of The Marketing Alliance. He served on the board of the NAILBA Charitable Foundation and is past president of the Memphis NAIFA Chapter and the Memphis Health Underwriters Associa­tion. He is also a member of the prestigious Million Dollar Round Table.

Dewald is also active in his community and has served on three different boards of trustees for private schools during the past 20 years. He is an active member of his church and his local Rotary Club. He is also a devoted husband and father.

“I am delighted to recognize Jack with this award, and I am grateful for his leadership, generous philanthropy and service to our industry and the community,” said Umekubo.

Raymond S. Phillips, Jr., CLU, LTCP, The Brokers Source Ltd., 2013 chairman of NAILBA, selected Stephen P. Howard, publisher of Broker World magazine as the recipient of the 2013 NAILBA Chairman’s Award.

The award, created in 2009, was developed to recognize the efforts of a NAILBA volunteer who has performed “over and above” normal expectations during the chairman’s term.

In presenting the award to Howard, Phillips observed that he has “served enthusiastically on the membership committee and the professional development committee, and is currently serving on the board of directors of the NAILBA Charitable Foundation. He sells raffle tickets at the annual meeting every year on behalf of the foundation and helps out at the closing reception and golf awards every year.”

Phillips concluded, “You are such an asset to NAILBA and the Charitable Foundation. We are grateful to have you in our corner, not just for your professional support but also for your personal enthusiasm.”

George G. Davidson, CLU, ChFC, RHU, DIA, CLTC, president of Secura Consultants, Minneapolis, MN, was awarded the prestigious W. Harold Petersen Award at the International DI Society’s recent meeting.

The award is open to individuals who have demonstrated dedication in the field of disability insurance, exhibit leadership in their professional life and, most importantly, have made a distinctive contribution to the disability industry.

The award is in honor of W. Harold Petersen, RHU, DFP, who has been a leader in the disability insurance industry for more than 60 years and has dedicated his professional life to furthering the disability insurance product, creating awareness both within the industry and with the consumer.

Davidson entered the financial services industry in 1982 and, motivated by a desire to offer financial professionals an ethical resource for disability insurance products, he founded Secura Consultants in 1995. Raised in North Carolina, Davidson is a graduate of Appalachian State University. He is a frequent speaker at industry events across the country and well-known for his passion for educating producers. He is a founding partner of The Plus Group, the nation’s leading network of 22 independent brokerage offices specializing in income and asset protection plans.

On behalf of The Plus Group, Tracey O’Malley, executive director, said, “The Plus Group is honored that George received this award. He is a founding partner of The Plus Group and currently sits on the board. His contributions to the group, as well as to the disability insurance industry, are too numerous to mention. George’s innovative ideas, DI knowledge and professionalism make him worthy of receiving this prestigious award, and I know that he is deeply honored.”

The brokerage business is truly built on relationships; and while relationships with clients are of the utmost importance, most would agree that their friendships with other brokers are a very close second. Broker World was built on these brokerage friendships, and we are sad to say that three long-time friends/supporters have recently passed away.

The first is a well-known and seasoned veteran of the DI market (since 1977) and founding member of the International DI Society, Ron Cohen, RHU, Ron Cohen Agency, Houston, TX. Ron was one of our “go-to” people when we needed to know what was going on in the DI business.

Next is Arthur Rothlein, Arthur Rothlein Agency, Inc., Valley Stream, NY. A founding member of National Brokerage Agencies, Inc., Artie opened the doors of his brokerage general agency in 1967.

Last, but not least, is Carlos Whaley, a true pathfinder in the early days of technology. He was executive vice president and led information technology at First Colony Life until he retired. Since then he has been a “gentleman farmer” in Greeneville, TN.

All have dedicated their lives to the insurance business, and their contributions won’t be forgotten. [SAC]

Jay D. Jervey

1930-2013

Jay Jervey passed away September 5, 2013, following complications from a stroke. He had a million dollar smile and was a friend to many, including everyone at Broker World.

John “Skeeter” Coleman had this to say about Jay:

Jay Jervey performed his first solo skydive at the age of 65—he was always a risk taker. Some say he was a contrarian, others, a curmudgeon. Whatever their description, it is challenging to delineate the many attributes of the man who, at the young age of 17, convinced military authorities that the Korean conflict could only be won if they allowed him to enter submarine school—and they did. His naval scuba diving career resulted in a burst tympanic membrane, so he transferred to the U.S. Air Force and became a cryptographer.

After his military career ended, a five-year stint as an underwriter in Prudential’s home office in Jacksonville preceded five years with American Heritage Life. Then Jay and three business partners formed their own life insurance company, American Life, which they later sold, resulting in Jay starting his independent brokerage agency in 1967.

To some home offices Jay was their worst nightmare, as his tenacity for broker and consumer representation bordered on harassment. His mantra, “think standard!” served his brokers and their clients extremely well for the 40-plus years he represented them. His pride in being a member of the Risk Appraisal Forum was superseded only by his hole-in-one in 1977 on one of the 312 golf courses he had played. His passion for golf was superseded only by his thirst for the 19th hole.

Jay’s beneficence to the less fortunate is legendary. Whenever someone came to his office for a financial infusion, Jay would invite them into his office, where he would discuss their situation, provide words of encouragement and then bestow the individual with much needed funds. He would make up work for many to perform so they could earn their ‘pay.’

Jay had the foresight to buy a long term care policy shortly after they were introduced. It served him well both at home and during his brief tenure in a nursing home following his stroke four months prior to his death. His entire family had visited him just the day before, and Pam Jervey, his devoted wife of 25 years, was with him when he died peacefully.

Whenever asked how he was doing, his legendary reply was: “There’s nothing wrong with me that the lottery won’t cure!” To the man who refused to wear a seatbelt and who never took his meds, we’re glad you finally got your winning ticket. [JSC]

Robert G. Poage

1928-2013

Robert G. (Bob) Poage was born in St. Joseph, MO and spent his youth on the family farm. Bob enlisted in the U.S. Navy in 1948 and served his country as a naval aviator, flying Navy fighter planes for two years off the deck of the USS Boxer.

Bob entered the life insurance business in 1959 as an agent with The Equitable Life Assurance Society of the United States, in Sacramento, CA. In 1968 he founded Robert Poage Insurance and Financial Planning Center, Inc.

Recognized and honored as an innovator and a pioneer, Bob was one of the first independent insurance agents to fully automate his agency with a computer, in 1971, writing his own software programs for agency management systems. Bob’s own commission tracking program later served as the agency commission accounting platform for the PDQ Agency Management System developed by First Colony Life.

In 1982 Bob founded his brokerage general agency, Poage Center Insurance Services, Inc., with his oldest son, Robert G. Poage, Jr. The agency grew quickly from a local/regional BGA into a national distributor of life insurance and annuity products. Poage Center was acquired by BISYS Insurance Services in 1999. Poage Center Insurance Services was a member of LIFE, Inc. and a founding partner of LifeMark Distributors.

During his years as a brokerage general agent, Bob was very involved in the National Association of Independent Life Brokerage Agencies. He was chairman of that organization in 1990 and served on numerous committees.

After Poage Center Insurance Services, Inc. was sold to BISYS Insurance Services, Bob and his wife, Dottie, retired and moved full time to their home in Palm Springs, CA, where Bob pursued his love of golf, flying and trading securities.

Bob was pre-deceased by Dottie in 2012; she was the love of his life for 59 years. Bob is survived by his sister, Frances Bowles, and his brother, Leroy Poage, both of St. Joseph, MO; his sons, Robert Poage, Jr., (Amy) of Rocklin, CA, and Harold Poage (Bonny) of Auburn, CA; and five grandchildren.

Bob will be greatly missed by many, but always remembered for his countless contributions and commitment to life insurance brokerage.

Back in the late 1970s, after I completed commercial art and marketing communications coursework at a local college, a friend of mine told me about a job that had just opened at a life insurance company. Of course, my response was that I wanted to get into a more reputable industry because, in my mind, insurance companies and agents ranked in the same category as used car sales. The need for a steady income won over and I reluctantly took the job—and, in retrospect, my impression was way off about the insurance industry and the professionals involved in it, but I digress.

The company I joined had less than 100 employees and I was immediately impressed with everyone’s willingness to share their knowledge of the business and assist me in any way necessary. The regional marketing directors quickly accepted a woman into their quarterly marketing/planning meetings (being the first woman to attend one of these events, only one attendee asked me to get him a cup of coffee—and that situation was handled quickly by a male coworker who handled the request).

Six months into this new career, the opportunity to attend the company’s convention for top producers (some of whom I still am in contact with today) was provided. That’s when my impression of insurance sales professionals began to change—not just because they paid my salary, but because the majority of them were so dedicated to their profession and the people they served.

As the years passed, I had the privilege to meet so many producers whose love of the business was contagious. They became real life superheros to me—because I was able to witness how they truly made the world a better place!

You’re probably thinking that’s a bit of an exaggeration, but think about it. Superheros have a great amount of energy, exceptional skills, a strong moral code and sense of responsibility. Plus most work independently and are skilled detectives. Granted, most producers don’t wear costumes (except in the 1970s when leisure suits were in style), most are not independently wealthy, and most don’t keep their identity a secret.

What these superhero agents do that is most important is “protect” those in need—they truly are guardians of the family structure, business continuation, retirement security and estate preservation.

How could anyone not be proud to be in the insurance industry?

Do you have a superhero who has inspired you to be in the insurance industry? If so, call him or her today and say thanks. If you have a superhero who deserves to be recognized, please drop me a note (schace@brokerworldmag.com). Broker World always wants to recognize those who have contributed to our industry by assisting clients and other agents.

One last note: Hello to one of my superheros, a woman who has been in the insurance industry in Charlotte, NC, for nearly 45 years, Vivian Bowman. [SAC]

W. Harold Petersen was recently presented with a special citation of recognition from the California State Legislature for more than 50 years of contributions as an advisor, highlighting the importance of disability insurance awareness. The citation was signed by Speaker of the California Assembly John Perez.

Petersen is considered one of the great advocates and educators for disability insurance; he has been in the insurance industry more than 65 years and has always focused on disability insurance. Starting at Mutual of Omaha, he has worked in all capacities within various insurance carriers (including president). However, he is most well-known during the past 30 years as founder and patriarch of Petersen International Underwriters, which specializes in unique, special risk and excess disability programs. Broker World is honored to have him as a regular contributor.

Another long-time friend to Broker World, Barbara Crowley, president and chief executive officer of Brokers Clearing House, Ltd., was named 2013 Woman Business Owner of the Year by The Business Record, a Des Moines, Iowa publication.

The Business Record’s Women of Influence award celebrates the work of women who have made a difference, either personally or professionally, in the lives of others. This year there were nine honorees.

Crowley joined her father, the late Bob Hoefer, in the insurance brokerage business in 1978. Today, 35 years later, she leads a team of 25 employees and her agency represents about 70 insurance carriers and markets life, long term care, disability and annuity products to insurance agencies, banks, investment advisors and to other organizations that sell them to the public.

As a second-generation industry leader, she has served on the board of the National Association of Independent Life Brokerage Agencies for four years. In November she will become chairperson of that organization—one that her father helped establish in the early 1980s. She is also a founding partner of LifeMark Partners, Inc., one of the largest marketing groups in the industry. Crowley is an avid supporter of “just about anything that the Des Moines Performing Arts promotes.”

Kudos, Barbara, from your friends at Broker World. [SAC]

Well-known LTCI expert and author Phyllis Shelton, LTC Consultants, Hendersonville, TN, has responded to an article published by the New York Times on June 8, 2013, “Fine Print and Red Tape in Long-Term Care Policies,” written by personal finance reporter Tara Siegel Bernard. If you are selling LTCI, you need to be aware of the article (which can be found at http://nyti.ms/108Exbh) and prepared to discuss it with your clients. Phyllis Shelton’s excellent response follows:

“The fact that I’m writing this response shows how important it is to me that no one has doubts about LTCI. Please let me lay any concerns to rest by sharing how I responded to a client’s question about her CNA policy.

“Have there been ‘bad apples’ in long term care insurance? Of course, just like in most other industries. I just helped a daughter appeal her mother’s claim that I felt was unjustly denied, and the company honored the appeal and paid the claim. Is intervention the norm? No. Over the years, all of my clients who have used LTCI have had their claims paid with very little input from me.

“My client, who purchased a policy from CNA in 1999, expressed concern after reading the ‘Licensed Caregivers’ and ‘Alternate Plan of Care’ sections of this article that implied CNA no longer honors the alternate plan of care benefit. (FYI, CNA no longer sells LTCI, but certainly is paying claims on policies that are in-force.)

“I know the history of the alternate plan of care benefit, how it came about, and CNA’s approach to it (as well as how other carriers approach it). I can also interpret the CNA company representative’s remark in the article…

“First, the alternate plan of care (APC) option is a wonderful and important addition to any policy. But like many good things in life, it has been abused and sometimes misrepresented by well-meaning people who didn’t understand it.

“APC is intended to make a way contractually for a carrier to pay outside the contract when it is cost-effective and makes sense medically for the patient. Glen Kantor, the attorney quoted in this article, is incorrect when he says this provision wasn’t sold in a way that said the insurance company has the right to approve how this provision is used. The policy language is very clear that the insurance company, the doctor and the family must agree on how this provision is used.

“A great way the APC provision has been used is to pay for new services that come along. An example is that it has been used often to pay for care in an assisted living facility from a policy that was sold to pay only for a nursing home. Assisted living facilities didn’t exist 20-plus years ago, so policies didn’t have that coverage. Assisted living facilities (ALFs) are less expensive than nursing homes, and patients generally are much happier in them. Without an APC provision, however, an insurance carrier could deny assisted living facility claims because an ALF isn’t mentioned as a covered service in the policy.

“Another good way an APC provision is used is to allow the insurance company to pay for home modifications like widening doorways, installing a ramp, and installing handrails in the shower to make it easier for someone to stay home if it looks like the person could stay home longer than a few months. One carrier utilized the provision to buy a blind woman a seeing eye dog for $3,000, allowing her to stay home while her daughter was working.

“CNA was the first carrier to come out with APC, if my memory serves me correctly, and it was a great thing. Where it fell off the rails was when someone bought a CNA policy that paid only for a nursing home and didn’t buy the optional home care benefit. Some people bought the nursing home only policy with the impression that the APC provision would provide them with home care benefits even though they didn’t pay the extra premium for home care. That’s what the spokeswoman for CNA is trying to explain in this article. She is saying the APC provision was never intended to replace the optional home care rider. How could it, when you think about it?…

“Recently one of my oldest clients passed away after receiving about $400,000 from a CNA long term care insurance policy, so I can tell you first-hand that CNA is paying claims.

“The rest of the story is that she had me regularly review her policy. She lived in a high-cost area of California, so she started in 1999 with a $250 daily benefit with a four-year benefit period and 5 percent simple inflation, which means the benefits increased at 5 percent of the original amount each year until they doubled in 20 years. Her daily benefit grew at $12.50 each year, so her benefit pool was worth $730,000 ($425 times four years).

“My client and her husband bought the same policy, so together they had $1.46 million in benefits. There was a 30-day elimination period, thus they were responsible for the first 30 days in charges. (The New York Times article failed to mention that with many newer policies, the deductible is merely a one-time waiting period with no charges required.)

“My client and her husband were 59 and 60 when they bought their policies in 1999, and their combined premium was $4,424 annually. They paid about $62,000 in premium for the $1.46 million in benefits. If one of them had a claim today and used the entire daily benefit of $425, they would get all of their premium back in less than five months (145 days). Plus the premium would stop for the one on claim.

“Did these clients make a good decision? I certainly think so. The caveat here, however, is that premium and underwriting for a 60-year-old back in 1999 is now more for a 50-year-old, so please encourage your clients not to wait.

“In addition, health care reform means we will be paying more for acute care than we have planned, which leaves fewer dollars for LTCI, both on the private side as families try to pay for it, and on the public side as state budgets try to pay for it.” [SAC]

If a picture is worth a thousand words, imagine the value of a group of videos. The National LTC Network has unveiled a video-based website resource that helps explain why long term care insurance is important and should be considered. The concept behind the Makes a Difference website is simple: Viewers will hear how owning—or not owning—LTCI actually made a difference when they or a loved one needed care. These videos are neither theory nor a sales pitch—but real stories told by real people.

According to Terry Truesdell, president of the National LTC Network, “The Makes a Difference website aspires to join other favorite long term care resources. Producers rely on other excellent websites to help them position the problem of uninsured long term care in the sales process. One very popular resource is the Cost of Care Survey released by Genworth each year. The Medicare website (www.medicare.gov) does a great job of explaining that Medicare cannot be counted on to pay for long term care. The U.S. Department of Health and Human Services website provides credible information as well (www.longtermcare.gov). Another helpful site used by many agents is the 3in4 Need More website (www.3in4needmore.com).

“The Makes a Difference website is not just for those in the industry, but for consumers as well. There is no find-an-agent functionality, no place to request a quote, and no information about visitors is collected. This omission is deliberate, so that producers will not be reluctant to use the site in their sales process. Anyone may submit a video. However, the videos cannot be commercial: They cannot mention company names, websites or phone numbers. This is to encourage producers to share the site freely with clients and referral sources,” added Truesdell.

“As a warehouse of video testimonials and personal LTC stories, the Makes a Difference website can reach all corners of the internet to catapult the importance of long term care planning. Too often advisors and clients overlook the urgency of this topic, which is why I’m happy to support the effort and look forward to referring prospects to the new site,” said Stephen D. Forman, senior vice president of LTCA, Bellevue, WA.

Julie Gelbwaks-Gewirtz, Gelbwaks Executive Marketing, Plantation, FL, added, “The ability to share my family’s story on the Makes a Difference website is wonderful—I hope that our experience will make it easier for other families. My family is in the LTCI business as the direct result of my grandmother’s need for LTC. The fact that she was uninsurable made us realize that anyone who can buy insurance should.”

Truesdell said he hopes that as more and more videos are posted, the resource will become an even more powerful marketing tool. As the content and activity grows, the site’s “likeability quotient” will rise in search engines such as Google and Bing, thus increasing the odds that consumers looking for information are more likely to find and watch the videos.

The National LTC Network hopes that videos will reach consumers who may not be interested in wading through either text on websites or the mountain of paper information available on LTC planning.

Truesdell said, “Long term care insurance is not an inexpensive, impulse buy. Thus the purchase must be seriously reviewed by consumers and their advisors. The website will help consumers more accurately assess the benefits of LTCI when considering whether or not to buy—and the videos will communicate the true cost of not being insured (beyond just dollars and cents).

“It’s simple to share a video at the site,” Truesdell added, “and they do not need to be professionally done. Videos can feature anyone and be submitted by anyone: producer, insured, caregiver, family members, etc.”

Videos are reviewed before they go live at the site, and complete information about what is required can be found by going to www.makesadifference.us and clicking on the “Share Your Story” tab. Everyone is encouraged to include their name, occupation (if applicable) and location in their video.

“The National LTC Network invites you to visit the site and see how the Makes a Difference site can make a difference for you and the people you serve,” concluded Truesdell. [SAC]

Using the “Makes a Difference” Site

• When making a presentation at a service club or a networking meeting, select any of the videos on the site to accompany your talk.

• Your email signature could suggest “Watch three videos at this site to learn more about what long term care insurance really does.”

• When setting or confirming appointments, prospects could be asked to watch three videos at the makesadifference.us website before you meet—it will give you a great background for your discussion.

How many couples do you know who have been married more than 50 years? How many couples do you know who have worked together to build an insurance business (or any other business, for that matter)?

Soderberg Insur­ance Services recently recognized co-founders Douglas and Frances Soderberg for their mutual lifetime achievement—they have been in the business for a combined total of more than 100 years!

Douglas Soderberg, CLU, CPCU, ChFC, is the co-founder and treasurer of Soderberg Insurance Services, Inc. He entered the life insurance industry in 1957 as a life sales agent for Aetna Life and Casualty. A native of New Sweden, ME, he married his childhood sweetheart and business co-founder, Frances Roderick the same year. Soderberg was the youngest general agent (age 24) that Aetna had ever appointed.

Doug’s insurance credentials are impressive. He is a lifetime member of the Million Dollar Round Table. His sales activities have laid the foundation for agency growth. Today the agency is in the top 10 percent of independent insurance agencies with respect to premium volume. Life insurance had clearly been the focus of the agency at inception.

Frances Roderick Soderberg, co-founder of Soderberg Insurance Services, oversees the general operations of the agency. Also a native of northern Maine, she worked in research and development at Arthur D. Little Company in Cambridge, MA. The desire to join her husband in the insurance business and foster agency growth was what attracted her away from the field of research.

As the Soderberg’s agency grew, its focus also grew from strictly life insurance products to employee benefits and later to all lines of insurance, both commercial and personal. The agency relocated several times before settling in at the current location in Lynnfield in 1985. The agency has been active in the community, sponsoring local charities and events.

After working in the agency for many years, their daughter Kathryn Soderberg, CPCU, took over as president in 2000. With the addition of their daughter in the leadership position, the agency transformed itself once again by creating a niche for themselves in the Hispanic community (the younger Soderberg is fluent in Spanish). Today more than 35 percent of the agency clientele is Hispanic.

The Soderbergs have lived in Lynnfield, MA, since 1965, and both are the offspring of self-employed parents (Doug’s parents owned and ran a family farm, and Fran’s parents owned and worked together many years in a small camera store). You might say that being founders of a successful business was in their blood.

Broker World applauds their lifetime personal and professional achievement. [SAC]

We would like to express our deepest gratitude to The Marketing Alliance, Inc., for the incredible honor they bestowed upon Broker World’s founder, the late William S. Howard, by naming him the recipient of this year’s Billy Vogel Award.

The award is named after William E. Vogel, the late president of the W.S. Vogel Agency, Inc., who exemplified the award’s criteria of distinguished service to the financial services industry through business acumen, innovation and—above all—integrity. Particularly poignant for us is the fact that Billy Vogel was a treasured friend of Broker World and of the Howards.

The Marketing Alliance (TMA) traces its roots to the formation of SUB Centers, Inc. in 1961, the oldest BGA marketing/study group still in existence today. In 1996 the members formed and capitalized a new company and named industry icon George Williams to run the SUB Centers Marketing Alliance, originally charged with managing national marketing arrangements, assisting companies with researching, developing and distributing product nationwide.

Today The Marketing Alliance is a publicly traded company (OTC markets, symbol “MAAL”) with 30 dedicated employees serving the underwriting, processing, marketing, product and recruitment support needs of independent brokerage general agencies, as well as offering help in developing new markets. TMA focuses on the distribution of life, annuity and long term care insurance products from its valued carrier partners.

The W.S. Vogel Agency continues to thrive under the leadership of another dear friend of Broker World and Billy Vogel’s beloved wife, Lynda Baccoli. [SAC]

LIMRA recently reported findings from a study of insurance benefits offered by small businesses (“Small World: Trends in the U.S. Small Business Market”).

LIMRA’s study found that 47 percent of small businesses (two to 99 employees) in the United States offer benefits to their employees—the lowest level in two decades of the organization’s research. U.S. Census Bureau statistics show that 98 percent of businesses in the United States have fewer than 100 employees, accounting for approximately 35 percent of the U.S. work force.

According to Kim Landry, product research analyst for LIMRA, “The recession has had an impact on smaller employers’ ability to offer benefits, particularly those with fewer than ten employees. The weak economy caused a lot of small firms to close, while the new firms cropping up to replace them are less likely to offer benefits. Many small businesses are also hesitant to add new benefits until the economy improves.”

LIMRA’s study found that 78 percent of small businesses in the United States are family-owned, and 40 percent of these businesses offered insurance benefits in 2012 (compared to 47 percent in 2005).

Among small businesses that do offer insurance benefits to employees, medical and prescription drug plans are by far the most popular and tend to be the first benefits that companies bring on board.

“These benefits provide an opportunity for small business owners to obtain coverage not only for their employees, but also for themselves and their families,” noted Landry. “We also found dental and vision coverage to be common offerings among small businesses, as these products tend to be very popular with employees.”

LIMRA found that life insurance is frequently offered by small firms, whose preference for this benefit is  most likely associated with its low cost and ease of administration. However, products such as long term disability, short term disability and accident insurance have fairly low penetration rates among small businesses, leaving employees at these firms potentially exposed to a variety of financial risks.

For this study LIMRA conducted a telephone survey of 754 private small businesses in the United States with one to 99 employees (including the owner) that had been in business for at least one year. Respondents were the individuals who made or shared in the firms’ decisions concerning business insurance and/or employee benefits. The sample was weighted by company size, industry and region to be representative of the total population of U.S. small businesses, based on data from the U.S. Census Bureau. [SAC]