Two for Tuesday Header

In This Issue:
Tips to Maintaining Good Surety Credit
Affluent Sweet Success
Special Feature: Check Out RLI's Training Videos
Additional Items:
Last Week's Most Clicked
Sale of the Week

Tips to Maintaining Good Surety Credit
By Jack Anderson, Goldleaf Surety Services President

The key element to maintaining good surety credit is communication. Surety companies do not like surprises when it comes to a company's financial picture.

Some of the key items that companies need to communicate with the surety and their surety underwriter include:
  • Change in Ownership
    • Surety companies need a correct indemnity agreement, and it is the company owners who need to take responsibility in making sure the surety has the correct information for the indemnity agreement.
    • ESOP's may completely change the surety support unless properly structured. Always communicate this type of ownership change before it is undertaken to minimize the effect on the company's bonding support.
    • Stock Repurchases (Treasury Stock) can also destroy a company's surety support unless properly handled.
  • Change in Banking Relationship
    • The surety needs to understand the reason for the change to help identify any problems early.
  • Change in CPA
    • Again, the surety wants to understand the reason for the change so they know if any issues exist.
  • New Business Ventures
    • The surety's concern is how the new venture will impact the working capital of the construction company. In addition, with most new businesses, profitability may take some time, and their concern is that the construction company may be forced to provide the additional cash flow to keep the new venture going.
  • Major Purchases of Equipment
    • A surety company's primary concerns are:
      • Is the equipment truly necessary?
      • How does it impact their cash flow?
      • Is this impacting the debt to equity rations that the surety company is comfortable with?
  • Increases in bank debt:
    • A surety company's primary concerns are:
      • What is causing the increase in the bank debt, and is it truly necessary?
      • Is the higher bank debt relating to cash flow issues which in turn means increased use of the company's operating loan?
      • Is the operating loan being used to purchase equipment versus the use of term debt?
  • Borrowings to related companies or owners
    • This can quickly have a negative impact on the surety support as these loans are rarely paid back or not repaid in a timely manner
    • Many times, these loans negatively impact the working capital of the construction company which is one of the key factors surety companies focus on.
    • The construction company should not be the bank for related entities.
Again, the key point to maintaining good surety support is COMMUNICATION. The better the communication, the better the surety support. And good surety support hopefully translates into more revenues and profitability for your insured's company.

Remember - you don't need to be the bond expert as Goldleaf Surety can step in and assist you and your agency. Our staff has the knowledge, expertise and market access to be able to provide you and your insured with the counsel and advice they need for all their surety needs. For more information about helping your clients with their bond needs, log in to or email us at and an underwriter will contact you.  
Special Feature:
Check Out RLI's Training Videos
By Elif Wisecup, Director of Marketing of Big I Advantage®

Educate yourself on some of the basics of the RLI system.

It's time to dig in and learn more about the RLI system so you can write personal umbrella coverage with ease. These tools should help you to create a login, quote new business, check existing policies, obtain forms, and submit business online via eSignature and direct bill payment. In turn, this should free up more time for you as well so that more time can be spent marketing and growing your book of business! Check out:
Visit Big "I" Personal Umbrella online at or click here to find your state administrator!  
Affluent Sweet Success
Suppose you have a new wealthy client, garnered through word of mouth, looking to insure their houses and about 200 cars. You know a good place for that combination is Chubb. One problem: you're not appointed with Chubb. Lightbulb! Big "I" Markets offers access to Chubb Masterpiece. Debbie Gates of Specialty Risk Management was faced with this client and jumped on BIM to submit the risk.

Her client inherited a business, sold it, and is now living well. A lover of classic and collector cars the client also owns one-of-a-kind vehicles and enjoys sharing this passion, recently donating a car to a homeless veterans charity for a fundraiser. According to Gates this client is "a sweet, giving person," so she wanted to treat her right.

Nancy Doherty, Big "I" Markets affluent supervisor and senior underwriter, worked with Gates to make everything go smoothly. Doherty knows how to treat the largest of your high-net worth clients both during the binding process and afterwards, increasing retention.

Gates had high praise for Doherty, citing Doherty's "knowledge and expertise" and "awesome customer service," especially for an account of this size. Gates is ready to submit another high-net worth client and BIM is now her go-to for affluent risks.

The affluent team on Big "I" Markets can provide this level of service for your affluent clients as well and they don't have to have a six-figure premium to get it. Our Affluent Program - New Business gives member access to three great carriers (availability varies by state).

With just one policy, the ACE Platinum Portfolio can provide superior coverage for your home, vacation properties, autos, jewelry and valuable collections, watercraft, and personal liability. The portfolio approach has many advantages: It minimizes coverage gaps and wasteful duplications that can occur with a collection of standard industry policies. It earns an overall discount, so you get seamless protection as well as the most value for your premium dollar. In most instances, you will have just one policy to track and one bill to pay.

AIG Private Client Group was created to meet the needs of successful customers. But because success comes in many ways to many different people, no two customers will be the same. One might have great wealth and specialized needs - the need to cover art collections or a variety of properties, cars, and boats, for example - while another might have been steadily building wealth, focused on family and career, and is now suddenly awakening to just how much he or she has at risk. AIG PCG aims to meet the needs of these diverse populations with a promise that defines our difference: Insurance that keeps up with your success.

Chubb personal insurance is the premier insurer of high net-worth individuals in the U.S. With over 30 years of experience specializing in the affluent market, they offer products and services designed to help protect the highly valued assets and peace of mind of affluent customers. Chubb offers an array of products ranging from auto to homeowners, valuable articles, liability and yacht insurance. Their mission is to continually evolve and expand the Masterpiece® suite - long considered the gold standard of affluent personal insurance - to provide new offerings that best meet the needs of high net-worth consumers in an ever-changing world.

Broker of Record
20% of our affluent new business premium came from Broker of Record submissions in 2014. We do welcome BOR requests, and have a separate product set up just for that process. Please use the Affluent Personal Lines Broker of Record Change product and submit a "quote request" to create a file on Big "I" Markets if the client has a policy in force for Chubb, AIG or ACE. Coverage is not automatic with a broker of record submission. Each risk will be re-underwritten and accepted or declined based upon its attributes. All risks must meet the eligibility requirements of our program, as described on the Affluent Program underwriting and coverage page.  
"Beyond the Basics: Emerging Personal Lines Issues"

August 26, 2015
1:00 to 4:00 p.m. Eastern Time
$79 - Click here to register

This VU webinar examines a number of critical policy form changes that agents must know and communicate to the consuming public. The first hour focuses on ISO's planned new Personal Auto Program and a major change in their homeowners program. The second hour examines emerging issues, including car and home sharing, hydraulic fracking, and often misunderstood exposures and coverage gaps in ISO's homeowners program involving vehicles of various types. The third hour is devoted to two major auto exposures - family member vehicles and rental cars - and to insuring vacation risks such as motor homes, cruise ships, and overseas travel. Approved for CE in MD, MI, MT, NC, ND, NY, OH, OK, WA with AR, LA and NJ pending. See registration page for details.

Also planned is Certificates of Insurance - 2015 Edition. VU webinar questions can be sent to  
Remember that you can view the following webinars 24/7 by checking out the BIM Webinar Library. To do that log onto Big "I" Markets and click on "Publications".
  • Personal Liability Trends - Fireman's Fund
  • TravPay
  • Commercial Lessor's Risk
  • Affluent Homeowners
  • Travelers Select Products (series)
  • Travel Insurance
  • Community Banks
  • XS Flood
  • Real Estate E&O
  • RLI Personal Umbrella
  • Affluent Homeowner
  • "Oh, by the way...Flood Sale"
  • Habitational
  • Non-standard Homeowner
  • Student Housing
For all you folks who recently registered for Big "I" Markets, remember you can participate in a webinar from the comfort of your office to help you learn how to navigate around the system. Every Thursday at 2:00 p.m. EDT we'll show you how to navigate the Big "I" Markets platform, including how to submit a quote! A recording of this webinar can be found under "Publications" after logging into Big "I" Markets.
Be one of the first five with the correct answers and win an envy-inspiring TFT Trivia T-shirt. Don't forget to answer the Tie Breaker!
1. What medieval system in England was an alternative to a surety bond?
2. On this day (July 28th) in 1933 the first of these was delivered to Rudy Vallee. What was it?
3. The RLI Personal Umbrella allows how many At-Fault Accidents per household for the Standard II Rate Tier?

Who said this: "Poor people have more fun than rich people, they say; and I notice it's the rich people who keep saying it."
Here are the top three items that got BIM agents clicking from our last edition... see what you missed!
  1. Bicycle vs. Homeowners policy comparison chart
  2. Certificates of Insurance - 2015 Edition  
  3. Customizable Bicycle Sell Sheets
Big "I" Markets Sale of the Week
Congrats to our agent in Illinois on a non-standard homeowner sale of $9,644 in premium!  

Tuesday, July 28, 2015

Featured Products: 


Tips for accessing & using
Big "I" Markets

Having trouble viewing your commission statements or did you get a commission check and you're not sure what it's covering?

Accessing Commission Sheets

Follow Us:

TFT is authored by Michael Welch
Big "I" Markets Marketing Assistant