Greetings

Dear Readers:

Welcome to the summer edition of our quarterly newsletter, Cline Wood Agency Transportation and Agribusiness Review. Our goal is to bring you interesting and informative articles written by Cline Wood employees, as well as access to great articles and information written by industry experts. Please continue to let us know what you think of our efforts. We value your feedback.

We are pleased and proud to have passed a very important milestone on May 1 — Cline Wood Agency’s 25th anniversary! In 1984, we decided to start a business that would reflect our personal core values of hard work and ethical behavior, and our commitment to providing excellent products and services for our clients and exciting career opportunities for our people. It gives us great pleasure to be able to look back on 25 years of growth and success while looking forward to many more years of the same. We owe it all to you, our wonderful customers and business partners, and to the great people who work at Cline Wood Agency for you.

In this challenging economic environment, we stand with our customers in practicing disciplined expense control. Consequently, after much thought we have decided not to have a celebratory event to mark this important anniversary. Instead, we are celebrating our 25th year by re-dedicating ourselves to the values and activities that have helped Cline Wood become successful. We are committed to working even harder to continue to earn your trust and your business.

Thanks again for your continued trust in us and for your business. We appreciate it and promise to do all we can to keep earning it.

Sincerely,

John Cline and Mike Wood, Founders

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What's New

• After 18 years of service, Ron Einbender, agribusiness account manager, retired on July 10. On July 13, Rebecca McMahon stepped in to take his place. Rebecca has more than 24 years of experience in the insurance industry as an account manager and account executive. We are excited to welcome Rebecca to our team, and we wish all the best to Ron in his future endeavors. 
• As you probably know by now, on June 12 we moved our Leawood headquarters to a new location. We needed more space to operate now and in the future, and our new quarters should serve us well for years to come. Please make a note of our new address: 4300 West 133rd Street, Leawood, Kan., 66209. Our phone numbers, fax numbers, e-mail and web site address all remain unchanged. Please stop and see us if you are in the area.
• The Society of Certified Insurance Counselors recently honored Tom Dickmeyer, Cline Wood CEO, for his ongoing pledge to education, commitment to excellence and dedication to the insurance profession. Tom received this honor for earning his Certified Insurance Counselors (CIC) designation and maintaining update requirements for 20 years, an accomplishment that places him in the top one percent of all insurance professionals in the country. The Society of CIC is an organization nationally recognized as a leading continuing education program for insurance professionals.

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Out and About

If you’re at any of these events, please stop by to see us:

Aug. 20-21: Truckload Carriers Association Independent Contractors Meeting in Dallas, Texas – Tom Dickmeyer, CEO.

Aug. 20-22: Great American Truck Show in Dallas, Texas – Tom Dickmeyer, CEO.

Sept. 16-18: Kansas Motor Carriers Association & Missouri Motor Carriers Association Joint Convention in Branson, Mo. – John Cline, vice president and co-owner.

Sept. 16-18: Oklahoma Trucking Association Annual Convention in Norman, Okla. -- David DeBolt, vice president - risk services.

Oct. 2: Kansas Livestock Association PAC Golf Tournament in Manhattan, Kan.

Oct. 4-7: American Trucking Association Management Conference & Exhibition in Las Vegas – Tom Dickmeyer, CEO.

Nov. 18-19: Kansas Agribusiness Expo in Wichita, Kan.

Dec. 3-4: Kansas Livestock Association Annual Convention in Wichita, Kan.

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The Faces of CWA

Meet Julie Steinbock
Account Manager

When Cline Wood Agency acquired ICA Agency in June 2007, it also acquired Julie Steinbock. Since then, Julie has been an account manager in the company’s agribusiness sector, lending her 28 years of expertise to help clients meet their insurance needs. In this role, Julie works with clients on a daily basis to address insurance needs, and she collaborates with several Cline Wood producers on preparing insurance presentations, and taking care of clients’ renewal and new-business needs.

“Working with clients is the best part of my job because I enjoy the relationships I have built with them,” Julie says. “I listen to what my customers say, and I treat them the way I’d expect to be treated. I’ve made a lot of great friends in this business over the years, and I think the service I provide has played a role in those friendships.”

Julie says she has enjoyed becoming part of the Cline Wood team because of its customer focus. “Providing great customer service is a fundamental value at Cline Wood,” she says. “Our employees have a lot of experience and are very knowledgeable in the areas they work in. This knowledge and experience along with the service we provide builds long-lasting relationships with our clients.”

In her spare time, Julie enjoys spending time with her two teenage daughters, traveling and scrapbooking.

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News You Can Use

“Red Flags” Rules Raise Consumer Awareness About Cyber/Privacy Exposures

Although the Red Flags Rules went into effect Jan. 1, 2008, the Federal Trade Commission (FTC) began enforcing them this past May. These rules require financial institutions and creditors to develop and implement a written identity theft prevention program, as part of the Fair and Accurate Credit Transactions Act (FACTA) of 2003.

According to the FTC, Red Flags Rules apply to “financial institutions and creditors with covered accounts.” While a financial institution is more easily defined, the concept of a “creditor” extends to “any entity that defers payment for goods or services, or bills customers later.” As a recent Media/Professional Insurance article pointed out, “creditor” could include hospitals that have payment plans for their patients, grain and fertilizer dealers, auto mechanics, veterinarian offices, etc.

Read this publication from the FTC for more information, or visit www.ftc.gov and search “Red Flag Rules” to bring up a list of articles.

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Risk Management Spotlight

Workers Compensation: Are You Paying More than You Should?
by Gary Coady, Vice President – Agribusiness

As business owners and managers of transportation and agribusiness companies, one of your higher expenses is likely to be Workers Compensation coverage for your employees. Ensuring this policy is written correctly and accurately before a loss occurs is important to you and your employees.

The price you ultimately pay for Workers Compensation coverage can depend a lot on you and your management team. Using tools such as pre-hire physicals and drug screenings, plus proper employee training and supervision can have a huge positive impact on your costs.

Your own loss experience also plays a big role in how much you pay for Workers Compensation coverage. All insurance carriers send data with payroll, premium and loss information to the National Council on Compensation Insurance (NCCI). This data is used to develop an Experience Modification to compare your experience with your peers. If your numbers are better than average, you likely will save premium dollars, and if they’re worse than average, it typically will cost you additional premium dollars. The Experience Modification is on all Workers Compensation policies that develop a minimal amount of premium (usually $3,000 but will vary by state).

At Cline Wood Agency, we have the tools to show you how much control you can have over these costs and how certain losses affect your Experience Modification. We can explain how much you can ultimately save with the best possible experience. We also can review your previous losses to ensure they were reported correctly and accurately to NCCI. If your losses were reported incorrectly or we find an error, we can help you resolve this issue.

For more information about how we can help, contact your Cline Wood producer or account manager.

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Transportation

Consider Truckers Occupational Accident Insurance
by Cheryl Fennesy, Vice President – Transportation

Although trucking is a relatively safe occupation, let’s face it…accidents happen. Occupational Accident insurance can help provide the protection you need in the event of an accident.

Occupational Accident coverage pays benefits for accidental death or dismemberment, accident-related medical expenses, and temporary or continuous total disability as related to an on-the-job accident. Coverage also can be added for non-work-related accidents with reduced benefits.

Because independent owner-operators are not employees and do not receive Workers Compensation benefits in the event of a job-related accident, this type of insurance can be especially important for them. It provides owner-operators and their families with protection against medical bills, loss of income and even death arising from a work-related accident or injury.

Whether you’re an owner-operator or a motor carrier, however, it’s important to recognize that Occupational Accident coverage is NOT considered Workers Compensation. Rather it is an alternative to Workers Compensation for owner-operators. Before applying for this coverage, check your state laws to be sure your state recognizes Occupational Accident coverage. Motor carriers should check with their Workers Compensation carrier to be sure that in the event of an audit, they will accept an Occupational Accident certificate in the place of true Workers Compensation for the owner-operators with whom they contract. Owner-operators should verify with their motor carrier and/or contracts that Occupational Accident is acceptable.

As with most insurance, Occupational Accident limits and benefits can be customized. Not all policies are the same; prices vary considerably, as do benefits and limits. Contact your Cline Wood agent for more details.

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The Safety Zone
A look at safety issues by David DeBolt, Vice President – Risk Services

Your truck is laid over in the ditch; your driver is a little banged up, but nothing serious. There’s damage to the cargo, and the tractor could be a total loss … maybe likewise for the trailer. Seeing what happened is obvious; finding out how it happened is a bit more difficult.

Several universities, AAA and the National Safety Council have conducted multiple studies looking at the root cause of vehicle accidents, and the results strongly indicate that one or more distraction is a major contributor to many crashes. Think about your own personal involvement in a vehicle crash or a near miss. Were you distracted by something or some event that took your primary focus off the road?

Let’s face it, no one wants to confess that he or she was distracted, for example by talking on a cell phone at the time of the incident. But cell phones don’t own a monopoly on driver distractions. Distractions can be categorized into three general areas:

• Technology: Cell phones, PDAs, satellite communications, TVs, AM/FM radios, CB radios, etc.
• Visual: Any object or motion that attracts a driver’s attention and takes his or her focus away from the primary task of driving, including livestock, another vehicle, billboards, street signs, etc.
• Personal: Issues such as marital, family, financial and medical problems are factors that can be major distractions.

What can you do? First, simply be aware of and recognize that distractions are an issue. Then identify within your operation those policies and procedures that are supposed to be helpful, but may be contributing to driver distraction. Be prepared to modify these policies and procedures. For example, if you are extensively relying on cell phones to communicate with your drivers, it may be time to evaluate when and how often that communication is taking place.

I was privileged to sit on a discussion panel at a National Tank Truck Carriers (NTTC) convention where one of my fellow presenters talked about how his company addressed this very problem. They simply established a policy where a driver would let the cell phone ring twice (not terribly distracting), and if it did not ring a third time it was dispatch. The driver then stopped at the first convenient location and called in to find out why he or she was needed. The same two-ring policy could apply to personal cell phone usage as well. Nothing is perfect, but we need to try.

I am convinced we are at the tip of the iceberg when it comes to distractions. They are there, and we can’t change them. We can only make drivers more aware of what those distractions are and how they affect their driving.

Related industry article:

Read an article in the June issue of Bulk Transporter that provides more details from the NTTC council meeting Dave references.

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Join the ATA Grassroots Program;
Ensure Your Voice Is Heard

The American Trucking Assocation’s (ATA) Grassroots Program is a network of trucking industry members working together to influence legislative decisions on the federal and state level. Whether you have one truck or an entire fleet, you are invited to lend your voice to ensure that the trucking industry perspective is heard. No other single influence has as much impact on legislators’ votes as informed communications from industry experts, such as trucking industry members.

The ATA tracks legislation and issues as they evolve, and keeps Grassroots Program members informed so you can take action when needed. This action may include meeting with elected officials, calling them at their congressional office or writing letters, according to your comfort level.

To join the ATA Grassroots Program click here.

To tell a friend or colleague about the program, click here.

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Insurance Buying Tips for a Changing Market
by Tom Dickmeyer, CEO

Tom Dickmeyer, Cline Wood CEO, recently participated in a presentation by the American Trucking Association’s Insurance and Risk Management Committee at the ATA’s National Accounting and Finance Council annual meeting. Tom’s topic was “Insurance Buying Tips for a Changing Market — Understanding and Manipulating Insurance Pricing and Payment Variables.” Following is a summary of the presentation.

The insurance marketplace suffered extremely poor results in 2008 as a result of reduced premium rates, a depressed economy and paltry investment income results. For the year, the industry incurred $1.05 in losses and expenses for every $1 of premium. Investment gains fell 59 percent from the prior year.

All this leads us to believe that premium rates will be rising in the future; however, the industry currently remains strongly capitalized with abundant capacity. Our best guess is that the trucking industry will continue to enjoy low premium rates for the remainder of 2009 and perhaps well into 2010. Unless there are natural or man-made disasters that have catastrophic impact on the industry, Cline Wood expects any increase in premium rates to be gradual.

While rates are still low and in anticipation of a change down the road, there are some steps that all trucking companies can and should be taking to minimize the cost of insurance. Click on each of the tips below to get additional information.

Tip #1: Know where your losses are coming from and what you are doing about them.

Tip #2: Have an insurance marketing plan. Your approach to the insurance companies will have a major impact on the insurance program you get.

Tip #3: Understand your minimum premiums and policy audit provisions, and take steps to minimize any negative impact on your costs.

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Agribusiness

Protect Yourself from Mortgaged and Stolen Livestock
Reprinted with permission from Hartford Livestock.

Uncertain economic conditions, volatile livestock markets, tightening credit requirements, and increasing bankruptcies have a history of causing more and larger claims from the illegal sale of mortgaged or stolen livestock. It’s important for you AND your employees to take steps to protect your business and keep you out of court.

The Food Security Act of 1985 includes provisions that protect you from lawsuits related to the sale of mortgaged or stolen livestock. Depending on state requirements, however, you must always comply with either the Central Filing System or the Direct Notice Process. Failure to do so will leave you at greater risk. Here are some suggestions:

• Positively identify the livestock seller as a legal entity, which could be an individual, corporation, partnership, etc.
  • If the individual representing the livestock seller’s identity is uncertain, obtain a copy of their driver’s license and/or a record of their vehicle’s license plate number.
  • If the livestock seller legitimately uses a business name or an assumed name (that is not a corporation, LLC, LLP, or other legal entity), seek information showing the livestock seller’s identity as a legal entity.
• Identify the state from which the livestock originated. Generally, this is the state in which the livestock were last located and produced prior to being received at the sale. It may or may not be the same state as the livestock seller’s location.

Once you have identified the state, follow these steps.

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