Posted: 3/25/2010
NAMIC Professional Farm Mutual Manager Module Learning Objectives
Strategic Business Management Module
Management and Leadership Principles (3 hours)
- Understand the principles associated with strategic planning
- Learn how to develop and write a company mission statement
- Understand the relationship between the mission statement and planning purpose
- Understand the Strategic Planning process and who should be involved
- Know what should be included in a one, three, and five year business/strategic plan
- Know who should be responsible for implementing the plan and monitoring progress
- Determine the appropriate means of reporting the progress to the directors, management and staff
- Understand the importance of the strategic plan in relation to underwriting, claims, marketing and technology department goals and guidelines
Public Relations and Marketing (2 hours)
- Know how to develop a marketing mission statement and plan
- Know how to develop a niche market for the company
- Know what image the company wants to establish with policyholders and agents and tie it to the marketing/branding campaign
- Learn the importance of branding the niche market of the company to agents and policyholders
- Know how to deliver/advertise the marketing/branding mission and plan to the agents and policyholders
- Understand the importance of developing a diverse product line and competitive rating structure for all products and services of the company
- Understand the importance of retention of policyholders/agents to the marketing plan
Agency Relations and Development (3 hours)
- Know the importance of attracting qualified and professional insurance agents
- Understand the importance of agency contracts and agreements
- How to determine the best means of offering products and services to the agency force
- Understand the importance of offering competitive commission and contingency bonus plans to the agency force
- Understand the importance of the agency force in regard to the appropriate spread of risk for the company
- Understand the importance of growth and the addition of new agents for the company
- Understand how to cancel an agency
- Determine the needs of production and loss ratio requirements upon the agency force
- Determine the needs and requirements of technology in relation to the agency force marketing the company’s products and services
- Understand the importance of flexibility and ease of doing business in working with the agency force
- Understand the importance of underwriting, applications, rates, and discounts in working with the agency force
- Understand the importance of keeping the agency force involved with the operations of the company operations by such means as surveys, training, and an agency advisory committee
Human Resources and Personnel Management (3 hours)
- How to structure the management and staff of the farm mutual
- How to design an organizational chart
- Know the importance of written job descriptions
- How to develop an employee manual
- Understand the importance of confidentiality in the insurance industry
- How to train new employees
- Understand the hiring and firing of employees
- Understand the importance of gaining knowledge of specific state and federal employment laws
- Know the importance of employee performance reviews
- Know how to keep employees motivated and dedicated to your company by offering competitive wages, benefits, and working conditions
- Understand the importance of succession planning for management
Underwriting & Claims Module
Underwriting-Property & Liability (4 hours)
- Developing Underwriting Procedures
- Tools available for Underwriting
- Use of Credit in Underwriting
- Tools to evaluate Insurance to Value
- CLUE reports
- Surcharges & Discount Development
- The Importance of the Application to Underwriting
- Must be complete and accurate, risks if not
- Conducting an onsite review
- Asking the right questions
- Underwriting Property Exposures: complete and identify potential exposures and risks
- Underwriting Liability Exposures: complete and identify potential exposures and risks
- Evaluating Rate Adequacy
- Determining the price for products, coverages & services
- Importance of evaluating insurance to value
- ACV vs. Replacement Cost
- Handling Cancellations & Non-renewals
- Reasons for cancellation
- How to non-renew or cancel (states differ)
- The process and importance of underwriting renewals
- Auditing your own files
- Reviewing for new procedures and guidelines
- Updating files (photos, etc.)
- Case Studies
Loss Control & Claims (4 hours)
- Basic Adjusting Procedures
- Development of a Loss Control Program
- How to get started
- Development of the inspection process and claims files
- Consistency
- Basic Inspection Procedures and Guidelines
- What to include (diagrams, photos, etc.)
- Inspector/Adjuster Training Options
- Estimating Losses & Establishing Reserves
- Catastrophe Planning & Management
- Plans for handling catastrophic events
- Available resources
- Importance of testing back up plans and emergency communication
- Handling of Bad Faith
- Fraudulent Claims
- Salvage, Subrogation & Restitution
- How to reclaim your dollars after the loss.
- Claims file audits: the importance of conducting audits and establishing a timeline for reviews
- Case Studies
- Importance of Technology to Company Operations
- Resource Allocation for Technology
- Development of a technology implementation plan
- Development of a Company Web-Site
- Available technology options for underwriting management
- Available technology options for claims management
- Available technology options for financial management
- Rating & Quoting Systems
- The Paperless Office and technology
- Safety Procedures
- Equipment Options
- Technology-Disaster Recovery Procedures
- Case Studies
Ethics & Legal Issues (1 hour)
- Privacy act
- Confidentiality agreements
- Compliance with state & federal insurance regulation
- Employment law
- Contracts
Financial Management Module
Past, Present, and Future of Farm Mutual Insurance (2 hours)
- Understand how the idea of mutual insurance originated
- Understand the difference between mutual insurance companies and other companies
- Understand the present operating structure of a mutual insurance company
- Understand how mutual insurance is affected by state and national governments/regulations
- Determine how companies will evolve and change to ensure a future in the insurance marketplace/industry
Corporate Governance (3 hours)
- Rules and structure of a mutual insurance company
- Involvement of the policyholders in a mutual insurance company
- The structure of a Mutual Insurance Company‘s Board of Directors
- How to conduct an efficient Board Meeting
- Role of the Board of Directors in the Company’s Operations
- Director Independence (from Management)
- Officer Liability
- Defining, setting, and monitoring internal control procedures
- The importance of the audit to ensuring proper control procedures
- Purpose and benefit of State and National Trade Associations
- Understand the purpose of reinsurance to the mutual company
- Understand the partnership between the mutual company and the reinsurance company
- Understanding what is expected of the mutual company by the reinsurance company
- How to determine the need and type of reinsurance to purchase
- Understand the different types of reinsurance contracts and the basic language
- Understanding how the cost of reinsurance is determined
Financial Management (3 hours)
- Understand the basics of insurance accounting including assets, liabilities, and surplus
- Understand the importance of adequate surplus/reserves
- Understand the affect of unearned premium as a liability
- Understand the importance of rate adequacy
- Understanding how to calculate loss, expense, surplus/premium ratios
- How to develop a budget and monitor success
- How to manage the growth of premium