Todays Date: Apr 23, 2014

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The January 2014 NAAFA Report Has Been Posted. Please click on "NAAFA Report Online!" Banner in the left-hand column of this page.


Decide Your Future Now


Alert — New Important Update — 2/7/2014

Agent/Company Issues

10 Best Companies for Homeowners' Claims Experience!!  It doesn't make the AmFam agent's job easier when we read that the company we sell for ranks #15 in homeowner customer claim satisfaction. AmFam ranks lower than nearly all our captive competitors. We're lower than Nationwide, Farmers, Liberty Mutual, Allstate, and State Farm, to name a few. Why? Why is this happening? For sure, it is not the agents' fault this time. Agents take a lot of blame for a lot of things, but this problem lands back in the lap of the company. Wouldn't it be nice if we could set a quota for AmFam….become #10 within 6 months or you're fired?! 3/1/2014

Insurance Executives Hitting the Jackpot!  It's nearly that time of year again when we get anxious to see how much the AmFam Executives will award themselves for the 'great job'(tsk,tsk) they have done this past year. We're told AmFam has been run well this past year….having seen a premium increase. But….what about retention? What about production? If there's been a good year it must be at the expense of somebody, right? Think "agents!" How many agents have lost their jobs at AmFam? How many have lost premiums in their agencies? What about policy count? How many agents have been downright discouraged, threatened, and ready to give up? Bonus time? We think not! 2/18/2014

How Allstate Plans to Outflank its Online Rivals!  Allstate's Esurance will begin bundling Auto to Home coverages which most Allstate agents feel will impede even further their ability to sell and be competitive with their Allstate products. For another link about how Allstate's captive agents are suffering as a result of Allstate's direct marketing company, Click Here! 11/18/2013

Why McKinsey's Prediction of Demise of Independent Agents is 'Dead Wrong'!  If you haven't been watching these comments by the independents regarding the controversial McKinsey Report, McKinsey Report you are not keeping up with what's going on in the insurance world. (AmFam uses McKinsey as a consultant.) Here is quite an interesting response to the McKinsey Report just hot off the press. You need to read it carefully. It may open your eyes to the security of your own future. 10/29/2013

12 Agents' Thoughts on their Futures in the Industry!  12 independent agents sound off about The McKinsey Report ... (that their futures are limited). AmFam agents need to sound off, too. Changes being made (by AmFam presumably as a result of their agreement with the McKinsey Report,) are causing heartache and great inconvenience for AmFam agents. 10/17/2013

Top-Ranked Carriers Build Agent Satisfaction into Culture!  Which consultant should AmFam have hired? Mckinsey or Deep Customer Connections? (Remember, they hired McKinsey!!) Deep Customer Connections, we're told in this article, has a niche focus on building a better relationship between carriers and independent agents. This idea seems to be in direct contrast to the philosophy of the McKinsey group. Read it for yourselves….you decide. 10/17/2013

McKinsey to Agents: Adapt or Find Another Line of Work!  Well, this article has caused a lot of uproar with insurance agents across America, and it's not hard to see why. McKinsey compares today's insurance agents' futures to those of yesterday's travel agents…..almost gone! What's your opinion? Is AmFam drinking McKinsey's Kool-Aid? 10/16/2013

Homeowners have Stormy Relationship with Adjusters!  The adjustors the news media is talking about belong to American Family. This kind of news is not good news for AmFam agents if you are trying to sell policies! 10/4/2013

American Family's 2012 Annual Report!   For your convenience, here is a link to Am Fam's annual report. You can compare to American Family's 2011 Annual Report which can be found below! 9/4/2013.

Judge's decision allows class action to move ahead!  As was announced earlier, (see below "Another Class Action Filed Against AmFam") a class action complaint was filed against American Family in February, 2013, asserting that the Plaintiffs were all employees as defined by ERISA rather than independent contractors as the agent contract reads. American Family responded to the complaint and then asked for the case to be dismissed. On August 9, 2013, Judge Donald C. Nugent made his decision and denied AmFam their request to dismiss. The class action will now move ahead! 8/18/2013

The Summer 2013 NAAFA Report!  If you haven't gotten a hard copy already, here it is on line. NAAFA is already getting responses to many of the articles. Let us know what you think by sending your thoughts to NAAFAwest@comcast.net! 8/17/2013

Three Insurance Companies Placed in Liquidation in Illinois   and Lumbermens Mutual Casualty is one of them. Does that name sound familiar? Didn't AmFam just buy part of them a short while ago? Interesting??? 5/25/2013

American Family Auto Ins Medpay Class Action Settlement:  Not another class action! Well, the original class incident involves a 13 year old case, but the agreement to settle is new. Read about it here. 4/20/2013

ANOTHER CLASS ACTION FILED AGAINST AMERICAN FAMILY INSURANCE COMPANY  On February 28, 2013, a class action complaint was filed in US District Court, Northern District of Ohio, Eastern Division. The suit claims that American Family has violated ERISA laws by treating their independent contractor agents as employees. Plaintiffs Walid Jammal and Dana LaRiche have filed this claim on behalf of themselves and all others similarly situated. 3/22/2013  CLICK HERE TO READ AMFAM RESPONSE TO JAMMAL AND LARICHE COMPLAINT.  Posted 6/3/2013

Class action filed against American Family. “Insurance Company Fleeced Us!”  A Minnesota couple is suing AmFam in a class action for what the couple says are excessive charges on homeowner replacement costs. 2/18/2013

Evidently Jack Salzwedel, AmFam CEO, is not very popular with his employees. He gets only a 45% approval rating and only 47% of the employees recommend this company to a friend! Read more here at The Glass Door.  9/15/2012

Do Insurance Brokers have to Offer the Cheapest Coverage?  Insurance brokers should be cautious in advertising their abilities to obtain the lowest cost insurance for their insureds, Learn why.  8/25/2012

FreeAdvice.com is a site where customers can post their thoughts regarding their insurance companies. See what customers are saying about American Family. Scroll down to get the most recent comments.  11/15/2010

Want to “vent” about your job or company? www.jobvent.com is the place to do it. Read what others are saying, also.  7/23/2010

Did you know copiers have hard drives?  
Information that you copy could fall into the hands of the wrong people, particularly the company you lease your copier from. Agents BEWARE!  5/16/2010


What Every Agent and Customer Should Know About Clue Reports!  1/23/2010

IRS Private Letter Rulings!
        American Family agents, and other captive agents, are considered independent contractors by the IRS. Since the IRS issued Private Letter Rulings for most of the captive companies, captive agents who filed SS-8’s found their appeal rejected immediately because of these Private Letter Rulings. Very few agents have actually read the 111-page Correspondence between AmFam and the IRS, nor have they read the summary American Family Private Letter Ruling so we are posting both of them for you. You will be interested to read about how little ‘control’ the company is supposed to have over the operation of your agency.
        Information in an Allstate Private Letter Ruling states that an independent contractor agent has an “economic interest” in the customer list, and agents will realize this ‘interest’ when they are either paid by a 3rd party for their business OR the agent receives termination benefits based on a formula designed to equal a fair market value of their accounts. [Paragraph 6 under Independent Contractor Phase, (Allstate Ruling)]
        This presumes a fiscal value which should allow an agent to claim capital gain when paid termination benefits. Even more interesting is the fact that AmFam issued a document that says “Formerly called Extended Earnings, the name was changed to “Termination Benefits.” These are payments made to the former agents not to compete.” (See SECA Kit)
        The non-compete clause applies for one year.The AmFam contract does not state that a customer list cannot be used after the one year because logic would dictate that you’d have to have in your possession a customer list in order to begin competing after the one year.



The 20 Common Law Factors of a Perfect Independent Contractor Relationship

Deliberately Misclassified? What Allstate Has In Common With FedEx!
This article appeared recently in the Allstate Agent Association’s Winter 2008/2009 issue of the FOCUS. The article deals with the ongoing question of whether captive agents are independent contractors or employees. We suggest you read this article carefully. You might find you are able to substitute American Family’s name each time you see Allstate’s name. Quoted from the article, “If it Quacks Like A Duck, It’s Probably a Duck.”  3/14/2008


Captive Agents, the Forgotten People!"
NAAFA is again honoring agents’ requests to remain anonymous out of fear of retribution regarding this article, but we think this is perhaps one of the best letters we have received which summarizes the position and fate of all captive agents in America. You won’t want to miss this!  2/28/2008


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If you have recently received a 3 or 6 month warning/termination letter, please contact NAAFA
If you received a warning letter for production and are over the age of 50, please contact NAAFA.
Are you experiencing any type of harassment by your district manager or other company employees? If so, please contact NAAFA.
Have you been warned NOT to join NAAFA? If so, please contact NAAFA immediately.
Notify NAAFA by email or call 1-800-567-9668.
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Articles, opinions, and viewpoints found on www.NAAFA.com are not necessarily the opinions and viewpoints of NAAFA. The opinions expressed are not those of American Family Insurance Company or any of its subsidiaries. The NAAFA.com website’s express purpose is to provide a medium whereby articles pertinent to the industry may be posted and reviewed and also to provide a medium whereby people can express their opinions in written form for any interested parties to view. The NAAFA.com website also provides information specifically for its paying members to view and this disclaimer applies to those articles as well. Therefore, NAAFA disclaims any liability for any harm that may be done as a result of these opinions being expressed herein. The NAAFA.com website does not guarantee accuracy and correctness of articles posted.
 
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