ATTENTION NAAFA MEMBERS AND NON-MEMBERS!
If you have received a 3-month performance notice recently, contact NAAFA immediately! We need:
1) Your name, 2) Years with AmFam, 3) Your Age, 4) Your state, and 5) Your contact phone number
Email: NAAFAwest@comcast.net  |  Phone: 800-567-9668

Take the NAAFA Survey!

American Family rated Worst by Insure.com says CBS Money Watch. This is hard to take when you are an agent for that company, but even more difficult when you are a customer! The tendency by the company is to say the survey is skewed because JD Powers certainly never rated them that low. But instead of trying to discredit the findings of Insure.com, why not say, “OK, gang, what are we going to do about it?” [More on this in the next issue of The NAAFA Report.]  1/17/2012

Allstate Agent Association (NAAPA) Votes Overwhelmingly to Affiliate with OPEIU  a division of AFL-CIO. Technically, they will be classified as a guild. What are the implications for other captive agents? Perhaps this action will spark some interest and give some hope to other groups. We’d like to hear from you. Email us at NAAFAwest@comcast.net.  8/17/2011

Allstate Agents Hope Unionization Sparks Changes at Insurer:  If the Allstate Agent Association (NAPAA) issuccessful in organizing a guild (form of union) where does that leave other captive agents? One has to ask whether having bargaining power would make the effort all worth while or not. It’s something for us to think about.  7/27/2011

JD Power and Associates Reports:  Satisfaction with Price is Lower among Auto Ins Customers Who Bundle Policies. Amica Mutual Ranks Highest among Auto Insurers for a 12th Consecutive Year. 7/2/2011

Jim Fish, the Allstate Agent Association [www.NAPAAUSA.com] Executive Director, responds to Allstate’s plans to consolidate agencies and alter commissions  Read It Here!  7/13/11

Allstate Outlines Its Agent and Direct Distribution Strategies!  At least Allstate lets its agents know what their plans are. This article says ‘larger agencies through consolidation’ and ‘incentives to expand their business’ should improve the company’s production. And of course, their move to better serve their customers by purchasing direct-writer Ensurance making Allstate “the only company serving all segments of the customer proposition” is probably a good indication that other companies like American Family also have similar plans. What has a move like this done for the captive agent? There is a reason behind all the terminations, isn’t there? See the trend???.  5/30/2011

American Family Pays Arizona Homeowners $1.2M to Correct Mistake!  5/20/2011

NAAFA Report Readers. Look no further!  Here are the answers to the AmFam Agents’ Crossword Puzzle! and the complete list of reflections in the NAAFA Report article THE NEW YEAR—a time for reflection — an Agent’s Perspective!  4/16/2011

The 350 Most Admired Companies!  A few insurance companies (Allianz, State Farm, Berkshire Hathaway) made the list of the 350 Most Admired Companies. Sorry to see that AmFam didn’t make the list. What could we do to raise our level of admiration?? Good Question!.  3/11/2011

A quote in the article  Why Doing the Right Thing is Right for the Bottom Line! states that “The success of any organization is built on the confidence and trust of employees, customers, and the general public. The only way for an organization to gain that trust is to demonstrate honesty and integrity in everything the organization does.” 

JDPower Names Six Insurers Customer Service Champions!  Where is American Family?  2/26/2011

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

Where is American Family in the JD Powers Survey?
A recent JD Powers survey shows customer satisfaction declining in 2010. American Family does not get mentioned in the article so one has to ask, “Where do they rate?” Obviously, not at the top for customer satisfaction. The article mentions rates as a real driving factor. There’s your answer, perhaps.!  8/7/10
  
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

Does American Family’s B- Rating Concern You?  3/27/2010


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.

Courts Allowing Private Facebook Posts as Evidence in Lawsuits!
Facebook Comments May Get You Into Trouble! We knew it was only a matter of time until information found on Facebook could be used as evidence in court cases. Well, here it is!  2/4/2011

PRICE IS CRITICAL and this article definitely confirms it!
This article from JD Powers states that according to their survey, only about 10 % of the people say they did not buy from the company giving them the cheapest quote. However, one would also have to assume that 90% of the people DID buy from the company with the lowest quote. Agents have long been telling the company this fact, but it appears company officials are not agreeing with them. NAAFA is aware of several agents being given sales quotas and the threat of termination if these quotas are not met. This appears to be the ultimate in unethical and disloyal behavior toward agents. Most people know that the larger the number of policies an agent has, the greater the number of apps that agent writes per month. However, we all know that most of this business is not “raw” new business.  6/30/2009

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

• Nationwide Agents’ Association is suing Nationwide Ins. Co. in US District Court in Philadelphia over who actually owns customer information. The company has presented the agents with an addendum to their contract which, if the agents sign it, will receive better commissions. Read both the news article and the legal document by Clicking Here!  6/13/2011



• Farmers to Pay $60M to Settle Credit Score Action!  5/22/2011


• American Family not Allowed to Hide its Identity!  9/24/2010


• Ohio Agents Sue American Family in Mass-Action!  9/1/2010


• Trade Secret decisions by the 2nd Circuit (Nationwide)  and  7th Circuit (American Family)   9/1/2010


• Trade Secret and Inducement battle WON by American Family Agent Rick Hollander in May 2nd (2011) jury trial. Here are the Final Judgment & Verdict Form. Read Rick’s letter to Legal Defense Fund by clicking here. 5/24/2011
• AmFam´s motion for new trial-Hollander 6-3-2011, AmFam´s Defense for New Trial 6-3-2011, Hollander´s Resistance to AmFam´s request for new trial 6/20/2011, and AmFam´s Resistance to Hollander´s Request for Legal FeesLogin and look under Legal Cases, 6-15-2011


• Customer Sues MN AmFam Agent for Failure to Sell Umbrella/higher UIM Coverage — and WINS!  7/6/2010


• American Family Loses $2,348,414 in 8th Circuit Court of Appeals!  12/19/2009


• $17M Jury Award Against American Family Mutual Reinstated!  5/9/2009


• Appeals Court Upholds Ruling Against American Family!
  [Click Here] for the Mondry Opinion by Judge Rovner
• 80M Class Action Settlement


• Judge Overturns $17 Million Verdict Against Am Fam
• $17 Million Jury Award Goes Against AmFam
• Canadian Allstate Agents Sue over Contract Change   6/21/2008

• 12/13/2008;  Brad Teets, agent from Missouri, won his breech of contract law suit against American Family in June, 2007 and was awarded $1,000,000 by the jury. You may read the Court Opinion by clicking here.
• Dolan Media Newswire's Account of Brad Teet's Lawsuit Against AmFam!  8/1/2008
• Court DENIES Am Fam's Appeal in $1 Mill Breach of Contract Case!!
• Am Fam Appeals $1Mill Breach of Contract Decision
• Am Fam Agent Wins $1Mill In Breach of Contract Suit

• The Latest in the State Farm v Pyorre-Wier Lawsuit   4/8/2010
• Update on the State Farm v Pyorre-Wier Case   1/11/2010
• Read the latest motion filed in Rich Pyorre’s case!   11/13/2009

It might be assumed that if Pyorre is successful in getting this case dismissed that the trade secret issue would be declared a win by default for agents.

• Summary of Proceedings in the Sonoma County case of State Farm Vs Pyorre-Wier!   11/7/2009
• State Farm Loses Another Jury Verdict to Former Agent!   10/31/2009
• Update on the State Farm v Pyorre-Wier Trade Secret Case   4/7/2008
• Defense Funds Needed In Key Trade Secrets Case!
  
  Captive agent associations have been contacted by Rich Pyorre (see information about his case with State Farm below) asking agents’ to donate what ever they can to help cover his legal expenses as he goes to court in March to fight the TRADE SECRET issue. This is an extremely important issue to all captive agents. We are posting the letter NAPAA’s (Allstate Agents’ Association) is sending out in their newsletter and posting on their website. This letter explains the seriousness of the Trade Secret case as it pertains to you.
  
  If you are able to donate anything at all, it would be money put to a good cause. You will see where to send your donation in the document. Please Click Here.
  
  
• Update from Rich Pyorre on his case with State Farm!   7/11/2008
• Rich Pyorre"s Struggle with State Farm   10/12/2007
• Pyorre Email to NAAFA 10-10-2007
• State Farm Licensed Staff Agreement
• State Farm Answers on Licensed Staff Agreement Waiver

• 12/20/2008;  American Family Loses $1.6M Appeal in Dan Samp Wrongful Termination Case! !
  [Click Here for Editorial and Legal Opinions].
• 12/20/2008;  Unjustly Terminated agent wins $1.6 Million from American Family! Click here to read the The Court of Appeals Decision and also The Samp Award.

• 2010 SECA Kit


• The Capital Gain Legal Fund editor gives a fresh summary of the capital gain issue along with predicaments of agents regarding independent contract/employee issues and who owns a captive agent’s agency.  3/28/09


• Attorney List


• Legal Review of Agent Contract
• Tape Recording Laws by State
• Update on Capital Gains

• 2010 Corporate Salaries Available NOW!  4/10/2010
• 2009 Salaries  4/10/2010
• 2008 Corporate Salaries
• 2007 Corporate Salaries
• 2006 Corporate Salaries
• 2005 Corporate Salaries

• Insurance distribution is changing and agents should be prepared 1/29/2012
• Former Agency Assistant to Spend Time in Jail!  Brian Larson, American Family Agent, lost his assistant, Lisa Sue Johnston, when she was caught stealing over $27,000 from his agency. Ms. Johnston will spend the next 16 months behind bars! 1/9/2012
• Allianz, AmFam & 15 Others Receive Ratings Updates!  The good news is Fitch has affirmed AmFam’s IFS (Insurer Financial Strength) rating of A and they say the rating outlook is stable. We had hoped for an increase, but we’re certainly pleased with this considering all the issues! 12/20/2011
• Allstate Drops N Carolina HO’s Who Insure Autos Elsewhere!  If Allstate is doing this, will American Family be next? If so, watch for your renewals to drop even more! 11/28/2011
• MO Pastor Pleads Guilty in Death of Congregant, a Farmers Ins Agent!  10/26/2011
• Ex-AmFam Agent Gets 14 Months for Fraud Crime never pays. When will people learn?  11/18/2011
• Nationwide to Acquire Harleysville Ins Do purchases such as this make the buyer stronger? One has to wonder when AmFam will follow with more mergers and/or acquisitions. Would such a move enable AmFam to have better rates, better products, more satisfied customers?  9/29/2011
• The IRS is offering a break to employers who come clean about wrongly classifying workers as independent contractors to avoid paying federal payroll taxes, the agency announced this week!  9/26/2011
• Allstate Agents Assoc Votes on Guild!  Allstate Agent Association members will vote on whether to form a guild (type of union) in an effort to legally have some input into such things as commissions, deciding whether agents are employees rather than independent contractors, etc. We need to keep an eye on movement at Allstate!  7/22/2011
• 4-Things Agents Should Do To Avoid E&O Claims!  7/1/2011
• Wells Fargo Settles Sex Discrimination Claims for $32 Million!  How similar is AmFam’s assignment of transfer policies to the “assignment of accounts and leads” which Wells Fargo is accused of?  6/15/2011
• Iowa Man Accused of Beating up Boss, An Insurance Agency Owner!  4/29/2011
• See where AmFam ranks in P & C market share, according to NAIC!  Also, check out where they are in Life. Read “Ranking the Top 25 P & C, Life/Fraternal Insurers by Market Share”  3/4/2011
• Should More CEO’s be Fired?  2/11/2011
• Judge Awards $11.7M to Agents whose Commissions were Improperly Cut!  1/15/2011
• Is Your Boss Guilty of Any of the Seven Deadly Sins?  12/11/2010
• Allstate, State Farm Workers Arrested in Roles in Auto Fraud!  10/15/2010
• $4M Home Insured by American Family for 8 Days Burns in Des Moines!  8/30/2010
• Why isn’t American Family on Ward’s List of Top 50 Performing P/C Insurers?!  7/30/2010
• Obama Signs Bill Extending Flood Program!  7/9/2010
• Dangerous Dog Owner Must Insure it for $50K!  7/2/2010
• Allstate Denies Agents’ Group Claim it Plans to Cut 3300!  2/6/2010
• Allstate to Shed Agents!  2/6/2010
• Review: American Family Insurance!  1/9/2010

• The NAAFA Report: Summer 2011
• The NAAFA Report: Spring 2011
• The NAAFA Report: Winter 2010
• The NAAFA Report: Fall 2010
• The NAAFA Report: Spring 2010
• The NAAFA Report: Winter 2009 - 2010
• The NAAFA Report: Summer 2009
• The NAAFA Report: Spring 2009
• The NAAFA Report: Winter 2008
• The NAAFA Report: Summer 2008
• The NAAFA Report: [Non-Member] Spring 2008
• The NAAFA Report: Fall Issue 2007
• The NAAFA Report: 2nd quarter 2007
• The NAAFA Report: 1st quarter 2007
• The NAAFA Report; 3rd & 4th Quarter 2006
• The NAAFA Report; 2nd Quarter 2006
• The NAAFA Report; 1st Quarter 2006