Todays Date: Oct 17, 2019

Home Page
Member Login

Contact NAAFA

Article Archive

Breaking News
Captive Agent Associations
Contact Your Politician
Useful Links
Members Only Info
Corporate Salaries
Recent News Items
NAAFA Report Online
NAAFA Report Online

Directly to MEMBERS ... Directly from NAAFA
New update as of 9-18-2019! -- #82 - American Family Files for an Extension, and More. Follow the link and sign in with your member password. Please honor the confidentiality of this information. These messages are for dues paying members. Thank you for your support.
The NAAFA staff.

Agent/Company Issues

How Small Businesses Are Training for Active Shooters It's sad that we have to even think this way, but do you and your staff know what to do if an irate customer or former employee turns 'assailant' and decides to "get even" by entering your office workplace and begin shooting? Several companies are mentioned in this article that provide staff training in emergency situations. Please Read Carefully! 8/27/2019

State Legalizes Assisted Suicide - but Questions Over Whether Insurance Will "Do the Right Thing":  Maine became the 8th state to legalize medically assisted suicide (following CA, CO, HI, OR, VT, WA, NJ) Many feel assisted suicide is a dangerous public policy that puts vulnerable people at risk for abuse, coercion and mistakes. It also, some say, provides profit-driven insurance companies perverse incentives to offer a quick death, rather than costly continuing quality care. Wow! Something to think about, right? 6/13/2019

ALERT: Three Captive Insurance Companies Are Being Sued For Misclassifying Agents As Independent Contractors: Don't miss this article. We think it's time everyone hears about what is going on. Read about the three class actions, all for the same cause, filed against American Family, Farmers, and State Farm. Does this send a message? 4/23/2019

American Family Insurance to Acquire Ameriprise Auto & Home for $1 Billion: The changing face of AmFam continues to undermine the independent contractor status of the agents. One wonders what they have in mind for their captive agents' futures. 4/2/2019

What's the Future of Agent Distribution? By Andrea Wells It might surprise you to find that some experts are predicting a very bright future for insurance agents. Yes, captive companies are reducing their captive agent pool, but they may be forgetting the importance in the consumer's eyes of a local brand. Agents can and do adapt to the needs of their customers, including those who want to interact via mobile devices and online. Beware, insurance companies, because agents still control the market and you may find your future is still in their hands! 2/4/2019

The Wealth Gap and Miller Park's Deal: Well, they've done it again. Of course there's no limit to how deep AmFam's pockets are because they're robbing their agents to get it. Believe us when we say that daily we hear from agents who are screwed out of not only thousands of dollars, but are having their whole agencies taken away from them. It's absolutely outrageous, and Bruce Murphy points it out very well in this article. It is simply hypocritical that the company can brag about it's agents and yet treat them so horribly. As we have said many times ... the dream they say they are protecting is the agents' nightmare! 1/25/2019

Insurance Agents Assured of Trump Pass-Through Tax Break under Final Treasury Rule: Wow, at last a break for insurance agents! A 20% deduction, referred to as the Section 199A deduction, is available for the first time on 2018 federal income tax returns. This 20% deduction was designed to target small businesses that don't benefit from the Trump tax law's reduction in the top corporate rate from 35 percent to 21 percent. GOOD NEWS. 1/25/2019

Wisconsin's Next Governor Picks Insurance Commissioner: And guess who it is?? American Family's own Mark Afable. We'll let you imagine the implications of this one. 12/29/2018

Will State Farm's "no Al" words come back to haunt the company? Of course, we agents here are AmFam would have to agree with State Farm, but one must ask whether or not we are really seeing the writing on the wall. How important is a compassionate, human agent whose rates are so high the customer won't buy anyway? Could the captive agent be backed into the corner when he only has one company to sell for? 10/31/2018

Prudential Joins Direct-To-Consumer Movement: Attention "captive agents:" If you think this isn't a trend, you're sadly mistaken. Does the wise agent make the shift to independent now, or wait till his captive company shuts him down? 9/4/2018

State Farm Agrees to Pay $250 Million, Avoids Racketeering Trial: Moral of the story is "don't ever assume the judge hasn't been bought off." This whole saga seems once again to show how often insurance companies get by with just a slap to the hand. Meanwhile, policyholders continue to be hurt. 9/4/2018

Class Action Settlement Insurance: Hmmm! Don't you wonder if American Family has this? Here's hoping they have a need for it soon!! 8/31/2018

U.S. Appeals Court Takes Up American Family Agent/Employee Clasification Case: No answers just yet on this decision that will certainly impact many agents and their families. Employee-type control at AmFam has been extremely evident for years and years, according to the complaints the NAAFA office receives. Recently, we learned that agents were mistreated as far back as the late 1970s, information that is new even to us. We pray that the appellate judges will open their eyes to this abuse. NAAFA members can read more in our members-only column, Directly to Members, Directly from NAAFA. 8/3/2018

Nationwide Hit With Agent Lawsuit Over Business Model: It appears captive agents at Nationwide aren't at all happy about their choices for getting their book of business back after being shoved out.  7/18/2018

ALERT! Do Advance Commissions apply to your Termination Benefit Package? NAAFA has suspected for quite some time that the Advance Commissions/renewals are not being applied to the formula for determining your Termination Package amount. ALERT! Click on the link to see the announcement about this important issue.  6/21/2018

American Family, Main Street America Reveal Plans to Merge: The combining of captive and independent agents ... what a concept, but is it going out of style? Think "Nationwide!!"  5/4/2018

Why Independent Agents Remain Alive and Well: NAAFA certainly agrees with the author here who says insurance agents are NOT going away. Gotta love it!!  4/30/2018

Independent Contractor Bombshell for CA Businesses: CA Supreme Court Curtails the Lawful Use of ICs It seems the environment is still ripe for ruling against the misclassification of independent contractors. CA now joins MA by adopting a 3-point factor test to determine how workers are to be classified. This new ABC test presumes all workers to be employees unless they perfectly fit this 3-point factor test. A fascinating read!!   4/30/2018

Nationwide Switching to Independent Agency Distribution Model by 2020 Of course, the question being asked, "Is this because of the Jammal v AmFam misclassification case?"   4/17/2018

Agent Responds to the Green Beret Sgt    4/6/2018

Agent Responds to "Writer Who Chooses to Minimize the Hurt of Terminated Agents"    3/15/2018

Writer Chooses to Minimize the Hurt of Terminated Agents! All Comments Are Appreciated.   2/26/2018

Top 10 Employment Discrimination Charges in 2017: 84,254 workplace discrimination charges were filed with the EEOC in 2017. Read about the different types here   2/16/2018

Age Discrimination Suit Focuses on Facebook Ads Allowing Employers to Target Younger Workers No matter how you look at it, age discrimination is a big issue with some companies. They hire and fire certain people in certain age brackets. And often, they get by with it. Sad!   12/22/2017

CEO Says Insurers Should Strive to be Loved: You gotta read this. To reach this goal one must really have to have faith….in something!! Not sure what. Let NAAFA know what you think. Is this a realistic goal?  12/14/2017

Class Action Lawsuit Filed: Farmers Agents have filed a Class Action lawsuit against Farmers Insurance Exchanges claiming that the agents are misclassified as independent contractors when in reality they are being treated as employees. Sound familiar? The case has been filed by Crueger Dickinson LLC, the same law firm that is handling Jammal v American Family. Be sure to read the actual lawsuit papers filed at the website.  12/5/2017

Federal Court Rules Against Classification of Captive Agents as Independent Contractors Sort of interesting how the Big "I" wrote this article up. Many news outlets are carrying this story each with their own slant. And so we wait to hear whether the appellate court will hear the case or not. NAAFA members will be the first to know. Check our member-side by using your password.  9/7/2017

Farmers Insurance Exchange must make refunds to 1,600 drivers: Makes you wonder whether insurance companies will try anything thinking they probably won't get caught. Sad thing is, most of the time, they don't. Well, this time they did.  8/17/2017

Where are the Thought Leaders in the Insurance Industry?  The author made a good point here when he noticed that the insurance industry doesn't seem to produce any leadership people with opinions and ideas that might be pertinent to those discussing the emerging risk issues of today. He also points out that young mental gymnasts don't seem to be attracted to the insurance field because the industry seems to be portrayed as , shall we say, boring? An interesting read.  7/7/2017

UBER'S Former CEO & Current Chairman of the Board Sued Personally for Independent Contractor Misclassification:  When advisors of a company willfully misclassify employees as independent contractors, it appears there are other ways to seek restitution. You might be interested in reading about this case. Having an arbitration clause in a contract might encourage misclassified workers to personally sue those in charge, but even without such a clause in one's contract, this alternate avenue presents an interesting backup means for misclassified workers to seek restitution, doesn't it?  6/24/2017

The Greed of American Family  You won't want to miss this one! This is a very recent article written by Bruce Murphy of the Urban Milwaukee. It might just spark your interest. The article seems to throw a clear beam of light on what has really been happening over the years. You might want to read the comments at the end of the article, too. Or better yet, add some of your own.   4/4/2017

Following are several links to news releases that have come out regarding the recent jury decision in the Jammal v American Family class action trial. Each news article adds a bit of a different slant to the report. Check some of the "comments" at the end of some of the articles, especially the Insurance Business article. 4/21/2017
AmFam Ins Misclassified Agents, Says Federal Jury
AmFam Ins Could face $1 Billion in Legal Liability
Jury says AmFam Ins Misclassified Agents in Class Action Seeking Retirement Benefits

It will be some time before the judge comes back with the penalty, but just knowing that the jury agreed with Plaintiffs on behalf of the agents is awesome. Hey, give God the GLORY!  4/18/2017

Insurance Industry Jobs Among the Most Stressful: Study  Interesting article, but it's not telling us anything we don't already know. You may want to go to the link in the article "ranking No. 2 in a recent study" where it says stress "all depends on the prevailing workplace culture, leadership, workload demands and a host of other factors." Some report to us that we have them all!!  4/17/2017

Former AIG Chairman Greenberg Admits to Wrongdoing in Longstanding N.Y. Fraud Lawsuit  Is it the type of business that attracts corruption or is it that corrupt people are attracted to the insurance industry? Either way, it sure seems like we're hearing about a lot of it in this area.   2/13/2017

Concerning Agents' Email Regarding Ethics Survey:  It has been reported that AmFam agents have received on or about January 9, 2017, an email asking them to participate in an anonymous survey with subject matter being, "The Current Culture and Practices related to Ethics and Compliance." You are given until January 20th to respond. Many have reported to this office that corruption rampantly abounds within the company. Listen closely. Now is your chance (some would argue it's even your obligation, perhaps) to let the company know how aware you are of the excessive amount of corruption you know exists within the corporate walls of the company you work for. It appears this is a 2016 American Family Compliance and Ethics Leadership survey by CEB Corporate Leadership Council out of Arlington, VA.   1/10/2017

How Layoffs Hurt Companies  We have seen hundreds of "layoffs" (well, terminations and forced retirements, if you want to get technical!!) at AmFam. This article points out some of the harmful effects of laying off people. One of the quotes the article uses is "Firms that are laying off are almost by definition in trouble." By Peter Cappelli. Interesting observation? You decide!!   12/12/2016

Jammal, et al.v.American Family Ins. Group, et al   The class is being notified by Kurtzman Carson Consultants (KCC) of College Station, TX of their right to "Stay in this lawsuit" or "Get out of this lawsuit." The case will proceed to trial on January 23, 2017 at 8:30 AM in the Carl B. Stokes U.S. Court House in Cleveland, Ohio. You may read more about the case by clicking on the court case above.  11/25/2016

MUTUAL HOLDING COMPANY: A Shell Game  NAAFA received the link to this article just recently with a note that we should 'get this out to everyone' and that is just what we're doing. Although written back in 2001 when Liberty Mutual was going the holding-company reorganization route, what the author has written here is perhaps a real eye-opener. Here's one sentence from the article that might peak your interest: “So what's wrong with what Liberty Mutual wants to do? Nothing, if you're a fan of legalized bait-and-switch schemes.” More on this on the member-side. See Message #12  10/10/2016

State Farm accused of bankrolling judge to throw out $1B case against company.  Some State Farm customers claim the company conspired to help elect an Illinois Supreme Court candidate so he could vote to throw out a $1B award against the company. [Read more on this on the MEMBER-SIDE under Directly to Members ll Directly from NAAFA]  10/3/2016

AMERICAN FAMILY INSURANCE SEEKS CHANGE IN CORPORATE STRUCTURE:  Of course, we're told this move is best for everybody….right? How often in the past have we heard that? And the question still remains…how will it affect the agents' Termination Benefits? There's no immediate answer to that, but we do know that new policies with lower commissions do affect Termination Benefits. Well, many are drinking the Kool-Aid, of course, but it makes sense to be cautious.  6/17/2016

Zurich's New CEA Greco Reorganizes Company, Simplifying Structure!  Zurich really seems to be making the news lately. And with the new restructuring at AmFam... one has to wonder!  6/17/2016

Executive Suicides Shock Business Community in Switzerland!  In an environment where "If you fail, you are expected to excuse yourself from the conversation and drop any further ambitions….you're not expected to show your face again," it is no wonder the number of suicides is increasing. It seems to NAAFA that top executives are not the only ones feeling the pressure these days. No company is worth taking such drastic, destructive, and final steps over!! NAAFA encourages all agents faced with disappointments to contact us immediately.  6/6/2016

Martin Senn, Former Zurich CEO Commits Suicide  Whether these suicides are a trend or not, we don't know, but Senn is the second top officer at Zurich to commit suicide lately. Zurich's finance chief Pierre Wauthier committed suicide in August of 2013. Senn (aged 59) shot himself in May, 2016. It seems 'failing to meet company expectations' played a role in these tragedies. Sad!  6/6/2016

Noncompete Agreements a Tricky Target For Obama Administration  is an interesting article revealing the status of non-competes in various states and the views of this administration. We all know what the non-compete in our contracts has done to the rights of consumers (our clients). The non-compete is designed, we believe, to protect only the company. The agent's right to work is somewhat jepordized during the non-compete, and most certainly the right of the consumer to pick the agent of his choice is restricted during the non-compete period. This is a good issue to watch  5/17/2016

JUDGE CERTIFIES CLASS ACTION  United States District Court Judge Donald C. Nugent, (for the Northern District of Ohio Eastern Division) on 3/2/2016, certified the Class Action case of Walid Jammal (Plaintiffs) v American Family Insurance Group. (Defendants). Plaintiffs filed this class action on February 28, 2013 against American Family Insurance Company alleging that American Family improperly classifies its agents as independent contractors when actually they are employees because of the amount of control the company maintains over nearly every aspect of the agents' business operations.  3/3/2016

American Family Reports Strong 2015 Results.  Things evidently went well for AmFam in 2015, according to this article. Does this mean upper management will again take huge salaries and bonuses? Or does it mean the policyholders will finally get some relief in lower premiums? Well, what we do know is that if the field agents benefit at all, it will be because they worked extra hard to sell products that are some of the highest in the market place. With the windfall received by the Company from terminating huge numbers of agents because of their lack of production, it's no wonder AmFam can report a 'strong' 2015!  3/3/2016

Top 20 Claims Satisfaction Rankings.  You might be interested to know that American Family ranked 11th in claims satisfaction ranking among the top 20 companies listed here. Also interesting is the fact that the overall claims satisfaction score tumbled for the first time in 5 years. Read it here!  3/2/2016

MN: Exams of 16 Life Insurers Find $174M in Unpaid Benefits, So Far!  A great example of our MN Insurance Commissioner's outstanding work. NAAFA has felt for a long time that insurance commissioners need to make insurance companies more accountable. To think that beneficiaries can't be located in today's world of advanced computer availabilities is unbelievable. Sure hope our favorite insurance company's name doesn't appear on their list!  2/16/2016

Could Cyber Kill the Insurance Industry? ND Insurance Commissioner Adam Hamm thinks it coould. Read and listen to this clip as to why he thinks it might happen. Interesting to say the least!  1/19/2016

The 2015 Fall-Winter NAAFA Report is now available under “NAAFA Report Online!” We thank those who have contributed articles and other information. Let us know your thoughts on this interesting and pertinent issue.  12/29/2015

Best, Worst States for Insurance Regulation: Many have expressed concern for a long time about how good a job insurance regulators do in policing the activities of insurance companies and in truly listening to the complaints of consumers. R Street tries to answer certain questions with its analysis (see article) but one of the important questions that might have been asked is "How free are consumers to choose the insurance agent they want?" Be sure to scroll down in the article and read the actual 2015 Insurance Regulation Report Card.   12/8/2015

5 Ways Google Insurance will Disrupt the US Auto Insurance Industry Although only in CA so far, guess what insurance company is included in one of the nine that Google quotes from? The General!!! We can probably assume it won't be long till Google is offering this price comparison program in the rest of the states. Watch out!  11/23/2015

The Case for Independent Agency Optimism Recent research indicates that perhaps the independent agents offering choices (suppose this eliminates the independent agent NOT offering choices??) doesn't really have to worry so much about his future as some (captive) companies are proposing. Read why this writer thinks so.  11/5/2015

How Independent Agents Can Give Customers What They Expect: What customers expect may surprise you. Be sure to read the 6th paragraph carefully and then think over whether you agree with this finding and whether you're prepared to provide this kind of service. Interesting!!  9/13/2015

9 Investigates: Insurance Companies Cutting Corners on Safety. This is quite a report on how certain insurance companies order repair shops to 'cut corners.' Does it happen where you are?  8/27/2015

A Rich Financial Realm Run Almost Without Oversight:  Mutual insurance companies are supposed to be responsible to their policyholders, but are they really? Massachusetts Mutual Life and Liberty Mutual are both trying to live down gossip about how they actually abuse their policyholders. Their CEOs are rewarding themselves with huge annual pay packages, luxurious offices where the company spent $4.5M to renovate them, and several private jets for the travel of their family and friends. Who polices them? You won't want to miss this article.  8/25/2015

The FedEx Driver Who Sued and Won:  For those interested in a case not completely unlike Jamal vs American Family (class action) please read this catch-up article. The dispute is whether the FedEx drivers are employees or independent contractors.  8/25/2015

Companies must Report CEO-to-Worker Pay Ratio under new SEC Rule: Oh, oh!! This should prove interesting since one of the hottest topics of discussion lately has been CEO compensation. One would disparage 'cooking-the-books' to justify one's salary, wouldn't one?  8/6/2015

Labor Dept's 6-Part Test for Classifying Employees, Indep. Contractors: New guidelines for classifying workers under the Fair Labor Standards Act (FSLA) has been issued by the US Dept of Labor. As our readers know, the question of whether AmFam agents are independent contractors or employees is a hot issue right now. The Insurance Journal has summarized this for you, but the original memo can be found at   7/20/2015

24 Car Insurance Companies Ranked on Shopping Experience Satisfaction It's sad to see AmFam 4th from the bottom, but that's where we landed. There's no doubt about it, the independents make the shopping experience much more pleasant. Of course, we do understand from the report that drivers who find cheaper rates report higher satisfaction, so is it any wonder AmFam's at the bottom? And yes, agent are getting fired because they can't sell enough!   5/20/2015

2014 American Family Corporate Salaries - Top Ten Officers  Once again, you can click this link to see the 2014 salaries of all American Family officers and employees who topped $250,000 in salary and bonuses. Be sure to read the Spring 2015 NAAFA Report for a comparison of the top Farmers Corporate Salaries to the top AmFam Corporate Salaries. Very interesting!! If you haven't received a hard copy of The NAAFA Report, you should be able to view it soon on this website by clicking the blue tab (NAAFA Report Online) in the left column of this Home Page.  5/13/2015
2014 American Family Corporate Salaries - Complete List!

Top 10 Employment Discrimination Claims NAAFA often hears from agents who feel they are suffering from some type of company retaliation. Many claim to be hesitant to express concerns or opinions on most matters because of fear of retaliation. Well, guess what? Claims alleging retaliation against an employee for involvement in a complaint reached a record high in fiscal year 2014. This is an interesting read.  2/9/2015

How States Rate on Insurance Regulation, ‘A’ to ‘F’: The 2014 Insurance Regulation Report Card might prove interesting to some of you.  It tells how judges rated each state insurance department on various topics.  Most interesting was how fraud was policed.  We noted that Wisconsin’s greatest weakness is in the area of fraud. (Page 32 of the report card.) Click here to reference the Report Card.  1/9/2015

MN Supreme Court Rules Against Ins. Co. in Key Storm Damage Dispute:  You guessed it. That insurance company is American Family. Agents have been sympathizing with insureds for quite some time when the company decided to replace only the damaged parts of siding or roofs on their hail damaged homes. But the MN Supreme Court ruled against AmFam on Wednesday, December 17, 2014. The ruling states that insurers must match colors even if that means replacing undamaged siding and shingles. Attorneys who represented the homeowners said this could set a precedent statewide. A win for the consumer at last!  12/18/2014

MORE AMERICANS RETIRING LATER THAN THEY EXPECTED !  It is entirely possible that the AmFam agents who found themselves terminated before they'd planned or agents who were forced to resign have added to these statistics. According to research by the Employee Benefit Research Institute (EBRI), there has been a big increase in later-than-expected retirements following the 2008-2009 recession. EBRI found that people who have a retirement plan tend to retire closer to when they expected, compared with those without a plan. NAAFA always recommends that agents develop a plan to retire. As self-employed workers, we have no formal pension or 401K, but many have set up SEP/IRAs which, if faithfully funded to the fullest, can really help lessen the need to continue working past what you'd expected.  11/18/2014

American Family Insurance Fosters Start-ups through Venture Capital Arm!  American Family plans to spend about $50M on helping 'entrepreneurs' start new businesses. Wonder if they'd ever consider giving some of this to agents who need the help. Interesting article you won't want to miss if you wonder where the money goes that AmFam is saving by terminating so many agents.  10/10/2014

10 Things to Know About Auto Insurance!  Although this article recognizes that AmFam is one of the 10 largest insurers in private passenger auto, it states that State Farm, Geico and Allstate lead the way and together these three companies make up 38.8% of the market share. The article contains lots of other interesting statistical information you won't want to miss.   9/12/2014

If You Have Poor Credit, You May Pay Nearly Double for Home Insurance!  This article shows by state, the average percentage that homeowner's insurance increased since the use of credit scores was instituted. No wonder it is hard to sell anything these days. Enlarge the chart on this page and see how rates in your state have increased.   8/18/2014

AssureStart in Washington names Zenner Chief Marketing Officer  As the company moves on ahead with their plans to expand direct marketing, they also appear to be moving on ahead with their termination field agents. As was stated earlier, AmFam evidently feels they have little need field agents anymore. NAAFA continues to hear every day from agents who have just been terminated. Yes, the writing is on the wall.  8/8/2014

Reinsurer Wants $100M Back After 'Falsified' Storm Report!  That's right….$100M back from American Family, ISO Services, and AIR Worldwide Corp, who are accused of falsifying a report by backdating it to hide the original bulletin. The Mariah's lawsuit accuses AIR and ISO of breach of contract and American Family of unjust enrichment, tortious interference with contract and conversion. Could this be a conspiracy to profit from the reinsurer? Read about it here.  7/10/2014

AssureStart Expands Online Small Business Insurance Sales to Three More States!"  As the agent who reported this to NAAFA said, "Talk about another nail in the coffin for agents! Why doesn't AmFam make it easy for their agents to sell?" Yes, it seems the company loves to take business away from their own. This is so easy to figure out….they get the business anyway, but without paying the agent any commission. Sad!  6/21/2014

Agents React to Walmart, Overstock in Ins: "We aren't Dead or Dying, We are Evolving!"  The discussion continues about the future of the insurance agent. Read how both sides argue to defend their positions. Once again, it seems AmFam is taking the side of the McKinsey Report by moving toward having fewer and fewer agents. But the Big "I" has some huge rebuttal arguments. Agents, we're not dead yet!  6/13/2014

Has Online Shopping for Auto Ins. Peaked?  If this report is true (numbers of people shopping for auto insurance on line is dropping) then one would have to wonder whether AmFam's plan to rid itself of so many agents is really a wise idea. Read it here and decide for yourselves. 5/20/2014

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

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 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? 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

We Need Your Help!
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 1-888-716-2232.
All responses are strictly confidential!


 Private E-mail
Why you need free (and private) E-mail

Now that you've signed up for your new e-mail account, please send your e-mail address to NAAFA so we can update your records.

Thank you!

National Headquarters

P.O. Box 578
Circle Pines, MN 55014

NAAFA Numbers:
PH: 888-716-2232
FX: 763-208-0924

Articles, opinions, and viewpoints found on 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 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 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 website does not guarantee accuracy and correctness of articles posted.
This site best viewed
with Internet Explorer
  This site best viewed with Internet Explorer NAAFA Webmaster
Website Design
Contact the NAAFA webmaster Download Acrobat
Download Acrobat Reader