Jack Lynn, the newly elected president of the ProfessionalInsurance Agents of New Jersey, has issued a statement defendingagents' contingent commission fees.

Mr. Lynn, a partner and vice president of the Dalton InsuranceAgency in Glassboro, N.J., was installed as president of theassociation this week during the organization's PIANJ and PIA NewYork joint annual conference in Atlantic City, N.J.

In a statement, Mr. Lynn said “PIA believes that the possibilityof earning incentive income–call it profit sharing, contingentcommissions, or whatever–is traditional. More important, it islegal and a reward for excellence.”

He said PIA is well represented and has a unique grasp of thecompensation and disclosure issues facing independent agents,especially with Kenneth Auerbach in the positions of PIANJ NationalDirector and PIA National Treasurer/Secretary.

Mr. Lynn said agents need to realize the importance of embracingreal-time technology (the ability to enter multiple carrier siteswith a single sign-on through their agency management system) andcontinuing education to ensure personal development and industryprofessionalism.

He said it is important for producers to recruit new blood intotheir agencies and be attentive to the role of women in theinsurance industry. He also urged agents to stay attuned to changesin the sales process and new ways to grow their business.

As president, Mr. Lynn promised vigilance on several issues ofconcern to New Jersey's independent agents. Among them, “to alwaysbe aware that agents' ownership of expirations is of paramountimportance to us all” and “to protect agent income.”

“The changing auto insurance situation in New Jersey and theinflux of new competitors has impacted our agency incomes,” Mr.Lynn said. “Those agencies that have endured and prospered in theaftermath have two common denominators: one, an ongoing salesprocess and, two, alternative revenue streams, such as life, groupand financial services.”

He also encouraged insurers to stay on top of the industry withregard to innovation. “Give us a gimmick,” he urged. “A coveragewrinkle that you know the competition does not have. As yourdistribution method of choice we will have a combined, unfairadvantage, if you will.”