Prepare Your Clients for Hurricane Flood Risks Page 9

May 2014 National Association of Professional Insurance Agents

Insurance is not “stuff.”Insurance is serious business. page 3

From the President

2 September 2009www.pianet.com

You are walking down the aisles of your favorite dis-count store. You stop in the auto department to pick up a few bottles of 10W-40 oil. You go over

to housewares, because your wife wants you to get some of those plastic containers — you know, the kind that look like Tupperware but are a lot cheaper. You see that jars of mixed nuts are on sale, so you throw one in the cart.

Then you pass by this shelf next to the DVDs that says “Insurance.” You think to yourself, “I need coverage for my business,” so you take a box marked “BOP” and throw it in your cart next to the mixed nuts. You’re about to leave, but then you think, “Maybe I need some cyber liability, too.” You toss another box in the cart. It lands on the oil.

What’s wrong with this picture? Everything, because contrary to the claims of those who try to market insurance as a commodity, consumers don’t see it that way. They know that insurance is a contract to protect people and their property, and a promise to be made whole in the event of a loss. It’s not something that can be found in a box next to the canned tomatoes.

Insurance is serious business. Insurance is not “stuff.”Our own research by The PIA Partnership found that insurance consumers want a

relationship. They want what Professional Insurance Agents offer. Since our findings, others have conducted research and came to similar conclusions:

The Hanover Insurance Group found that nearly 60 percent of consumers who had purchased insurance through a direct channel ten or more years ago reported switching back to an independent agent because they wanted more value.

Ernst & Young found that consumers do not want to do all their insurance shopping online, and they care about more than just price.

Conning & Co. found that 12 of 18 personal lines insurers that have outperformed their peers in both growth and profitability over the past decade use the independent agency distribution channel, either in whole or in part.

Just this month, the TransUnion Auto Insurance Shopping Index reported that online shopping rates for auto insurance were down about 3 percent in the 12 months ending February 2014, relative to a year earlier.

Recently, the CEO of one of the strategic partners who is helping a big online retailer market auto insurance was quoted saying, “Consumers don’t want a relationship with an agent or even a carrier,” and “The consumer is looking for a store or aisle in a store where the shelves are stuffed with every risk management product they need.”

They can stuff their shelves with whatever they want. If you look at the facts as opposed to the hype, consumers want a relationship. Statements to the contrary come from our competitors. What would we expect them to say?

Johnny LeePresident

PresidentJohn G. Lee, CIC, CPIA, LUTCF (VA/DC)johnnylee@leecurtis.comPresident-ElectRichard A. Clements, CIC (LA)richiec@clementsins.comVice President/TreasurerRobert W. Hansen, Jr., LUTCF (NE/IA)rhansen@npdodge.comSecretary/Assistant TreasurerGareth W. Blackwell, Jr., CPCU (ME)gary@blackwellinsagency.comImmediate Past PresidentAndrew C. Harris, CIC, CPCU, ARM, AIS, CRM (NJ)aharris@lianet.comPIA National Image Committee ChairmanSue Peachey, CPIA (KS)sue@peacheyins.net Executive Vice President/CEOMike Becker (PIA National)mikebe@pianet.orgPublisher/Editor-in-ChiefTed Besesparistedbe@pianet.orgManaging EditorSpencer Langrockspencerla@pianet.orgAdvertising DirectorAlexi Papandon, CAEalexipa@pianet.orgGovernment/Regulatory Affairs Executive EditorPatricia A. Borowski, CPIWpatbo@pianet.orgContributing EditorsJon GentileProduction EditorLaurel Prucha Moranlaurel@blueroomstudio.com

PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.400 North Washington Street,Alexandria, Virginia 22314©2014 All rights reserved.

The information in this publication is gen-eral in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situ-ation. Users are encouraged to consult with competent legal, financial, insur-ance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers.All PIA members receive PIA Connec-tion at the member subscription rate of $12.00 per year.Non-member subscriptions available at $24.00 per year ppd. For additional information on any of the subjects addressed in this publica-tion, please access the PIA National website at www.pianet.com.

May 2014 3www.pianet.com

Twin announcements that two major discount retailers — one brick-and-mortar, the other online

— would attempt to make forays into the insurance business were in the news recently. First, Walmart announced that it would promote auto insurance sales to its customers. Days later, Overstock.com announced the roll-out of a new insur-ance buying service.

The Walmart announcement was accompanied by a claim that in a mar-ket test, its customers experienced aver-age savings of more than $1,100 a year

on auto insurance purchased through the online service promoted in its stores. PIA expressed skepticism in a press release issued the same day.

“As an average saving, that figure sounds unrealistic,” said PIA National Executive Vice President & CEO Mike Becker. “Walmart says that the system it is using compares rates on an existing policy with rates on policies with the same coverage. If that is the case, we are skepti-cal that the average price difference for the same level of coverage can be that large.”

Walmart said it is “bringing one-stop shopping to the insurance industry.” PIA pointed out that consumers can already shop for auto insurance in one stop — by consulting a Main Street professional insurance agent, who can offer advice along with choices of coverage and price from among many carriers — and a lot more.

Not a Cheap CommodityJust two days after Walmart made its announcement, an online discount retailer, Overstock.com, unveiled its own new insurance buying service. Jeff Chesky, CEO of Insuritas, which is han-dling agency and policy details for Over-stock.com, was quoted in the press saying, “Consumers don’t want a relationship with an agent or even a carrier.” He said he believes the sales model of customers sitting down with an agent and discussing policies is dying.

“The consumer is looking for a store or aisle in a store where the shelves are stuffed with every risk management product they need, and that’s what we will keep doing for Overstock,” Chesky said.

PIA responded to the Overstock.com announcement and Mr. Chesky’s remarks by issuing another press release. In it, we refuted the assertion that consumers don’t want a relationship with agents or carriers.

Attention Walmart Shoppers: Agents Are the Better Choice for InsuranceDiscount Stores Move to Insurance, But Consumers Want a Relationship

Continued on page 4

“Insurance is not a cheap commodity that can be stocked on the shelves of any discount retailer.”

4 May 2014www.pianet.com

“Insurance is not a cheap commodity that can be stocked on the shelves of any discount retailer,” said Becker. “Insurance is a contract to protect people and their property in the event of a loss. Insurance is serious business.” Our press release went on to detail research by The PIA Partnership, which found that insurance consumers want what Professional Insur-ance Agents offer.

PIA summarized the results of an extensive nationwide survey conducted by The PIA Partnership for its project, “The Voice of the Customer – Personal Lines.”

Our results showed clearly that consum-ers actually do want what professional insurance agents offer: expert advice and counsel, personalized attention and inter-action, the ability to offer comprehensive protection to meet individual needs and excellent “relationship-based” customer service.

“Our research found that customers, in fact, do want a relationship with their insurance provider,” Becker said. “They are looking for a lot more than the low-est price. What they want is value — not only in the price they pay but also in the benefits they receive. Customers said clearly that they don’t see insurance as merely a commodity, and that price is not their only concern.”

The 2011 PIA Partnership survey will be followed by a new survey that is cur-rently being conducted. “The Voice of the Customer – Commercial Lines” is sched-uled for release in November 2014.

Neither Walmart nor Overstock.com is entering the insurance busi-

ness directly. Both have entered into strategic partnerships, Walmart with AutoInsurance.com and Overstock.com with Insuritas. Walmart said it will not sell insurance directly in its stores; it will direct customers to the website through its own website and in stores. Insuritas is operated by Fort Lee, N.J.-based licensed property/casualty insurance agency Tran-zutary Insurance Solutions.

Has Online Insurance Run Its Course?A series of studies over the course of the past few years buttress the findings of The PIA Partnership’s research. Research study after research study has found that insur-ance consumers care about more than price. The message is clear: They want more. And they want a relationship.

A study commissioned by the Hanover Insurance Group discovered that nearly 60 percent of consumers who had pur-chased insurance through a direct channel ten or more years ago reported switching back to an independent agent because they wanted more value.

“This research demonstrates that con-sumers really value the advice provided by independent agents and the personal rela-tionships they build with their customers,” said Mark R. Desrochers, president, per-sonal lines insurance at The Hanover. “The majority of respondents said their number one reason for switching from a direct insurance provider was to have someone to guide them through their insurance buy-ing decisions. Clearly trust and expertise are important to consumers.”

An extensive survey of insurance con-sumers conducted by Ernst & Young found that consumers do not want to do all their insurance shopping online. They care about more than just price, and good claims service is something consumers expect, rather than an extra bonus that will help a company’s retention rate.

Regarding property and casualty con-sumers’ online habits, Ernst & Young notes that “received wisdom” from Inter-net resources is growing, and in the future,

Agents Are the Best Choice for Bringing

Continued from page 3

“Insurance is a contract to protect people and their property in the event of a loss. Insurance is serious business.”

Has Online Shopping for Auto Insurance Peaked?Despite billions of dollars in advertising being spent by direct writers, shopping over the Internet for auto insurance is down for the second year in a row, according to the TransUnion Auto Insurance Shopping Index.

While 15.0 percent of the credit-active population shopped for new auto insurance policies in the 12 months ending February 2014, this was down from 15.4 percent for the 12 months ending February 2013, according to TransUnion.

Similarly, declines for auto insurance shopping rates were observed for the full years of 2012 to 2013. While 15.2 percent of the credit-active population shopped for new auto insurance policies in 2013, this was down from 15.7 percent in 2012.

Percent of Credit Population Shopping for Auto Insurance:

2009 2010 2011 2012 2013

14.9% 16.0% 16.1% 15.7% 15.2%

The same TransUnion research also indicates that customers with lower credit-based insurance scores shop most frequently, while consumers with the highest insurance scores are less likely than the general population to shop for new auto insurance. Among other characteristics, the data shows that younger people tend to shop for auto insurance more frequently, and auto insurance shopping peaks at age 25 for both men and women.

Source: TransUnion Auto Insurance Shopping Index

May 2014 5www.pianet.com

online will be the dominant channel for both research and transactions. But the study says, “Our research indicates that while online is an important part of the future, it is just one component of an integrated channel management capabil-ity that is critical to growth.”

So how many people actually pur-chase insurance online? Not that many, according to the Ernst & Young study, which found that 23 percent of custom-ers researched insurance on a variety of online channels, but only 7 percent of consumers purchased policies online.

These studies confirm that when it comes to something as important as insur-ance, consumers have a clear preference: online for initial research and a personal relationship with a professional for buying.

Even researching insurance online may be waning. Shopping over the Internet for auto insurance is down for the second year in a row, according to a survey by a company that tracks the behavior of con-sumers with credit history.

The TransUnion Auto Insurance Shop-ping Index reported in May 2014 that shopping rates for auto insurance were down about 3 percent in the 12 months ending February 2014, relative to a year earlier. Similarly, declines for auto insur-ance shopping rates were observed for the full years of 2012 to 2013.

“We are finding that despite billions of dollars being spent on advertising each year, the percentage of consumers shop-ping for auto insurance has been dropping for approximately the last two years,” said Mark McElroy, executive vice president of TransUnion’s insurance business unit.

The index was released just as two major

retailers — Walmart and Overstock.com — were announcing online sales of auto insur-ance on their websites.

Agents Welcome CompetitionProfessional Insurance Agents don’t shrink from competition, they welcome it. They have faced it before and won handily.

Competition will always be a feature of the insurance business, as it is in every business; but if agents focus solely on price, they will shortchange their strong competitive advantages: expert advice, a broad range of choices and personal rela-tionships with clients.

“Independent agents who have been in the business for a while shouldn’t get too worried about the recent announcement by Walmart that they plan to sell auto insurance,” noted PIA of North Dakota in a newsletter to members.

“Remember when Montgomery Ward’s Insurance, GMAC Insurance, Sears [Allstate captives] and even J.C.

Penney’s wanted to market auto insur-ance? These were all non-events in the auto insurance business model because the product is complicated and is not a commodity. Service and claims are key factors, which these models were lacking.”

There will always be those who try to convince the industry that the agency distribution system is a thing of the past and that agents are obsolete. If you look closely, those statements invariably come from agents’ competitors.

PIA National President John G. Lee addressed this during his keynote speech at PIA of North Dakota’s annual conven-tion. “When I entered this business in 1976, my father said to me ‘Son, they always predict that the small and inde-pendent agent will not exist in the next 10 years, but don’t worry about it. We will survive.’ Well in 2014, we are still here and thriving. Why? Because custom-ers continue to value agents. It is that simple.”

Value to Insurance Customers

“[PIA’s] research found that customers, in fact, do want a relationship with their insurance provider.”

Comments From the FieldVarious insurance publications covered the stories of Walmart and Overstock.com wanting to sell insurance. As you might expect, there were some strong opinions. Here’s a quick sample from the comment boards:

“This is nothing new. Consumers soon discover after time with the direct companies that dealing with an agent vs. a call center, the agent wins in the end. Although it takes sometimes years, or bad claims experience, for them to discover this.”

“The best agents’ clients stay for the agent, not the price. Make your clients stick for the reasons they can’t find anywhere else. Let’s send these ‘knick knacks and insurance’ clowns packin’.”

“Well, at least it sounds like the personal lines opportunities we’ll be missing can be replaced by opportunities in the E&O world!”

“I had much rather deal with my agent personally than have to go online to get a quote, make a change, make a payment, delete or add a vehicle, file a claim myself, guide myself through the claims process, or have questions about my policy, etc. I prefer the personal touch rather than quote my policies and make changes myself, or guide myself through a claim and issues with a claim. Low quality customer service online — no loyal customer service or personal relationship.”

Finally, one PIA member sent in this message directly to PIA National headquarters: “I have a very strong statement and gesture that I would like to give.”

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May 2014 7www.pianet.com

Connecticut Gov. Dannel Malloy offered a full-throated defense of state-based insurance regulation

in the United States during the National Association of Insurance Commissioners’ (NAIC) International Insurance Forum in Washington, D.C.

Malloy, a Democrat, said during a key-note address that international insurance regulators should stop “wasting time” by arguing that the United States should adopt a uniform regulatory system that supervises companies from the holding company on down.

A September 2013 report by the G-20’s Financial Stability Board (FSB) called on the United States to move toward a federal regulatory system for insurance. Connecticut Insurance Commissioner Tom Leonardi said at the time that the report “simply ignores the strengths of the state-led regulatory system,” missing the fact that “states did a great job in regu-lating insurance during the financial cri-sis.” Leonardi dismissed the FSB report as “almost self-serving.”

Malloy told Best’s News Service after his speech that state officials should be “knock-ing at the doors of other countries and tell-ing them we will not be dictated to” when it comes to the regulation of insurance.

“The sooner we put aside the discus-sion of how we’re going to turn our sys-tem into some other system and discuss how our system will interface appropri-ately with other systems, the better off we’re going to be,” Malloy said. “We’re wasting a lot of time and a lot of energy both here in Washington and elsewhere and having a debate that has no chance of success nationally.”

Malloy said there is “zero chance” a majority of states would move to adopt a federal regulatory system. “And unless Congress wants to ignore a 140-year track record of success, states, not the Federal Government, are going to have the last

word on what is required of insurers,” Malloy said.

“Suffice it to say that our state-led regu-latory system is no accident,” Malloy said. “It is well thought out and was relegated to the states for a reason: We have the nec-essary expertise to regulate the insurance market in our individual jurisdictions.”

Ongoing Tensions With FIOMalloy’s remarks come against a back-

drop of tension between state insurance regulators and the Federal Insurance Office (FIO) that is focused on the FIO’s involvement with international regula-tors, particularly G-20’s FSB.

The FIO has a statutory role interna-tionally under the Dodd-Frank Act and has heavily involved itself with interna-tional regulators, although it is prohibited under the law from acting as a regulator. At the same time, state insurance regula-tors have no representation on the FSB or the International Association of Insurance Supervisors (IAIS). It is here that tensions have developed between the FIO and the NAIC. These tensions were brought to the attention of President Obama during a White House meeting late last year by NAIC CEO Ben Nelson.

Some regulators and industry members believe the FIO should not be speaking for U.S. insurance regulation, especially

with the FSB being dominated by bank regulators. Aggravating this tension are recent public statements by FIO Director Michael McRaith, in which he said peo-ple need to “get over” the idea that insur-ance should be regulated differently than banks and securities firms.

The lack of state representation on international bodies is drawing the ire of some in Congress. House Financial Ser-vices Committee insurance subcommittee Chairman Randy Neugebauer (R-Texas) is gathering signatures for a letter that says the Federal Reserve and the FIO have overstepped their authorities in dis-cussions with the FSB and the IAIS and are trying to “usurp authority from state insurance regulators.” Stay tuned.

Connecticut Governor Malloy Strongly Defends State RegulationSays States “Will Not Be Dictated To” by International Regulators

In MemoriamT. Eldred Lee Jr., 94, of Fredericksburg, Virginia, passed away on May 4, 2014. Mr. Lee was the father of PIA National President John G. Lee. He was chairman emeritus and past owner of Lee-Curtis Insurance Service. T. Eldred Lee Jr. entered the insurance business in 1949. He was past president of the Professional Insurance Agents Association of Virginia and D.C. and received their Agent of the Year Award. He was a founding member and former trustee of the Certified Professional Insurance Agents Society, known as the CPIA.

Memorials may be made to Fairview Baptist Church Senior Citizens Adult Fellowship or Awana Group at 900 Charlotte St., Fredericksburg, Va. 22401 or to American Legion Post 55, Box 55, Fredericksburg, Va. 22404.

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May 2014 9www.pianet.com

The start of the Atlantic hurricane season is right around the corner, and your clients may not realize that they are at risk. Heavy rains, flash floods and storm surges all increase

the risk of flooding during hurricane season. Now is the time to have the “flood talk” with your clients, to ensure that they are financially covered with flood insurance.

Top forecasters from Colorado State University predict a quiet 2014 Atlantic hurricane season, suggesting that nine tropical storms will form, but only three will become hurricanes. The fore-cast was released by meteorologists Philip Klotzbach and William Gray of Colorado State University’s Tropical Meteorology Project. The Atlantic hurricane season runs from June 1 to Nov. 30.

Klotzbach said a predicted El Niño is one factor that led to their quiet forecast. El Niño, a climate pattern defined by warmer-than-normal water in the tropical Pacific Ocean, tends to suppress Atlantic hurricanes. If the 2014 season falls short of normal, it would only be the fourth below-normal season in 20 years, according to the National Oceanic and Atmospheric Administration (NOAA).

Five years ago, the last predicted “below-average” hurricane sea-son, saw nine named storms, two of which were major hurricanes. Storms during that “below-average” season caused more than $77 million in damage. It is important to remind your clients that it only takes one storm to cause significant flood damage.

Flooding From HurricanesThe average hurricane produces more than half an inch of rain a day. In fact, precipitation during a hurricane can fill about 22 million Olympic-sized swimming pools, and that’s before factor-ing in water generated from a storm surge.

When all of that adds up, your clients could find themselves in the middle of a serious flood. Without a flood insurance policy, they will be paying for the damage out of their own pockets. The average flood claim paid by the National Flood Insurance Pro-gram (NFIP) between 2008 and 2012 was more than $42,000.

And with more than 25 percent of claims originating from outside mapped high-risk areas, it is essential to communicate the financial impact of a flood to all of your clients, regardless of their designated flood zone.

Remember, there typically is a 30-day waiting period before flood insurance goes into effect. Make sure your clients are cov-ered now before the storms begin.

Visit Agents.FloodSmart.gov today to find valuable tools and resources to help you effectively communicate flood risk when having that all important flood talk with your clients and pros-pects.

The interactive Cost of Flooding tool illustrates how much financial damage is caused by repairing a home damaged by even a small amount of water. The Flood Risk Scenarios tool helps cli-ents visualize how floods happen. You can even embed the tools on your website for easier access.

If you haven’t already registered for the Agent Referral Pro-gram, you’re missing out on free, qualified leads. Prospective cli-ents who visit FloodSmart.gov can enter their address into the Agent Locator tool and be connected to an agent in their area from FloodSmart’s Agent Referral Program database. Your name will also appear on FloodSmart direct mailings and will be used by the NFIP Referral Call Center.

Hurricane season is about to begin. Take advantage of these resources and other tips and tools on Agents.FloodSmart.gov to help build your business and provide financial protection to your clients this year.

Prepare Your Clients for Hurricane Flood Risks

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Did you know that PIA members earn great commissions selling flood insurance with The Hartford?Learn more at www.pianet.com/hartfordfloodinsurance.

10 May 2014www.pianet.com

By Alexi Papandon Vice President, Marketing and Affiliate Relations PIA National

Pictures of flooded streets and vid-eos of motorists getting rescued from rushing waters seem to have

gotten a lot more common over the past few years. Yet many property owners remain at risk should flood waters affect their homes or businesses.

Many operate under the assumption that such a peril is covered by their home-owners insurance or commercial insur-ance policy. Others fool themselves into thinking that, “A flood couldn’t happen to me; I don’t live in a flood prone area,” not realizing that 20% of flood insur-ance claims originate in low to moderate risk areas and that their risk from flood is probably greater than their risk of fire. Some believe that even if they were vic-tims of a flood, the Federal Government would step in and help them, not realizing that even when this is the case, it is only in the form of loans that must be repaid.

Whatever the reason, there are many property owners that don’t have flood insur-ance but would benefit from the coverage.

I know what you’re thinking: Writing flood insurance is a hassle. People don’t want it (even if they are required to have it!) and the process of writing a flood pol-icy is time consuming and a big pain!

It may be true that in some areas few people ask about flood insurance. But the days of using that as justification for not offering it have passed. With just a little consumer education, some proactive mar-keting and an easy system for selling flood insurance, independent agents can pocket the flood insurance commissions they’ve been leaving on the table while round-ing out their accounts and leaving their insureds better protected.

The Evolution of Flood InsuranceBefore telling you about the new PIA program, which is going to transform the way that you sell flood insurance in your agency, let’s dispel a few lingering miscon-ceptions. The days of unfurling flood zone maps on the conference room table are over. Selling flood insurance in the modern age doesn’t require a trip to the local zoning office, like it may have back in the old days, or looking up rates in the flood insurance manual. Additionally, if you’ve partnered with a good National Flood Insurance Program (NFIP) Write Your Own (WYO) company, getting hands-on assistance as you go through the application process is usually just a phone call or email away.

So let’s recap:• property owners may not appre-

ciate their flood risk, but they would benefit from having flood insurance

• many property owners don’t have flood insurance, so sales potential is immense

• a good WYO company can pro-vide tons of sales and marketing support (if you don’t have a good flood partner, check out PIA’s pro-gram with The Hartford for great commissions and great customer service)

I hope that information inspires you to start making the sale of flood insurance a standard part of your agency’s sales pro-cess, offering it to all policyholders, get-ting signed waivers from those who don’t buy it and reaping the rewards when a flood sale is made.

But PIA has found a way to make sell-ing flood insurance even easier.

PIA and Floodbroker.com Partner to Make Flood Sales

Shown to the left is a sample Floodbroker.com website

· Branded for the participating agency

· Prospects enter address to determine flood zone

· Prospects complete short online form to get flood quote

· Quote emailed to agent· Agent sells flood policy

using their regular, appointed flood insurance carrier

May 2014 11www.pianet.com

Easier for PIA Members

A Better Way to Sell Flood InsurancePIA has entered into an exclusive partner-ship with Floodbroker.com. Floodbroker has gone through the painstaking ordeal of automating the process of obtaining a flood insurance quote through the NFIP. For only $50/month, PIA members can get their own agency-branded Floodbro-ker.com website, on which their insureds and prospective insureds can generate a customized flood insurance quote. At the conclusion of the easy, online process, the quote is emailed to the agent who then contacts the potential flood policy holder and places the business with their agency’s WYO company of choice.

Completing the online form takes just a couple minutes and lets the insured take the first step in getting their flood insur-ance quote, but it ensures that their agent (YOU!) gets to counsel them and com-plete the sale.

Floodbroker’s flood zone database tracks with the Federal Emergency Man-agement Agency’s (FEMA’s) digital flood insurance rate maps (DFIRMs). There are communities around the country that are not yet digitally mapped, so there are cases where the Floodbroker system may not be able to generate the final quote. In some other situations, the person completing the online form may not be able to provide all of the information necessary to obtain a quote. In these cases, the individual com-pleting the online form can still submit the information they have input into the form. That information is emailed to their agent so that he or she can follow up and con-tinue the flood insurance sale.

Floodbroker is not a WYO company. They are a unique marketing tool that helps you increase sales of flood insurance in your agency while potentially reducing your errors and omissions exposure when it comes to offering flood insurance.

Learn More About FloodbrokerThe best way to see how easy Floodbro-ker is to use is to test it out. Simply go to www.floodbroker.com and put in your

address to see how easy it will be for your customers to generate their own flood quote. Or click on the “For Agents” link to see a short video that describes how the program works.

To learn how you can get your own agency-branded Floodbroker website — with your logo and con-tact information — please contact

Evan Spindelman at 855-442-4130 or evan.spindelman@floodbroker.com.

For more information or to attend a free informational webinar, please visit PIA National’s website at www.pianet.com/floodbroker.

Alexi Papandon is vice president of marketing and affiliate relations for PIA National.

Questions? info@floodbroker.com www.pianet.com/floodbroker

ACTIVATE YOUR PIA MEMBER BENEFIT NOW! (855) 442-4130

FLOODBROKER.com is a flood quoting Web portal, for PIA members only.

With a few simple steps and a monthly subscription fee, YOUR AGENCY'S WEBSITE will be offering online flood quotes—while documenting against E&O losses.

Engage and empower your clients... SELL MORE FLOOD POLICIES with this new tool.

12 May 2014www.pianet.com

PIA National has announced a call for nominations for four presti-gious awards in its fall 2014 awards

program. Nominations are being accepted now through July 14, 2014, for the asso-ciation’s 2014 PIA National Company Award of Excellence, Company Repre-sentative of the Year, Managing General Agency of the Year and Excellence in Social Media awards.

The PIA National Company Award of Excellence honors an insurance com-pany that demonstrates a commitment to the American Agency System and seeks to further the interests of professional, independent insurance agents by creating a better business environment. PIA places a very high value on its relationships with its carrier partners.

Nominations for this award are made by individual PIA members as well as PIA state and regional affiliates.

The PIA National Company Repre-sentative of the Year Award recognizes the professionalism and unique contribu-tions of an outstanding company repre-sentative. Nominees are judged on their professional education, experience and ability; their contributions to the Ameri-can Agency System in general and PIA

in particular; their support of individ-ual, independent insurance agents; their involvement in community affairs; and their performance as an industry spokes-person.

Nominations for this award are made solely by PIA state and regional affili-ates. However, in states receiving service directly from PIA’s national headquarters, individual PIA members may submit nominations for the Company Represen-tative of the Year Award.

The PIA National Managing General Agency of the Year Award is given annu-ally to recognize the outstanding achieve-ment of a managing general agency in fur-thering the interests of agents, along with a commitment to the agency system and successful efforts to create a better busi-ness environment for professional insur-ance agents.

Nominations for this award are made by individual PIA members as well as PIA state and regional affiliates.

The PIA National Excellence in Social Media Award honors a PIA mem-ber agency that uses non-traditional com-munication tools to effectively further the goals of the organization. An agency may use Facebook, Twitter, YouTube, Linke-

dIn, blogs and other social media outlets to creatively promote programs, build upon an existing brand and introduce products and services to an expandable customer base.

Nominations for this award are made by individual PIA members as well as PIA state and regional affiliates. The fifth annual Excellence in Social Media Award is sponsored by the National Insurance Producer Registry (NIPR).

All four awards will be presented dur-ing a luncheon ceremony on September 19, 2014, in San Antonio, Texas, held in conjunction with the association’s 2014 Fall Governance Meetings.

For more information and to download nomination forms, go to www.pianet.com/awards.

PIA’s three other major national awards — the Professional Agent of the Year, Young Insurance Professional of the Year and Customer Service Representative of the Year — will be presented in Arlington, VA, on March 27, 2015, in conjunction with the 2015 PIA Federal Legislative Summit (FLS) and Spring Governance Meetings.

In at least 10 states, insurance regula-tors have warned consumers about new mobile apps that allow local driv-

ers to receive cash by providing rides. Lyft, Uber and other ride networking mobile applications have begun offering services that allow riders to use their phones to pay with credit cards for rides that are usually less expensive than taxis.

On May 6, the Connecticut Depart-ment of Insurance issued a consumer alert, warning drivers who work for transporta-tion network companies that they may not be covered by their personal automobile

insurance policies when they collect fees for driving. Loretta Worters, spokeswoman for the Insurance Information Institute (I.I.I.), said that peer-to-peer car service compa-nies should let their customers know that they are putting their personal insurance and, perhaps, their personal assets at risk.

Maryland Insurance Commissioner Therese M. Goldsmith stated in a con-sumer alert that there is a common exclu-sion in most personal auto policies for claims arising while driving for hire, a prac-tice sometimes referred to as livery service.

Worters emphasizes the importance of

car sharing service companies informing their customers that vehicles used as com-mercial ventures have to be covered with a commercial policy. According to Worters, holders of personal auto policies are required to inform their insurers of any changes to annual mileage and other factors involving their vehicles and that many insurers con-sider car sharing as a greater risk. She said questions about risk are not necessarily resolved, even when a ride networking site offers extra liability coverage.

PIA National Announces Call for Fall Award Nominations

Alerts Issued on Ride Networking Mobile Apps

May 2014 13www.pianet.com

Insurance executives, regulators and federal officials debated the role of the Federal Government in America’s

state-based insurance regulatory system during a forum in Washington, D.C., hosted by the National Journal. PIA National Director of Federal Affairs Jon Gentile represented PIA at the April 29th forum. Michael McRaith, the director of the Federal Insurance Office (FIO) and Rep. Ed Royce (R-Calif.) delivered key-note addresses.

Rep. Royce, a strong supporter of fed-eral regulation of insurance and a backer of an optional federal charter, spoke in favor of giving the FIO more authority. Royce added that a so-called “hybrid” state-federal system of insurance regula-tion is sufficient, “for now.” McRaith said the Federal Government plays an impor-tant role, “but we did not call for a federal regulator” in the recent FIO report on regulatory modernization.

McRaith avoided advocating in favor of treating insurance regulation in the same manner as banking regulation, as he did on March 12th when he told another group, “We need to get past the notion that the insurance sector in the United States should be treated separately than any other sector because of this historic debate going back to 1904.” PIA responded to that assertion in a press release.

At the National Journal forum, Rep. Royce said that there is not more trans-parency in state regulation because, “You don’t have a world-class regulator that’s able to oversee or dictate that.” He said that in many states, “You’re talking about elected politicians who become the regulatory apparatus and often times are working on their next campaign. It’s not the same discipline as you see at the Fed.” Royce said he’s not sure that an elected system “is in any way commensurate with the public interest.”

Panel DiscussionA panel discussion followed the pre-sentations by Rep. Royce and Director McRaith. Robert Detlefsen, vice presi-

dent of public policy with the National Association of Mutual Insurance Compa-nies (NAMIC), criticized the push from European regulators for global capital standards that would apply to all inter-nationally active insurance groups in the United States.

“These global standards, not surpris-ingly, are very Euro-centric,” said Detlef-sen. “It’s the European Union (EU) push-ing this very aggressively. I think the European model may be appropriate for Europe, but it’s certainly not appropri-ate for the United States. I would hope that the FIO, when they enter into these negotiations with these international groups, would push back aggressively on the global capital standard idea, because it’s really not something that would ben-efit insurers or consumers in this country; quite the contrary.”

Panel moderator Nancy Cook with the National Journal, noting that the Trea-sury Department has been lobbying for a “hybrid” state-federal model for insurance regulation, asked if that would be effective.

“We have a hybrid model in Canada, where solvency regulation takes place at the federal level and market conduct is conducted at the provincial level,” said Barbara Sulzenko-Laurie, vice president of policy and senior advisor with the

Insurance Bureau of Canada (IBC). “We have 13 provincial regulators who have responsibility for our industry.” She said Canada performed well during the finan-cial crisis, leading their federal officials to exhibit “a certain smugness. Not leaving well enough alone, they have become very active with [the] European regulators and adopting the kind of standards we are see-ing coming out of Europe.”

Sulzenko-Laurie said Canada’s federal insurance regulator has increased assess-ments on the insurance industry by 60 percent in the last five years, as much as on deposit-taking institutions, “despite the fact that we’re not the problem.”

For the RecordThe promotional material put out in advance of this forum contained a refer-ence that was inaccurate. It referred to:

“…the disputed role that U.S. insurers played in precipitating one of the world’s worst economic downturns…”

The problem with that statement is it is simply not true. It refers to U.S. insurers having “played a role” in precipitating the financial crisis, when, in fact, the opposite is true. The Government Accountability Office (GAO) found that the state-based system of insurance regulation helped to

McRaith, Royce Discuss Insurance Regulation in ForumFIO Director More Guarded in His Comments

Continued on page 18

Rep. Ed Royce (R-Calif.), a staunch supporter of federal insurance regulation, said, “You don’t have a world-class regulator” with the state-based insurance regulatory system, and that a so-called “hybrid” state-federal system of insurance regulation is sufficient, “for now.”

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May 2014 15www.pianet.com

Perspective

By Ted Besesparis

This is not a comforting thought but it’s true. Some of the folks who brought us the financial crisis are

now close advisors to President Barack Obama.

Wall Street deregulation was aggres-sively pushed in the 1990s by advisers to President Bill Clinton. Some of the same advisers have also been at the heart of cur-rent White House policy-making, accord-ing to Clinton-era documents just released by the Clinton Presidential Library.

The previously restricted papers reveal two separate attempts, in 1995 and 1997, to hurry Clinton into supporting a repeal of the Depression-era Glass-Steagall Act, allowing banks that take deposits from con-sumers to engage in risky investment prac-tices and also enter the insurance business.

The resulting Gramm-Leach-Bliley Act in 1999, which replaced the repealed Glass-Steagall Act, broadly deregulated banking and securities but at the same time preserved state-based regulation of insurance. As a consequence, the insur-ance sector largely escaped the 2007-2009 financial meltdown, while the federally-regulated sectors required massive govern-ment bailouts.

Clinton’s advisers — including John Podesta, Clinton’s chief of staff and now special adviser to President Barack Obama — repeatedly reassured him that the decision to let Wall Street dismantle regulatory barriers designed to protect the public after the Great Depression simply represented inevitable “modernization.” (There’s that word again).

They also pressed him to make quick decisions, sometimes giving him just three days to decide. A White House staffer once penned a cover note to a memo from then-Treasury Secretary Robert Rubin, which told Clinton, “The attached memo

is long, detailed and technical, but you can get the essentials by looking at the first four pages.”

In 2009, Sen. John McCain (R-Ariz.) introduced a bill to bring back the Glass-Steagall Act. McCain’s bill drew the endorsement of the Wall Street Journal, which editorialized in support of “draw-ing a line between banks that the govern-ment effectively guarantees and banks that behave like big hedge funds, experi-menting with the latest financial toxins. Hopefully, that day will come before Wall Street decides to take another headlong run at some attractive cliff.”

McCain’s Banking Integrity Act of 2009 — reintroduced in 2013 as the 21st Century Glass-Steagall Act — would reinstate the firewall between consumer banking and investment banking, while also getting banks completely out of insurance. There is a good reason for firewalls: They keep fires from spreading. This could be an idea whose time will come again.

Flood Reform ReduxWashington lobbyists like to tout. They especially like touting about getting favored bills passed. Unfortunately, it is well known that the current Congress has an abysmal record of actually enacting legislation. That’s what happens when you have a sizable caucus of lawmakers that fervently believes not legislating is part of their job description.

As far as insurance-related legislation is concerned, one insurance bill has already been enacted. “The Homeowner Flood Insurance Affordability Act of 2014” (H.R. 3370) significantly changes the rate struc-ture included in the flood insurance reform package that was signed into law just two years ago, the Biggert-Waters Flood Insur-ance Reform Act of 2012 (BW-12).

What happened? First, Superstorm

Sandy hit the Mid-Atlantic coastline. Then, lawmakers who voted for actu-arially sound rates started hearing from their constituents about big increases in their flood insurance premiums, some so large that they were at risk of losing their homes. There is nothing like a clear mes-sage from the voters to concentrate the attention of even the most ideological member of Congress.

PIA strongly supports Biggert-Waters, but we also worked to improve H.R. 3370 with mitigation provisions and the inclusion of grandfathering provisions. “As insurance agents, we have to support risk-based rating, but we want to do it on an affordable basis,” said PIA National President-elect Richard A. Clements, who is also chairman of the Flood Insurance Producers National Committee (FIPNC).

Underlying all of this is the problem of the National Flood Insurance Program’s (NFIP’s) debt, estimated at $24 billion, according to the Government Accountabil-ity Office (GAO). When you consider that most of this amount can be attributed to 2005’s Hurricane Katrina, a once in 100-years anomaly, you have to ask whether it is fair to consider this a debt owed to the Federal Government by the NFIP.

In reality, it is a debt that the govern-ment owes to itself as a result of its own failure to adequately respond to Katrina at the time. Carrying it on the books of the NFIP is a somewhat disingenuous way to avoid responsibility. In pre-Katrina years, Congress would sometimes raid NFIP surpluses for other priorities. That’s why a partial or complete forgiveness of this “debt” should be considered now, as part of overall reform. Neither BW-12 nor H.R. 3370 addresses this.

Ted Besesparis is senior vice president of communications of PIA National.

A Blast From the Past and Flood Redux

16 May 2014www.pianet.com

Final rules issued Friday, May 16, by the Centers for Medicare and Medicaid Services (CMS), in the

U.S. Department of Health and Human Services (HHS), significantly lower stan-dards for health insurance navigators, putting consumers at increased risk. They would permit unlicensed healthcare navi-gators to perform some of the functions of licensed insurance agents and brokers, while prohibiting the states from requir-ing that they obtain an agent or broker license.

“The Obama administration is attempting to gut the prudent actions taken by many states to ensure that healthcare consumers do not become vic-tims,” said PIA National Executive Vice President & CEO Mike Becker in a state-ment. “These new rules are an attempt by the Federal Government to significantly lower professional standards for health-care navigators by preempting more strin-gent state requirements.”

The new rules prohibit states from cre-ating standards that “prevent the appli-cation of the provisions of Title I of the Affordable Care Act (ACA).” The rule does not overturn all state laws concern-ing navigators; local laws that require registration or passing fingerprinting and background checks are allowed to go for-ward, provided that its implementation is consistent with Federal standards.

The new rule does, however, drop the prohibition against requiring errors and omissions insurance.

“These new rules specify that naviga-tors cannot be prevented from offering consumers advice, while at the same time prohibiting states from requiring naviga-tors to hold an agent or broker license,” said PIA National Director of Federal Affairs Jon Gentile. “By so doing, these rules attempt to declare that unlicensed navigators can perform the functions and

duties of licensed insurance agents and brokers without being duly licensed, and that the states are powerless to do any-thing about it.”

Missouri Agents File BriefOn May 15, Missouri lawmakers approved a bill that would require criminal back-ground checks for individuals applying to be licensed by the state as health insur-ance navigators. Those with past convic-tions involving fraud or dishonesty would not be licensed. It is uncertain whether Gov. Jay Nixon (D) will sign the legisla-tion. The bill attracted widespread, bipar-tisan support, passing in the Senate 27-3 after clearing the House 133-14.

While not appearing to run afoul of the new HHS rules, passage of the bill comes despite the fact that Missouri’s U.S. Western District Court issued a preliminary injunction against another law that requires navigators to obtain a state license. The PIA-affiliated Missouri Association of Insurance Agents (MAIA) has filed an amicus brief with the U.S. Court of Appeals for the Eighth Circuit, supporting a challenge to the injunction. Although the ruling only applies to Mis-souri’s law, it could have major implica-tions for other states that passed similar laws or regulations.

Regarding the original Missouri injunction, Larry Case, executive vice president of MAIA, said it eliminates any meaningful oversight for navigators and flies in the face of state regulation of insurance.

“In many respects, the judge who issued the injunction created a Wild West ‘buyer beware’ environment for consum-ers who deal with navigators,” Case said. “This provides opportunity for convicted felons or unscrupulous individuals who may have been denied an insurance license or had their license revoked to

become a navigator or certified applica-tion counselor and gain access to personal information of Missouri consumers.”

PIA’s PositionPIA supports the adoption of strict stan-dards governing navigators. PIA believes that a navigator’s role should be carefully defined and overseen by the states, and that navigators should not be allowed to engage in activities that include selling, soliciting or negotiating insurance.

Several states have chosen to enact leg-islation governing navigators, and we sup-port these efforts to protect consumers. In order to sell, solicit or negotiate insur-ance, a producer license should continue to be required.

We support strong consumer protec-tions, including allowing exchanges to encourage or even require navigators to carry errors and omissions liability cover-age, so consumers may be held harmless for any mistakes made by navigators.

Above all, PIA encourages utilization of the current agent and broker commu-nity in the delivery of healthcare coverage. Agents and brokers are licensed, regulated and experienced professionals that edu-cate consumers on complex products and enroll them in policies that best fit their personal needs.

Agents and brokers have a deep famil-iarity with insurance markets and prod-ucts, they service plans throughout the year, assist with renewals and are held to strict compliance standards. Agents and brokers must meet continuing education requirements in order to maintain their licenses. In addition, they are required to maintain continuous professional liabil-ity insurance coverage in order to protect consumers.

In short, agents are the better choice. They offer consumers a lot more.

New Federal ACA Rules Could PreemptSome State Standards for Navigators

May 2014 17www.pianet.com

PIA Connection Marketplace rates: $95/issue for 10 issues; $120/issue for 5 issues. To learn more and get a contract, or to inquire about display advertising, please contact Alexi Papandon at alexipa@pianet.org or 703-518-1353.

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Did you know that we’ve refor-matted the member benefits listing shown monthly here in

PIA Connection? You’ll find it on page 19 of this issue. We have made it cleaner so that it is easier for PIA mem-

bers like you to take advantage of the many member benefits that are offered to you through PIA National. To download an electronic version of this one-page guide to member benefits, please visit www.pianet.com/doc/memberbenefits.pdf.

Did you know that you can receive PIA Connection electronically? PIA members can request electronic cop-ies of PIA Connection by completing the online form at www.pianet.com/emailconnection.

Did you know that PIA has an RSS feed so that you can stay current with insurance news? Learn more about RSS feeds and how to subscribe to PIA’s RSS feed at www.pianet.com/rssguide.

Did you know that you can purchase clothing and other gear with the PIA logo on it? That’s right, simply visit our online store at www.pianet.com/piaonlinestore to show your PIA pride.

Did you know that PIA members can save money when filling prescriptions not covered by insurance with the PIA RxSavingsPlus Discount Card? This discount program is avail-able to all employees and clients of PIA member agencies. Visit http://pia.rxsavingsplus.com to print your card and start saving

today!Did you know that PIA members can sign up for free insur-

ance industry publications right on PIA’s website? Just visit www.pianet.com/freesubscriptions to see the print and electronic publications currently available.

Did you know that PIA has negotiated a special agreement with The Rough Notes Company to make new subscriptions for The Rough Notes Producer Online suite of products available to PIA members at an exceptionally discounted cost of $500 annually? Integrating ten Rough Notes products into an easy to use Web-based format, The Producer Online will help produc-ers identify the many risk exposures and provide detailed cover-age analysis associated with both personal and commercial lines policies. The Producer Online also describes the related coverages that should be considered for each classification. Learn more at www.pianet.com/produceronline.

Did you know that PIA members can show that they belong to PIA by putting the PIA logo on their business cards, letterhead, signage, websites and other promotional materials? To download PIA logos in various formats please visit www.pianet.com/pialogos (PIA National login required).

These are just a few of the member benefits that PIA National makes available to PIA members. To see more, visit our website at www.pianet.com.

Do You Know About These PIA Member Benefits?

For the latest insurance news and to access your PIA member benefits visit www.pianet.com.

18 May 2014www.pianet.com

affilia

tesALABAMA

PIA of Alabama, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096PHONE: (770) 921-7585 • FAX: (770) 921-7590e-mail: jerry@piaga.com • Web Site: www.piaga.com

ARKANSASPIA of Arkansas Inc., 10025 W. Markham, Little Rock, AR 72205PHONE: (501) 225-1645 • FAX: (501) 225-2550e-mail: evp@piaar.com • Web Site: www.piaar.com

CA/NV/AZ/NMPIA Group, 3205 Northeast 78th St #104, Vancouver, WA 98665PHONE: (888) 246-4466 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

COLORADOPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

CONNECTICUTPIA of Connecticut, P.O. Box 997, Glenmont, NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.pia.org

DELAWAREPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

FLORIDAPIA of Florida, Inc., 1390 Timberlane Road, Tallahassee, FL 32312-1766PHONE: (850) 893-8245 • (800) 277-1171 FL only • FAX: (850) 893-8316e-mail: piafl@piafl.org • Web Site: www.piafl.org

GEORGIAThe PIA of Georgia, Inc., 3805 Crestwood Pkwy NW #140, Duluth, GA 30096PHONE: (770) 921-7585 • FAX: (770) 921-7590e-mail: jerry@piaga.com • Web Site: www.piaga.com

HAWAIIPIA of Hawaii, 1247 Kelewina St. Kailua, HI 96734PHONE: (808) 261-9460 • FAX: (808) 262-5355e-mail: piahi@hawaiiantel.net • Web Site: www.piahawaii.com

ILLINOISPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

INDIANAPIA of Indiana, 50 E. 91 Street Ste. 207 Indianapolis, IN 46240PHONE: (317) 899-9200 • FAX: (317) 493-0408e-mail: info@piaindiana.com • Web Site: www.indianapia.com

KANSASKansas Association of Professional Insurance Agents216 SW 7th Ave, Topeka, KS 66603PHONE: (785) 232-4143 • FAX: (785) 232-0272e-mail: pia@pia.kscoxmail.com • Web Site: www.kansaspia.org

KENTUCKYPIA of Kentucky, P.O. Box 4205, Frankfort, KY 40604-4205PHONE: (502) 875-3888 • FAX: (502) 227-0839e-mail: clemay@piaky.org • Web Site: www.piaky.org

LOUISIANAPIA of Louisiana Inc., 8064 Summa Avenue, Suite C, Baton Rouge, LA 70809PHONE: (225) 766-7770 • (800) 349-3434 LA only • FAX: (225) 766-1601e-mail: jody@piaoflouisiana.com • Web Site: www.piaoflouisiana.com

MAINEMaine Insurance Agents Association, 17 Carriage Lane Hallowell, ME 04347PHONE: (207) 623-1875 • FAX: (207) 626-0275e-mail: lisa@maineagents.net • Web Site: www.maineagents.com

MARYLANDInsurance Agents & Brokers of Maryland P.O. Box 2023, Mechanicsburg, PA 17055-0763PHONE: (717) 795-9100 • FAX: (717) 795-8347e-mail: iab@iabgroup.com • Web Site: www.iabgroup.com

MASSACHUSETTSPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

MICHIGANMichigan PIA, P.O. Box 99579 Troy, Michigan, 48099PHONE: (616) 454-4461 • FAX: (616) 454-4491e-mail: inquiry@mipia.com • Web Site: www.mipia.com

MINNESOTAPIA of Minnesota, 8646 Eagle Creek Circle, Suite 202, Savage, MN 55378PHONE: (866) 694-7070 • FAX: (866) 749-8678e-mail: PIAofMN@gmail.com • Web Site: www.piamn.com

MISSISSIPPIPIA Association of Mississippi, 4744 I-55 North, Jackson, MS 39211PHONE: (601) 984-8855 • FAX: (601) 984-9008 • (800) 898-0136 MS onlye-mail: PIAofMS3@aol.com • Web Site: www.piams.com

MISSOURIMissouri Association of Insurance AgentsP.O. Box 1785, Jefferson City, MO 65102-1785PHONE: 573-893-4301 • FAX: 573-893-3708e-mail: lcase@moagent.org • Web Site: www.missouriagent.org

MONTANAPIA of Montana, 3205 NE 78th St Ste 104, Vancouver, WA 98665-0697PHONE: (888) 246-4466 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

NEBRASKA/IOWAPIA of Nebraska/Iowa, 920 South 107th Avenue, Suite 305, Omaha, NE 68114PHONE: (402) 392-1611 • FAX: (402) 392-2228e-mail: cathy@pianeia.com • Web Site: www.pianeia.com

affilia

tesNEW HAMPSHIRE

PIA of New Hampshire, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.pia.org

NEW JERSEYPIA New Jersey, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.pia.org

NEW YORKPIA New York, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.pia.org

NORTH CAROLINAPIANC, PO Box 1387 Davidson, NC 28036PHONE: (877) 401-6822 • (877) 98PIANCe-mail: jim.kennedy@piaofnc.com • Web Site: www.piaofnc.com

NORTH DAKOTAPIA of North Dakota1211 Memorial Hwy Holiday Park Office #6, Bismarck, ND 58504-5213PHONE: (701) 223-5025 • (800) 733-1050 ND&MN onlyFAX: (701) 223-9456 • e-mail: info@piand.com • Web Site: www.piand.com

OHIOPIA of Ohio, Inc., 600 Cross Pointe Road, Gahanna, OH 43230PHONE: (614) 552-8000 • (800) 555-1742 • FAX: (614) 552-0115e-mail: piaa@piaaohio.com • Web Site: www.piaaohio.com

OKLAHOMAPIA of Oklahoma, P.O. Box 12921, Oklahoma City, OK 73157PHONE: (405) 942-1119 • FAX: (405) 943-4380e-mail: claudia.montgomery@att.net • Web Site: www.piaok.com

OREGON/IDAHOPIA of Oregon/Idaho, 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (503) 287-7570 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

PENNSYLVANIAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

PUERTO RICO & CARIBBEANPIA of Puerto Rico and the Caribbean IncPO Box 192389, San Juan, PR 00919-2389PHONE: (787) 792-7849 • FAX: (787) 792-4745e-mail: marcos@piaofpr.com • Web Site: www.piaofpr.com

RHODE ISLANDPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

SOUTH CAROLINAPIA of South Carolina, PO Box 21367, Columbia, SC 29221-1367PHONE: (803) 772-0557 • (888) 742-6372 • FAX: (803) 772-0846e-mail: PIASC@piasc.net • Web Site: www.piasc.net

SOUTH DAKOTAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

TENNESSEEPIA of Tennessee Inc, 504 Autumn Springs Court Suite A-2, Franklin, TN 37067PHONE: (615) 771-1177 • FAX: (615) 771-3456e-mail: piatn@piatn.com • Web Site: www.piatn.com

TEXASTexas Insurance Professionals 3632 Frankford Rd, #200B, Dallas, TX 75287PHONE: (972) 862-3333 • FAX: (972) 307-7888e-mail: pia@piatx.org • Web Site: www.piatx.org

UTAHUtah Association of Independent Insurance Agents4885 S. 900 E., Suite 302, Salt Lake City, UT 84117PHONE: (801) 269-1200 • FAX: (801) 269-1265e-mail: cheryllyman@uaiia.org • Web Site: www.uaiia.org

VERMONTVermont Insurance Agents Association, P.O. Box 1387, Montpelier, VT 05601PHONE: (802) 229-5884 • FAX: (802) 223-0868e-mail: meversole@viaa.org • Web Site: www.viaa.org

VIRGINIA/DCPIA Assn of Virginia & DC, 8751 Park Central Dr., Ste 140, Richmond, VA 23227PHONE: (804) 264-2582 • FAX: (804) 266-1075e-mail: dennis@piavadc.com • Web Site: www.piavadc.com

WASHINGTON/ALASKAPIA of WA/AK, 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (360) 571-7100 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

WEST VIRGINIAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

WISCONSINPIA of Wisconsin, Inc., 6401 Odana Road, Madison, WI 53719-1126PHONE: (608) 274-8188 • (800) 261-7429 • FAX: (608) 274-8195e-mail: rvonhaden@piaw.org • Web Site: www.piaw.org

WYOMINGAssoc. of Wyoming Ins. Agents, PO Box 799, Sundance, WY 82729-0799PHONE: (307) 283-2052 • FAX: (775) 796-3122e-mail: awia@vcn.com • Web Site: www.awia.com

2014 PIA National Pinnacle Partners

Encompass Insurance Erie Insurance

Harleysville Insurance Progressive Insurance

State Auto Group The Hartford

The Motorists Insurance Group

Wright Flood

P INNAC L E PARTNER

mitigate the damage of the financial cri-sis, contributed to stabilizing the financial markets and protected policyholders.

It was the behavior of big banks and large securities firms that precipitated the financial crisis. Insurers and the insurance industry played no role in doing so.

Some observers incorrectly identify the American International Group (AIG) as an insurance company that got in trouble and needed a federal bailout. In fact, AIG is a globally-interconnected financial ser-vices firm. One of its securities trading operations in London engaged in alleged imprudent activities, aided by a lack of oversight, resulting in massive losses. But the insurance operations of AIG remained sound and policyholders were protected, thanks to stringent state-based insurance regulation.

Productive discussions about the future of the insurance industry need to begin with the facts, not a rewriting of recent history to support positions some partici-pants may have already staked out.

McRaith, Royce Discuss Insurance RegulationContinued from page 13

affilia

tes

May 2014 19www.pianet.com

Learn more about these PIA member benefits at www.pianet.com.

Learn more about these PIA National member benefits at www.pianet.com.

Business-Building Tools

✦ PIA Branding Program. Promote your agency with our print and radio ads, available in English and Spanish. www.piabrandingprogram.com

✦ Hartford Flood Insurance. PIA’s endorsed flood provider since 2004. Dedicated local sales directors and book transfer/rollover team plus great commissions for PIA members. Call (860) 547-5006.

✦ Floodbroker.com. Sell more flood insurance with a flood quoting Web portal. A PIA member exclusive!

✦ PIA Agency Marketing Guide. Hands-on marketing tips from industry experts. Published annually.

✦ Rough Notes Producer Online. Identifies risk exposures. Provides detailed coverage analysis. PIA member price $500 annually (reg. $1,695). Call 800-428-4384. Use your PIA member ID# above name on mailing label.

✦ DocIT from Drivers History. DocIT's online database of driver violation data helps agents align applicants with the right carrier so they order fewer MVRs.

✦ Enhance Insurance by Agoragate. Increase your visibility online when people search for insurance.

✦ Agency Revenue Tools. Boost personal lines sales by engaging in employee worksite marketing using your appointed markets at regular commission rates.

✦ Agency websites from Emerald. Cutting-edge websites tailored specifically to insurance agents.

✦ PIA logo. Put the PIA logo on your business card, website, stationery and signage. Order items with the PIA logo in our online store.

✦ Consumer brochures. Answer your customers’ questions with PIA’s attractive brochures.

Insurance Products

✦ E&O insurance. E&O coverage from PIAPRO (the PIA Professional Liability Insurance Company) and additional admitted and non-admitted markets with differing appetites. www.pianet.com/eando

✦ PIA agents umbrella program. Excess insurance protection includes E&O and business liability coverage, with available endorsements for EPL and personal coverage.

✦ Individual and group insurance products. Basic, voluntary and dependent term life; long/short term disability; AD&D; business overhead expense; and hospital income protection. www.piatrust.com

Tools From The PIA Partnership, PIA’s Company Council

✦ Closing the Gap — Growth & Profit. Use Partnership calculators to plan for new business growth and profitability. Includes three proven, turnkey approaches for improving retention, sales and account-rounding.

✦ Agency Touch Points — The Voice of the Customer. Capitalize on Partnership research to give personal lines customers what they really want.

✦ Reaching Gen Y. Understand and reach Gen Y age group insurance consumers so you can convert them into loyal agency customers.

✦ Perpetuation Central. PIA’s interactive tool to guide you through the many phases of your agency’s lifecycle.

✦ Practical Guide to Successful Planning. Plan for success within your own agency while coordinating with your carriers.

Agency Management Tools

✦ Agency Agreement Review Service. Free to members and carriers, PIA recommends changes to carriers and highlights concerns for members.

✦ Agency Preparedness and Recovery Plan. The PIA guide to creating an agency-specific business contingency plan.

✦ Employee profiling. Hire the right people with OMNIA.

✦ Prescription discounts. Save money on prescriptions not covered by insurance. Available to PIA members and their clients.

✦ Discounts on producer licensing, car rentals, shipping with UPS, and calendars from Mines Press.

✦ Free subscriptions to industry publications.

Legislative & Regulatory Outreach

✦ Grassroots alerts. Send pre-written, fully-editable letters directly to your elected officials. www.piagrassroots.com

✦ PIA Federal Legislative Summit. Every spring, PIA members visit Capitol Hill to meet with their elected representatives. www.piafls.com

✦ District Lobbying Day…Capitol Hill in Your Backyard. Every August, PIA members meet with Members of Congress in their district offices. www.piadld.com

✦ PIA Political Action Committee (PIAPAC). PIAPAC contributes to the campaigns of candidates to federal office who share our pro-insurance, pro-business perspective and who support our issues. www.piapac.com

Your Member Benefits From PIA National

PRSRT STANDARD

U.S POSTAGE

PAID

PERMIT #593

MERRIFIELD, VA

400 N. Washington StreetAlexandria, VA 22314

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans

INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND

As a PIA Member* serving

Main Street America, you and

your employees have access

to a variety of high-quality,

competitively priced

insurance plans.

Plans available include:

Short & Long Term Disability Business Overhead Expense Accidental Death & Dismemberment

Basic Term Life** Voluntary Term Life Dependent Term Life Hospital Indemnity

PIA SERVICES GROUPINSURANCE FUND

For additional information, contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759.

Information also available on-line at www.piatrust.com.*PIA National membership, when required, must be current at all times.

**Only available if 100% employer paid and if the employer and 100% of the employees enroll. No medical underwriting necessary up to guaranteed issue limits.

Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable. All coverages underwritten by Unimerica Insurance Company, Association Administrative

Address, P.O. Box 17828, Portland, ME 04112-8828. Insurance Program Administered by Lockton Risk Services.

We’ve got you covered

Sometimes,it’s what’s underneath that counts

®

Experienced AgentsPIA agents have been providingagents’ umbrella coveragelonger than anyone else.We can craft a policy — or a combination of policies — tocover you, while leaving yourwallet in one piece.

E&O OptionsPIA has access to numerous E&Oprograms, so we can offer you a choice ofunderlying E&O coverage. Combine thiswith our agents’ umbrella’s excess E&Ocoverage, and you can get more coverage— and more value — for your money.

The PIA/Penn National Insurance agents’umbrella offers:■ Excess limits on a following-form

basis for E&O■ Business operations: Auto, Liability■ Optional personal umbrella coverage■ Optional EPL

For details, contact your local PIA affiliate or PIA National at 800.742.6900 x 382or visit the PIA Main Street Store at www.PIANET.com

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