PIA Connection--February 2019

PIA Member Benefit Spotlight: The Omnia Profile

page 19 FEBRUARY 2019

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

INSURANCE AGENCY EXIT AND SUCCESSION page 12

PIA MEMBERS: PIA CYBER INSURANCE NOW AVAILABLE TO SELL

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FEBRUARY 2019

PIA CONNECTION

EXTREME WEATHER COST 247 LIVES, $91 BILLION IN 2018 page 8

NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS PRESIDENT Keith A. Savino, CPIA (NJ) keiths@warwickresource.com PRESIDENT-ELECT Dennis D. Kuhnke, CIC, CPIA (WI) dkuhnke@robertsonryan.com VICE PRESIDENT/TREASURER Wayne F. White, CPA, CPIA, PFMM (AR) wwhite1948@aol.com SECRETARY/ASSISTANT TREASURER Anthony Curti, CIC, LIC (MI) tcurti@acrisure.com IMMEDIATE PAST PRESIDENT Timothy G. Russell, CPCU (CT) trussell@therussellagency.com EXECUTIVE VICE PRESIDENT/CEO Mike Becker (PIA National) mikebe@pianet.org PUBLISHER/EDITOR-IN-CHIEF Ted Besesparis | tedbe@pianet.org MANAGING EDITOR Sade Hale | sadeha@pianet.org ADVERTISING DIRECTOR Alexi Papandon, CAE | alexipa@pianet.org GOVERNMENT AFFAIRS EDITOR Jon Gentile | jonge@pianet.org REGULATORY AFFAIRS EDITOR Lauren Pachman, Esq. | laurenpa@pianet.org MARKETING EDITOR Dana A. Anaman, CAE | danaan@pianet.org CONTRIBUTING EDITOR Patricia A. Borowski, CPIW PRODUCTION EDITOR Laurel Prucha Moran | laurelpm@blueroomstudio.com PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

419 North Lee Street Alexandria, Virginia 22314 ©2019 All rights reserved.

The information in this publication is general 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 situation. Users are encouraged to consult with competent legal, financial, insurance, 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 Connection at the member subscription rate of $12.00 per year.

Non-member subscriptions available at $24.00 per year ppd.

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For additional information on any of the subjects addressed in this publication, please access the PIA National website at www.pianet.com.

CONTENTS NEWS BRIEF

Seitz Promoted to FIO Director…States Ban Gender as Auto Factor…NY: Insurers Can Use Social Media for Underwriting…

Repeal of “Cadillac Tax” Reintroduced… Missouri DOI Offers Insurance Scholarships…Uptake of Private Flood Remains Low…

6-7

NEW U.S. HOUSE FSC LINEUP AND AGENT ISSUES

9

PIA National VP of Government Relations Jon Gentile looks at how the new dynamic on the House Financial Services Committee (FSC) might affect PIA’s issues.

FINAL RULE ON PRIVATE FLOOD INSURANCE NEARS Long-awaited new federal rule on private flood insurance nears completion; PIA National counsel and Director of Regulatory Affairs Lauren G. Pachman, Esq. has an analysis.

COVER STORY: INSURANCE AGENCY EXIT AND SUCCESSION

11

12-13

PIA National Past President Andrew C. Harris and former PIA board member Robert Klinger were among industry leaders who shared their thoughts on the subject of agency succession planning in a recent cover story in National Underwriter Property & Casualty. Here is an edited version of their observations.

PIA CYBER INSURANCE NOW AVAILABLE TO SELL BY INDEPENDENT AGENTS

14-15

AGENCY MARKETING: HOW TO GET YOUR CUSTOMER EVANGELISTS TO SELL FOR YOU

16-17

Now PIA members can sell the same great PIA cyber insurance coverage that many have already purchased for their own agencies.

Rather than spending your hard-earned money on marketing or advertising, wouldn’t it be great if you could get your customers to sell for you? Well, you can …

DEPARTMENTS From the President . . . . . . . . . . . . . . . . 5 From the CEO . . . . . . . . . . . . . . . . . . . 5 PIA Member Benefit Spotlight . . . . . . . . . . 19 PIA Marketplace . . . . . . . . . . . . . . . . . 19 PIA Member Benefits . . . . . . . . . . . . . . . 21 PIA Affiliate Listings . . . . . . . . . . . . . . . 22 Cover image: ©nortonrsx/iStockphoto

February 2019 | 3

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FROM THE PRESIDENT ASK THE AVERAGE CITIZEN WHAT THEY THINK

of lobbyists and chances are you’ll hear a string of negative stereotypes. But those of us who volunteer and pay dues to be members of associations that advocate for us on Capitol Hill, in state legislatures, and with regulators know that while such stereotypes are rarely true, the misperceptions often persist.

What the general public may not realize is that lobbying is a necessary profession.

Aside from the handful of members of Congress who have had experience as independent insurance agents, most lawmakers are not familiar with our issues. They turn to us, their constituents and the professionals we employ, for the expertise they need to craft good legislation and avoid bad outcomes. That’s the advocacy by our Government Relations staff that produces positive results for PIA members and independent agents generally.

Developing legislation is difficult work. Before a bill is even conceived, an issue needs to be identified and defined. Members of Congress and other legislators must be made aware of the need for legislation. Groups such as PIA advance their own ideas for legislation or express their views on existing proposals. Association members

engage in grassroots advocacy.

Part of that process is the ongoing contact and relationships that our professional lobbyists have and develop with lawmakers, to educate them about our issues and ultimately win them over to our point of view.

Key to this process is engaging with congressional staffers, with suggestions as they draft actual legislation.

Another reality of lobbying is that it is essential to stop harmful bills from becoming law.

Do PAC contributions play a role in the process? Of course. They help build relationships, but are only one piece of advocacy work. The truth is that the size of a PAC is far less important than the way an association advocates for its members’ interests. PIA always stands by agents and we know that real success is measured by legislative results.

Keith A. Savino President

FROM THE CEO THE INITIAL RESULTS ARE STARTING TO COME

in from the 2019 National Underwriter/PIA Independent Agent Study.

This is the third year in a row that PIA has participated in the survey with our strategic partner the National Underwriter, in the survey conducted by renowned intelligence firm Flaspöhler, part of NMG Consulting.

More than half of the agents participating in the 2019 survey reported that their commissions increased, and more than one quarter said they remained the same. In addition, more than half who had a decrease said it was relatively modest, between 1% and 5%.

This indicates ongoing stability in agent compensation in the current market conditions.

When asked to rate their overall level of satisfaction with the P&C carriers they use for commercial lines, agents responding “very satisfied” (36.5%) or “somewhat satisfied” (50.6%) were more than threequarters of those responding.

This indicates that the overall agent-carrier relationship remains positive and stable, though we believe specific aspects of the relationship can be improved, such as digital capabilities. Overall, the survey results show a continuing high level of satisfaction with carrier relationships and stability in commission compensation, with more than

PIA CONNECTION | www.pianet.com

half of agents responding reporting an increase to some degree in their compensation.

That’s not to say that everything is perfect. Part of the study consisted of an open-ended question, “In your opinion, what are the top three challenges facing competitors in your industry over the next 3-5 years?”

Concerns cited by some respondents included the size of independent agents’ firms and the resulting effect on the ability to compete; challenges to their books of business by wholesalers; premium volume requirements; increased competition from some carriers going direct to clients; and some carriers using outdated technology.

Results from this year’s study are currently online at PC360.com, featured in the March 2019 issue of National Underwriter and will be the subject of further analysis in PIA Connection.

Mike Becker Executive Vice President & CEO

February 2019 | 5

!

NEWS BRIEF PIA CONNEC NATIONAL ASS

Seitz is the third director of the office, which was created by the Dodd-Frank Act and was up and running in 2011.

He follows in the footsteps of Michael McRaith, who hired him as deputy, and most recently, Steven Dreyer, who served as director from June to November 2018.

TION

INSURANCE

AGENTS

LET’S AX TH E “CADILLAC TA

analysis to include data from technologies that monitor driver behavior on the road and increasing penalties for drivers who engage in distracted driving or other dangerous behaviors.

ACA

REPEAL OF “CADILLAC TAX” REINTRODUCED

as a means of disman-

A bill to repeal the 40

system of healthcare,

tling the employer-based

percent excise tax on so-

in favor of government-

PIA National is actively advocating for the repeal of the FIO because its existence is a threat to the successful state insurance regulatory system. In fact, PIA National was the first national association to call for the office to be repealed and has since been joined by others. PIA National has also developed legislation to fully repeal the office.

called “overly generous”

sponsored insurance pro-

employer-sponsored

grams—like the Afford-

health coverage, known

able Care Act (ACA). PIA

as the “Cadillac Tax,” has

National opposes the tax

been reintroduced in the

because it will severely

U.S. House. On January

damage the employer-

24, Reps. Joe Courtney

sponsored health system

While PIA National will continue to advocate to repeal the FIO, we will also engage with Director Seitz to ensure independent agents have a voice in its work.

(D-CT), Mike Kelly (R-PA),

and consumers. This bill

Suzan DelBene (D-WA),

will be one of PIA’s top

and Elise Stefanik (R-NY)

priorities at the 2019 PIA

reintroduced the biparti-

Federal Legislative Sum-

than by whom, which could lower rates for young male drivers, who are statistically riskier to insure, and increase rates for young female drivers, who are statistically less risky.

san Middle Class Health

mit April 2-4 in Washing-

Benefits Repeal Act of

ton, D.C.

The difference could be as much as $500 if insurers split the difference between what male teenagers and their female counterparts pay now, says Penny Gusner, a consumer analyst. A new report on auto insurance trends by the Zebra.com,

STATES BAN GENDER AS AUTO FACTOR California has become the seventh state to ban auto insurers from using gender as a factor to calculate the rates customers pay. Regulators across the country continue to push insurers to adopt formulas that have more to do with how a car is driven

THE DIFFERENCE COULD BE AS MUCH AS $500 6 | February 2019

X”

page 8

imation.com

The promotion was effective this past week. The FIO director reports to the Assistant Secretary for Financial Institutions, which is led by Acting Assistant Secretary Kipp Kranbuhl.

modifying their risk

PROFESSIONAL

www.pointmadean

Steven Seitz has assumed the role of director of the Federal Insurance Office at the Treasury Department, after months of serving as acting director, according to sources.

OCIATION OF

© David Klein,

SEITZ PROMOTED TO FIO DIRECTOR

finds that insurers are

MAY 2015

2019 (H.R. 748).

from ever being imple-

NY: INSURERS CAN USE SOCIAL MEDIA FOR UNDERWRITING

mented, successfully

The New York Depart-

advocating to delay it

ment of Financial Services

from taking effect twice.

(DFS) is going to allow life

Even though the tax will

insurers to use data from

not take effect until 2022,

social media and other

its very existence contin-

non-traditional sources to

ues to create instability in

set premium rates, if they

the health insurance mar-

can prove the information

ket while putting consum-

does not unfairly dis-

ers’ health care at risk.

criminate against certain

Critics of the Cadillac tax

customers.

believe it was put into the

New York is the first state

PIA National has long sought to prevent this tax

www.pianet.com | PIA CONNECTION

!

NEWS BRIEF MISSOURI DOI OFFERS INSURANCE SCHOLARSHIPS

Photo by ©fstop123, iStockphoto

The Missouri Department of Insurance reminds high school seniors and college students, who are Missouri residents, to apply for Missouri Insurance Education Foundation (MIEF) scholarships. More than $20,000 in scholarships is being offered. The deadline is March 31, 2019. “The MIEF scholarships are a great opportunity for Missouri students who are interested in an insurance related profession to get assistance with their education expenses,” Missouri Insurance Director Chlora Lindley-Myers said. “Missouri has a very healthy insurance market and offers students some great career choices.”

to set specific guidance governing how life insurers use statistical and actuarial analysis to determine that any algorithms and data are free of bias against racial minorities and other groups protected by law. “Because this is a rapidly evolving area in insurance underwriting, it was important for the department to create general principles now,” said DFS Superintendent Maria Vullo.

The DFS says insurers should not use an external data source,

algorithm, or predictive model in underwriting or rating unless the insurer can establish that the underwriting or rating guidelines are not unfairly discriminatory.

Even if statistical data supports an underwriting or rating guideline, there must still be a valid rationale or explanation supporting the differential treatment of similarly situated applicants.

The new guidance applies to companies operating in New York, but industry consultants say it could

have an impact beyond the state’s borders.

UPTAKE OF PRIVATE FLOOD REMAINS LOW The uptake of private flood insurance in the United States continues to be low due to such factors as lack of risk models, low consumer demand, high private premiums, and the availability of relatively inexpensive governmentsponsored insurance.

During Hurricanes Harvey and Sandy, less than 20 percent of the houses

that were flooded had flood insurance, highlighting the protection gap for the flood peril, says Risk Management Solutions’ (RMS’) Robert Muir-Wood.

The National Association of Insurance Commissioners (NAIC) has found that half of U.S. flood losses occur outside the designated high-risk areas, and a Lloyd’s of London report found only 1 percent of properties outside of the defined flood zones have flood insurance.

Frank and Ernest is used with the permission for the Thaves and the Cartoonist Group. All rights reserved.

PIA CONNECTION | www.pianet.com

February 2019 | 7

A REPORT ISSUED FEB. 6 BY

2018 IN CONTEXT… In 2018, there were 14 weather and climate disaster events with losses exceeding $1 billion each across the United States.

These events included 1 drought event, 8 severe storm events, 2 tropical cyclone events, 1 wildfire event, and 2 winter storm events. Overall, these events resulted in the deaths of 247 people and had significant economic effects on the areas impacted.

The 1980–2018 annual average is 6.2 events (CPI-adjusted); the annual average for the most recent 5 years (2014–2018) is 12.6 events (CPI-adjusted).

In performing these disaster cost

assessments these statistics were taken from a wide variety of sources and represent the estimated total costs of these events—that is, the costs in terms of dollars that would not have been incurred had the event not taken place. Insured and uninsured losses are included in damage estimates. Sources include the National Weather Service, the Federal Emergency Management Agency, U.S. Department of Agriculture, National Interagency Fire Center, U.S. Army Corps, individual state emergency management agencies, state and regional climate centers, media reports, and insurance industry estimates.

This analysis is conducted by The National Centers for Environmental Information (NCEI), the nation’s scorekeeper in terms of addressing severe weather and climate events in their historical perspective. NECI is a unit of the National Oceanic and Atmospheric Administration (NOAA).

Graphic https://www.ncdc.noaa.gov/billions/

the National Oceanic and Atmospheric Administration (NOAA) found that during 2018, 14 separate weather and climate disasters costing at least $1 billion each hit the United States. These billion-dollar disasters killed at least 247 people and cost the nation an estimated $91 billion. About $73 billion was attributed to hurricanes Michael and Florence and numerous wildfires across the West. However, the record for natural disasters was set in 2017, when hurricanes Harvey, Irma, and Maria combined with Western wildfires and other natural catastrophes caused $306 billion in total damage.

NOAA data show that since 1980, the United States has experienced 241 weather and climate disasters where the overall damage reached or exceeded $1 billion, when adjusted for inflation. Between 1980 and 2013, the nation saw about six

such disasters per year, but that number has surged to more than 12 over the most recent five years. Meanwhile, the National Aeronautics and Space Administration and NOAA released data that officially made 2018 the fourth-warmest year since 1880.

8 | February 2019

www.pianet.com | PIA CONNECTION

Photos ©iStockphoto

EXTREME WEATHER COST 247 LIVES, $91 BILLION IN 2018

CAPITOL HILL REPORT

By Jon Gentile Vice President, Government Relations PIA National

NEW U.S. HOUSE FSC LINEUP AND AGENT ISSUES

https://waters.house.gov

THE NEW CONGRESS THAT BEGAN JANUARY 3RD

brought with it not just a turnover in power in the U.S. House of Representatives, but also a wave of new members to the House Financial Services Committee (FSC), including a new chairwoman and top Republican. The new chairwoman of the committee is Rep. Maxine Waters (D-CA). The new ranking member is Rep. Patrick McHenry (R-NC).

The shift in the power dynamic could pose a challenge on several pending issues over which the FSC has jurisdiction, including the Federal Insurance Office (FIO), the reauthorization of the National Flood Insurance Program, data security legislation, the reauthorization of the terrorism risk insurance program, and international insurance and regulatory issues. All legislation addressing Representative Maxine these vital issues typically goes through Waters (D-CA) the FSC before becoming law.

https://mchenry.house.gov

BALANCE OF POWER The influx of new members on the Democratic side of the committee in particular poses a big test for Chairwoman Waters, and a potential challenge for independent insurance agents. Some of the new members appointed to the committee are among Representative Patrick the most progressive in the Democratic McHenry (R-NC) caucus, including avowed Democratic Socialist Alexandria Ocasio-Cortez (D-NY). At the same time, the pro-business New Democrat Coalition has expanded its representation on the committee to 16 members out of a total of 37 Democrats.

Balancing the competing ideologies of her committee members may be one of the most challenging aspects of Chairwoman Waters’ new role. If these newcomers demonstrate an ability to influence the Chairwoman, that influence could have a substantial impact on the policy goals of bills that are considered by the committee. If the progressive wing prevails, the legislation that emerges may be pleasing to that wing’s most ardent followers, but will have little to no chance to pass in the Republican-held Senate.

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Chairwoman Waters previously served as the top Democrat on the committee last Congress when the Democrats were in the House minority. The top Republican, or ranking member, is Rep. Patrick McHenry (R-NC), who served as the Chief Deputy Whip during the 115th Congress (2017-19). Rep. McHenry fills a vacancy created by the retirement of Rep. Jeb Hensarling (R-TX), who served as the committee’s chairman during the 115th Congress.

Rep. William Lacy Clay, (D-MO), will chair the Subcommittee on Housing, Community Development and Insurance. The top Republican on the subcommittee will continue to be Rep. Sean Duffy (R-WI).

IMPACT ON FLOOD INSURANCE When she was Ranking Member of the committee (from 2013 to 2019), Rep. Waters played a large role in the development of insurance legislation, particularly on flood insurance.

Rep. Waters, along with former congresswoman Judy Biggert (R-IL), was the sponsor of the 2012 NFIP reauthorization legislation, the Biggert-Waters Flood Insurance Reform Act (PL 112-141) (Biggert-Waters). The reform provisions in Biggert-Waters were meant to put the NFIP on a financially stable track by phasing out subsidies in favor of risk-based rates to make the program actuarially sound, while providing the necessary coverage for policyholders.

However, after a public outcry over the dramatic premium rate hikes that were included in Biggert-Waters, less than two years later, Rep. Waters led efforts to pass the Homeowner Flood Insurance Affordability Act (H.R. 3370) (HFIAA) in March 2014. It did away with many of the reforms in Biggert-Waters; most notably, it slowed down the rate increases that were meant to move the program toward actuarial sound rates and introduced additional surcharges on NFIP policies.

With the NFIP currently set to expire May 31, 2019, Rep. Waters as the new Chairwoman of the committee will now be the key figure in the House in determining what the NFIP will look like in the years to come.

Keeping the new dynamics on this vital House committee in mind, PIA National has been actively meeting with both its new and returning members to continue educating them and encouraging them to see things from our point of view.

Jon Gentile is vice president of government relations of the National Association of Professional Insurance Agents (PIA).

February 2019 | 9

SIMPLE. LICENSING. DONE. nipr.com

PIA Brings

to Capitol Hill PIA Federal Legislative Summit April 2 - 3, 2019 | Washington, DC www.PIAFLS.com

10 | February 2019

www.pianet.com | PIA CONNECTION

PIA LEGAL ANALYSIS

By Lauren G. Pachman, Esq.

FINAL RULE ON PRIVATE FLOOD INSURANCE NEARS PRIVATE FLOOD INSURANCE NOW ACCOUNTS

for less than five percent of the residential market. Most private flood policies cover commercial properties or residential properties that need policies with coverage above the $250,000 limit on National Flood Insurance Program (NFIP) policies.

The NFIP was created in 1968 to provide the opportunity for property owners in the U.S. to purchase flood insurance coverage for their homes. The program was created because the private insurance market viewed flooding as an uninsurable risk and was either not providing insurance coverage at all or was providing it at cost-prohibitive rates. This situation remains largely unchanged in 2019.

As a result, the NFIP has long been virtually the only means by which people can protect their financial interests against the risks posed by floods; it has also been the only alternative for property owners who borrow money from lenders that require flood insurance to grant a mortgage.

The NFIP has been the subject of various reform efforts over the last several years. Since the passage of the Biggert-Waters Act of 2012 (Biggert-Waters), efforts have been made to encourage the development of a private flood insurance market.

A provision in Biggert-Waters, which reauthorized and reformed the NFIP, required the development of a rule that would permit insurance companies who participate in the NFIP’s Write-Your-Own (WYO) program to also sell private-market flood insurance. The five federal agencies with oversight over mortgage lenders (Treasury, FDIC, Federal Reserve, the Farm Credit Administration, and the National Credit Union Association [NCUA]) jointly issued a longawaited final rule on this issue. Now that the rule has been approved by all the relevant agencies, it will become effective on July 1, 2019.

FINAL RULE DEVELOPED PIA National has actively urged Congress and the federal agencies involved to comprehensively address the private flood issue.

The final rule requires lenders to accept certain private flood insurance policies that meet the regulatory definition. It allows lenders to rely on a “self-certification” by the insurer that the policy meets the definition and allows lenders to use their discretion to accept private flood insurance that doesn’t meet the statutory definition, as long as the policy provides sufficient protection to the loan in accordance with the lenders’ general safety and soundness requirements.

On surplus lines: The intent of the regulation is to accept surplus lines policies. The regulation confirms that policies issued by surplus lines insurers are already covered in the Biggert-Waters definition of “private flood insurance.” Effectively, the regulation adopted the existing section of the definition of “private flood insurance” with only non-substantive changes.

On discretionary acceptance: Lenders are required to accept

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private flood policies that look exactly like NFIP policies (same deductibles for similar insurance amounts), etc. Lenders can accept other policies at their discretion; discretionary acceptance requires that a private flood policy provides enough protection of the designated loan, and the FDIC-supervised institution provides, in writing, its conclusion regarding the sufficiency of the protection of the loan.

CONTINUOUS COVERAGE QUESTION While this rule answers some questions about flood insurance policies issued by private insurers, it does not answer all of them— most significantly, the issue of continuous coverage.

Consumers would benefit from permission to obtain continuous coverage so that they aren’t left in an untenable financial position if, for example, their private flood insurance policy is cancelled for reasons outside their control. Continuous coverage would allow a former NFIP consumer who purchased a private flood policy to return to the NFIP at the same premium rate they were paying before they left.

Without continuous coverage, consumers with grandfathered NFIP policies are effectively penalized with higher rates for attempting to purchase an NFIP policy after leaving it for the private market.

The uptake of private flood insurance in the United States continues to be low. Less than 20 percent of the houses that were flooded during Hurricanes Harvey and Sandy had flood insurance, according to Risk Management Solutions (RMS). The National Association of Insurance Commissioners (NAIC) has found that half the flood losses in the U.S. occur outside the designated high-risk areas, and a Lloyd’s of London report found only one percent of properties outside of the defined flood zones are covered.

NFIP RENEWAL IS CRITICAL PIA National supports a long-term reauthorization of the NFIP that promotes the growth of the private flood insurance market, protects the interests of independent agents, and protects consumers. In addition, this should include a gradual movement to risk-based rates; the continuation of grandfathering of rates; the forgiveness of the program’s debt; and the cultivation of growth in the private flood insurance market.

PIA National views the final rule on private flood insurance as a good next step toward expanding consumer options. However, our support for measures to encourage the development of a viable private flood insurance market does not diminish PIA National’s strong support for a long-term reauthorization of the NFIP. The private flood market is still immature, and it presently lacks the capacity and availability to fully supplant the NFIP. PIA National urges Congress to pass a long-term NFIP renewal this year.

Lauren G. Pachman, Esq. is Counsel and Director of Regulatory Affairs of PIA National.

February 2019 | 11

PIA National Past President Andrew C. Harris and former PIA board member Robert Klinger were among industry leaders who shared their thoughts on the subject of agency succession planning in a recent cover story in National Underwriter Property & Casualty. Here is an edited version of their observations.

INSURANCE AGENCY EXIT AND SUCCESSION Photo by ©nortonrsx, iStockphoto

By Rosalie L. Donlon

HARRIS, CEO OF LIBERTY

Insurance Associates in Millstone Township, N.J., started succession planning when his son expressed an interest in being in the insurance industry. Harris gave his son an online career aptitude test as a gift to see what industry he might have an affinity for. It turned out that his son (also named Andrew) had a strong correlation for insurance and business. Harris Jr. worked at another insurance company for 10 years, and when it was sold he joined his father’s agency, where he’s been ever since, learning the ropes.

Harris informed his staff from the time he brought his son into the agency. “My son is my perpetuation plan,” he told them.

Klinger, president and CEO of the

Klinger Insurance Group in Germantown, Maryland, believes that agents need to start planning from day one, saying “Begin with the end in mind.” He advises agency principals to consider succession and exit strategy as part of their annual business plan, noting that insurance agents need to do a better job of their own risk management. He recommends having a road map that is a working document subject to modification annually.

SEEK ADVISORS It’s important to get advice from trusted professionals, whether you’re a sole proprietor or a larger organization. You need a good accountant, a tax specialist (who may also be your accountant), an attorney

experienced in succession planning for independent insurance agencies similar to yours, and a valuation specialist. Klinger suggests that you also talk to your carrier partners. “Some might want to approve the buyer, especially if buyer isn’t appointed with the same carriers,” he observes.

Harris had been a member of MarshBerry, a consulting firm that provides intellectual capital, strategic consulting, and merger and acquisition advice to clients within the insurance industry.

“MarshBerry or similar firms look at your agency from a board of directors point of view, asking ‘what is your value?’, ‘what are you doing to increase the value?’, and ‘what is your long-term plan, are you going to keep it or sell it?’” Harris explains. He

“YOU SHOULDN’T WANT SEASONED PROFESSIONALS TO LEAVE ABRUPTLY. THEY STILL HAVE TREMENDOUS RELATIONSHIPS AND ABILITY TO ADD VALUE TO THE COMPANY.” — PIA NATIONAL PAST PRESIDENT ANDREW C. HARRIS

12 | February 2019

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“IF YOU THINK YOUR SON OR DAUGHTER IS INTERESTED IN THE BUSINESS, HAVE THEM GO TO WORK FOR SOMEONE ELSE FIRST. GO OUT AND MAKE MISTAKES FIRST.” — ROBERT KLINGER, PRESIDENT AND CEO OF THE KLINGER INSURANCE GROUP believes that it’s important to maximize the profit and efficiency of the agency. “If you do that you don’t have to sell it,” he says. “You can perpetuate it. It will run without you.”

EASE ON DOWN THE ROAD Harris notes that there’s an intuitive aspect to easing out of an agency; there are no hard and fast rules on timing. He agrees that transition is important, but some overlap is best. In his case, his son is gradually taking over the agency. He has stepped down as president, but he’s the CEO. “I want to see more senior people slowly transition out of the business,” Harris says.

“But it depends on whether you want to stay active in the business but not in the same role with the same responsibility. You shouldn’t want seasoned professionals to leave abruptly. They still have tremendous relationships and ability to add value to the company.

There’s a delicate balance when easing out and challenges in transitioning a family-owned business. As Harris observes, the successor may be looking over his or her shoulder to see whether Dad or Mom approves. At the same time, the agency staff may be looking at the parent as if to say, “Is this decision your [son/daughter] made right?” But, he adds, “When things are right they tend to fall into place.”

Klinger advises having confidential conversations with your team when you start thinking about easing out. See what their interests are, what their plans are. Do any of them have aspirations of owning their own agency? Are they happy just being employees?

If you get sick, Klinger adds, be sure you let the staff know that you have insurance in place to keep the firm going. He notes: You need to know your staff and how committed and loyal they are to you. That’s going to dictate the timing of when you tell them that you’re thinking of selling. Also, what is the prospective buyer likely to be like?

Reassure them that they’ll still have jobs.

Shortcut rumors with good communication.

Employees can tell when owners are cutting back, for example, losing carriers, not growing the business, and so on.

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Rosalie L. Donolon is Editor-in-Chief of the National Underwriter. Reprinted with permission; an unabridged version of this article is available at: https://www.propertycasualty360.com/ 2019/02/01/best-practices-for-insuranceagency-exit-and-succession/

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FAMILY MATTERS Harris informed his staff from the time he brought his son into the agency. “My son is my perpetuation plan,” he told them.

Keeping the staff informed tells them you’re going to be a legacy agency, and it’s not for sale. It helps to keep the staff motivated when they know you have a perpetuation plan. They’re not as worried about job security so they won’t leave when you do. Harris recommends positioning the conversation this way: “Not only do I need your help to keep the agency going, but so does my son.”

He also recommends having this conversation with your carrier partners.

In his agency, Harris has stepped down as president, but is still there as CEO. His son does more and more of the day-to-day running of the agency. “It’s happening easily and naturally,” He says.

Klinger says he’s setting up his business like a law firm or accounting firm. He’s growing junior producers to see which ones have the maturity and vision to be able to step up into the organization. “If you show them a career path, they’ll work harder, he says.

“If you think your son or daughter is interested in the business, have them go to work for someone else first,” Klinger advises.

“Go out and make mistakes first. Learn from hard times. Start at the lowest level.”

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February 2019 | 13

Protect Your Clients With PIA’s Cyber Insurance Program

Now PIA members can sell the same great PIA cyber insurance coverage that many have already purchased for their own agency.

Easy online quoting Special PIA enhancements and social engineering coverage Reduced rates

Start protecting your clients at www.pianet.com/sellcyber

14 | February 2019

www.pianet.com | PIA CONNECTION

In order to sell the PIA enhanced cyber product, PIA membership is required.

PIA CYBER INSURANCE NOW AVAILABLE TO SELL BY INDEPENDENT AGENTS Enhanced Cyber Coverage Tailored to Small and Mid-Sized Businesses PIA MEMBERS ARE NOW ABLE

to sell the PIA enhanced cyber insurance product to their clients.

PIA and ABA Insurance Services (ABAIS) have worked together with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a tailormade, robust cyber insurance program that responds to the most common cyber threats facing small and mid-sized businesses.

The PIA enhanced cyber insurance policy covers both first- and third-party loss for those most common cyber risks that may affect small and mid-sized businesses. These include: 1. Fraudulent funds transfers 2. Extortion/ransomware 3. Social engineering 4. Business interruption 5. Data breach/privacy 6. Network security 7. Website media liability “In the past, retail agents have been able to purchase PIA’s cyber insurance product for their own agencies,” said PIA National Executive Vice President & CEO Mike Becker. “We are now extending the same enhanced coverage to business customers of PIA members at a price that beats the street cost of policies without the PIA coverage enhancements.”

In addition to the seven coverage parts provided under the PIA cyber insurance policy, the additional policy enhancements include: • Expanded definition of multimedia wrongful acts—unauthorized use of website links, frames, formats, fonts, style, characters, titles.

“IN THIS DIGITAL ERA, IT’S NOT A QUESTION OF IF YOU WILL BE HACKED, BUT WHEN.” — David Rupnow, ABAIS, Senior Product Manager

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“IN THE PAST, RETAIL AGENTS HAVE BEEN ABLE TO PURCHASE PIA’S CYBER INSURANCE PRODUCT FOR THEIR OWN AGENCIES. WE ARE NOW EXTENDING THE SAME ENHANCED COVERAGE TO BUSINESS CUSTOMERS OF PIA MEMBERS.” — Mike Becker, PIA National, Executive Vice President & CEO • Coverage for HIPAA fines.

• Extended notice of Data Compromise (data breach event) from 5 to 30 days.

• Extended notice of Claim from 60 to 90 days after the end of the Policy Period.

• Extended notice of Non-Renewal from 60 to 90 days in advance of the Policy Expiration.

“In this digital era, it’s not a question of if you will be hacked, but when,” said ABAIS Senior Product Manager David Rupnow. “It is now more important than ever that businesses protect themselves from computer, network, and internet-based risks.”

In order to sell the PIA enhanced cyber product, PIA membership is required.

GAIN THE CONFIDENCE YOU NEED TO TALK ABOUT CYBER Cyber 101 is an educational resource created by PIA and The PIA Partnership to help educate PIA members and their clients about the seven most common cyber risks faced by small and midsized businesses, as well as the business practices and insurance coverages that can reduce those risks.

Agents who would like to protect their own agency can purchase PIA cyber insurance through their local PIA affiliate producers using a simplified, slot-rated quoting process. The policy premium is significantly discounted from those rates found in the standard market and includes the enhancements noted above. PIA membership is not required to purchase PIA cyber insurance for your agency.

AGENTS INTERESTED IN OFFERING CYBER INSURANCE TO THEIR CLIENTS OR LEARNING MORE SHOULD VISIT:

www.pianet.com/sellcyber

CYBER 101 Cyber Education Resources

Cyber 101 focuses on seven key areas of risk: fraudulent funds transfer, extortion/ransomware, social engineering, business interruption, data breach/ privacy, network security, and website media liability. Agents can learn more about each risk with additional resources such as: • Interactive claims examples that demonstrate loss risks to clients.

• 1-page PDFs explaining the risk.

• 30-minute webinars.

• Customizable general cyber educational resources.

Visit: www.pianet.com/cyber101 February 2019 | 15

$

AGENCY MARKETING

By Ted Janusz

HOW TO GET YOUR CUSTOMER EVANGELISTS TO SELL FOR YOU MARY KAY ASH, THE FOUNDER OF MARY KAY

Cosmetics, said that she believed that everybody she met had an invisible sign on their forehead that said, “Make me feel important.” And making them feel important was one of the key factors to her success.

If you think about it, her entire business model was based on making other people feel important. Her best salespeople drove around in pink Cadillacs. And by the way it wasn’t just a limited number of her top salespeople who drove those Cadillacs. No, if you achieved a certain goal, anybody on the team could been seen driving around town in a Cadillac. And how did you as a salesperson achieve that goal, by making your customers feel more attractive and important!

Rather than you as a small business person spending your hardearned money on marketing or advertising, wouldn’t it be great if you could get your customers to sell for you? Well, you can … simply by making them feel important.

Here are three ways to accomplish that:

FORM AN ADVISORY COUNCIL

Photo by ©jacoblund, iStockphoto

One of the ideas I like to share with my audiences is for each of them to form an Advisory Council. Here is how it works: Once a

16 | February 2019

quarter, take your best customers out to dinner to a fancy restaurant or country club. It especially helps if these customers are what best-selling author Seth Godin calls “sneezers,” people who are most influential in your community.

After dinner, ask your Advisory Council some questions like, “I’d like to give you a sneak peek at some new products and services we are thinking about rolling out. What do you think?” or “This is our new business plan for next year. What advice would you give us?”

And you know, it really doesn’t matter what they say. The important thing is that you made these people, who seem to know everybody in the community, feel important.

Not only will they be happy to meet other like-minded, influential members of the community at the quarterly meeting, they are likely to become lifetime customers themselves. (After all, who among your competitors are treating them so royally?) Best of all, they likely will be unable to contain their enthusiasm around others about how you make them feel special.

After their quarterly meeting with you, if they overhear someone shopping for products or services that you offer, they are likely to chime in to the conversation, beginning with words like, “You know,

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MORE MARKETING SUPPORT FROM PIA

if that is what you are considering, you really need to see my friends.

They’ll take really good care of you!”

And we all understand the power of personal recommendation and that word of mouth is the most influential and effective form of marketing you can get.

And you too can get it, for the price of dinner and some drinks, simply by making your best customers feel important.

FARM A FRATERNITY We tend to like, trust and buy from people who are like us; we tend to not like, trust or buy from people whom we perceive are unlike us.

There are plenty of potential customers in the community who are just like you! How do you know? They share the same interests that you do, which is a great starting point for building a business relationship.

So, to what groups do you belong?

• Chamber of Commerce • Other business and civic groups • Alumni associations and PTAs • Fitness centers • Toastmasters • Church groups • Softball teams • Kids’ baseball, basketball or soccer leagues But be sure to do this right. We’ve all been to events and encounter people trying to build business relationships the wrong way. They walk around the room, moving from person to person, repeating the same proclamation, which is something like, “Hi! I’m Joe! If you ever need your computer fixed, call me!” while shoving a business card in your hand.

“Networking is not selling,” warns Patti DeNucci, author of The Intentional Networker: Attracting Powerful Relationships, Referrals & Results in Business. “Networking is about relationships. It’s about conversations. It’s about getting to know people as people.”

When I was presenting to a group of CPAs, one attendee told me that every partner in the firm was required to join one of these affinity groups, any group of their choice. The CPAs found that instead of advertising to a community, once they got to know the members of the group, it was a far easier and more effective way to market. And, of course, once you satisfy a few members of the group, the word will easily be spread by these evangelists throughout the rest of the group like a wild fire.

An interesting side note: my insurance agent sponsors an “athlete of the month” at the local high school. He regularly runs an advertisement featuring a prominent male and female athlete in the community paper. Not only will those athletes clip out the ad (Who cuts out and saves the advertisements of insurance agents—with the agent’s name, agency logo and contact information?), they will also send copies of the ad to their family and friends. This marketing activity also

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PIA members have access to a wealth of marketing tips in past and present issues of the annual PIA Agency Marketing Guide. Read them all at www.PIAAgencyMarketingGuide.com.

Strategies to Help Your Agency Grow

PIA

Agency Marketin g Guide Brought to you by

these sponsors:

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A product of the PIA

Branding Program

PIA wishes to thank the sponsors of the most recent PIA Agency Marketing Guide: American Reliable Insurance Company; NationsBuilders Insurance Services, Inc. (NBIS); Progressive Insurance and Smart Choice.

PIA’s Agency Marketing Guide is published as part of the PIA Branding Program, PIA’s agency marketing program (www.piabrandingprogram.com). Funding for the PIA Branding Program is provided in part by PIA’s Pinnacle Partners: Bankers Insurance Group, Encompass Insurance, Erie Insurance, Motorists Insurance Group, and State Auto Insurance Companies.

allows my agent to get to know the school administrators, coaches and parents—who also need to buy insurance. He gets all of these benefits by once a month making two future insurance clients feel important.

TEAM UP FOR FUSION MARKETING A customer database is oftentimes the most valuable asset any small business possesses.

Another business may not want to give up or sell you a list of their valued customers, but you don’t need to buy their list. You can simply team up with a non-competing but complementary business to promote your products and services to those customers and share the marketing expenses.

Examples have included: • An auto dealer and a car wash owner • A veterinarian and a pet store owner • A sports bar proprietor and a sporting goods owner • A restaurant owner and the community theater—One of the best places for the restaurant to advertise or offer a coupon was in the program for the theater.

• A hair salon and a clothing boutique For the last example, the hair salon had a display for the clothing boutique; the clothing boutique had a display for the hair salon. The only real cost was the time it took for the two owners to get together to devise the displays!

Further, the other business person can become an evangelist for your business, and you can do the same for them.

In fact, Jim Kelly, the former CEO of UPS said, “The old adage ‘If you can’t beat ‘em, join ‘em’ is being replaced with ‘Join ‘em and you can’t be beat.’”

Ted Janusz, MBA, has been honored to contribute articles to all nine annual PIA Agency Marketing Guides and has conducted multiple webinars for PIA on marketing. Because Baby Boomers learn about and use social media differently from other generations, Ted conducts his workshops for insurance agents and insurance companies who want to use social media to produce a bottom-line impact for their agencies and companies. Learn more at www.januspresentations.com.

February 2019 | 17

PIA ANNOUNCES 2019 PIA INSURETECH SHOWCASE PIA HAS ANNOUNCED A

AC

L E PAR

TN ER

P I NN

a family agency which is still thriving in Rhode Island and was a PIA national director and board member from Rhode Island.

“My roots are in the American agency system and I still think it’s got a lot of life left in it, contrary to popular belief sometimes,” Hartnett said.

InsureTech innovators may apply for a limited number of speaking slots at the April 2, 2019 session. Interested individuals should contact insuretech@pianet.org.

“Technology has always been a big plus for independent insurance agents, and it always will be,” Savino said. “From the earliest days of automation (which seem so quaint now), technology has improved the businesses of agents who have embraced it, mastered it and used it to succeed.”

“The initial perception was that InsureTech represented a threat to independent agents, but the evolution is to then focus on the power and strength of the agent channel. PIA will help provide a platform for their launch,” Savino said. “The technology exists today to empower agents to better serve their clients, in real time.

The goal is to create enhanced opportunities for independent agencies by expanding our business and consumer experience solutions. Agents need to embrace these innovations.”

The 2019 PIA InsureTech Showcase will be moderated by Bill Hartnett, who spent 18 years with Microsoft heading up its vertical marketing for the banking, insurance and capital markets sectors. Previously, Hartnett was an agent and broker who ran

showcase for InsureTech innovators whose ideas can specifically advantage independent insurance agents.

The 2019 PIA InsureTech Showcase will take place on April 2, 2019 in Crystal City, Virginia. PIA has issued a call for InsureTech presenters for this showcase whose ideas can be embraced by insurance agents to enhance their competitiveness as part of the independent agency distribution system.

“This event will provide a unique opportunity for innovators to showcase practical applications for emerging technologies that can specifically help independent agents succeed, not focused on disruption but empowerment,” said PIA National President Keith A. Savino.

2019 PIA NATIONAL PINNACLE PARTNERS Bankers Insurance Group Encompass Insurance Erie Insurance Motorists Insurance Group State Auto Insurance Companies

PIA Thanks Our 2019 Federal Legislative Summit Sponsors PLATINUM LEVEL

GOLD LEVEL

18 | February 2019

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The Omnia Profile is both a selection and retention tool which can be used to: • Hire, promote and retain employees • Avoid taking on workers incompatible with your work culture • Key into new ways to motivate your existing team • Learn how to communicate with multi-generational personnel • See who really has sales or management potential — and who doesn’t • Keep good employees When first contacting Omnia, PIA members receive a free online, instant assessment or a free custom assessment of an agency employee or prospective employee. Plus, if you buy a package of Omnia Profiles you’ll also receive one free. Get started on your track to success today by calling Carletta Clyatt of The Omnia Group at 800-525-7117 x 1226 or email her at cclyatt@omniagroup.com and be sure to tell her you are a PIA member to receive your free assessments.

HR WEBINARS FROM OMNIA Don’t forget to take advantage of Omnia’s free PIA member-only webinars produced for those in customer service, sales, HR and leadership roles. Take a look at this year’s schedule: 4.17.19 — Build Better Sales Teams Through Effective Communication 5.15.19 — 3 Ways to Synchronize Teamwork in Your Agency 9.18.19 — Cash, Kudos, or Pizza…What Motivates Your Staff?

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February 2019 | 19

NFIP: HOMEOWNERS “IN DENIAL” ABOUT FLOOD RISK are frequently “in denial about their flood risk and lack needed insurance protection,” writes David Maurstad, chief executive of the National Flood Insurance Program (NFIP), in an op-ed in the Palm Beach Post. “Unfortunately, most Americans are in denial about their flood risk and lack needed insurance protection. Where it can rain, it can flood. Many only find that out when disaster strikes and they struggle to rebuild.”

Maurstad outlined the steps being taken to improve the NFIP and help it deal with the increased costs associated with more numerous and stronger storms.

“It’s no secret that Hurricanes Katrina, Sandy, Harvey, Irma and Maria rocked the financial foundation of the program. Flood claims from those storms far exceeded the funds available from policyholder premiums to pay or insured losses.”

“It is unrealistic to raise premiums enough to make-up the deficit from extreme events. As a result, Congress enabled the NFIP to borrow funds from the U.S. Treasury in order to pay claims, thereby assisting property owners and communities to recover quicker. Let me be clear: borrowing is a temporary measure put in place while NFIP works on ways to improve its financial framework and other critical reforms continue,” Maurstad said.

Continuing its risk management practice against future catastrophic flood losses, FEMA announced its 2019 traditional reinsurance placement for the National Flood Insurance Program (NFIP).

Reinsurance is a financial risk management tool used by private insurance companies and public entities to protect

“It is unrealistic to raise premiums enough to make-up the deficit from extreme events.”

20 | February 2019

Photo by ©undefined undefined, iStockphoto

HOMEOWNERS IN THE US

themselves from large financial losses.

If a catastrophic flood event occurs, the reinsurance companies cover a portion of the NFIP’s losses, reducing FEMA’s need to borrow from the U.S. Treasury to pay claims.

FEMA transferred $1.32 billion of the NFIP’s financial risk to the private reinsurance market. This Reinsurance Agreement is effective from January 1, 2019 to January 1, 2020, with 28 private reinsurance companies.

Combined with the $500 million August 2018 capital markets reinsurance placement, FEMA has transferred $1.82 billion of the NFIP’s flood risk for the 2019 hurricane season to the private sector. If a named storm flood event is large enough to trigger both reinsurance agreements (i.e., a named storm flood event where NFIP claims exceed $5 billion), FEMA would receive payments under both reinsurance agreements.

“It takes an entire community to prepare for disasters, and that includes participation from the private sector. Through reinsurance, FEMA partners with private markets to build a pillar that supports a sound financial framework for the NFIP by a meaningful transfer of flood risk,” said David Maurstad, chief executive of the National Flood Insurance Program.

The 2019 placement of reinsurance

covers portions of NFIP losses above $4 billion arising from a single flooding event.

FEMA paid a total premium of $186 million for the coverage.

The agreement is structured to cover: • 14 percent of losses between $4 billion and $6 billion, • 25.6 percent of losses between $6 billion and $8 billion, and • 26.6 percent of losses between $8 billion and $10 billion Historically, the NFIP was limited to using flood insurance premiums, available surplus, borrowing capacity from the U.S. Treasury, and in some cases direct appropriations from Congress to pay flood claims.

FEMA contracted with Guy Carpenter and Company, a subsidiary of Marsh & McLennan Companies, to provide broker services to assist in securing the reinsurance placement. FEMA also contracted with Aon for financial advisory services for the placement.

FEMA received authority to secure reinsurance through the Biggert-Waters Flood Insurance Reform Act of 2012 (BW12), and the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA). FEMA’s 2019 reinsurance placement builds upon its 2017 cornerstone placement and 2018 placements, as further development toward a stronger financial framework.

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February 2019 | 21

PIA AFFILIATES ALABAMA

MARYLAND

OREGON/IDAHO

PIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

Insurance Agents & Brokers of Maryland 5050 Ritter Rd, Mechanicsburg, PA 17055-0763 PHONE: (717) 795-9100 | FAX: (717) 795-8347 e-mail: iab@iabforme.com | Web Site: www.iabforme.com

PIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665 PHONE: (888) 246-4466 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

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

MICHIGAN

PUERTO RICO & CARIBBEAN

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

PIA of Puerto Rico and the Caribbean Inc KOI Building, Urb. Muñoz Rivera, Acuarela Street, 3A, Office G – 10, Guaynabo, PR 00969 PHONE: (787) 387-9696 | FAX: (787) 792-4745 e-mail: administration@piaofpr.org | Web Site: www.piaofpr.org

ARKANSAS PIA of Arkansas Inc. 10801 Executive Center Drive, Suite 207, Little Rock, AR 72211 PHONE: (501) 225-1645 | FAX: (501) 225-2550 e-mail: evp@piaar.com | Web Site: www.piaar.com

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

COLORADO

MINNESOTA

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

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

CONNECTICUT

MISSISSIPPI

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

PIA Southern Alliance, 3805 Crestwood Pkwy. NW, Ste. 140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

DELAWARE

MISSOURI

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

Missouri Association of Insurance Agents 3315 Emerald Lane, Jefferson City, MO 65109-6878 PHONE: 573-893-4301 | FAX: 573-893-3708 e-mail: mbarton@moagent.org | Web Site: www.missouriagent.org

FLORIDA PIA of Florida, Inc., 311 East Park Avenue, Tallahassee, FL 32301 PHONE: (850) 893-8245 | (800) 277-1171 FL only | FAX: (850) 893-8316 e-mail: piafl@piafl.org | Web Site: www.piafl.org

MONTANA

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

SOUTH CAROLINA PIA of South Carolina, PO Box 6167, Columbia, SC 29260 PHONE: (803) 772-0557 | (888) 742-6372 | FAX: (803) 772-0846 e-mail: PIASC@piasc.net | Web Site: www.piasc.net

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

TENNESSEE

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

PIA of Tennessee Inc 504 Autumn Springs Court Suite A-3, Franklin, TN 37067 PHONE: (615) 771-1177 | FAX: (615) 771-3456 e-mail: piatn@piatn.com | Web Site: www.piatn.com

NEBRASKA/IOWA

TEXAS

HAWAII

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

PIA of Texas 5605 N. MacArthur Blvd. Suite 1000, Irving, TX 75038 PHONE: (972) 862-3333 | FAX: (972) 307-7888 e-mail: vicki@piatx.org | Web Site: www.piatx.org

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

NEW HAMPSHIRE

UTAH

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

Utah Association of Independent Insurance Agents 4885 S. 900 E., Suite 302, Salt Lake City, UT 84117 PHONE: (801) 269-1200 | FAX: (801) 269-1265 e-mail: ctimothy@srvins.com | Web Site: www.uaiia.org

GEORGIA PIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

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

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

KANSAS

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

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

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

VIRGINIA/DC

NORTH CAROLINA

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

KENTUCKY

PIANC, PO Box 1387 Davidson, NC 28036 PHONE: (704) 534-2338 e-mail: jim@pianc.net | Web Site: www.pianc.net

WASHINGTON/ALASKA

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

NORTH DAKOTA

Kansas Association of Professional Insurance Agents 216 SW 7th Ave, Topeka, KS 66603 PHONE: (785) 232-4143 | FAX: (785) 232-0272 e-mail: pia@pia.kscoxmail.com | Web Site: www.kansaspia.org

LOUISIANA PIA of Louisiana Inc. 4021 W. E. Heck Ct., Building K, Baton Rouge, LA 70816 PHONE: (225) 766-7770 | (800) 349-3434 LA only | FAX: (225) 766-1601 e-mail: jody@piaoflouisiana.com | Web Site: www.piaoflouisiana.com

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

22 | February 2019

PIA of North Dakota 1211 Memorial Hwy Holiday Park Office #6, Bismarck, ND 58504-5213 PHONE: (701) 223-5025 | (800) 733-1050 ND&MN only FAX: (701) 223-9456 | e-mail: info@piand.com Web Site: www.piand.com

OHIO

PIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665 PHONE: (360) 571-7100 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

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

WISCONSIN

Ohio Insurance Agents Association, Inc., 600 Cross Pointe Road, Gahanna, OH 43230 PHONE: (614) 552-8000 | (800) 555-1742 | FAX: (614) 552-0115 e-mail: OIA@ohioinsuranceagents.com | Web Site: www.ohioinsuranceagents.com

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

OKLAHOMA

WYOMING

PHONE: 703-836-9340 | FAX: 703-836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.org

Assoc. of Wyoming Ins. Agents, PO Box 1321, Cheyenne, WY 82003 PHONE: (307) 201-4801 | FAX: (775) 796-3122 e-mail: awia@vcn.com | Web Site: www.awia.com

www.pianet.com | PIA CONNECTION

PARTNER WITH THE HARTFORD, A LEADER IN FLOOD INSURANCE. The Hartford is one of the largest providers of flood insurance, offering a full-service solution, competitive commissions and a dedicated local Sales Director.

Contact Joseph Surowiecki, National Flood Sales Manager at 860.547.5006.

The Hartford is proud to be PIA’s nationally endorsed flood insurance provider.

42314A

Policies are written subject to the National Flood Insurance Program. Insurance is provided by the property and casualty insurance companies of The Hartford Financial Services Group, Inc., Hartford, CT. Š 2014 The Hartford Financial Services Group, Inc., Hartford, CT 06155. All Rights Reserved.

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