Summer 2020 Anchor

The Anchor

SUMMER 2020

THE INDEPENDENT INSURANCE AGENTS OF RHODE ISLAND MAGAZINE

From buttons to bread EMC has it covered.

EMC Insurance Companies offers comprehensive coverage tailored to the needs of 98 different types of light manufacturers producing everything from buttons to bread to electronic components. This line offers optional coverage for manufacturers and delivery errors or omissions, plus employment practices liability. Certain coverages are even bundled automatically — meaning whatever your clients make, EMC makes insuring their businesses easier.

www.emcins.com ŠCopyright Employers Mutual Casualty Company 2020. All rights reserved.

CONTENTS

SUMMER 2020 | DIGITAL RELEASE ONLY

Independent Insurance Agents of Rhode Island

President Perspective ............................................. 7 Executive Vice President Perspective ...................... 9 Case Law Notes.......................................................

10

2020 Market Statistics ............................................

11

Partners ..................................................................

22

Legal Briefs ............................................................

24

Human Resources Corner ........................................

29

Worker’s Compensation...........................................

30

Government Affairs Update ......................................

33

Marketing Corner.....................................................

34

Emerging Leaders....................................................

37

7 Company Partners & Sponsors

211 2020 Market Share Analysis

24 Wage Payment Mistakes

Independent Insurance Agents of Rhode Island Summer 2020 3

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Local Listings Management Social Media Marketing Pay-Per-Click Advertising

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OFFICERS President

Denise T. Smith, CIC

President Elect

Kenneth Thompson, Jr.

Vice President

Michele Calabrese

State National Director

William J. Hunt, CPCU

Immediate Past President

John Kaull, AAI

DIRECTORS Terms Expire 2020

INDEX EMC Insurance ............................................... 2

Terms Expire 2021

Terms Expire 2022

ADVERTISERS

Thomas. J. DiSanto, JD, LLM, CIC Christopher Slocum, CIC, CPIA

Brightfire ...................................................... 4

Anthony Bucci, Jr., CPCU, AIS Sean P. Daly, CPCU

Big I Professional Liability

Margaret Longolucco, CIC Joseph Paiva

STAFF Marcia L. Berthiaume, AAI, ACSR, AIS, CPIA State Account Manager, Emerging Leaders Liaison Helen Collins, AAI, AIS, CPIA Director of Professional Liability

Big I Advantage

............................... 6

............................................ 6

Servpro®......................................................... 27 RLI Umbrella . .................................................. 32 JH Communications

........................................ 35

PS&H ............................................................ back

Sean R. Donaghey, CPCU Senior Vice President, State Account Executive Toni Drowne Communications & Marketing Manager Jack Hutson, CAE Senior Vice President, Business Development Lori Kaufman Executive Assistant, Membership Services Coordinator Maureen McNamara, AIS, ACSR Assistant Treasurer, Director of Finance Mark A. Male, MLIS Executive Vice President, Secretary/Treasurer

EDITOR’s NOTE (SUMMER 2020): Due to the ongoing COVID-19 pandemic, we have decided to publish this edition digitally.

Jean E. Nagle, AAI, ACSR, AIS Assistant Vice President, Director of Education Sarah Ribera Assistant Director of Education & Membership The Anchor is published by the Independent Insurance Agents of Rhode Island (IIARI). Statement of fact and opinion is made based on the responsibility of the authors alone and does not imply an opinion on the part of IIARI, it’s officers, directors or members.

Subscription rate for members is $15, which is included in dues. Subscription rates for non-members is $75 per year. (single copies $10). Reprint requests should be referred to IIARI. Copyright © 2020 Independent Insurance Agents of Rhode Island.

Independent Insurance Agents of Rhode Island Summer 2020 5

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PRESIDENT PERSPECTIVE

Changes and Openings As agents, we are currently facing unique challenges, and this is our chance to shine. The “new normal” we live in gives us an opportunity to reexamine our business practices and operations. We are being called upon to provide advice and serve our clients who are in need emotionally, and even financially.

I am fortunate enough to have the space which allows my staff to safely return to the office. We follow strict rules of reopening, including requiring masks and safe distancing to enter the building. Even though the channels of communication include phone, video chats, text, email, fax, electronic signatures, and social media, we find many clients showing up at our doorstep looking for advice, comfort, payments, etc. Everyone that comes to our door is fully masked and screened even though, of course, some do let us know how much they dislike wearing them.

Border agencies are facing RMV challenges with appointment scheduling and state-to-state registration transfers. Claims have certainly not dissipated and sometimes it takes a visit to the agency for a client to obtain comfort and reassurance. Also, cash payments are the only way for some to pay their policy premiums and they prefer to hand the payment to us and walk away with a receipt.

“Please stay strong and be safe!”

Market Access (IMS) program that will provide a member platform for markets. The markets themselves will be developed over time but the UPC program will be the first to transition to IMS. This is being done to compliment the Big I Markets program, not to replace it. There will more to come in the future.

In closing, thank you for the honor, privilege, and opportunity to serve as your president of this great association this past year. I am very proud to be a member and to have served on the board for several years. Please stay strong and be safe!

Larger agents face more challenges due to the number of employees and volume of clients. Which employees will return to the office, which ones will work from home? Once given the opportunity to work from home, many begin to prefer it rather than driving to work and sitting in the office. Again “how we run our business” may never be the same as it was a year ago.

This has been a strange year to be the President of the IIARI. With every trip, function, and the annual convention being cancelled, my memory of being President will be the year of the Pandemic.

Accomplishments were made in spite of these unique situations. IIARI has enrolled into the Independent Denise Smith, CIC IIARI President

7

Summer 2020

EXECUTIVE VICE PRESIDENT PERSPECTIVE

Company Support & Partners Program It may be intuitive for many that company support means a great deal to the Association. I say intuitively but most agents may not comprehend the correlation between that support and our ability to operate as IIARI. I imagine most will recognize the annual perennial supporters, but does anyone understand the importance of their support?

IIARI is a 501c(6) not for profit entity that is fundamentally different than a 501c(3) nonprofit. True nonprofits are exempt from taxation and organization contributions are typically tax deductible. They are not able to lobby on issues whereas a 501c(6) is permitted to do so. We do pay taxes on unrelated income like any other for profit, but the bulk of our activity is exempt.

As a not for profit operation we target an annual breakeven budget which necessitates the need to secure enough revenue to run the operation while managing our expenses. Our major sources of revenue have been dues, convention, education, and sponsorships. To say sponsorships helps our budget is an understatement. Let me explain.

Since its inception, the annual Partners Program has assisted the Association with meeting our budget. Absent that direct company support, either dues would increase exponentially, or we would reduce or eliminate some of our services.

Each year we owe a huge debt of gratitude to our Partners Program companies. It cannot be overstated, the Partners are a critical part of IIARI success.

The Beacon Mutual Insurance Company has supported the Partners Program since its

inception. What places Beacon Mutual above all others is they also support the annual RI Trusted Choice® branding campaign AND underwrite convention registration for commercial lines CSRs. It is exemplary what they do to support our organization. Recently they even hosted two workers’ compensation sessions on the #RI Agents Live programs which were well attended. A few years ago, Beacon Mutual was recognized at our Annual Meeting for their years of Association support, but I would like to express my personal gratitude to them for supporting our organization through these unprecedented times.

And while we note Beacon’s long-term commitment to IIARI, we would be remiss not to recognize and thank the other companies who have been in the program since its inception like EMC insurance Companies and Progressive.

Robert J. Pettinicchi, Mark Chief Male Lending officer, Executive Vice President

Insurbanc

Summer 2020

8

m other insurance companies is the local service we provide. We 45 states and we have 20 offices strategically located around with us, you not only get the stability of one of the country’s top ons, but you also get a familiar face close to home.

Please also note and thank the following companies who have supported the Partners Program for over a decade:

forward to seeing you soon.

The Beacon Mutual EMC Insurance Companies MAPFRE Insurance Progressive Quincy Mutual

any 2018. All rights reserved.

Safeco/Liberty Mutual Other companies that have been involved over the last seven plus years include:

Hospitality Insurance Johnson & Johnson, Inc, CMGA Narragansett Bay NLC Insurance Ohio Mutual

Without these incredibly supportive companies, IIARI would look substantially different than we do today. Whenever you encounter someone from any of these companies, be sure to thank them for their support of the Association and helping us sustain our operation as a not-for-profit association and building a wonderful Rhode Island Agent community.

Providence Mutual RI Association of Ins. Agents UPC Insurance Vermont Mutual

Independent Insurance Agents of Rhode Island Summer 2020 9

SUMMER 2020

CASE LAW NOTES Frazier v. Liberty Mut. Ins. Co., No. 2018-288-Appeal, 2020 WL 3117048 (R.I. June 12, 2020) In November 2013, Timothy Frazier (“Frazier”) alleges he slipped and fell in the bathroom of a Pizza Hut owned and operated by Mita Enterprises, LLC (“Mita”). Three years later, just before the applicable statue of limitations expired, Frazier filed suit against Mita for his alleged injuries. Mita, however, did not respond to the complaint, and Frazier moved for default due to their failure to respond. The Superior Court granted the motion and default entered against Mita. Attorneys for Mita later filed a motion to vacate the default and to dismiss the case due to improper service of the complaint on them.

Mita’s motions were granted, and the case was dismissed.

Importantly, Mita was represented by attorneys engaged by its insurer, Liberty Mutual.

Frazier filed a new complaint in July 2017. Mita, however, could not be served as it had gone out of business. The summons was returned non est inventus (Latin for “he is not found”).

Under rules of court procedure, Frazier moved to substitute Mita’s insurer, Liberty Mutual, as defendant. Liberty Mutual argued that the statute of limitations barred the second case, which was clearly brought more than three years after Frazier’s alleged fall. In opposition, Frazier argued that due to Rhode Island’s “savings statute,” his claim could be timely re-filed for an additional year after dismissal.

But Frazier’s initial claim was against Mita, not Liberty Mutual!

Liberty Mutual relied on a longstanding rule dating to 1931 that the savings statute does not apply against a defendant which “was a stranger to the original action.” Luft v. Factory Mut. Liability Ins. Co. of America, 51 R.I. 452, 155 A. 526 (1931) (emphasis added). That might be so, Frazier argued, but in this circumstance at least, Liberty Mutual was not a stranger to the initial, timely-filed action—Liberty Mutual had, after all, retained the counsel that succeeded in getting the initial complaint dismissed. Rhode Island’s savings statute provides that: [i]f an action is timely commenced and is terminated in any other manner than by a voluntary discontinuance, a dismissal of the complaint for neglect to prosecute the action, or a final judgment upon the merits, [the plaintiff] may commence a new action upon the same claim within one year after the termination.

R.I.G.L. 1956 § 9-1-22. The Superior Court granted Liberty Mutual’s motion, reasoning that Frazier’s claim against the insurer was not preserved by the savings statute, as the insurer was not a party to the first action and was therefore a stranger.

On appeal, the Rhode Island Supreme Court held that the trial judge erred in granting Liberty Mutual a dismissal because

Mita and Liberty Mutual shared “a sufficient commonality of interest,” that Liberty Mutual was not a “stranger to the original action.” The Supreme Court reasoned that despite the longstanding rule, “modern society and evolving jurisprudence present a different view” of whether an insurer who appears on behalf of its insured is considered a “stranger” to that action.

The Supreme Court further reasoned that an action against the insurer “places the injured person in precisely the same position with relation to the insurer” that the policyholder would be in if he had simply paid a judgment and thereafter sought indemnification from the insurer. And critically, the Supreme Court held that a “sufficient link” existed between insurer and the insured in Frazer’s case because the insurer had retained counsel to press for the dismissal of Frazier’s initial, timely-filed claim against Mita. Even under the longstanding rule, if an insurer is not a “stranger” to the original action, then Frazier’s claim would be preserved by Rhode Island’s savings statute.

The Frazier decision may have somewhat limited application, because unlike some other states, Rhode Island does not generally provide for a direct action against an alleged tortfeasor’s insurer—except in certain limited circumstances (one of which is service of the complaint returned non est inventus). That said, where it does apply, its consequences are immediate and significant. Even if a plaintiff cannot—or does not—name an insurer as defendant in a legal filing, and even if the statute of limitations has run on the claim, a claim against that insurer may now be preserved by the savings statute due to the “commonality of interest” between insurer and insured.

Effectively, Frazier will mean that insurers have exposure to potential liability for a longer time—the applicable statute of limitations plus a year from the savings statute. Insurers are also put at direct risk when defending claims against their insureds (suits in which the insurer itself is not named), because Frazier acts to combine insurer and insured, effectively, into one party. Does this mean, looking forward, that insurers will no longer be able to argue certain defenses such as lack of notice or ineffective service—even when the insured does not give notice or the insurer is never served? Can an insurer ever be a stranger to an action against its insured? What notice to the insurer is required to render them a non-stranger? Will the savings statute now effectively always preserve claims against insurers when the insured cannot be located? For now, these questions are unanswered, or only partially answered.

The bottom line is that Frazier creates the likelihood of additional risk for insurers and creates an opening through which further expansions on insurer liability may follow.

This feature of The Anchor reviews recent state and federal case decision impacting the insurance industry. Please contact the author for more information: Travis J. McDermott, Esq. (tmcdermott@psh.com or 401-861-8217), Partridge Snow & Hahn LLP 10

Summer 2020

The Anchor

SPECIAL REPORT

2020 RHODE ISLAND MARKET SHARE ANALYSIS

by Roger L. Messier, CPCU

2019 was generally a great year for the Rhode Island Insurance Market. We increased our overall premiums by about $110 million to $2,465,468,000 with a good overall loss ratio.

But, The great news is that the Independent Agents have regained Market Shares in Private Passenger Auto and Homeowners. This is great news and has taken years to accomplish.

According to Best, the Direct Writers wrote 52.7% of the Private Passenger Auto Liability Premiums BUT Main Street America is now considered a Direct Writer because it is owned by American Family. MSA had 2.2% Market Shares. In addition, Met is considered a Direct Writer and had a 4.5 Market Share while most of this business is written by Independent Agents.

So, if we take the Best 52.7 – MSA 2.2, we’re at 50.5 and if you just split the Met results, we would take 2.2 from 50.5 to arrive at 48.3. This is truly remarkable. In 1995, the Direct Writers Market Share was 58.6.

Generally, the Homeowners results indicate that the Direct Writers have a 51.7 Market Share, but American Family wrote 4.5, while bringing the 51.7 down to 47.2 and Met wrote 3.9, which would reduce the 47.2 to 43.3.

What we have accomplished this year is huge and indicates that the Independent Agent is working again and selling.

To all those companies who predicted the demise of the Independent Agents, I’m glad you’re not predicting the results of the next election.

I’ve been doing this report since 1988, and it’s the best one yet. Congratulations to all our fellow agents!

Independent Insurance Agents of Rhode Island Summer 2020 11

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS

RHODE ISLAND 2019 RESULTS by Line

12

2019

2018

2017

Private Pass. Auto Liability

637,542,000

638,045,000

612,871,000

Private Pass. Phys. Damage

343,175,000

327,612,000

309,114,000

Homeowners

440,193,000

419,521,000

398,970,000

W.C.

229,321,000

219,800,000

220,355,000

Products Liability

11,972,000

11,311,000

11,687,000

Comm’l Multi-Peril (Non-Liab.)

68,967,000

101,503,000

94,045,000

Comm’l Multi-Peril (Liability)

106,742,000

65,844,000

60,255,000

Other Liability

140,661,000

133,815,000

146,366,000

Comm’l Auto Liability

102,026,000

93,215,000

92,227,000

Comm’l Auto Phys. Damage

29,259,000

25,943,000

24,628,000

Inland Marine

96,217,000

87,277,000

82,911,000

Medical Malpractice - Other Than MMJUA

30,136,000

26,136,000

26,603,000

Fire

41,354,000

40,717,000

42,672,000

Allied Lines

47,684,000

44,483,000

28,664,000

Summer 2020

IIARI SPECIAL REPORT

The Anchor

2

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT RANK

20202018

RHODE ISLAND 2018 RESULTS TOP 20 WRITERS ALL GROUP 1 LINES

COMPANY NAME

2019 MARKET SHARE

2018 MARKET SHARE

2017 MARKET SHARE

WRITTEN PREMIUMS

P/E

I/E

1

C

Progressive

10.4

9.7

9.2

257,548,000

57.9

62.4

2

n

Amica

7.4

7.9

7.8

191,831,000

49.4

53.9

3

C

Allstate

6.7

7.0

7.4

165,622,000

51.0

48.6

GEICO

6.3

154,357,000

60.5

68.7

Liberty Mutual

6.2

6.4

6.5

151, 879,000

49.1

55.0

Beacon Mutual

4.9

5.2

5.5

120,457,000

53.0

55.1

4 5

C

6 7

C

Nationwide

4.3

4.6

5.1

105,260,000

57.5

53.8

8

n

USAA

4.1

4.2

4.1

100,773,000

65.8

64.4

9

Travelers

3.8

3.7

3.8

94,631,000

34.6

37.2

10

Chubb

3.0

2.9

2.8

72,799,000

28.1

18.6

11

MetLife

2.6

3.0

3.3

64,720,000

57.0

46.4

12

American Family

2.3

-

-

57,078,000

59.5

81.6

13

Hartford

2.1

1.9

1.8

51,058,000

33.0

32.9

14

Selective

1.9

2.0

2.1

46,607,000

39.6

45.6

15

Tokio Marine

1.7

1.2

-

42,734,000

37.7

61.9

16

American Int’l Group

1.6

1.9

1.6

38,648,000

87.4

116.3

17

Andover

1.4

1.3

1.3

34,999,000

53.2

56.4

18

Mapfre

1.4

2.5

2.6

34,804,000

75.9

63.8

19

Zurich

1.3

1.6

2.2

31,908,000

61.0

30.6

20

United Ins. Group

1.3

1.5

1.5

31,873,000

52.2

58.6

2019 TOTAL WRITTEN PREMIUM

2,465,468,000

2018 2,355,562,000

2017 2,268,211,000

PAID TO EARNED LOSS RATIO:

52.2

56.0

53.1

INCURRED TO EARNED LOSS RATIO:

54.6

60.9

52.3

MARKET SHARES National Agency

29.9

State & Regional

32.4

Direct Writes

37.7

IIARI SPECIAL REPORT 3 Independent Insurance Agents of Rhode Island Summer 2020 13

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT RANK

1

RHODE ISLAND 2019 RESULTS PRIVATE PASSENGER AUTO LIABILITY

COMPANY NAME

C

2

2019 MARKET SHARE

2018 MARKET SHARE

2017 MARKET SHARE

WRITTEN PREMIUMS

P/E

I/E

Progressive

27.7

24.5

23.6

176,876,000

54.3

59.4

GEICO

12.6

12.0

11.6

80,130,000

66.9

75.8

3

n

Amica

10.9

11.0

10.5

69,461,000

52.1

61.2

4

C

Allstate

10.4

10.8

11.9

66,100,000

62.7

56.5

5

n

USAA

5.9

6.4

6.4

37,703,000

79.4

78.1

6

C

Liberty Mutual

5.6

6.4

6.7

35,850,000

69.9

63.7

7

C

Nationwide

4.6

5.2

5.9

29,166,000

67.8

65.2

8

C

MetLife Auto

4.5

5.2

5.8

28,788,000

74.5

58.1

Mapfre

2.5

4.5

4.6

16,206,000

97.3

77.2

State Farm

2.5

1.8

.5

15,623,000

82.2

129.7

11

Travelers

2.3

2.2

2.2

14,717,000

50.8

52.4

12

Auto Club

2.2

-

-

13,859,000

23.5

70.6

13

American Family

2.2

2.2

-

13,748,000

77.8

86.0

14

Selective

1.1

1.5

1.5

7,038,000

75.1

86.3

15

Providence Mutual

1.1

1.3

1.2

6,734,000

77.6

73.5

16

Ohio Mutual

1.0

1.0

1.1

6,415,000

63.5

60.5

17

Hartford

.6

.8

.8

3,626,000

101.5

79.8

18

Quincy Mutual

.5

.6

.7

3,293,000

77.9

62.1

19

National General

.5

.6

.7

3,035,000

66.0

94.1

20

Horace Mann

.3

.3

-

2,008,000

73.9

72.8

9 10

n

2019

2018

2017

637,547,000

638,045,000

612,871,000

PAID TO EARNED LOSS RATIO:

63.5

63.9

55.8

INCURRED TO EARNED LOSS RATIO:

66.6

64.1

69.9

National Agency Co.

12.0

9.9

10.2

State and Regional

35.3

27.9

29.3

Direct Writers

52.7

59.5

60.5

TOTAL WRITTEN PREMIUM

MARKET SHARES

14

Summer 2020

IIARI SPECIAL REPORT

The Anchor

4

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT

RANK

1

RHODE ISLAND 2019 RESULTS PRIVATE PASSENGER AUTO PHYSICAL DAMAGE

COMPANY NAME

C

2

20202018

2019 MARKET SHARE

2018 MARKET SHARE

2017 MARKET SHARE

WRITTEN PREMIUMS

P/E

I/E

Progressive

18.2

17.2

15.8

63,399,000

69.4

69.1

GEICO

13.8

13.1

12.5

47,240,000

67.8

69.1

3

n

Amica

12.5

12.5

13.3

42,780,000

62.3

63.5

4

C

Allstate

10.5

10.8

11.2

36,039,000

56.6

55.3

5

C

Liberty Mutual

7.0

7.4

7.7

24,120,000

49.8

50.5

USAA

8.0

8.0

7.9

27,599,000

67.9

69.5

6 7

C

MetLife Auto

5.1

5.4

6.2

17,414,000

51.4

51.7

8

C

Nationwide

4.8

5.0

5.5

16,347,000

61.0

59.7

9

Mapfre

3.0

4.8

4.7

10,378,000

62.9

59.3

10

Travelers

2.8

2.6

2.6

9,528,000

56.9

56.7

11

American Family

2.3

-

-

8,669,000

68.4

67.1

State Farm

2.2

1.6

.5

7,453,000

116.0

120.1

13

Auto Club

2.2

-

-

7,423,000

70.4

71.9

14

Selective

1.4

1.9

2.1

4,667,000

53.6

51.7

15

Prov. Mutual

1.1

1.4

1.3

3,738,000

83.3

82.0

16

Ohio Mutual

1.1

1.2

1.3

3,731,000

74.9

76.1

17

Hartford

.5

.6

.7

1,722,000

59.4

59.2

18

Quincy Mutual

.5

.5

.6

1,600,000

76.2

75.6

19

NLC

.4

.4

.4

1,492,000

58.5

55.4

20

Tokio Marine

.4

-

-

1,485,000

66.7

66.3

12

n

2019

2018

2017

143,175,000

127,612,000

309,114,000

PAID TO EARNED LOSS RATIO:

64.0

61.8

61.4

INCURRED TO EARNED LOSS RATIO:

64.1

62.4

61.8

TOTAL WRITTEN PREMIUM

SPECIAL REPORT 5 Independent InsuranceIIARI Agents of Rhode Island Summer 2020 15

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT

RANK

RHODE ISLAND 2019 RESULTS HOMEOWNERS

COMPANY NAME

2019 MARKET SHARE

2018 MARKET SHARE

2017 MARKET SHARE

WRITTEN PREMIUMS

P/E

I/E

1

n

Amica

16.3

16.3

15.8

71,921,000

41.6

40.7

2

C

Allstate

12.1

12.4

12.8

53,314,000

36.1

33.2

3

C

Liberty Mutual

8.2

8.4

8.6

36,084,000

40.3

38.3

4

USAA

6.0

6.3

6.1

29,730,000

51.6

50.0

5

United Ins. Grp

6.2

7.3

7.4

27,278,000

53.9

60.5

Nationwide

5.8

6.1

6.4

25,583,000

53.0

54.2

7

Andover

5.2

4.7

4.7

22,866,000

60.9

66.

8

Heritage

4.8

4.4

4.3

21,260,000

34.2

40.7

9

American Family

4.5

-

-

19,722,000

42.3

35.5

MetLife Auto

3.9

4.3

4.5

17,283,000

31.9

24.7

11

Chubb

3.6

3.8

3.9

15,952,000

27.3

26.0

12

American Int’l Group

2.1

2.4

2.4

9,388,000

23.5

42.2

13

AAA

2.0

-

-

8,643,000

33.8

55.1

14

PURE Group

1.9

1.8

1.6

8,467,000

53.0

59.6

15

Prov. Mutual

1.9

2.1

2.3

8,159,000

38.6

40.5

16

Mapfre

1.7

3.4

3.8

7,389,000

53.8

47.5

17

NLC

1.7

1.7

1.8

7,264,000

47.3

41.1

18

Vermont Mutual

1.4

1.0

1.8

6,340,000

39.4

44.4

19

Travelers

1.4

1.4

1.5

6,218,000

31.5

36.7

20

Selective

1.3

1.5

1.6

5,744,000

33.1

27.0

6

10

C

C

2019 TOTAL WRITTEN PREMIUM

2018

440,193,000

419,521,000

2017 398,970,000

PAID TO EARNED LOSS RATIO:

42.2

55.8

39.3

INCURRED TO EARNED LOSS RATIO:

42.3

55.3

40.0

National Agency Co.

19.0

13.5

14.5

State and Regional

29.3

30.6

27.5

Direct Writers

51.7

55.9

58.0

MARKET SHARES

16

Summer 2020

IIARI SPECIAL REPORT

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6

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

20202018

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT

RHODE ISLAND 2019 RESULTS WORKERS COMPENSATION

RANK

COMPANY NAME

1

Beacon

52.5

55.9

56.1

120,457,000

53.0

55.1

2

Hartford

9.0

8.2

7.9

20,698,000

26.5

31.3

3

Travelers

5.6

5.3

5.7

12,776,000

33.2

18.2

4

Chubb

3.3

3.1

3.4

7,644,000

34.8

51.4

5

Zurich

3.2

3.0

3.6

7,410,000

74.0

117.4

6

Berkshire Hathaway

2.9

3.2

3.3

6,647,000

40.2

39.6

Liberty Mutual

2.7

2.7

1.7

6,153,000

94.8

96.3

8

MEMIC

2.3

2.0

1.7

5,199,000

35.0

58.2

9

Old Republic

1.8

-

-

4,047,000

61.1

83.8

10

AmTrust Group

1.5

1.8

2.1

3,498,000

74.7

107.8

11

American Int’l Group

1.5

1.5

1.2

3,489,000

28.4

37.6

12

Hanover

1.4

1.0

.9

3,103,000

35.0

72.7

13

Arch Ins.

1.0

.7

.8

2,389,000

41.1

120.6

14

W. R. Berkley

1.0

1.0

.9

2,179,000

57.8

65.2

15

Fairfax

.9

.9

.8

2,041,000

34.5

86.1

16

QBE

.8

.6

.5

1,910,000

30.1

54.4

17

CNA

.8

.7

.7

1,895,000

396.2

-48.8

18

EMC

.8

-

-

1,779,000

41.2

75.9

19

Great American

.7

.5

.6

1,651,000

39.8

48.3

20

Markel Corp.

.6

.8

.6

1,303,000

38.3

52.7

7

C

2019 MARKET SHARE

2018 MARKET SHARE

2017 MARKET SHARE

WRITTEN PREMIUMS

P/E

2019

2018

2017

229,321,000

219,800,000

250,355,000

PAID TO EARNED LOSS RATIO:

51.2

50.2

50.5

INCURRED TO EARNED LOSS RATIO:

55.0

58.3

52.2

TOTAL WRITTEN PREMIUM

I/E

SPECIAL REPORT 7 Independent InsuranceIIARI Agents of Rhode Island Summer 2020 17

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

MULTIPLE DISTRIBUTION

RHODE ISLAND 2019 RESULTS COMMERICAL AUTO LIABILITY

CAPTIVE/DIRECT

RANK

1

COMPANY NAME

2019 MARKET SHARE

2018 MARKET SHARE

2017 MARKET SHARE

WRITTEN PREMIUMS

P/E

I/E

Progressive

12.6

12.3

11.3

12,825,000

52.7

72.7

Travelers

8.4

9.1

11.0

8,571,000

46.1

72.8

Liberty Mutual

8.0

5.3

6.0

8,117,000

49.7

123.8

4

EMC

5.8

6.1

5.5

5,896,000

36.8

31.8

5

Selective

5.4

4.9

4.8

5,533,000

30.6

43.5

Nationwide

4.6

5.1

5.8

4,667,000

66.5

48.7

7

American Family

4.5

-

-

4,543,000

48.1

91.2

8

Tokio Marine

3.9

4.0

3.4

3,951,000

39.7

62.4

9

Arabella

3.6

3.1

2.6

3,705,000

59.4

32.2

10

Berkshire Hathaway

3.4

3.3

2.4

3,469,000

31.0

95.

11

Zurich

3.1

2.9

6.3

3,213,000

43.5

-.5

12

Ohio Mutual

2.9

3.3

3.3

2,960,000

70.5

51.7

13

National General

2.4

2.9

2.8

2,419,000

41.4

20.7

14

Hartford

2.3

2.1

2.0

2,328,000

47.7

66.6

15

Chubb

2.2

1.9

1.6

2,275,000

50.4

27.7

16

Encova

2.2

-

-

2,223,000

43.9

72.2

17

Hanover

2.1

2.1

2.0

2,156,000

24.6

35.5

18

W.R. Berkley

2.1

2.0

1.3

2,101,000

83.8

57.7

19

American Nat’l P&C

1.7

1.6

1.5

1,724,000

98.6

119.4

20

James River Group

1.5

-

-

1,538,000

24.6

91.1

C

2 3

6

C

C

2019

2018

2017

102,025,000

93,215,000

92,227,000

PAID TO EARNED LOSS RATIO:

49.3

43.8

55.0

INCURRED TO EARNED LOSS RATIO:

68.3

54.6

55.9

TOTAL WRITTEN PREMIUM

18

Summer 2020

IIARI SPECIAL REPORT

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8

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

20202018

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT

RHODE ISLAND 2019 RESULTS COMMERICAL AUTO PHYSICAL DAMAGE RANK

1

COMPANY NAME

2019 MARKET SHARE

2018 MARKET SHARE

2017 MARKET SHARE

WRITTEN PREMIUMS

P/E

I/E

Progressive

9.6

9.2

8.6

2,804,000

38.4

38.1

2

Travelers

8.2

8.3

7.8

2,409,000

45.0

50.7

3

Selective

7.6

7.2

6.8

2,225,000

60.7

64.5

Liberty Mutual

7.0

6.4

6.8

2,056,000

60.2

54.5

5

EMC

6.3

6.4

5.8

1,840,000

65.1

63.7

6

American Family

4.8

5.7

6.1

1,412,000

52.0

50.0

7

Zurich

4.9

3.2

5.3

1,422,000

43.3

46.1

Nationwide

4.8

5.7

6.1

1,412,000

52.0

50.0

9

Arabella

3.5

3.1

2.8

1,032,000

102.3

104.4

10

Ohio Mutual

3.4

3.7

3.7

986,000

57.3

56.6

11

Berkshire Hathaway

3.2

3.4

2.4

941,000

62.6

59.1

12

Tokio Marine

2.9

3.2

3.0

839,000

76.3

86.2

13

Encova

2.8

-

-

811,000

117.4

111.5

14

Hanover

2.6

2.5

2.6

764,000

32.0

31.8

15

National General

2.4

3.0

3.1

711,000

36.4

38.0

16

American Nat’l P & C

2.4

2.4

2.2

704,000

84.8

85.7

17

Hartford

2.3

2.1

2.0

671,000

56.3

60.8

18

Chubb

1.9

2.0

1.8

551,000

56.7

61.9

19

W.R. Berkley

1.8

1.7

-

521,000

66.9

61.7

20

Allstate

1.5

-

-

426,000

40.9

55.7

4

8

C

C

C

2019

2018

2017

29,259,000

25,943,000

24,628,000

PAID TO EARNED LOSS RATIO:

57.2

57.1

56.0

INCURRED TO EARNED LOSS RATIO:

57.4

58.8

55.4

TOTAL WRITTEN PREMIUM

SPECIAL REPORT 9 Independent InsuranceIIARI Agents of Rhode Island Summer 2020 19

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT

RANK

RHODE ISLAND 2019 RESULTS COMMERICAL MULTI-PERIL (LIABILITY) 2019 MARKET SHARE

2018 MARKET SHARE

Liberty Mutual

8.9

8.7

8.8

6,110,000

45.0

75.5

2

Travelers

8.4

8.8

8.6

5,821,000

31.8

31.5

3

American Family

8.3

-

-

5,734,000

36.2

188.8

4

Tokio Marine

8.2

8.2

7.4

5,647,000

13.6

105.6

Nationwide

8.0

8.8

11.6

5,521,000

43.0

23.7

6

Hartford

5.3

4.6

4.2

3,675,000

31.6

44.5

7

Arbella

4.2

3.7

-

2,931,000

31.3

48.2

8

Hanover

4.2

4.1

4.5

2,865,000

13.6

48.2

9

Ohio Mutual

3.4

1.4

3.7

2,373,000

60.2

42.0

10

Chubb

3.2

3.3

2.8

2,211,000

62.4

48.1

11

Encova

3.0

-

-

2,079,000

4.7

32.2

12

Vermont Mutual

2.8

2.5

2.5

1,926,000

3.2

45.

13

CNA

2.6

2.5

1.7

1,804,000

43.2

96.9

14

EMC

2.3

2.5

2.7

1,591,000

44.6

10.8

15

Quincy Mutual

1.5

1.6

2.0

1,012,000

28.5

40.8

Allstate

1.5

1.5

1.8

1,000,000

35.1

142.6

17

Andover

1.4

1.2

1.2

987,000

55.8

-1.4

18

Selective

1.4

1.5

1.8

947,000

73.0

64.9

19

Providence Mutual

1.4

1.5

1.3

932,000

17.9

43.2

20

Zurich

1.2

1.2

-

846,000

122.6

66.7

1

5

16

COMPANY NAME

C

C

C

WRITTEN PREMIUMS

P/E

2019

2018

2017

68,967,000

65,844,000

60,255,000

PAID TO EARNED LOSS RATIO:

40.0

39.5

42.6

INCURRED TO EARNED LOSS RATIO:

65.1

50.3

51.6

TOTAL WRITTEN PREMIUM

20

2017 MARKET SHARE

Summer 2020

IIARI SPECIAL REPORT

I/E

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10

20202018

SPECIAL REPORT

RHODE ISLAND MARKET SHARE ANALYSIS C n

MULTIPLE DISTRIBUTION CAPTIVE/DIRECT

RHODE ISLAND 2019 RESULTS COMMERICAL MULTI-PERIL (NON- LIABILITY)

RANK

COMPANY NAME

2019 MARKET SHARE

2018 MARKET SHARE

1 2

Travelers

9.2

9.1

8.8

9,860,000

20.8

13.7

Chubb

8.6

8.2

8.0

9,229,000

26.3

-1.8

Nationwide

7.8

8.6

10.1

8,368,000

36.8

17.3

Hartford

7.0

6.2

5.6

7,445,000

21.5

18.8

Liberty Mutual

5.5

6.0

6.6

5,848,000

25.7

40.8

6

Tokio Marine

5.0

4.9

5.1

5,346,000

37.1

32.5

7

Arbella

4.2

3.6

-

4,437,000

11.0

-1.0

Allstate

4.0

4.3

4.8

4,252,000

38.6

38.3

9

Vermont Mutual

3.6

3.2

3.2

3,819,000

20.5

29.3

10

Hanover

3.3

3.4

3.5

3,469,000

28.9

26.8

11

Greater NY

2.8

2.5

2.0

3,019,000

8.5

7.0

12

Zurich

2.4

2.5

1.9

2,597,000

6.8

.2

13

Encova

2.2

-

-

2,317,000

76.0

98.7

14

HAI Group

1.9

-

-

2,024,000

16.5

35.1

15

CNA

1.9

2.0

2.4

1,979,000

23.2

20.7

16

Great American

1.8

2.2

2.4

1,895,000

29.2

47.8

17

American Family

1.8

-

-

1,891,000

63.5

54.5

18

Providence Mutual

1.8

1.9

1.8

1,885,000

14.2

5.6

19

Ohio Mutual

1.7

1.9

2.1

1,837,000

20.0

11.1

20

Andover

1.7

-

-

1,837,000

47.4

64.8

3

C

4 5

8

C

C

2017 MARKET SHARE

WRITTEN PREMIUMS

2019

2018

2017

106,747,000

101,501,000

94,935,000

PAID TO EARNED LOSS RATIO:

32.8

64.1

32.5

INCURRED TO EARNED LOSS RATIO:

25.5

74.5

27.1

TOTAL WRITTEN PREMIUM

P/E

I/E

SPECIAL REPORT 11 Independent InsuranceIIARI Agents of Rhode Island Summer 2020 21

Thank you!

2020 IIARI PARTNERS

Without their continued support, the ability to deliver membership benefits would be significantly compromised. Please help us thank them for continuing to support us over the year.

22

Summer 2020

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Diamond

cal service we provide. We tegically located around of one of the country’s top Gold ose to home.

on.

Silver

Bronze Hospitality Insurance Group Johnson & Johnson, Inc. CMGA MAPFRE Insurance NLC Insurance Companies

Quincy Mutual Fire Insurance Co. Providence Mutual Fire Insurance Co. Vermont Mutual Insurance Group

Independent Insurance Agents of Rhode Island Summer 2020 23

Legal Corner

Wage Payment Mistakes COVID-19 Is Going to Get Your Company Sued for Wage Payment Mistakes Beginning in March of 2020, companies

everywhere were forced to comply with local shelter and closure orders, as well as alter their operations to respond to the negative economic fallout from COVID-19. Companies rushed to keep their businesses going by implementing new, essential and often untested business practices.

Common changes businesses made to their workforce included temporarily furloughing employees, reducing employee hours, reducing employee pay and having all or more employees work from home. While these four strategies have in many ways become part of the “new normal”, prior to COVID-19, many employers did not frequently implement these measures and as a result of their unfamiliarity with such strategies, made mistakes.

In particular, furloughs, hour and pay reductions and widespread work from home can result in unknowing wage and hour violations. These mistakes are particularly problematic given that both Rhode Island’s and Massachusetts’ wage laws carry with them automatic and mandatory treble damages. To make matters worse, under federal law, Rhode Island law and Massachusetts law, a successful employee in a wage and hour action is entitled to their attorney’s fees, which can be the largest portion of damages.

Finally, employers often implemented these practices on a widespread basis, making grounds for a class or collective action particularly fertile.

Thus, employers everywhere are well advised to stop double checking whether their floor tape is a full six feet apart out of fear of a lawsuit based upon virus spread and start double checking whether they have the appropriate protections in place against what is likely to become the latest wage and hour lawsuit trend.

1. Your Hourly Workers are Working (Too Much) from Home.

Exempt, salaried employees have been working from

24

Summer 2020

home for a long time and often access company emails and systems on their home equipment and phones. Prior to COVID-19, non-exempt, hourly employees often did not access communications from home, starting their day when they turned on their computer after arriving to work and ending their day when shutting down to catch their train home.

With COVID-19, employers everywhere started providing employees, regardless of their exempt status, the ability to work from home. Without the ability to see when these employees start and finish their day, a real opportunity to work outside of normal working hours arose. Compounding this problem is that employees may be more incentivized to work out of both the fear of losing their job and the lack of other things to do given the COVID-19 climate.

Unfortunately, non-exempt employees, unlike their exempt, salaried counterparts, must be paid time and a half for all hours worked over 40 hours per week. In addition, a fair amount of Rhode Island hourly employees must still be paid time and a half for work on Sunday (with a very small fraction still being subject to the Massachusetts blue laws). Importantly, this stands true even when the employer is not instructing the employees to work additional hours. In other words, if your employee is doing the work, you owe the time.

Overtime is not the only risk that has popped up from nonexempt employee work during this time.

Non-exempt employees are generally paid on an hourly basis. In many industries, employers dictate a set amount of hours the employee is expected to work, such as 35 hours per week, and expect employees to clock-in and clock-out accordingly. However, due to COVID-19, some employee’s hours were cut back to a part-time basis. This practice was particularly common in both Rhode Island and Massachusetts, because employers could cut an employee’s pay and time

The Anchor

in a manner that made their employees eligible for a small amount of state unemployment benefits, in turn automatically qualifying the employee for the full $600 federal unemployment benefit. Thus, the part-time work, part-time unemployment benefit was a classic “win-win” – many employees could net more compensation while only a fraction of the compensation was coming from the employer.

Unfortunately, employers who knew employees were getting the same or more in compensation were more likely to expect or allow extra work, as it did not seem unfair to have the employee work more than the newly lowered hours target. Further, employees were often more willing to work beyond their new, lower designated hourly target as they were netting similar or more compensation.

2. Your Exempt Employees are No Longer Exempt Given that COVID-19 sometimes resulted in a lack of work and the desire to save expenses, along with the unemployment benefit “win-win” discussed previously, wage cuts - with or without hours cuts - became much more commonplace. These wage cuts particularly effected salaried, exempt employees. In the COVID-19 focused world, some employers forgot that on January 1, 2020, the salary basis test for the administrative, professional and executive exemptions of the Fair Labor Standards Act (“FLSA”) – the exemptions which the vast

majority of employers rely when classifying an employee as exempt – increased to an annualized salary of $35,568 per year. When pay cuts resulted in a lower salary being paid, such employees should have been converted to hourly. Importantly, there is no “part time” salary basis test. In other words, a pre-COVID salary of $65,000 per year, designed to compensate an employee for 40 hours of work, that is cut to $32,500 for half the work, is still illegal under the FLSA. Thus, some employers unknowing lost the exempt status for these part-time salaried employees, resulting in the failure to collect time sheets and pay based upon hours worked.

3. Your Furloughed Employees are Working A furloughed employee is essentially an employee who remains on payroll on an unpaid leave of absence. Prior to COVID-19, furloughs would happen during plant closures or rare other events, but most employers did not commonly implement furloughs.

An absolutely essential part of any furlough is that employees cannot perform work, as they are not being paid.

However, furloughed employees during COVID-19 are expecting to be called back by their employers and still may have little other job opportunities or recreational activities available to them to pass the

Suzanne Elovecky Counsel, Partridge Snow & Hahn

Alicia J. Samolis Partner, Partridge Snow & Hahn

time on a furlough. In addition, more so than any other time, employers allowed such employees to keep their company laptops, phones and other equipment. The reason for this otherwise odd decision stemmed from the fact that collecting such equipment may have been impractical during shelter/closure orders, the employer may have had little use for the equipment during the furlough and the decision may have been viewed as more generous to the employees. Even more unprecedented was that some employers also allowed the furloughed employees to remain on company emails and log into company systems despite being on furlough. Employers may have done this given they did not know when the employee would be called back and may have been unprepared to cut off access.

Employees may have also requested the access to use personal accounts set up through the company email with more ease.

•

Call your hourly workers back to physically work in the office as soon as possible and practicable and discontinue access to emails and company systems outside of the office.

•

Train supervisors not to call, text or email employees off hours. Before COVID-19, an executive may have emailed her assistant at 7:30pm the night before, so her assistant saw the email first thing in the morning when they came in. But now that her assistant is working from home, they may log onto their computer before bed and read the email (thus performing work).

If that assistant is not recording that extra time, there is real exposure.

•

Communicate clear expectations that all nonexempt employees must receive prior approval prior to working above their allotted hours through a written policy and discipline employees that work beyond those hours.

What To Do Now

•

There are several things your Company should do now to reduce the likelihood of a successful lawsuit by employees who have completed work without pay:

Train managers to report emails, phone calls and text messages received by non-exempt employees on days and hours the employees should not be working or any furloughed employee.

•

Ask IT to run reports to see how often nonexempt employees and furloughed employees (if access continues during furloughs) are logging in to company systems or sending work emails.

Be sure your company has the proper policy explaining there is no privacy rights on such systems (and implement a policy if you do not have one).

•

Require furloughed employees to set out of office messages indicating they are on furlough and have their emails forwarded to someone

The potential pitfall with this arrangement is that either employers or the employees are tempted to have the employees continue doing work. Employees may be doing this given they are being compensated through unemployment, are willing and eager to “pitch in” in hopes of elevating chances of being called back or are bored. Or it simply may be too hard to ignore a work email when they see it come in. Executive employees and high-level employees are even more likely to work for free during furlough. Unfortunately, unless the tasks are truly de minimis (i.e., only a few minutes every so often) these tasks are working time that must be paid. The receipt of unemployment insurance funds in no way mitigates the wage and hour violation risk or counts as wages. Again, with all working time laws, if the work is being done, even without instruction, it must be paid.

•

Require hourly workers to report their actual hours of work versus assuming they are working certain hours. Employees will have a harder time later claiming they were working unexpected hours if they actively submit their time records to the contrary. If your hourly employees did not do that previously, ask them to review your records and verify the records are correct.

Summer 2020

26

•

Implement mandatory, individual arbitration agreements for employee claims, including specifically wage and hour claims.

Big Picture

else. Consider cutting off work emails and access to company property for furloughed employees and collecting phones and computers.

•

Prohibit any work from being performed during a furlough in your furlough notice (and send a reminder to those employees already furloughed).

While you cannot go back in time, you can fix problems going forward. In addition, you can get the documentation regarding past work now that could be helpful in a future lawsuit. Act fast, as some of these employees may have to be terminated in the coming months, especially as PPP loans run out. As employee terminations increase, the risk of lawsuits also increases. Finally, consult with your employment attorney today to determine the best way to address any possible past and future wage and hour violations that may have occurred as a result of the transitions forced by the COVID-19 pandemic, and to find solutions that reduce any risk for your company.

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When you're looking for technology solutions for your agency, turn to the Big "I" Agents Council for Technology.

The industry's leading technology experts provide blueprints on disaster planning, cybersecurity, customer experience, and other emerging trends to help your agency. Look to ACT when you are looking for best practices or if you want to influence the industry's technology direction, join an ACT meeting or virtual workgroup.

Disaster Plan

Prepare your employees, office, data, systems and clients.

Disasters, whether natural or otherwise can hit any time and without notice. The best line of defense is offense -prepare your employees, physical office, data, systems, and clients with procedures to implement when disaster strikes. Be prepared to serve without power, phone, internet and even without a physical office location.

A good disaster plan allows you to focus on recovery and service, not searching for critical data or piecing together tools to work. Make sure the final document is easy to find by everyone on staff, from any location.

ADA & Accessibility Resource Page

ADA Website Compliance Background, Risks & Penalties, Resources.

The Americans with Disabilities Act is a civil rights law that prohibits discrimination against individuals with disabilities in all areas of life. Take reasonable steps towards compliance. Small businesses must take reasonable efforts toward compliance. ** There is no one-size-fits-all solution **

Cyber Guide 2.0

An online and print cyber resource for agencies.

Handling sensitive information is now one of the most critical responsibilities faced by the modern insurance agency.

Independent insurance agents and brokers must properly collect and protect sensitive client information every day. This means complying with state and federal regulations as well as adhering to customer service best practice standards.

Every state now has data breach response laws, and in the future, each state's regulations may vary based on their insurance department's interpretations. The Gramm-Leach-Bliley Act ('GLBA') covers all other models and state laws, and the new National Association of Insurance Commissioners (NAIC) Model, which several states have already adopted, and many others are reviewing.

Visit: www.independentagent.com/ACT

HR CORNER

Updated Covid-19 Employee Handbooks This is a continuing article in the series of human

They believe that by putting forth a shared approach to addressing workplace issues, they have the best potential to create a harmonious, fair, employer supportive workplace.

Based on my most recent sample in talking with various Independent Insurance Agents across the state, I am concerned that we do not have current handbooks in place for members of our workforces particularly as we re-open our businesses with added COVID-19 requirements. In addition, as you are aware over time, things change like new federal, state and local labor regulations. The policies of your organization change. There is employee turnover in the organization. We need to be on top of our business; if we are not, it could be expensive to fix.

Employers also use the policies in an Employee Handbook to provide the roadmap to ethical and legal treatment of employees. They protect themselves from lawsuits, such as harassment claims, wrongful termination claims, and discrimination claims. Employee Handbook address behaviors that will warrant disciplinary action up to and including termination in their workplace.

resource articles for the “Independent Agent�. My goal is to bring value to your organization in the accomplishment of the Essentials of Human Resources. In past articles, we have dealt with a variety of topics.

What does an Employee Handbook do for you?

An Employee Handbook is a compilation of the policies, procedures, working conditions, safety conditions, compensation and benefits clarification, and behavioral expectations that guide employee actions in a particular workplace. In a handbook, these policies and procedures range from how to access your employee personnel files to your open-door policy, your promotion policy to compliance like the American Disabilities Act, Fair Labor Standards Act and Equal Employment Opportunity Commission policies.

The new COVID-19 requirements definitely impact the organization particularly in the workplace safety and employee benefit areas.

Employee Handbooks need to be updated as a whole every two years and communicated / distributed to employees. During the interim use a page revision system. Always make sure that you are communicating and updating employees on changes effectively and efficiently.

If you have a question or need clarification, please contact Dave Nichols or a Human Resource or legal professional.

The handbook generally includes information about the company, a welcome from the President or Owner, mission, values statement, strategic goals, commitment to the workforce, non-compete and confidentiality statements. In addition, topics like attendance, closings, payroll, company property are discussed.

Employee Handbooks if properly done, maintained and executed are a great communication in managing expectations for both the employer and the workforce.

How do Employers Use an Employee Handbook?

Employers use Employee Handbooks to provide a consistent set of policies and procedures. They also use handbooks to describe the working conditions and the workplace behavior and contributions they expect from employees.

Dave Nichols is the principal of a human resource management business, Quality Transitions, Inc. located in Charlestown RI. He has 25 years of experience in the field and also retired from the U.S. Army as a Lieutenant Colonel.

If you are interested in learning more, please visit his website at www.qualitytransitions.net.

Dave Nichols Quality Transitions, Inc.

Worker’s Compensation Corner

What’s Going On? COVID 19 CHALLENGES FACING WORKER’S COMPENSATION In my last two columns, I have written on the

coronavirus and its effect on the workers’ compensation system in Rhode Island. While workers’ comp, like most everything else, remains hostage to the pandemic, our workers’ comp system continues to function pretty well.

I will focus my update on workers’ compensation in Rhode Island.

The General Assembly is presently considering three bills where workers’ compensation is a primary topic.

After meeting virtually, the Advisory Council made recommendations to the General Assembly in the form of an “omnibus bill”. (S 2915, H 8085). As of this writing, both the Senate and the House have passed both and they will be sent to the Governor for consideration shortly.

The recommended changes are minor. One section amends the Uninsured Protection Fund to eliminate ambiguities, and the other section amends the treating physician affidavit reporting requirements. Both sections will become law upon passage.

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Summer 2020

The General Assembly is also considering legislation to create a presumption of compensability, for certain job classes, in the event an employee contracts COVID-19. (H8066).

This bill has not been scheduled or heard in Committee. It contains many inconsistencies and ambiguities that need clarification. If passed, this bill would add significant expense to the cost of doing business in Rhode Island. It is important to remember that COVID-19 claims are compensable in Rhode Island if contraction of the virus arose out of and in the course of employment.

The other bill pending would permit the Division of Motor Vehicles to suspend the registration of motor carriers upon receipt of notice from the Department of Labor and Training that the carrier has not secured workers compensation insurance.

(H7220). This bill was recommended for passage by the Corporations Committee and is not yet scheduled for a vote by the full House.

The Anchor

At its final meeting of the year, the Workers’ Compensation Advisory Council charged its task forces with continuing to study the issues of specific compensation and hearing loss in the workers’ compensation system. In addition, the Department of Labor and Training has suggested that the method by which the indemnity benefit rate is computed from the average weekly wage needs revision. Changes in the Internal Revenue Code have made the Rhode Island benefit formula almost unworkable. This is being studied as well. Finally, there was talk about changing the language in the waiver forms. The Association’s Government Affairs Committee will be part of this process.

The Department of Labor and Training’s misclassification task force has been on hiatus during the pandemic. Recommendations for new rules on Stop Work Orders and out of state coverage were recommended and approved but have not yet been published. The Department and the Attorney General are taking an aggressive stance on misclassification and lack of insurance and recently publicized a prosecution in the Superior Court on underreporting of payroll. The prudent agent will remind their customer to continue to work in good faith to ensure proper coverage and reporting of job classification and payroll.

Beacon looks forward to working with you in this regard.

“Changes in the Internal Revenue Code have made the Rhode Island benefit formula almost unworkable. ”

the pandemic continues to cause some delay and resulting expense to the system, the Court system in our state continues to function at a very high level.

To conclude, the Rhode Island workers’ compensation system continues to function very well. Please stay engaged and involved with your Association, your clients and your insurance carriers as our economy renews. As always, we at Beacon remain available to you with questions and ideas on all things workers’ comp.

The pandemic is not in the way of most matters being heard at the Workers’ Compensation Court. Trials and live matters are now heard in the afternoon at the Court. Depositions of injured workers, witnesses and experts are now being done, many times virtually. While

Mike Lynch has more than 30 years of experience in workers’ compensation law.

Prior to Beacon, Mike was a partner at Higgins, Cavanagh & Cooney where he practiced primarily in the area of workers’ compensation defense.

Michael Lynch, Vice-President, Legal, Beacon Mutual

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Summer 2020

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Summer 2020

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GOVERNMENT AFFAIRS CORNER

Minimal Impact of Legislation IMPACT OF INSURANCE REGULATION IN THIS PANDEMIC ELECTION YEAR IS MINIMAL. With the world wide pandemic still

raging, the government affairs world is likewise in unchartered waters. Normally the Anchor summer edition article would be about which bills passed and which bills didn’t pass. This year the General Assembly session was on recess from March until June when they had a session to pass a supplemental budget. In July at the time of the writing of this article there are a couple of more sessions planned which will deal with a few bills.

The plan is for the General Assembly to reconvene again in August to deal with the state budget. The hope is that the Congress will either pass another stimulus package which would include money to help the states with their budgets or loosen the rules of the earlier package and allow the states to use the money already provided (and not yet spent) on their budgets.

Some of the few bills that look like they’ll be dealt with in a July session are putting Rhode Island’s name change on the November ballot, a firefighter’s

cancer bill, mail ballot legislation, local bond authorization bills and requiring police chiefs from the home town of a gun buyer to be notified. I’m sure when the General Assembly reconvenes in August a few more bills will be added.

At this point the only property and casualty bill that looks like it will pass will be the annual “omnibus” workers compensation legislation that comes from the Workers Compensation Advisory Council. The Council annually reviews different issues and after getting a consensus recommends legislation which is referred to as the “omnibus” bill. The Council is made of 16 members including representatives of labor, business, workers compensation judges, legislators and state department directors. David White of Butler & Messier agency usually attends the meetings to keep us informed of what is going on.

The omnibus bill this year is nothing earth shattering, it deals with the legal process of claims in the uninsured employer fund and the timing of medical reports required for injured workers in the regular claims process.

Legislation that was filed requiring insurers to pay business interruption claims caused by the pandemic doesn’t look like it has any chance of passage as the United States Constitution protects contracts. Similar legislation in about a dozen other states hasn’t gone anywhere either.

In conclusion I’d say that, as usual, there’s more bad bills out there than helpful bills so a year in which nothing passes is not such a bad thing.

Robert J. Pettinicchi, Chief Lending Ernest Shaghalian, officer, Jr., CPCU, AAI Independent Insurance Agents of Rhode Island Summer 2020 33 Insurbanc Affairs Committee Chairman Government

MARKETING CORNER

Marketing in the COVID Era How do you market your services

in an atmosphere of social distancing, in which personal touch is so essential to what you do best? Your business is not transactional, though your competitors would like it to be, but instead is based on relationships. Your major differentiator as independent agents is the invaluable experience you bring to your clients and the enduring bonds you have established with your communities.

Now that most of our contacts today are through Zoom or other virtual meeting platforms, what can we do to continue to make better connections with our clients and prospects?

Here are some steps you can take to continue to build strong relationships with your clients.

Tell your story in advance, and save yourself some time For many businesses faced with interviews and Zoom calls, why not create and use a video to tell your story? In addition to saving some time and allowing you to get right to the point in your

interview, you also will ensure consistency in your messaging. You can provide all those standard items, like how long you have been in your position, when your agency was founded, and what your areas of specialties are. This video can be sent in advance of your Zoom call to provide background to the person you will be meeting with to address all those introductory items. This video also can be attached to your social media profiles and on the bio page of your website.

Showcase your expertise in words and video You’re an expert. So now it’s time to illustrate just how much you know. Write about it in a blog and record yourself, turning your blog into a vlog. People want to hear from you and learn about your expertise.

You have a captive audience who is at home more and in front of their computers, so share with them what you know about insurance, loss prevention, risk management, and overall business. To develop your own blog, you can write an article on LinkedIn and then share it with your network or establish a simple WordPress blog and integrate it with your website. To do your own vlog, you just need a selfie stand, simple microphone, and light to rig your iPhone or Android phone camera. You can use simple editing software to edit your video and upload it to your Facebook or your own YouTube channel.

Help your clients tell their stories We are all in this together, and anything you can do to help get the word out about your clients will be appreciated. Once you master your own blogging and vlogging, why not extend it to your clients? You can start a monthly column about local clients who

John Houle JH Communications

John Houle is the president of JH Communications, a marketing-communications agency in Providence RI specializing in the insurance industry. He can be reached at 401.831.6123 or at john@jhcom.net.

Summer 2020

34

are making a difference and what they are doing to navigate through these trying times. Just promote it through your social channels to drive people back to your blog and website. You may just inspire someone else to make a difference. You also can interview your clients through Zoom calls and easily record their responses as well as your questions.

You can use simple editing software and apps to edit your own spots.

You’re just tapping your potential with your website When was the last time you read your website content or updated the pictures? First, make sure you are using copyrighted photos and that they haven’t been lifted from the Internet. There is software that scans websites to find violators for lawsuits. In addition, make sure your website is American Disabilities Act compliant with

photos and videos properly tagged with names and descriptions.

Once you’ve taken care of your website, you can make it a more effective communications tool. House all your videos on your website and build up an archive of both videos and articles; this will make your website a central repository of information. You can also feature a “Community” or “Resources” page that features client profiles, services, discounts, and offers. What better way to facilitate business among the community than a website that promotes the goods and services of the local businesses you represent.

If we focus on doing more business locally and utilizing our local contacts, we may just help each other out a little more during these hard times.

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Independent Insurance Agents of Rhode Island Summer 2020 35

FALL GOLF

ANNUAL OUTING Registration is open to all. We welcome all members, their families and friends to join us for this special outing.

WHEN WHERE TIME PRICE

Tuesday, October 6 Kirkbrae Country Club Lincoln, RI 11:00 am Registration/Box Lunch 12:30 pm Shotgun $155 Per Person/ $600 for Pre-Arranged Foursome

STOCK THE BAR

RAFFLE

Buy a ticket for $20 or donate a bottle!

SPONSORSHIPS AVAILABLE! Show your support for IIARI and the Emerging Leaders by sponsoring a tee sign or tent.

Contact Marcia Berthiaume at 401-732-2400 or email marcia.berthiaume@iiari.com.

TEE SIGNS TEE TENTS

$100 $200

RHODE ISLAND EMERGING LEADERS

More than halfway through 2020

As we sailed past the halfway point of 2020 I don’t think

anyone in their right mind could have predicted what we have An Event Horizon

gone through these past few months. The world is certainly a different place now and although I yearn for a return to normalcy, no one really knows what the new normal is or will be.

As the chairperson of the Emerging Leader’s it certainly has been a trying year. We had a great sold-out kickoff event in February but then the world came to a halt and we have tried to stay relevant and top of mind by doing a Zoom networking scavenger hunt and by hosting an online CE Day. Both events were successful but nothing can match the in-person networking and educational opportunities that we had been accustomed to providing for our members.

So in these trying times I continually find myself asking, what happens next?? How do we bounce back to some kind of normalcy and what does that even mean. On a micro level where do the Emerging Leaders stand and how can we as independent agents and members of the community help the recovery? I once heard a quote that stuck with me and it was simply “The comeback is always greater than the setback” and that holds true now. I am looking forward to us as an industry bouncing back and maintaining our place in the community. We will be at the forefront of any recovery effort and will be hand in hand with our clients, friends, and colleagues as everyone rights the ship.

In closing I am grateful for the support of the board members, IIARI leadership, and my fellow Emerging Leaders committee members. We will all get through this and we have some excellent events planned including the fall golf outing in October. I look forward to seeing everyone soon under “normal” circumstance but in the meantime I hope everyone stays safe and healthy.

“The comeback is always greater than the setback.”

Timothy Mailloux Emerging Leaders Chair

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Summer 2020

The Anchor IIARI 2400 Post Road Warwick, RI 02886

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