GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | MAY 2020
Celebrating Those Who Give
Vermont Insurance Agents Association is a statewide trade association representing nearly 100 independent insurance agencies in Vermont, with more than 900 employees. VIAA member independent insurance agents represent more than one insurance company, and as a result, can offer clients a wider choice of auto, home, business, life and employee benefits.t
Green Mountain Agent is a publication of
CONTENT ________________ May 2020
04 Letter from the President
600 Blair Park Road, Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org
06 Member Feature: Rodney Putnum 09 Carrier Feature: Union Mutual
VIAA Officers
12 NewsFlash
President Alan K. Kinney
14 Feature: How to Declare an End to Your Workday when You Don't Leave Your House
Vice President Dan Rodliff Secretary/Treasurer Michael Barrett
16 Member Feature: Essex Agency
National Director Ron Bixby
18 On the Hill
Directors
24 E&O Corner
Chip Ams Erin Odell, CIC Paul Plunkett Jessica Fleury Ex-Officio
27 Feature: A Grief Therapist on Navigating Uncertainty, Vulnerability & Loss
Staff
32 Feature: Big 'I' Partners Help Communities in Need
Executive Director Mary Eversole mary@viaa.org
35 Commentary 39 Agency & Company News
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LETTER FROM THE PRESIDENT ______________________________ May 2020
There is lots of good news! That’s right - GOOD NEWS! In this edition of the magazine, we’re not going to push more statistics or numbers at you. We are going to share what good has come from this pandemic. We’re going to show the good that you are doing to help your communities. We’re going to show the good our carriers are doing in helping us and our customers. Why? Because this is the true story of who we are as independent agents. We help people in what can be their worst of times – an auto accident, a house fire or flooding and sometimes, even worse. We’re also going to share valuable information on the changing environment and how to carry on and do the great work we always do, even in the midst of a pandemic. A sincere thank goes out to our company partners for their tremendous work on helping consumers with reductions in auto premiums and the support of the independent agency system. Vermonters will receive $15 million back from insurers. Mary Eversole has been working tirelessly to retool our education courses (and that’s no easy feat!) and we are now presenting CE Classes on Zoom! We have also arranged a free E&O class with our attorneys on May 21 for VIAA Members, registration is now open. Register here.
We’re changing and adapting to what’s happening and we’re doing a lot of good! Let’s celebrate that and remember why we remain independent agents.
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Alan Kinney VIAA President
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member feature
Rodney Putnam, Williston Insurance
member feature
Rodney Putnam Williston Insurance Acoustic Rodney: Live from “The Basement� Thursdays at 7 pm you will find Rodney live on Facebook to play music from his basement, which he would normally do at local pub! Besides treating listeners to great music he has taken it a step further. Rodney has created a virtual tip jar. During his broadcasts he asks his virtual audience to donate to local businesses or organizations in need. To date, he has raised $340 for The Blackback Pub in Waterbury that is currently closed and place where he frequently plays. (By the way, did you know that the Blackback Pub is owned by a former VIAA Member?) He also raised $225 for the Little Free Pantry in Hinesburg. Mary Eversole, Executive Director, VIAA is often in the audience. Go to Facebook and like the Acoustic Rodney page. So tune in on Thursday and support Rodney in his work to give back to his community!
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CARRIER FEATURE Neighbors Helping Neighbors During Pandemic Union Mutual was founded in on the premise of neighbors helping neighbors. To continue their legacy, the carrier has been purchasing 100 meals/week from two local restaurants: Pinky’s on State and Langdon Street Tavern. The two restaurants used the donation of Union Mutual to provide for the local needs of the homeless, nursing homes and healthcare workers in and around central Vermont. The contribution of Union Mutual also started a stream of donations from others. National Life Group and Northfield Savings Bank graciously, enthusiastically and generously partnered with Union Mutual and agreed to double their purchases, resulting in an additional 300 meals per week to central Vermont neighbors. Now other businesses have signed on each week, expanding the project to reach over 2,500 meals donated over a 4-week span. In mid-April, Union Mutual began purchasing 50 breakfast sandwiches each morning from Gunner Brook Store & Deli in Barre, which were then donated to various departments throughout the Central Vermont Medical Center campus. The Company has also made financial contributions to food banks in all seven states that they write business in, both as Union Mutual and on behalf of our Agency Council and Diamond Partner member agencies. Thank you Union Mutual for showing how important it is to take care of our neighbors. www.viaa.org
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NEWSFLASH Remotely Proctored Insurance Licensing Exams now available in Vermont The Vermont Department of Financial Regulation and Prometric are pleased to announce the availability of the Vermont Insurance exams via Remotely Proctored testing using Prometric’s ProProctor™ application. You may schedule remotely proctored for your Vermont Insurance exams. To schedule, candidates should the contact the Prometric Contact Center using the state’s toll-free number 800.868.6113 between 8 a.m. and 9 p.m. (Eastern time), Monday through Friday. At the end of the call, you will receive a confirmation number for your appointment and will receive an email confirmation with instructions. Record and keep this confirmation number for your records as you will need it to launch your exam. Please go to https://www.prometric.com/vermont/insurance for more information.
The Department of Financial Regulation Approves Additional Plans to Refund Auto Insurance Premiums, Saving Vermonters over $14 Million Governor Phil Scott and Department of Financial Regulation (DFR) Commissioner Michael Pieciak today announced that more than forty additional auto insurance companies have filed plans to return premiums or reduce their rates for Vermont policyholders. DFR has moved quickly to approve these plans which amount to over $14.6 million in savings for Vermonters to date. All Vermont-based auto insurance companies, along with most major out-of-state insurers, have developed refund plans for Vermonters, which combined, represent approximately 90% of all personal auto policies in Vermont. Each of these insurers has seen a reduction in claims as Vermonters do their part to stay home to comply with the Governor’s Stay Home, Stay Safe directive. The premium savings will vary depending on the company; however, most Vermonters can expect to receive a credit on their auto insurance statement, a refund check or a reduced rate when renewing their policy. At this time, most relief will be in the range of 15-20% for a period of two or three months. Two Vermont-based insurers, Vermont Mutual and the Cooperative Insurance Company, will also provide auto-insurance customers with the choice to donate their refund to one of several charities assisting with local COVID-19 relief efforts. A third Vermont-based insurer, Union Mutual, has partnered with local businesses to provide food for the homeless, as well as for medical workers and nursing home staff members in Vermont. Commissioner Pieciak continues to encourage insurance companies to determine whether Vermonters are overpaying and promptly file a plan with DFR if that is the case. For a list of insurance companies with DFRapproved premium savings plans, please visit https://dfr.vermont.gov/document/dfr-approves-severalinsurer-plans-refund-auto-insurance-premiums. DFR’s approval also provides flexibility to further reduce premiums if similar driving habits continue. As the pandemic evolves, DFR will continue to monitor insurers’ experience and finances to ensure that Vermonters’ rates are not excessive compared to changing risks. 12
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NEWSFLASH DFR Approves Allstate’s Plan to Refund Auto Insurance Premiums during Stay-Home Stay-Safe Order Commissioner Michael Pieciak today announced the approval of a plan submitted by Allstate and its affiliate insurance companies to reduce their auto insurance premiums for Vermont policyholders by approximately 15% due to reduced driving during the COVID-19 pandemic. This plan will amount to over $500,000 in savings for Vermonters. As Vermonters do their part to stay home to protect their families, friends, colleagues, and others from the virus, and to comply with the Governor’s Stay Home, Stay Safe order, the frequency of auto accidents has declined significantly. With claims dropping, the Department quickly approved Allstate’s plan to return money to their policyholders. “I am pleased to see auto insurers like Allstate move quickly to acknowledge their reduced risk and to ensure their premiums are not excessive and Vermont consumers are treated fairly,” said Commissioner Pieciak. The payback will equal 15% of each customer’s March and April premiums. For Vermont, this means that Allstate policyholders will receive a total of over $500,000. The Commissioner is encouraging other insurers to follow suit. “This is a good first step, however, almost every auto insurer is benefiting from a similar reduction in claims as a result of the significant reduction in driving during the COVID-19 pandemic,” said Commissioner Pieciak. “Every insurer should begin developing plans to make certain that Vermonters are not overpaying when it comes to their auto insurance.” The Department’s approval also provides flexibility if the Stay Home, Stay Safe order is extended, providing the option to continue reducing premiums.
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WORKING FROM HOME
HOW TO DECLARE AN END TO YOUR WORKDAY WHEN YOU DON’T LEAVE YOUR HOUSE By Danielle Sinay, Writer at Thrive Global Now that, in many places, the coronavirus pandemic has instituted a “new normal,” one major resulting challenge for lots of employees has been the shift from working in an office to working from home. A permeable boundary between your house and your office life can make it more likely you’ll work beyond the hours you typically would at the office, putting people at greater risk of overwork. Working extra hours is linked to increased symptoms of depression, according to a longitudinal study from 2019 from the Journal of Epidemiology and Community Health. These symptoms can be alleviated by implementing consistent routines, though. Normalcy is beneficial for our mental wellbeing and can help relieve anxiety, according to research in Organizational Behavior and Human Decision Processes. Those researchers also found that completing a ritual or routine is even more helpful in curtailing anxious thoughts than trying to calm yourself down. Clearly, we must try our best to stick to routines as much as possible, and form clear boundaries between the office and home (even while working remotely) in order to maintain optimal mental well-being. However, 80 percent of people say that they’re worried about changes to their existing routines and structures in light of the coronavirus pandemic, according to a Thrive Global survey of 5,000 respondents around coronavirus pain points. If you feel similarly, don’t worry: Implementing specific work hours while working remotely is 14
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possible. These Microsteps — small, sciencebacked actions you can start taking immediately to build habits that significantly improve your life — will help: Each Monday morning, put your working hours on your calendar so your coworkers know when you’re available. Giving them visibility into your schedule will help avoid meetings that are scheduled when you have to feed your kids or have logged off for the night. At the end of each remote workday, take a moment to check in with yourself. Are you feeling more stressed than normal? It can be easy to miss your signs of stress when you’re deeply focused on work all day, without pause. Use this time to take a few breaths and reset. At the end of every day, take a minute to think about what you accomplished today. If you’re not used to working on your own, it can be more challenging to notice your progress. Use this time to celebrate your small wins.
How to Declare an End to Your Workday Continued
Make a point of logging off from your remote work at the same time you would typically leave the office. It’s easy to let your workday bleed longer when you don’t have your usual commute home, but it’s important to build in time at night to rest and recharge so you can work sustainably. Working From Home in the New Normal is a data-driven storytelling initiative from SAP and Thrive Global, bringing together insights powered by the Qualtrics Remote Work Pulse with actionable Microsteps and stories from Thrive to help you navigate working from home. Visit daily for the latest data and stories to help improve your focus, prioritization, and well-being. Thrive Global is helping the world’s leading enterprises unlock their people’s potential and create sustainable peak performance cultures. Visit their website at www.thriveglobal.com.
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member feature Essex Agency
member feature
The Essex Agency Essex Kids Eat! The Essex Agency, an agency housed right on main street in Essex, had joined forced with local restaurant Railroad & Main to provide meals to their community. The agency contributed $5,000 and Railroad and Main provided the food and labor at cost. With these contributions, they anticipate providing at least 1,000 meals for their community. With schools out of session in the area, it was clear that there were many children who might need a meal that was previously provided at school. The Agency and restaurant decided to focus first on children in their community. It then grew into feeding whoever needed a meal, including tired healthcare workers, families under stress and any one that just needed a boost during this hard time. Individuals can request meals online or by calling the restaurant, making it easy for anyone to get a meal Thank you Essex Agency, for taking lead in showing your community that independent agents to help whenever needed!
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ON THE HILL: Congressional Letters Push Back Against Business Interruption Proposals
Following President Trump’s remarks two weeks ago, there is growing congressional focus on business interruption insurance and whether it covers claims from COVID-19. This week, several letters on business interruption and its potential impacts were sent to the administration and Congress detailing the counterproductive and dangerous nature of pursuing retroactive business interruption insurance.
$255-$431 billion in claims per month, according to one industry estimate. These payments would require using the reserves of other policyholders for protection against risks such as fire, wind, hail, tornados and hurricanes. Additionally, because these reserves will drain rapidly due to the size and scope of losses, this would put insurers’ solvency at risk and destabilize financial markets.”
Last week, 22 U.S. House Committee on Financial Services Republicans, led by Rep. Steve Stivers (R-OH), sent President Trump a letter opposing retroactive business interruption insurance coverage, detailing the harm such proposals would create for both consumers and the insurance market.
In addition to the Rep. Stivers’ letter, Rep. Ted Budd (R-NC) and 12 other members of the Republican House Freedom Caucus sent a letter to the White House opposing retroactive business interruption coverage, detailing the many constitutional issues with retroactively changing legal contracts. The letter notes that “efforts by Congress or state legislatures to retroactively amend BI policies will engender unprecedented levels of legal challenges while driving up the cost of insurance coverage of all kinds.”
Of note, the letter states that “should lawmakers retroactively void exclusions, this would force insurers to pay claims they never priced or collected premiums for and would cost between 18
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On the Hill Continued Finally, a third letter was sent last week to Speaker Nancy Pelosi (D-CA) and Senate Majority Leader Mitch McConnell (R-KY) from numerous conservative groups including Americans for Tax Reform, the Center for Freedom and Prosperity, and Americans for Prosperity. The letter warns them of impending lawsuits coming from the trial lawyers and how such lawsuits would only hurt vital industries that support our economy at this time. Regarding business interruption, any retroactive business interruption proposals would be litigated in court for many years to come and would only end up hurting consumers. This letter was also noted in a Wall Street Journal article that ran over the weekend.
The Big “I” will continue to work with the insurance industry, policyholders, the Trump administration and Congress on the Payment Protection Program, the Recovery Fund, and other practical solutions that will help businesses of all types survive the current crisis. Written by Joseph Cortina, Big “I” director, federal government affairs.
C E O & R O N ER
Timely, Accurate and Complete Claim Reporting: Ensure that Your Agency is Prepared to Handle Incoming COVID-19-related Claims By Thomas Casella, JD, MBA, SCLA Senior Risk Management Specialist, Utica National Insurance Group
In the midst of the COVID-19 pandemic, claims for Business Interruption, Workers Compensation and various General Liability matters are already being reported, and this trend is expected to continue for the foreseeable future. If your agency is one that offers the service of reporting claims to insurance carriers on behalf of its customers, then you will need to be especially vigilant during this time as the claim activity is anticipated to increase exponentially. If you are not an agency that offers this service to its customers, you need to make this clear, in writing, and advise your customers to report all claims directly to the appropriate carrier. To avoid E&O exposure on the increased influx of COVID-19-related claims being reported to you by your customers, you will need to: Avoid making comments to your customers regarding coverage. Customers may ask whether a particular claim is covered, and it is natural to want to provide information based on your years of experience; however, it is not the agent’s role to determine coverage. You may not have all the information at the time the claim is initially tendered, and there may be changes in legislation that could impact a carrier’s coverage position. You should merely take the customer’s information and forward it to the carrier for a coverage determination. Forward all claim information in a timely manner. Do not delay forwarding claim information from the customer to the carrier 24
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as this may result in a denial of the claim and an E&O exposure for your agency. This applies to all information including initial claim details as well as further information, reports, etc. Immediate forwarding is optimal, but you should not have longer than a 24-hour turnaround on claim information provided by your customer. Ensure the information provided by the customer is relayed in its entirety to the carrier. Do not paraphrase, interpret or otherwise alter claim information provided by your customers. The claim information you receive is what should be forwarded to the carrier. Any deviation that results in reduced, or a denial of, coverage will be an E&O exposure for your agency. Additionally, if you request clarification or additional documentation, ensure that this is documented and forwarded once it is received. Report claims to all appropriate carriers. There may be a number of policies that may respond to a given claim. To avoid exposure for a failure to report a claim to a particular carrier in a timely manner, make sure you report the claim to each carrier that may potentially have coverage for a particular claim. Ensure that excess carriers are provided notice of the claim. Whether the umbrella or excess coverage is with the same carrier or not, report the claim to each policy that may have coverage. Do not assume that because a carrier has both the underlying and excess coverage that both policies
Timely, Accurate and Complete Claim Reporting continued are triggered when the claim is reported to the carrier on the underlying policy. You need to notify the carrier of each policy that may be triggered to avoid an E&O issue for failure to report or untimely reporting.
Be mindful and vigilant in your business practices and submit all claim information received by your agency customers in a timely, accurate and complete manner to reduce the risk of E&O exposure.
Ensure that excess carriers are provided notice of the claim. Whether the umbrella or excess coverage is with the same carrier or not, report the claim to each policy that may have coverage. Do not assume that because a carrier has both the underlying and excess coverage that both policies are triggered when the claim is reported to the carrier on the underlying policy. You need to notify the carrier of each policy that may be triggered to avoid an E&O issue for failure to report or untimely reporting.
This information is provided solely as an insurance risk management tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National�) are not providing legal advice, or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues.
While public and private entities, healthcare workers and first responders, and private citizens contribute to move forward during this pandemic, you will need to do the same.
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A Grief Therapist on Navigating Uncertainty, Vulnerability, and Loss
MENTAL HEALTH
A Q&A with Claire Bidwell Smith, LCPC
One of the strange aftershocks of losing a loved one is waking up the next morning to find the world is still turning. People are out getting coffee, driving to work, making plans, and running errands. It’s jarring because it’s the opposite of what you’re feeling inside—for you, the world has stopped. For anyone who has suffered a tragic loss, these early days of the pandemic may have brought about a surprising reaction. It almost feels like a delayed physical manifestation—what we see outside our window now is how you expect the world to look when you are grieving. Even though rationally you know it’s not possible, you expect there to be a pause—“Stop all the clocks,” as the W.H. Auden poem so beautifully captures— because how can life be the same? Many thought leaders, healers, and psychologists have been calling what we are all feeling right now grief. For some of us, this naming can be oddly comforting, because it makes this chaotic experience www.viaa.org
feel a little less “unprecedented.” Many brilliant minds have been putting together road maps on grief for a long time. And some of the same tools for dealing with the loss of a loved one can be applied to our collective grief during this pandemic. Claire Bidwell Smith, a grief therapist and the author of Anxiety: The Missing Stage of Grief, talked to us about how we can harness some of the wisdom that already exists around grief and loss to help guide us now. Q There seems to be a feeling of guilt among people who aren’t on the front lines about our lack of productivity. Why is it that even though the grind has slowed down, we feel a pull to keep grinding? A We have a natural tendency to fill up time when we’re uncomfortable, but it’s a detriment to the real healing that can occur if we sit with the pain and just give it space. There is a tender period when 27
Navigating Uncertainty, Vulnernability & Loss continued we’re grieving—whether it’s grieving a pandemic or a personal loss. We need to kind of steep in it in order to move through the transformation that grief often provides. It’s uncomfortable because it’s painful, hard, and sad. There is also uncertainty, and that brings up many feelings as well— lack of safety is chief among them. But letting these uncomfortable feelings move through us without trying to cover them up by keeping busy and productive will bring about so many inner rewards.
will be. And of course, we’re not just grieving people. We are grieving the loss of a world we knew, the loss of a future we thought we had, the loss of a feeling of safety. That feeling of safety was perhaps an illusion, but we were holding onto it, nonetheless. Any of these losses alone could bring about intense pain, and we are grieving them all at once. For people who have had great loss and are familiar with this road, this experience can bring up a lot of old grief, too. I think they should be prepared to possibly experience swells of those losses. I work with a motherless daughters group, and I know a lot of the women are feeling big old grief come up right now. Naming it for what it is will help us all hold space for it.
That said, there is no right way to grieve. And because we will grieve at different paces, some people will reach meaning and purpose faster than others. But while there isn’t one way to grieve that’s better than another, in order to get to meaning and purpose, you do need to move through feelings of anger, sadness, guilt, and anxiety. There is just no way around it. None of us will come out of this unscathed. It is in our collective best interest to sift through these tumultuous feelings to find meaning for ourselves and for the world we come back to. And in that way, these are productive feelings. They will hopefully lead us to something profound.
Q Someone else’s grieving process can be disruptive to your own. Especially for people who are isolating with family members or roommates, how can they go about making healthy boundaries? A The experience of grief is different for everybody, and we all move through it in different ways. Two siblings can lose a parent and go in completely different directions in their grief. And that can result in a lot of friction. The same is true of grieving spouses, friends, family members, etc. A lot of that friction comes from judging how another person is grieving, which is usually born from our own insecurity about how we’re grieving. We see somebody else’s process and think either, Why are they reacting that way? or conversely, Why am I not reacting that way? It’s important to keep in mind that the people around us may not be in the same phase or stage of grief as we are.
Q For anyone who has dealt with profound loss or grief, some of the emotions coming up now may feel familiar. But what would you say to someone for whom this experience is their first and biggest loss? A I would start by telling them that grief is incredibly overwhelming. Our culture is not great with vulnerability. And I think that grief is one of the most vulnerable places we can be in. What I often see is people are shocked to find themselves in such a vulnerable place. Grief touches every aspect of our life and our psyche. It’s often so much bigger than people anticipate it 28
The first step to easing that tension is to remove some of the judgment and replace www.viaa.org
Navigating Uncertainty, Vulnernability & Loss continued Q Is there anything in particular you’re drawing on for strength at this time? A I’ve gone back to a practice that I had let go of, which is practicing a ritual on my own. I was in a pretty good place before this happened, but then so much uncertainty and lack of safety came up, and I knew that I had to turn back to practicing a personal ritual that has gotten me through many dark moments. A lot of our ritual in American culture relies on gatherings—spiritual, religious, local community. We don’t have that right now.We can’t sit shiva; we can’t grieve together. So I created an altar. I light candles and carve out the time to tap into my spirituality.
it with curiosity. If we can be curious about one another’s experiences, as well as our own, we create the space for healing. If someone else’s grieving process is disruptive to your own, you may need to decide not to lean on each other and instead find your own virtual support groups and attend to your pain separately. You can still hold space for someone else’s grief without being each other’s main source of support.
Though we have to grieve in isolation, there may be an upside, which is that we don’t have the usual stress of having to “put on a face” while we are in pain. Our pain won’t be a conversation stopper the way it is with a more solitary loss. The suffering is everywhere, so I think we won’t have the same urge to put on our armor to face the world, because the whole world is hurting. And that is another way that we will see one another through this.
Q Another issue that comes up a lot is comparative suffering. How do we grapple with this at a time when the suffering is so widespread? A David Kessler has a great quote: “The worst loss is always your loss.” I think he is spot-on. There is no good in comparing losses. No one knows what anyone else’s experience is truly like. I find people will often pass judgment out of their desire to be more in touch with their own loss. I try to always find some kind of empathy for people who are expressing judgment. You can tell they’re obviously in a lot of pain. If they were feeling whole, they wouldn’t feel the need to judge someone else’s pain.
Reprinted from Goop at www.goop.com. Goop operates from a place of curiosity and non-judgment, and they start hard conversations, crack open taboos, and look for connection and resonance everywhere they can find it.
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Big ’I’ Partners Help Communities in Need By Will Jones As communities across the nation experience the ongoing effects of the COVID-19 crisis, Liberty Mutual and Safeco Insurance are giving agents a platform to support the causes that hit closest to home. Through a new program announced last week, the organization is putting $1 million of nonprofit giving into the hands of agents.
community
The funding is being made available through the Independent Agent Giving initiative, which will distribute nearly 150 individual emergency grants by the end of May to nonprofits nominated by independent agents. “There are two important tenets within our values as an organization: putting people first and championing our independent agent partners,” said Tyler Asher, president of independent agent distribution at Liberty Mutual and Safeco. “This initiative truly embodies both of these values, giving agents a platform to quickly and effectively support the nonprofits making the greatest impact on the people in their communities during this crisis.” Liberty Mutual and Safeco initially made $500,000 available through Independent Agent Giving to rapidly get money into local communities. In just two weeks, more than 1,500 nominations were received as part of the program’s first call for submissions. In the weeks since, the ongoing need for these types of emergency grants has become more obvious and led the organization to make an additional $500,000 available. “We’ve already been so impressed by the number of submissions and the passion 32
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that agents clearly have for the nonprofits they are nominating. This funding can do a lot of great things for a lot of great causes, and we know this nomination process is in good hands with our agent partners,” Asher said. “They are pillars in their communities and the best advocates for these nonprofits.” In total, $1 million in giving is now planned and will be awarded via nearly 150 individual grants of $5,000 or $10,000. Causes that will receive the grants include food banks, homeless shelters and services, organizations that support first responders and healthcare workers, as well as other life-saving and critical services that are unique to different communities. Meanwhile, another Big “I” partner, Westfield, is helping communities in Northeast Ohio and across the country by donating nearly $1.5 million dollars to nonprofit partners focused on family stability and disaster recovery. These dollars will help stabilize communities and
Big 'I' Partners Help Communities In Need continued
help those who need economic support, according to last week’s press release. Immediate donations include Northeast Ohio nonprofits addressing hunger and Westfield's national partner, Feeding America. Westfield is also working with select independent insurance agencies across the country to donate nearly $600,000 to nonprofits in their communities to support COVID-19 recovery efforts and other community needs and pledged a donation of support to the Insurance Industry Charitable Foundation Children's Relief Fund, helping vulnerable children in need. Will Jones is IA managing editor.
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COVID-19 Civil Authority Orders and Legal Gamesmanship
William C. Wilson, Jr. CPCU, ARM, AIM, AMM is the founder of InsuranceCommentary.com. He retired from the Independent Insurance Agents & Brokers of America in December 2016 where he served as Assoc. VP of Education and Research and was the founder and Director of the Big "I" Virtual University for over 17 years. www.viaa.org
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There is a belief that business closure orders by civil authorities trigger Civil Authority coverage in business income insurance policies if they allege property damage of some kind. This is a misconception that is typical of generalizations about insurance contracts that come from the failure to actually read the policy language. For example, most of the local and state governmental orders I’ve seen reference property damage as a basis for mandatory business closures or operational changes. Here is one of the eighteen “WHEREAS’s” in the City of Key West State of Local Emergency Directive 2020-03: “WHEREAS, this order is given because of the propensity of the virus to spread person to person and because the virus physically is causing property damage due to its proclivity to attach to surfaces for prolonged periods of time;” Dust has a proclivity to attach to surfaces, but does that result in “property damage” if I can remove it with a cloth? If I don’t vacuum my home for a month, have the floors been damaged? Admittedly, a virus can be more problematic than dust for most people, but does it actually cause damage by temporarily residing on the surface of property? These questions were addressed by the first and second articles I wrote about the COVID-19 pandemic. Yes, there is a temporary impairment of the use of the property, but almost certainly no direct physical damage and likely no real damage at all. In addition, if we’re being honest about these government-mandated business interruptions, we would admit that their purpose is to prevent or minimize the spread of disease from one person to another. Surface contamination is simply one means of this occurring. These orders really aren’t issued to prevent or
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minimize property damage because, realistically, there is no real property damage. So, why do these orders include the “property damage” references? Legal gamesmanship. Wellintentioned perhaps, but an attempt to impact insurance coverage based on a generalized comprehension of what is and isn’t covered under many, if not most, business income insurance forms. For example, following up on the Key West directive above, consider this excerpt from a local publication citing attorney Darren Horan: “Both types of coverage – and people can have one, both or neither – but they both require physical damage to the property, which is why it was so important for the city to include specific language in its emergency declaration stating that the virus causes physical property damage. That can only help business owners with these types of coverage. Of course, it’s always a fight when dealing with insurance companies, but I’m glad Commissioner Clayton Lopez was at the meeting when I mentioned this needed language and brought it back to City Attorney Shawn Smith for inclusion in the city directive.” Based on this narrative, the inclusion of a reference to property damage in the directive was for the purpose of triggering insurance coverage, not because of any real or perceived property damage. In fact, there was no citation of any actual property damage at all. If anything, such orders are issued to PREVENT “property damage,” something that does little or nothing to actually trigger most business income coverage forms. For example, take this language from the Civil Authority Additional Coverage in the ISO CP 00 30 10 12 business income form: When a Covered Cause of Loss causes damage to property other than property at the described
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COVID-19 Civil Authority Orders and Legal Gamesmanship Continued
premises, we will pay for the actual loss of Business Income you sustain and necessary Extra Expense caused by action of civil authority that prohibits access to the described premises, provided that both of the following apply:
“Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of the damage”
(1) Access to the area immediately surrounding the damaged property is prohibited by civil authority as a result of the damage, and the described premises are within that area but are not more than one mile from the damaged property;
First, there is no identification of any “damaged property.” Again, the directive is largely preventative.
There are three points to make about this last policy language excerpt:
Let’s parse this language phrase by phrase to illustrate why simply placing a “property damage” statement in a civil authority directive is almost certainly insufficient to trigger coverage. “causes damage to property other than property at the described premises” There is no allegation of any real, existing damage to any property. The policy language indicates that the viral contamination (IF a covered peril) must have actually caused damage to property. Directives like this are preventative, not remedial. “that prohibits access to the described premises” Nothing in this directive actually prohibits access to any premises. The directive prohibits conducting business as usual with the public. It does not forbid, for example, a property owner from physically accessing his building or business. In fact, for many businesses, they can continue operating in a modified way, such as a restaurant providing carryout or delivery of food. In situations like that, certainly the employees have access to the premises.
Second, the directive doesn’t appear to prohibit access to the area. A business may be closed entirely to the public, but that doesn’t mean someone can’t walk or drive down the street immediately adjacent to the business. The reason for this reference to the surrounding area in the policy language is to express the intent of the coverage which is, for example, when a hurricane or tornado impacts a neighborhood or business district, with extensive debris, downed power lines, etc. access is limited only to necessary emergency personnel. This coverage was never intended for an exposure like a viral pandemic that largely impacts individual facilities and not widespread areas. Third, IF there was a prohibition against accessing the immediate area, it would have to be “as a result of the damage.” What damage? No actual damage is cited or known, much less proven, to exist. The reason the “property damage” directive language doesn’t accomplish, in this example, what the attorney thought it did is because the basis for the language was a generalization of coverage and not what the cited policy language actually says. Unfortunately, the media, government officials, politicians and others pick up only on the generalization and not the actual contract language.
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COMPANY & AGENCY NEWS
Concord Group Insurance Responds to COVID-19 Pandemic
The Concord Group Insurance Companies announced a plan to deliver $2,400,000 in return premium and expand several underwriting guidelines and coverage limits to over 150,000 policyholders throughout the four New England states the company does business in, as part of its response to the COVID-19 outbreak. The decision to refund premium reflects the impact the government stay-at-home orders have had on reducing miles driven and accidents. A 15% refund of April and May premium to the company’s personal auto policyholders will be applied the week of April 20th as a single reduction to the auto policy. Customers who have paid their policies in full will receive a refund check in the mail. There is no action needed to receive the premium refund. Additionally, the Concord Group has taken several other measures to help ease customer burden, while the COVID19 pandemic is going on. These include: Providing personal auto coverage to insureds who are temporarily utilizing their vehicles to deliver food or medicine Voluntarily waiving comprehensive and collision deductibles for any healthcare worker involved in an accident while driving to and from work, or in the line of duty Extending the number of days for rental car coverage if there is a delay in the repair of an insured's vehicle Extending the limit on additional living expenses to homeowners who are unable to live in their homes following a covered loss and require temporary accommodations Considering all covered premises as "occupied" while stay-at-home orders remain in place
The Richards Group named Best Employee Benefits Firm
The 2020 Best of Business Award winners have been announced by Vermont Business Magazine and The Richards Group has won as Best Employee Benefits Firm for the third consecutive year. This awards program celebrates the best Vermont companies in business-to-business categories. The Richards Group’s Employee Benefits and Human Resources practice employs a ‘360 Degree’ strategy that focuses on employee benefits in the broadest sense of the phrase. We provide unique attention designed to meet each individual client’s needs and understand the challenges that HR leaders balance between maintaining a healthy workforce and fiscal responsibility. To that end, we provide clients with plan design and budgeting strategies, wellness expertise, leadership and training, robust technologies and compliance insights. We take a holistic approach to ensuring you have a healthy, engaged and dynamic workforce.
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Acuity to Provide Nearly $20 Million in Relief to Auto Customers
To assist customers affected by the COVID-19 crisis, Acuity is discounting its personal auto rates, subject to regulatory approval. This reduction will benefit existing as well as new policyholders and provide nearly $20 million in relief to the insurer’s personal lines customers. Existing personal lines auto policyholders will receive a rate cut for the entire next 12-month policy term at their policy renewal. New customers will also see a reduction in Acuity’s standard automobile insurance rates. A typical customer with two cars will see a decrease between $50 and $100, depending on their unique situation. The rate decrease will apply to all new and renewal policies with effective dates on and after March 11, 2020. Customers do not need to take any action to receive this credit—it will be applied automatically. Additionally, Acuity continues to work closely with its policyholders to offer payment solutions based on individual needs and circumstances. In addition to providing direct relief to its personal auto customers, Acuity has determined it will make a major financial contribution to three charitable organizations, including Feeding America, the Salvation Army, and the Sheboygan County Food Bank.
Union Mutual Announces Auto Insurance Premium Credits Union Mutual of Vermont Companies is pleased to announce a 15% “Stay Home, Stay Safe Credit” on all personal auto policies. Union Mutual was founded in 1874 on the promise of “neighbors helping neighbors.” Over 140 years later, that commitment has never been stronger. While we all work together to be good community stewards and abide by stay at home orders, we understand the financial burden many in our community face. It is in this spirit that the Company has announced its “Neighbors Helping Neighbors” campaign. The campaign focuses on two main aspects – assisting with the financial burden many of their policyholders are facing and also reinvesting in the community. Over the next two months, the Company will be: Applying an automatic credit of 15% to all personal auto premiums.
Involved in purchasing nearly 750 meals per week from local restaurants offering take out services to donate to shelters and healthcare workers throughout central Vermont. “Our staff is our family, our agents are our friends and our policyholders are our community,” Union Mutual President & CEO Michael Nobles said. “We wanted to find a way to thank those who have chosen us as their insurance company and also find a way to reinvest in small businesses throughout the state. We are here for you now and we will still be here for you when this is over.”
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Liberty Mutual and Safeco Insurance Put $1M of Nonprofit Giving into the Hands of Independent Agents As communities across the nation experience the ongoing effects of the COVID-19 crisis, Liberty Mutual and Safeco Insurance are giving agents a platform to support the causes that hit closest to home. Through a new program announced today, the organization is putting $1 million in nonprofit giving into the hands of agents. The funding is being made available through the Independent Agent Giving initiative, which will distribute nearly 150 individual emergency grants by the end of May to nonprofits nominated by independent agent. Liberty Mutual and Safeco initially made $500,000 available through Independent Agent Giving to rapidly get money into local communities. In just two weeks, more than 1,500 nominations were received as part of the program’s first call for submissions. In the weeks since, the ongoing need for these types of emergency grants has become more obvious and led the organization to make an additional $500,000 available. In total, $1 million in giving is now planned and will be awarded via nearly 150 individual grants of $5,000 or $10,000. Causes that will receive the grants include food banks, homeless shelters and services, organizations that support first responders and healthcare workers, as well as other life-saving and critical services that are unique to different communities. Liberty Mutual and Safeco have a rich history in supporting local and national causes on the corporate level with the Liberty Mutual Foundation, Safeco Foundation, the employee involvement program Liberty Torchbearers, as well as Independent Agent Giving. Along with the new emergency community support initiative, Make More Happen and Change Agents are two core Agent Giving programs that are funded on an annual basis. The program launch comes on the heels of an announcement by Liberty Mutual that commits to funding $15 million in crisis grants for nonprofits providing life-saving or critical services in response to COVID-19. As the latest addition to Liberty Mutual’s strategic portfolio of community support initiatives, this funding brings the organization’s total giving to $16 million. For Liberty Mutual and Safeco independent agents interested in learning more and submitting a nomination, visit: agentgiving.com/emergency-community-support
Concord Group Insurance Responds to Covid-19 Pandemic with $25,000 Donation The Concord Group Insurance Companies announced $25,000 in donations to several local New England charitable organizations that provide essential goods and services to those most impacted by the COVID-19 pandemic. Continuing its long history of philanthropic support, The Concord Group chose nonprofit organizations in the four New England states in which it operates, as part of its response to the COVID-19 outbreak. The Friendly Kitchen (NH), New Hampshire Charitable Foundation (NH), Kindness Coalition of Massachusetts (MA), Good Shepherd Food Bank (ME), and Vermont Food Bank (VT) each received a charitable contribution to support their focus on the human welfare and assistance of the most vulnerable in our local communities. In addition to this action, The Concord Group recently announced that it was giving back over $2,400,000 in return premium, and expanding various underwriting guidelines and coverage limits, to over 150,000 policyholders in New Hampshire, Maine, Massachusetts and Vermont. www.viaa.org 45
Liberty Mutual Insurance Announces Personal Auto Customer Relief Refund to Help Customers During Pandemic As part of its response to the unprecedented coronavirus (COVID-19) pandemic, Liberty Mutual Insurance today announced its Personal Auto Customer Relief Refund, which gives personal auto insurance customers a 15% refund on two months of their annual premium. This returns approximately $250 million to Liberty Mutual and Safeco personal auto insurance customers and builds on other customer support, including flexible payment options and delivery coverage expansion for auto policies. Personal Auto Customer Relief Refund Personal auto insurance customers will receive a 15% refund on two months of their annual auto premium as of April 7, 2020, pending regulatory approval. The refunds will begin in April, and will be issued either by check or in the manner the customer made their most recent payment. The payments will happen automatically and customers do not need to call Liberty Mutual to receive the refund. Payment Flexibility Options Late fee charges have been automatically stopped and cancellations due to non-payment have been temporarily paused for personal auto and home customers from March 23 through at least May 22, 2020. We continue to work with individual customers to extend payment dates if needed and provide personalized support. Delivery Coverage Expansion for Auto Policies All personal auto policies have been expanded to cover customers who use their personal vehicles to deliver food and medicine. Standard Safeco personal auto policies typically exclude such coverage. This additional protection is in effect for all personal auto policies in all states for losses occurring from March 16 to May 22, 2020, and reported by July 1, 2020. For more information, please visit www.libertymutual.com/covid-19.
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Union Mutual Becomes Champion Member of VBSR
Vermont Businesses for Social Responsibility (VBSR) announced that Union Mutual has joined the organization’s Champion Members. VBSR is a business association with over 730 members who work to foster a business ethic that sets a high standard within the Vermont professional community for protecting the natural, human, and economic environments of the state. The support of Champion Members like Union Mutual is essential to advancing their year-round state-wide work bringing businesses together as a power for good. For over 140 years, Union Mutual has been providing quality property and casualty insurance products to over 20,000 policyholders in Vermont. Their slogan, “Live Life Well Protected” is championed by providing high-quality service to their network of independent partners and policy holders in Vermont. The company owes its success largely to its stable, values led approach to business that supports its workers and families, the Vermont community and promotes environmental sustainability. Union Mutual believes that when a company invests in its employees and families, not only are quality jobs created but communities thrive. The company’s robust benefits package supports employee wellness, flexibility, and families, while the Union Mutual prides itself on being a culture of fun and work-life balance. The result of this investment is a well-retained, easily recruited, healthy and happy workforce. Union Mutual is a seven-time Best Places to Work in Vermont and a Gold-Level organization in the Vermont Department of Health/Governor’s Council on Physical Fitness & Sports annual Worksite Wellness Awards; both are a testament to their inspiring, challenging, supportive and creative company culture. The commitment to workplace innovation and efficiency has also been present on the environmental front. Union Mutual recently installed a 150-panel 54kW solar array its company headquarters, which will reduce operating cost and the company’s carbon footprint. They also utilize energy efficient LED lighting and closed loop recycling and are undergoing a company-wide paperless campaign, encouraging both employees and insureds to go digital with their insurance policies.
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