2021 August Louisiana Agent Newsletter

A MONTHLY PUBLICATION OF THE INDEPENDENT INSURANCE AGENTS & BROKERS OF LOUISIANA

LOUISIANAAGENT AUGUST 2021

Sale of Insurance

Technical Advisory

By Jeff Albright IIABL CEO

By Ben Albright IIABL VP of Strategic Initiatives

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2021-2022 Board of Directors Installed Page 11

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CONTENTS TABLE OF CONTENTS & FEATURED STORIES

04 IIABL STAFF At your service!

14 YOUNG AGENTS MEET IN BILOXI

By Ben Albright, IIABL VP of Strategic Initiatives

18 A SECRET TOOL

For Resolving Insurance Coverage and Claims

21 REDUCE COSTS FOR AGENCIES How Digitalization can help!

25 BIG 'I' APPLAUSE Reintroduction of Flood Insurance Bill in House

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SALE OF INSURANCE LDI Advisory Letter 2021-05

27 2020 HURRICANE DATA Commissioner Donelon Updates Data through June 30, 2021

31 MANAGING REMOTE WORKERS 3 tools you need!

35 TIPS FOR SETTING UP A HYBRID WORKPLACE Work At Home Vintage Experts

38 PREMIUMS SURGE

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PERSONAL AUTO POLCIES TA 351

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2021-2022 BOARD OF DIRECTORS INSTALLED

First half of 2021 for Surplus Lines

42 LOCAL IIABL CHAPTER HIGHLIGHTS

44 IIABL EDUCATION UPDATE 48 IIABL INDUSTRY PARTNERS 18153 E. Petroleum Drive Baton Rouge, LA 70809 Ph: (225) 819-8007 Fax: (225) 819-8027 www.iiabl.com

49 ADVERTISER INDEX 50 IIABL BOARD OF DIRECTORS & OFFICERS

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IIABL STAFF JEFF ALBRIGHT Chief Executive Officer jalbright@iiabl.com (225) 236-1366

BENJAMIN ALBRIGHT Vice-President of Strategic Initiatives balbright@iiabl.com (225) 236-1357

KATHLEEN O'REGAN Director of Communications & Events koregan@iiabl.com (225) 236-1360

KAREN KUYLEN Director of Accounting & Finance kkuylen@iiabl.com (225) 236-1353

RHONDA MARTINEZ Director of Insurance Programs rmartinez@iiabl.com (225) 236-1352

JAMIE NEWCHURCH Director of Insurance Programs jnewchurch@iiabl.com (225) 236-1350

LISA YOUNG-CROOKS Director of Member Relations lyoung@iiabl.com (225) 236-1351

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LDI Advisory Letter 2021-05 Sale of Insurance By: Jeff Albright, IIABL CEO On August 16, 2021, the Louisiana Department of Insurance (LDI) issued a very important advisory letter directed at insurance producers.

LDI Advisory Letter 2021-05 was issued for the purpose of providing insurance producers strict instruction that only duly licensed insurance producers are authorized to sell, solicit, make an application for, procure, negotiate for, or place for others, insurance coverage in Louisiana as required by the Louisiana Insurance Code (Title 22 of the Louisiana Revised Statutes).

Such acts may not be performed by any person who is not licensed as a producer, regardless of whether the unlicensed individual is involved in one or more noninsurance related aspects that may influence the insurance procurement process.

Furthermore, a producer who knowingly accepts insurance business from a person who is

not licensed as a producer but performing the functions of solicitation, negotiation, sale and/or making of applications may be subject to regulatory action pursuant to La. R.S. 22:1554(A)(11).

LDI has received reports of unlicensed persons acting as real estate agents, lenders, loan closers, auto or RV dealers and attorneys gathering the necessary insurance underwriting information and/or presenting insurance proposals/quotations or arranging for the placement of insurance coverage in the process of closing sales. Such gathering of insurance underwriting information and/or presentations or placements of insurance coverage by unlicensed persons is prohibited by law, even if there is a licensed insurance agent/agency providing the policy as the producer of record. An agency that allows unlicensed persons to present or place insurance coverage is subject to penalties

from LDI under the Insurance Code.

Please refer to LDI Advisory Letter 2021-05 for details.

Y R O S I V D A L A C I N H C E T TECHNICAL ADVISORY 351

TNC (Uber/Lyft) & Other Freelance Exposures in Personal Auto Policies By: Ben Albright IIABL Vice-President of Strategic Initiatives

EXECUTIVE SUMMARY Over 1/3 of all American workers now participate in the “gig economy” to some degree, and that number is only increasing.

Most of the time, the master policy for the entity does not fully cover the freelance workers As an agent, you need to be able to: Identify which of your insureds has these exposures Identify the commercial exposures that your insured faces which are not covered by the company’s master policy Find a policy that includes the appropriate coverages including no exclusions for the necessary commercial activities

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NECESSARY ACTION 1. Make sure personal lines staff understand the exposure and potential coverage gaps.

2. Ensure that new personal auto clients are being screened for freelance exposures and informed that the base personal auto policy does not provide coverage.

3. Consider measures for identifying freelance work exposures in your existing personal auto book of business 4. Identify personal lines carrier partners that can effectively cover freelance work exposures.

5. Provide appropriate coverages to policyholders with freelance auto exposures.

Read the full IIABL Technical Advisory HERE.

IIABL DISCLAIMER Information provided in this publication is intended for educational and informational purposes only. IIABL does not make any warranty or representation, express or implied, with respect to the accuracy, completeness or usefulness of the information provided. This information should not be relied upon as legal advice. Please consult a qualified attorney for legal advice. Information provided in this publication represents the views of one or more experienced professionals but is not a recommendation that a particular course of action be followed. IIABL is not liable for any liability or damage which may result from the use of this information.

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IIABL Installs the 2021-2022 Board of Directors

DONELSONSTIEL President

FOR IMMEDIATE RELEASE Baton Rouge, La. - July 1, 2021 The Independent Insurance Agents and Brokers of Louisiana (IIABL) announced the new 2021-2022 officers and board of director members. The officers include President, Donelson Stiel; President-Elect, Michael Scriber; Secretary/Treasurer, Armond K. Schwing; National Director, Johnny Beckmann, III; and Immediate Past President, Brenda Case. Newly elected board members include Robert Stone, Charles LeBlanc, and Robert Palmer, Jr.

MICHAELSCRIBER President-Elect

President, Donelson “Don” Stiel is an Officer of the Stiel Insurance Group that has offices in Metairie, Lafayette, Hammond, Franklin, Houma, and Morgan City. Stiel joined the IIABL Board of Directors in 2011. He and his wife, Tracey, reside in Franklin.

President Elect, Michael “Mike” Scriber, is Managing Partner of Scriber Insurance Services in Ruston and Bryan Agency in Arcadia. Scriber joined the IIABL Board of Directors in 2011 and has served as IIABL’s Legislative Chairman. He and his wife, Laura, reside in Ruston.

ARMONDSCHWING Secretary-Treasurer

Secretary-Treasurer, Armond Schwing is Chairman and CEO of Schwing Insurance Agency, Inc. in New Iberia. He and his brother, Chet, are 3rd generation owners of the agency started by their grandfather in 1935.

Schwing joined the IIABL Board of Directors in 2012. He and his wife, Jennifer, reside in New Iberia.

National Director, Johnny Beckmann, is Senior Vice President at AssuredPartners in the Greater New Orleans Area. Beckmann was elected as the IIABL National Director in 2019. He and his wife, Lana, reside in Metairie.

JOHNNYBECKMANN National Director

Immediate Past President, Brenda Case, and her husband John own LowryDunham, Case & Vivien Insurance Agency in Slidell. Case joined the IIABL Board of Directors in 2011.

BRENDACASE Past President

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BOARDINSTALLATION Robert Stone is Managing Director of Stone Insurance Agency in Metairie. Stone was elected to the IIABL Board of Directors this year to serve a two-year term. He and his wife, Dorian, reside in New Orleans.

Charles “Chuck” LeBlanc is Secretary-Treasurer of Bourg Insurance in Donaldsonville. LeBlanc was elected to the IIABL Board of Directors this year to serve a two-year term. He and his wife, Bambi, reside in Donaldsonville.

Robert “Bobby” Palmer, Jr. is a producer with Insurance Underwriters, Ltd. in Metairie. Palmer was elected to the IIABL Board of Directors this year to serve a two-year term. He and his wife Kristin reside in Metairie.

Members of the IIABL Board of Directors that were elected for an additional two-year term include: Matt Graham, Lincoln Agency (Ruston); Chris Haik, Haik Insurance Holdings (Lafayette);

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Continued from page 11 Stuart Harris, McClure, Bomar & Harris (Shreveport); Ross Henry, Henry Insurance Service (Baton Rouge); Lydia McMorris, Alliant Insurance Services (Baton Rouge); Hartwig “Robby” Moss, Hartwig Moss Insurance Agency (New Orleans); and Robert Riviere, Riviere Insurance Agency (Thibodaux).

Members of the IIABL Board of Directors that continue to serve the second year of their twoyear term include: Ann Bodkin-Smith, Thomson Smith & Leach Insurance Group (Lafayette); Matthew deBlanc, Continental Insurance Services (Marrero); Rob Eppers, Risk Services of Louisiana (Shreveport); Bret Hughes, Hughes Insurance Services (Gonzales); Paul Owen, John Hendry Insurance Agency (Zachary); Martin “Teeny” Perret, Quality Plus (Lafayette); Eugene Montgomery, Community Financial Insurance Center (Monroe); and Joe King Montgomery, Thomas and Farr Agency (Monroe).

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Brittni Lagarde, Southern Insurance Agency (New Orleans) was re-appointed by IIABL President Stiel to serve as the Chair of the Young Agents Committee for another year.

About IIABL The IIABL is the go-to information resource and primary advocate for independent insurance agents in Louisiana. IIABL is a member-based, professional trade association serving more than 350 independent insurance agents, meeting the education, political, and business needs of members to maximize business opportunities.

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YOUNG AGENTS MEET IN BILOXI By: Ben Albright IIABL Vice-President of Strategic Initiatives

The IIABL/IIAM Young Agents Conference returned this month after being cancelled during the height of the COVID pandemic last August, and it was obvious from the energy in the room that everyone was excited to get back together again. The Beau Rivage played host to the event which brought agents from throughout Mississippi and Louisiana together for networking, professional development, and, of course, some fun at the casino/resort.

Agents began arriving in Biloxi on Thursday morning for the annual Young Agents Golf Tournament and networking as the conference got into gear. Our first formal session on Friday morning was a lively discussion with agency technology expert Steve Anderson around the changing customer expectations and how agents can adapt to address those concerns. Then, in our peer group breakout sessions, young agents got to share their own tips and tricks, learning from each other how to grow their role in the agency and perfect their craft.

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Friday evening brought networking opportunities as young agents gathered again for a cocktail reception and exhibit hall with our sponsors. Spaced for social distancing in a massive ballroom, company reps discussed their products and built relationships with the young agents that will be the next generation in their respective agencies. After dinner, both young agents and company reps could be found throughout the Beau in groups: at the poker table, watching the baseball game in the sports book, or enjoying some drinks at the bar.

Monday morning, Steve Anderson discussed some of the emerging technologies that agents can use to get an edge. Tools for efficiently processing requests from insureds, new communication technologies to personalize your messaging, and services to automate renewal solicitations were just some of the technologies on display. Afterwards, young agent peer groups met again to discuss how to implement those technologies as well as how to deal with the hardening markets and other pressing issues in today’s insurance market. After a quick lunch, our young agents returned to the casino or the poolside to network with company reps, meet other young agents, and relax. Finally, we gathered one last time in the ballroom for a closing reception Saturday evening before heading home.

All in all, the convention was a success. Young agents got the opportunity to learn from experts and from each other (not to mention the 6 hours of continuing education credit), had a chance to network with company reps, and had a little fun on the coast. If you are a Louisiana insurance professional aged 45 and younger and you’d like to get involved in the young agents program, please contact Kathleen at KOregan@IIABL.com.

It’s an opportunity to hone your craft, meet other young insurance professionals, and get involved in the insurance community at large.

A SECRET TOOL FOR RESOLVING INSURANCE COVERAGE AND CLAIMS DISPUTES

By Bill Wilson Founder at InsuranceCommentary.com

In my book “When Words Collide: Resolving Insurance Coverage and Claims Disputes,” I give many examples of how I’ve been able to get initially denied claims paid by referring to authoritative interpretive sources. In several of these claims, the source of the information was the actual regulatory filing that addressed the policy provision cited as the basis for the denial.

So, how do you get access to these filings?

The answer can be found in an online National Association of Insurance Commissioners tool called “SERFF, ” the NAIC’s System for Electronic Rates and Forms Filing. Here you can find filings from advisory organizations like ISO and AAIS or individual insurer filings over the past decade.

The problem I have always had with the

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SERFF system is that it was unintuitive and clunky to use. However, the good news is that my frustration was not (hardly) shared by Tim Dodge, AU, ARM, CPCU of the Independent Insurance Agents and Brokers of New York.

After mercilessly hounding Tim for many months, I finally browbeat him into sharing his tips and tricks in effectively using the system.

The result is an online tutorial Tim put together on how to use the SERFF system: How to Search For and Find Carrier Filings According to the instructions: Several years ago, the National Association of Insurance Commissioners (NAIC) made insurer form, rate and rule filings accessible to the public online. The records go back only to 2010, but they are a treasure trove of information. Want a copy of a specific carrier’s Businessowners Policy form or additional insured endorsements? With a little digging, you should be able to find them. Click the

image below for a slideshow tutorial in PDF format on how to use this valuable tool.

In my “When Words Collide” book, I talk about the legal issues involving the use of extrinsic information to support policy interpretations in litigation. However, my book is premised largely on resolving claims without litigation.

Likewise for coverage issues. As a result, I have found regulatory filings to be of significant value in determining the intent of the form drafter, that intent sometimes clearly in conflict with the adjuster’s claim denial or the underwriter’s coverage opinion.

Bill Wilson Founder at InsuranceCommentary.com One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big “I” Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America.

How Digitalization Can Reduce Costs for Agencies

By Anamaria Cifuentes ePayPolicy

The world of insurance is incredibly traditional. At times, this is a good thing. Independent agencies believe in the personal touch, forging deep, lasting relationships with clients. But, in other ways, relying on what’s tried and true is a hindrance, especially when it involves a lack of digitalization.

Many independent agencies are slow to incorporate new technologies. While you don’t necessarily need to embrace every emerging solution that arrives, a lack of digitalization can hold you back. Not only can it cause you to spend more than you need to; it can also mean missing out on revenueboosting opportunities.

If you are wondering how digitalization can reduce costs and increase revenue, here’s what you need to know.

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What Is Digitalization?

Digitalization – also known as digital transformation – is the process of introducing technologies into your business that provide you with new opportunities. This includes capturing cost savings, increasing revenue, or boosting value, all through the use of technology solutions.

While the most obvious incarnation is digitizing paperwork, that only scratches the surface. Digital transformation includes implementations that boost efficiency, accuracy, and profitability through technology.

How Digitalization Reduces Costs and Increases Revenue Better Customer Experience Today’s customers don’t just want excellent service; they want convenient solutions. The population gets more tech-savvy by the minute.

They rely on technology tools to make their life easier. Whether it’s communicating via chatbot, setting up automatic payments, or gathering information, being able to handle their lives online is a priority.

By embracing digitalization, your independent agency can offer more of what customers are after.

It’s a quick way to improve the customer experience. With technology, you can make it easy for them to review their policies, track payment due dates, and pay on time, simplifying their lives as well as yours. That’s all good stuff, and it can help cement your reputation as a tech-savvy provider.

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REDUCECOST Less Paperwork and Manual Input Let’s face facts; manual data entry and physical paperwork are tedious to handle. Re-entering information into computer systems takes time – time you could otherwise spend on other activities.

With digitalization, you can reduce the need for cumbersome data entry, relying more on digital forms that customers can complete themselves or scanning technologies that automatically upload the data.

Time saved is money saved (or earned), making it worth exploring.

Increased Accessibility When you embrace digitalization, you have the opportunity to increase your accessibility to critical information. By using cloud technology, you can access your data at any time from nearly anywhere. As long as you have an internet-ready device, you can handle everyday tasks while in the office, on the road, or from home.

Plus, it keeps your data centralized.

You’re using one platform no matter where you are, keeping everything consolidated at all times.

Lower E&O Risk Errors and omissions (E&O) can spell trouble for independent agents. Not only can it mean working with inaccurate information, but it may also lead to E&O claims. Claims of negligence, breach of duty, or similar issues hurt your reputation and bottom line; it’s a double-whammy.

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With digitalization, you can reduce E&O risk.

You don’t need to enter data from paper records or transcribe conversations. Instead, the tech can do the bulk of the work. All you’ll need to do is a quick review, allowing you to ensure important details are captured, and the highest level of accuracy is achieved in less time.

Independent Agencies: Looking for More Great Tips?

At ePayPolicy, we understand the importance of reaching your peak potential as an independent agency. If you’d like to see more tips about how independent agents can reduce costs and increase revenue with digitalization, we’ve got you covered. Follow our blog for more tidbits, tricks, and insights.

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BIG 'I' APPLAUDS REINTRODUCTION OF FLOOD INSURANCE BILL IN HOUSE Legislation would ensure private policies satisfy NFIP continuous coverage requirements

The Independent Insurance Agents & Brokers of America (the Big “I”) today applauded Reps. Kathy Castor (D-Florida) and Blaine Luetkemeyer (R-Missouri) for introducing H.R. 4699, the “Continuous Coverage for Flood Insurance Act.” The legislation would allow for private flood insurance to satisfy National Flood Insurance Program (NFIP) continuous coverage requirements.

“The Big ‘I’ thanks Reps. Castor and Luetkemeyer for introducing this important legislation that clarifies that having an active flood insurance policy, whether through the NFIP or through the private market, should be considered continuous coverage for purposes of NFIP rating requirements,” says Charles Symington, Big “I” senior vice president of external, industry and government affairs. “The Big ‘I’ continues to support the development of a private market as a complement to the NFIP, and this legislation is of vital importance to that goal.

ABOUT IIABA Founded in 1896, the Independent Insurance Agents & Brokers of America (the Big “I”) is the nation’s oldest and largest national association of independent insurance agents and brokers, representing more than 25,000 agency locations united under the Trusted Choice® brand.

Trusted Choice independent agents offer consumers all types of insurance— property, casualty, life, health, employee benefit plans and retirement products —from a variety of insurance companies.

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FLOODINSURANCE The legislation would mean that policyholders can obtain NFIP coverage without losing their grandfathered status if they leave the program, obtain coverage in the private market, and later find that this new coverage no longer meets their needs.

“The Big ‘I’ especially appreciates that Reps. Castor and Luetkemeyer were once again able to work in a bipartisan manner to reintroduce this important legislation,” says Wyatt Stewart, Big “I” assistant vice president of federal government affairs. “The Big 'I' urges Congress to continue working toward enacting a long-term reauthorization of a modernized NFIP that includes this important language on continuous coverage and would increase take-up rates for flood insurance both in the NFIP and in the private market.”

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COMMISSIONER DONELON UPDATES 2020 HURRICANE DATA THROUGH JUNE 30, 2021 The amount of money that insurers expect to pay for the 2020 hurricanes continues to grow, albeit more slowly, as Louisiana gets further away from last year’s historic storm season.

Insurance companies have now reported $10 billion for claims in Louisiana from hurricanes Laura, Delta and Zeta through June 30, according to the latest round of information from insurers quantifying paid and reserved-topay losses for those hurricanes.

Policyholders have filed 316,879 claims of all types from the three storms through the second quarter of this year. Of those, 205,554 claims, or 65%, were closed with payment as of June 30, garnering $7.8 billion in payments for damage caused by the three hurricanes.

Insurers have reserved an additional $2.2 billion to pay on those claims.

"As the amounts being paid out due to the devastating 2020 storm season continue to grow, I encourage policyholders to still file supplemental claims if they find additional damage

FOR IMMEDIATE RELEASE AUGUST 5, 2021

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or increased costs after their original claim amount was paid,” Commissioner Donelon said.

Last fall, the Louisiana Department of Insurance (LDI) issued a data call requiring all property and casualty insurers, including surplus lines insurers, to submit their claims data in Louisiana on hurricanes Laura, Delta and Zeta until October 2021. The figures represent insurance claims from both personal and commercial insurance.

storms Cristobal and Marco striking the state.

The 2020 storm season was also the second most expensive for Louisiana behind the 2005 storm season. Hurricane Laura has displaced Hurricane Rita in 2005 as the second most costly storm in Louisiana history.

These payments do not include claims or payments from the National Flood Insurance Program, which is not regulated by the Louisiana Department of Insurance. They also do not include uninsured losses and what people paid out of pocket to cover the deductibles on their insurance policies. As such, the true cost of the three storms is much higher.

Policyholders have filed 175,160 claims from Hurricane Laura, which struck Southwest Louisiana on August 27 with the strongest winds accompanying a hurricane in our state in over 150 years. As of June 30, insurers had closed 86% of the claims from Hurricane Laura, 68% of which were closed with payment. Total paid losses plus reserves on reported claims for Hurricane Laura as of the end of June were $8.6 billion, accounting for the vast majority of damage from the historic 2020 hurricane season in Louisiana.

The 2020 storm season was the most active ever in Louisiana, with three hurricanes plus tropical

Policyholders have filed 86,043 claims from Hurricane Delta, which made landfall in

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Southwest Louisiana on October 9 as a Category 2 storm. At the end of June, insurers had closed 91% of all Delta claims, and 62% of those claims were closed with payment. Insurers have paid or reserved $870 million to cover losses from reported claims for Hurricane Delta as of June 30.

Policyholders have filed 55,676 claims from Hurricane Zeta, which made landfall in Terrebonne Parish on October 28 and traveled through the New Orleans area as a Category 3 storm. As of June 30, insurers had closed 93% of reported Zeta claims, and 59% of those claims were closed with payment. Total paid losses plus reserves on reported claims were $600 million for Hurricane Zeta as of June 30.

Data for the 2020 hurricanes through June 30 can be found at www.ldi.la.gov/datacallresults.

Anyone who is having trouble with their insurance claim should file a complaint with the Louisiana Department of Insurance by going to www.ldi.la.gov/fileacomplaint or by calling the LDI at 1-800-259-5300.

The LDI will continue to collect data from property and casualty insurers to monitor the claims process through the third quarter of this year.

About the Louisiana Department of Insurance: The Louisiana Department of Insurance works to improve competition in the state’s insurance market while assisting individuals and businesses with the information and resources they need to be informed consumers of insurance. As a regulator, the LDI enforces the laws that provide a fair and stable marketplace and makes certain that insurers comply with the laws in place to protect policyholders. You can contact the LDI by calling 1800-259-5300 or visiting www.ldi.la.gov. If you do not wish to receive news releases in the future, please click unsubscribe.

REPLACEMENT COST AND THE 180-DAY LIMITATION MYTH

By Chris Boggs

I don't know the best way to start this article. I don't know if I should say I'm itching for a fight or if it's better to say that carriers are misinterpreting coverage forms. I'll let you decide.

Here's the situation, the insured suffered loss to the building eight months ago (240 days) but did not discover the damage until yesterday (we'll say it's hail damage to the roof). Coverage is written on replacement cost basis and the insured plans to repair or rebuild. Does the carrier owe replacement cost or actual cash value?

Whether coverage is written on a homeowners' policy or a commercial property policy, the answer is the same. The carrier owes replacement cost if certain conditions are met.

“Wait a minute, Boggs," some might say. “The policy limits the insurance carrier's payout to actual cash value because of the 180-day provision. Take a look:" (For sake of this discussion, the debated wording from both the homeowners' and commercial property policy are presented.)

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Commercial Property Policy: Optional Coverages 3. Replacement Cost c. You may make a claim for loss or damage covered by this insurance on an actual cash value basis instead of on a replacement cost basis. In the event you elect to have loss or damage settled on an actual cash value basis, you may still make a claim for the additional coverage this Optional Coverage provides if you notify us of your intent to do so within 180 days after the loss or damage.

Homeowners' Policy: SECTION I – CONDITIONS D. Loss Settlement e. You may disregard the replacement cost loss

settlement provisions and make claim under this policy for loss to buildings on an actual cash value basis. You may then make claim for any additional liability according to the provisions of this Condition D. Loss Settlement, provided you notify us, within 180 days after the date of loss, of your intent to repair or replace the damaged building.

“You see, Boggs, the damage has to be discovered within 180 days of the loss to qualify for replacement cost. This loss is beyond the 180 days, meaning the carrier owes ACV only."

Where does the policy state that? The unendorsed ISO policies I have state that coverage is provided on a replacement cost basis provided certain conditions are met. These conditions are: The insured has met the coinsurance condition (in the commercial property policy) or the insurance-to-value condition (in the homeowners' policy);

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The building is actually repaired or replaced; and Repair or replacement must be made as quickly as possible (a CPP provision).

NOTHING requires the loss be discovered within 180 days for replacement cost to apply. In fact, both policies specifically state that if the above conditions are met, replacement cost is paid.

The commercial property policy states that when the option is chosen replacement cost replaces actual cash value in the valuation provisions.

Using replacement cost in place of actual cash value, the CPP now reads: 7. Valuation We will determine the value of Covered Property in the event of loss or damage as follows: a. At replacement cost as of the time of loss or damage….

Likewise, the Homeowners' Policy states: a. If, at the time of loss, the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, without deduction for depreciation….

Note the common elements in both forms, if the conditions are met and coverage is written on a replacement cost basis at the time of the loss – the carrier owes replacement cost.

“You are completely ignoring the 180-day limitation in both forms, Boggs." No, I'm not; it does not apply to the situation. The only question is, did the insured meet the conditions and have replacement cost at the time of the loss? If the answer is yes, the carrier owes replacement cost.

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However, I sense you don't believe me just yet.

Let's take a look at the 180-day provision and see how it applies. Go back and look at both provisions and pay attention to WHO makes the choice of ACV versus replacement cost. See it yet?

Both forms say the “You" (the insured) can disregard or make a claim on an ACV basis in lieu of replacement cost. It doesn't say that the carrier has this option. But if the “You" does make this choice, current wording says they have 180 days from the date of the loss to re-chose replacement cost. Even this is under scrutiny by ISO and will likely be changed to 180 days from the date the insured learns of the loss. (Hold on for this change.)

Nothing in either form allows the carrier to make this decision. It doesn't say, “We can disregard…."

If the insured wants replacement cost and has met all the other provisions, they are owed

replacement cost – even if the loss is discovered more than 180 days after the event.

Replacement cost is owed when all conditions are met because only the “You" can trigger the 180-day provision. If the “You" doesn't opt for ACV in lieu of replacement cost, there is no wording in either of these unendorsed ISO forms allowing the carrier to limit payment to ACV. So, was I itching for a fight or just trying to prevent carriers from misinterpreting the coverage forms?

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Tips for Setting Up a Hybrid Workplace WAHVE Work At Home Vintage Experts

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We’ve talked about the future of the workplace being a new, flexible model—one where employees work both in the office and at home, with part-time, contract, flex-schedule and jobsharing arrangements flourishing. But while 78% of employees say they very much want this hybrid model post-pandemic, according to an internal Forbes survey, only 43% of employers have a long-term plan in place for it.

Clearly, it’s time for us to start planning.

As a company that specializes in flexible job arrangements and a diverse talent pool, we at WAHVE know a thing or two about how to set your business up for hybrid-workplace success.

There are a range of ways to ensure that your company reaps the benefits of both in-office and remote workers. Here are a few tips:

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#1) Get in the cloud.

When people are in and out of the office and spread out across the country—and in some cases, the globe—having access to critical files and company information becomes tricky.

Migrating to the cloud can make it easier for employees to work and collaborate wherever they are by centralizing all work in a universally accessible location. There are many ways to do this, from investing in enterprise software solutions to using specific cloud-based programs such as Google Docs or Sheets. Choose which solutions work best for your business.

#2) Support remote workers.

In addition to carefully considering and implementing policies for employees working both remotely and in a flexible or hybrid capacity, you’ll also want to be sure your company (and company culture) actively supports these arrangements. What does that mean? It means making sure your workers have the equipment they need to do their jobs outside of the office— from laptops to standing desks, from software licenses to ergonomic desks and chairs. It means being flexible in terms of working hours, maintaining regular contact (especially when workers are virtual), and instilling an atmosphere of trust and respect. Make sure people are

recognized for their work and contributions— regardless of where they’re located.

#3) Invest in videoconferencing tools and room-booking software.

You’ll want to make it easy for anyone in the office to meet with anyone else in or out of the office. Consider investing in top-notch videoconferencing tools as well as online roombooking software to ensure your team members have dedicated private spaces to collaborate.

#4) Consider flex desks.

Related to the room-booking point, you may want to reconsider your office real estate setup.

Flex desks—public desks that employees can book in advance for in-office use—may be able to meet your needs. Be sure to incorporate semi- or fully private small areas, often dubbed call booths or huddle spaces, to facilitate impromptu gatherings of colleagues for brainstorming or casual meetings—and consider equipping these spaces with videoconferencing tools to make it easy for these employees to include their remote colleagues.

#5) Consider recording all meetings— including ad hoc ones.

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Continued from page 36

You don’t want any team member to miss key details that emerged during in-office meetings or impromptu chats. You may want to consider recording meetings—both online and in person—for everyone to reference after the fact.

#6) Make your perks flexible.

Ensure that your itinerant, part-time, contract and other employees can take advantage of your benefits by offering ones that are flexible and accessible anywhere. This means perks like stipends for meal delivery, online discounts, and digital subscriptions to apps, online learning, wellness programs, magazines and more.

It’s time for us to begin formally planning for a post-pandemic world. What are some of your top tips for ensuring a smooth transition to the hybrid workplace of the future?

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LOUISIANAAGENT

SURPLUS LINES PREMIUMS SURGE IN FIRST HALF OF 2021

MarshBerry is dedicated to helping firms Learn, Improve and Realize their fullest potential. Today’s ViewPoint is offered to help you navigate the complexities of advancing your firm at every stage of ownership.

year 2020. Based on the excess growth of premiums over unit transactions, MarshBerry estimates that insurance rates, on average, increased greater than 14% in the overall E&S marketplace.

The U.S. Excess & Surplus lines insurance sector (E&S) saw greater than 20% growth in surplus lines premium during the first half of 2021.

Surplus lines premium volume was over $24 billion with more than 2.6 million transactions through June 2021, an increase of 21.9% for premium and 7.2% for transactions year over year, according to the U.S. Surplus Lines Service and Stamping offices. The first half data follows robust premium figures reported by stamping offices for the full

The strength was broad-based, with all 15 of the stamping offices reporting premium increases in the first six months of 2021. This was the first increase in transactions since the 2019 report, with 14 offices having higher transactions.

Stamping offices comprised 62.7% of U.S. premium volume in 2019, according to A.M. Best and the stamping office.

The ongoing healthy demand in the E&S space

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Continued from page 38

was aided by growth in residential and commercial construction, with several states noting that building booms and “the addition of new households” contributed to premium increases.

Furthermore, businesses are still looking to E&S insurers to handle the risks that are more challenging to place. Market experts see further expansion in the last six months of 2021 as factors like moderating industry reserves, economic uncertainty, and tighter policy wording by large underwriters remain in place.

Here are three factors that are likely to impact E&S market strength in the second half of the year.

1) Greater demand for E&S solutions are expected to continue as economic uncertainty, COVID-19related volatility, and higher claims costs impact traditional insurers. Some admitted market insurance carriers have moved towards increasing rates, reducing capacity, and applying more

conservative factors to risk selection. Others have cancelled coverage and reduced limits to improve profitability. The move towards greater risk aversion in the admitted marketplace has allowed surplus lines companies to insure greater numbers of risks.

2) Severe weather events and natural disasters (e.g. wildfires, flooding and storms) are becoming more prevalent. Adverse weather, drought conditions, and excessive heat drove a number of wildfires in West Coast states, impacting the Property & Casualty (P&C) market. While the threat from U.S. wildfires grows, insurance capacity is decreasing. The insurance market continues to restrict capacity to cover wildfires as the events become larger and more frequent, noted Aon plc. In three of the last four years, insured losses from wildfires in the U.S. cost over $13 billion and economic losses were over $20 billion. In terms of both weather and climate events in the U.S., there’s also been 10 or more

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billion-dollar weather and climate events each year since 2015.

3) Current low interest rates, volatile investment market, and economic uncertainty could also contribute to increases in premiums as carriers try to offset risks to profitability. As noted by the Federal Reserve (Fed) at its June 2021 meeting, its target range of the benchmark federal funds rate remains at zero to 0.25%, unchanged since March 2020. This very low level of yield has forced carriers to generate greater underwriting profitability. Hence, we are seeing a renewed focus on avoiding tougher classes of business.

In sum, not only will surplus lines see tailwinds from the global economic recovery, but E&S lines should continue to benefit from a pullback by standard lines carriers seeking to divest themselves of marginal and unprofitable business.

If you have questions about Today’s ViewPoint or would like to learn more about activity in the E&S

market, please email or call Gerard Vecchio, Managing Director, at 212.972.4886.

Subscribe to MarshBerry's Today's ViewPoint blog for the latest news and updates and follow us on social media.

MarshBerry continues to be the #1 sell side advisor in the industry (as ranked by S&P Global). If you're considering selling your firm, we are the best choice to help you through the complicated process. If you don’t hire MarshBerry, hire a reputable advisor that can help you navigate one of the most important business decisions you will ever make. You will be much better off having an advisor in your corner that knows the industry than trying to do this on your own.

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LOUISIANAAGENT

IIAGNOUPDATE

The Independent Insurance Agents of Greater New Orleans hosted their annual Town Hall Meeting. Members networked, dined and received a 2021 Legislative Update from Jeff Albright!

Thank you to those who attended and our Partners that make events like this possible. Also, CONGRATULATIONS to Ricky Helwig, winner of our Sugar Bowl ticket giveaway!

IIABRUPDATE Fall Social Oct. 7 ~ 5:30pm - 8:30pm Online Registration | Registration Form

November Luncheon Nov. 11 ~ 11:30am - 1:00pm Speaker/Topic Cybersecurity & Live Hacking Demo Stephenson Technology Corporation Online Registration | Registration Form

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IIASBUPDATE

LOUISIANAAGENT

2021 Annual Big I Golf Classic Monday, October 4, 2021 Eastridge Country Club 1000 Stewart Drive Shreveport, LA Lunch Begins at 11:00 am Shotgun Start at 12:30 pm Please join us for our annual Golf Classic. The format is a 4 person scramble. You may submit a team, or we will be happy to place you on a team if registering individually.

Online Registration | Registration Form

PAGE 44

LOUISIANAAGENT

IIABL EDUCATION SEPT 2021 LIVE & INTERACTIVE WEBINARS SUNDAY

29

MONDAY

30

5

6

12

13

19

20

26

27

TUESDAY

31

7

12p

Commercial Prop Direct v Indirect Damage

14

21

10a

1 1p

3 Commercial Property Ins Prob & How to Fix Them

1:30p

Condos & How to Insure Them

8

15

1p

Homeowners Loss Settlement Issues

22 1p

1:30p Why Certificates of Insurance... Just Why?

How to Understand Comm Prop Underwriting & COPE

7p

3 Keys to Getting the Names Insured Correct

28

29

12p

4 Key PL & CL Exposures

WEDNESDAY

Cyber - Evolution, Exposures, Incidents & Insurance

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LOUISIANAAGENT

& EVENTS THURSDAY

2

8a

That's Personal: Home & Auto Exposures...

12p

Is This Stuff for Rea? Understanding & Insuring Emerging Risks

9 8a

Agents E&O: Doc, Social Media, Cyber & More

8a

VU Triple Play Day! Earn up to 6 hours of CE in 1 day!

16

FRIDAY

3

4

10 11a

SATURDAY

5 Contractor Coverage Concepts

11

1:30p Rules for Developing the Correct Premium

17

18

24

25

30

1 - Oct

2

Nailed It: Understanding Insurance Requirements in Construction Contracts

E&O Risk Management Ethics Flood Commercial Lines Courses Personal Lines Courses Professional Development

NEW E&O PROGRAMS Understanding Risk Mitigation and E&O Claims 3 hours CE Qualifies for 10% Premium Discount!

Agency E&O Exposures and Defenses 3 hours CE Qualifies for 10% E&O Premium Discount

23

8a

IIABL CE ON DEMAND

E&O Exposures: Website & Social Media 1 hour CE

OTHER EDUCATIONAL RESOURCES

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LOUISIANAAGENT

CONTINUED SEPT 2021 IN-PERSON EVENTS SUNDAY

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

29 - Aug 30

31

1

2

3

4

5

7

8

9

10

11

6

Sept Luncheon CANCELLED

12

13

14

15

16

17

18

19

20

21

22

23

24

25

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1 - Oct

2

B i g ' I ' E d u c a t i o n C o n v o c a t i o n B i g ' I ' F a l l L e a d e r s h i p C o n f e r e n c e Y o u n g A g e n t s L e a d e r s h i p I n s t i t u t e

SAVE THE DATE IIABR Fall Social October 7, 2021 Drusilla Seafood IIASB Annual Big I Golf Tournament October 4, 2021 Shreveport, LA ACT Tech Summit October 13-14, 2021 Virtual

IIABL Fall Conference October 13, 2021 Baton Rouge, LA IIABL Fall Conference October 28, 2021 Shreveport, LA IIABL Fall Conference November 9, 2021 New Orleans, LA IIABR November Luncheon November 11, 2021 Drusilla Seafood

PAGE 49

2021

LOUISIANAAGENT

INDUSTRY PARTNERS

GOLD LEVEL

SILVER LEVEL

BRONZE LEVEL Accident Fund Insurance Company of America Allied Trust Insurance Co. Americas Insurance Co. Berkshire Hathaway GUARD Insurance Companies EMC Insurance Companies FCCI Insurance Group

Foremost Insurance Group

LUBA Workers' Comp

Forest Insurance Facilities

Maison Insurance Company

Gulf States Insurance Company

National General Insurance

Homebuilders SIF

RPS/Risk Placement Services

Iroquois South, Inc.

Summit Consulting, Inc.

Lane & Associates, Inc.

Wright Flood

LCTA Risk Services

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ADVERTISER INDEX COMPANY

PAGE

Access Home Insurance

28

Accident Fund Insurance Company of America

24

Agile Premium Finance

19

Allied Trust Insurance Company

41

Americas Insurance Company

49

Amerisafe

39

AmTrust North America

40

AmWINS Access Home Insurance Company

5

Berkshire Hathaway GUARD Insurance Company 32 Burns & Wilcox Ltd.

12

EMC Insurance

7

FCCI Insurance Group

24

Foremost Insurance Group

22

Forest Insurance Facilities

41

The Gray Insurance Company

33

Homebuilders Self Insurers Fund

10

Imperial PFS

28

Iroquois

13

Lane & Associates, Inc.

30

LCI Workers' Comp

32

LCTA Risk Services

34

Lighthouse Property Insurance Group

40

LUBA

2

LWCC

36

Maison Insurance

33

National General

26

Progressive

29

RISCOM

22

RPS/Risk Placement Services

37

SafePoint Insurance

23

Stonetrust

20

Summit

9

United Fire Group

43

UPC Insurance

15

Wright Flood

31

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LOUISIANAAGENT

IIABL 2021-2022

BOARD OF DIRECTORS & OFFICERS PRESIDENT, DONELSON P. STIEL David H. Stiel, Jr. Agency - Franklin PRESIDENT-ELECT, MICHAEL SCRIBER Scriber Insurance - Ruston SECRETARY-TREASURER, ARMOND K. SCHWING Schwing Insurance Agency, Inc. NATIONAL DIRECTOR, JOHNNY BECKMANN, III Assured Partners - Metairie PAST PRESIDENT, BRENDA CASE Lowry-Dunham, Case & Vivien - Slidell YOUNG AGENT REPRESENTATIVE, BRITTNI LAGARDE Southern Insurance Agency - New Orleans ANN BODKIN-SMITH Thomson Smith & Leach Insurance Group - Lafayette MATTHEW DEBLANC Continental Insurance Services - Marrero ROB W. EPPERS Risk Services of Louisiana - Shreveport MATT GRAHAM Lincoln Agency - Ruston CHRISTOPHER S. HAIK Haik Insurance Holdings, LLC - Lafayette STUART HARRIS McClure, Bomar & Harris, LLC - Shreveport ROSS HENRY Henry Insurance Service, Inc. - Baton Rouge BRET HUGHES Hughes Insurance Services, LLC - Gonzales CHARLES H. LEBLANC Bourg Insurance Agency, Inc. - Donaldsonville LYDIA MCMORRIS Alliant Insurance Services - Baton Rouge A. EUGENE MONTGOMERY, III Community Financial Insurance Center, LLC - Monroe JOE KING MONTGOMERY Thomas & Farr Agency, Inc. - Monroe HARTWIG "ROBBY" MOSS, IV Hartwig Moss Insurance - New Orleans PAUL R. OWEN John Hendry Insurance - Zachary ROBERT LOUIS PALMER Insurance Underwriters, Ltd. - Metairie MARTIN "TEENY" PERRET Quality Plus - Lafayette ROBERT G. RIVIERE Riviere Insurance Agency - Thibodaux ROBERT STONE Stone Insurance, Inc. - Metairie