Louisiana Agent June 2016

2016 IIABL Convention Recap Louisiana Citizen’s has a new CEO Top 10 Insurance Bills

IIABL STAFF

114th IIABL Convention & Exposition

Jeff Albright Chief Executive Officer jalbright@iiabl.com

Louisiana Citizens New CEO

Francine Berendson Director of Communications & Events fberendson@iiabl.com Mike Edwards, CPCU, AAI Director of Education medwards65@aol.com

Kim Jackson Education & Membership kjackson@iiabl.com

4-8 15-16

Talk to your Clients About Map Changes

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Insurance Tax Bills Passed in 2nd Session

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Top 10 Insurance Bills of the 2016 Session 24-29

Tech Tips

31

Auto Insurance Affordability Problems

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Karen Kuylen Director of Accounting kkuylen@iiabl.com E. Lee Mowe Marketing Representative lmowe@iiabl.com

Commissioner’s Corner

13—14

Rhonda Martinez, CIC Director of Insurance rmartinez@iiabl.com

Ask Mike

19—23

Jamie Newchurch Insurance Services jnewchurch@iiabl.com

Rate & Rule Filings

29

IIABL Calendar

27

IIABL Partners

34

Lisa Young-Crooks Executive Assistant lyoung@iiabl.com

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114TH IIABL CONVENTION & EXPOSITION Nearly 400 insurance professionals attended the IIABL Convention in Destin, Florida June 19-22, the largest annual insurance conference in the Louisiana insurance industry. Independent agents discussed business and had a great time with their insurance companies, brokers and vendors during business sessions, social functions, around the pool or beach and at the bar.

55 exhibitors filled the exhibit hall Sunday afternoon and during the Opening Reception. The event was packed as people visited over drinks and fabulous food.

At the Opening Business Session, Commissioner Donelon provided an update on the state of the Louisiana insurance market. Mary Belka outlined the future challenges of the insurance business, and how independent agencies must differentiate themselves in an increasingly competitive marketplace. Belka also conducted two continuing education seminars about Overcoming Obstacles to Success and Redefining the Order of Things.

There was plenty of time for fun as people golfed, fished, shopped, or just relaxed around the pool or at the beach. The weather was fantastic, with low humidity and not too hot.

IIABA Chairman-Elect, Spencer Houldin, talked about how the Big I is working to help independent agents compete against other market channels and about the success of TrustedChoice.com. IIABL CEO, Jeff Albright, wrapped up the convention with a review of the highlights of the 2016 Regular Session of the Louisiana Legislature, including the Top 10 Most Important Insurance Bills, which are outlined in another article in this newsletter.

Those who attended the convention had a great time while learning valuable information and networking with many of their business partners.

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IIABL could not have a successful convention without our insurance companies and broker partners, and would like to thank the following exhibitors and sponsors:

Centauri Insurance Imperial PFS Louisiana Workers Comp Corp Progressive UPC Insurance

Access Home Insurance Amerisafe Burns & Wilcox FCCI Insurance Group Gray Insurance Co Interstate Ins Underwriters LCI Workers’ Comp LCTA Workers’ Comp

LA Restaurant WC SIF Lighthouse Property Ins Republic Group Stonetrust Commercial Ins Co Travelers United Fire Group Wright Flood

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AMERICAS INSURANCE CO

HOMEBUILDERS SIF

AmTRUST NORTH AMERICA

LANE & ASSOCIATES

ASI

LIBERTY MUTUAL

BANKERS INSURANCE CO

LUBA WORKERS’ COMP

CNA INSURANCE

MAISON INSURANCE

COMMERCIAL SECTOR INSURANCE

MARKEL FIRSTCOMP

EMC INSURANCE COMPANIES

RISCOM

ENCOMPASS INSURANCE

RPS COVINGTON

FOREST INSURANCE FACILITIES

SAFECO INSURANCE

GEOVERA SPECIALTY INSURANCE

SOUTHERN STATES GENERAL AGENCY

GULFSTREAM P&C INSURANCE HANOVER INSURANCE

SUMMIT CONSULTING, INC.

SWISS RE

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CONVENTION PICS AWARDS & RECOGNITION

2016 IIABL Outstanding Service Award: Lydia McMorris with Regions Insurance in Baton Rouge, Chair Young Agents Committee

2016 IIABL Lou Daniel Award: Parke Ellis, with Gillis, Ellis & Baker New Orleans

IIABL President-Elect Richard Jenkins with Moore & Jenkins in Franklinton presents IIABL President, David Dethloff with Dethloff & Associates with the outgoing President’s plaque.

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Commissioner’s Corner

Department of Insurance Legislative Update While legislators continue their work in Baton Rouge during the Special Legislative Session, the Regular Session has concluded and I am pleased to report progress in improving some of the licensing processes here at the Louisiana Department of Insurance (LDI). This month’s column provides a recap of some of our legislative package, particularly those bills which impact producers.

Act 315 made some changes in the process of obtaining a producer license and also in the registration requirements. Currently an individual seeking a producer license must first submit an application to the Department and then take and pass a licensing examination. Under this legislation, an applicant has the option of first taking the exam and once they have passed the exam they can then apply for a license. Typically, the passage rate for first-time test takers is about 50 percent. The intent of this legislation was to streamline the application process so that applicants are not paying the $75 application fee and then not passing the exam and ultimately deciding they no longer wish to pursue a producer license.

Act 315 also requires that every member, partner, officer, director and person who controls, directly or indirectly, 10 percent or more of the business entity to be registered with the LDI under that entity’s license. Currently, only individuals who are engaged in the sale, solicitation and negotiation of insurance are required to be licensed. Act 315 also adds a requirement that every individual personally engaged in soliciting or negotiating policies for a business entity in Louisiana must be registered with the LDI under that business entity’s license. If a person who is registered has been convicted or pleaded guilty to a felony or been convicted of any misdemeanor involving moral turpitude or public corruption, this law gives me authority to deny, non-renew or revoke the license of a business entity who refuses to remove or discharge that person from the business.

The law further requires each licensee to notify the LDI within 30 days if they have a change of address, legal name, or any information submitted on the application. Previously, each licensee was only required to provide notification if a change of address took place.

Two other measures passed by the Legislature align Louisiana requirements with those in other states.

Act 367 authorizes only resident producers to sell insurance policies issued by Louisiana Citizens Property Corporation (Citizens). Previously, every proContinued page 14

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ducer licensed to sell property and casualty insurance policies could sell policies issued by Citizens.

Similar residency requirements exist in Mississippi and Texas regarding the sale of Mississippi Windstorm Underwriting Association and Texas Windstorm Insurance Association policies.

Under Act 174 all workers’ compensation adjusters are now required to pass an exam and be licensed in Louisiana. Previously individuals handling workers compensation claims were exempt from licensure.

The intent of the legislation is to provide for uniformity in adjuster licensing. Act 174 adopts the uniform lines of authority for adjuster licensing suggested by the National Association of Insurance Commissioners (NAIC) Uniform Adjuster licensing guidelines and brings the licenses issued by Louisiana in line with adjuster licenses issued by most other states. The law becomes effective August 1, 2017 which will provide time to develop the exam.

There is a grandfathering provision providing an exemption from the exam for those who have been employed as workers comp adjusters for at least three of the last five years. A similar exam exemp-

tion was granted to adjusters when we first started licensing them following Hurricanes Katrina and Rita.

The law is also aimed at easing the licensing process for Louisiana residents serving as adjusters in the workers comp line of business. Previously, if they were to go out of state to work as an adjuster, and that state required a license, the Louisiana resident would have to deem that other state as their home state for their workers comp license. That will no longer be the case.

Another measure worth noting provides for the licensing and regulation of insurance consultants by the LDI. Act 312 requires applicants seeking to be licensed as consultants to pass a written exam, pass a criminal background check and complete continuing education requirements, among other things.

The law defines insurance consultant and sets an initial license term of two years followed by renewals at two-year intervals.

You can find legislative digests on bills in their entirety by logging onto the Legislature’s website at www.legis.la.gov.

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Commissioner Donelon Names Richard Newberry CEO of Louisiana Citizens Property Insurance Corp.

Insurance Commissioner Jim Donelon announced today that he has named Richard Newberry as the new Chief Executive Officer of Louisiana Citizens Property Insurance Corporation (Citizens).

“As the insurer of last resort, Citizens plays a vital role in our property insurance market and we conducted a nationwide search to find an individual who will build on the successes Citizens has seen over the last several years,” said Commissioner Donelon. “I’m pleased to bring on board a proven leader who has 23 years of insurance industry experience encompassing operations, claims, technology implementation, financial reporting and much more.”

Newberry brings a wealth of experience to the position of CEO of Citizens. He has served in many capacities for Oklahoma Farm Bureau Mutual Insurance Company over his career. Beginning in 1993, he worked his way through the claims department from adjuster to Vice President of Claims. He currently serves as the Executive Vice President and General Manager of the Oklahoma Farm Bureau Mutual Insurance Company. He earned a Bachelor of Business Administration in Risk Management and Insurance from the University of Central Oklahoma.

“I’d also like to take the opportunity to thank Vijay Ramachandran, who has led Citizens as interim CEO since 2015, for his tireless service to Citizens Corporation and to the people of Louisiana,” added Commissioner Donelon.

According to Citizens operating policies, Commissioner Donelon is responsible for hiring top-level managers at the state-run insurer of last resort.

Mr. Newberry’s compensation package will be presented for approval to the Louisiana Citizens Board of Directors at its meeting in July.

Fast Facts about Louisiana Citizens Property Insurance Corporation:



Over the nine rounds of the Depopulation Program, Citizens has reduced its overall policy count by nearly 60 percent from an all-time high of 174,000 policies in 2008 to fewer than 70,000 policies today.



Insurance Commissioner Jim Donelon approved a statewide rate reduction for Citizens personal lines policies effective June 1, 2016. Although the impact of the filing will vary across

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parishes, the overall impact is a -2.4 percent rate reduction. Citizens attributed the rate cut to added competition in the homeowners market with some major insurers implementing rate decreases, as well as reduced reinsurance costs.



Citizens Board of Directors recently approved a refinancing plan that will result in approximately $92 million in gross savings and a reduction in the assessment rate from 2.92 percent in 2016 to a projected 2.48 percent in 2017.

In June of 2015, Citizens received a two notch upgrade to its bond rating from Moody’s Investor Service. The upgrade from A3 to A1 reflects the stateowned nonprofit agency’s increased stabilization.

How to Talk to Your Clients about Map Changes Whether the result of new construction, updated levees, or even a major flooding event, flood risks across the nation are constantly changing. The Federal Emergency Management Agency (FEMA) is working its way across the Nation to update the Flood Insurance Rate Maps (FIRMs) for communities that participate in the National Flood Insurance Program (NFIP). When new maps show changes in flood risk, flood insurance requirements for property owners can also change. As an agent, you need to understand what those changes can mean for your clients and ensure that they have the necessary flood insurance coverage to protect what matters— their home.

When an area receives new or updated flood maps, some of your clients may find themselves in a highrisk flood area (Zones A or V), while other clients may be in a moderate- to low-risk area (Zones B, C, or X). Will you know what to say when your clients come to you for advice on flood insurance?

FloodSmart, the marketing and education campaign of the NFIP, has all the tools you need to prepare for those conversations.

How Map Changes Affect Your Clients Clients whose properties are located in a high-risk flood

insured lender. Remind clients who do not have mortgages that they should still protect their investment with flood insurance because they are more likely to experience a flood than a fire. Additionally, you can may be able to save your clients money with the Newly Mapped procedure and through a process known as grandfathering provided by the NFIP. Did you know that more than 20 percent of NFIP claims come from areas outside mapped high-risk areas? If your clients’ flood risk has recently been reduced, they may find themselves no longer required by their lender to maintain their flood insurance coverage. It is up to you to ensure that they continue coverage so they are financially protected in the event of a flood. Encourage your clients to take advantage of the lower premiums by offering them a Preferred Risk Policy.

How to Be FloodSmart on Flood Maps Did you know that new or updated flood maps provide a great opportunity for you to grow your flood business? Participate in open houses or other local events hosted by your local community officials.

Position yourself as a knowledgeable, reliable source on the map changes, their impact, and options your clients and prospects might have—both from an insurance and mitigation perspective. Encourage your current and potential clients to attend these events as well to ensure that they understand their current flood risk. FloodSmart has developed an entire Flood Map Updates section on Agents.FloodSmart.gov that includes a searchable map update schedule as well as materials and talking points to help you explain these changes to your clients.

Map updates can be confusing, so be a resource to your clients, prospects, and your community as a whole. Be your clients’ advocate by talking with your local floodplain manager to understand the changes in flood risk. You can help your clients make informed decisions on their insurance coverage. Stay current on program changes by registering as a FloodSmart Agent at Agents.FloodSmart.gov and get updates straight in your inbox. For more tips and resources on marketing and selling flood insurance, visit Agents.FloodSmart.gov.

area are required to purchase flood insurance if they have a mortgage through a federally regulated or Louisiana Agent 16

Insurance Tax Bills Passed In 2nd Special Session Several insurance related tax bills passed during the recent Second Special Session of the 2016 Louisiana Legislature. Following is a brief description of each of these bills: Insurance Premium Tax Credit HB24 by Rep. Andy Anders, D-Vidalia, exempts HMOs from the 5 percent reduction to the insurance premium tax credit that the Legislature passed in Act 10 of the first special session. It expands the definition of "qualified Louisiana investments" for HMOs between January 2017 and January 2019. The legislation is effective upon the governor’s signature.

Legislative Process: The House concurred in Senate amendments by a vote of 81-0 Passed the Senate 31-2 Passed the House 91-10

Citizens Property Insurance HB25 by Rep. Rodney Lyons, D-Harvey, reduces the amount of the income tax credit for the Louisiana Citizens Property Insurance Corporation Assessment from 72 percent to 25 percent. The bill also removes the July 2018 sunset date to make it permanent.

Legislative Process: Passed the Senate 28-9 Passed the House 67-31 Passed the Ways and Means Committee 9-5 Annual Minimum Tax Rate for HMOs HB35 by Rep. Andy Anders, D-Vidalia, repeals the HMO annual license tax. It establishes the annual minimum tax rate for HMOs at $550 for every $10,000 of gross annual premiums collected. The legislation is applicable to tax periods beginning Jan. 1, 2016.

Legislative Process: Passed the Senate 35-1 Passed the House 83-13

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IIABL Director of Education, Mike Edwards is your source for technical questions. Contact Mike at medwards65@aol.com or 678.513.4390

Subject: BAP vs PAP: Coverage for a business with an owned trailer but no owned autos.

Q.

I am trying to figure out the best way to cover a commercial trailer for a business that owns no autos. My insured sells and services a wide variety of outdoor power equipment. I have written all their business insurance for years. Since they own no autos, we have Hired/Nonowned Auto coverage under the Commercial General Liability (CGL) policy.

I stopped by yesterday to pick up a new blade for my riding mower. As I pulled into the parking lot, my heart skipped a beat when I saw a double-axle (5x10) cargo trailer, with a custom paint job featuring the company’s logo.

When I asked my insured about the trailer, he explained that they were going to expand their services to include pickup and delivery of equipment needing service or repair, such as riding mowers, portable generators, and any other equipment customers couldn’t bring to the shop themselves. He said he just got the trailer back from the paint shop, and had been meaning to call me about it.

So far, none of my auto markets will write a Business Auto Policy (BAP) for just a trailer. However, one of my underwriters commented that if the business owned or leased just one auto, she could write the coverage for the auto and the trailer.

My thought is for my insured to lease his pickup truck to the business, which we could then add to a BAP, along with the trailer. As it turns out, I also write his personal insurance, so we would cancel his Personal Auto Policy (PAP), since he would have coverage under the BAP. What do you think of this arrangement?

A.

If you cannot find a market that will write a BAP on just the trailer (“Plan A”), here are some “Plan B” options, none of which is perfect.

Assume your insured is Jack Smith, owner of Smithco Outdoor Power Equipment, Inc., covered by a CGL with a Hired/Nonowned Auto endorsement. Jack owns a Ford F-250, which is covered by a PAP in his personal name. Coverage form excerpts and comments below are based on Insurance Services Office (ISO) forms and endorsements. Proprietary forms may be different.

Coverage gaps under the current insurance in place.

Situation #1: Trailer (owned by Smithco) being towed by Jack’s F-250.

Personal Auto Policy PP 00 01 01 05 Named Insured: Jack Smith Part A – Liability Coverage Insuring Agreement B. "Insured" as used in this Part means: 1. You or any "family member" for the ownership, maintenance or use of any auto or "trailer".

2. Any person using "your covered auto".

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3. For "your covered auto", any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part.

4. For any auto or "trailer", other than "your covered auto", any other person or organization but only with respect to legal responsibility for acts or omissions of you or any "family member" for whom coverage is afforded under this Part. This Provision (B.4.) applies only if the person or organization does not own or hire the auto or "trailer".

Comments:

(1) Jack is an insured under B.1.

(2) Smithco is an insured under B.3., but only for their vicarious liability. However, there is no coverage for Smithco for their sole legal liability, such negligent maintenance of their trailer, etc.

(3) If Jack was pulling the trailer with an auto other than his truck (that is, an auto not within the definition of “your covered auto” in his PAP), he is still covered under B.1., but Smithco is not covered under B.4. (No coverage for the owner of the trailer).

Situation #2: Trailer not attached to an auto.

Assume the trailer is in the parking lot of Smithco, not attached to an auto, and it rolls across the

parking lot, injuring a customer. No coverage under Smithco’s H/NO endorsement, since the trailer is owned by Smithco.

“Plan B” Options.

Option #1: Jack leases his Ford F-250 to his company.

Business Auto Coverage Form CA 00 01 1013 Named Insured: Smithco Outdoor Power, Inc. Section II – Covered Autos Liability Coverage 1. Who Is An Insured The following are "insureds": a. You for any covered "auto". b. Anyone else while using with your permission a covered "auto" you own, hire or borrow except: (1) The owner or anyone else from whom you hire or borrow a covered "auto".

This exception does not apply if the covered "auto" is a "trailer" connected to a covered "auto" you own.

(2) Your "employee" if the covered "auto" is owned by that "employee" or a member of his or her household.

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Comments:

(1) Smithco is covered for the use of Jack’s pickup, under 1.a. above.

(2) Jack is not an “insured” for his use of the pickup, under the exception for permissive users in 1.b.(1)(2)., which does not afford coverage to the owner of an auto which Smithco has hired or borrowed (“hired” includes leased).

(3) Coverage for Jack can be provided with attachment of CA 99 47 – Employee As Lessor endorsement. However, coverage under this endorsement only applies as follows: “B. While any covered

"auto" described in the Schedule is leased to you by one of your "employees", the Who Is An Insured provision under Covered Autos Liability Coverage is changed to include that "employee" as an "insured".

(4) Jack has no coverage under the BAP for his use of any other auto not owned, hired, or borrowed

by Smithco. For example, he would have no coverage under Smithco’s BAP if he borrows a friend’s auto for a non-business errand, or rents an auto on vacation, etc. Such coverage would be available to Jack if he has a PAP. (5) But if Jack has no autos other than his pickup truck, and does not have coverage under a resi-

dent family member’s PAP, then Jack needs coverage under either a Named Non-Owner PAP (PP 03 22), or the Drive Other Car (DOC) endorsement CA 99 10, for his use of autos he borrows or rents which are unrelated to Smithco business.

(6) If Jack has a Personal Umbrella, some underwriters are reluctant to recognize the CA 99 47 Employee As Lessor endorsement as acceptable underlying coverage for the F-250.

(7) If Jack’s pickup is finance or leased, the finance or leasing company might not be agreeable to Jack’s leasing of the truck to Smithco.

Option #2: Smithco sells the trailer to Jack.

Comments: (1) Referring to Situation #1 above, Smithco’s only exposure not covered under Jack’s PAP would be their sole negligence as owner of the trailer. By transferring the ownership of the trailer to Jack, Smithco has not only coverage under Jack’s PAP (as discussed above), but also has coverage for their sole negligence under their CGL H/NO endorsement.

(2) Jack, however, has acquired additional exposures as the owner of the trailer. For example, in Situation #2 above, he is potentially liable for the Continued page 22

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trailer at all times, even when not attached to his pickup truck. While his PAP does provide him coverage for “any auto or trailer” (see B.1. under “Insureds” in Jack’s PAP above), he now could have claims against him which he probably would not have had before.

Option #3: Smithco buys a clunker.

Recall the suggestion made by one of your underwriters was that Smithco either buy or lease an auto, so the trailer could then be added to a BAP. While we’ve seen that Jack’s leasing of his truck to Smithco is a potential can of worms, I think this “clunker idea” has some merit, and certainly with less coverage complications than the leasing arrangement.

Ironically, the day after I received your question, I was talking to an insurance-nerd colleague who had recently had a similar question. A BBQ restaurant wanted to branch out and do some on-site catering, so they bought a large grill and smoker, and had them attached to a custom commercial trailer.

However, they had the same problem as your insured: since the business owned no autos, they were unable to procure a BAP. Here is the comment my colleague emailed to me about your situation:

Mike-

The gaps you point out are exactly what I reference in class.

When I teach the “Insurance & BBQ” class, I have a case where a BBQ joint has no power units but buys a trailer/smoker that they haul all over town…it is licensed. I point out the problem and suggest that the fix (a stand -alone BAP with only a trailer) is next to impossible to find. I joke and say, “Buy a 1968 Crown Vic for $500 and put it on a BAP.” David.

Sometimes, simpler is better!

For reference: "Insuring Commercial Trailers Without Owned Autos" “The CGL and Trailers” “Personally-Owned Trailer Parked in Company’s Parking Lot” "Personal Vehicle Pulling Business-Owned Trailer" “Pulling a Personally-Owned Trailer with a Company Truck” "Leasing Your Personal Auto to Your Business" “Leasing a Company Car to Yourself” These materials are intended for educational purposes only and should not be relied upon as legal advice. Please consult a qualified attorney for legal advice.

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Top 10 Insurance Bills of 2016 Session The 2016 Regular Session of the Louisiana Legislature is finally over.

It was a very busy session for insurance issues.

IIABL tracked and lobbied 143 insurance related bills.

A significant number of bills were introduced that would have had negative consequences on independent insurance agents, the Louisiana insurance industry and/or our customers. IIABL worked with the rest of the insurance industry to amend or kill those bills, and we are extremely pleased to report that all of those bills were amended or killed.

However, there were some important bills that passed the legislature this year. Following is IIABL’s countdown of the top 10 most important insurance bills passed in the 2016 legislative session.

Please continue to page 26 for a synopsis of the top 10 insurance bills. You can click on the bill number for detailed information about any of the bills listed.

59 insurance related bills were passed by the Louisiana Legislature. Most of those bills were technical corrections or of modest impact on the daily business of the insurance industry.

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Continued page 14 Continued page 14

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HB 184

Stokes, Julie(R) Martiny, Danny(R)

HB 596

Huval, Mike(R) Erdey, Dale(R)

Requires provision of certain claims information to insureds relative to homeowner insurance.

HB 184 requires insurance companies to notify policyholders if a report of an claim with no payment is going to result in an increase in future premiums.

Position: Support Bill History: 05-27-16 G Effective

Provides for notification and effectiveness of a material change in a contract between a health insurance issuer and a producer.

HB 596 requires health insurance companies to provide producers with 90-days advance written notice of any changes in the terms of their agency agreement.

Position: Support Bill History: 08-01-16 G Effective

HB 915

Davis, Paula(R) Johns, Ronnie(R)

Provides relative to certain exemptions from the continuing education requirements for producers.

HB 932 reestablishes the “grandfather provision� that exempts insurance producers over 65 years of age from the requirement for continuing education.

Position: Support Bill History: 05-10-16 G Effective Continued page 28

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Webcasts E&O Risk Management July 5, 12 , 21

Ethics July 15, & 19

Flood July 19

E&O Risk Management October 11th—14th

Free Flood Seminars November 8—10, 2016

Big I Louisiana/Mississippi Young Agents Conference August 4-7, 2016 Ritz Carlton New Orleans

North Louisiana Education Conference—Shreveport 3 Hours Ethics 3 Hours Flood October 20th

CSR Training: The Customer Service Representative is key employee in every agency and is a difficult commodity to find.

Environmental Strategists (eS) Becoming a certified environmental Strategist™ (eS) will equip you with the knowledge to identify, manage and transfer environmental exposures impacting everyday business.

Commercial & Personal Lines Courses Click above title for courses & dates for 2016

Seminars August 2,3 & 4 John Eubank AM Session: Drones—Unmanned Aerial Vehicles PM Session: Cyber Exposures & Insurance Registration Brochure

Events

On-Demand Webcasts Masters Series: The Master Series are unique agency management courses from industry experts. in the Masters Series.

Cyber Risk Manager (cyRM) Completion of the Cyber Exposures & Insurance – Training for Agents & Brokers course qualifies you to register for the cyRM certification for FREE.

Pre-Licensing Online prelicensing 3 optional study packages available Click here for additional information

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HB 932

Davis, Paula(R) Johns, Ronnie(R)

Provides relative to certain exemptions from the continuing education requirements for producers.

HB 932 reestablishes the “grandfather provision� that exempts insurance producers over 65 years of age from the requirement for continuing education.

Position: Support Bill History: 05-10-16 G Effective

SB 95

Ward(R) Brown, Chad(D)

HB 1165

Huval, Mike(R) Erdey, Dale(R)

Provides relative to evidence of compulsory motor vehicle insurance.

SB 95 is the first state law in the country to allow a motorist to provide proof of compulsory automobile insurance by electronic means at the time law enforcement requests proof of coverage. This means that policyholders may provide proof of coverage through traditional insurance cards, a digital image of insurance cards, or via a text or email copy of proof of insurance sent to the policyholder.

Position: Support Bill History: 08-01-16 G Effective Exempts mobile construction equipment from compulsory motor vehicle security requirements. HB 1165 clarifies that mobile equipment is not subject to the statutory automobile financial responsibility requirements.

Position: Support Bill History: 08-01-16 G Effective Continued page 29

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HB 746

Thibaut, Major(D) Morrish, Dan(R)

Provides for licensing and regulation of insurance consultants by the commissioner of insurance. HB 746 requires insurance consultants to be licensed and regulated by the LDI, and includes various consumer protection provisions.

Position: Support Bill History: 08-01-16 G Effective

HB 663

Thibaut, Major(D) Johns, Ronnie(R)

Requires notice to a non-captive insurance producer prior to an insurance company terminating the producer's appointment.

HB 663 requires insurance companies to provide independent insurance agents with 180days advance written notice before terminating an agency agreement.

Position: Support Bill History: 08-01-16 G Effective

HB 935

Hollis, Paul(R) Johns, Ronnie(R)

Provides relative to notice to policyholders of policy changes at renewal.

HB 935 requires insurance companies to outline any reductions in coverage on renewal policies.

Position: Support Bill History: 06-07-16 G Sent to the Governor

HB 476

Huval, Mike(R) Erdey, Dale(R)

Specifies that insurance producers may not be required to provide certain information regarding insurance coverage.

HB 476 eliminates the use of certificate holder forms for certificates of insurance. Only insurance company, ACORD, ISO and AAIS certificate of insurance forms may be used under the terms of the new statute.

Position: Support Bill History: 08-01-16 G Effective

Company Peerless Indemnity Ins Co Peerless Ins Co Netherlands Ins Co America First Ins Co

Coverage Type Commercial Property (Fire & Allied Lines)

Overall % Impact: 8.00%

Overall $ Impact: $320,058

Number of Policyholders: 660

Changes New: 3/2/2017 Renewal: 3/2/2017

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Auto Insurance Affordability Problems

Linked to Underlying Cost Drivers MALVERN, Pa.—Medical utilization rates exceeding national norms are a major contributor to high claim costs in eight of the 12 least affordable auto insurance systems, according to a new report from the Insurance Research Council (IRC). In these eight states (Delaware, Florida, Kentucky, Michigan, Nevada, New Jersey, New York, and West Virginia), the percentage of auto injury insurance claimants who received diagnostic services, such as magnetic resonance imaging (MRI) and computed tomography (CT) scans, or were treated by specific types of providers, such as chiropractors and physical therapists, was higher than the countrywide average. In many cases, utilization rates were much higher than countrywide averages. Higher medical utilization rates lead to higher injury claim costs, which contribute to higher insurance coverage costs. Other significant cost drivers in the systems examined included high injury claim frequency rates, extensive attorney involvement and high rates of claim abuse.

from the IRC’s auto injury closed claim database and the Fast Track Monitoring System to measure and compare injury claim outcomes and system performance in states where the cost of auto insurance, on average, is highest when compared with median household income. In these 12 jurisdictions, the cost of auto insurance is considered least affordable among all the states. However, in three of the states examined, below-average household income is a significant reason why auto insurance costs are less affordable than in other states.

For more detailed information on the study’s methodology and findings, contact David Corum at IRC@TheInstitutes.org or by phone at (484) 831-9046. For more information about how to purchase the report, visit the IRC’s website at www.insurance-research.org.

Several of the cost drivers discussed in the report often accompany each other in the states where they are identified. For example, half of the states with high medical utilization rates also experience above-average rates of attorney involvement. Every state, however, was found to face its own unique mix of cost-drivers.

For example, only two of the states examined (Florida and Louisiana) were found to have bad-faith litigation environments contributing to high costs and affordability problems.

“Utilization of medical services inconsistent with evidence-based standards and national norms has been a well-known problem in the general health care system.

The findings presented in this report suggest that similar utilization patterns plague auto injury compensation systems in several states,” said Beth Sprinkel, senior vice president of the IRC. “Without effective action to address medical utilization issues in auto injury claims, high claim costs will continue to fuel affordability concerns.”

The IRC study, Affordability in Auto Injury Insurance: Cost Drivers in Twelve Jurisdictions, relied on data Louisiana Agent 30

By: Steve Anderson

Why You Should Consider Using a Standing Desk Over ten years ago I was visiting the newly renovated office of a premium finance company. The renovations were specifically designed to encourage interaction among employees and enhance the company culture.

Each desk was custom designed and had a button that allowed the user to increase the height of the desk — using an electric motor — so they could stand while they worked. The electric motor made it easy to adjust the height of the desk at any time.

This was the first time I’d seen a standing desk used in an office environment. I was intrigued.

I did not think again about having a standing desk until a couple of years ago when I started reading material about the health issues with sitting all day and the benefits of using a standing desk. As a professional speaker, I often spent hours standing in front of a group presenting. So, I was used to being on my feet.

I began searching for a sensible standing desk option for my office. I do not see clients in my office, so it is bare bones. I did not want to spend a significant amount of money on a standing desk. Some models I looked at cost over $2,000. They certainly were nice, but unnecessary.

I ended up purchasing a from VARIDESK. There on this type of standing

height-adjustable standing desk were several reasons I decided desk.

The cost was reasonaping you can add a standoffice. This is quite a bit options I explored.

ble: For $400-$500 plus shiping desk option to an existing less expensive than the other

Fully adjustable: The desk is easily adjustable from sitting height to standing height. This gives you more options during your workday.

Better than homemade: I had explored the possibility of making my own standing desk. I even looked at IKEA for lower cost options. However, in the end, it made more sense for me to purchase a solution.

I’ve been using the VARIDESK for over a year now and continue to be impressed with its quality and solid feel.

Some of the benefits I’ve experienced by standing while working include: My shoulders do not hurt anymore — I was having quite a few problems with my shoulders and neck from sitting in a desk chair all day. This pain has gone away with my standing desk.

More energy — I feel more energized from being on my feet. This is especially apparent to me when I am talking on the phone and/or giving a webinar. It is much easier for me to get into “presentation mode” when I am standing than when I am sitting. I feel like that higher level of energy allows me to communicate better in non-face-to-face situations.

Continued page 32 Louisiana Agent 31

More focus — I tend to think and concentrate better when I can move. I am standing and pacing while writing this article and using Dragon NaturallySpeaking voice recognition software to "type" the content.

If you go online and search for “benefits of standing desk” you will see some articles talking about the benefits and the negatives of using a standing desk. I do believe there are health benefits to using a standing desk, but like anything, it can be overdone.

I do recommend you explore the option of adding a standing desk to your office or workstation. For me, VARIDESK has been a great choice, and I recommend it.

If you want to explore the do-it-yourself route, Bob Vila has an article on standing desk projects that you may find helpful.

Do you use a standing desk? If not, why not? If yes, what have been the benefits you have experienced?

Let me know.

Don’t miss out on the fun!!

SAVE THE DATE 115th IIABL Annual Convention & Exposition June 18-21, 2017

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IIABL 2015—2016 BOARD OF DIRECTORS & OFFICERS David Dethloff President Dethloff & Associates—Shreveport Richard D. Jenkins President Elect Moore & Jenkins Insurance—Franklinton

Neil Record Secretary/Treasurer Record Agency, Inc.—Clinton H. Lee Schilling, Jr. National Director Schilling & Reid Insurance—Amite

Ross Henry Henry Insurance Service—Baton Rouge Bret Hughes Hughes Insurance Services—Gonzales Philip McMahon Paul’s Agency—Morgan City Lydia McMorris Young Agent Representative Regions Insurance—Baton Rouge Joseph A. O’Connor, III The O’Connor Insurance Group—Metairie

Mickey Bennett Past President Bennett Seymour Insurance—Monroe

Paul Owen John Hendry Insurance Agency-Zachary

John L. Beckmann, III J. Everett Eaves—New Orleans

Martin Perret Quality Plus—Lafayette

Byram H. Carpenter, III Moreman, Moore & Co—Shreveport

David T. Perry Arthur J. Gallagher RMS—Baton Rouge

Brenda Case Lowry-Dunham, Case & Vivien—Slidell

Robert Riviere Riviere Insurance Agency—Thibodaux

Joseph Cunningham, Jr. Cunningham Agency—Natchitoches

Armond Schwing Schwing Insurance Agency—New Iberia

Donna DiCarlo Riverlands Insurance Services—LaPlace

Michael D. Scriber Scriber Insurance Services—Ruston

Morris Funderburg Reeves, Coon & Funderburg—Monroe

Donelson P. Stiel David H. Stiel, Jr. Agency—Franklin Louisiana Agent 35