Louisiana Agent May 2016

The good and the bad‌.how did we do in the legislative session?

Legislature Passes Major Insurance Bills

IIABL STAFF Jeff Albright Chief Executive Officer jalbright@iiabl.com 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

Don’t Miss the Convention Big I: The Force Awakens

4-8 11

6000 Louisiana Consumers Visit TrustedChoice.com in April

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7 Tips For Avoiding E&O Exposures

25

LA Citizens Intro to Epic Commercial Lines

26-30

Tech Tips

31-32

Karen Kuylen Director of Accounting kkuylen@iiabl.com

Local News

E. Lee Mowe Marketing Representative lmowe@iiabl.com

Commissioner’s Corner

13—16

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

Ask Mike

19—25

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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Legislature Passes Major Insurance Bills With two weeks remaining in the 2016 Regular Session of the Louisiana Legislature, all but a handful of insurance bills have been killed or passed by the legislature and sent to the governor for signature.

So, how did we do?

Leading into this legislative session, there was very little activity related to possible insurance legislation. It was spooky quiet. The insurance industry had no major legislative initiatives.

The Louisiana Department of Insurance had a legislative package, but did not anticipate major controversy. Legislators were busy with the First Special Session and very few insurance bills were prefiled in advance of the prefiling deadline.

Then all Hell broke loose!

At the last minute, legislators filed 143 insurance related bills that IIABL monitored and lobbied. There were more important insurance bills in this 2016 session‌both good and bad‌ than we have had since the aftermath of Hurricanes Katrina and Rita. In the end, the insurance industry fared extremely well. Virtually all of the bad bills opposed by the industry were amended to remove objections or killed in the legislative process. An impressive list of very helpful bills were passed by the legislature. Following are two lists of the most important insurance bills of the 2016 Regular Session of the Louisiana Legislature.

1)

Important Insurance Bills Supported & Passed

2)

Important Insurance Bills Opposed & Killed Continued page 5

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Important Insurance Bills Supported & Passed HB 184

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

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

HB 184 will require insurance companies who increase premiums following the reporting of claims below the deductible, to disclose such practice to policyholders.

Position: Bill History:

HB 280

Broadwater, Chris(R)

Position: Bill History: HB 476

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

Position: Bill History: HB 596

Huval, Mike(R) Erdey, Dale(R) Position: Bill History:

Support 5/19/16 G Sent to the Governor Provides with respect to group self-insurance funds for workers' compensation.

HB 280 would enhance the ability of LDI to regulate the financial solvency of Workers’ Compensation Group Self Insurance Funds.

Support 5/9/16 S Referred to Senate Committee on Senate Labor and Industrial Relations Specifies that insurance producers may not be required to provide certain information regarding insurance coverage.

HB 476 will streamline the issuance of certificates of insurance by requiring the use of ACORD and other industry standard COI forms.

Support 5/17/16 G Sent to the Governor Provides for notification and effectiveness of a material change in a contract between a health insurance issuer and a producer.

Support 08-01-16 G Effective

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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 will require insurance companies to give independent agents 180-days notice before terminating their agency agreement.

Position: Bill History:

HB 746

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

Provides for licensing and regulation of insurance consultants by the commissioner of insurance.

Position: Bill History:

HB 915

HB 932

Support 08-01-16 G Effective

Huval, Mike(R)

Support 05-23-16 G Enrolled Provides relative to the sale of policies issued by the Louisiana Citizens Property Insurance Corporation.

HB 915 will limit the sale of LA Citizens’ policies to resident Louisiana agents in retaliation to similar limitations in MS & TX.

Position: Bill History:

Support 05-23-16 S Set on the Senate Orders

Position: Bill History:

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

HB 932 provides for an exemption from continuing education requirements for insurance producers over age 65.

Support 05-10-16 G Effective

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

Continued page 7

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HB 935

Hollis, Paul(R)

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

HB 935 will require insurance companies to provide written notice to policyholders of any reduction in coverage on renewal policies.

Position: Bill History:

HB 1165

Huval, Mike(R)

Exempts mobile construction equipment from compulsory motor vehicle security requirements. Substitute for HB 854.

Position: Bill History:

SB 95

Support 05-23-16 S Set on the Senate Orders

Ward(R) Brown, Chad(D)

Support 05-18-16 S Referred to Senate Committee on Transportation Provides relative to evidence of compulsory motor vehicle insurance.

SB 95 allows a motorist to provide proof of compulsory motor vehicle insurance electronically at the time it is requested by a law enforcement officer.

Position: Bill History:

Support 05-18-16 G Sent to the Governor

Continued page 8

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Important Insurance Bills Opposed & Killed HB 345

Broadwater, Chris(R)

Provides relative to confidentiality with respect to workers' compensation.

HB 345 would have made workers’ compensation policy information searchable public records.

Position: Bill History:

HB 352

Huval, Mike(R)

Opposed 03-02-16 H Referred to House Committee on House Labor and Industrial Relations Provides for the retention of certain insurance records by producers and adjusters.

HB 352 would have required insurance producers and adjusters to retain specific insurance records for 5 years after policy expiration.

The specific requirements were not practical.

Position: Bill History:

HB 611

Brown, Chad(D)

Opposed 04-27-16 H Voluntarily Deferred in Committee House Insurance Provides relative to confidentiality with respect to workers' compensation.

HB 345 would have made workers’ compensation policy information searchable public records.

Position: Bill History:

Opposed 03-04-16 H Referred to House Committee on House Labor and Industrial Relations

Continued page 10

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Important Insurance Bills Supported & Passed

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SB 44

Gatti(R)

Provides for workers' compensation insurance premium reductions to certain employers.

Position: Bill History:

SB 103

Smith(R)

Johns(R)

Gatti(R)

03-22-16 S Voluntarily Deferred in Committee Senate In-

Opposed 03-29-16 S Returned to the calendar - subject to call Provides relative to the authority of the commissioner to address violations of rules and regulations.

Position: Bill History: SB 343

Opposed

Provides for the confidential treatment of papers, documents, reports, or evidence related to an investigation by the division of insurance fraud within the Department of Insurance.

Position: Bill History:

SB 200

05-19-16 H Sent to the Legislative Bureau Provides for notification to the commissioner of insurance of breaches of data security in systems containing certain personal information relating to consumers.

Position: Bill History: SB 192

Opposed

Gatti(R)

Opposed 03-30-16 S Voluntarily Deferred in Committee Senate InProvides relative to the issuance of private letter rulings by the commissioner of insurance.

Position: Bill History:

Opposed 05-10-16 H Voluntarily Deferred in Committee House Insurance

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Don’t Miss the IIABL Convention!

Success is often determined by WHO you know…not WHAT you know. At the IIABL convention, you can visit with all of the best insurance agents, companies and brokers from Louisiana. Don’t miss the 2016 IIABL Convention scheduled for June 19-22, 2016 at the Sandestin Beach Hilton! Visiting exhibitors at the trade show and meeting with companies and brokers in the relaxed beach environment of Destin will help you build relationships and your agency.

You can also expand what you know at the convention by attending our interesting business sessions. Mary Eisenhart will have three different sessions addressing the most important agency management issues for independent agents today. Jeff Albright and David Tatman will discuss important new insurance legislation passed during the 2016 Legislative Session.

Insurance Commissioner Jim Donelon will talk about current insurance regulatory issues in Louisiana. IIABA President-Elect, Spencer Houldin, will report on national issues for independent agents. Twelve hours of continuing education will be available at the convention this year.

Of course, there will also be plenty of food, drink, and good times at the convention.

Whether you like golf, fishing, or just hanging out at the pool or beach, there are fun activities for everyone. The Wise Guys will provide the music and entertainment for the closing party.

Networking, education and a great time are all good reasons why you don’t want to miss out on the 2016 IIABL Convention. Register now by clicking HERE.

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Commissioner’s Corner

Flood Insurance Update Flood insurance is one of the most critical insurance needs in our state and a timely topic considering the severe weather we experienced this spring. In March 36 parishes received federal disaster declarations and just weeks later Houston experienced deadly flooding. The Federal Emergency Management Agency (FEMA) reports nearly 5,000 claims have been filed in Louisiana for the flooding that occurred in March and more than $118 million has been paid out in claims. Unfortunately this is not a rare occurrence as floods are the most common natural disaster in the United States. FEMA statistics show that Louisiana property owners have filed more than 400,000 claims since 1978, for more than $16.7 billion in damages with claims coming from all of the state’s 64 parishes. The numbers point to the necessity of flood insurance, not only in our state but across the nation. So as we prepare to enter hurricane season, I’d like to address some of the develop-

ments in the flood insurance arena at the local and national levels.

Following Hurricanes Katrina and Rita, FEMA’s National Flood Insurance Program (NFIP) saw a significant increase in the number of flood insurance policies purchased in Louisiana – from about 380,000 policies in 2003 to nearly 500,000 policies by 2006, an increase of about 30 percent.

But that figure has been on the decline in recent years – with the number of flood policies dropping back down to 450,000 policies today. This number has dropped by 10,000 just since 2015. Louisiana still has the third most NFIP policies after Florida and Texas and we have, by far, collected the most payments from the NFIP. Louisiana has received about $16.7 billion in payments over the last 35 years. The next closest states in terms of payouts are Texas, New York and New Jersey that have each received about $5 billion from the NFIP. Serving as the primary provider of flood insurance with subsidized premiums has put the NFIP in the red, while consumers have had few choices when it comes to flood coverage. Removing barriers to the development of a private market for flood inContinued page 14

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surance will help provide options and possible savings. There is legislation that has received widespread support in Congress that would open up the flood insurance market to more private insurers. The Flood Insurance Market Parity and Modernization Act, which was passed unanimously by the U.S. House of Representatives in April, provides for additional choices for flood insurance products. The bill clarifies language in the Biggert -Waters Act of 2012 regarding the ability of privately issued flood insurance to meet lenders’ mandatory purchase requirements.

The Market Parity and Modernization Act encourages new private market development as an alternative to the National Flood Insurance Program (NFIP) while maintaining strong consumer protections. I commend the House of Representatives for passing this bill and encourage the Senate to act quickly to pass this bipartisan legislation.

Closer to home, FEMA has released new flood insurance maps for the New Orleans area which indicate lower premiums for many property owners within the upgraded hurricane levee system.

Some homeowners are no longer required to purchase flood insurance due to being removed from

the Special Flood Hazard Areas. This is due in large part to the levee system improvements that are the result of a $14.5 billion project by the U.S. Army Corps of Engineers. The Hurricane and Storm Damage Risk Reduction System consists of 350 miles of levees and floodwalls as well as dozens of pumping stations across a five-parish area (Orleans, Jefferson, St. Bernard, Plaquemines and St. Charles parishes). I took a tour of this system and was truly impressed with the results. This network of levees, floodwalls and pumps provides protection for 100-year events and reduces the risk from even larger storms.

FEMA has submitted the new maps to the New Orleans City Council which has six months to adopt them. A vote is expected this summer.

Should the council approve the new maps, policyholders in Orleans Parish can expect to see changes in insurance rates at their next renewal date.

While this is a positive step, indicating that the time and money invested into the upgraded levee system has been successful, I would caution anyone who is no longer required to purchase flood Continued page 16

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insurance to think hard about the decision.

Homeowners that are no longer in these risk zones according to the maps can still be affected by a flood event. In fact, policyholders outside of mapped high-risk flood areas file a quarter of all National Flood Insurance Program claims and receive one-third of Federal Disaster Assistance for flooding. I strongly recommend maintaining flood insurance whether the maps require it or not.

I have written on the topic of flood insurance in previous columns, addressing the drastic rate increases under Biggert-Waters that came with the reauthorization of the National Flood Insurance Program in 2012. Fortunately, those increases were modified by the subsequent passage of the Homeowner Flood Insurance Affordability Act of 2014. All of the issues (including affordability and the NFIP’s $23 billion debt) surrounding flood insurance will be revisited during the debate surrounding the NFIP reauthorization in 2017.

I am pleased that we are seeing some positive developments regarding flood insurance in the first half of this year but want to ask for your cooperation in continuing to bring attention to an issue that is so important both here at home and across the nation.

Selective Insurance is the Big I Endorsed Flood Carrier For additional information contact:

Gregg Porter Sr. Flood Territory Manager- AL, LA & MS Selective Insurance Company of America 225-397-3658 gregg.porter@selective.com

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6000 Louisiana Consumers Visit TrustedChoice.com in April Louisiana Consumers Are Looking For Agents…Will They Find You? At the beginning of this year, the IIABL Board of Directors authorized an expenditure of $35,000 to qualify for a Trusted Choice matching grant to fund a $70,000 TrustedChoice.com search engine optimization (SEO) plan.

Over the past several months, TrustedChoice.com has been building individual website pages for specific Louisiana towns and specific lines of insurance coverage. As of the end of April, TrustedChoice.com has built: 111 Louisiana Specific Website Pages Highlighting Louisiana Cities and Various Lines of Insurance Coverage

on Google page two 291 of those Keyword Search Terms appear on Google page three + 503 of those Keyword Search Terms are not yet ranked on Google Keyword Search Terms will move up in Google rankings as pages are built and optimized. TrustedChoice.com will continue to add Louisiana specific webpages and keyword search terms to improve the Louisiana SEO. So, what does this mean? Does it make any difference to IIABL member agencies like you?

1,490 Louisiana Specific Keyword Search Terms 461 of those Keyword Search Terms appear on Google page one

Following is the traffic pattern of Louisiana specific consumers looking for Louisiana

235 of those Keyword Search Terms appear

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independent agents on TrustedChoice.com.

December: 1,706 January: 2,739 February: 2,532 March: 4,234 April: 6,056 This dramatic increase in Louisiana consumers looking for Louisiana independent agents on TrustedChoice.com provides IIABL member agencies with real opportunities to write business!

The IIABL / TrustedChoice.com Louisiana insurance Search Engine Optimization program has already providing increased visibility, visits and referrals to our IIABL member agencies.

To maximize the visibility of your agency on TrustedChoice.com, you need an Advantage Subscription, which will move your agency to the top of the agency search list and provide you with an expanded Agency Profile. If you haven’t signed up for your Advantage Subscription to TrustedChoice.com, you can sign up at www.agents.trustedchoice.com.

When consumers search for Louisiana insurance agents on TrustedChoice.com, they can search for a Big I member in their area. 70%-80% of consumers who find Big I member agencies at TrustedChoice.com end up calling the agency for an insurance quote. Other consumers end up on the agency website. And some complete the TrustedChoice.com consumer profile which is sent directly to the Big I member agency of their choice.

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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: How to Misread an Insurance Policy Q. I’ve got one of those questions where your eyes tell you one thing, but your insurance-brain-thatnever-shuts-off tells you something else. While this particular question is a Homeowners claim, I think this issue applies equally to commercial lines.

age F – Medical Payments, do not apply to the following types of recreational equipment or devices:

Our insureds rented a bounce house for their daughter’s birthday party. Of course, we know what came next. A child coming down the slide suffered a trimalleolar fracture of her ankle, which is going to require several surgeries.

(c) Supported by springs in a metal frame;and

The adjuster’s initial response was that the injury was excluded by an endorsement the insurer has been attaching to all Homeowners Policy for several years. I am attaching a copy for your review. Here is the “eyes vs brain” problem: While it’s clear that the bounce house could be considered a “Rebounding device... Constructed of a resilient sheet or web, as the endorsement says, I’m not completely sure that this is the intent of the exclusionary endorsement.

(a) A rebounding device; (b) Constructed of a resilient sheet or web;

(d) Used as a springboard and landing area in tumbling and gymnastic springing.

Comments:

In fact, I seem to recall that when the insurer began using this endorsement, the explanatory information (or maybe what the underwriter told me) indicated that the purpose was to exclude trampolines. What do you think?

A. After reading the endorsement, I see your point.

Not only do I agree with your brain’s interpretation, I think your brain needs to give your eyes a stern lecture. Look again at the endorsement you attached to your email. I think your eyes (and probably the adjuster’s eyes also), stopped reading too early.

Exclusion Certain Recreational Equipment or Devices 1. Coverage E – Personal Liability and CoverLouisiana Agent 19

(1) The first two parts of the exclusion [1.(a) and 1.(b)] do seem broad enough to include a bounce house.

(2) Also, the bounce house might be “supported by springs” [1.(c)], and “used for tumbling” [1. (d].)

(3) However, the provision must be read in its entirety (vs picking out selected parts). In doing so, I think the conjunction “and” appearing at the end of 1.(c) is key. For the exclusion to apply, the equipment or device must possess all four characteristics. My reading of the entire exclusion is that it is aimed at a trampoline. In fact, Merriam-Webster’s Unabridged defines a trampoline as follows: “a resilient canvas sheet or web supported by springs in a metal frame used as a springboard in tumbling and exercising.”

(4) Lastly, the insurer of the party host clearly has a duty to provide an initial defense to any litigation.

Your situation serves as an excellent reminder to all insurance practitioners (newbies and veterans alike) to read the entire provision in a coverage form or endorsement. Here are a few other examples which illustrate how easy it is to misread

an insurance policy.

Situation #1: “The Adventures of Semi-Colon Man.” In addition to the importance of conjunctions such as “and” in the above case, there are many situations where a simple punctuation error can completely change the intent of a coverage form or endorsement. In this humorous article by Bill Wilson, CPCU, ARM, Director of the IIABA’s Virtual University, he relays the story of how he received the nickname “Semi-Colon Man” during his tenure at ISO (Insurance Services Office).

“The Adventures of Semi-Colon Man”

Situation #2: Know the edition date.

The familiar idiom “change is the only constant” certainly applies to insurance. One coverage situation which arises frequently deals with the offpremises use of riding lawnmowers. Note that while the wording changes are subtle, the coverage changes are substantial.

Section II Exclusions Motor Vehicle Liability

HO 00 03 05 11 Used solely to service a residence.

HO 00 03 10 00 Used solely to service an "insured's" residence.

HO 00 03 04 91 Used to service an "insured's" residence.

HO 00 03 04 84 Used to service an insured’s residence.

Here are several articles posted on the IIABA’s Virtual University (VU) dealing with coverage issues for riding lawnmowers: “Are Riding Mowers Covered by the HO Policy?

Are You Sure?”

Mower.”

“Insuring Lawn Tractors Used Off Premises” “No Coverage for Riding Mower Until It’s Actually Used?”

Situation #3: Know the edition date and read the entire provision of the exclusion.

In July of 2014, a 30-inch water main almost 100 years old failed, and resulted in approximately 20,000,000 gallons of water damaging buildings and over 1,000 cars on the UCLA campus. It was big news in the insurance world, with commentary and analysis sparking heated discussions about the wear and tear exclusion, the surface water exclusion, as well as exceptions to those exclusions.

This Virtual University article discusses how important the edition date would be for the applicable commercial property form, since the newer edition provided an exception to the wear and tear exclusion, but which is found at the very end of

“Homeowners Coverage Gaps? Here Are Some Continued page 22

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the CP 10 30. In addition, the article explains how the ISO Commercial Property coverage form, the Homeowners Policy, and the Personal Auto Policy (PAP) differ with each other on wear and tear losses.

“Commercial Property Coverage for Public Water Main Breaks” Situation #4: ISO vs. proprietary forms and endorsements.

Yet another dimension to knowing the edition date is to be aware of how proprietary forms differ from ISO – both in edition dates as well as coverage. A comparison of ISO forms to proprietary forms reminds me of the public embarrassment that NASA endured in 1999, when the unmanned Mars Climate Orbiter mission went awry into deep space because one design team was using the metric system in its calculations, while another team was using the English system. It never occurred to either team to be sure they were using the same measurement system.

Here is a comprehensive article on ISO forms vs proprietary forms posted on the Virtual University: “Is It ISO or Is It Memorex?”

Situation #5: Loading and unloading an auto.

The loading and unloading of an auto could fall under either the CGL (Commercial General Liability) or BAP (Business Auto Policy), depending on specific facts for each situation. Most common losses in loading and unloading are covered by the BAP. One exposure that requires a very close reading of the loading and unloading provisions is when a customer’s auto is involved. Excerpt from the ISO CGL: CG 00 01 04 13 Commercial General Liability Coverage Form Section I – Bodily Injury and Property Damage 1. Exclusions g. Auto, Aircraft or Watercraft "Bodily injury" or "property damage" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any insured. Use includes operation and "loading or unloading".

Section V – Definitions 11. "Loading or unloading" means the handling of property: a. After it is moved from the place where it is accepted for movement into or onto an aircraft, watercraft or "auto" Comments: (1) The auto exclusion has two parts, both of which must be met in order for the exclusion to apply. The first part excludes the “ownership, maintenance, use [which includes loading or unContinued page 24

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loading], or entrustment to others” of certain autos. In the definition of “loading and unloading,” (see 11.a. above), once the loading or unloading of a customer’s auto has begun, the CGL exclusion is usually triggered.

(2) The second part of the auto exclusion applies to autos which are “owned or operated by or rented or loaned to any insured.” This is the provision that is often overlooked. A customer’s auto being loaded or unloaded is not “owned or operated by or rented or loaned to any insured.” Therefore, the CGL exclusion would not apply.

Here are two VU articles: “Coverage While Loading or Unloading NonOwned Autos” “Loading and Unloading – CGL or BAP?” 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.

7 Tips For Avoiding E&O Exposures Claims are on the rise over the last few years due to the recent weather-related catastrophes. As we approach storm season here are some helpful reminders on how to avoid E&O exposures when handling these claims.

1) Never confirm or deny the existence of coverage provided by the policy—that is the duty of the insurance carrier.

2) Advise the client what to expect during the claims settlement process and any duties they are required to perform.

3) Review policy provisions of all policies where coverage may exists, including excess and umbrella policies.

4) Report claims to the carrier on the same day they are received.

Continued page 30

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Webcasts E&O Risk Management June 7, 14,16 & 23

Ethics June 7, 9 & 16

Flood June 29

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 Topic: TBD

Events IIABL Annual Convention June 19-22, 2016 Sandestin Beach Hilton Destin, Florida THE BIG I AWAKENS!

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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Louisiana Citizens Property Insurance Enhancements of EPIC Commercial EPIC Commercial Lines will be available June 6, 2016 for new business and September 1, 2016 for renewals.

Changes to look forward to:   

    

mercial lines. The required payment must be received by the due date; if not, a notice of cancellation for non-payment will be issued and premium refunds may occur.

Renewal Process

Renewal declarations and Invoice will be issued 60 days prior to renewal instead of Renewal Quote Letters.

If the renewal payment is not received by the renewal date, a notice of expiration will go out.

Renewals

Pay Plans

All new business and renewals will be issued on our 4 pay plan.

Down payment is 25% of premium + fees and taxes.

Installments 2, 3, & 4 are 25% of premium.

The insured can choose whether to pay in full at renewal/inception date to avoid the pay plan fee or pay in installments.

We are moving to due date billing for com-

Coverage Confirmation Letter     

  

This replaces the binders used in LPMS. LCPIC requires at least the $65 nonrefundable application fee to issue the Coverage Confirmation Letter.

Coverage Confirmation Letter confirms coverage for seven (7) days after effective date.

LCPIC must receive the required down payment within seven (7) days for coverage to be provided on the risk listed on the letter.

If payment is not received by the close of business on day seven (7), coverage is not provided.

Producers will have the ability to: Issue New Business Endorse existing business Request cancellations

Continued page 30

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Company

Coverage Type

Overall % Impact:

Overall $ Impact:

Number of Policyholders:

Changes

Imperial Fire & Casualty

19 – Private Passenger

9.300%

$358,554

2199

New: 5/516 Renewal: 6/10/16

North Pointe Ins Stonington Ins Co

16- Workers Comp

7.70%

$374,022

138

New: 5/1/16 Renewal: 5/1/16

National Trust Ins

19 – Commercial Automobile

-10.000%

-$174,640

118

New: 8/1/16 Renewal: 8/1/16

Allstate Insurance

19 – Commercial Auto

15.000%

$1,585,654

2756

New: 6/13/16 Renewal: 8/24/16

American Home Assurance AIU Ins Co Commerce & Industry Ins Illinois National Fire Ins National Union Fire Ins New Hampshire Ins Ins Company of Pennsylvania AIG Assurance AIG Property Casualty Co.

16 – Workers Comp

2.100%

$1,538,159

302

New: 5/1/16 Renewal: 5/1/16

EMC Property & Casualty Company Emcasco Insurance Company Employers Mutual Casualty Company

Commercial General Liability

-9.2%

$-743,771.00

2934

New: 8/15/2016 Renewal: 8/15/2016

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EPIC Commercial Lines Webinar Training Louisiana Citizens Property Insurance Corporation is pleased to announce the following Webinar dates for EPIC Commercial Lines training.

Please share these dates with your staff.

Please select the link for the date and time you like to attend.

Webinar 06/01/2016 @ 9:00 AM

Webinar 06/08/2016@ 9:00 AM

E&O Tips continued 5) Maintain claims handling procedures in the agency internal procedures manual.

6) Implement a suspense system to follow-up during the claims settlement process including documentation of each contact with the client and carrier.

7) Follow-up until claims are resolved.

For additional information on the IIABL Professional Liability Program please contact: Rhonda Martinez, rmartinez@iiabl.com or 225.236.1352 or

For more information, visit us on the web at http://agents.lacitizens.com

Jamie Newchurch, jnewchurch@iiabl.com or 225.236.1350

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By: Steve Anderson

Easily Pay Your Bills By Emailing Your Checks I’ve written extensively about the need for insurance agents to accept electronic payments. It seems that everywhere you look there is a new electronic payment service available such as Apple, Google, Amazon, Strip, and who knows how many others.

To help explain the issues involved, I wrote a white paper detailing why now is the time to update your payment process.

Being able to pay your own agency bills electronically has previously not been easy or possible – until now.

Deluxe Checks has created a secure process — called Deluxe eChecksPro — that allows you to send a check to anyone with an email address to pay your bills. You may know Deluxe Check as the company that sends the little box of paper checks when you open a bank account.

And, yes, you read that correctly. I can now send a check payment to anyone with an email address, at the speed of email using the Deluxe eCheck platform.

Here’s how it works: 1. Create an eChecksPro account. Signing up for an account takes just a few minutes. Once you've created an account, simply add a checking account and select the quantity of checks that's right for you (the first five are FREE). You can begin sending and receiving checks. Security is enhanced with the Separation of Controls feature that allows you to add other users with specific authorizations that you, as the owner of the account, can choose.

2. Create a single check to send or set up to send multiple checks. It is also easy to send batch check runs by exporting a CSV file from your accounting software and uploading it to the eChecksPro service.

With just a few clicks, you can deliver any number of checks quickly and easily.

3. Before you send a check via email, I recommend you send a separate email explaining how the process works.

4. Once the check(s) is created, the eCheckPro platform will send an email to the individual with a link allowing them to go to the eCheckPro site, retrieve and print the check.

5. Once printed, the eCheck contains the same elements as a regular paper check, including routing number, account number, signature, amount, payee, and check number.

6. The printed check(s) can be deposited as it normally would using Remote Deposit Capture by scanning, taking a picture with your smartphone, or just taking the check to the bank as part of your regular daily deposit.

Louisiana Agent 31

To receive your five (5) free checks, set up your account, verify your banking information (there is a video showing the process) and select the “Starter Checkbook.”

The cost of using the eCheckPro platform is about $0.50 per check sent. The per-check price decreases with the more checks you purchase at one time. The cost equals the cost of the stamp you use to mail the check. Seems like a deal to me.

The eCheckPro service from Deluxe is also an interesting example of an old firm learning how to reinvent their service to be relevant in the digital age. We could stand to learn from them.

What are you doing to reinvent your service so you too can be relevant in the digital age? Let me know.

I did quite a bit of due diligence before I was willing to talk about this service. I have received checks via email and deposited them successfully. I have also started to use this service myself to send checks to others for payment of an invoice.

If your local chapter or insurance group would like to include meeting dates, event flyers, etc.

Please send your information to Francine Berendson, fberendson@iiabl.com to be included in the Louisiana Agent Newsletter.

Events Calendar

IIABR Company Appreciation

September 8, 2016

Juban’s Restaurant Mango’s Volleyball

IIAGNO Charity Golf Tournament

September 16, 2016

Audubon Golf Course

August Luncheon

August 11, 2016

Louisiana Agent 32

GOLD LEVEL

SILVER LEVEL

BRONZE LEVEL AMERISAFE

AMERICAS INSURANCE

AMTRUST GROUP

BANKERS INSURANCE

CNA INSURANCE

EMC INSURANCE

FOREST INSURANCE

GULFSTREAM P&C

HOMEBUILDERS SIF

LANE & ASSOCIATES

MAISON INSURANCE

MARKEL FIRST COMP

ASI

LUBA WORKERS’ COMP RPS COVINGTON

SUMMIT CONSULTING

Louisiana Agent 34

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