September 2016 Louisiana Agent

Louisiana Agent September 2016 In summing up the year for Randy Lanoix, Congressman Garret Graves issued a Congressional Record outlining Randy's accomplishments and contributions as Chairman of the national Big I.

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

Big I Provides Financial Assistance to Members with Flood Damages 4-5

Louisiana Big I Recognized at IIABA Fall Leadership Conference 6-7 IIABA Chairman Randy Lanoix Represented Louisiana Well!

8-13

Big I Sues to Halt Misguided Overtime Rule

32

‘Tis the Season to Talk About Jewelry Insurance

33

Kim Jackson Education & Membership kjackson@iiabl.com Karen Kuylen Director of Accounting kkuylen@iiabl.com E. Lee Mowe Marketing Representative lmowe@iiabl.com Rhonda Martinez, CIC Director of Insurance rmartinez@iiabl.com Jamie Newchurch Insurance Services jnewchurch@iiabl.com Lisa Young-Crooks Executive Assistant lyoung@iiabl.com

Commissioner’s Corner

14-16

Ask Mike

19-30

IIABL Calendar

26

Rate & Rule Filings

27

Tech Tips

31

IIABL Partners

35

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Big I Provides Financial Assistance to Members with Flood Damages The Trusted Choice Disaster Relief Fund has paid $69,500 to 18 IIABL member agency staff members who suffered losses from the August flooding in Louisiana.

32 other Big I state associations sent contributions to the Trusted Choice Disaster Relief Fund to assist Louisiana agents following the floods. $1000 - $10,000 to help IIABL members.

14 additional IIABL members have applications in process and will receive grants this week.

The Big I established the Trusted Choice Disaster Relief Fund to provide financial assistance to Big I member agencies and their staff following disasters, and is here to help YOU after the recent widespread flooding.

IIABL, IIABL member agencies, insurance companies, and wholesale brokers have contributed generously to the Trusted Choice Disaster Relief Fund to provide financial assistance to member agencies and their staff. We have funds available to help you!

At the recent national Big I board of directors meeting, Alan Schnitzer, the new CEO of Travelers Insurance Company, announced that Travelers would contribute $50,000 to the Trusted Choice Disaster Relief Fund to assist Louisiana agents devastated by the floods.

If you are an IIABL member agency or staff member of an IIABL member agency and suffered damage from the flooding, we want to provide you with a Trusted Choice Disaster Relief Fund grant!

Please click on the application link below, complete the simple one-page application, Continued page 5

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and submit it with a few pictures of the flood damaged or gutted out office or home.

The Trusted Choice Disaster Relief Fund can provide you with a grant of $3000-$5000 to assist you with your recovery.

TRUSTED CHOICE DISASTER RELIEF FUND The Big “I” established the fund to assist those who have suffered losses due to natural or man-made disasters. The fund makes cash grants to those in the insurance industry, including Big “I” members, their agency staffs and others, to pay for immediate or ongoing financial needs when other funding sources such as insurance and other grants are not available.

members in their communities.

If a loss has occurred and meets the fund’s guidelines, please submit a grant application today. Questions may be directed to Madelyn Flannagan (madelyn.flannagan@iiaba.net).

Click HERE for the Trusted Choice Disaster Relief Fund Guidelines.

Click HERE for a Trusted Choice Disaster Relief Application.

Donate to the Trusted Choice Disaster Relief Fund THE BIG I IS HERE TO HELP YOU!!!

In addition, it is also used to fill a gap until other funding sources can be accessed and to provide insurance agents with supplies and resources to aid victims and surviving family

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Louisiana Big I Recognized at IIABA Fall Leadership Conference IIABL National Director, H. Lee Schilling was recognized for his service as the Chairman of the IIABA Government Affair’s Committee. One of the most prestigious committee’s in the IIABA. IIABA Randy Lanoix awarded H. Lee Schilling with the IIABA Chairman’s Award. The Chairman’s Award reads: “Lee Schilling, who brought prestige and credit the Independent Agency System during his insurance career through eminent accomplishments in his business, civic and personal life and in acknowledgement of such distinguished service, this award is given.”

CONGRATS LEE—WE ARE PROUD TO HAVE YOU REPRESENT IIABL!

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Louisiana Big I Recognized at IIABA Fall Leadership Conference IIABL was also recognized for our education program. The Big ‘I’ Excellence in Insurance Education awards recognize the outstanding contributions by Big ‘I’ state associations through extraordinary efforts to promote quality insurance education.

The EIE awards celebrate and recognize state associations and staff who have made significant contributions to education for their members and the industry in the key area of class offerings, continuing education (CE), professionalism, designation offerings, industry collaboration, planning goals, marketing, resources and more. Each entrant is scored based on a state’s overall educational offerings in a variety of areas and a short essay detailing its overall education programs.

Accepting the Gold Level Award is Francine Berendson, IIABL’s Director of Communications & Events.

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IIABA CHAIRMAN RANDY LANOIX REPRESENTED LOUISIANA WELL!!

IIABL member Randy Lanoix, Lanoix Insurance Agency in Lutcher & Brusly, represented Louisiana very well as the 2015-2016 IIABA Chairman.

Randy’s list of accomplishments on the national level are many and we would like to share with IIABL Members & Associate Members those accomplishments.

1) TrustedChoice.com became profitable and is setting new records almost every week for the amount of new business being generated for members of the Big I. 2) Trusted Choice launched an education effort to improve the phone skills of independent agencies. Trusted Choice’s August campaign for Make-A-Wish reached over one million individuals, but more importantly triggered over 10,000 shares, 45,000 likes and about 1,750 comments from consum-

ers across the country.

3) The Trusted Choice Disaster Relief Fund help numerous agents, their families and their customers following the devastating West Virginia and Louisiana floods.

4) The Big I Diversity Task Force received national recognition and an award for the 3rd year in a row for our work on diversity issues.

5) IA Magazine was presented with national awards and peer recognition for the 3rd year in a row, and changed custom publishers to lower its annual expenses by $100,000 without sacrificing quality.

6) IIABA's Angela Ripley was nominated by the President of the United States to be on the NARAB Board.

Continued page 10

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7) InsurPac raised the most money in the history of our PAC to protect and promote the Independent Agency System.

updated landing page and new look for “Two For Tuesday”, which more states are now sending to all members.

8) IIABA was instrumental in postponement of the Cadillac Tax in the Affordable Care Act.

Underperforming products on Big “I” Markets are being discontinued.

9) IIABA has worked with and provided input to several of the nation's largest carriers to improve their agency appointment agreements for our members.

11) IIABA staff and IAAE officers continue to work together, and the relationship, transparency and trust between national and states has never been better.

10) Much progress was made on implementing IIABA’s Strategic Plan. Some highlights include:

12) IIABA cut additional expenses and made progress in reducing its budget deficit. IIABA consolidated its national headquarters office space, and is close to completing the conversion of about half of a floor into additional tenant space to increase rental income.

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Big “I” Virtual University launched a Talent and Recruitment resource on the member area of the site to provide information on hiring and retaining agency talent, and human resource issues.

Big I Advantage board, working with IAAE, establishes new on-boarding guidelines.

Big “I” Markets task force affirms technology

and prioritizes new development, kicking off an

13) The MEP is offering our members the most comprehensive retirement program available in the marketplace.

14) IIABA renegotiated and signed the Continued page 11

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new Swiss Re/Westport E&O agreement and Selective flood agreement.

15) IIABA purchased an ownership share of InSite Support Services, and gains a seat on InSite's board, which positions the association to provide additional valueadded products and services in the future. Use of InSite (Insure Response) to support our insurance operations has increased, which has resulted in leaner staffing and lower operating costs. At the same time, disaster preparedness for IIABA’s for-profit operations has been enhanced by establishing a lock-box operation with InSite.

16) The Agency Alliance and Large Agency E&O program launched, with funding for a full-time resource provided by Swiss Re, and InSite Support Services’ Insure Response operation was approved as a new wholesaler, allowing states to receive en-

hanced endorsement and incentive income. There has been $2 million in premiums in alliances written. The Big “I” Reinsurance Company converted to a protected cell company, which provides the capacity to offer E&O to larger agencies and agency groups.

17) Big “I” Markets obtains new agency appointments with CNA and QBE, and existing agency agreements expanded with RLI (A&E, general commercial and jewelry), Allianz (commercial), AXA (inland marine), Gales Creek-WR Berkley-Starr (Events), and other major expansions in existing appointments, with new appointments in process.

18) Big I Advantage surpasses an average of $1 million paid out annually to Big “I” State Associations in quarterly revenue sharing on non-E&O for Big “I” Markets, flood, retirement/benefits, RLI PUP incentives and several non-insurance and other products. CurContinued page 13

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rent payouts are $1.5 million.

19) Cyber Program with Beazley/Arlington Roe exceeds $1 million in premiums.

20) The E&O Happens website was launched in SharePoint, enhancing look and feel with availability of claims data, access to Virtual Risk Consultant and search on agency risk management advice.

21) State Marketing Activity Center was totally updated with a new SharePoint infrastructure, easing state access to existing marketing materials and allowing for trackable requests for customization by the Big I Advantage marketing team.

22) For new member mailings, State Associations can opt-in and have Big I Advantage staff send out via USPS a welcome package, and for the first 12 months, new members receive a monthly

spotlight email on a Big I Advantage product/program.

23) The Big “I” Agent Development department created a new downloadable Best Practice product, "The Customer Service Experience", and also created a classroom component from the content for use by state association education departments.

24) Big “I” Virtual University added a First Monday Live webcast show offering the latest industry information in a talk show format, with hundreds of listeners on the first Monday of each month.

25) ACT developed the Agency Security Pocket Guide, which has been distributed to thousands of agencies.

26) More than 2,100 agencies were nominated to participate the 2016 Best Practices Study, with 260 agencies achieving Best Practices status, the largest number since

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the study begin.

27) Best Practices program launched a series of free 15minutes webinars on topics relating to agency benchmarking, productivity and management, with more than 1,000 attendees registered for each segment.

28) We successfully converted all the Co-Branded Website states to the new SharePoint platform, providing a responsive and mobile -friendly platform.

Bob Rusbuldt, IIABA CEO presents IIABA Outgoing Chairman, Randy Lanoix with the Congressional Record recognition.

In summing up the year for Randy Lanoix, Congressman Garret Graves issued a Congressional Record outlining Randy's accomplishments and contributions as Chairman of the national Big I.

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Commissioner’s Corner

A Harsh Reminder of the Importance of Flood Insurance Over the last several years, I have addressed the topic of flood insurance nearly half a dozen times in these monthly columns – from the draconian rate increases under Biggert-Waters that came with the reauthorization of the National Flood Insurance Program (NFIP) to the changes brought about with passage of the Homeowner Flood Insurance Affordability Act of 2014. These issues, as well as affordability and the NFIP’s $23 billion debt, will be revisited during the debate surrounding the NFIP reauthorization in 2017. But the immediate issues for us as regulators and agents along the Gulf Coast are how to

improve the low take-up of flood insurance as well as heighten understanding of the differences between homeowners and flood insurance.

Data recently provided to us by FEMA illustrates how widespread the lack of take-up is in the NFIP. As of July 2015, the statewide penetration among Louisiana homeowners was 20.8 percent. For the following cities the take-up was as follows: Lake Charles (16.5 percent); Lafayette (14.1 percent); Baton Rouge (11.9 percent); Monroe/West Monroe (7.0 percent); and Shreveport (4.7 percent).

Only New Orleans with a take-up of 39.1 percent exceeded the statewide average.

Despite those low figures, consider the picture in Tennessee, where in 2010 a devastating flood shut down Nashville, including the Grand Ole Opry, and where officials just declared a state of emergency in July after floods prompted evacuations. According to FEMA, only 16,000 of 900,000 residential

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structures in Nashville - just 1.8 percent have NFIP policies. And while we have higher participation than the vast majority of other states, the level of NFIP penetration in Louisiana is disappointing.

Despite our efforts to raise awareness, one of the top issues raised by consumers in recent weeks is the misconception that a standard homeowners’ insurance policy would cover flooding. This has been the case across the country for decades, and yet, for many homeowners, renters and businesses, this is a hard lesson learned only after experiencing flood damage firsthand.

A fact that has surprised many NFIP policyholders is that contents are not automatically included under a policy and that separate coverage is available for personal property. For a one-to-four family structure, the structure coverage limit is

$250,000, while the contents coverage tops out at $100,000. For a business, both the structure and contents limits are $500,000. Under an NFIP policy, you can get replacement cost coverage for the structure, but only actual cash value coverage for your contents. There is also no additional living expense (ALE) or business interruption (BI) coverage in a standard NFIP policy.

There is no question that this flood event will prompt all of us to take a closer look at flood insurance – and it clearly is not just a momentous event here in the southern United States. As of early September, the NFIP reported receiving just under 30,000 claims in Louisiana from this flood event. That puts it on track to be the fourth most significant flood in NFIP’s history, following Hurricane Katrina (167,985 paid losses totaling $16.3 billion); Super-

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storm Sandy (130,352 paid losses totaling $8.3 billion) and Hurricane Ike (46,658 paid losses totaling $2.7 billion) and just ahead of 2004’s Hurricane Ivan which resulted in 28,300 paid losses totaling $1.6 billion.

With more than $16.9 billion in NFIP claims payments since 1978, Louisiana is the primary beneficiary of the National Flood Insurance Program and for most people in the state, it continues to be a highly subsidized means of putting a life back together after a devastating flood. Right now, with tragedy and difficulty so fresh in our minds, it is easy to recognize the importance of flood insurance. After Hurricanes Katrina and Rita, sales of flood policies spiked by 30 percent. But over time, many have let their policies lapse and some new homeowners not required to have flood insurance have decided it’s a luxury they cannot afford. It is vital to our citizens, our economy and to the continued way of life we enjoy here that there is vigilance across the state for flooding disasters. I will continue to sound the alarm about the need for the National Flood Insurance Program and work at the national level to keep those policies available and affordable. Please join me by keeping flood insurance top of mind, both for yourself and your clients. Working together, our industry can be a major part of recovery after this, and future, floods.

tial experience of inbound prospects. Your marketing dollars work hard to make that phone ring in the first place, so you should maximize your return on investment with higher close rates. The first 30 seconds of any inbound sales call sets the tone for the entire customer experience and will make or break your ability to close the deal.

Trusted Choice is pleased to provide you with The Power of 30 Seconds(TM).

This online training system designed exclusively for Trusted Choice Independent Agents will walk you through the do's and don'ts of inbound sales calls. The training should take about 30 minutes to complete and best of all it is INCLUDED WITH YOUR IIABA MEMBERSHIP at no additional charge.

Take a few minutes and check it out. You won't be sorry!

IndependentAgent.com/30Seconds

The Power of 30 Seconds When someone calls your agency, you have 30 seconds to make a great first impression.

Those 30 seconds can make…or break a sales opportunity Does your agency have a standard greeting when you answer the phone? Does your receptionist have a pleasant phone demeanor?

Are you converting a high percentage of your inbound sales calls into new customers?

Most insurance agencies can improve the ini-

Continued page 18

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Q.

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

Subject: Post-Flood Homeowners Questions Q. We have been getting some questions from our insureds about coverage under a Homeowners Policy for exposures that developed after the recent floods. I want to put together an FAQ sheet for our Personal Lines staff, so we will all be on the same page when talking to our insureds.

I am attaching some issues and questions we’ve come up with so far. We would appreciate your comments on these technical coverage issues, as well as any additional ideas you have.

thoughts and suggestions. For the discussion below, assume that your insureds are Jack and Jill Smith, whose home was damaged by the recent floods. The coverage form excerpts and commentary below are based on ISO (Insurance Services Organization) forms and endorsements. Proprietary forms may be different.

Situation #1: Water & sewer backup.

Excerpt: HO 00 03 05 11

A. I think your plan to develop an FAQ sheet is a very good idea. Here are my

Section I – Exclusions

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A. We do not insure for loss caused directly or indirectly by any of the following. Such loss is excluded regardless of any other cause or event contributing concurrently or in any sequence to the loss. These exclusions apply whether or not the loss event results in widespread damage or affects a substantial area.

3. Water b. Water which:

(2) The ISO Homeowners Policy does not provide an exception or buyback for backup of sewers and drains caused by flooding.

(3) Note, however, that there is coverage for fire, explosion or theft that is a consequence of any of the various types of water events listed in the Water Exclusion. [See last paragraph of the Water exclusion above.]

(4) The NFIP flood policy provides coverage for the backup of sewers and drains, in an exception to an exclusion:

(1) Backs up through sewers or drains; or

Excerpt:

(2) Overflows or is otherwise discharged from a sump, sump pump or related equipment;

NFIP Dwelling Form (Standard Flood Insurance Policy)

However, direct loss by fire, explosion or theft resulting from any of the above, in A.3.a. through A.3.d., is covered.

Comments: (1) Water which backs up through sewers or drains is excluded under A.3.b.

V. Exclusions D. We do not insure for direct ph ysical loss caused directly or indirectly by any of the following: Continued page 21

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Comments:

(1) Backup of sewers or drains caused by flooding is covered under the NFIP policy.

(2) However, in the growing market for proprietary flood insurance, coverage may be different than the NFIP policy.

(3) Reference articles: “The Homeowners Policy and Sewer Backup” “Accidental Discharge vs Sewer Backup” Situation #2: Water backup or overflow endorsement.

RE: CP 04 95 01 14 Limited Water BackUp and Sump Discharge of Overflow Coverage Comments: (1) Coverage applies to property covered under Section I caused by water, or waterborne material, which:

Comments: (1) Coverage applies to property covered under Section I caused by water, or waterborne material, which: 1. Originates from within the dwelling where you reside and backs up through sewers or drains; or 2. Overflows or is discharged from a sump, sump pump, or related equipment.

(2) The Water Damage Exclusion in the endorsement includes the following:

C. Section I - Exclusions 1. Water This means water which backs up through sewers or drains, or overflows or is discharged from a sump, sump pump or related equipment, as a direct or indirect result of: a. Flood, surface water, waves, including tidal wave and tsunami, tides, tidal water, overflow of any body of water, or spray from any of these, all whether or not driven by wind, including storm surge;

1. Originates from within the dwelling Continued page 23

Continued page 24

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Comments: (1) Coverage only applies for backups of sewers and drains, or sump pumps, which originate at the residence premises.

(2) The Water Exclusion excludes backups and overflows caused by flood.

Issue #3: NFIP Loss Settlement: Replacement Cost (RC) vs ACV Replacement Cost (1) Available only for a single-family dwelling that is the principal residence.

(2) Amount of insurance must be either 80% of the RC, or is the maximum available under NFIP. Actual Cash Value (ACV) (1) Applies to dwellings that: (a) are not the principal residence; or (b) do not meet the required insurance for RC (see above).

(2) If the dwelling is a principal residence that does not qualify for RC due to inade-

quate limits of insurance carried, then the payment is a proportion of the required insurance (“did over should”) applied to cost to repair or replace, or ACV – whichever is greater.

(3) All other types of property (certain building items and all personal property) are covered on an ACV basis only.

(4) NFIP Resource: “What Is Covered and Not Covered Under My NFIP Policy” Issue #4: Property moved away from the residence due to the flood, and subsequently damaged by a Covered Peril.

Excerpt: C. Coverage C – Personal Property 1. Covered Property We cover personal property owned or used by an "insured" while it is anywhere in the world. After a loss and at your request, we will cover personal property Continued page 25

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Webcasts E&O Risk Management September 6 & 15 October 4

Ethics September 15 & 21

Flood September 22 October 13

E&O Risk Management October 11th—Bossier City October 12th—Lafayette October 13th—Covington October 14th—Kenner

Flood Seminars November 8—10, 2016

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

Seminars

Events IIABR Fall Social October 13, 2016 Drusilla Catering

Fall Education Conference Shreveport 3 Hours Ethics 3 Hours Flood October 20th

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

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.

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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Company

Coverage Type

Overall % Impact:

Overall $ Impact:

Number of Policyholders:

Changes

Foremost P&C

19-Private Passenger Motorcycle Program

+7.00%

$9,568

283

New: 9/1/2016 Renewal: 10/1/2016

Hanover American Massachusetts Bay Ins

Private Passenger Non-Connections Auto Program

+4.000%

$115,827

1196

New: N/A Renewal: 9/30/2016

Bankers Insurance Co

Businessowners LA Business Pride Program

-4.1%

-$371,879

2937

New: 9/1/2016 Renewal: 9/1/2016

State Farm Fire & Casualty

Commercial Mulit-Peril

1.8%

$1,213,986

19,904

New: 12/1/2016 Renewal: 2/1/2017

Foremost P&C Foremost Signature Ins Co Foremost Ins Co.

Commercial Auto Precision Specialty Contractors Program

+9.600%

$51,322

73

LA Farm Bureau Southern Farm Bureau

General Liability

+5.35%

$251,539

12,078

New: 9/1/2016 Renewal: 9/1/2016

ANPAC LA Insurance Co

Rental Owners Program

+9.968

$54,109

880

New: 9/6/2016 Renewal: 9/6/2016

Mitsui Sumitomo Ins Co of America Mitsui Sumitomo Insurance USA

Commercial Inland

-56.9%

-$4,461,567

51

Praetorian Insurance Co

Preferred & Standard Homeowners Program

+10.03%

$120,103

396

New: 10/1/2016 Renewal: 10/1/2016

Sentinel Insurance Co

Commercial Package Spectrum Policy Program

+6.0%

$184,730

1,995

New: 9/10/2016 Renewal: 9/10/2016

Atlantic Specialty Insurance

Commercial Property (Fire & Allied Lines)

-8.9%

-$65,493

86

New: 12/1/2016 Renewal: 12/1/2016

Foremost Insurance Co

Personal Inland Marine Boatowners/Personal Watercraft Family Boater’s program

9.0%

$61,843

1,045

New: 12/1/2016 Renewal: 12/1/2016

EMC P&C Company EMCASO Ins Co Employers Mutual Casualty

Commercial Inland Marine

-15.6%

-$265,327

881

New: 1/1/2017 Renewal: 1/1/2017

Hanover American Ins Co

Homeowners Program

+3.0%

$379,718.00

5718

New: 2/1/2017 Renewal: 2/1/2017

New: 9/15/2016 Renewal: 12/15/2016

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owned by:

a. Others while the property is on the part of the "residence premises" occupied by an "insured"; or b. A guest or a "residence employee", while the property is in any residence occupied by an "insured".

2. Limit For Property At Other Locations a. Other Residences Our limit of liability for personal property usually located at an "insured's" residence, other than the "residence premises", is 10% of the limit of liability for Coverage C, or $1,000, whichever is greater.

However, this limitation does not apply to personal property: (1) Moved from the "residence premises" because it is: (a) Being repaired, renovated or rebuilt; and

(2) In a newly acquired principal residence for 30 days from the time you begin to move the property there. b. Self-storage Facilities Our limit of liability for personal property owned or used by an "insured" and located in a self-storage facility is 10% of the limit of liability for Coverage C, or $1,000, whichever is greater. However, this limitation does not apply to personal property: (1) Moved from the "residence premises" because it is: (a) Being repaired, renovated or rebuilt; and (b) Not fit to live in or store property in; or (2) Usually located in an "insured's" residence, other than the "residence premises".

Comments:

(b) Not fit to live in or store property in; or

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(1) Coverage C applies to personal property worldwide. [See C.1.] Therefore, Jack and Jill’s property is covered under their Homeowners Policy, no matter where it is located, so long as the property is damaged by a Covered Peril. [Flood is excluded.]

(2) However, there are sublimits to property at certain locations. Under C.2.a., for personal property that is “usually located” at their secondary residence, the Coverage C limit from their primary Homeowners Policy is 10% of the Coverage C limit, or at least $1,000. Note that this 10% limit would not likely apply to property they temporarily moved from their primary residence to their secondary residence, due to the flood.

not apply under any ISO HO form except the 2011 edition, which is when ISO added a sublimit for property at a self-storage facility. [C.2.b.] However, note that there is an exception to the 10% limit, if the property is moved because their residence is “Being repaired, renovated or rebuilt; and not fit to live in or store property in.”

(5) If Jack and Jill had an HO 00 05 05 11 (Comprehensive Form) vs HO 00 03 05 11 (Special Form), they would have flood coverage for personal property under an exception to the Water Exclusion: HO 00 05 05 11 Comprehensive Form Section I – Exclusions 3. Water

(3) If they moved personal property to Jill’s parents’ house, or to a friend’s house, the 10% limit would not apply, because neither of these is a residence of theirs.

[C.2.a.]

This exclusion does not apply to property described in Coverage C that is away from a premises or location owned, rented, occupied or controlled by an "insured".

(4) If Jack and Jill move personal property to a “self-storage facility” (miniwarehouse, etc.), the 10% sublimit would

Referring to item (3) above, where Jack and Jill moved personal property to Jill’s parents’ house, if that house later also flooded,

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Jack and Jill’s HO 00 05 05 11 would provide coverage for flood damage to the personal property they had taken there.

(6) Most inland marine policies (“personal articles floaters”, etc.) do not have a flood exclusion.

Issue #5: Camper at residence premises during repair or reconstruction.

Both the Homeowners Policy and Personal Auto Policy provide liability coverage for trailers.

Homeowners Policy: Section II – Liability & Medical Payments exclude “motor vehicles,” which are defined as follows: "Motor vehicle" means: a. A self-propelled land or amphibious vehicle; or b. Any trailer or semitrailer which is being carried on, towed by or hitched for towing by a vehicle described in a. above.

Comments:

(1) Jack and Jill’s Homeowners Policy provides liability and medical payments coverage for detached trailers, owned, rented, or borrowed, on or off the residence premises.

Personal Auto Policy: Part A – Liability provides coverage for trailers as follows: 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".

Comments: (1) The PAP provides liability coverage for any trailer, whether attached or detached from an auto, and whether owned, rented, or borrowed.

A trailer has to be declared (added to the policy) only if physical damage coverage is desired.

Issue #6: Automobile issues.

Comments: (1) Part D – Physical Damage coverage in the

Personal Auto Policy only applies to the auto and its equipment. The PAP would not cover household items, clothing, portable electronics, etc., that were in the auto, if damaged by flood or any other cause, such as theft.

(2) Some autos being driven on flooded streets will stall out. In many cases, this can lead to major engine damage. Here is an article that discusses this coverage issue.

(3) Autos that have been substantially submerged in a flood often end up being resold to unsuspecting buyers later. Louisiana passed a statute after Katrina to address the problem: 32:789. Sale of used waterdamaged vehicles A. No used motor vehicle dealer, nor any person or entity, shall sell, transfer, or convey any used motor vehicle to any person without notifying the buyer or receiver of the vehicle in writing of the extent of any water damage from flooding which occurred to the vehicle prior to the transaction.

B. If a sale, transfer, or conveyance of a used motor vehicle occurs in violation of Subsection A of this Section, the person receiving ownership and title to the vehicle who is not otherwise aware of the damage at the time of the transaction may bring an action to set aside the transaction within one year from the date of the transaction and receive all monies or other property given as consideration for the vehicle less a reasonable assessment for miles driven.

Acts 2006, No. 440, §1; Acts 2009, No. 403, §1, eff. July 7, 2009.

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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By: Steve Anderson

Ensure Email Delivery By Sending Whitelisting Instructions Email has become the primary method we use to communicate with others. It is important to make sure the emails you send are received by the other party.

Spam (unwanted email) is a big problem and has made the process of making sure your email is received a bit more complicated. Many tools help manage and block unwanted email from your inbox. Most agencies have some type of spam filter on their incoming email. So do your customers. Your incoming emails could be considered unwanted spam by your customer's spam filter.

Practicing proper email etiquette is one way to help make sure your emails are received in your customer's inbox. Another is providing instructions to your clients on how to “whitelist” your emails with their Internet Service Provider (ISP) to make sure they are received.

Whitelisting is the simple process of your client telling their email service provider that they do want to receive emails from you.

The complication is that every email provider has a different method by which the user whitelists your incoming email address.

There are several opportunities, especially at the start of an email relationship, to encourage your clients to whitelist. This can be on the sign-up form, thank you page or in a welcome message.

I have discovered a free website – Email Delivery Jedi – that helps you create whitelist instructions for virtually any email service your customer uses.

To create your customized whitelist instructions, just complete a form on the site with your email information and click the “Create My Whitelist” button.

The resulting page will contain a detailed set of email whitelist instructions for all major ISPs, mobile devices, and spam filters. The instructions are in basic HTML and can be downloaded and hosted on your website, or converted to an email you can send as a follow-up when someone subscribes to your newsletter. (Firefox browser is recommended.)

The site says that none of your information is recorded or maintained anywhere.

Providing whitelisting instructions to new email subscribers is one way to make sure your emails are received.

What steps do you take to improve your email delivery? Let me know.

Louisiana Agent 31

Big “I” Sues to Halt Misguided Overtime Rule Lawsuit seeks reversal of burdensome Department of Labor overtime regulation.

The Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) t joined the U.S. Chamber of Commerce and 12 other national trade associations in filing a lawsuit against the Department of Labor (DOL) to halt its recently promulgated overtime rule. A coalition of 21 states also filed a separate challenge to the rule.

“This misguided overtime rule will negatively impact independent insurance agencies and their employees,” says Bob Rusbuldt Big “I” president and CEO. “The Big ‘I’ believes the lawsuit highlights the burdens this regulation places on many businesses across the country, and the harm it will do to many employees who will lose the flexibility and benefits traditionally associated with exempt employment positions. This rule is a jobs killer and it needs to be fixed.”

The DOL overtime rule, finalized in May, includes raising by 100% (from $23,660 to $47,476) the monetary threshold at which employees can qualify for the so-called “white collar” overtime exemptions. The rule also pegs the threshold to inflation. The lawsuit was filed in the U.S. District Court for the Northern District of Texas, and asks the court to set aside the new rule. The lawsuit is also seeking injunctive relief barring the DOL from implementing the rule until the court has finished reviewing the case. The rule is currently set to go into effect on December 1.

“The lawsuit takes aim at the arbitrary and excessive 100% increase in the monetary threshold required to be exempt from overtime, as well as the mechanism for automatically updating the threshold,” says Charles Symington, Big “I” senior vice president of external and government affairs. “The Big ‘I’ is the only insurance trade association to join the lawsuit. We believe this lawsuit is a necessary step to help protect our members, many of which are small businesses, against unreasonable regulatory overreach by the Department of Labor.”

Will Peer-to-Peer Insurance Startups Disrupt the Industry?

Big names in insurance are throwing their weight behind peer-to-peer insurance startups like Lemonade, which tap the power of the crowd. Do these new companies have serious potential for disrupting the industry?

Their names alone speak volumes: Friendsurance, Lemonade, Guevara.

These new insurance companies in the fastgrowing peer-to-peer (P2P) insurance segment are using crowdsourcing and social networking to create a shared insurance experience. Peer Groups, such as owners of autos, houses and small businesses, team up to absorb each other’s risks, with everyone contributing money to insure each other’s losses. The startups promise a welcoming, satisfying and even rebellious insurance experience, in contract to the creaky, centuries-old insurance model. Read more from the IA Magazine Article by clicking here.

'Tis the Season to Talk About Jewelry Insurance The holidays will be here before we know it, and your customers will be shopping for gifts. Some of those gifts are sure to include jewelry, watches and engagement rings. In fact, according to Statista.com, at least 18% of annual jewelry sales occur during the month of December. That means there's no time like the present to educate your customers on the importance of jewelry insurance coverage.

What should your customers know about jewelry insurance? Here's a quick primer.

1. Jewelry insurance is not expensive.

The annual premium for a jewelry insurance policy usually falls between 1 and 3 percent of the value of the item(s) insured, which is a small amount for your customers to pay to fully protect their valuable jewelry.

2. Homeowner's and renter's policies are not enough.

If your customers have a homeowners or renters policy, they may assume their jewelry is already covered. These policies, however, usually impose caps on how much they can pay in the event of a loss. If the jewelry is worth more than a few thousand dollars, this type of policy would probably not be sufficient.

3. There's a difference between riders and dedicated policies.

Your customers may assume that the best or only way to insure their jewelry is to add a rider to their homeowner's or renter's policy. Riders may offer higher limits and broader coverage; however, they may not be designed specifically for jewelry. If an item is worth insuring, it makes more sense to go with a policy designed for that purpose.

4. Jewelry insurance is worth the investment.

Jewelry insurance can cover a wide range of partial and complete losses - from "mysterious disappearance" to chipped stones. It also provides customers with a great deal of choice, allowing them to have their piece recreated by a custom designer, or repaired by the jeweler of their choice. Depending on their needs, there is an affordable policy that will fit the bill - and with a gift as precious and meaningful as jewelry often is, it's well worth the effort.

During the season of giving, give your clients some invaluable tips about how to protect their jewelry. If you have customers who are planning to purchase a precious gift for someone this holiday season, make sure they know what jewelry insurance can do for them, and how important it really is.

To learn more about how to provide quick jewelry insurance quotes and earn lucrative jewelry insurance commissions, contact Daniel Husser at RLI at Daniel.Husser@rlicorp.com or log into www.bigimarkets.com and select Jewelry Insurance from the personal products menu.

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

RPS COVINGTON

SUMMIT CONSULTING

ASI

LUBA WORKERS’ COMP NATIONAL FLOOD SERVICES

Louisiana Agent 33

IIABL 2016—2017 BOARD OF DIRECTORS & OFFICERS Richard D. Jenkins President Moore & Jenkins Insurance—Franklinton Neil Record President Elect Record Agency, Inc.—Clinton

John L. Beckmann, III Secretary/Treasurer J. Everett Eaves—New Orleans H. Lee Schilling, Jr. National Director Schilling & Reid Insurance—Amite David Dethloff Past President Dethloff & Associates—Shreveport Derek Canchola Young Agent Representative Blumberg & Associates—Baton Rouge Byram H. Carpenter, III Moreman, Moore & Co—Shreveport Brenda Case Lowry-Dunham, Case & Vivien—Slidell Joseph Cunningham, Jr. Cunningham Agency—Natchitoches Donna DiCarlo Riverlands Insurance Services—LaPlace Morris Funderburg Reeves, Coon & Funderburg—Monroe

Ross Henry Henry Insurance Service—Baton Rouge Bret Hughes Hughes Insurance Services—Gonzales Philip McMahon Paul’s Agency—Morgan City Joe King Montgomery Thomas & Farr Agency—Monroe Joseph A. O’Connor, III The O’Connor Insurance Group—Metairie Paul Owen John Hendry Insurance Agency-Zachary Martin Perret Quality Plus—Lafayette David T. Perry Arthur J. Gallagher RMS—Baton Rouge Robert Riviere Riviere Insurance Agency—Thibodaux

Armond Schwing Schwing Insurance Agency—New Iberia Michael D. Scriber Scriber Insurance Services—Ruston Donelson P. Stiel David H. Stiel, Jr. Agency—Franklin

Louisiana Agent 35