HIN 2021-2022 2nd Edition

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30th Annual Charity “Crawfish” Benefit March 26, 2022 Young Insurance Professional’s F.L.A.S.H March 31, 2022 April Industry Luncheon April 21, 2022 Spring Golf Tournament May 3, 2022

Member’s Webinar March 24, 2022 Look for more updates at: www.iiah.org

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Committees are what breaths life into our association. With 9 active committees there are at least 100 people actively serving the association with their unique skills. We are always looking to put your skills to use to further drive the association’s mission forward. No matter what your skills are, or what you are passionate about, we likely have something of interest to you. The end result is to better the industry we all serve. Join a Committee today and become part of the mission.

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Committees of 2021-2022

February 24 | 2022 A huge THANK YOU to everyone for making Big I Day 2022 such a wonderful success! This was a much-needed event and shows what can happen when people are determined to hold a big, safe event! I hope that this will be the beginning of the end for our COVID related issues that we have experienced during the past 2 years

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Titanium Elite Sponsors

Platinum Partners for Excellence

Gold Patron Sponsors

Agency Members

David Wuthrich Renee Stager Ayla Benavides

Affiliate Members Normandy Insurance Co. Openly Insurance Treaty Oak General Agency Westhill

7700 San Felipe, Suite 310 Houston, Texas 77063 P: 832. 769.4666 F: 832.324.3503 www.iiah.org

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Arogosy Risk Specialist

CONTACT | Justin Brown Phone: 216.973.8232 Email: justinb@argosyrisk.com Website: https://www.argosyrisk.com/ 11

Serving our Community

Learn More | Mission K-9

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Chapter Social

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CPCU WEBINARS CPCU 2022 | MARCH- MAY March

April

Wednesday April 20, 2022 @ 11:30 AM Wednesday March 13, 2022@ 11:30 AM Joint CPCU/RIMS Meeting The Briar Club 2607 Timmons Lane Wed. 3/16/22 11:30 am Register: https://houston.cpcusociety.org

May Attorney Steve Badger, with Zelle, LLP, one of the Houston chapter’s most popular speakers, will share new information on the legal aspects of the past two years of the COVID pandemic, including business interruption and other impacts on the insurance industry.

Steve Badger Legal Impacts of COVID Houston Racquet Club Wed. 5/18/22 11:30 am Wednesday May 18, 2022 @ 11:30 AM Register: https://houston.cpcusociety.org 15

Networking + Lunch

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University of Houston- Downtown Insurance and Risk Management Program

The UHD Insurance and Risk Management (IRM) program is driven by the unique demographics and needs of its students and has been ranked #2 of the five best online insurance and risk management programs by Online Schools Report. It has been described as a “hidden gem” that has made such an impact on many lives and careers. All courses are offered online to UHD’s working student population, multiple scholarships are awarded to IRM majors

each semester, and active industry-involved mentoring directs and facilitates IRM majors toward industry careers resulting in an extremely high career placement rate. In addition to the UACRM designation, UHD offers six of the eight Chartered Property Casualty Underwriter (CPCU) courses, putting its students well on the path to earning the industry’s gold standard in property/casualty knowledge. “These credentials make UHD IRM graduates some

of the most-desired new talent and leaders in the industry” states Priscilla Oehlert, UHD’s Director, Insurance and Risk Management Center. Additional information about the program can be found on the IRM Website or by contacting Priscilla Oehlert at oehlertp@ uhd.edu.

CONTACT | Priscilla Oehlert E: P: 770-286-4222

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We are off to a grand start for the year!

We are off to a grand start for the year. We have been able to enjoy an outstanding Insurance Day, largest in the southwest, and a Chili Cookoff with families and friends.

Thank you to our staff and volunteers who make our events so outstanding. Also I would like to thank the members and everyone who attended these great events.

This luncheon last month had Senator Whitmire give us insight in the workings of our Texas government. The Senator’s comments showed how important it is to support IMPACT. We clearly need a voice in Austin for our industry and our insureds. We have started back having free continuing education classes after our luncheons.

This is an opportunity to expand your knowledge of our industry and the products that make a difference in people’s lives.

Jim Drew

The Rodeo is back with all of the excitement. We all are seeing things returning. We also are seeing some of the changes brought by the shutdown.

We have seen how the carriers and the MGAs have more people working remotely and this seems to be the norm going forward.

We are also seeing that hiring has changed for us, and the work situations have changed, with employees working from home or working remotely.

We would like you to know your Association is helping with information, resources and monthly zooms on these topics.

Your Association is here to help with challenges of today and whatever the future holds for us all. Please feel free to make suggestions on topics or speakers you would like.

Thank you for being part of your great Association.

Jim Drew ARM, CIC,CRM

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Our Young Insurance Professionals hosted a night full of fun, networking and saluting our Houston Insurance Day Exhibitors on February 22, 2022 at the Houston Marriott Westchase. This event is always a great one, we had over 200 insurance professionals in attendance as everyone got to

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reconnect. Thank you to everyone who came out to support our efforts to bring industry professionals together, we’re happy to be back! Thank you to our sponsors Imperial PFS, U.S. Risks and McClelland & Hine. Keep a lookout for upcoming YIP Events coming soon.

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IMPERIAL PFS BURNS & WILCOX, LTD. CRC GROUP

LIGHTHOUSE PROPERTY INSURANCE CORPORATION RT SPECIALTY TEXAS MUTUAL INSURANCE COMPANY UFG INSURANCE WSG SPECIALTY UNDERWRITERS

CHUBB CNA INSURANCE COMPANIES DELTA GENERAL AGENCY SKYWARD SPECIALTY INSURANCE WRIGHT FLOOD

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RT SPECIALTY AON PROGRAMS

PRIME INSURANCE CO.

MARSH & MCLENNAN AGCY, LLC

THE ZENITH

CARE PROVIDERS/NSM INSURANCE

GREAT AMERICAN INS. CO.PROPIMDIVD

AMTRUST FINANCIAL VINTAGE UNDERWRITERS

SALT EFG INSURANCE AGENCY TSLA WRIGHT FLOOD

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AMWINS BROKERAGE OF TEXAS ASSURANT FRANK WINSTON CRUM INS. CO. GOTO PREMIUM FINANCE IIAT MCCLELLAND & HINE SPECIALTY INSURANCE MANGERS SUMMIT HOLIDINGS TEXAS CONSTRUCTION SAFETY GROUP TEXAS SECURITY GENERAL AGENCY STAA

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CPRO JLA LIFE BROKERAGE AGENCY BANKDIRECT CAPITAL FINANCE GREAT AMERICAN INS. CO.PROPIMDIVD PHILADELPHIA INSUANCE CO. USG INSURANCE SERVICES

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BERKSHIRE HATHAWAY GUARD BERKLEY MANAGEMENT PROTECTION CMBINED GROUP JENCAP INSURANCE SERVICES NATIONAL PARTNERS PREMIUM FINANCE SAGESURE SAFEPOINT INSURANCE SELECT INSURANCE MARKETS SERVICE LLOYDS INSURANCE COMPANY TAPCO UNDERWRITERS VIVA

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Outstanding Service Award Receipient 2021

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IIAT Endorses SALT

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Ransomware is all over the news of late.

If only reading the headlines, you might conclude that ransomware affects primarily either large or high-profile companies, so agents and small commercial policyholders need not be overly concerned. This view is not just dangerously wrong but also diverts attention from the overall cybercrime threat that agents and their clients depend on – their digital ecosystem.

In a ransomware attack, a hacker “kidnaps” data, assumes control of an organization’s computer system and then demands a payment to give back that control. These attacks have increased in frequency and severity over the past two years. Chainalysis, a blockchain research firm, estimates ransom payments jumped 341% during 2020 alone.

Many cybersecurity experts believe the pandemic has driven the spike in ransomware in part because so many employees have been working from home with less-than-ideal protection. Ransomware attacks accounted for 41% of the total number of filed cyber insurance claims in the first half of 2020, according to a report released last year by Coalition.

Insurance companies have responded by raising premiums and tightening un54

derwriting standards just as demand for cyber coverage has risen. Premiums increased from 10% to 30% in late 2020, according to a survey cited by the U.S. Government Accountability Office. In some cases, annual premiums may rise as much as 50%, according to Joshua Motta, founder of Coalition. A group of cyber insurers including American International Group Inc. and Chubb Ltd. have joined to form CyberAcuView LLC, a consortium aimed at enhancing cyber risk mitigation efforts across the industry.

The emphasis on ransomware is not misplaced, as it represents the largest cybercrime segment. The Coalition report also reported that 59%of cyber insurance claims were not due to ransomware, but to other cyber events including funds transfer fraud and email compromise. At the same time, reports have surfaced that hackers have also gained access to personal identifiable information (PII) through agency vendors, such as quoting software and through policyholder groups, particularly contractors.

Every agency must step up its efforts to address its own cybersecurity vulnerabilities and those of its clients. Cybersecurity experts agree the best defense involves using a layered approach by combining multiple authentication methods with more secure systems and

protocols. Some insurers offer security audit services to agents and others are revising agency agreements to require greater attention to cybersecurity.

unique back-up credentials, and secure them separately. Test backups to ensure restoration from them.

•Educate users. Most attacks rely on users making mistakes. Train users to A good starting point is specialist insurer identify phishing emails with malicious Beazley’s “Steps to Protect Against Ran- links or attachments. Regular phishing somware,” which applies to most types exercises are a great way to do this.

- of cyber events. Beazley advises: •Patch systems and applications. Con•Start with a risk assessment. Addressduct regular vulnerability scans and rap- ing risks starts with identifying what idly patch critical vulnerabilities across they are, where they are, and how severe endpoints and servers – especially exterthe consequences are. nally facing systems.

•Email content and delivery. Enforce •Secure remote access. Do not expose strict Sender Policy Framework (SPF) Remote Desktop Protocol (RDP) directchecks for all inbound email messages, ly to the Internet. Use Remote Desktop verifying the validity of sending organi- Gateway (RDG) or secure RDP behind a zations. Filter all inbound messages for multi-factor authentication-enabled virmalicious content including executables, tual private network (VPN). g macro-documents and links to malicious sites.

About the Author •Manage access effectively. Ransomware doesn’t have to go viral in an organiTom Wetzel is CEO of Thomas H. Wetzation. Put in place appropriate meazel & Associates, an insurance marketing sures for general user and system access firm for independent agents whose seracross the organization: privileged access vices include a partnership with LivePerfor critical assets (servers, endpoints, son to bring HIPAA-certified messaging applications, databases, etc.) and enforce and IBM Watson to the insurance indusmulti-factor authentication (MFA) where try, the Wetzel Digital Roadmap, website appropriate (for example remote access/ design and maintenance, and content VPN, externally facing applications). creation. Contact: www.wetzelandassociates.com or twetzel@wetzelandassociBack-up key systems and databases. ates.com.

Ensure regular back-ups that are verified and stored safely offline. Use strong,

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It’s The Law U.S. DISTRICT COURT CONCLUDES THAT INSURER HAD NO DUTY TO SETTLE CLAIMS ARISING FROM MCS-90 ENDORSEMENT OBLIGATION January 18, 2022

limits. She also filed a partial motion for

Last week, the United States District

summary judgment seeking to establish

Court for the Southern District of Texas

that Cuellar was not an employee of

concluded that insurer had no duty

Xpress when the accident occurred and,

to settle claims arising from MCS-90

therefore, the MCS-90 endorsement

endorsement obligation. In Progressive

applied. Progressive moved to dismiss

Commercial Casualty Ins. Co. v. Xpress

Cuellar’s mother’s counterclaim on the

Transport Logistics, LLC, No. H:21-2683,

ground that there is no cause of action

2022 WL 103555 (S.D. Tex. [Houston

for a “duty to settle” in relation to an

Division] Jan. 11, 2022), Miguel Cuellar

MCS-90 endorsement.

agreed to accompany his friend, Fabian

The U.S. District Court concluded that

Santiago, who was to drive a truck

if Cuellar was provided with value in

loaded with steel parts from Texas to

exchange for his service of helping

Missouri. Santiago was driving for ESD

drive with Santiago, then Cuellar may

Transport. Xpress Transport Logistics,

be considered an employee of ESD

LLC (“Xpress”) initially agreed to haul the

Transport, which took the job on a re-

load but re-brokered it to ESD Transport.

brokered contract from Xpress; but the

At some point during the trip, Cuellar

Court denied Cuellar’s mother’s motion

drove the truck, when it rolled and killed

on the ground that it was premature as

both him and Santiago.

discovery had just begun.

At the time of the accident, Xpress was

Next, the Court dismissed Cuellar’s

insured by a commercial auto policy

mother’s counterclaim.

with Progressive. The policy included

behind a duty to settle in the indemnity-

an MCS-90 endorsement which required

insurance context, in which the insurer

Progressive to pay “any final judgment

has a duty to defend and indemnify

recovered against the insured for public

the insured, do not apply to the MCS-

liability resulting from negligence in the

90 endorsement context, in which the

operation ... or use of motor vehicles ...

insurer owes only an obligation to pay

regardless of whether [it] is specifically

the remaining debt of an insured after

described in the policy.” The MCS-90

the insured’s debt has been established.”

endorsement excluded coverage of an

The Court recognized that “the outcome

“insured’s employee”.

might be different if the insurance

After Cuellar’s mother sued Xpress in

contract, by terms other than those in the

Texas state court, Progressive sued

MCS-90 endorsement, imposed a duty to

Xpress and Cuellar’s mother in the U.S.

defend and indemnify on Progressive

District Court seeking a declaratory

that encompassed claims brought under

judgment that it had no duty to defend or

the MCS-90 endorsement. But that was

indemnify Xpress. In response, Cuellar’s

not what Cuellar’s mother pleaded in her

mother filed a counterclaim asserting

counterclaim.”

that Progressive had a duty to accept and pay a settlement offer that was reasonable and within the MCS-90 policy

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“The reasons

The Fifth Circuit concluded that there was also no factual

dispute as to whether Home Depot had a duty to provide assistance to Molina. To that end, the Fifth Circuit reasoned that Molina admitted that he did “flat stacking” nearly every day for a year leading up to the incident— and so did every other employee in the lumber department. He also admitted that “flat stacking” was not necessarily a two-man job. Additionally, Molina never asked for help “flat stacking”.

Thus, “flat stacking” was typical for his position. Further, it was not especially perilous, as customers regularly moved the same materials.

But, the Fifth Circuit concluded that there was a genuine issue of material fact as to whether Home Depot had a duty to provide a back brace to Molina. To that end, the Fifth Circuit reasoned that Molina had asked for a back brace on many occasions before the incident occurred, but his requests were denied. Also, Home Depot admitted that a back brace may be necessary for employees in the lumber department to avoid injury.

In sum, the Fifth Circuit affirmed summary judgment for Molina’s claims of inadequate assistance and training but vacated and remanded the grant of summary judgment on Molina’s claim for inadequate equipment.

Come Crawl for Cancer!

ABOUT US Houston Insurance Professionals or HIP for short, is a local association for the Federation of Insurance Women of Texas (FIWT). We are insurance professionals raising funds for and volunteering in the best city in the World, HOUSTON. Some of the non-profits we support include Kinder Emergency Shelter, Houston Food Bank, and many others.

HIP will be participating in Houston’s Crawl for Cancer finally! The event has been canceled for 2 years now and we are so excited to be able to crawl again! If you are interested in Crawling with us, you can contact Daphne Clark, the committee chair at dclark@hiallc.com. Crawl for Cancer Website: Crawl for Cancer

HOUSTON KEY DATES April 30, 2022 Crawl for Cancer January 17, 2022 Registration Begins March 11, 2022 Early Bird Pricing Deadline April 15, 2022 Registration Ends April 29, 2022 T-Shirt Pickup

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Agent’s questions about Errors and Omissions, and how E&O losses can be prevented

By Mary LaPorte, AINS, CPCU, CIC, LIC, CPIA Agent’s

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Amy Wiemer

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