HIN 2020-2021 3rd Edition

2020-2021 3rd Edition

BENEFIT 1

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Charitable Committee Spotlight What do we do? » » » » »

Raise funds to be donated to Houston area Charities Select local charities to receive funds Organize and host charitable events Support the Houston Fire Department Promote Fire Prevention in local schools

Welcome

The Charitable Projects Committee’s main function is to raise funds to be donated to local Houston area charities. The committee also supports the Houston Fire Department and promotes fire prevention in local schools. Throughout the year the committee organizes and hosts many memorable functions including: Charity Benefit Crawfish Boil, Charity Bowl, Firefighter of the Year Awards Luncheon, and the Fire Poster Contest. The committee is chaired by Sarah Beck with FIRST Insurance Funding and co-chaired

by Tasha Stolte with HUB International.

MEETING DETAILS

New committee members with a heart for charity and an enthusiastic attitude are always a welcome addition!

The Committee selected three charities to receive funds from this year’s charitable activities. The organizations are: The Brookwood Community, Company OnStage, and Camp Hope. Although COVID-19 has posed a challenge in scheduling and executing these events, the committees are determined to find creative ways to hold successful events to benefit these outstanding and deserving organizations.

WHEN: Monthly @ 8:30 AM WHERE: Virtual Zoom Meetings EMAIL: sarah.beck@firstinsurancefunding.com

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Features 07

Executive Director’s Message

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Crawfish Boil Charity Benefit

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April Industry Luncheon

Table of Contents 03 Committee Spotlight 05 Events & Education 11 Affiliate Spotlight 12-13 CPCU Update 14 President’s Message 15 Member Spotlight 17 Pandemic Poll 28-29 It’s the Law

30 Houston Insurance Profe 31 Legislative Update 40-41 Coverage Spotlight

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44 UHD

42-43

46 E & O

Charity Chili Cook-off Have you Heard?

45 Who has the Last Word

Special Items 49 Business Card Ads 49 Advertise Index

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s

essionals

Upcoming events Spring Golf Classic Tournament May 4, 2021 Charity Bowl July 10, 2021 Charitable Sporting Clay’s Invitational August 6, 2021

Education Coming Soon!

Check our website for updates www.iiah.org

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Committees of 2020-2021

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.

Charitable Projects/ Fire Prevention Chairman: Sarah Beck Vice Chairman: Tasha Stolte Education, I.T., CE Chairman: Katrina Masek Vice Chairman: Michelle Dennis Houston Insurance Day Chairman: Ashley Newton Vice Chairman: Carmela Cancino Legislative Chairman: Kyle Dean IMPACT Chairman: Mickie Comiskey Vice Chairman: Lea Brimberry Membership Chairman: Liz Brock Recreation Chairman: Amber Stevenson Vice Chairman: Carisa Cole Young Insurnace Professionals Chairman: Derek Pierce Vice Chairman: Grant Pierce PR/Media Matters Chairman: Scott West Social Media Chairman: Daphne Clark Vice Chariman: Liz Brock Houston Insurance News Chairman: Amy Weimer Vice Chairman: Daphne Clark

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Dear Friends, I feel a new sense of excitement in the air as more and more people get their COVID vaccinations! The world is starting to get back to a more normal feel as we move toward the summer months! I know that we might never get back to what we once knew as “normal”, but our “new normal” where we can interact with friends and colleagues is just around the corner.

We had a wonderful Charity Crawfish Boil attended by over 150 people in March at Little Woodrow’s. It was so much fun to see our friends having a good time visiting and raising money for our designated charities!

Our Luncheons are being attended by more and more people that are able to attend in person. I think by the fall we should be back to normal numbers of people in attendance.

Our postponed Chili Cookoff was also great fun. Normally held in January when the weather is colder and wetter, the one this year in April

was different in weather only. Everyone came out, for this the 25th edition, for fun, fellowship and raising money for Big Love Cancer Care, a wonderful cause.

I will say again, if you haven’t attended our Zoom Roundtable discussions, you are missing out. Liz Brock, our membership chair has done a wonderful job each month of presenting interesting topics in a thirtyminute question and answer format. For May the topic is Mergers and Acquisitions.

I am happy to report that Renee is on the mend and feeling better every day. She

April 25 | 2021 is very anxious to get back to visiting with everyone in the near future. And Ayla’s baby, Violet Angela Comuyog is gorgeous. She joined the IIAH family on Tuesday, March 23 at 3:48 pm weighing in at 8.1 pounds. Both mother and daughter are doing great and looking forward to meeting everyone soon.

Thanks again for all of your support of IIAH. This is your association, and we couldn’t do it without you! Hope to see you soon!

David Wuthrich IIAH Executive Director 7

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Executive Committee Chris Goff,CIC, LUTCF President Jim Drew,ARM, CIC, CRM President Elect Jason Nybakken Vice President Adam Harris Treasurer David Wuthrich Executive Director Stuart Ray Immediate Past President

Board of Directors Holly Bozant Tom Fitzpatrick Elizabeth Kirby Jason Knecht Tony May Ryan Moorehead Wes Weatherred Darrell Wolfe

Our Staff Executive Director David Wuthrich Sr. Managing Director Renee Stager Managing Director Ayla Benavides Communications Sandra Greer

New Members New Affiliate Members AmCap Insurance Scottish American

Annual Sponsors Titanium Elite Sponsors Imperial PFS Burns & Wilcox, Ltd. CRC Group

Platinum Partners for Excellence Lighthouse Property Insurance Corporation RT Specialty Texas Mutual Insurance Company UFG Insurance WSG Specialty Underwriters

Gold Patron Sponsors

AFS/IBEX A Division of MetaBank Chubb CNA Insurance Companies Delta General Agency Skyward Specialty Insurance WRIGHT Flood

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

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Camp Hope

Serving our Community

This year IIAH decided to dedicate all charitable efforts to three benefactors, Brookwood Community, Camp Hope, and Company Onstage.

This edition features Camp Hope.

Camp Hope provides interim housing for our combat veterans suffering from combat-related PTSD in a caring and positive environment.

The facility opened in 2012 and is located in a quiet and safe setting in Houston, Texas whereby veterans and their immediate family members can find healing, help, and hope while benefiting from an intensive peer support and mentoring program for combat-related Post Traumatic Stress. In addition to Temporary

housing, Camp Hope offers a minimum of a 5-month program that includes a 1-month transitional program in which residents: attend group lessons and support sessions with other combat veterans; conduct individual mentoring sessions with certified combat trauma mentors; participate in off-site small group interaction activities (i.e. fishing, camping, local activities, and sporting events); and get involved with local churches, businesses, and volunteer organizations to assist in their personal healing and educating the community on the invisible wounds of war.

Learn More | Camp Hope

our charitable benefactor

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Affiliate Spotlight

Scottish American

Founded in 2009 by Paul Thomson, Scottish American is a fast-growing wholesaler with offices spanning coast to coast and over 150 employees. Created as a meritocracy, Scottish American does not have managers, we have leaders. Our history is one of fast growth and constant innovation. And while our business has changed dramatically, one thing has remained the same throughout the years: our working culture.

Scottish American producers are knowledgeable and innovative when it comes to selling insurance. Our expertise in commercial, personal, and professional lines is enhanced with several in-house binding authority markets and even more brokerage

markets. We use our competitive markets to provide coverage for everything from simple risks to complex, hard-to-place accounts. Our home-grown technology platform, built for producers, makes it all easier.

We believe insurance should be FUN, service should be FAST, and our producers should be LOYAL to our clients. Scottish American understands that excellent customer service is the best compliment to a great product.

If you are interested in learning more about our company or becoming partners with Scottish American visit our website or call Josh Taylor.

CONTACT | Josh Taylor

Phone: (817) 709-4136 Website: https://www.scottishamerican.com/

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CPCU WEBINARS

Upcoming Events CPCU 2021 | MAY - JULY REGISTER FOR EVENTS

June

May Webinar | Enterprise Risk Management

Tuesday, May 18, 2021 11:30 AM Ruth Unks is president and CEO of Timberland Consulting, a risk management consulting firm specializing in the development and implementation of enterprise risk management programs for both the public and private sectors. She teaches various national Certified Risk Manager (CRM), Certified Insurance Counselor (CIC) and Certified School Risk Management (CSRM) professional designation courses for the National Alliance of Insurance Education and Research.

Enterprise risk management is an expanded approach to risk management that goes beyond the traditional risk management model which is focused on insurance and risk financing, loss prevention, and claims management. Hear from a risk manager who has implemented an ERM program in one of the largest community college districts in the United States, and learn about her successes and challenges.

CONTACT E: timberlandconsultingllc@gmail.com P: 602-290-7403

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Webinar | City of Klein Fire Department Harris County Emergency Services Division 48 Harris County Fire Marshall’s Office Brittney Edmiston Public Information Officer/ Educator City of Klein Fire Department

Tracee Evans Communications Director City of Klein Fire Department

Jason Tharp Division Chief Community Risk Reduction Director HCESD 48

Rachel Neutzler Director of Communications Harris County Fire Marshall’s Office

Tuesday, May 18, 2021 11:30 AM Specializing in community risk reduction, this team works together to develop and communicate fire safety and prevention education and strategies to the public and will share their combined expertise and resources.

CONTACT Phone: 281-607-4667 Brittney Edmiston E: bedmiston@kleinfire.org Tracee Evans E: Tracee.Evans@springfd.org Jason Tharp E: Jason.Tharp@hcesd48.org Rachel Neutzler E: rachel.neutzler@fmo.hctx.net

July Webinar | Captain Scott Schoonover, Harris County Fire Marshall’s Office Arson Investigation

Tuesday, July 20, 2021 11:30 AM Scott Schoonover of the Harris County Fire Marshall’s office serves as a Captain in the Investigations Division and is responsible for all investigation’s operations, CJIS training and compliance, and law enforcement technology applications. Scott previously served as a patrol deputy with the Harris County Precinct 4 Constables Office. He holds master certifications with TCOLE and TCFP. In 2020, Scott graduated from the Bill Blackwood Law Enforcement Management Institute of Texas (LEMIT), Leadership Command College.

“It is our goal on every fire scene to ensure we find the origin and cause of the fire. This is extremely important so that we can prevent these fires from occurring in the future. Prevention helps reduce insurance rates and prevent loss of life and property,” he said.

CONTACT E: Scott.scoonover@fmo.hctx.net P: 713-274-1655

REGISTER 13

President’s Message

Christopher Goff President 2020-2021 cgoff@harco-ins.com 713.800.2256

Waking Up

As spring comes into full force and we see the world around us begin to wake up and come to life, it reminds me of where we find ourselves as we progress through this unprecedented time. Many of us for over a year have been limited to our computer and the various virtual platforms available to conduct our business the best we can. Being stuck behind a computer screen is not a good substitute for being together in person. Humans by nature are relational and it has been very difficult not being able to meet, shake hands or give a hug. I think it goes without saying that just like all that is waking up and coming to life right now, we to are ready to wake up, go out and enjoy the world around us. It is my prayer that we can quickly return to a level of normalcys that allow us to be fully relational again.

This is truly when we are at our best!

I want to thank all of those that have made it out to our recent events. We will continue to offer future events and we look forward to seeing all of you as you feel comfortable to attend.

Chris Goff, CIC, LUTCF IIAH President

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Member Spotlight

The May Group LLC Tony May founded The May Insurance Group in June, 1998 as a captive Nationwide Insurance agent. We began operations in the Inner Loop area with Tony and two support staff. The focus of the business was Personal P&C insurance products complimented with Life and Financial products. The agency, from the start, developed our business with a Customer Service centered approach.

The next five years saw the agency grow very quickly in every way – Clients, Policies, Revenues and Footprint.

After validating with Nationwide, in 2 ½ years we capitalized on very generous grants, co-op and loans from Nationwide to grow our staff and locations. By 2002 we had grown to 10 employees and 3 locations, expanding into the Garden Oaks and Sugar Land markets. At the time we were following the lead of Nationwide to capture Personal Lines business using Home Insurance as our lead product, then cross selling from that.

We developed many referral relationships from all avenues of the Home Purchase transaction.

The May Group continued to grow through the next 10 years by tapping into other market areas that included urban underserved areas as well as different cities in Texas. We began to expand at that time into Commercial

and Agriculture insurance in some of the outlying areas, away from the Coastal controlled areas. Again, we followed the lead of Nationwide to pursue business the company wanted.

That philosophy served us well as we became one of the largest Nationwide agencies in the state by 2015.

In 2018, our “Cheese” began to be moved, to use a title from a very popular book at the time “Who Moved my Cheese”. Nationwide announced in mid-year 2018 they were beginning the process of dismantling their Captive Agent program and convert the entire agent force to Independent status mid-year 2020. We have been on flat out sprint since then as we make the conversion.

Since July 2020, we have been operating as an Independent agency, working every day to adapt to this sometimes, overwhelming change.

Today, we feel we are poised to grow exponentially, with Houston and Texas over the next decade. We are operating in Houston, San Antonio and all parts in between.

The agency is excited to be a member of the Independent Insurance Agents of Houston and all the resources and knowledge within.

The May Group- we make insurance Simple!!

CONTACT

Phone: (713) 807-8264 | Email: tony@mayinsurancegroup.com Website: www.mayinsurancegroup.com

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take poll

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Charity Benefit On Saturday, March 27th, we were able to gather for our 29th Annual Charity Benefit.

As you can imagine, we were very excited to get out to Little Woodrow’s for this event! In addition to some fantastic crawfish, there was a silent auction, liquor wagon raffle, crawfish races streamed on the big screen, and networking galore! The silent auction had a few bidding wars, but in the end, everyone won due to the amount of money we were able to raise. The Charitable Projects Committee had a blast running the crawfish races- we had a record 8 races total! It was great to see the races broadcast on the big

Crawfish Boil

screen. And as usual, we had a very enthusiastic liquor wagon raffle winner! We were able to raise money for three outstanding charities: Brookwood Community, Camp Hope, and Company Onstage.

Thank you to all of those that were able to gather with us!

For those that couldn’t make it, we look forward to seeing you very soon at upcoming events!

! u o y k n a h T 18

TITANIUM ELITE SPONSORS 2020-2021 IMPERIAL PFS BURNS & WILCOX, LTD. CRC GROUP

PLATINUM PARTNERS FOR EXCELLENCE 2020-2021 LIGHTHOUSE PROPERTY INSURANCE CORPORATION RT SPECIALTY TEXAS MUTUAL INSURANCE COMPANY UFG INSURANCE WSG SPECIALTY UNDERWRITERS

GOLD PATRON SPONSORS 2020-2021 AFS/IBEX A DIVISION OF METABANK CHUBB CNA INSURANCE COMPANIES DELTA GENERAL AGENCY HOUSTON INTERNATIONAL INSURANCE GROUP WRIGHT FLOOD

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PLATINUM SPONSOR VINTAGE UNDERWRITERS

GOLD SPONSORS HUB INTERNATIONAL INSURANCE SERVICES HARCO INSURANCE SERVICES ALL RISKS LTD/RT SPECIALTY

KOOZIE SPONSOR HOTCHKISS INSURANCE AGENCY

SILVER SPONSOR MCCLELLAND & HINE, INC. - HOUSTON

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CRAWFISH SPONSORS GREAT AMERICAN INS. CO. PROPIMDIVD IMPERIAL PFS TEXAS MUTUAL INS. COMPANY TDECU INSURANCE AGENCY, LLC USG INSURANCE SERVICES

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BRONZE SPONSORS ACCIDENT FUND INS. CO. OF AMERICA FIRST INSURANCE FUNDING

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Thank You to all who attended this charity event

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Bringing you quality charitable endeavors

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Crawfish race anyone?

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Grow Your NETWORK

Industry Luncheon

April Lunch The April Industry Luncheon was held on Thursday, April 22 at Maggiano’s with 46 people in attendance! This is up from 30 people at our January meeting, so I think that is a very positive sign.

More and more of our members are more comfortable social distancing for lunch with each passing day. I know many have received their shots and are starting to get back into a more “normal” routine.

Our guest speaker was Dave Martin, Houston Mayor Pro-Tem and former Managing Director with MARSH in Houston. He gave us a state of the city address, discussing many topics of importance to both our industry and us as citizens of this great city. His talk

touched on our water, education, and tax issues that we are facing now and in the coming years. Water will be the biggest issue in our country within a few years and the City of Houston is doing all they can do to make sure it is not a problem for the citizens of Houston.

Dave discussed the dredging and silt removal from Lake Houston and how that is such an important project.

Our next luncheon will be held in July.

We hope that more and more people will be able to join us at that time. If you have a topic that you would like me to find a speaker to discuss, please just let me know and I will do my best to find one!

A time to be in fellowship 26

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It’s The Law

HOUSTON APPEALS COURT AFFIRMS TRIAL COURT’S ISSUANCE OF SUMMARY JUD CONTRACT AND VIOLATIONS OF THE INSURANCE CODE April 20, 2021 Last week, an appeals court in Houston affirmed the trial court’s decision to dismiss an insured’s claims against her insurer for breach of contract and alleged violations of the Insurance Code.

Powell v. USAA Cas. Ins. Co., No. 01-19-00308, 2021 WL 1414217 (Tex. App.—Houston [1st Dist.] Apr. 15, 2021) involved an insured’s claim for coverage under a homeowner’s policy that was denied by an insurer because the insured presented no evidence that her claimed losses were covered under the policy or occurred during the policy period.

In 2010, the insured purchased a home that was in disrepair and agreed as part of the purchase to make repairs to the home.

Indeed, the insured spent at least $100,000 repairing the pool, fence, air conditioner, plumbing, roof leaks, and broken windows and doors. Between 2014 and 2016, the insured obtained three homeowner’s policies from the insurer, but the only one at issue was one issued on April 5, 2016 and was effective for one year. The policy provided coverage against “sudden and accidental,” direct, physical loss to tangible property caused by a covered peril that was not subject to an exclusion. Such exclusions included windstorm or hail, wear and tear marring, deterioration, vermin, or damage

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caused directly or indirectly by water damage arising from any of the aforementioned sources.

Additionally, a condition of coverage under the policy was that the loss occurred during the policy period.

On April 17-18, 2016, the Houston-area experienced massive flooding, and the insured made a claim with FEMA for flood damage to her house. The claim was approved by FEMA, and the insured was paid to repair flood damage to several rooms and items of personal property.

On June 14, 2016, the insured file a claim with the insurer for damage to the interior of her home from an air conditioner leak and an overflowing washing machine. The insurer acknowledged the claim that same day and subsequently sent a plumber to inspect the leaks. The plumber reported the washing machine overflowed due to tree roots in the drain line, and the air conditions leak was caused by pin-hold leaks in the piping that were not leaking at the time of the inspection and that condensation dripping off of uninsulated pipes may also have contributed to the water damage in the insured’s home.

The insured hired a remediation company to address the washing machine overflow. The company found water damage due to a leaking drip pan under the air conditioning unit and additional

minor damage from the April floods and stated that the winds blew tree limbs onto the roof, causing water damage to various ceilings in the home.

Upon inspection by the insurer’s adjuster and a representative from the remediation company, the insurer determined that the insured had an air conditioning system leak, a roof leak, and a washing machine overflow that damage the master bedroom.

It then hired a consulting firm to inspect the damage and determine the cause and origin of the damage.

On July 28, 2016, the consultants reported that hail an inch in diameter fell at the insured’s home for more than twenty minutes on April 17, 2016. The report also concluded that neither wind nor hail damage caused the roof and attributed various Causes, such as gaps between plumbing vent pipes and flashing, animal damage to vent pies, and condensation leaks from the air conditioning system, unsealed brick veneer, and fractured roof decking from workers walking on the roof as causes of the water damaged observed in the home.

On August 8, 2016, the insurer inspected the property a second time. During this inspection, the insured made comments that raised concerns with the adjuster that the insured may have misrepresented the condition

Learn More | https://www.mdjwlaw.com/

DGMENT IN FAVOR OF INSURER DISMISSING INSURED’S CLAIMS FOR BREACH OF of her house when applying for the policy and when the damage allegedly occurred. The insurer thus referred the claim to their internal investigation unit, who obtained statement from the insured.

The insured first noticed wet carpet near the washing machine in March 2016 and first noticed damage in the wet bar in April 2016. She also made inconsistent statements as to the damage covered by FEMA. Moreover, in an examination under oath requested by the insurer, the insured’s testimony called into question whether the washing machine overflowed after the effective date of the policy and whether the insured accurately described and valued her personal property damage.

In July 2016, the insurer denied the insured’s claim, stating that the insured misrepresented and concealed facts in the presentation of the claim, as the insured admitted the washing machine leak occurred prior to the policy period’s start date and could not recall when the damage from the air conditioner leak occurred. The insurer further determined the roof damage was caused by wear and tear and maintenance issues.

The insured filed suit, asserting claims for breach of contract and violations of the Insurance Code.

The insurer followed by filing a motion for summary judgment,

arguing that the insured had no evidence that her claimed losses were covered under the terms of the policy or occurred during the policy period. The insurer also pointed out that the house was in disrepair when the insured purchased it and that it incurred damage prior to the effective date of the policy, and the damage was not covered under the policy.

First, the insured responded by arguing that the insurer could not seek summary judgment on a ground not raised in its rejection letters, which the Court summarily denied, holding that even if such an argument was supported by prior case law, the insurer’s reasoning for rejecting her claim was not inconsistent with what was in its rejection letters.

Second, the insured argued a fact issue existed as to whether the roof leaks were caused by wind or hail during the floods rather than gradual, long-term leaks.

The Court initially held that, under the terms of the policy at issue, the physical damage to tangible property would be covered only if the damage occurred during the policy period. Because the insured admitted the washing machine leak occurred prior to the start of the policy period, and because the insured did not provide any evidence to show that her air conditioning leak occurred during the policy period, the Court concluded summary judgment

was appropriate. As to her claim for the roof damage, the insured argued that disputed facts existed because, although she could not say exactly when the damage occurred, the insured’s consultant reported that hail had hit her house on April 17, 2016 for more than twenty minutes. However, the insured also admitted that the damage could have occurred in 2013 or 2015, which the Court held precluded a genuine issue of material fact. Thus, summary judgment was appropriate on the roof issue as well.

The Court affirmed the summary judgment on the issue of whether any delay by the insurer in investigating the claim exacerbated the insured’s mold issues because the policy expressly excluded such damage, and the insured failed to provide evidence to create an issue of material fact. The Court also upheld the summary judgment as to whether the policy covered flood damage because the insured conceded that the policy expressly excluded such damage. Finally, the Court pointed out that the insured did not argue or point to any evidence showing the insurer violated the Insurance Code, so the summary judgment as to that claim was affirmed as well.

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Houston TEXAS HIP

Houston Insurance Professionals (HIP) holds several fundraisers and events throughout the year to benefit community service projects.

One of our favorite events is the Easter party we host at the Kinder Emergency Shelter. The kids range from ages 12-17 and have been temporarily taken out of their homes for one reason or another. Some get to go home on the weekends, but others stay the full 90 days at Kinder until they can be placed in a safe environment.

All of our members are involved in donating time, money and goodies for these events. We also are lucky to have generous sponsors who contribute to make our events a wonderful success. We made baskets for each of the kids, and gave a gift card to Star Bucks to each of the staff. We we were unable to have an Easter egg hunt and games, due to Covid19 but we went anyway to wish the kids Happy

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Houston Insurance Professionals Easter and share the joy of the season - deliver some lunch AND YES - CANDY. We could only stay for few minutes but it was great and they thanked us for spending some time with them.

For some of us, this event is why we joined this local association in the first place - I know I did!

So now we are moving on to Scholarships for students pursuing insurance as their career.

We are working in association with U of H Downtown to give applicants an opportunity to earn a scholarship for $1,000. Candidates will enter a double-spaced page telling why they chose to get into the insurance industry.

Basically, “Why Insurance”. This will help determine who receives the two scholarships for the upcoming semester. We will announce the winners in our next article in the Houston Insurance News so STAY TUNED!

April 02, 2021 | IIAT Government Affairs

The Keep Texas Trucking Coalition (KTTC) has released its latest video, highlighting the devastating impact abusive lawsuits have on Texas small businesses. The video features Sarah Sagredo-Hammond, whose family-owned electrical, plumbing and HVAC business in the Rio Grande Valley is feeling the strain of Texas’ excessive litigation environment for commercial vehicles.

The committee substitute for House Bill 19 was voted out of the House Judiciary and Civil Jurisprudence Committee last week, and is awaiting a vote by the full Texas House of Representatives. The bill ensures a Texan who is injured by the negligence of a commercial vehicle

operator can be fully compensated for the injury he or she suffered, while also ensuring cases are tried consistently and uniformly across the state and that juries have the relevant information required to make a fair decision.

According to the Texas Office of Court Administration, motor vehicle litigation has increased 118 percent in Texas since 2008, while other types of personal injury litigation have decreased. In 2019, a lawsuit followed every 10 accidents, up from one in 17 accidents in 2008. This has caused the price of insurance to skyrocket, whether or not a company has had an accident or even owns a vehicle.

IIAT’S KEY ISSUES FOR THE 87TH TEXAS LEGISLATIVE SESSION During this unprecedented legislative session, IIAT is focused on the following initiatives important to independent agents and their clients: SB 6 by Sen. Hancock & HB 3659 by- Rep. Leach Pandemic Liability Protection Act Establishing protections for businesses from frivolous lawsuits stemming from COVID-19 claims SB 17 by Taylor & HB 19 by Rep. Leach Protect Texas Trucking Enacting reforms to protect against inflated commercial auto litigation being pushed by trial lawyers SB 1602 by Sen. Taylor Failure to Cooperate Ending the ability to avoid payment of claims by refusing to cooperate with your insurer

Legislative Update

Legislative Initiative Addresses Abusive Lawsuits Against Owners and Operators of Commercial Vehicles

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Upcoming Events

IIAH CALENDAR EVENTS COMING SOON

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CPCU WEBINARS

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YOUR CONTRIBUTIONS MATTERS By contributing to IMPACT, you are supporting pro-business minded candidates and elected officials who are looking out for agents’ interests in the Capitol. All of the money raised by IMPACT is contributed to candidates and campaigns that support the independent agent network.

NOTE: IMPACT is prohibited by law from accepting corporate contributions. Investments may be made via personal or partnership check/credit card AND the following business entities may contribute via company check/credit card: » Limited Liability Companies (LLCs) with no corporate partner members of their LLC, » Limited Partnerships (LPs) or Limited Liability Partnerships (LLPs) with no corporate partner members of their LP or LLP, » Partnerships with no corporate partner members of their Partnership, and » Sole Proprietorships with no corporate partner members of their Sole Proprietorship.

Contributions to this campaign are not deductible for tax purposes. Consult your tax advisor.

Charitable Chili The 25th annual IIAH Charity Chili Cookoff was held on Saturday, April 24th. The event was originally scheduled for its traditional January time frame, but COVID regulations got in the way and we had to reschedule.

We had 25 teams sign-up to participate in the cookoff. Very appropriate since it was the 25th anniversary of the event. The weather was different than our normal cold January weather. It was much windier and warmer, but that made for good chili cooking!

It was great to see everyone out and about, for some it was their first time in a crowded setting. We were able to raise funds for our charity, Big Love Cancer Care. Each participating team had a picture of one of the Big Love children at their cooking station.

People came by and dropped off donations for the children and in return, they were given a sample of that team’s chili! A win, win for everyone!

Charitable Chili Cook-Off THIS YEAR’S WINNERS WERE AS FOLLOWS Breakfast – Ultimate Spice Gang Rose Perez 1st place – Hotchkiss Hillbilly Chili Daphne Clark 2nd place – Chilled Out Cookers Ron Palencia 3rd place – Swifter’s Ace Cookers Phil Swift 4th place – HUB Cookers Jesse Sanchez 5th place – Ultimate Spice Gang Rose Perez Most spirited – Red Pepper Chili Society RPS – Jessica Hahn Thanks again to all of the sponsors and teams that participated. We hope to return to our traditional January time frame in 2022, bigger and better than ever!

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CoverageSpotlight INFO CENTRAL

COMMERCIAL GENERAL LIABILITY (CGL) CARE, CUSTODY OR CONTROL EXCLUSION

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The “care, custody and control” exclusion in the CGL policy can produce significant uninsured exposures for many types of businesses. It reads as follows: This insurance does not apply to…property damage to…personal property in the care, custody or control of the insured. (Exclusion j.(4)) Key Points of the Exclusion Point #1 - Personal Property.

The exclusion applies only to personal property (as opposed to real property) and precludes coverage for exposures that are generally better treated by other types of policies. Real property is land, buildings and fixtures. Personal property is everything else.

Point #2 - Separation of Insureds. Another key point is that the exclusion applies only to “the” insured who has the property in their care, custody or control. If one insured is sued for damage to property in the care, custody or control of another insured, the insurer is obligated to defend the first insured and indemnify if that insured is deemed legally liable for the damage. There is one exception to this point.

In paragraph 2.a.(2)(b) of Section II - Who Is An Insured, an insured employee is not covered for damage to property in the employee’s care, custody or control even if the damaged property is deemed to be in the care, custody or control of the employer.

Point #3 - Legal Definitions.

An important issue regarding this exclusion revolves around

the meaning of the operative words “care” and “custody” and “control.” Each of these words stands on its own (because they are separated by the conjunction “or”) and each has been the subject of litigation with varying results.

Many court decisions involving this exclusion focus on whether a bailment relationship existed between the insured and the owner of the damaged property. If such a relationship exists, then the property was by definition in the care, custody or control of the insured. Courts also look for the insured to have a legal possessory interest in the damaged property.

A court in Illinois said the test for care, custody or control has two parts: (1) the property must be in the possessory control of the insured at the time of the loss; and (2) the property must be a necessary element of the work performed by the insured. The fact that the owner of the property has simultaneous or even exclusive access to the property does not always preclude a finding of care, custody or control by the insured. Courts in other states, however, have ruled differently based on similar facts.

Applying Texas law in a 2011 decision in the case of Ohio Casualty vs. Lloyd Technologies, a federal court noted that “possessory” control of the damaged property is the proper focus of the exclusion.

It is clear then that a legal controversy may ensue whenever an insurer invokes this exclusion. The best thing an agent can do is try to avoid this controversy by selling

another type of policy that is better-suited to cover damage to personal property of others.

Policies Covering Property of Others

Personal

Commercial Property Policy.

Paragraph A.1.c. of the ISO building and personal property coverage form covers personal property of others that is in the named insured’s care, custody or control while located in or on the building or structure described in the declarations.

There is no requirement that the insured be legally liable for the damage to the property, but there is no coverage for legal expenses related to a claim against the insured.

Inland Marine Policies. A number of different types of inland marine policies provide specific coverage for property of others while in the insured’s care, custody or control, including coverage for legal expenses incurred to defend a claim. Some of these forms are summarized in ISO Inland Marine Coverage Forms and Non-Regulated Inland Marine Forms. Forms designed to cover property of others during the course of transportation are described in Transportation Introduction Other more specialized policies for specific industries include Jewelers Block Coverage, Warehouse Operators Legal Liability and Riggers Liability (for contractors involved in moving and installing equipment).

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Have you H We have a star in our midst: Bob Havey’s smiling face is on the IIAT website where they are featuring Member Benefits. Bob Havey has been the Business Development Manager at McClelland and & Hine – Houston for 14 years. What a magnificent smile! So proud of you Bob!

Package Policy • Property—$10 million • Liability—$1-2 million

The leading source for hospitality markets for 32 years

• Liquor legal—$1 million • Umbrella—$1-10 million • Equipment breakdown, including steam boiler • Plus D property enhancements • Monoline liability • 100% liquor

Hospitality Market

Restaurants

Fine Dining

Entertainment

Taverns

Large Caterers

Delis

Bars

Pizzerias

Chris Lewis, Marketing: 1610 Route 88, Ste. 102 Brick, NJ 08724 (732) 701-8945 • (800) 836-1400 Fax (732) 458-3728 specialtyagency.com • Available in 21 states “A+ XV Superior” A.M. Best rated admitted carrier

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Heard?

Ayla & Irwin welcomed their first baby girl on March 23, 2021 at 3:48 PM Weighing 8lbs 1oz. Meet Violet Angela Comuyog. Welcome to the world sweet Violet!

Congrats Ayla & Irwin

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UHD HOSTS SPENCER EDUCATION FOUNDATION RISK MANAGER ON CAMPUS RICH JOHANSON

Over twenty years ago, the Spencer Educational Foundation created the Spencer Risk Manager on Campus program. The program provides universities with the opportunity for approved risk managers of national and international companies to visit their campuses and connect with students to discuss issues and careers in the insurance and risk management industry.

However, due to COVID, this year’s presentation was virtual with 112 attendees including students from several universities and industry professionals.

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On April 8, the University of Houston Downtown hosted its 6th Spencer Risk Manager on Campus, Rich Johanson, a RIMS-CRMP, who has worked in the insurance and risk management industry for over 20 years. He currently is the Director of Risk Management for General Dynamics, a global aerospace and defense company with $37.9 billion in revenue in 2020.

Prior employers include Leidos/ SAIC, 24 Hour Fitness, Crawford & Company, and Macy’s.

His professional duties have included insurance policy placement and claims administration for property, primary and excess casualty, aviation, marine, E&O/Cyber,

and other specialty lines of insurance. He also conducts contract reviews, participates in due diligence on mergers & acquisitions, and provides insurance training sessions for company business managers.

Additionally, Rich served on the board of directors for the San Diego Chapter of the Risk & Insurance Management Society from 2006-2013, including two years as chapter president. He has also served on the RIMS Member & Chapter Services Committee and on the Student Advisory Council.

“UHD is grateful to the Spencer Foundation for this opportunity to expose Houston’s developing talent in risk management to world-class risk managers that inspire and educate them on the diversity of careers and exciting opportunities available within the insurance and risk management profession,” stated Priscilla Oehlert, Director of the University of Houston Downtown (UHD) Insurance and Risk Management Center, who manages the UHD Spencer program. She stated, “Rich brought an international risk management focus to our students and the Houston insurance and risk management industry.”

An IRM student stated “Mr.

Johanson introduced General Dynamics by describing the various business units including combat vehicles, business jets, submarines, etc.

I loved how he talked about how they manage the multiple risks and mitigate losses in these business units. It was also interesting to learn about the three insurance structures and the many levels of insurance coverages they have in each one. That was amazing!

His presentation gave me a better understanding of what we’ve been studying in the IRM program. He also explained how we can begin a career in risk management and how it can be an exciting profession.”

www.uhd.edu/irm CONTACT | Priscilla Oehlert E: oehlertp@uhd.edu P: 770-286-4222

Who has the Last Word Jason R. Knecht Q: Where you work: A: Carroll Insurance Q: What sound do you love?

A: The sound of a golf ball falling into the cup.

Q: If you could paint a picture of any scenery you’ve seen before, what would you paint?

A: Bryce Canyon National Park at sunrise Q: What was the first thing you bought with your own money?

A: Probably a video game of some sort Q: If you could choose to stay a certain age forever, what age would it be?

A: I recently turned 40 and have never been happier!

Q: What did you do growing up that got you into trouble?

A: I failed to listen to sage advice and wisdom from my parents and other adults and had to learn lessons the hard way.

Q: What is something you learned in the last week?

A: That I need to learn more

Q: What is your pet peeve in traffic?

A: Not waving or thanking someone when they yield and allow you to merge into their lane when the light turns green Q: Do you have any hidden talents?

A: None that I have found Q: What is your favorite flavor of jelly beans?

A: Grape Q: What is your LEAST favorite electronic device?

A: My phone Q: What is the longest car trip you have ever taken?

A: Houston, TX to Tampa Bay, FL Q: Can vegetarians eat animal crackers?

A: Only if they are gluten free Q: Ninjas or pirates?

A: Ninjas (num-chuks and Chinese stars are cool!)

Q: What was your favorite childhood television program?

A: Mr. Rogers Q: Are you a collector of anything?

A: Yardage Books and pencils from the golf courses I play Q: At a movie theater, which arm rest is yours?

A: Left

Q: Weirdest thing you have ever eaten?

A: Sweetbread

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

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

Q:

Recently, our E&O carrier recommended that we have an E&O audit of our website performed. When the audit was complete, we received a list of recommended changes to the site. We are working on making these changes, but realistically don’t really see how our website could cause E&O litigation. Do you really see E&O-related lawsuits against agencies based on what is in their website?

Brent, Minnesota

A:

Brent, would you believe that the interest in website E&O audits has increased over the last few years? Part of the reason may be related to premium credits which some carriers are offering to have the audits performed. But what is the reason that E&O carriers find this so beneficial?

When an agency develops their website, they want to put their best foot forward. It is no surprise that they will often use superlatives to describe what they do for their customers. In doing so, they may create an expectation that a higher level of expertise and/or service will be provided than what is 46

required by law. Attorneys and expert witnesses have learned that by reviewing an agency’s website, they can often support their argument that the agency created a “special relationship” with their customer, or at least should be held to a higher standard of care. Here are a few basic tips: ►Avoid any claims of expertise related to a specific coverage or type of customer such as “expert” or “specialist”. ►Avoid superlatives such as “fully covered”, “most comprehensive”, “all carriers”, “all lines of insurance”, “immediate responses”, “all risk”, “all of your coverage needs”, or “fully covered”. ►Do not offer to act as a risk manager or offer risk management services (even if you have a risk management professional designation). If you claim you are going to “manage their risk” and later an uncovered loss occurs, they could accuse you of failing to manage their risk. Stating “we can help you manage your risk” is preferred and can make a huge difference in defending an E&O allegation. (Ultimately, your customer is responsible for managing their own risk). ►Use caution making any statements or explanations of coverage. Policy language can vary dramatically between carriers.

If posting blogs, include disclaimer language

explaining that the material is provided only for general information purposes, and that the actual policy must be reviewed to determine coverage.

►If posting articles or testimonials from others, assure that written permission is received from the contributing party. ►If your site allows a party to enter information into text boxes, make sure that these areas are properly encrypted. ►Review your site often to assure that the information is correct and up to date. Confirm that the site always is an accurate representation of your services, markets, employees, and where you are licensed to do business. ►Consider making your site ADA (Americans With Disabilities Act) compliant. The Agents Council for Technology (ACT) has put together information which is a good resource for agencies.

As agencies become more aware of their vulnerability in this area, I have seen more requests for website reviews.

Consider contacting your E&O carrier to see if they offer any incentives for having a website audit performed.

CONTACT Mary LaPorte marylp@lpinsuranceconsult.com

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When strength and stability matters…

We can get you there!

RSI INTERNATIONAL, INC. Managing General Agency

Arlington • St. Louis

Toll Free: 800.275.2084

www.rsimga.com Property | Liability | Contractors | Environmental Inland Marine | Garage | Professional | Homeowners

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RSI International, Inc. | 1250 East Copeland Rd. | Arlington, TX 76011 | 800.275.2084

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Advertiser Index

Business Card Ads 49 Lighthouse Property Insurance Corporation 16 McClelland & Hine 47 Midlands 08

MITCHELL ROWELL

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Service Lloyds

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Specialty Insurance 42 Texas Mutual 02

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