2019-2020 4th Edition
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Charitable Projects Committee Spotlight Dedicated to Serving our Community W H AT D O W E D O ? P L A N C H A R I TA B L E E V E N TS TO P RO C E E D O U R B E N E FAC TO R S VOLUNTEER & GIVE BACK TO OUR COMMUNITY P I C K T H R E E B E N E FAC TO R S A Y E A R TO D O N AT E TO E N S U R E C H A RT E R ’S P U R P OS E I S R E L EVA N T TO TO DAY ’S N E E D S
Let’s be a Charitable Industry 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. 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. The fundraising events scheduled for 2020 are the Crawfish Boil, Charity Bowl, Sporting Clays, Fishing Tournament, and YIPS Cornhole
MEETING DETAILS
WHEN: Once per month @ 8:30 AM WHERE: IIAH Conference Room 7700 San Felipe #310, Houston, TX 77063 3
Features
Table of C
03 Comitte
07
Message from our Executive Director
16
President’s Message
17-18
Have you Heard?
44-45
Working Through COVID
05 Events &
07 Executive Dire 12-14
15 Affiliate
16 Presiden
17-18 Have
19 Legislat
21 Coverag
22 University of Ho
23 E 24 Who has t
27-28 Insurance Ch 30-31 Working
Special
34 Busines
34 Advert
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Contents
ee Spotlight
& Education
ector’s Message CPCU
Upcoming events 2020 Spring Golf Classic July 16, 2020
e Spotlight
nt’s Message
e you Heard
tive Update
ge Spotlight
ouston- Downtown
E&O he Last Word
haritable Foundation
Education Additional Insured August 27, 2020
through COVID
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June 12 | 2020
Dear IIAH Members, First and foremost, I hope this message finds you safe and healthy! These are very unusual times we are going through. I hope we never have to repeat this again! That being said, when life gives you lemons, you make lemonade! Everyone’s world changed during the first part of March. Our daily activities as we knew them came to a screeching halt... and we were asked to stay “hunkered down” in order for the COVID-19 virus to not spread through our community. It was a drastic step and one we had never experienced before, but we do what Texans do and made it through with flying colors. Because of our efforts, our state experienced much less of the spread of the virus than other states and this saved lives. I hope you were able to take time to de-stress, spend time with the family and enjoy the slower pace of life. We at IIAH adjusted to working remotely, as did all of you. We used the time to evaluate how we could best serve you in the coming months, given our limitations. We made plans to postpone events that we could, while regretfully cancelling those events that we had to. But now it’s time to come back together as an industry and continue the inperson friendships and business relationships that have made IIAH what it is today!
We are excited to hold the Spring Golf Classic Tournament in July. August will bring our annual Clay Shoot, which is always a highlight of the year. We are working to reschedule our Charity Crawfish event at some point this summer, although it will not involve crawfish, but some other form of great food! We are working on bringing back our Educational luncheons which so many of our member’s enjoy. As the State of Texas continues to allow more and more people to gather in restaurants, we are hopeful of seeing everyone real soon at one of these events. We are moving forward with plans for future events in the fall and even into 2021. We are having to plan for many different scenarios, but the events will happen in one shape or form! We are committed to bringing you the best events that we can! Just know Ayla, Renee and I miss seeing you all more than you can imagine!! The distance placed between us and the membership has only emphasized the big impact you have on our lives daily. Please stop by the IIAH office and visit if you have a chance, we would love to see you in person. Stay safe and healthy and thanks for all you do for IIAH!
David Wuthrich
IIAH Executive Director 7
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Executive Committee Stuart Ray President Chris Goff,CIC, LUTCF President Elect Jim Drew,ARM, CIC, CRM Vice President Jason Nybakken Treasurer David Wuthrich Executive Director Wes Kurtz, CIC Immediate Past President
Board of Directors Anais Babajanian Sarah Beck Robbie Darnell Adam Harris Brett Herrington Elizabeth Kirby Jason Knecht Ryan Moorehead William Peachey Chuck Vieau Wes Weatherred Darrell Wolfe
Our Staff Executive Director David Wuthrich Sr. Managing Director Renee Stager Managing Director Ayla Benavides Communications Sandra Greer
Office 7700 San Felipe, Suite 310 Houston, Texas 77063 P: 832. 769.4666 F: 832.324.3503 www.iiah.org
New Members New Agency Members Noltsmeyer Insurance Services
New Affiliate Members Utica National Insurance Group
Titanium Elite Sponsors Imperial PFS Burns & Wilcox, Ltd. CRC Group
Platinum Partners for Excellence Lighthouse Property Insurance Corporation RT Specialty RPS Houston Texas Mutual Insurance Company UFG Insurance WSG Specialty Underwriters
Gold Patron Sponsors
AFS/IBEX A Division of MetaBank Blackmon Mooring of Houston Chubb CNA Insurance Companies Delta General Agency Houston International Insurance Group WRIGHT Flood
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
Serving our Community 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 here
Learn More | About Camp Hope
One of our this year’s Benefactors
Committees of 2019-2020
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
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: Nancy Eugenio Legislative Chairman: Kyle Dean Vice Chairman:
the association’s mission
IMPACT Chairman: Mickie Comiskey Vice Chairman: Lea Brimberry
forward. No matter what
Membership
skills to use to further drive
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.
Recreation Chairman: Robbie Darnell 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: Scott Mackey
CPCU NEWS If you are a Houston-area CPCU, interested in becoming a member of the Houston Society, or wish to learn more about the Houston chapter or volunteer contact: Emily Haluska E: ehaluska@CapstoneAssociated.com REGISTER FOR EVENTS https://houston.cpcusociety.org/meetings-events
CHAPTER EVENTS
Michael Fatter, Replacement Sales Director with Enterprise Rent-ACar spoke via webinar on May 22 regarding a recent J.D. Power & Associate study that details the direct impact of appropriate levels of “Rental Reimbursement Coverage” and the role it plays in policy holder satisfaction and policy holder retention. One surprising statistic shared was that customer satisfaction jumped from 37% to 77% when Rental Reimbursement covered the full cost of the rental (see illustration below). Similarly, the study pointed out that if an insured did not have rental reimbursement coverage and spent more than $200 out of pocket, the insured is 4 times more likely to have defected from their provider.
Jon C. Shepherd, CIH, CSP, Senior Consultant - Environmental Division, for RIMKUS Consulting Group spoke at the February 18 CPCU luncheon meeting at Houston Racquet Club. Headquartered in Houston with more than 50 offices across the U.S., Canada and Europe, RIMKUS is one of the world’s foremost forensic engineering, technical consulting and expert witness service firms. Shepherd, a Certified Industrial Hygienist, Certified Safety Professional and Texas Licensed Mold Assessment Consultant and Asbestos Consultant with over 40 years of experience in environmental health provides indoor air quality and Environment, Health and Safety (EHS) consultation services to legal, insurance, commercial, and private clients. He investigates, samples, evaluates, and reports on indoor air quality cases involving contamination by molds or other contaminants in commercial buildings, schools, multi-family dwellings, and private residences and was actively involved in leading compliance efforts to meet federal Occupational Safety & Health Administration (OSHA) regulations, conducting compliance audits for such regulations in the U.S. and Canada. His presentation included a comprehensive short course on air conditioning systems and the causes, treatment and avoidance of mold contamination. Due to the Corona-19 global pandemic, the March Joint CPCU/RIMS meeting at the Briar Club and April luncheon meeting at Houston Racquet Club were cancelled. 12
jshepherd@rimkus.com | 832.981.4162
The webinar also provided an update on Enterprise Holdings launch of their enhanced “Complete Clean Pledge” which aligns their cleaning protocols with U.S. Travel Associations “Travel in the New Normal” guidance introduced in April, 2020. Similarly, he shared Enterprise’s new delivery/collection and curbside service models designed to improve customer and employee safety and minimize touch points during the rental car transactions in a postCOVID environment. Risk and Insurance Management Society, Houston Chapter invited CPCU members to attend the RIMS Webinar Learning Series presentations on May 13 “Risk Management in the Age of COVID” sponsored by TrustLayer and InsurtechNY, and on May 20 “COVID-19 – The Newest Legislation Affecting Claims” presented by Michael Pearson and Michelle Cruff of Pearson Legal, P.C. michael.a.fatter@ehi.com | 832.723.4711
UPCOMING CPCU EVENTS Historically, the Houston chapter does not schedule member meetings in June and July, however, because of the cancelled meetings this year, the board will be offering webinars throughout the summer months to allow its members to earn CE during the pandemic.
Raun Bass, CIFA National Insurance Crime Bureau Webinar & CE Tuesday, June 16 @ 11:30 AM www.houstoncpcusociety.org June’s webinar will be presented by Certified Insurance Fraud Analyst Raun Bass, a Field Information Analyst with 15 years of experience in fraud investigation, accompanied by Supervisory Special Agent Louis Campbell, both of the National Insurance Crime Bureau, the nation’s premier notfor-profit organization dedicated exclusively to fighting insurance fraud & theft. RBass@nicb.org | 832.289.6003
TBA Webinar & CE Tuesdau, July 21 @ 11:30 AM More information will be posted at: www.houstoncpcusociety.org Steven Badger, Attorney/Senior Partner, Zelle LLP, Dallas, Texas. For seven years, Dallas attorney Steven Badger served on the Plaintiffs’ Executive Committee leading the $5 billion subrogation lawsuit against airlines and aviation security companies alleged to have been responsible for the 9/11 Terrorist Attack. This historic litigation concluded in a $1.2 billion settlement for the participating property insurers, reportedly the largest subrogation recovery ever obtained by the insurance industry at that time. Badger’s presentation provides a fascinating inside
Steven Badger Zelle, LLP Webinar & CE Tuesday August 18 @ 11:30 AM www.houstoncpcusociety.org
look at the events leading up to the 9/11 Terrorist Attack. Badger will also discuss the numerous insurance, legal, and public policy issues that arose during the course of this historic litigation, as well as the currently pending subrogation lawsuit against the Kingdom of Saudi Arabia. The presentation is approved for CE credit with the TDI. sbadger@zelle.com | 214.749.4207
OTHER EVENTS Other upcoming free webinars offered by RIMS and open to Houston CPCU Society members include: “Remote Employees - A Legal Map to Managing Work From Home” Presented by Paul F. Meleedy, JD, ARM, ARM-P Director, Workers Compensation - Arch Insurance Wed, Jun 17, 2020 @ 11:55 AM - 1:00 PM Working from home, or telecommuting, grew exponentially long before COVID-19. Thanks to today’s technology, industries are dramatically changing the way their employees work remotely, recognizing unique work-from-home options that can be beneficial for all parties. Managing remote employees, worker’s compensation risks, and ADA compliance with telecommuting are growing areas of judicial doctrine and risk management. Risk managers need to recognize and know when an injury arises out of and in the course and scope of employment at home, and when it does not. Tentative dates for other upcoming webinars are: Tuesday, July 14 @ 11:00 AM Wednesday, August 19 @ 2:00 PM Thursday, Sept. 10 @ 11:00 AM Tuesday, October 13 @ 2:00 PM https://www.houstonrims.org/insidepages/ meetings/details to confirm dates, times, presenters and register.
Thanks to Houston RIMS for this opportunity!
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MORE CPCU
The revised 2020 schedule is listed below – place these dates on your calendar and register to attend. Visit the CPCU website for updated information on Conferment and the remaining meetings for the year.
2020 CPCU HOUSTON CHAPTER MEETINGS Houston Racquet Club | 10709 Memorial Drive 11:30 AM – 1:00 PM - lunch included
Tues. 1/21 Meeting/Luncheon Tues. 2/18 Meeting/Luncheon Thurs. 3/19 - Joint CPCU/RIMS Cancelled Tues. 4/21 - Cancelled Tues. 5/19 Webinar Tues. 6/16 Webinar Tues. 7/21 Webinar Tues. 8/18 Webinar Wed. 9/16 - Conferment Tues. 10/20 Tues. 11/ 17 Holiday Social TBA Register at: www.houstoncpcusociety.org Members and guests welcome! UH-D, UH, TSU & Gamma Iota Sigma Students Free
If you are a CPCU, interested in becoming a member of the Houston Society, or wish to learn more about the Houston chapter or volunteer, contact Emily Haluska Email: ehaluska@CapstoneAssociated.com
Or register for a luncheon meeting by visiting the Houston Chapter website at: https://houston.cpcusociety.org/ meetings-events
CONTACT US
Affiliate Spotlight
Utica National Insurance Group Relationships have been the foundation of the member companies of the Utica National Insurance Group since Utica Mutual Insurance Company, the Group’s principal company, was founded in 1914. Utica National is headquartered in New Hartford, New York, and has offices throughout the United States – including the Southwestern Regional Office (SWRO), located in Richardson, Texas, which has served Texas agents and policyholders for more than 50 years. Utica National has been committed to working closely with independent agents for nearly a century to ensure that policyholders receive guidance and prompt service when they need it most. It offers products and services through more than 2,500 independent insurance agents, and employs more than 1,300 people countrywide.
Highlights Include ► $1 billion in sales and being recognized as a Top Insurance Workplace* for two consecutive years, plus an A.M. Best “A-” (Excellent) rating** ► the second-largest Agents’ Errors and Omissions program in the United States ► continual development of technology for ease of doing business for agents and policyholders ► risk management services that include streaming video and online courses at no additional cost for policyholders, live webinars and seminars, and articles and alerts addressing current and emerging topics ► a responsive team of claims professionals who have earned a 97% claims satisfaction rating*** ► charitable activities in the communities where we live and work. Team members use their company volunteer day, which is a day out of the office with pay, to support organizations and causes important to them. Plus, the Utica National Group Foundation, the company’s philanthropic arm, has awarded millions of dollars in grants to nonprofit groups focusing on the healthy development of children and families. Learn More | www.uticanational.com *As awarded by Insurance Business America magazine **For the latest rating, access www.ambest.com ***Based on 2018 Claims Satisfaction Survey
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President’s Message
Stay Safe & Stay Positive
First and foremost, I hope everyone reading this is safe, healthy and in good spirits. These are very strange and difficult times for everyone. Now that we are able to get out and see people under safe conditions, I have noticed people having awkward introductions. Whether it’s your mom, best friend or a business associate, we still are unsure how to greet people. It reminds me of a few first dates I have had. Do I shake your hand? Can I hug you? Fist bump? Air Five? What are we doing here? Luckily, IIAH has been able to adapt to keep things moving. Renee, Ayla, Sandra and David have been able to work remote with no setbacks. The executive committee, board and our eight other committees are now meeting virtually.
Stuart Ray
President 2019-2020 sray@higginbotham.net 713-952-9990
Now that our governor has opened up the economy to certain extents, we have discussed the possibilities of rescheduling cancelled events as well as having events planned for later in the year. You have already seen emails regarding our annual Spring Golf Classic Tournament. I want to assure everyone we are working with all of our vendors and facilities to make sure everyone is safe and that we are following COVID-19 procedures. We have created a segment on our website with up-to-date information regarding COVID-19. There you will find links with information from the Governor of Texas, CDC and IIAT. If you have any additional questions, feel free to call the IIAH office. I wish everyone the very best. Stay safe and stay positive.
Have you Heard? After 12 years with RPS, our beloved Walter Tomlinson has retired. During his tenure, Walter has been an active member of the Independent Insurance Agents of Houston serving on our Board of Directors, multiple committees and recently won our Outstanding Service Award in 2019. Walter has given so much of his time and dedication to our community, he will be missed dearly. IIAH and our members wish him all the best in his retirement.
“Congratulations on your retirement, Wally and thank you for your mentorship, ideas, and encouragement along the way!” -Scott Mackey, RPS “Walter provided RPS with excellence in leadership setting everyone up to succeed. He was very motivating and encouraging to all and very involved not only in IIAH but TSLA as well. His promotion/marketing allowed RPS to excel in the marketplace...on a personal note he is enjoying his retirement working on home remodeling but does miss all the friends/colleagues in the insurance industry.”
-Cheryl Tomlinson, RPS
“Wishing Walter many enjoyable and rewarding moments in retirement.” -Linnea Martin, RPS “Walter was the first boss I had that made the insurance industry FUN. He has always been an encouraging voice and I don’t know if there will ever be anyone else like him. I am truly grateful for the years I got to work alongside him and I wish him the absolute best in his retirement!!! Take care, Wally!!”
- Laura Wisniewski, Craig & Leicht
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Walter....
r o f u o Thank y he having t a f o t r Hea t n a v r e S
“Walter welcomed me to the RPS family with open arms. He listened to every question or idea I had no matter how big or small. Working for Walter gave gives a sense of confidence and motivation because he leads by example and creats an amazing team environment. Thank you for your leadership and having a kind heart.”
-Karen Morgan. RPS
“I joined the Dallas branch office in 2018 and had the great pleasure of being interviewed by Walter Tomlinson. He was one of the reasons I wanted to come on board and have been fortunate to sit under his leadership. I am so blessed to have had the opportunity to work with him, and it’s been an honor knowing him as a manager, mentor and friend. Walter is the epitome of a Leader. He exemplifies kindness, empathy, a servants heart and a spirit of Excellence to be modeled after. Being in Walter’s presence has made me a better person and underwriter. A legacy of success will continue because of his faithfulness, dedication and empowering stature!”
-Cynthia Cano, RPS
“Walter - I wish you the best in your future endeavors!! I will definitely miss your valuable input at our HIN meetings and it’s just not going to be the same without you. However, we will carry on! We of course are going to leave our meeting dates on Wednesdays and if you ever get the chance to be at the Bayou – would love for you stop in and sing a song barefoot! Love ya Wally!!”
-Daphne Clark, Hotchkiss
IIAH Legislative Committee
by Thomas M. Braniff, JD, CPCU
- James Madison (Fourth President of the United States – 1781-1836) IMPACT Solicitation in Progress The annual drive to raise funds for our Political Action Committee is underway now, after having been delayed due to the Coronavirus. Please respond generously when you receive the contribution request. The funds contributed by IIAH Members and Affiliates are used to help elect local political candidates that will represent us in the Texas Senate and House of Representatives; as well as candidates for statewide offices, such as Governor and Lieutenant Governor. Our goal again this year is to raise $65,000. When we combine our contributions with those that are being raised by other local Independent Agent Associations around the state, it gives us the funds for Independent Agents to be one of the strongest political advocacy groups in Texas. Contributions from IMPACT do not buy solutions to legislative debates…but they do allow our members to help educate our legislators on insurance matters, and develop working relationships with them. By having a pre-established relationship with elected officials, it is easier to “get a foot in the door” when critical legislation is being considered. Political Campaign Season to Begin No sooner than our IMPACT solicitation drive will be is completed…the campaign season will begin for the elections in November. Our contributions to IMPACT allow us to demonstrate our financial support for business-minded candidates. It is important that we continue our involvement in the political process. Key Issues for the 2021 Legislative Session The 2021 legislative session will begin in early January. Some of the key issues our legislators will have to deal with are: ►Redistricting, which will affect Texas politics for the next 10 years. ►Budget issues brought on by the Coronavirus and the oil and gas industry crash. ►Election of a new Speaker of the House of Representatives, which means new Committee Chairs and committee members, as well as a potential change in the makeup of the Senate.
Legislative Update
“I believe there are more instances of the abridgement of the freedom of the people by gradual and silent encroachments by of those in power…rather than by violent and sudden usurpations.”
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RPS
WHAT FUELS THE TEXAS ENERGY MARKET? PUBLISHED ON 01/08/2020
“Over the last five to six years there’s been a land race in Texas to acquire as many assets as possible to leverage the domestic and global oil and gas market,” explains Zach Burdine, RPS Area Senior Vice President. “Individuals and companies have negotiated large stretches of right-of-ways to build transmission pipelines and purchased large areas of adjoining acreage for producers to start drilling and extracting oil.” West Texas, specifically in the Permian Basin, is seeing a surge in pipeline construction. As many as 15 oil and gas pipelines serving the Permian are expected to be completed by the middle of 2020, potentially increasing exports from the Gulf of Mexico four-fold to eight million barrels a day after 2021, according to a Morningstar Commodities Research report. The biggest concern as these pipelines are being built is how to create more capacity to get all that oil to market. Producing four million barrels a day, the Permian generates more oil than any of the 14 members of OPEC except Saudi Arabia and Iraq.
“Those midstream companies first to go live with their pipelines and begin moving product will be the ones ahead of the game,” says Burdine. Exposures in the Field In addition to layers of oil-rich shale that have transformed the Permian, technological innovation has contributed to the energy boon in the region. Automation in the oil patch has brought impressive efficiencies and speed-to-market for midstream companies but it has also given rise to additional exposures, according to Burdine. “There are midstream companies that can now operate pipelines remotely, from their cell phones even, opening and closing the valves based on volume needs and capacity readings. This is more efficient but it also opens the door to hacking and a potential cyber breach. When you don’t open the correct valve, you can have a huge pollution event, as well.” Another area of risk to consider is pipeline construction. “A transmission pipeline is built in increments, not all at once, and can be
Coverage Spotlight
operational while being built,” Burdine explains. “You may finish, for example, 10 miles of pipeline, or 100 miles, etc. at a time. The midstream company needs to insure the pipeline while under construction and once it’s completed. “But there are incremental windows or gray areas where the completed [portion of the] pipeline is operational while you are still constructing the remaining portion. While there are protocols in place to prevent the product from moving to the unfinished section of the pipeline, there are exposures. “It’s important that coverage is in place to insure the operational portion of the pipeline while construction takes place. RPS has developed a hybrid product to bridge the gap between the construction and operation of the pipeline in lieu of having to secure two separate policies – one to cover the pipeline under construction; the other for its operation. Our insurance product is seamless…as mileage goes live, the operation is covered.” The energy sector also
reflects the overall insurance market. “Any risk with a large auto exposure is facing higher primary Auto Liability rates and subsequently higher excess rates,” says Burdine. “This is resulting in additional excess layers to get the coverage limits we need.” The other area experiencing higher rates, larger retention levels and tighter underwriting and risk management guidelines is propertydriven and involves disposal facilities. Burdine continues, “These facilities are situated on an oil patch and are the tallest structures out there for hundreds of miles. Most of West Texas is located in a heavy thunder, lightning, and hail belt, so when lightning comes through, these expensive facilities are prime targets and, when struck, will burn to the ground causing millions of dollars of damage. “It’s a difficult coverage to place right now. What’s important is to work with a specialist like RPS that understands the exposures and how to address them.”
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IRM Students Awarded Spencer Educational Foundation Scholarships
By Mark Kramer Two Insurance and Risk Management (IRM) students from the University of Houston-Downtown’s Marilyn Davies College of Business were both awarded $5,000 scholarships from the Spencer Educational Foundation. IRM majors Elijah Kabalka and Csilla Molnar were selected for the scholarships because of their academic and leadership abilities. The Spencer scholarships are awarded specifically to students studying risk management, insurance, actuarial science and business. Kabalka, a senior IRM major, said the scholarship will enable him to further his pursuits of working in the corporate setting in a risk management role. “As a risk manager I want to ensure and effectively communicate the risk policies as well as the processes essential to the management of a corporate organization,” he said. “I 22
aim to provide hands-on development of the models that cover risk management within the market, the effective operation of controls, operational and credit risks, and the provision of support in the analytical and research departments. With a degree in insurance and risk management, I feel I will be one step closer to my goal.” In addition, Kabalka intends to pursue special professional certifications that will be important in his career, such as the Chartered Property Casualty Underwriter (CPCU) designation, Certified Risk Managers (CRM) designation, Associate in Risk Management (ARM) Certification and Certified Insurance Counselor (CIC) designation. “All of these qualifications combined will provide for me an opportunity to establish myself as a professional in the corporate sector as a risk manager,” Kabalka said. Molnar said the scholarship will provide her expanded
opportunities to excel and focus on her studies. “It will push me further towards my degree, knowing that I not only completed a very important task, but also created a foundation for moving me closer to my career goals,” the junior IRM major said. Molnar said she will begin working on her minor in Actuarial Science when the fall semester begins and also intends to pursue industry certifications. “During my senior year, I am planning to obtain a summer actuary internship, and finish my CPCU and actuary examinations,” she said. “After graduation, I will be looking for a risk analysis or actuary entry-level position.” Molnar said she is grateful to her professors and mentors that have supported her. “I have found purpose in the insurance Industry and hope to make a positive impact on my community in the future,” she said.
the checklist or any discrepanices to a more experienced CSR, Account Manager or Producer. It is then their responsibility to identify the differences between the prior term and the renewing coverage and address critical coverage issues with the insured.
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: I am an
account manager in commercial lines, and we have heard that because of COVID-19, we need to be careful checking and preparing renewals. We think we have always done a good job in the past, but can you give us and idea of some specific things we should be looking for? Trish, Iowa
A: Trish, that is a timely
question and one that a lot of agencies are asking me about. With the Coronavirus has come an expectation that policies should cover more than they originally intended. As a result, some carriers are including notices with the renewal clarifying that coverage for certain exposures are not covered under the policy. An example is ISO’s clarification endorsement for Business Owners Policies: BP P 026 03 20 Coronavirus – Advisory Notice to Policy Holders. However, you should be alert to situations where a carrier may add an exclusionary endorsement, or revise language in an existing form in order to exclude coverage that was not excluded in the past. Some states require that the insured be notified in situations when coverage has
been reduced, but there are usually no requirements to notify the agent. I think you would agree that even if the insured had received a notice, they might not recognize it as anything important that they need to read, or may have read it but not understood it’s impact. This is where the agent can step in and make an understandable explanation, and possibly offer alternatives to secure the lost coverage. You might think if some coverage was reduced at renewal, the carrier would have to stand by the previous coverage if they did not notify the customer or the agent, or if it was an error. The courts do not agree. Many courts state that once the agent has received the policy and had an opportunity to review it, the coverage stands. Unfortunately, most agents do not find out about the coverage reduction until after an uncovered claim occurs. Surplus lines forms or policies wrttien by non-admitted carriers should especially be scrutinized.
Because of the recent pandemic, there may be other areas which should be addressed with your customers. Premium basis (payrolls, sales) may need to be adjusted. Some of your customers may be involved with new products or services that grew from COVID-19. Others may have out-of-state workers which were not a consideration in the past. Determine if any events have occurred which could trigger coverage under any policy. If so, the insured should consider giving notice to the carrier as soon as possible (certainly before the expiration date) to preserve their rights under the policy. The COVID-19 pandemic is impacting agencies’ exposure to E&O. It is more important than ever to perform a diligent review with each customer at renewal. Mary LaPorte is a consultant and educator with a strong background in Errors & Omissions loss prevention. Forward your E&O questions to Mary via email.
Make sure when checking form numbers and endorsement numbers that you also verify the edition date to see if it has changed. If you have a clear, detailed checklist, marylp@lpinsuranceconsult.com a well-trained assistant or support person can perform the policy checking, referring 23
Who has the Last Word
Q: What is your pet peeve in traffic? A: Lack of courtesy
Jim Drew Q: Where you work: A: Bowen, Miclette & Britt Q: What sound do you love? A: The purr of a kitten
Q: Do you have any hidden talents? A: I am looking Q: What is your favorite flavor of jelly beans? A: Cherry Q: What is your LEAST favorite electronic device? A: Radar gun
Q: If you could paint a picture of any scenery Q: What is the longest car trip you have ever you’ve seen before, what would you paint? taken? A: The mountains of Mourne rolling down to A: Vancouver, Canada the sea Q: Can vegetarians eat animal crackers? Q: What was the first thing you bought with A: Yes your own money? A: Winter Coat Q: Ninjas or pirates? A: Pirates Q: If you could choose to stay a certain age forever, what age would it be? Q: What was your favorite childhood A: Today is a good day television program? A: Kung Fu Q: What did you do growing up that got you into trouble? Q: Are you a collector of anything? A: Not enough space A: Turn of the last century Irish art Q: What is something you learned in the last week? A: Masks are slimming Q: Weirdest thing you have ever eaten? A: Garlic toasted grasshoppers
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Q: At a movie theater, which arm rest is yours? A: none
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IICF Insurance Industry Charitable Foundation Giving through IICF will help to deliver 1 million meals to cheildren in need June 2020
During this unprecedented pandemic, the Insurance Industry Charitable Foundation’s mission of helping communities and enriching lives is more important than ever. Early on in the pandemic crisis, IICF acted swiftly in establishing a relief fund focused on children at risk as a way for the industry to respond collectively and immediately to community needs. Through the generosity of insurance industry supporters, IICF has
Response to Pandemic Crisis
raised more than $1.1 million to date through its COVID-19 Crisis: IICF Children’s Relief Fund. This includes a recent $500,000 contribution by Lloyd’s to the IICF Children’s Relief Fund. Designed to address the needs of children, who are disproportionally affected in the COVID-19 crisis, funds raised through IICF’s campaign will deliver meals to children and their families struggling with food
insecurity and help to address educational disruption, family homelessness and other risks exacerbated by the pandemic. Early initial grants awarded to our nonprofit partners through the IICF Children’s Relief Fund are helping to deliver nearly 600,000 meals to vulnerable children. IICF is aiming to provide one million meals to children and their families in need through this campaign.
To join more than 550 of your industry colleagues who have already contributed to the IICF Children’s Relief Fund, a donation can be made here. Any amount, large or small, helps make a difference in the lives of children in need.
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IICF Charitable Foundation The industry at large is responding in significant ways and philanthropic response to the crisis continues to increase. Using information collected by IICF, the Insurance Information Institute upgraded its estimate to $280 million donated by U.S. insurers and their charitable foundations in response to the COVID-19 crisis. Additionally, more than $150 million has been contributed internationally. Across the Southeast, insurance professionals in Texas and beyond have been giving back to our communities in meaningful ways. Here in the Greater Houston area, IICF’s nonprofit partner Kids’ Meals is hoping to bring some joy during this time by delivering lunches in decorated brown bags to the children and families it serves. IICF board members and volunteers – and anyone who is interested – can get creative and include the entire family in this fun volunteer activity supporting the Houston community. Kids’ Meals is delivering more than 6,000 meals each day to children and their families. Learn more about this IICF opportunity to give back in Houston. IICF is supporting several community food banks across the region as well through its IICF Southeast Food Drive, including the Houston Food Bank. Food banks continue to see needs for their services rise exponentially due to the pandemic crisis. IICF Southeast Division and Chapter Board member companies have established ambitious team fundraising goals and are contributing greatly to the industry’s relief efforts through IICF. To learn how you can contribute to the IICF Children’s Relief Fund, establish a company fundraising campaign or be a part of something greater in other ways, contact Sarah Conway, Executive Director of IICF’s Southeast Division. Email: sconway@iicf.com
About the Insurance Industry Charitable Foundation (IICF) The Insurance Industry Charitable Foundation (IICF) is a unique nonprofit that unites the collective strengths of the insurance industry to help communities and enrich lives through grants, volunteer service and leadership. Established in 1994, IICF has served as the philanthropic foundation of the insurance industry for more than twenty-five years, contributing $39 million in community grants along with 300,000 volunteer hours by more than 110,000 industry professionals. IICF reinvests locally where funds are raised, serving hundreds of charities and nonprofit organizations, for maximum community impact. IICF is a registered nonprofit organization under section 501(c)(3) of the IRS code. Learn More | www.iicf.org or follow us on Twitter @doubleicf
Working Through
How is the agency doing? Whether your office has returned to “normal” or you continue to utilize a remote workforce, good operations require constant re-assessment.
What a staggering, head-spinning couple of months we have experienced because of COVID-19. Agencies have had to make some quick decisions to address social distancing and stay-at-home mandates. As an “essential service” some jurisdictions have allowed agency offices to stay full staffed, even though contact with the public may be restricted. Other agencies have limited the number of employees allowed in the office at any given time, allowing only those employees needed to support administrative tasks which could not be performed off site. While some agencies had already created a detailed strategy for handling pandemics in their Catastrophe Plan, others may not have thought beyond having employees simply work from home. A lot of decisions had to be made in a short time frame, and since agencies had no other choice, they made it work. Regardless of their level of preparedness, agency principals and managers agree that they have learned a lot from this recent experience. For many of you reading this article, the stayat-home order has not yet been lifted, and you continue to manage a remote workforce. You may have been amazed to discover the adaptability of your employees, demonstrating initiative and professionalism as they embraced the changes in their work environment. You may also have been impressed by the resilience of your customers, who rely on your counsel and expertise while communicating with you in new and surprising ways. You deserve a pat on the back for pulling everything together. Now it is time to stop, take a breath and make sure nothing has been overlooked. Set aside some time to evaluate what has been done and in hindsight, what might still be improved on. Because of technology, employees are not only able to work from home, but can be as productive
COVID-19 as when working in the office environment. The key is providing a workspace that mirrors the office workstation as much as possible. Encourage employees to create an area, with a desk/table and chair that provides ergonomic support and reduces fatigue. Furnishing the employee with an additional monitor and full-sized keyboard is important. It is more likely that employees will follow agency procedures and remember the steps in completing each task if their environment mirrors the one to which they are accustomed. Although it may be tempting to allow employees to use their own laptops or computers, it is much easier to control security with agency-owned equipment. Consider providing each employee with a laptop to be used only for agency business. If you currently do not have a Security and Privacy policy, now is the time to implement one which can clarify expectations when working remotely. Include requirements to sign off computers when leaving a workstation, instructions in handling suspicious email, and refraining from downloading programs or installing apps. Digital phone systems and VoIP capabilities allow calls to be easily transferred to an employee at home. Even so, some employees have given clients their own personal cell phone numbers to avoid going through a main switchboard. Consider the long-term effects of using personal numbers and weigh that against the cost of providing a direct number for each employee. Providing headsets or ear buds will allow employees to be hands-free when on the phone. In servicing customers, some documents may need to be mailed rather than sent digitally. Even if an employee has a printer in their home, it is best to have the documents sent to a printer in the office, allowing an administrative person to print the queues and mail the documents. If your agency does not have this capability, then a PDF of the document can be sent to the administrative assistant for printing and mailing. When it comes to scanning, some creative employees have been known to capture the image with their cell phones and then email that image to their work email. This practice should be discouraged unless the email used on the cell phone is actually their work email. Personal email does not provide the security needed to transmit protected documents, such as applications.
In addition to printing and handling outgoing mail, someone needs to be assigned functions that can only be performed in the office. This could be an administrative assistant or other employee or manager. Handling and distributing incoming mail, applying or forwarding premium payments, and making bank deposits. Some agencies have placed drop boxes or use mail slots to allow customers to easily make payments. However, a disclaimer should be posted stating that the agency cannot guarantee continuation of any policy until the payment is accepted by the carrier. Also, create a system to handle customer original copies of policies and endorsements. Consider whether they should be sent immediately or held until released by the account manager or CSR, perhaps together with invoices, letters or other documents. The most critical piece of handling remote workers is communication. If handled correctly, you will find that your teams have become more cohesive than ever, eventually returning to the office with a renewed sense of commitment to their job and support of your agency mission. While some do their best work independently, others need a sense of connection and reassurance. Managers should try to speak to each employee one-on-one at least weekly, while being responsive to email or instant messaging. Continually provide positive reinforcement and help employees feel valued. Use video conferencing to hold daily team or department meetings. This gives employees the opportunity to share concerns and trouble shoot problems while feeling an active and respected member of the agency. You can use team meetings or email to update staff on what carriers are doing related to coverage issues or premium payment options. With so much going on, it is understandable there is an increase in an agency’s E&O exposure. If an employee’s home environment causes more distractions, it is easier to forget to complete a step in a process, or to finish documenting the last
phone call. Employees are experiencing an increase in questions from customers related to COVID-19 and if not handled properly, can lead to E&O activity. Some inquire as to whether coverage applies to virus contamination, action of civil authority or business income. Care should be taken to avoid confirming or denying coverage, but rather submit all claims to the appropriate carrier. Commercial customers with remote workers in other states may need to obtain Workers Compensation coverage for those states. Some businesses may have retooled manufacturing processes to create medicalrelated products. Restaurants, pharmacies and others are offering delivery service which had not been included in their coverage in the past. Many businesses have had to shut down or reduce the number of employees, which has caused the need to adjust premium basis such as sales or payroll. Customers are requesting coverage be removed or suspended for vehicles or equipment not currently in use. Many customers are making claims for coverage that may not exist under their policy. All of this adds up to a lot more E&O exposure than in the past. The fallout from COVID-19 will continue well into the future, long after the remote workers have returned to the office. Regardless of the issues, continue to educate your employees and offer guidance for handling emerging concerns. Create a strong agency standard that all claims be reported to the carrier, even if the employee feels there is no coverage. Never deny or acknowledge coverage related to a claim rather submit the claim and let the carrier handle it. The checklist provided here can be used to confirm all areas are currently being addressed. If your employees have already returned to the office and resumed working the “new normal”, you can use this checklist to help develop your own action plan for better preparation in the unknown future.
Mary LaPorte, CPCU, CIC, LIC, CPIA, AINS is a consultant specializing in agency operations and E&O loss control. With over 40 years of insurance industry experience, she helps agencies develop internal E&O loss control programs and create efficiency and consistency in workflows. She is owner of LaPorte Consulting, LLC www.lpinsuranceconsult.com and acts as secretary for AAIMCo (American Association of Insurance Management Consultants)
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