PIA Connection - Insurance and Marijuana

2019 V11

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

INSURANCE and

MARIJUANA PIA MEMBER BENEFIT SPOTLIGHT:

Floodbroker.com page 21

2019 V11

PAGE 10-12

INSURANCE AND MARIJUANA

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS PRESIDENT Dennis D. Kuhnke, CIC, CPIA (WI) dkuhnke@robertsonryan.com PRESIDENT-ELECT Wayne F. White, CPA, CPIA, PFMM (AR) wwhite1948@aol.com VICE PRESIDENT/TREASURER Anthony Curti, CIC, LIC (MI) tcurti@acrisure.com SECRETARY/ASSISTANT TREASURER Gerald F. Hemphill, CIC, LUTCF (VA/DC) ghemphill@gfhinsurance.com IMMEDIATE PAST PRESIDENT Keith A. Savino, CPIA (NJ) keiths@warwickresource.com EXECUTIVE VICE PRESIDENT/CEO Mike Becker (PIA National) mikebe@pianet.org PUBLISHER/EDITOR-IN-CHIEF Ted Besesparis | tedbe@pianet.org MANAGING EDITOR Sade Hale | sadeha@pianet.org ADVERTISING DIRECTOR Alexi Papandon, CAE | alexipa@pianet.org GOVERNMENT AFFAIRS EDITOR Jon Gentile | jonge@pianet.org REGULATORY AFFAIRS EDITOR Lauren Pachman, Esq. | laurenpa@pianet.org MARKETING EDITOR Dana A. Anaman, CAE | danaan@pianet.org CONTRIBUTING EDITOR Patricia A. Borowski, CPIW PRODUCTION EDITOR Laurel Prucha Moran | laurelpm@blueroomstudio.com October 2019 PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

419 North Lee Street Alexandria, Virginia 22314 ©2019 All rights reserved.

The information in this publication is general in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers.

CONTENTS COVER STORY: INSURANCE AND MARIJUANA 10-12 Industry Faces Concerns Over Widespread Changes to Pot Laws PIA Moves Cannabis Protection for Agents Ahead in Congress ISO Revises Policy Forms to Address Cannabis NEWS BRIEF 6-7 Texas Tornadoes Were Costliest in State History…Dallas TV Station Chooses Football Over Tornado Warnings…InsurTech Funding Rises…

Insurance Jobs Flat in October…ACA Rates Drop for Second Year in a Row…Nationwide Expands Use of Agent Co-Op…

9

BUSY FALL FOR PIA PRIORITIES ON CAPITOL HILL TRIA, cannabis, tax relief on agenda JUST WHAT IS PARAMETRIC INSURANCE? A unique insurance product that can present E&O risk for agents.

15-16

WILDFIRES DEVASTATE CALIFORNIA Globally, each year of wildfire losses in 2017 and 2018 exceeded any previous decade going back to at least 1970.

17

IS CUSTOMER EXPERIENCE A CLICHÉ?

Tom Wetzel says it’s how you define it that matters.

18-19

DEPARTMENTS PIA National Member Benefits . . . . . . . . . . .20 PIA Member Benefit Spotlight . . . . . . . . . . .21 PIA Marketplace . . . . . . . . . . . . . . . . . .21 PIA Affiliate Listings . . . . . . . . . . . . . . . .22

All PIA members receive PIA Connection at the member subscription rate of $12.00 per year.

Non-member subscriptions available at $24.00 per year ppd.

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For additional information on any of the subjects addressed in this publication, please access the PIA National website at www.pianet.com.

Cover image: iStockphoto/Yarygin

2019 V11 | 3

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FROM THE PRESIDENT IT IS AN HONOR TO SERVE FOR A YEAR AS President of the PIA National.

Being president simply means that I am “One of Five”—the five officers who make up our executive committee. This is the group that governs our association, taking official actions on behalf of the PIA National Board of Directors between regularly scheduled meetings. We all pursue the same goals for success: Myself from Wisconsin, Wayne White from Arkansas, Tony Curti from Michigan, Gerald Hemphill from Virginia and Past president Keith Savino from New Jersey. We work as a team with long term goals we all have agreed upon.

We are helped immeasurable by our ex-officio team members, who strengthen our efforts: Past President Andy Harris, Services Board President Stan Logan, State Executives Society President Cathy Klasi and PIA of Puerto Rico Director Ariel Rivera. Not to be forgotten is our talented and accomplished leader and CEO Mike Becker along with his excellent and hardworking staff. They are always striving to take PIA to new

levels of success.

Due to our continued leadership excellence we have a reputation for aggressive advocacy on behalf of our members, along with an unwillingness to compromise away our member’s compensation in pursuit of legislation.

We are resilient and strong because we are a grassroots organization that has never lost sight of its main mission, to advocate for PIA Members I have the good fortune of serving as your President, coming on the heels of a string of great leaders and as “One of Five” pledge to continue our legacy of success.

Dennis Kuhnke President

FROM THE CEO ONE THING THAT MAKES INDEPENDENT agents

resilient is their ability to adapt to changes that are happening at an ever-increasing pace.

Just a few years ago, it would have been unfathomable that the cover story on an insurance agents’ magazine would be about marijuana. But things have changed.

This month in PIA Connection, PIA National’s counsel and director of regulatory affairs Lauren G. Pachman, Esq. takes an in-depth look at the insurance implications of the fact that marijuana is now legal for medical use in 33 states and the District of Columbia, and is legal for recreational use in eleven states and the District of Columbia. This, in spite of the fact that cannabis remains illegal on the federal level.

Businesses associated with cannabis are facing increasing insurance-related needs, raising questions about what insurance agents can legally do. That’s why PIA National pushed for key provisions protecting agents in the Clarifying Law Around

PIA CONNECTION | www.pianet.com

Insurance of Marijuana (CLAIM) Act that were included in H.R. 1595, the SAFE Banking Act of 2019, passed on Sept. 25 by the U.S. House of Representatives.

Insurance agents need to provide insurance to legal businesses, and need to be able to do so without risking running afoul of any laws.

This is just one of a host of emerging issues that independent agents will need to stay on top of in the coming years, as the pace of change in society accelerates. PIA National will always remain committed to keeping our members’ businesses safe and ahead of the curve.

Mike Becker CEO

2019 V11 | 5

NEWS BRIEF

iStockphoto/Dmytro Aksonov

!

DALLAS TV STATION CHOOSES FOOTBALL OVER TORNADO WARNINGS

INSURTECH FUNDING RISES

INSURANCE JOBS FLAT IN OCTOBER

Willis Towers Watson

Insurance industry jobs

reports that funding for

remained flat in October

the InsurTech industry

compared with September

reached $1.5 billion after

employment levels, accord-

83 deals were completed

ing to preliminary figures

in the third quarter

from the U.S. Labor Depart-

of 2019, a six percent

ment’s Bureau of Labor

increase from the previous

Statistics (BLS) as reported

quarter and the third-

by A.M. Best. This marks

highest quarter for global

the first time the industry

InsurTech investment to

showed stagnant hiring

date. Over the first three

since August 2018. The

quarters of 2019, invest-

October report follows a

ment in the InsurTech

series of jobs reports earlier

industry totaled $4.36

this year that showed surg-

A Dallas television station apologized in a statement to

billion across 239 transac-

ing employment levels.

viewers after airing a football game—rather than severe

tions. That marks a five

weather coverage—as a powerful tornado tore through

percent increase from the

the city. Folks who turned on Channel 5—(NBC Dallas-

total amount of invest-

Fort Worth)—shortly after 9:00 p.m. did not see infor-

ment during all of last

mative weather maps or urgent pleas to seek shelter.

year. Willis Towers Watson

Instead, a tense game between the Dallas Cowboys and

notes that “deal activity

Philadelphia Eagles flashed across the screen. There

is on pace to beat last

were no meteorologists, no radar plots, and little indi-

year’s total.”

cation that a 140 mph EF-3 funnel had been churning through northwest Dallas since 8:58 p.m.

“The continuing rise in InsurTech investment

It wasn’t until 9:06 p.m. that the station preempted the

acknowledges the enor-

football broadcast to deliver a “weather alert.” This

mous role technology has

was eight minutes after the twister touched down, six

to play in our industry,

minutes after a warning was issued, and two minutes

but we need to avoid

after the National Weather Service described it as a

becoming a sector jaded

“particularly dangerous” and “life-threatening” situation,

and frustrated by it,” said

in which “flying debris may be deadly.” The weather bul-

Andrew Johnston, global

letin lasted only 62 seconds. The tornado, which, at that

head of InsurTech at Willis

point, had carried debris to a height of more than 20,000

Re. “Today’s InsurTech is

feet, lasted 32 minutes.

as much about hype and

The backlash to the TV station’s choice to limit tornado coverage was swift. “Pushing people to an app or website is inexcusable when they have a broadcast signal,” wrote one Twitter user. “A game isn’t more important than people’s safety and lives,” tweeted another.

entrepreneurial culture as it is about appropriate technology for the insurance and reinsurance industry.”

Three of eight insurance industry sectors showed increases in September over August, with insurance agencies and brokerages up 0.18 percent, with 848,500 jobs.

ACA RATES DROP FOR SECOND YEAR IN A ROW The Trump administration says premiums for the most common type of health insurance sold through the Affordable Care Act’s (ACA) federal marketplace will drop by an average of four percent for 2020, marking the second consecutive year of lower monthly premiums.

CMS said 2020 rates are going down in 27 of the 39 states it studied. Further, only 12 percent of ACA customers live in counties

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www.pianet.com | PIA CONNECTION

NEWS BRIEF

that will have only one

bus, Ohio-based Nation-

insurer in the marketplace

wide announced its

next year, down from

intention to shift entirely

nearly 30 percent in 2018.

to an independent agency

More than two-thirds will

distribution model by July

have a choice of at least

1, 2020. The company is

three companies. However,

one of the largest carri-

despite these improve-

ers that currently sells

ments, an impending court

products through both

decision on the ACA’s con-

exclusive and independent

stitutionality still looms.

agents. “PIA would like to

Shutterstock/LeStudio

!

welcome all the Nation-

NATIONWIDE EXPANDS USE OF AGENT CO-OP

wide agents who will be

Nationwide Insurance

agent system,” said PIA

has announced an expansion in how independent agents can use co-op dollars. “Now, qualifying agents who partner with Nationwide are able to use co-op dollars to market to recruits, participate in training programs or pursue industry certifications,” Nationwide said in a press release, adding that agents can also use co-op dollars for membership and conference fees with PIA. On April 16, 2018, Colum-

moving to what we believe is the superior independent

“You can rest assured that,

TEXAS TORNADOES WERE COSTLIEST IN STATE HISTORY

to paraphrase Nationwide’s

The Insurance Council of Texas estimates that the

slogan, PIA is on your

nine tornadoes that hit the Dallas area on Oct. 20

side.”

caused about $2 billion in insured losses. The group

“These are just a few of

says the estimate is “pretty conservative,” but it

is a statement at the time.

the new market-leading enhancements we’re making to our co-op program to help our independent agent partners win in the market place, based on their unique needs,” said Shelley Brazeau Temple, president of P&C personal

makes the tornado outbreak the costliest in state history. It exceeds the $1.2 billion in insured losses caused by a Dec. 26, 2015, tornado that killed 10 people in the eastern Dallas suburbs. The strongest of the tornadoes was an EF3 twister with peak winds of 140 mph and was on the ground for more than 15 miles, according to the National Weather Service. The other Texas tornadoes had wind speeds ranging from 80 mph to 135 mph.

lines at Nationwide.

Frank and Ernest is used with the permission of the Thaves and the Cartoonist Group. All rights reserved.

PIA CONNECTION | www.pianet.com

2019 V11 | 7

THE FEDERAL LEGISLATIVE SUMMIT IS NOW

JOIN US

MARCH 31 - APRIL 1, 2020 IN WASHINGTON, D.C.

8 | 2019 V11

W W W. P I A A D V O C A C Y D AY. C O M

www.pianet.com | PIA CONNECTION

CAPITOL HILL REPORT

By Jon Gentile Vice President, Government Relations PIA National

BUSY FALL FOR PIA PRIORITIES ON CAPITOL HILL

THIS FALL HAS BEEN A BUSY time for PIA National’s legislative priorities. PIA National has been working to prevent a lapse of the National Flood Insurance Program (NFIP) and continuing progress on PIA-supported legislation to provide a long-term reauthorization of the program. In addition, PIA National is heavily engaged in ensuring a straightforward, long-term reauthorization of the Terrorism Risk Insurance Program well ahead of its scheduled expiration in December 2020.

Aside from those pressing issues, PIA National has also been advocating on the unfinished business of this Congress. As the first session of the 116th Congress ends, PIA National is redoubling our efforts on a few key issues: CANNABIS INSURANCE In September, H.R. 1595, the SAFE Banking Act, passed by a large bipartisan margin. This legislation includes important insurance provisions that PIA National helped develop to provide a legal safe harbor for independent agents who engage in insurance-related transactions associated with cannabis businesses that are otherwise permissible under state law. PIA National, along with allies in industry, worked to ensure these provisions were included in the SAFE Banking Act before it was considered on the House floor. Earlier versions only included protections for banks.

Since its passage, PIA National’s PIA CONNECTION | www.pianet.com

advocacy team has been busy working with senators to get the Senate to consider the House-passed bill. With 33 states having legalized marijuana in some form, it’s crucial that insurance agents are protected when they engage in the business of insurance with cannabis-related businesses.

CADILLAC TAX REPEAL The Middle-Class Health Benefits Tax Repeal Act (H.R. 748) was passed by the House on July 17 by a vote of 4196. PIA National has long made it a top priority to repeal this 40 percent excise tax on certain employer-sponsored health plans known as the “Cadillac tax.” In fact, the tax has never been implemented, in large part due to the advocacy of PIA National and our members, as its implementation date has been delayed time and time again.

With the Cadillac tax currently set to take effect in 2022, PIA National is still working to have it repealed once and for all. With repeal passing the House so early in the 116th Congress, PIA is hopeful that the Senate will have enough time to act in kind. The repeal or, if necessary, the additional delay, of this unfair tax will continue to be a major priority for PIA National.

aggressively advocated for this tax relief, a 20 percent deduction for qualifying passthrough entities, included in the tax reform package signed into law in December 2017.

PIA National led the way in advocating for the language that was passed

by Congress to be interpreted as granting the deduction to insurance agents, and our advocacy paid off when our position was adopted by the U.S. Treasury and the IRS. Unfortunately, the passthrough deduction was not made permanent in the tax law like it was for C corporations. As a result, the tax deduction for PIA members who organize as qualifying passthroughs will end on December 31, 2025, unless Congress acts.

PIA National has begun to lay the groundwork to make the tax deduction permanent by supporting H.R. 216/S. 1149, the Main Street Tax Certainty Act. While there are still five years before the deduction expires, PIA has continued to take the lead on this issue and views it as a top priority for Congress to act on as quickly as possible.

Jon Gentile is vice president of government relations of PIA National.

LEADING ON TAX RELIEF FOR PASSTHROUGHS PIA National’s advocacy has already led to the passage of tax relief legislation for insurance agencies that organize as S corporations, or passthroughs. PIA National 2019 V11 | 9

PIA LEGAL ANALYSIS

By Lauren G. Pachman, Esq.

INSURANCE AND MARIJUANA Industry Faces Concerns Over Widespread Changes to Pot Laws

THE LEGAL STATUS OF cannabis has been evolving over the past several years in state capitals around the country. While cannabis remains illegal federally, more than half of all U.S. states have legalized some form of recreational or medical marijuana, contributing to a precipitous rise in the demand for cannabis.1 The substance is legal for medical use in 33 states and the District of Columbia, and it is legal for recreational use in 11 states and the District of Columbia. In fact, in 2018, the cannabis industry brought in over $10 billion in sales, and it is now one of the fastestgrowing job markets in the United States.2 The legality of cannabis is two separate issues on the federal level. One is that cannabis is illegal. The other is that marijuana, the psychotropic drug made from cannabis, is a Schedule 1 drug. While its illegality is a concern for insurance and other financial services businesses in terms of their being subject to criminal and/or civil penalty, perhaps a bigger issue for many of them is its status as a Schedule 1 drug and the potential reputational risk that could come with insuring businesses

1 NAIC: “Cannabis and Insurance,” https://content.naic.org/cipr_topics/ topic_cannabis_and_insurance.htm.

2 “From Seed to Sale,” https://www.amwins.com/insights/ article/from-seed-to-sale-the-top5-issues-impacting-the-cannabisinsurance-industry_9-19.

10 | 2019 V11

connected to the manufacture or sale of such a drug.3 INSURING CANNABIS BUSINESSES This sea change in public policy and resulting business growth means that businesses associated with cannabis are facing increasing insurance-related needs. However, on the federal level, cannabis is still considered illegal in accordance with the Controlled Substances Act, which characterizes it as having “no currently accepted medical use in treatment in the United States.”4 For that reason, many members of the insurance industry are hesitant to develop products or services to meet the needs of cannabisrelated businesses. Those insurers and agents who have entered this area of the market are doing so cautiously, by offering basic policies that may not meet the needs of larger or more complex cannabis-related businesses.5 Right now, cannabis insurance coverage remains an underserved area of the market, primarily because it is still illegal on the federal level.

Its availability and affordability may improve, though, as federal cannabis

3 “What are Banks and Lenders Really Worried About When It Comes to Cannabis?” https://www.insurancebusinessmag.com/us/ news/cannabis/what-are-banks-and-lendersreally-worried-about-when-it-comes-tocannabis-188741.aspx.

policy evolves.6 Signs of that evolution began earlier this year with the House passage of a spending bill, H.R. 15957, that protects from federal punishment those banks and other financial-sector actors – including insurance carriers and agents – that do business with those in the lawful cannabis industry.

H.R. 1595, or the Secure and Fair Enforcement (SAFE) Banking Act, would prevent federal banking regulators from punishing banks that work with cannabis-related businesses and protect other financial service businesses that work with the cannabis industry from being charged with related crimes.8 While the SAFE Banking Act has passed the House, it still faces challenges in the Senate, where Banking Committee chair Mike Crapo has expressed some trepidation about supporting the bill because of the message it would send. Crapo does not support the nationwide legalization of cannabis but has said he would like to see the federal and state discrepancies resolved in a way that permits federal banks to legally engage with

6 “Market Conditions in the Cannabis Space ‘Change by the Day, if Not by the Hour,’” https://www.insurancebusinessmag.com/us/ news/cannabis/market-conditions-in-thecannabis-space-change-by-the-day-if-not-bythe-hour-172933.aspx.

4 “Cannabis and Insurance.”

7 Bill text is available at https://www.congress.gov/116/bills/hr1595/ BILLS-116hr1595rfs.pdf.

5 “From Seed to Sale.”

8 “From Seed to Sale.”

www.pianet.com | PIA CONNECTION

iStockphoto/CasarsaGuru

cannabis-related businesses.9 While actual cannabis remains federally illegal, the most recent version of the Farm Bill, which passed at the end of 2018, included provisions legalizing hemp and cannabinoids (CBD), parts of the cannabis plant that can be used to manufacture other products.10 Because these two products are now legal on the federal level, they must be insured separately from any cannabisrelated business insurance. With their newly legal status, products to insure them are available exclusively in the excess and surplus lines market for the moment.11 Although the legalization of cannabis across most states provides openings for those in the insurance

9 “Crapo Plans Landmark Cannabis Banking Vote,” https://www.politico.com/story/ 2019/09/13/crapo-cannabis-bankingvote-1729925.

10 “From Seed to Sale.”

11 “From Seed to Sale.”

“(I)T IS COMMON SENSE TO PROTECT INSURANCE AGENTS FROM PROSECUTION FOR DOING BUSINESS WITH CANNABIS-RELATED BUSINESSES IN STATES WHERE THEY ARE LEGAL.” industry to capitalize on new business opportunities, those opportunities come with their own risks. For instance, there are no multi-state policies.

Evolving Industry Landscape As parts of the overall economy are cleared to legally conduct business with marijuana businesses that are legal at the state level, it is expected that insurance companies will increase their involvement in providing cannabis-related coverage. Until then, banks and other members of the financial services industry take on potential federal criminal and civil liability when they engage with cannabis-related businesses. Violations of federal law

prohibiting financial institutions from engaging in cannabis-related transactions can involve fines of hundreds of thousands of dollars and jail time for those involved.

As a result, most cannabis businesses remain cash-only, or “unbanked.” Operating on a cash-only basis complicates much of their business by making it harder for them to pay employees and taxes, for example.

Being cash-only also compounds their risks by subjecting them to a greater risk of theft.12 The increased

12 “Cannabis and Insurance.”

CONTINUED ON PAGE 12

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2019 V11 | 11

INSURANCE AND MARIJUANA CONTINUED FROM PAGE 11

risk of theft also increases the risk that employees and/or consumers will suffer physical harm.13 Currently, the marketplace has addressed this issue by largely excluding assault and battery from its policies.14 Cannabis businesses are also subject to the same kinds of risks other businesses face, including fires, workplace accidents, property damage, and crop

losses.15 Most of the states in which cannabis can be successfully grown outdoors are at high risk for natural disasters (hurricanes, earthquakes, floods, etc.), so carriers are reluctant to provide Outdoor Crop Coverage, and those that do often charge cost-prohibitive rates.16 Cannabis growers often need coverage for Goods in Process, which is coverage for damage to

15 “Cannabis and Insurance.”

13 “From Seed to Sale.”

14 “From Seed to Sale.”

16 “Market Conditions in the Cannabis Space ‘Change by the Day, if Not by the Hour’”; “From Seed to Sale.”

PIA MOVES CANNABIS PROTECTIONS FOR AGENTS AHEAD IN CONGRESS Major players in the property & casualty insurance industry reacted positively to the U.S. House of Representatives passing H.R. 1595, the SAFE Banking Act of 2019 on Sept. 25, 2019.

The SAFE Banking Act includes key provisions from an insurance-focused cannabis bill that could protect insurance agents involved in servicing cannabisrelated businesses in states where such business is legal. The vote was 321-103.

At first, the SAFE Banking Act only applied to banks. Then, the National Association of Professional Insurance Agents (PIA National) and other allies secured key parts of the PIA National-supported Clarifying Law Around Insurance of Marijuana (CLAIM) Act into the bill.

The addition of key provisions of the CLAIM Act in the SAFE Banking Act will prevent federal criminal prosecution of and civil liability for agents, brokers and insurers, and their officers, directors and employees when engaging in the business of insurance in states that have legalized cannabis in some form.

“PIA National supports the SAFE Banking At now that it includes the provisions from the CLAIM Act that protect insurance agents,” Jon Gentile, vice president of government relations for PIA National, said. “We will continue to advocate for its passage and have already begun to work with Senators to urge the bill’s passage.”

“Thirty-three states have medical marijuana laws and eleven states have legalized it for recreational use,” Gentile said. “As such, it is common sense to protect insurance agents from prosecution for doing business with cannabisrelated businesses in states where they are legal.”

“Insurance agents are neither enemies nor supporters of cannabis itself. They simply provide insurance to businesses that do business with legal entities.”

growing crops and Finished Stock, which is coverage for crops still in the policyholder’s possession that are ready to move to the next stage of production.17 Additionally, cannabis retailers are at least as much at risk for slip-and-fall claims as any other retailers would be, but standard General Liability policies typically exclude marijuana coverage because of its status as a Schedule 1 drug on the federal formulary.18 Plus, unlike most other businesses, the product itself is at a high risk for theft and resale for exorbitant sums on the black market. Cannabis dispensaries are common targets of such attacks, and that risk puts employees and customers in greater danger than those who work at or patronize other retail establishments. Potential policyholders can mitigate their risks by taking steps like having armed security people on site and using armed car services to transport the product.

Businesses with strong risk management programs may be able to obtain more comprehensive coverage at a lower cost.19 Additionally, dispensaries need professional medical liability coverage for health care providers like pharmacists and physicians, but such coverage is difficult to find in the current marketplace.20 Like other areas of cannabisrelated insurance, it is an evolving market.

Carriers’ calculations might change if the risks associated with cannabis businesses did not include federal legal liability. This problem extends beyond

17 “From Seed to Sale.”

18 “From Seed to Sale.”

19 “From Seed to Sale.”

20 “From Seed to Sale.”

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standard commercial general liability insurance. Many lack appropriate and adequate insurance coverage to protect themselves against all kinds of losses.

NEW PRODUCTS AND EMERGING SOLUTIONS As the saying goes, necessity is the mother of invention, and the need for new and creative products fosters their development. One such product is known as “Budtenders E&O,” which protects clerks at dispensaries who recommend specific products or provide advice to consumers. This new product is typically offered as part of a general liability policy, even though there seems to be growing demand for it as a stand-alone policy.21 So far, because insurance coverage for cannabis-related businesses has been largely in the surplus and excess lines marketplace, the chances for independent agents to become involved in this burgeoning business have been limited. However, as the trend toward cannabis legalization continues apace, more agents will find business opportunities available in the cannabis-related insurance industry.

Plenty of openings in the industry exist; the question is whether your agency will be ready to fill them.

difficult to imagine the House would return to Republican control. And with a Democratic president and a Democratic House, it is possible that federal decriminalization could, for the first time in history, be placed on the national agenda.

One thing is for certain: around the country, cannabis businesses are not going away anytime soon. Agents would be wise to embrace these business opportunities before they go up in smoke.

“INSURANCE AGENTS ARE NEITHER ENEMIES NOR SUPPORTERS OF CANNABIS ITSELF. THEY SIMPLY PROVIDE INSURANCE TO BUSINESSES THAT DO BUSINESS WITH LEGAL ENTITIES.”

Lauren G. Pachman, Esq. is counsel and director of regulatory affairs of PIA National.

ISO REVISES POLICY FORMS TO ADDRESS CANNABIS The Insurance Services Office (ISO) has released its first cannabis-related endorsements to the business owner form, including changes to property and liability coverage for cannabis operations. ISO develops standard insurance policy forms for use by insurers.

With an increasing number of states legalizing marijuana for medical or adult-use and the 2018 Farm Bill legalizing hemp (in certain circumstances), ISO recognized that cannabis-related property may no longer constitute “contraband” under the business owners policy. Thus, ISO released five Cannabis Endorsements, which were approved for use in a majority of states in September 2019: • BP 15 30-Cannabis Property Exclusion

WHAT’S NEXT? Some states are unlikely to ever pass cannabis legalization legislation unless federal decriminalization happens first, so, at the state level, we may be at or near a state-legalization impasse. However, the next couple of years could provide a clue about the future of cannabis legalization. If the next president is a Democrat, it’s

• BP 15 31- Cannabis Property Exclusion with Hemp Exception • BP 15 32-Cannabis Liability Endorsement • BP 15 33-Cannabis Liability Exclusion with Hemp Exception • BP 15 34-Cannabis Liability Exclusion with Hemp Exception and Lessors Risk This new release provides five cannabis exclusion endorsements; two of the endorsements change property coverage for cannabis, and the other three endorsements change liability coverage for cannabis. As with any insurance policy or endorsement, understanding the specific language of these new cannabis endorsements is critical to any insured engaging in cannabisrelated activity.

21 “From Seed to Sale.”

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2019 V11 | 13

NORTH DAKOTA COMMISSIONER NAMED WORLD’S TALLEST POLITICIAN BY GUINNESS NORTH DAKOTA INSURANCE Commissioner Jon Godfread announced that he was named World’s Tallest Politician (male) by Guinness World Records.

Godfread’s official height is 6 feet, 10 inches (210.767 centimeters) tall as verified in Bismarck on Oct. 4.

“This was a fun opportunity to bring some good news back to North Dakota, and of course, it’s an honor to be recognized as a world record holder,” Godfread said. “This is also a great opportunity to highlight the work we do at the North Dakota Insurance Department and remind consumers that we are a consumer protection agency serving the people of North Dakota. There are no dumb questions when it comes to insurance, even if it’s about my height. We welcome the opportunity to highlight the work we do and the work of my colleagues across the country.”

Godfread has been an active voice in discussions about

insurance regulations including the use of technology, air ambulance service and health care reinsurance. He currently chairs the Innovation and Technology Task Force for the National Association of Insurance Commissioners (NAIC).

Prior to serving as Commissioner, Godfread was most recently Vice President of Governmental Affairs for the Greater North Dakota Chamber in Bismarck. His background also includes banking and professional athletics. He has held prominent roles in discussions around the Affordable Care Act (ACA), across-the-board tax reductions for North Dakotans, the creation of the North Dakota Outdoor Heritage Fund, K–12 education efforts and more.

Godfread earned a law degree and a Master of Business Administration (MBA) from the University of North Dakota in 2011. He earned his bachelor’s degree in business with honors from the University of Northern Iowa in 2005.

SELECTIVE IS PROUD TO RECEIVE THE

2019 COMPANY AWARD OF EXCELLENCE

FROM THE NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

© 2019 Selective Ins. Group, Inc., Branchville, NJ. Products vary by jurisdiction, terms, and conditions and are provided by Selective Ins. Co. of America and its insurer affiliates. Details at selective.com/about/affiliated-insurers.aspx. INST-19-046

14 | 2019 V11

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GUEST COLUMN

By Jim Dobler, CPCU

JUST WHAT IS PARAMETRIC INSURANCE?

YOU ARE SITTING AT GATE 22 at Ronald Reagan

Airport waiting to take a Southwest Airlines flight back to Omaha. Suddenly, an airline representative at the Gate counter announces that your flight has been cancelled. You check with Southwest and it will be two days before they can get you on another flight to Omaha. Now you have two days of hotel room expense, meals, and well, I suppose a cocktail or two! However, within a day or two of the announcement of the cancellation of your flight, your checking account is credited with $2,000.00.

You knew from past experience that sometimes in major

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PARAMETRIC INSURANCE CAN PRESENT SOME E & O RISK FOR AGENTS. airports you have been stuck with a can90ikcelled flight. In visiting with your travel agent about your business travel troubles, she suggested parametric insurance coverage (flight insurance) in the amount of $2,000.00 with a surplus lines insurance company. You smile as you sit in the lounge of the Willard Hotel on Pennsylvania Avenue sipping on a cocktail, and you toast your travel agent for recommending the flight insurance policy.

Much of what follows is based upon a CPCU Society webinar about parametric insurance.

HOW IT’S DIFFERENT Parametric insurance is a contract in which the insured, agent and insurer agree, in advance, on an amount of coverage and a specific set of data that automatically triggers payment of the face amount of the policy. In this example, the coverage amount is agreed to be $2,000.00. The data which triggers coverage is cancellation of a flight.

Parametric insurance is a very transparent product since the insurer and insured know the trigger of coverage on an equal basis. Once the flight is cancelled, a covered claim is triggered and payment of the policy limit is made. In addition to cancellation of a flight, you can buy parametric insurance for flight delays. Usually, the minimum covered delay is one lasting two hours.

In Florida, parametric insurance for hurricanes is offered by several insurance companies. The coverage trigger is wind speed. For a commercial business, the coverage amount might be $500,000.00. Once wind speed exceeds the trigger, the face amount of the policy is paid immediately to the insured. The advantages of this type of insurance are: Transparency. The insured and insurer both know exactly when coverage is triggered.

Speed. The claim is settled and paid within one or two days after the trigger for coverage has been met.

CONTINUED ON PAGE 16

2019 V11 | 15

JUST WHAT IS PARAMETRIC INSURANCE? CONTINUED FROM PAGE 15

“THIS IS AN EMERGING AREA OF INSURANCE COVERAGE.”

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Minimal underwriting expense.

There is no loss adjusting activity and very little underwriting associated with this insurance. The acquisition expense is minimal.

Another key difference: Parametric insurance does not cover specific property. According to Kate Stillwell, Founder and CEO of Jumpstart, a licensed surplus lines broker located in California, parametric insurance is designed to ease or mitigate various life interruptions or inconvenience associated with certain types of risk of loss. Her surplus lines agency issues an earthquake parametric insurance product in a coverage amount of $10,000.00. The annual premium is $240.00. It can apply to two events

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16 | 2019 V11

in one policy period. This policy automatically pays the full coverage amount when “ground velocity” in a California earthquake exceeds ‘X’ amount. The ground velocity speed is the data trigger that results in immediate payment. This data is generated by seismic monitoring stations maintained by the United States Geological Survey. Some employers are buying this earthquake product for employees as a fringe benefit.

Insurers in Great Britain are using parametric insurance for the flood risk exposure. Apparently, policyholders maintain sensors on their property which will provide a flood data trigger resulting in immediate payment of the face amount of the policy. AXA insurance company has parametric insurance products related to weather, such as drought, precipitation and frost.

A construction company might buy weather-related parametric coverage that applies when there is excessive precipitation which delays work at the construction site. An ice cream store might buy weather-related parametric coverage in case of excessive frost and cold weather which reduces sales of ice cream. I think we may see it in the cyber security risk exposure. It might be triggered by an internet outage for X amount of time across Y percent of the network. It is not yet available for the wildfire exposure in California, but it is expected to be available in the nottoo-distant future.

E&O RISK FOR AGENTS Parametric insurance can present some E & O risk for agents. This insurance is only a stop-gap product and not designed to cover an entire specific property loss or a total loss. The “basis

“THERE IS NO LOSS ADJUSTING ACTIVITY AND VERY LITTLE UNDERWRITING ASSOCIATED WITH THIS INSURANCE.” risk,” or cost, related to purchase of property remains with the insured. It is important for the agent to be very specific about explaining the coverage, since it does not work like traditional insurance.

According to Stillwell, this was the primary concern of the California Department of Insurance.

This product also requires higher liquidity for the insurer. Payments are made very quickly. Parametric insurance is best suited for risk exposures not covered by traditional insurance.

Good potential customers might be young habitational clients with no car and no house. I think it also has potential on the commercial side, including the farm risk exposure, perhaps associated with business interruption losses.

Various homeowner or condominium associations might have a need.

Overall, this is an emerging area of insurance coverage and, if nothing else, it is probably important for agents to be aware and watch for new parametric insurance coverage products that might be useful for some clients— while being fully aware of E&O risk and the fact that this is a very specialized product.

Jim Dobler, CPCU, is Legislative Coordinator of PIA of Nebraska.

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iStockphoto/FrozenShutter

WILDFIRES DEVASTATE CALIFORNIA AS OF OCTOBER 30, AT LEAST 18 confirmed wildfires continued to burn throughout the state of California, putting nearly 26 million residents under red flag warnings as hurricaneforce winds fueled the flames. One damage estimate has already reached $25.4 billion and counting.

Utilities, including Pacific Gas and Electric, the state’s largest electricity provider, shut off power to hundreds of thousands of customers ahead of the wildfire threat. Power was being restored as the winds died down.

In 2018, wildfires destroyed 8.76 million acres of land in the United States, according to the National Interagency Fire Center. Wildfires are most common in the west where heat, drought and thunderstorms create favorable wildfire conditions. However, uncontrolled fires can and have occurred in most of the 50 states.

The insurance industry had long regarded wildfires as a secondary peril that wouldn’t cause more than a few 12

billion dollars in damage. Hurricanes and earthquakes, which can cause tens of billions of dollars in damage, are considered primary perils.

But the 2017 and 2018 wildfires cost insurers more than $24 billion, according to the California Department of Insurance. Globally, each year of wildfire losses in 2017 and 2018 exceeded any previous decade going back to at least 1970, according to reinsurance brokerage Guy Carpenter.

“Wildfires can burn acres of land in a few minutes, devouring everything in its path—trees, cars and homes,” said Eric A. Cioppa, National Association of Insurance Commissioners (NAIC) President and Superintendent of the Maine Bureau of Insurance. “That is

why it is important to do what you can to lessen your risks and to make sure that you are financially prepared to rebuild should a catastrophe strike.”

For more information on protecting your home from wildfire, visit you state insurance department’s website.

“In an effort to assist victims of these devastating fires, we are continuing to work closely with other federal, state and local agencies to assist in recovery issues related to insurance,” said the California Department of Insurance, in a statement. “Please work with your agent, insurer claims adjuster, and insurer with a goal of achieving a settlement that you believe is fair and consistent with your coverage.”

Acres burned (millions)

10 8 6 4 2 0

1980

1985

1990

1995

2000

2005

2010

2015

2018

Year * 2004 fires and acres do not include state lands for North Carolina.

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Source: National Interagency Fire Center.

2019 V11 | 17

$

AGENCY MARKETING

By Tom Wetzel

IS CUSTOMER EXPERIENCE A CLICHÉ?

IT’S HOW YOU DEFINE IT THAT MATTERS DELIVERING THE BEST POSSIBLE CUSTOMER experience must be a #1 priority for PIA members. But what does that mean? Every agent strives to provide sound advice, fair prices, quick action on a claim and an empathetic ear. In today’s digital marketplace, however, that’s not enough. To make real progress, customer experience can’t be an abstract, poorly defined goal but must be broken down into many parts, tied to specific and measurable actions and given constant attention. Response times for even the smallest of tasks must be reduced, agents must measure themselves against businesses outside insurance and can’t just blame carriers and their agency management systems for any deficiencies.

The agency that delivers a great customer experience can differentiate itself more successfully from their competitors, but only if they expand their definition of the concept.

Consumers now value timeliness over professionalism and efficiency. It matters if the time it takes to find information on the agency website takes five minutes instead of one. It matters if no one is available over the lunch hour. It matters when phone tag or waiting on hold are all too frequent. It matters that policyholders and prospects can’t text at their convenience. Like it or not, we all live in an instant gratification environment so minutes can mean meeting the expectations of clients and prospects or pushing them away.

THINK MINUTES, NOT HOURS OR DAYS Reexamine the tasks you perform everyday and ask yourself, “how can we get these done more quickly and reduce stress for the customer?” These can include tasks you perform directly for clients and others they don’t see that nevertheless benefit them. If you don’t already, track the questions and requests and how long they take to resolve. Consider the common requests, including: • Delivering a quote.

• Providing proof of insurance.

• In auto insurance, adding or removing drivers and vehicles.

• Billing options including payment plans, account

18 | 2019 V11

balances and payment status.

• Making alterations in coverages, deductibles and endorsements.

MESSAGING IS A MUST, BUT DON’T TAKE SHORTCUTS In the 2018 Insurance Digital Transformation Survey, only seven percent of agencies offered any form of live chat, a fact that underscores a disconnect between how agents use digital tools at work and how they use them as individuals. If you use Facebook Messenger or text on your smartphone to keep in touch with family and friends, why would you not use texting in some form to keep in touch with clients?

Live chat works for some agents but still has not caught on widely and messaging is now emerging as a dominant tool. It’s important to note that chat and messaging are not the same.

Live chat interactions are synchronous, which means the parties need to be actively available at the same time. Utilizing a chatbot after business hours mitigates but does not eliminate this weakness. Live chats are session-based—so once ended the entire conversation thread may be lost. Some systems may save the conversation for 24 hours and may permit a cut-and-paste process to an agency management system. The problem here, of course, is that these extra steps take time. Chats also lack context, so if a policyholder recontacts the agency for followup, they will likely end up having to repeat part of the previous conversations. Again, more time lost. Lastly, if a policyholder needs to share a screenshot to add detail, that usually requires a separate email.

IF YOU TEXT ON YOUR SMARTPHONE TO KEEP IN TOUCH WITH FAMILY AND FRIENDS, WHY WOULD YOU NOT USE TEXTING IN SOME FORM TO KEEP IN TOUCH WITH CLIENTS? www.pianet.com | PIA CONNECTION

Messaging is asynchronous, which means the two parties can communicate without being available at the same time.

Messaging is also contextual, so the next time a policyholder or prospect has a question, the agent would know exactly what that previous interaction looked like because they will see them in real time. Messaging is also a huge cost-saver. Messaging is far less expensive than a phone call. In addition, agencies that offer messaging give policyholders who prefer it (Millennials shun the phone) one more convenience.

Messaging services, including those offered or in development by some agency systems, vary widely in ease of use, deployment and archive options, access to performance data, cost and level of security. These services typically promise endto-end encryption to protect data during transmission. What most of these services leave unclear, however, is the ownership of the data once it’s stored. Who controls its use at that point and if it will be shared with third parties in order to generate additional revenue? One service, for example, states that when an agency terminates its service, it will provide only a copy of the agency’s data. Buyer beware.

RETHINK YOUR DATA Time was we all thought content was king. No more. Content is not unimportant, but data is now a critical asset and you must protect it. Every app and digital tool you use collects data.

Many, if not most, freely share that data with third parties and some sell it. Most people understand that posting something to Facebook or searching on Google is tracked. When searching for products online to purchase, ads for those items appear the next time a consumer jumps online. Or when placing an order online for an item, ads for related items appear. There is a value to that. Given the critical nature of agency data, however, PIA members need to be hyper-vigilant to the outside services they choose to use and to understand their privacy, security and data-sharing policies in detail. Your data should remain your data, period.

THE LEANER, MEANER WEBSITE The structure of websites and their function will be unrecognizable in three years or less. Websites will transform from largely static, text-heavy sites to far leaner, conversational search engines. Today’s consumers don’t want to spend time browsing through many website pages to find answers when they can just ask questions in their own voice as many already do with voice assistants such as Alexa, Siri, and Google Assistant. Nielsen’s reports that 24 percent of US households

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already own a smart speaker and forty percent of those households own multiple speakers. Those numbers will continue to rise, so the takeaway is this: pay attention to the metrics of your website, cut down the number of pages, especially the ones no one visits and add messaging to make it more interactive. When you can, redo your current site top-to-bottom, preferably sooner not later.

PIA agents cannot live in a vacuum and compare themselves only to peers. Measure your performance to services outside our industry. Insurance consumers certainly do. Then take the necessary steps to adapt to the digital age we all live in.

Tom Wetzel is CEO of Thomas H. Wetzel & Associates, an insurance marketing firm for independent agents whose signature services include the widely praised Digital Roadmap©, website design and maintenance, digital marketing training, blogging, and email marketing. An insurance communicator for over 30 years, Wetzel has conducted presentations and workshops to thousands of insurance professionals across the country, served as the social media columnist for Rough Notes and now writes a column for agents called “Tech Talk” for the Insurance Journal. He is also on the faculty of the Academy of Insurance. He can be reached at twetzel@wetzelandassociates.com and found on Facebook at “Social Media Management for Insurance,” Twitter and LinkedIn.

MORE MARKETING SUPPORT FROM PIA PIA members have access to a wealth of marketing tips in past and present issues of the annual PIA Agency Marketing Guide. Read them all at www.PIAAgencyMarketingGuide.com.

PIA wishes to thank the sponsors of the 2019 PIA Agency Marketing Guide: American Reliable Insurance Company; the PIA DMV: PIA’s Direct Marketing Vault; Progressive Insurance and Smart Choice.

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PIA MEMBER BENEFIT SPOTLIGHT

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HOW DOES IT WORK? Floodbroker has automated the process of finding flood insurance rates through the National Flood Insurance Program (NFIP). Here’s how it works: 1. PIA members signing up with Floodbroker receive their very own agency-branded, flood insurance microsite with the NFIP rating technology baked in.

2. They then direct clients and prospective insureds to their microsite where they can determine their flood zone and see the NFIP rates available to them.

3. The resulting “quote” is emailed to their agent who completes the sale offline using their agency’s regular flood insurance carrier.

SAVE STAFF TIME WHILE INCREASING SALES Floodbroker clients maximize staff time and sales by delivering qualified leads straight to their inbox from interested clients and prospective clients who filled out the online form on the agency’s Floodbroker microsite.

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PIA AFFILIATES ALABAMA

MARYLAND

OREGON/IDAHO

PIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

Insurance Agents & Brokers of Maryland 5050 Ritter Rd, Mechanicsburg, PA 17055-0763 PHONE: (717) 795-9100 | FAX: (717) 795-8347 e-mail: iab@iabforme.com | Web Site: www.iabforme.com

PIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665 PHONE: (888) 246-4466 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

MASSACHUSETTS

PENNSYLVANIA

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

MICHIGAN

PUERTO RICO & CARIBBEAN

Michigan PIA, P.O. Box 99579 Troy, Michigan, 48099 PHONE: (616) 454-4461 | FAX: (616) 454-4491 e-mail: inquiry@mipia.com | Web Site: www.mipia.com

PIA of Puerto Rico and the Caribbean Inc KOI Building, Urb. Muñoz Rivera, Acuarela Street, 3A, Office G – 10, Guaynabo, PR 00969 PHONE: (787) 387-9696 | FAX: (787) 792-4745 e-mail: administration@piaofpr.org | Web Site: www.piaofpr.org

ARKANSAS PIA of Arkansas Inc. 102 Country Club Parkway, Suite 201, Maumelle, AR 72113 PHONE: (501) 225-1645 | FAX: (501) 225-2550 e-mail: evp@piaar.com | Web Site: www.piaar.com

CA/NV/AZ/NM PIA Western Alliance, 3205 Northeast 78th St #104, Vancouver, WA 98665 PHONE: (888) 246-4466 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

COLORADO

MINNESOTA

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

PIA of Minnesota, 8646 Eagle Creek Circle, Suite 202, Savage, MN 55378 PHONE: (866) 694-7070 | FAX: (866) 749-8678 e-mail: info@piamn.com | Web Site: www.piamn.com

CONNECTICUT

MISSISSIPPI

PIA of Connecticut, P.O. Box 997, Glenmont, NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

PIA Southern Alliance, 3805 Crestwood Pkwy. NW, Ste. 140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

DELAWARE

MISSOURI

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

Missouri Association of Insurance Agents 3315 Emerald Lane, Jefferson City, MO 65109-6878 PHONE: 573-893-4301 | FAX: 573-893-3708 e-mail: mbarton@moagent.org | Web Site: www.missouriagent.org

FLORIDA PIA of Florida, Inc., 419 N. Lee Street, Alexandria, VA 22314-2353 PHONE: (850) 893-8245 | FAX: (703) 549-5190 e-mail: piafl@piafl.org | Web Site: www.piafl.org

MONTANA

RHODE ISLAND PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

SOUTH CAROLINA PIA of South Carolina, PO Box 6167, Columbia, SC 29260 PHONE: (803) 772-0557 | (888) 742-6372 | FAX: (803) 772-0846 e-mail: PIASC@piasc.net | Web Site: www.piasc.net

SOUTH DAKOTA PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

TENNESSEE

PIA Western Alliance, 3205 NE 78th St Ste 104, Vancouver, WA 98665-0697 PHONE: (888) 246-4466 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

PIA of Tennessee Inc 504 Autumn Springs Court Suite A-3, Franklin, TN 37067 PHONE: (615) 771-1177 | FAX: (615) 771-3456 e-mail: piatn@piatn.com | Web Site: www.piatn.com

NEBRASKA/IOWA

TEXAS

HAWAII

PIA of Nebraska/Iowa, 920 South 107th Avenue, Suite 305, Omaha, NE 68114 PHONE: (402) 392-1611 | FAX: (402) 392-2228 e-mail: cathy@pianeia.com | Web Site: www.pianeia.com

PIA of Texas 5605 N. MacArthur Blvd. Suite 1000, Irving, TX 75038 PHONE: (972) 862-3333 | FAX: (972) 307-7888 e-mail: vicki@piatx.org | Web Site: www.piatx.org

PIA of Hawaii, 1247 Kelewina St. Kailua, HI 96734 PHONE: (808) 261-9460 | FAX: (808) 262-5355 e-mail: piahi@hawaiiantel.net | Web Site: www.piahawaii.com

NEW HAMPSHIRE

UTAH

PIA of New Hampshire, P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

Utah Association of Independent Insurance Agents 4885 S. 900 E., Suite 302, Salt Lake City, UT 84117 PHONE: (801) 269-1200 | FAX: (801) 269-1265 e-mail: ctimothy@srvins.com | Web Site: www.uaiia.org

GEORGIA PIA Southern Alliance, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096 PHONE: (770) 921-7585 | FAX: (770) 921-7590 e-mail: info@piasouth.com | Web Site: piasouth.com

ILLINOIS PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

INDIANA PIA of Indiana, 50 E. 91 Street Ste. 207 Indianapolis, IN 46240 PHONE: (317) 899-9200 | FAX: (317) 493-0408 e-mail: info@piaindiana.com | Web Site: www.piaindiana.com

KANSAS

NEW JERSEY PIA New Jersey, P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

NEW YORK PIA New York, P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

VERMONT PIA of Vermont P.O. Box 997, Glenmont NY 12077-0997 PHONE: (800) 424-4244 | FAX: (518) 434-2342 e-mail: pia@pia.org | Web Site: www.pia.org

VIRGINIA/DC

NORTH CAROLINA

PIA Assn of Virginia & DC 8751 Park Central Dr., Ste 140, Richmond, VA 23227 PHONE: (804) 264-2582 | FAX: (804) 266-1075 e-mail: kevin@piavadc.com | Web Site: www.piavadc.com

KENTUCKY

PIANC, PO Box 1387 Davidson, NC 28036 PHONE: (704) 534-2338 e-mail: jim@pianc.net | Web Site: www.pianc.net

WASHINGTON/ALASKA

PIA of Kentucky, P.O. Box 4205, Frankfort, KY 40604-4205 PHONE: (502) 875-3888 | FAX: (502) 227-0839 e-mail: clemay@piaky.org | Web Site: www.piaky.org

NORTH DAKOTA

Kansas Association of Professional Insurance Agents 216 SW 7th Ave, Topeka, KS 66603 PHONE: (785) 232-4143 | FAX: (785) 232-0272 e-mail: pia@pia.kscoxmail.com | Web Site: www.kansaspia.org

LOUISIANA PIA of Louisiana Inc. 4021 W. E. Heck Ct., Building K, Baton Rouge, LA 70816 PHONE: (225) 766-7770 | (800) 349-3434 LA only | FAX: (225) 766-1601 e-mail: jody@piaoflouisiana.com | Web Site: www.piaoflouisiana.com

PIA of North Dakota 827 28th Street South, Suite C-2, Fargo, ND 58103 PHONE: (701) 223-5025 | (800) 733-1050 ND&MN only FAX: (701) 223-9456 | e-mail: info@piand.com Web Site: www.piand.com

OHIO

MAINE

PHONE: (703) 836-9340 | FAX: (703) 836-1279 email: membership@pianet.org | Web Site: www.pianet.org

Maine Insurance Agents Association 17 Carriage Lane, Hallowell, ME 04347 PHONE: (207) 623-1875 | FAX: (207) 626-0275 e-mail: lisa@maineagents.net | Web Site: www.meiaa.com

OKLAHOMA

22 | 2019 V11

PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.org

PIA Western Alliance 3205 Northeast 78th Street, #104, Vancouver, WA 98665 PHONE: (360) 571-7100 | FAX: (360) 571-7600 e-mail: piawest@piawest.com | Web Site: www.piawest.com

WEST VIRGINIA PHONE: (703) 836-9340 | FAX: (703) 836-1279 e-mail: membership@pianet.org | Web Site: www.pianet.com

WISCONSIN PIA of Wisconsin, Inc., 6401 Odana Road, Madison, WI 53719-1126 PHONE: (608) 274-8188 | (800) 261-7429 | FAX: (608) 274-8195 e-mail: phanson@piaw.org | Web Site: www.piaw.org

WYOMING Assoc. of Wyoming Ins. Agents, PO Box 1321, Cheyenne, WY 82003 PHONE: (307) 201-4801 | FAX: (775) 796-3122 e-mail: awia@vcn.com | Web Site: www.awia.com

www.pianet.com | PIA CONNECTION

AGENTS OF

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A PARTNERSHIP BUILT ON UNLEASHING DATA Independent agent Seth Zaremba has set his agency apart and up for continued growth by blending art and science. Using data sharing and artificial intelligence, he and his team create seamless customer journeys, from acquisition to renewal.

He values Progressive for its thought leadership, advanced technology, and consumer insights. Because, when it comes to strategy and innovation, “Progressive is playing chess while other carriers are playing checkers.�

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SETH ZAREMBA ZINC | BROADVIEW HEIGHTS, OH

Vehicle insurance is provided by Progressive Casualty Ins. Co. & affiliates. Home and renters policies are provided and serviced by affiliated and third-party insurers who are solely responsible for claims. Prices, coverages, and privacy policies vary among these insurers.

Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com.

©2019 Applied Underwriters, Inc. Rated A (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.