PIA Connection - E&O in the COVID Age

Agency Hiring Reimagined page 16

Post Pandemic Reimbursements From PIA page 18 2020 V4

PIA CONNECTION NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS

AVOIDING E&O IN THE COVID AGE pages 11-13

Sor ry We are Closed due to COVID-19

PIA MEMBER BENEFIT SPOTLIGHT:

Hartford Flood

page 21

AGENTS OF

invention

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.�

AgentsofProgressive.com

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.

2020 V4

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 Nicolette Bowman | nicolettebo@pianet.org CONTRIBUTING EDITOR Patricia A. Borowski, CPIW PRODUCTION EDITOR Laurel Prucha Moran | laurelpm@blueroomstudio.com April 2020 PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.

419 North Lee Street Alexandria, Virginia 22314 ©2020 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.

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

THE PIA NATIONAL AWARDS – HONORING page 14 THE BEST

YOUR AMS SYSTEM HAS BEEN COMPROMISED! PAGE 16 WHO IS RESPONSIBLE FOR WHAT?

CONTENTS 4

STATEMENT BY THE NATIONAL ASSOCIATION OF PROFESSIONAL INSURANCE AGENTS Repudiating all forms of racism, discrimination, and senseless acts of violence.

NEWS BRIEF Insurance Transactions Fall During Pandemic…NAIC Converts Summer Meeting to Online-Only…NOAA Predicts 19 Names Storms for 2020 Hurricane Season…As Hurricane Season Starts, Most Not Prepared for Floods…Nearly Half of Americans Delaying Care Due to Pandemic…

6-7

A NEW RECOVERY FUND TO HELP BUSINESSES DURING COVID-19 PIA CEO Mike Becker makes the case for the PIA-backed COVID-19 Recovery Fund.

8

PIA ADVOCACY EXTENDS BEYONE THE PANDEMIC PIA National VP of Government Relations with a Capitol Hill Update.

9

AVOIDING E&O IN THE COVID AGE 11-13 PIA National Counsel and Director of Regulatory Affairs Lauren G. Pachman, Esq., with an analysis of legal issues arising from the global pandemic caused by the novel coronavirus. Part 1 of 2.

THE PIA NATIONAL AWARDS – HONORING THE BEST 14-15 PIA National names the 2020 Agent, Young Agent and CSR of the Year.

PIA LAUNCHES AGENCY RECRUITING PROGRAM WITH IDEALTRAITS New partnership enables independent insurance agencies to hire top talent.

16-17

PIA MARKETING AND COMMUNICATIONS REIMBURSEMENT PROGRAM PIA pays members to market their services—AND MORE— in wake of pandemic.

18-19

DEPARTMENTS From the President . . . . . . . . . . . . . . . . . 5 From the CEO . . . . . . . . . . . . . . . . . . . . 5 PIA National Member Benefits . . . . . . . . . . .20 PIA Member Benefit Spotlight . . . . . . . . . . .21 PIA Marketplace . . . . . . . . . . . . . . . . . .21 PIA Affiliate Listings . . . . . . . . . . . . . . . .22

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: Laurel Prucha Moran, watercolor.

2020 V4 | 3

Statement The recent deaths of George Floyd and many other members of the black community have once again shone a spotlight on the tremendous injustices in our society.

We know it’s not enough to just have empathy for those impacted, but we must commit to the changes that we want to see.

PIA stands for equality and justice; we repudiate all forms of racism, discrimination, and senseless acts of violence.

PIA prides itself on respecting the dignity and moral wholeness of every person without condition or limitation. We believe in the abiding principles of fairness, respect, integrity, and honesty, in both our business and personal relationships. We believe it is our communal responsibility to do what we can to make our neighborhoods, towns, and cities better places for all of us to live and work.

National Association of Professional Insurance Agents

4 | 2020 V4

www.pianet.com | PIA CONNECTION

FROM THE PRESIDENT WE RECENTLY CONDUCTED AN ENTIRE PIA National Board meeting via Zoom. There we were, meeting not in person, but on a screen in a bunch of tiles. It’s not the same, but it worked.

As we have embraced change over these recent months of operating under the “new normal,” we have continued to accomplish much more to assist PIA members.

PIA National has responded to the coronavirus crisis by creating a series of programs specifically designed to provide assistance to PIA member agencies.

We have increased our advocacy. PIA issued a three-step legislative plan to see our members and the industry through the COVID-19 crisis. We have also kept pace with legislative priorities not related to the pandemic.

We have launched the Marketing and Communications Reimbursement Program for PIA members, with many of our carriers helping us put much-needed cash in the hands of our members when they avail themselves of the programs designed to assist their agencies.

PIA member agencies now receive a complimentary license to use ACORD Forms as part of their PIA membership.

At the same time, we have maintained our focus on non-covid issues.

I could go on, but you get the picture.

When families encounter a crisis, they pull together. That’s what the PIA Family has always done, and continues to do.

PIA National and PIA affiliates are working together to keep members aware and informed.

I especially want to compliment the excellent work being done by the PIA National staff to serve our members in a meaningful way during this challenging time.

PIA has one priority, as it always has: it’s members.

And that makes me proud to be a PIA member and I hope it makes you proud as well.

Dennis Kuhnke President

FROM THE CEO ONE OF THE PRIMARY RESPONSIBILITIES OF PIA is to provide assistance to PIA members.

This includes engaging in legislative and regulatory advocacy. We engage with lawmakers and regulators, encouraging them to take actions that help our members and oppose measures that would disadvantage them.

We offer our expert commentary and analysis on insurance issues to the industry. We maintain positive relationships with agents’ carrier partners, engaging in dialogue and cooperating to create at-the-desktop tools agents can use to help their agencies achieve greater success.

When the coronavirus crisis hit, PIA National quickly realized that more—much more—needed to be done, fast, to help PIA members. PIA created a series of programs specifically designed to provide new assistance to PIA member agencies.

PIA members, PIA affiliates, and our industry partners came together to create, among many initiatives, the PIA Marketing and Communications Reimbursement Program, which is a way for PIA members to recoup some of their marketing expenses when they use specific PIA marketing programs.

PIA CONNECTION | www.pianet.com

Progressive Insurance was the first of our carrier partners to contribute funding to our agent support initiatives, enabling reimbursements directly to agents who utilize PIA’s Marketing and Communications Reimbursement Program. Other carriers, including National General, State Auto, and West Bend Mutual, have made financial contributions to support PIA’s agent support initiatives.

We are proud to announce a significant expansion of our agent support programs by enabling PIA members to receive up to $500 in reimbursements for using our marketing and business building tools. See https://pianet.com/agentsupport for complete details.

PIA thanks participating carriers for their continued support of professional insurance agents.

Mike Becker Executive Vice President & CEO

2020 V4 | 5

!

NEWS BRIEF

INSURANCE TRANSACTIONS FALL DURING PANDEMIC Across commercial lines, new policy transaction volume

begin to re-open,” said Brian Wood, vice president of Ivans

was down 38.9 percent at the end of May compared with the

Data Products Group.

beginning of March, just before government-imposed lockdowns resulted in the shuttering of numerous businesses throughout the United States.

Policy change transaction volume was down 46.2 percent at the end of May compared with the beginning of March; policy cancellation transactions were also lower, falling 62.6 percent at the end of May 2020 from the beginning of March; and policy renewal transaction volume was down 21.4 percent at the end of May relative to the beginning of March.

The report analyzes more than 120 million data transactions and measures the month-to-month volume of new policies, policy changes, policy cancellations and policy renewals, the Tampa, Florida-based division of Applied Systems Inc. said. “The data shows signs of rebounding as economies

NAIC CONVERTS SUMMER MEETING TO VIRTUAL ONLY

Summer Meeting and 2020

Taking into consideration

Plans call for the Sum-

the health challenges

mer Meeting to be spread

An average Atlantic

related to large, in-person

over a three-week period,

hurricane season has

gatherings during the

beginning the week of

12 storms, but the U.S.

COVID-19 pandemic, the

July 27 and wrapping up

National Oceanic and

National Association of

the week of August 10.

Atmospheric Administra-

Insurance Commission-

For the week of July 27,

tion (NOAA) and other

ers (NAIC) is converting

NAIC planned for Work-

forecasters predict 19

its Summer Meeting to a

ing Groups, Subgroups,

named storms for 2020. At

virtual format. The meeting

and other meetings. For

least six of those storms

was scheduled for Min-

the week of August 3,

are expected to become

neapolis and is the second

NAIC intends to conduct

hurricanes. NOAA says

of three large gatherings

Task Force meetings, and

the NAIC hosts annually.

for the week of August

Registration fee credits

10, Standing Committees

received from the can-

and Executive Commit-

celled 2020 Spring Meeting

tee meetings are planned,

may be applied to the reg-

along with EX/Plenary and

Some forecasters suggest

United States say they are

istration fees for the 2020

special programs.

that this year’s hurricane

prepared for flood, but

6 | 2020 V4

Fall Meeting, the NAIC reminds members.

NOAA PREDICTS 19 NAMED STORMS FOR 2020 HURRICANE SEASON

season could echo the devastation of the 2005 season in which 28 storms formed and Hurricane Katrina destroyed New Orleans. Tropical Storm

that warm waters, the lack of a Pacific El Niño, and a greater African monsoon were among the reasons cited by the agency.

Arthur became the year’s first system when it formed May 16, prior to the traditional June 1 start of the Atlantic season.

AS HURRICANE SEASON STARTS, MOST NOT PREPARED FOR FLOODS As the Atlantic hurricane season begins, a new survey commissioned by National Flood Services reveals that 62 percent of homeowners across the

www.pianet.com | PIA CONNECTION

!

NEWS BRIEF

NEARLY HALF OF AMERICANS DELAYING CARE DUE TO PANDEMIC

In the past three months, have you or a family member in your household skipped or postponed any type of medical care because of the coronavirus outbreak?

A Kaiser Family Foundation poll released on May 27 found that 48 percent of Americans said they or a family member has skipped or

NO 52%

delayed medical care because of the pandemic, and 11 percent of them

YES 48%

Asked of the 48% who skipped or postponed medical care: Did your or your family member’s condition get worse as a result or skipping or postponing medical care?

YES, GOT WORSE

said the person’s condition worsened as a result of the delayed care.

According to the poll, nearly 7 in 10 DK/REF. 1%

of those who had skipped seeing a medical professional expect to get

11%

NO, DID NOT GET WORSE

36%

NOTE: For second question, percentage based on total.

care in the next three months.

SOURCE: KFF Health Tracking Poll (conducted May 13–16, 2020). kff.org

only 12 percent of them

that 80 percent of Texas

need flood insurance, and

flood insurance policy to

have flood insurance. The

homeowners, 60 percent

21 states do not require real

see if you have sufficient

poll also found that half

of Florida homeowners,

estate agents and home

coverage,” says Georgia

of respondents are less

and 99 percent of Puerto

sellers to tell buyers when

Insurance Commissioner

interested in buying insur-

Rico homeowners don’t

a home is in a federally

John F. King. “Remember,

ance because of COVID-19,

have flood insurance, even

designated flood zone that

which has put millions of

as these areas continue to

requires flood insurance.

Americans out of work

be inundated with tropical

and caused a historic eco-

storm–related flooding.

nomic recession.

Other surveys show

flood insurance policies take 30 days to go into effect. Waiting for your

“It is strongly recom-

home to be in a hurricane’s

mended you contact your

potential path is entirely

Many Americans errone-

agent to check on your

too late to inquire about

ously believe they do not

homeowners, business, or

flood insurance.”

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

PIA CONNECTION | www.pianet.com

2020 V4 | 7

A NEW RECOVERY FUND TO HELP BUSINESSES DURING THE COVID-19 CRISIS

By Mike Becker

THE NATIONAL ASSOCIAtion of Professional Insurance Agents (PIA National) has helped develop a proposal for a new recovery fund for businesses hit hard by the coronavirus pandemic.

The spread of the novel COVID-19 virus has wreaked havoc on ordinary life and devastated businesses.

Independent insurance agencies play a particularly important role in delivering insurance products to commercial businesses, large and small, throughout the U.S. During this difficult time, agents have again stepped up, as they always do during a crisis, to offer as much help as they can to their clients.

The business community requires assistance to survive the COVID-19 pandemic and thrive in its aftermath.

One typical source of such assistance is business interruption (BI) insurance, which allows businesses to file insurance claims for (typically physical) losses resulting from interruptions to their ordinary course of business. BI coverage is routinely available after a business is forced to close because of physical damage sustained in a hurricane or tornado, for example.

However, most BI provisions include exclusions for risks (like the risk of losses from a virus) associated with intangible business losses.

A FLAWED APPROACH One troubling suggestion has been proposed in several state legislatures as well as Congress: to require insurers to retroactively recognize financial losses triggered by the coronavirus outbreak as part of their customers’ BI coverage. Broadly speaking, these proposals would seek to expand BI insurance provisions to cover losses associated with the closures and shelter-in-place

8 | 2020 V4

orders arising from COVID-19, even though the policies that include such provisions were not written, sold, or purchased with that understanding by anyone involved. This proposal would essentially override common exclusions for losses due to viruses like COVID-19, and it would eliminate requirements that any loss must be a direct result of damage to or loss of physical property.

Insurance premiums are priced, and policies sold, based on the likelihood of the policyholder experiencing a covered loss, as calculated by actuaries and underwriters. Moreover, insurance policies are contracts entered into by businesspeople with extensive background knowledge and experience in the field of insurance.

Legislatures at the state or federal level should not have the power to rewrite private contracts to address problems that can be solved with far less intrusive action.

Such proposals would have unanticipated ramifications that would harm both businesses and policyholders in the long term. In the short term, it would create additional financial instability and turmoil, expanding an existing economic struggle for businesses and the American people.

In addition, retroactive BI, as this proposal is known, would leave many small businesses behind; only about one-third of American small businesses have business interruption coverage. As such, using retroactive BI to solve this problem will not help all businesses struggling because of COVID-19. PIA has instead helped create a real solution for all businesses struggling as a result of COVID-19 that doesn’t upend existing insurance contracts and practices.

THE RECOVERY FUND By contrast, the COVID-19 Recovery Fund (Recovery Fund) is open to all businesses and has been endorsed by over 100 organizations as the most effective way to aid businesses struggling from the consequences of the COVID-19 pandemic.

This extensive coalition has proposed a Recovery Fund that would be housed within the U.S. Department of the Treasury. The Recovery Fund is modeled after the September 11th Victim Compensation Fund, operated by the federal government, and run by a presidential appointee with the authority to enter into contracts with interested businesses to administer the Recovery Fund and facilitate the distribution of federal funds to affected businesses.

The Recovery Fund is meant to protect employees unable to work because of COVID-19, preserve jobs through payroll assistance for closed businesses that continue to retain their employees, and protect businesses from insolvency. By taking these targeted actions now, we ensure that businesses and their employees are positioned to quickly resume their robust participation in the American economy once this crisis passes.

PIA National is working with our coalition partners to ask that Congress include this proposal in the next round of coronavirus legislation. The Recovery Fund is a sensible solution to a serious problem.

Mike Becker is executive vice president and CEO of the National Association of Professional Insurance Agents (PIA National). This article also appeared in the National Underwriter.

www.pianet.com | PIA CONNECTION

CAPITOL HILL REPORT

By Jon Gentile Vice President, Government Relations PIA National

PIA ADVOCACY EXTENDS BEYOND THE PANDEMIC PIA NATIONAL HAS BEEN DEEPLY ENGAGED in legislative relief efforts to assist small businesses during the economic crisis caused by the coronavirus (COVID-19).

In April we laid out a 3 step legislative plan and have since advocated to have it implemented: improvements to the Paycheck Protection Program (PPP) in the CARES Act, which we view as the first step; advocating for the creation of a COVID-19 Recovery Fund to further assist businesses struggling due to the shutdowns that have been mandated throughout the country; and the third step of our approach is to create a system of protections for businesses against possible future pandemic-related losses.

In addition, PIA has helped block efforts to rewrite business interruption (BI) contracts retroactively due to the crisis, which would throw the insurance industry into economic crisis.

Even as we continue this advocacy, PIA National is also still actively engaged on our 2020 legislative agenda that was in place before the coronavirus crisis began: Flood Insurance: PIA supports the long-term reauthorization of the National Flood Insurance Program (NFIP) and has endorsed a legislative package that unanimously passed the House Financial Services Committee (H.R. 3167/H.R. 3111).

Unfortunately, since its passage in committee this legislation—which includes the 5-year reauthorization of the program and provisions PIA has championed such as a continuous coverage protection for policyholders who leave the NFIP to purchase a private flood policy –has not received a vote on the House floor. In addition, the Senate remains stagnant in moving forward with an NFIP reauthorization plan of their own.

The NFIP’s authorization will expire on September 30, 2020.

PIA National will work throughout the summer to ensure that the program does not lapse, and at the same time will continue to advocate for the passage of the House NFIP package out of the House and Senate without major changes.

Crop Insurance: On February 10, 2020, President Trump released his FY 2021 budget proposal, which includes cutting the federal crop insurance program by $25 billion over the next decade. The proposed cuts would compromise the affordability and availability of crop insurance for farmers, seriously undermining the strength of the farm safety net during a time of real struggle for farmers and rural America.

With the federal government’s debt at unprecedented levels there may be attempts to cut existing programs through the appropriations process. PIA National will remain vigilant PIA CONNECTION | www.pianet.com

against any effort to cut the crop program.

Tax Deduction: PIA supports the Main Street Tax Certainty Act (H.R. 216/S. 1149), which would make permanent the 20 percent deduction available to some passthrough (S) corporations that PIA strongly advocated for in the 2017 tax reform law. However, unlike the tax benefits provided to C corporations, the passthrough deduction is a temporary provision of the tax law. As a result, the benefit available to some PIA members whose agencies are organized as passthroughs will end on December 31, 2025, unless Congress acts.

With small businesses facing one of the most severe economic challenges in recent memory, PIA National will redouble its efforts to ensure that this tax deduction is made permanent.

Cannabis Safe Harbor: PIA strongly supports the Clarifying Law Around Insurance of Marijuana (CLAIM) Act (H.R. 4074/S. 2201), which prevents federal criminal prosecution of insurance agents and carriers for engaging in the business of insuring cannabis-related businesses in states where cannabis is legal in some form. PIA views its position as respectful of state insurance laws and protective of independent agents who are at risk of criminal penalty for following local laws.

During the pandemic, some states have temporarily relaxed rules over the use of cannabis. Such actions further imperil those engaged in the legitimate business of insurance from federal prosecution. PIA members will advocate to ensure that the provisions protecting insurance agents in the CLAIM Act are included in any legislation considered by the Senate and any final product that passes Congress.

Repeal the Federal Insurance Office (FIO): PIA supports the full repeal of the Federal Insurance Office (FIO) and has led efforts to develop the Federal Insurance Office Abolishment Act (H.R. 1862/S. 1586). The FIO was created by the Dodd-Frank Wall Street Reform and Consumer Protection Act and is an ongoing threat to the successful state insurance regulatory system.

PIA members will continue to build support in Congress for the repeal of the FIO. Just when Congress will take up these non-COVID insurance issues that are part of PIA’s legislative agenda remains to be seen. The coronavirus remains a clear and present danger to small businesses; our advocacy will need to be a balancing act for some time to come.

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

2020 V4 | 9

The Røugh Nøtes Company, Inc. Serving the insurance industry since 1878

PIA LEGAL ANALYSIS

By Lauren G. Pachman, Esq.

AVOIDING E&O IN THE COVID AGE This is the first article in a two-part series. This month, we’ll focus exclusively on the general (non-business-interruption-related) legal issues arising from the global pandemic caused by the novel coronavirus, or COVID-19. The next issue will address business interruption (BI) coverage, potential exclusions, and related legal issues.

AS SOON AS EPIDEMIOLOgists and other scientists identified the illness caused by COVID-19 as a global pandemic, it was inevitable that questions about its impact on the insurance industry would follow. Sure enough, since widespread shutdowns and unprecedented social distancing measures began in mid-March, we’ve seen auto insurance carriers refund premium dollars to consumers who are no longer commuting to work and health insurers provide COVID-19 diagnostic tests to covered patients at no cost. The scope of—and damage wrought by—the pandemic even motivated members of Congress to act with an urgency they rarely acknowledge as possible, let alone deploy.

Sorry We are Closed due to COVID-19 PIA CONNECTION | www.pianet.com

Amidst the goodwill engendered by these actions, policyholders, carriers, agents, and brokers have wondered what the short- and long-term effects of these changes will be. Even those outside the industry may now have a passing familiarity with the concept of business interruption (BI) coverage, for example. It is no surprise, then, that independent agents and brokers have been peppered with increasingly complex insurance questions and concerns as the pandemic has spread. Those questions and concerns have evolved as the ground beneath us has shifted, from preparation for widespread illness, to mitigation of the illness’s spread and treatment of those infected, to now, when parts of the country are reopening and returning to what many have referred to as our New Normal.

DOCUMENTATION One piece of near-universal wisdom is to use your agency management system to document everything, and encourage every employee in the agency to do the same. Particularly on COVID-19-related claims, document every communication to a client, an insurer, or an Errors & Omissions (commonly referred to as E&O) carrier in writing. Business owners, no matter what kind of business they’re operating, should keep careful records of actions they take and conversations they have when the goal of the action or conversation is to mitigate a risk.

Documentation can help to eliminate or offset an agent’s liability if an E&O or other claim is ultimately filed with the carrier. Some policies may also come with risk management services, and agents should remind policyholders who have access to those services to utilize them. The reality for the vast majority of policyholders is that they didn’t see a pandemic coming, couldn’t have anticipated the dramatic impact it would have on every economic sector, and probably weren’t adequately insured for the losses that have resulted. Indeed, it’s hard to imagine the policyholder who was. In other words, covered losses can result in successful claims that don’t even come close to making a policyholder whole.

Increasingly, the response to such an outcome can be an E&O claim against anyone involved in the insurance-purchasing process. As a business­owner, you may feel like no (paying) customer is a bad customer.

Be wary of customers with a habit of speaking poorly of or suing former agents.

AVOIDING E&O RISKS Independent insurance agents, many of whom are small business owners themselves, are fielding questions from both existing and potential clients asking everything from what each insurance product they sell covers to what businessowners can expect to CONTINUED ON PAGE 12

2020 V4 | 11

AVOIDING E&O IN THE COVID AGE CONTINUED FROM PAGE 1

ONE PIECE OF NEAR-UNIVERSAL WISDOM IS TO USE YOUR AGENCY MANAGEMENT SYSTEM TO DOCUMENT EVERYTHING, AND ENCOURAGE EVERY EMPLOYEE IN THE AGENCY TO DO THE SAME. recover from the policy they purchased and have been paying premiums on since well before they’d ever heard of COVID-19. Depending on who’s asking the questions, of course, the answers can vary.

And, perhaps most importantly, the answers can put agents themselves at risk for a claim on their E&O policies.

E&O policies cover alleged acts, errors, misstatements, misleading statements, omissions, neglect, or breach of duty by an agent or broker while providing insurance services for pay. The COVID-19 pandemic is expected to increase claims against agents and brokers in two specific categories: failing to provide enough business interruption or business income coverage, or failing to provide timely notice of a claim arising from a loss for which an agent or broker incorrectly assumed there would be no coverage.

Three recent lawsuits are examples of the ever-expanding scope of potential agent liability. In all three cases, the plaintiffs sought to purchase BI coverage after the COVID-19 pandemic forced their businesses to close, and, in all three cases, the plaintiff sued the insurer and agent through whom they’d bought the insurance. In two of the cases, plaintiffs are alleging that the agents sold the policies and collected the premiums without ever intending for the insurer to provide coverage. In the first, the plaintiff alleges that the agent was somehow involved in the insurer’s decision to deny coverage. In the second, the plaintiff is asserting fraud, among many other causes of action. And in 12 | 2020 V4

the third case, the plaintiff is claiming that he asked the agent for the “best” catastrophe coverage available, and the agent failed to properly advise him that the purchased policy’s virus exclusion would likely preclude the plaintiff from recovering on losses associated with COVID-19. All three cases are still pending.

An agent may be able to avoid a claim of failure to provide timely notice of a claim by simply advising a client to file a claim to preserve the client’s right to do so, even in instances where the policy language is ambiguous on the coverage issue.

This way, the client doesn’t lose the opportunity to file a claim, and the agent avoids potential E&O liability by incorrectly interpreting the policy.

If the policy is ultimately found not to cover the loss, the client has at least received a decision on the merits of the filed claim, rather than being denied because the client didn’t file a timely claims report.

HOW TO PROCEED? Agents should also be wary of filing a claim themselves on behalf of a client without the client’s input. If the client’s claim is denied or excluded, the client may then attempt to file a different account of the same loss. If the client’s account receives different treatment than the agent’s version was, the client could file an E&O claim against the agent on the basis that the agent inaccurately reported the loss. That could lead to liability for the agent, either via the client themselves or via the insurer, who could seek indemnification for the

claim payout. One way to try to avoid this is to review claim reporting forms with clients before submitting them to an insurer.

Clients may also ask agents to wait and see before filing a claim, figuring that more information will become available to help determine that coverage is available. Such an approach can sound reasonable under the circumstances, but it can cause problems.

The time for filing a notice of claim can expire while the agent and client “wait and see,” which could result in the insurer’s denial of coverage and an E&O claim against an agent.

The best way to respond to a policy­holder notification of a claim is to promptly file a notice of claim with the insurer, and let the insurer determine coverage. Particularly in the context of COVID-19, where much of what is being experienced is unprecedented, and many policy provisions are thus far untested, let the insurer determine whether COVID19-related claims are covered.

Well-meaning agents may need to fight the urge to become advocates for their clients by writing letters to insurers pleading for coverage, particularly in the era of COVID-19, when many of the losses—economic and otherwise— have human-interest elements and can readily evoke sympathy. These tactics are often unsuccessful, and the current economic climate makes it less likely than ever for such a letter to work.

Plus, if they don’t work, a client can use such a letter as evidence in an E&O claim against the agent.

Policies may have exclusions regarding failures to collect or safeguard money. As our individual and collective economic stresses have increased, agents may become more likely to engage in a practice like this,

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Watercolor by Laurel Prucha Moran

which could fall within an exclusion.

Agencies or brokerages may have undergone restructuring, acquisition, or other changes in control because of rapidly changing economic fortunes.

Be mindful of the fact that E&O policy coverage may be limited because of such changes.

Finally, some E&O policies include coverage for network security breaches, and, with so many employees working from home, agents may be more susceptible than ever to E&O claims for security breaches.

MANAGE YOUR THREAT OF LIABILITY If you run an agency, here are some tips to help you manage the threat of liability facing your agent salesforce during this time. If an agent becomes the subject of an E&O claim: The agent should not talk to anyone associated with the claim (either verbally or in writing) without first consulting with the E&O carrier. The carrier can help the agent understand what their liability may be and how to provide information without

inadvertently increasing their liability.

The agent should not admit wrongdoing or apologize for the service that prompted the claim; even an apology could be construed as an admission of guilt. The agent can advise the client that they will take the information and report it to their E&O carrier for review.

Report it to your E&O carrier, who can provide you with an attorney to help you fight an E&O claim.

Report it to any other carrier or reinsurance layer that could possibly provide coverage. When in doubt, notify every insurer that could possibly be involved.

The agent shouldn’t make a payment to a customer on a claim related to the E&O allegation without speaking to the E&O carrier first. Even a payment can be construed as an admission of guilt.

Relatedly, the agent shouldn’t try to “fix” the issue. Providing the unhappy client with additional services in an effort to “fix” the client’s dissatisfaction can make it worse. Just submit the claim and speak to the E&O claim specialist before taking any other action.

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

REFERENCES Faegre Drinker. “When Insurers Deny Claims, Brokers Are Next in Line for Allegations of Wrongdoing.” 19 May 2020. https://www.insurancejournal.com/news/national/2020/05/19/568650.htm?print. 8 June 2020.

Goldberg Segalla. “Insurance Agent and Broker Errors & Omissions (E&O).” May 2020. https://pianet.com/docs/2020/ COVID19_ErrorsandOmissionsFactSheets_GoldbergSegalla.pdf. 8 June 2020.

—. “Insurance Agent and Broker Loss Control.” May 2020. https://images.magnetmail.net/images/clients/NAPIA/attach/ COVID19_AgentsandBrokersTipSheet_GoldbergSegalla.pdf. 8 June 2020.

O’Connor, Amy. “COVID-19 Hits Already-Troubled Nursing Home Insurance Market; Brokers Try to Help.” Insurance Journal 5 May 2020. <https://www.insurancejournal.com/news/national/2020/05/10/567421.htm>.

PIA CONNECTION | www.pianet.com

2020 V4 | 13

THE PIA NATIONAL AWARDS – PIA NATIONAL NAMES ANDREW HARRIS, JR. 2020 PROFESSIONAL AGENT OF THE YEAR Andrew Harris, Jr., President of Liberty Insurance of Millstone Township, New Jersey, has been named the 2020 Professional Agent of the Year by the National Association of Professional Insurance Agents (PIA).

“This award is PIA’s highest honor,” said PIA National President Dennis Kuhnke. “Andrew Harris, Jr. has distinguished himself as a leader in the agency business, and in PIA. Andrew has built and maintained strong personal relationships with top level management of the carriers he represents and is committed to the Independent Agency System.”

Active in PIA of New Jersey, Harris was elected secretary of the state association for 2019-20. Harris served as Legislative/ Regulatory chairperson of PIANJ’s Government Affairs Committee and is a member of the association’s Executive/ Budget & Finance and PIANJ Political Action Governing Committees.

Additionally, Harris is a director of PIANJ’s New Jersey Young Insurance Professionals—an organization dedicated to the professional and personal growth of newcomers to the insurance industry—and was previously co-chair of the Special Olympics Golf Committee.

“Andrew has been instrumental in getting PIA’s message out in support of independent insurance agents, to legislators and regulators—on both a statewide and national level,” said PIA of New Jersey President Bruce Blum. “He is truly a working agent who is professional, courteous and remarkably competent. He is very knowledgeable on all aspects of the insurance industry and we are very lucky to have him as part of our organization.”

In 2019, Harris was named Professional Agent of the Year from PIA of New Jersey. In 2018, he was named PIANJ’s Director of the Year. The award recognizes the hard work and dedication of a member of the association’s board of directors who has contributed remarkable time and talent to help support the association and its many programs.

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RYAN KELLY NAMED 2020 YOUNG INSURANCE PROFESSIONAL OF THE YEAR Ryan Kelly, CLCS, a producer with Merit Insurance, A Gallagher Company, of Shelton, Connecticut has been named the 2020 PIA National Young Insurance Professional (YIP) of the Year.

The PIA National Young Insurance Professional of the Year award recognizes outstanding achievement by a young insurance professional. It was sponsored for the 15th year in a row

by The Rough Notes Company.

Kelly is Vice President of the Connecticut Young Insurance Professionals (CTYIP) and was named the 2019 CTYIP Agent of the Year and the 2018 CTYIP Director of the Year.

“As a past recipient of the PIA National Agent of the Year award, I understand the commitment and dedication one must give to his clients, insurance carriers, fellow agents and Association to be considered for such a distinguished award,” said PIA National Past President Tim Russell. “Ryan shows that commitment and dedication on a daily basis.”

Kelly is a personal and commercial lines producer with a focus on life science and tech products, such as medical devices and pharmaceutical manufacturers. He is known for his expertise in the life science and tech products sectors and as a knowledgeable, trusted advisor to independent brokers and agents—delivering innovated solutions to meet their clients’ needs.

“Joining the association has helped me develop as an insurance professional,” said Kelly. “As a producer, it is a great opportunity to build relationships with your underwriters, surplus-lines brokers and vendors who you rely on to write business. In addition to that, I have found it beneficial to network with other insurance producers.”

“It is rare today to find an individual who is truly dedicated to their work, their clients, their family and their community,” said Christopher J. Pia, Chairman of the Stratford, Connecticut Town Council and Chamber of Commerce. “Ryan Kelly is that individual. Ryan is a consummate professional. He holds himself and his business to the highest ethical and moral standards and his clients and community are the ones who truly benefit.”

www.pianet.com | PIA CONNECTION

– HONORING THE BEST

PIA CONNECTION | www.pianet.com

L E PAR ER

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Denise Shelton of the Hoffman Insurance Group of Granger, Indiana has been named the 2020 PIA National Customer Service Representative (CSR) of the Year.

The PIA National CSR of the Year award is given annually to an outstanding customer service representative who works for a PIA member insurance agency.

Nominations for this award are made by PIA members. The award recognizes a CSR who has improved operations of the agency, served their clients in a unique or extraordinary way and engaged in community involvement and activities to advance the betterment of the insurance industry.

“Denise wears many hats in the agency, from claims specialist, to marketing consultant, to sales agent. She does it all well,” said PIA National President Dennis Kuhnke.

“She has a drive to help the Hoffman Insurance Group to do things the right way and for clients to be well taken care of.”

P I NN

PIA NATIONAL NAMES DENISE SHELTON 2020 CUSTOMER SERVICE REPRESENTATIVE OF THE YEAR

2020 PIA NATIONAL PINNACLE PARTNERS Encompass Insurance Encova Insurance Erie Insurance State Auto Insurance Companies

Download the app for free by searching “NIPR Mobile” in the Apple App Store or Google Play.

2020 V4 | 15

PIA LAUNCHES AGENCY RECRUITING PROGRAM WITH IDEALTRAITS New Partnership Enables Independent Insurance Agencies to Hire Top Talent PIA HAS FORMED A PARTNERSHIP WITH IdealTraits of Lake Orion, Michigan. Through PIA’s partnership with IdealTraits, PIA members and agents appointed by carriers belonging to The PIA Partnership can access IdealTraits’ hiring platform to hire top performing sales and service staff for their agencies.

Using the IdealTraits online platform, agencies ready to hire can post jobs on numerous websites, such as ZipRecruiter, Google for Jobs, Indeed, Glassdoor and 100 others; track applicants in one place; pre-screen candidates to predict job performance and ultimately identify the right candidate and make an offer. Compared to a traditional hiring process, agency management will find IdealTraits to be more efficient and effective.

“Hiring good people is always a challenge,” said PIA National President Dennis Kuhnke, CIC, CPIA, of Milwaukee, Wisconsin. “But hiring good people into an insurance agency can be even more difficult because of the competition from other parts of our industry, such as insurance companies who admittedly have a lot to offer job seekers. Old stereotypes about insurance agents and a lack of understanding about the many great aspects of working in an insurance agency only compound the problem. Thankfully, tools like those offered by IdealTraits as well as PIA’s Winning@Talent program help to

level the playing field.”

Winning@Talent is a comprehensive hiring program created by PIA’s carrier council, The PIA Partnership, and launched earlier this year. That program looks at agency recruitment beyond the lens of the hiring process. It starts by helping agency owners position their agency as an employer of choice in their community, continues through the hiring process, and ultimately helps agencies retain their new talent. IdealTraits has been part of Winning@Talent since the program launched in March. Both PIA members and agents appointed by PIA Partnership carriers can access IdealTraits’ PIA program through the Winning@Talent website.

“IdealTraits is excited to have the opportunity to work with PIA members and those agents connected with The PIA Partnership,” said Kevin Mlynarek, an IdealTraits partner and also CEO. “We make hiring personnel for insurance agencies much easier and, most important, we dramatically increase the odds that you’ll hire a home run. No one can afford a bad hire; using our platform you shouldn’t have to.”

IdealTraits is available to PIA members at https://pianet.com/idealtraits or through the Winning@Talent website. Agents appointed by PIA Partnership carriers should visit the Winning@Talent website at www.winningattalent.com to access IdealTraits.

READY TO HIRE BETTER WITH IDEALTRAITS? Step 1

Step 2

Step 3

Step 4

POST JOBS:

APPLICANT TRACKING:

SEND PRE-HIRE ASSESSMENTS:

IDENTIFY AND HIRE:

View resumes, comment, rate, organize, and move your candidates through hiring stages.

Pre-screen candidates to predict job performance.

Use assessment results to identify strengths and weaknesses and hire the best candidate.

Build the best job postings with versatile templates for ZipRecruiter, Google for Jobs, Indeed, Glassdoor, and 100+ job boards.

PIA/IdealTraits: https://pianet.com/idealtraits Winning@Talent: www.winningattalent.com

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www.pianet.com | PIA CONNECTION

How Will You Find Top Talent for Your Agency?

Post jobs for free on numerous online platforms

IdealTraits can help with your hiring needs.

If you are having trouble finding top talent, or you would like to improve your hiring strategy, IdealTraits may be the best solution for you.

IdealTraits is the go-to hiring tool for insurance agencies across America. Their new PIA program ensures PIA members can use this comprehensive tool to hire top performers for their agencies.

Track applicants in one place

Pre-screen candidates to predict job performance

Want to learn more? Visit idealtraits.com/pia.

in partnership with:

WINNING@TALENT

Identify the right candidate and hire

WinningAtTalent.com

Your guide to hiring, motivating and retaining employees.

Our 3-part toolkit helps agencies understand how best to recruit great talent and enhance the employee experience so they stay. We trust you’ll find this content very useful and another example of the value of our Partnership.

Winning@Talent is brought to you by The PIA Partnership – PIA’s national carrier council. Partnership companies include:

PIA CONNECTION | www.pianet.com

2020 V4 | 17

PIA MARKETING AND COMMUNICATIONS REIMBURSEMENT PROGRAM PIA pays members to market their services—AND MORE— in wake of pandemic

INDEPENDENT INSURANCE AGENCIES AND those employed by them may be faring better during the COVID-19 global pandemic than many other businesses, but that isn’t universal, and it doesn’t mean there hasn’t been pain.

For some PIA members, business that was in the pipeline prepandemic has cycled through, and those agents may be looking for new ways to meet prospects. Other PIA members may be poised for growth, with plans to hire new staff to help make it possible. Still others may be looking to shore up their agency perpetuation plan, whether because of fears of COVID-19 or because they understand how perpetuation planning strengthens an agency while providing peace of mind.

PIA can help members in each of the situations described above and, through the generous contributions of our carrier partners, can help to offset some of the costs to PIA members for using our programs.

PIA MARKETING REIMBURSEMENT PROGRAM EXPANDS Since early May PIA has been promoting the PIA Marketing and Communications Reimbursement Program as a way for PIA members to recoup some of their marketing expenses when they use specific PIA marketing programs. Now that program is expanding to include the PIA Partnership’s agency hiring programs and perpetuation planning programs The original reimbursement program provides a $250 reimbursement for purchases made through the PIA DMV: PIA’s Direct Marketing Vault or PIA Design & Print Services.

PIA’s new reimbursement program provides up to a $250 reimbursement for purchases made through the PIA Partnership’s Agency Journey Mapping (perpetuation planning) and Winning@Talent (agency hiring) programs.

Together, PIA members can receive a total reimbursement of up to $500 between PIA’s two reimbursement programs. To learn more, please visit https://pianet.com/agentsupport.

MARKETING REIMBURSEMENT PROGRAM Many PIA members have already used PIA’s marketing programs described below to market their services. Whether PIA members’ need a turn-key solution requiring little time to get up and running, or a custom piece created specifically for their agency, PIA has a program—and a $250 reimbursement—for them.

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PIA DMV: PIA’S DIRECT MARKETING VAULT The PIA DMV enables PIA members to launch hybrid print/ digital marketing campaigns to households (and businesses if they choose) grouped together in USPS postal routes. PIA has created four templates that PIA members can personalize to literally surround prospects with large format postcards and digital ads delivered right to their electronic devices using geofencing technology.

Prefer not to use a PIA design template? That’s fine. PIA’s program partner, One Brand, can create custom marketing pieces based on your concepts or you can provide your own artwork. They will convert postcards to digital ads at no cost for those PIA members who want to combine their direct mail campaign with a direct digital campaign as well. You’ll find samples of recent PIA member marketing pieces displayed within this article.

Great artwork and messaging are only half the battle.

Marketers know that the prospecting list may be the most important element in a direct marketing campaign. That’s where the PIA DMV really shines. PIA members can select from a number of demographic factors to determine which postal routes in their intended mailing area best match the criteria of those they want as clients. Have your own mailing list or want to have One Brand create a totally custom mailing list for you? We can do that, too.

PIA DESIGN & PRINT SERVICES PIA members who need custom pieces that don’t fit into the PIA DMV program will appreciate PIA’s Design & Print Services. Whether they need social media graphics, a flyer, a brochure, an advertisement, or even a newsletter, trade show display or promotional items, PIA’s team of designers can help PIA members draft copy and design stunning marketing pieces. Printing and mail services are also available, using PIA’s in-house print shop to save agents money.

PARTNERSHIP REIMBURSEMENT PROGRAM The PIA Partnership is PIA’s national carrier council. It was created to help strengthen PIA member agencies so that they can thrive and continue to be good carrier partners. They offer PIA members approximately 10 different programs based upon areas of agent need. While most PIA Partnership programs are available at no cost, a few do have fee-based services associated with them and will be eligible for full or partial refunds up to $250. www.pianet.com | PIA CONNECTION

“[PIA’s partner] went above and beyond helping me to improve the ad flow for geofencing which is something I’ve never done before.”

Diane Tait A & B Insurance Agency Inc, Jacksonville, FL

AGENCY JOURNEY MAPPING Whether agents are planning for the eventual sale of their agency, planning for the unexpected, or simply want to value their agency, PIA’s Agency Journey Mapping program will put them on the right path. We help independent agents understand the challenges and best practices of agency ownership transfer, so they can create a perpetuation/succession plan for their agency. And they receive access to dozens of tools to help them do it. For agents not ready to perpetuate, Agency Journey Mapping is for them, too. Going through this process will strengthen their agency so that they are a better partner to their insureds, their carriers, their employees and their community.

Agency Journey Mapping is available on-demand. The full cost of the program, $99 plus sales tax, is reimbursable through the PIA Partnership portion of the PIA Reimbursement Program.

WINNING@TALENT Winning@Talent is the independent insurance agent’s guide to hiring, motivating and retaining the best agency employees. This 3-part toolkit features intuitive tools that take agency employers through a simple journey that starts with determining if their agency is well positioned to attract quality candidates and ends with a happy, productive employee. Part 1, Are You Ready to Recruit?, focuses on helping agencies assess their employer brand so they can see their agency the way prospective employees see their agency. Part 2, Sourcing, Recruiting and Hiring,

focuses on sourcing potential hiring prospects, recruiting them into your agency and ultimately hiring them. Part 3, Retaining Your Best Employees, focuses on how agencies can keep their best employees from walking out the door.

What’s reimbursable? Although Winning@Talent is a free resource for PIA members, Part 2 of the program suggests improving the hiring process by using one of two PIA programs: (1) the IdealTraits recruiting platform (2) behavioral assessments using the Omnia Profile. PIA members using these services can be reimbursed up to $250 for their purchase.

THANK YOU These programs are made available to PIA members through generous donations from the following PIA Partnership carriers: National General Insurance, Progressive Insurance, State Auto Insurance Companies and West Bend Mutual Insurance Company. PIA thanks these companies for their support of professional insurance agents.

LEARN MORE To get started with any of the programs described above, and to learn how to submit a reimbursement request, PIA members should visit the PIA Marketing and Communications Reimbursement Program at https://pianet.com/agentsupport. Questions for PIA should be directed to agentsupport@pianet.org.

Available funds are limited, and will be reimbursed on a first-come, first-served basis, so please act soon.

Current PIA National membership required to participate in this reimbursement program. Reimbursements will be made on a first come, first served basis until available funds are depleted.

Please check https://pianet.com/agentsupport for an update on funds availability.

Samples of PIA DMV Marketing Campaigns: PIA member postcards designed by PIA’s vendor partner, One Brand. $225 covers postcard and digital ad design.

PIA member postcard created using a PIA DMV template. $0 design cost.

Digital ads based upon postcard design. $0 design cost.

PIA CONNECTION | www.pianet.com

2020 V4 | 19

YOUR MEMBER BENEFITS FROM PIA NATIONAL BUSINESS-BUILDING TOOLS ✦ MARKETING REIMBURSEMENT PROGRAM. PIA is here to help with specific marketing tools PIA members Alexi’s can use and a $250 reimbursement to pick help offset the cost! www.pianet.com/agentsupport ✦ PIA DMV: PIA’S DIRECT MARKETING VAULT. Targeted direct mail and digital advertising campaigns. Turn-key yet highly customizable. www.piadmv.com ✦ PIA BRANDING PROGRAM. Print ads, radio commercials, consumer-oriented flyers and social media support for PIA members. www.piabrandingprogram.com ✦ PIA MARKET ACCESS. Access to over 50 national and specialty carriers, realtime online rating, ownership of your book and no exit fees for a low monthly rate. www.piamarketaccess.com ✦ HARTFORD FLOOD INSURANCE. PIA’s endorsed flood provider since 2004. Dedicated local sales directors and book transfer/rollover team plus great commissions for PIA members.

Call (860) 547-5006. ✦ PIA CYBER INSURANCE: Robust coverage tailored to small and mid-sized businesses. Coverage with special PIA-only enhancements is available for PIA members to sell. ✦ AVYST EFORMS WIZARD. Quickly and easily prepare ACORD, agencyspecific, and carrier-unique applications and forms, entering data only once in an organized interview format. Get to market faster! ✦ FLOODBROKER.COM. Sell more flood insurance with a flood quoting Web portal. A PIA member exclusive! ✦ PIA AGENCY MARKETING GUIDE. Hands-on marketing tips from industry experts. Published annually. ✦ ROUGH NOTES - ADVANTAGE PLUS. Identifies risk exposures. Provides detailed coverage analysis. PIA member price $600 annually (reg. $700). Call 800-428-4384. Use your PIA member ID# above name on mailing label. ✦ AGENCY REVENUE TOOLS. Boost personal lines sales by engaging in employee worksite marketing using your appointed markets at regular commission rates.

✦ AGENCY WEBSITES. Cutting-edge websites tailored specifically to insurance agents.

✦ PRACTICAL GUIDE TO SUCCESSFUL PLANNING. Plan for success within your own agency.

✦ PIA LOGO. Put the PIA logo on your business card, website, stationery and signage. Order items with the PIA logo in our online store.

AGENCY MANAGEMENT TOOLS

INSURANCE PRODUCTS ✦ E&O INSURANCE. With access to admitted and non-admitted markets with differing appetites chances are we can find the coverage and price that’s right for you. www.pianet.com/eando ✦ PIA AGENTS UMBRELLA PROGRAM. Excess insurance protection includes E&O and business liability coverage, with available endorsements for EPL and personal coverage. ✦ CYBER LIABILITY INSURANCE. Coverage and pricing tailored to small and mid-sized businesses.

✦ ACORD FORMS END USER LICENSES. Available for free to qualifying PIA members who access ACORD forms through agency management systems and other authorized distributors. Plus PIA member discounts on the ACORD Advantage Plus Program. ✦ AGENCY AGREEMENT REVIEW SERVICE. Free to members and carriers, PIA recommends changes to carriers and highlights concerns for members. ✦ AGENCY PREPAREDNESS AND RECOVERY PLAN. The PIA guide to creating an agency-specific business contingency plan. ✦ EMPLOYEE PROFILING. Hire the right people with skills and personality testing from OMNIA.

✦ INDIVIDUAL AND GROUP INSURANCE PRODUCTS. Basic, voluntary and ✦ dependent term life; long/short term disability; AD&D; business overhead Nicolette’s expense; and hospital income pick protection. www.piatrust.com ✦

TOOLS FROM THE PIA PARTNERSHIP, PIA’S COMPANY COUNCIL ✦ WINNING@TALENT. Your guide to hiring, motivating and retaining the best agency employees. ✦ AGENCY JOURNEY MAPPING. Value your agency, maximize your retirement income, and plan for unexpected death/ disability while creating a perpetuation plan for your agency. ✦ CYBER 101. Cyber education for you and your clients. ✦ SMALL BUSINESS INSURANCE & THE INTERNET—THE VOICE OF THE CL CUSTOMER. Stay ahead of online competition in commercial lines. ✦ CLOSING THE GAP—GROWTH & PROFIT. Plan for growth and profitability.

Includes tools for improving retention, sales and account-rounding. ✦ AGENCY TOUCH POINTS—THE VOICE OF THE CUSTOMER. Give personal lines customers what they really want. ✦ REACHING GEN Y. Convert Gen Y age group insurance consumers into loyal agency customers.

HIRE WITH IDEALTRAITS. The comprehensive, go-to hiring tool for agencies looking to hire top performers. www.idealtraits.com/pia Discounts on producer licensing, car rentals, shipping with UPS and calendars from Mines Press.

✦ Free subscriptions to industry publications.

LEGISLATIVE & REGULATORY OUTREACH ✦ PIA ADVOCACY BLOG. Timely updates about what’s happening on Capitol Hill and on state and federal regulatory issues. www.PIAAdvocacy.com. ✦ GRASSROOTS ALERTS. Send pre-written, fully-editable letters directly to your elected officials. www.piagrassroots.com ✦ PIA ADVOCACY DAY. Every spring, PIA members visit Capitol Hill to talk with their elected representatives about issues that are important to independent insurance agents. www.PIAAdvocacyDay.com ✦ PIA POLITICAL ACTION COMMITTEE (PIAPAC). PIAPAC contributes to the campaigns of candidates to federal office who share our pro-insurance, probusiness perspective and who support our issues. www.piapac.com

Learn more about these PIA National member benefits at www.pianet.com.

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www.pianet.com | PIA CONNECTION

PIA MEMBER BENEFIT SPOTLIGHT

FLOOD INSURANCE MADE EASY WITH THE HARTFORD SINCE 2004, THE HARTFORD HAS BEEN PIA’S nationally endorsed Flood provider and a leading carrier for FEMA’s National Flood Insurance Program. The PIA/Hartford Flood program offers PIA members preferred commission levels for new, renewal, and transfer business regardless of volume. PIA members will have access to advanced technology that makes writing flood easier than ever before.

Most recently, The Hartford moved to the Torrent Flood platform which provides innovative tools to their flood agents along with an enhanced transfer program sure to increase revenue to participating agents. The Torrent Flood platform will simplify the process for building quotes, managing renewals, and processing endorsements.

Through the Hartford Flood Program, members will become flood experts by obtaining a better understanding of flood insurance, knowledge of any updates made to the National Flood Insurance Program, and how to sell flood insurance to new and existing customers. Additionally,

members can utilize state of the art analytics and tools to help cross sell to existing customers.

The Hartford Flood Program benefits include: • Dedicated transfer specialist along with hands-on service from your local sales director.

• Easy online quoting.

• Fast flood zone determinations.

• Online claims reporting.

• On-demand webinars and training.

• Special PIA member preferred commission levels for new, renewal, and transfer business regardless of volume.

To learn more about the PIA/ Hartford Flood program, visit: www.pianet.com/hartfordfloodinsurance The Hartford Flood program is available to PIA members and their policyholders in all 50 states, the District of Columbia and Puerto Rico.

UPCOMING PIA WEBINARS Date

Topic

Time

7/30

PIA Webinar: Learn More About PIA/Hartford Flood Program

2:00 PM ET

9/16

How to Quickly Identify and Avoid Hiring Sales Phonies

2:00 PM ET

10/14

Interoffice Dynamics: Sales vs. Service

2:00 PM ET

To register, visit: Pianet.com/calendar Questions? Contact ProductsandServices@pianet.org

Partnership | Solutions | Success Conquering E&S Risks One Risk At A Time

800.257.5590 quotes@primeis.com

www.auw.com

Specialty, Auto, Professional, P&C, E&S Lines Insurance

Photo by Josh King Photography

PIA CONNECTION MARKETPLACE

www.primeis.com *For latest ratings, please access www.ambest.com.

PIA DMV ult

Va PIA’s Direct Marketing

Customizable postcards and digital advertising for PIA members.

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PIA Connection Marketplace rates: $95/issue for 10 issues; $120/issue for 5 issues. To learn more and get a contract, to inquire about |display advertising, PIAorCONNECTION www.pianet.com please contact Alexi Papandon at alexipa@pianet.org or 703-518-1353.

2020 V4 | 21

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 419 N. Lee Street, Alexandria, VA 22314 PHONE: 800-742-6900 | FAX: 703-836-1279 e-mail: membership@pianet.org | Web Site: www.piapuertorico.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: staci@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

RHODE ISLAND

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

SOUTH CAROLINA

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

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

DELAWARE

MISSOURI

SOUTH DAKOTA

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

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

MONTANA

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

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

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

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

NEBRASKA/IOWA

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 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

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 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

TEXAS 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

UTAH 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: mattchild@uaiia.org | Web Site: www.uaiia.org

NEW JERSEY

VERMONT

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

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

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

NORTH CAROLINA PIANC, 1059 Technology Park Dr, Glen Allen, VA 23059 PHONE: (804) 264-2582 e-mail: kevin@pianc.net | Web Site: www.pianc.net

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

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

TENNESSEE

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

KENTUCKY

LOUISIANA

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

VIRGINIA/DC PIA Assn of Virginia & DC 1059 Technology Park Dr, Glen Allen, VA 23059 PHONE: (804) 264-2582 | FAX: (804) 266-1075 e-mail: kevin@piavadc.com | Web Site: www.piavadc.com

WASHINGTON/ALASKA 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

OHIO

WISCONSIN

MAINE

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

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

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

OKLAHOMA

22 | 2020 V4

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

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

National Association of Professional Insurance Agents 89th Annual Meeting of the Members of the Association Saturday, September 26, 2020 8:00 am PT Kona Kai Resort Hotel San Diego, CA AGENDA President Dennis D. Kuhnke, Presiding 1. Call to Order

D. Kuhnke

2. Antitrust Statement

G. Hemphill

As a prologue to our meeting, please keep in mind that there are numerous state and federal laws that absolutely prohibit the exchange of information among competitors regarding price, refusals to deal, or agreements to proceed in certain anti-competitive respects, and that no such exchange of this information is either sanctioned by PIA, nor will be tolerated, during our meeting. This is a very serious consideration and no deviation from this policy will be allowed. Your cooperation in this matter will be appreciated.

We ask you not to refer to any agency or company specific names in the examples you may give as illustrations during your discussions. There will be no specific discussion concerning price, profits, commission or any other cost components and elements. Staff liaisons have been instructed to keep you within acceptable bounds.

3. Roll Call & Quorum Report

G. Hemphill

4. Approval of September 21, 2019 Minutes, Orlando, FL

D. Kuhnke

5. President’s Report – State of the Association D. Kuhnke 6. Treasurer’s Report

T. Curti

7. Matters Before the Floor

D. Kuhnke

8. Ratification of the Acts of the 2019-2020 Administration

D. Kuhnke

“On this day, Saturday, September 26, 2020, the voting members of PIA here and present and constituting a lawful quorum, do hereby accept and ratify the PIA National Board adopted and directed policies and actions, as well as the authorized and lawful actions of its staff, member officers, board and committee members performed within the scope of their official capacities in carrying out such Board adopted and directed policies and actions all in a manner consistent with the lawful purposes of PIA National and for the benefit of its membership.”

9. Adjournment

PIA CONNECTION | www.pianet.com

D. Kuhnke

2020 V4 | 23

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