Main Street Industry News - April 2013

PIA ON Terrorism Insurance »10

INSIDE The National Beat…

PIA Federal Legislative Summit & National Meetings »7 Boston Bombings Change Terror Focus »13 Montana Sen. Max Baucus ObamaCare Critic »19 Convention 2013 - Learn & Laugh »23

Cover: © Some rights reserved by Flickr/streamingmeemee (Tim Carter)

April 2013 | Published Monthly

Insuring the Midlands Since 1891 Les Hileman, CPCU, AIC Vice President of Agencies 800-742-7433 lhileman@fmne.com

?

Did you

know

Federal Legislative Summit Did you know that on April 10-11, 2013, PIA members from across the country will come to Washington, DC to meet with their Members of Congress? These dedicated agents will be participating in PIA’s annual Federal Legislative Summit.

These agents know that laws made on Capitol Hill can have devastating effects on their businesses. They also know that PIA will provide them with tools, information and support materials so that they can speak eloquently with their Members of Congress.

Here are some of the important issues that PIA members will be talking about at this year’s FLS: • Crop Insurance • Health Care Reform • National Flood Insurance Program • Regulation of Insurance • Tax and Regulatory Reform

CLICK TO PLAY VIDEO

To learn more about the 2013 PIA Federal Legislative Summit, visit www.piafls.com. To learn how you can become a PIA Grassroots Action Leader, visit www.piagrassroots.com. If you are not a PIA member, please join the fight. Contact us for a membership application or visit us online at www.pianet.com/joinpia

National Association of Professional Insurance Agents 400 N. Washington St., Alexandria, VA 22314-2353 www.pianet.com | membership@pianet.org | (703) 836-9340

Top Stories The National Beat … PIA Federal Legislative Summit & National Meetings | 7 PIA board members recently made an annual trip to the PIA Federal Legislative Summit & corresponding national meetings held on April 10th-14th in Washington, DC. PIA on Terrorism Insurance | 10 The entire nation was riveted to television, radio and Internet news sources when police, state police and FBI agents scoured neighborhoods in Boston’s suburb of Watertown for a man believed to be the terrorist that set off bombs at the Boston Marathon.

The Industry’s Take on TRIA Renewal | 12 Insurance Information Institute (I.I.I.) President Dr. Robert Hartwig was at the Boston Marathon’s finish line an hour before the bombs went off.

Boston Bombings Change Terror Focus | 13 Risk Management Solutions (RMS) catastrophe expert Dr. Gordon Woo says the two bombs that went off at the Boston Marathon will change the focus of terrorism risk.

Keeping an Eye on Personal Firearms Insurance | 15 Last week the U.S. Senate decided not to enact a series of gun control and background check reforms sought by the Obama administration.

Insurance — A Growing Job Market | 15 PIA members have been discussing the problem for years. It has come up for discussion at boards of director meetings, at conventions and conferences.

Surprise! Most Think Taxes Fair & Some Audit Info | 16 A week ago those of us waiting until the last minute to file were wiping the sweat from our brows and thankful that tax season is over and we can move on with our lives.

Insurance at Retail Outlets? | 17 Times have changed. Is it for the better?

Probably not.

Dodging Drought | 17 In one way this is actually good news. Other ways the news is not so good. Heavy rains in the Midwest are causing floods, messing up river transportation and keeping farmers from planting corn.

Flood Insurance Price Shock | 18 Consumers are already complaining about flood insurance sticker shock.

Update: Cyber Security | 18 Cyber attacks are growing in the U.S. at an alarming rate.

Montana Sen. Max Baucus ObamaCare Critic | 19 He’s calling ObamaCare’s implementation a “huge train wreck.”

ObamaCare’s Penalty — Most Not Concerned | 19 Those refusing to purchase health insurance under the Patient Protection and Affordable Care Act will face a fine.

Employer Health Care Coverage — Declining | 20 The Robert Wood Johnson Foundation tracks health and health care issues in the U.S.

April 2013 | Main Street Industry News | www.pianeia.com | 4

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PIA NE IA Events Upcoming Events Calendar 2013 | 22 Convention 2013 - Laugh & Learn | 23

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The National Beat…

PIA Federal Legislative Summit & National Meetings

A letter from Robert Hansen, Jr., LUTCF, CPIA — ­ National Director & Legislative Chair I, along with some of our fellow PIA board members recently made our annual trip to the PIA Federal Legislative Summit & corresponding national meetings held on April 10th-14th in Washington, DC. It’s quite amazing to see the large representation of the various PIA state affiliates and their members all come together to converge on Capitol Hill for in person visits with their elected representatives in both the house and the senate.

The event started with a briefing of the issues

by Mike Becker, VP & Director of Federal Affairs on Wednesday afternoon followed by a cocktail reception hosted by our Partnership Companies and then the PIAPAC dinner to continue our fund raising efforts and acknowledge the many PAC supporters for the past year. This was a spectacular event that was held on the roof top of an event center/condo building adjacent to Arlington National Cemetery. There was

April 2013 | Main Street Industry News |www.pianeia.com| 7

Top Stories a breathtaking view of the DC skyline and fortunately the weather was exceptional as well. One of the awards that is presented each year is called the Chairman’s Challenge. This award goes to the various PIA affiliates who have 100% participation from their board members in supporting our national PIAPAC. I’m exited to say that once again we were recipients of this award and it marked the 7th straight year of our NE/IA board being honored. Congrats again to all of our board members and our fellow PIA members who gave generously to supporting our PAC in 2012.

As we all know, you have to pay to play!

Thursday started with a buffet style breakfast and guest speaker, Congressman Andy Barr (R) Kentucky. After breakfast we headed to Capitol Hill and visited with our three Congressman; Lee Terry, Adrian Smith & Jeff Fortenberry and our two Senators; Mike Johanns & Deb Fisher. We’re very fortunate to have elected representatives that generally are very supportive of our insurance industry and the many legislative issues we are contending with as Main Street Agents and consumers. We had good visits and dialogue with all of our representatives and of course, welcomed Senator Fisher to her new role and spent time getting to know her better and updating her on our various legislative issues which included; Crop Insurance, Health Care Reform, Insurance Regulation, National Flood Insurance Program and Tax & Regulatory Burdens. There are additional issues such as; Natural Disaster Planning, Navigators in Health Insurance, Producer Licensing & Terrorism Risk Insurance, that our national Federal Affairs team will continue to monitor and keep us informed of throughout the year. Without hesitation, I believe that investing the time and effort to have a face to face meeting with our representatives pays dividends in the long run. Also, it was somewhat of a bittersweet feeling this year, to not have a visit scheduled with former Senator Nelson. Senator Nelson

has been a gracious host to our association members over the years and a strong advocate for the insurance industry and the role of the Main Street Agent. However, he continues to remain an integral part of our industry in his new role as CEO of the (NAIC) National Association of Insurance Commissioners.

We wish him well in his new endeavor!

Once the Federal Legislative Summit concluded, many of our members remained to attend various PIA national meetings as well as our national board meeting that took place Friday-Sunday. The meetings are very informative and provide a great opportunity to work face to face and share ideas with our fellow colleagues and committee members. It’s also a critical part of the process in finalizing tasks and/or begin the process of setting new goals and objectives for each committee. In addition, it was my first opportunity to officially be at the head table in my new role as one of your national officers; Secretary/Assistant Treasurer. This was a special moment and again reminded me of how fortunate we are to have such a wonderful group of men and women who are inspired to give their time and talents in serving our association, both at the state and national level. I’m honored and humbled to have been elected to serve in this capacity and again, extend a heartfelt “thank you” to all who encouraged and supported me in achieving higher office within our association.

PIA truly is a great association!

THINK PIA!!

Respectfully Submitted, Robert Hansen, Jr., LUTCF, CPIA National Director & Legislative Chair

April 2013 | Main Street Industry News | www.pianeia.com | 8

Top Stories

April 2013 | Main Street Industry News |www.pianeia.com| 9

Top Stories

hineStops Flickr/TheMac Photo Credit: Center Attack World Trade

—

Photo Credit: Flickr/Aaron Tang — Boston Marathon Bombing

PIA on

Terrorism Insurance The entire nation was riveted to television, radio and Internet news sources when police, state police and FBI agents scoured neighborhoods in Boston’s suburb of Watertown for a man believed to be the terrorist that set off bombs at the Boston Marathon.

You’ve seen enough news stories to know the set up and the outcome.

The terrorist attack on Boston’s fabled marathon brings to focus the need for terrorism risk insurance. Looking back at why takes us to the 9/11 attacks on the World Trade Center and the Pentagon, and the airliner hijackings. The hit on the industry was over $40 billion.

The property/casualty sector of the insurance industry determined that it could not sustain an additional terrorist attack without serious financial consequences befalling consumers and the nation’s economy. So Congress and federal government set up the Terrorism Risk Insurance Act — TRIA — to help insurers be able to afford to provide businesses with terrorism risk insurance.

Without TRIA’s reinsurance options terrorism insurance will either be unaffordable or nonexistent. The program expires on December 31st of next year and already the Obama administration and some members of Congress are wanting to let it expire. PIA does not believe this is a good idea.

April 2013 | Main Street Industry News | www.pianeia.com | 10

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Top Stories The insurance is critical to business and to insurance and to the economic security of the nation. Therefore PIA: • Supports an extension of the Terrorism Risk Insurance Program Reauthorization Act. • Supports a Terrorism Risk Insurance Program that provides economic certainty and fills a private market void.

• Supports a Terrorism Risk Insurance Program that allows for wide industry participation.

In its white paper on TRIA, PIA National wrote, “Due to the catastrophic nature of a terrorist attack, many insurers exclude terrorism coverage from their policies. The high level of exposure, particularly for certain geographic areas, has created an increased need for such insurance. However, the private market has been unable to offer sufficient options for a variety of reasons including no loss-data to price policies and a total unpredictability of risk due to no thorough loss history detailing methods, severity, or consistent reasoning.”

“One of the reasons that the Terrorism Risk Insurance Program has been so successful is due to wide industry participation. As Congress moves forward on reauthorizing the program, it is important to keep the program at a point where all companies, small and large, have an opportunity to participate. An increase to costs thresholds, including higher deductibles or a higher share of losses over the deductible, could price this program out of the hands of many insurers, which PIA cautions against.”

In conclusion PIA National said: “TRIP fills a large void in the market and provides a level of certainly in an uncertain time. It is critical that Congress extend the TRIA well before its current expiration of December 31, 2014.” n

PIA urges that Congress — especially in light of the Boston Marathon attacks — renew the Terrorism Risk Insurance Program — or TRIP. And the PIA urges Congress to make sure the renewed program is done in a way that all insurers — large and small — can participate.

The Industry’s Take on TRIA Renewal Insurance Information Institute (I.I.I.) President Dr. Robert Hartwig was at the Boston Marathon’s finish line an hour before the bombs went off. He told reporters he was standing 100-feet from the site and watched his son cross the finish line.

Robert P. Hartwig is president of the Insurance Information Institute.

Hartwig is a big proponent of the renewal of the Terrorism Risk Insurance Act (TRIA) due to expire at the end of next year. Today — because of his experience — he may be an even bigger proponent.

April 2013 | Main Street Industry News | www.pianeia.com | 12

Top Stories When TRIA was renewed in 2007 it gained a new name — the Terrorism Risk Insurance Program Reauthorization Act (TRIPRA). A couple of weeks ago New York Republican Rep. Michael Grimm introduced a bill to extend that act through 2019.

The Council of Insurance Agents & Brokers President and CEO Ken Crerar said, “In the coming days, weeks and months ahead, this senseless tragedy will be invoked as a part of the debates on all facets of terrorism — intelligence, readiness, and, yes, financial security.”

In statements to the media, Dr. Hartwig supported Grimm’s bill and said stability in the terrorism risk insurance market must be maintained and it can only be maintained with federal reinsurance support — or TRIA.

The financial security part is TRIA and Jimi Grande of the National Association of Mutual Insurance Companies (NAMIC) said his group has urgently encouraged Congress to renew TRIA and did so even before the Boston bombs went off.

“The evidence, both in the United States and from similar programs abroad, is that market stability in terms of both pricing and availability of terrorism coverage, as well as the ability to maintain adequate and expanding levels of capacity over time, are contingent on the continued existence of a federal terrorism risk insurance program,” he said.

“When we return to the debate over TRIA, with a sad reminder that the threat of terrorism has never left us, NAMIC will continue to make the same arguments we’ve made all along — that TRIA is a vital part of our nation’s economic defense; that terrorism is a unique risk whose very nature makes it impossible for insurers to cover against major events; and that the information needed to even begin to price coverage is rightly kept classified as a matter of national security.”

Renewal has the support of much of the insurance industry including PIA and the National Association of Insurance Commissioners (NAIC). Even before the Boston bombings the industry was pushing members of Congress and the administration to renew TRIPRA — or TRIP for short.

Boston Bombings

Change Terror Focus Risk Management Solutions (RMS) catastrophe expert Dr. Gordon Woo says the two bombs that went off at the Boston Marathon will change the focus of terrorism risk. Since 9/11 terrorists have focused on large, world-shaking events. The nation’s law enforcement and intelligence authorities have been exceptionally good at discovering plots and stopping them.

American Insurance Association (AIA) spokesman Willem Rijksen said, “Most unfortunately, this tragedy reminds us all of the continued threat posed by terrorist attacks.” n

With restrictions on obtaining materials, terrorists — Woo emphasizes — are changing their focus. Sporting events like the Boston Marathon will now be targets rather than going for super huge events like the Superbowl.

“Terrorism risk is best mitigated by counterterrorism forces interdicting plots before terrorists move to their targets. Fortunately, this happens with more than 90% of U.S. and U.K. plots. However, plots involving a small number of operatives, such as seems to be the case with the Boston bombing, are the most difficult to prevent,” he said.

April 2013 | Main Street Industry News |www.pianeia.com| 13

Top Stories

One thing is for certain, sporting event insurance is going to rise significantly because of the Boston bombings. “The insurance of sports events is likely to be impacted by the Boston Marathon bombs. The shortage of terrorism insurance cover in the years after 9/11 led to the securitization of the cancellation risk of the 2006 FIFA World Cup. So while the property insurance loss is small, the Boston Marathon bombing may well have a significant influence on the terrorism insurance market.”

Marsh & McLennan’s entertainment and events manager Bob Murphy agrees. “This has absolutely shaken sports industry underwriters. People are asking, ‘Do we even want to underwrite these events? If we do, what are the underwriting data that we need to see to protect our risk?’ We’re going to have ramifications in terms of limits and pricing.” n Photo Credit: Flickr/Aaron “tango” Tang — Boston Marathon Explosions

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Top Stories

Keeping an Eye on Personal Firearms Insurance

Last week the U.S. Senate decided not to enact a series of gun control and background check reforms sought by the Obama administration. The non-decision is controversial.

To date the reforms have been stopped in Congress. They have not — however — been stopped in the states. Bills have been introduced in the PIA Western Alliance state of California and in Massachusetts, Connecticut, New York, Pennsylvania and Maryland that — in various ways — will require gun owners to maintain liability insurance specifically for their weapons.

Some proposals in some states — according to Insurance Information Institute (I.I.I.) President and CEO Dr. Robert Hartwig — require insurance on damage inflicted by the weapons and on illegal acts committed with those weapons.

He points out that insurance never has — and never will — insure an illegal act.

“In New York State, for example, the bill as proposed says it would have to cover ‘willful acts.’ That would encompass even illegal acts under that language. I think the bills were crafted quickly and without consideration with respect to what sort of things were not available in any insurance policy,” Hartwig said.

© Some rights reserved by Flickr/iluvcocacola

Unintentional firing of a weapon is insured under a normal homeowners policy. Hartwig then went on to explain damages caused by knives and other items found in a home.

If someone is injured using one or there is an accidental injury, it’s covered. Murder someone with those items and the damage is not covered. n

Insurance

A Growing Job Market PIA members have been discussing the problem for years. It has come up for discussion at boards of director meetings, at conventions and conferences. Conversation has centered around older insurance agents retiring and it becoming harder and harder to find qualified replacements.

Peter Miller is the CEO of The Institutes.

He did a study on insurance retirements and baby boomers working in insurance

and found that the number of people working in insurance age 55 and over is 30% higher than in any other industry.

Putting pencil to paper, Miller figures the insurance industry will have 400,000 job openings by 2020. In an era of joblessness and employment desperation you’d think the growing insurance job market would be an attraction.

Miller says it is not. In fact, his future job pool study shows over 40% of current high school students are not interested in insurance jobs or even close to interested in insurance as a career. n

April 2013 | Main Street Industry News |www.pianeia.com| 15

Top Stories

Surprise!

Most Think Taxes Fair & Some Audit Info Here’s some perspective. The first poll of this sort was done by Gallup in 1943.

• In 1943, 87% thought their taxes were fair.

• That number persisted until after World War II. • In 1946 the number fell to 61%.

A week ago those of us waiting until the last minute to file were wiping the sweat from our brows and thankful that tax season is over and we can move on with our lives. The rest of us got our tax returns in earlier and all that is different is we moved on with our regular lives a little quicker than those that didn’t.

Gallup says whether we did our taxes at the last minute or at the first opportunity, the majority of us find taxes to be fair. In its yearly after the tax debacle survey, the Economy and Personal Finance Poll, Gallup found 55% of us rate taxes in the positive and think our taxation system is fair.

While still in positive territory, it is the lowest rate since 2001.

Gallup notes the bulk of the declining numbers identify themselves as conservative Republicans.

They have lost their faith in the fairness of the nation’s tax system. Here’s the breakdown: • 49% of Republicans think taxes are fair.

• 66% of Democrats think taxes are fair.

• Just 51% of Independents think taxes are fair.

Gallup broke it down in a couple of categories: • 70% of those identifying themselves as liberals think the tax system is fair.

• 59% of moderates say it is fair.

• Just 45% of conservatives call the system fair.

We’ve filed our tax returns. The worry now is audits. Who gets audited? An analysis by the Associated Press said the Internal Revenue Service only audits 1% of individual income tax returns in a given year.

Last year — in 2012 — there were 143 million returns filed. Of those 1.1 million were audited by mail and another 360,000 in person. The IRS also breaks down the audits in income groups: Incomes above $200,000 — Audit rate 3.7% • 4.8 million of us had incomes of over $200,000 in 2012.

• 109,000 were audited by mail.

• 70,000 were audited in person.

Incomes above $1 million — Audit rate 12.1% • 337,000 of us have incomes of $1 million a year.

• 23,000 were audited by mail.

• 18,000 were audited in person.

Small Corporations — Assets under $10 million — Audit rate — 1.1% • 1.9 million of corporations have assets under $10 million.

• 21,200 were audited in 2012.

Large Corporations — Assets of $10 million or more — Audit rate 17.8% • 60,500 corporations with assets of $10 million or more filed.

• 10,800 were audited. n

April 2013 | Main Street Industry News | www.pianeia.com | 16

Top Stories

Insurance

Dodging Drought

at Retail Outlets?

Times have changed. Is it for the better? Probably not. This story is about life insurance and most of you don’t sell life. But for the independent insurance agent the concern is real. The annual Insurance Barometer Study from LIFE and LIMRA says 17% of the consumers they asked are okay with buying life insurance at a retail outlet.

The non-traditional sales channels would be Wal-Mart, Target or Costco or similar outlets.

Those questioned cited a number of reasons: • 63% said a reasonable cost.

• 44% said the process would be more simple.

• 43% like the convenience.

• 42% said no pressure to buy.

LIMRA’s Todd Silverhart said, “While the number of consumers willing to purchase a life product through a retail outlet is not overwhelming, it certainly is worthy of note. In light of the novelty of the concept and that few people have actually shopped for life insurance Todd A. Silverhart, Ph.D. through a retail Corporate Vice President and Director of Insurance Research LIMRA outlet, there is likely to be considerable confusion in the eyes of the consumer as to what such a purchasing experience might entail. For carriers seeking a niche market, retail ventures could be a worthy approach.” n

In one way this is actually good news. Other ways the news is not so good. Heavy rains in the Midwest are causing floods, messing up river transportation and keeping farmers from planting corn.

That’s the bad news. The good news says MDA Weather Services meteorologist Don Keeney is the rains mean the worst drought to hit the U.S. bread basket in 50-years is getting some relief. “These rains are really helping bring most areas out of drought status. And the rain encompasses all of the western Corn Belt that was previously dry,” he said.

The rains help in some areas and are almost as bad as drought in others. The delay of plantings could eventually cause farm commodity prices to drop. That drops the price of feed to livestock and hogs. It also hurts grain producers who have experienced record highs.

Last spring and summer’s drought hit crop insurance hard. Farmers filed $11.8 billion in claims and farm income fell 3% from the 2011 record levels. n

© Some rights reserved by Flickr/Centaurii

April 2013 | Main Street Industry News |www.pianeia.com| 17

Top Stories

Flood Insurance Price Shock Consumers are already complaining about flood insurance sticker shock. The Bigger-Waters Flood Insurance Reform is revamping how flood insurance is priced and the reforms are designed to bring them in line with what the insurance really ought to cost.

Under the law which went into effect last year, flood insurance rates for many properties will rise 25% per year for four years until they reach sound actuarial rates.

Two New Jersey Republican Reps. Frank LoBiondo and Jon Runyan have introduced a bill in the U.S. House of Representatives to halve that to 12.5% per year for eight years. LoBiondo says the hikes are pricing people out of their beach homes and that’s a disaster of a different sort considering the damage they suffered from Superstorm Sandy.

The Biggert-Waters price hikes target second and vacation homes, commercial homes and new properties and homes on coasts that are damaged on a regular basis from storms.

LoBiondo says it’s harmful, “We have people's personal lives that have been ripped apart. You can't just wipe out whole communities. You can't expect Brigantine or other barrier island communities to go away because someone far away doesn't want us to be here.” n

Update

Cyber Security Cyber attacks are growing in the U.S. at an alarming rate.

Insurers are starting to recognize the potential for business and more

of them are offering cyber risk insurance to businesses susceptible to attacks.

Meanwhile, on the political level, Congress and the Obama administration continue efforts to resolve the problem and lower risk. And like most other critical government issues, the U.S. House of Representatives and the administration agree on the need for a fix but vehemently disagree on how that fix should work.

The House passed the Cyber Intelligence Sharing and Protection Act (CISPA). It’s the second time the House has passed the law.

Last year’s version didn’t get off the ground when it got to the Senate.

This version of CISPA — designed to help government and information firms share information on cyber threats — passed in bipartisan fashion with several Democrats joining the Republican push. House Democratic Whip Steny Hoyer said the new bill is “a significant improvement from what was passed last year.”

Several industry groups support this version of CISPA. Opponents include the American Civil Liberties Union (ACLU). It doesn’t like the bill and neither does the White House.

President Obama has promised a veto unless protections for personal data are put into the law. He has the support of House Minority Leader Nancy Pelosi on that one.

Before it passed, the House Intelligence Committee refined the bill to specify that the Departments of Homeland Security and Justice be the clearing house for data instead of the U.S. military.

Rep. Mike Rogers — whose bill this is — said that gives the bill a civilian face. n Laptop Safe Image: © Some rights reserved by elhombredenegro

April 2013 | Main Street Industry News | www.pianeia.com | 18

Top Stories

ObamaCare Montana Sen. Max Baucus ObamaCare Critic He’s calling ObamaCare’s implementation a “huge train wreck.”

The “he” is Montana Sen. Max Baucus. The Montana Democrat is the chairman of the Senate Finance Committee and one of the key players in crafting the Patient Protection and Affordable Care Act. Baucus is very unhappy with the law’s implementation and gave Health and Human Services Secretary Kathleen Sebelius and the Obama administration a failing grade. He told Sebelius that in eight months individuals and small businesses are going to feel the full impact of the sweeping legislation and few of them know anything about what is coming down the pike.

“I’m very concerned that not enough is being done so far. Very concerned. The administration’s

public information campaign on the benefits of the Affordable Care Act, I think, deserve a failing grade.

You need to fix it,” he said.

Sebelius told Baucus and his committee that the administration takes its outreach seriously and the president’s $3.77 trillion budget released a couple of weeks ago includes an additional $1.5 billion for outreach. “We also understand that people have a lot of questions and are deploying as many resources as we can to answer those questions and get folks ready,” she responded to Baucus.

Sebelius blames Republicans who dropped $1 billion in funding to pay for outreach. “We were incredibly disappointed that our request for additional outreach and education resources were not made available,” Sebelius said.

Most budget experts don’t think the $1.5 billion will make this year’s budget cut either. n

ObamaCare’s Penalty: Most Not Concerned Those refusing to purchase health insurance under the Patient Protection and Affordable Care Act will face a fine. The first year it is $95. HealthPocket — the consumer-oriented health plan ranking firm — did a survey that wanted to know if consumers currently without health insurance were going to buy insurance via the plan’s exchanges. Or would they choose to pay the fine.

Here is the question: Will the $95 IRS penalty motivate

you to shop this October for an Obamacare health plan?

HealthPocket CEO Bruce Telkamp said just under 63% said no. Just 8% said yes and 30% don’t know what they are going to do.

“From this we know that the penalty alone will not drive a large number of consumers to purchase a new health plan starting this October. Therefore, the law will be most effective if consumers see real value in obtaining

the insurance coverage. Only insurers that offer high quality and affordable health plans should expect to see significant new enrollments this fall,” Telkamp said.

The fine starts at $95 or 1% of household income whichever is greater. That’s for 2014 and 2015.

In 2016 the penalty gets steeper and goes to whichever is greater, $695 per person or 2.5% of household income. n

April 2013 | Main Street Industry News |www.pianeia.com| 19

Top Stories

Employer Health Care Coverage: Declining The Robert Wood Johnson Foundation tracks health and health care issues in the U.S. The organization released information from a study that shows the soon to be implemented Patient Protection and Affordable Care Act may be in for some serious challenges.

The study shows employer health insurance coverage in 2011 covered 159 million people.

That is 12 million fewer than were covered by employers in 2000. At the measurement point in 2011, just 60% of the American people were covered by employer insurance.

The foundation’s Risa Lavizzo-Mourey blames the decline on two factors: unemployment and

premiums that have doubled in some cases.

“Everyone’s costs have increased dramatically.

Higher costs naturally translate into fewer employers offering insurance coverage, and fewer employees accepting it, even when it is offered.”

Private sector employers offering coverage to employees fell from 59% in 2000 to 52% in 2011. Costs for insurance during the time period doubled to $5,081 and the average family premium hit an increase of 125% to $14,447.

The concern is that numbers will continue to drop and ObamaCare may not be able to afford to keep up. The law’s individual mandate is supposed to bring more people into the health insurance marketplace. Projections by the Congressional Budget Office (CBO) says the number in the next decade could be as high as 27 million. n

Help Keep Your Agency Active If You Should Become Disabled...

Cover Overhead Expenses With The PIA Trust

Business Overhead Expense Insurance Plan BOE COVERAGE DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you have access to a high-quality, competitively priced BOE plan through the PIA Services Group Insurance Fund.

Office expenses don’t stop because you become disabled. Bills keep coming in whether or not you’re in the office. Those overhead expenses could become a real problem if your agency’s revenues are dependent on you. With the PIA Trust Business Overhead Expense plan, you can help maintain your agency until you are able to resume your duties.

PIA SERVICES GROUP INSURANCE FUND

*PIA National membership, when required, must be current at all times

For more information about the PIA Trust Business Overhead Expense Insurance Plan, please contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759. Additional information is also available on-line at www.piatrust.com.

The policy or its provisions may vary or be unavailable in some states. The policy has exclusions and limitations which may affect any benefits payable.

Underwritten by Unimerica Insurance Company, Association Administrative Address, P.O. Box 17828, Portland, ME 04112-8828, under Policy Form ADI-4001-A (UIC).

Insurance Program Administered by Lockton Risk Services.

April 2013 | Main Street Industry News | www.pianeia.com | 20

Top Stories

Marsh: Global Insurance Rates Continue Rising Marsh is happy with the first quarter of 2013 insurance rate results. The company’s report Global Insurance Market Quarterly Briefing says the increases mark the fifth straight quarter of average insurance rate hikes.

In the U.S. rates averaged increases of 2% to 4%. Rates outside the U.S. hit an average of 1%. One of the reasons for U.S. rate hikes in property insurance is Superstorm Sandy. It caused 55% of those with property insurance in the U.S. to see rate hikes.

These are the rate increases per line according to the Marsh report: Property

55% increase

19% no change

26% decrease

General Liability

46% increase

20% no change

34% decrease

Workers’ comp

54% increase

16% no change

30% decrease

Excess/umbrella

61% increase

20% no change

19% decrease

Public/D&O

63% increase

10% no change

27% decrease

April 2013 | Main Street Industry News |www.pianeia.com| 21

PIA NE IA Events

Upcoming Events Calendar 2013 For information and to register Click Here or call (402) 392-1611.

Date

Event

City

State

May 2, 2013

CISR Insuring Commercial Property

Marion

IA

May 8-10, 2013

CIC Commercial Property Institute

Lincoln

NE

May 15, 2013

CISR Insuring Personal Auto Exposures

Johnston

IA

May 22, 2013

CISR Insuring Personal Residential Property

Davenport

IA

June 4-5, 2013

Convention

Kearney

NE

June 19, 2013

CISR Agency Operations

Marion

IA

June 26-28, 2013

CIC Commercial Property Institute

Des Moines

IA

June 26, 2013

CISR William T. Hold Seminar

W Des Moines

IA

July 10, 2013

CISR Personal Lines/Miscellaneous

Marion

IA

July 17, 2013

CISR Insuring Personal Residential Property

Johnston

IA

July 17-19, 2013

CIC Personal Lines Institute

Omaha

NE

July 24, 2013

CISR Commercial Casualty I

Davenport

IA

August 7, 2013

CISR Insuring Personal Auto Exposures

Marion

IA

August 21-23, 2013

CIC Personal Lines Institute

Cedar Rapids

IA

August 28, 2013

CISR Insuring Commercial Property

W Des Moines

IA

September 10, 2013

Scholarship Golf Outing

Ashland

NE

September 12, 2013

CISR Commercial Casualty II

W Des Moines

IA

September 18-20, 2013

CIC Commercial Casualty Institute

Lincoln

NE

September 19, 2013

CISR Dynamics of Service Seminar

Johnston

IA

September 26, 2013

CISR Agency Operations

Davenport

IA

October 3, 2013

CISR Insuring Personal Residential Property

Marion

IA

October 16, 2013

CISR Insuring Personal Auto Exposures

Davenport

IA

October 16-18, 2013

CIC Commercial Casualty Institute

Des Moines

IA

November 13-15, 2013

CIC Life & Health Institute

Omaha

NE

November 21, 2013

CISR William T. Hold Seminar

Marion

IA

December 5, 2013

Greater Omaha Committee Christmas Party

Omaha

NE

April 2013 | Main Street Industry News | www.pianeia.com | 22

Be a Part of the Fun! Convention Hotel Facility (you must register yourself for accommodations)

Holiday Inn Hotel & Convention Center - Kearney

110 South 2nd Ave., Kearney NE 68847 (308) 237-5971

Agent’s Information: Name: _____________________________________

Company Name: ___________________________

Address: ___________________________________

City/State/Zip: _____________________________

Phone: _____________________________________

E-mail: ____________________________________

Golf Outing at Awarii Dunes:

q $85/Members

**Limited to the first 80 registrants**

No. of Players: ________

Name(s) of Players: __________________

Evening of Comedy & Trade Fair Past President’s Breakfast AM & PM Seminars Achiever’s Luncheon

__________________

q $35/Members q $15/Members q FREE/Members q $25/Members

q $95/Non-Members __________________ __________________

q $45/Non-Members q $25/Non-Members q $55/Non-Members q $25/Non-Members

Total for all Events/Classes you plan to attend: $_______________ Cancellations received 5-10 calendar days before convention will incur a $25 non-transferable fee. Cancellations received 2-5 calendar days before will incur a $75 non-transferable fee. If you cancel the day before or fail to show up for any events, registration fee is forfeited; no exceptions.

Payment Information: Amount Enclosed: _____________ q I’m Sending a Check q Credit Card No. ____________________ Approval Signature: _____________________________________ Exp Date: ________________________ Return with payment to:

PIA of Nebraska Iowa 920 South 107th Ave., Ste 305, Omaha, NE 68114 FAX: (402) 392-2228 Questions? Email Jenn at frontdesk@pianeia.com Register Online at pianeia.com

Don’t Be Left Out! Golf & Entertainment Day — Tuesday, June 4th

The morning starts out with …

Golf Outing at Awarii Dunes Golf Course: www.awariidunes.com Awarii Dunes Golf Course 592 S Road Axtell, NE 68924 (308) 743-1111 **5 miles south of the Kearney Holiday Inn**

$85 members/$95 non-members **Includes two drink tickets.

**Limited to the first 80 registrants** Awarii Dunes Golf Club is an 18 hole championship course measuring approximately 7,000 yards. It was built on sand hills created by nature, not man. Awarii means “windblown” in Pawnee and refers to the majestic winds that blow through, around & sometimes up & over the dunes.

Registration begins at 11:00 am Shot Gun Start is at 12:00 pm

The evening brings …

Trade Fair & Evening Entertainment at Holiday Inn & Convention Center Holiday Inn & Convention Center - Kearney 110 S 2nd Ave Kearney, NE 68847 (308) 237-5971

$35 members/$45 non-members Trade Fair begins at 6:00pm **Golf Prizes will be awarded at 6:30pm

Representatives of numerous businesses that support our association are eager to visit with you. Refreshments and hors d’oeurves will be available as you mingle with the crowd and make the rounds of the exhibit booths. Be sure to bring plenty of business cards and make the most of this opportunity to make new contacts and strengthen established relationships.

Evening Comedy Show begins at 7:30pm

After a little mingling, relax and enjoy the comedic styling of Gayle Becwar! His quick wit, sharp memory, and likable ad-libbing style will have you in stitches! Becwar recently taped for HBO’s Comic Relief and for Showtime’s Funniest Man in America Contest, where he scored big to thundering applause. The Associated Press said it best: “More than just a magician, Gayle Becwar is a complete entertainer.”

Hotel Facility: Holiday Inn & Convention Center, Kearney NE

You are responsible for making your own hotel reservation by contacting the Holiday Inn Hotel & Convention Center at (308) 237-5971 and requesting the group name “Professional Insurance Gayle Becwar Agents” for our special rate of $92.95 (Suites - $159.95). A block of rooms have been reserved for June 4-5, 2013. The special room rate will be available until May 7th or until the group block is sold-out.

Event Attire:

For Tuesday’s golf outing, appropriate golf attire please.

For Tuesday evening & Wednesday, the attire is Business Casual.

Be Entertained & Be Informed: Laugh & Learn with PIA!

Education Day – Wednesday, June 5th

Past President’s Breakfast - 7:00 am $15 members/$25 non-members

Everyone is welcome to join us to Honor Past Presidents.

Morning Session

FREE for Members / $55 Non-Members with PM Seminar

The Latest in E&O

3 P/C CE hours (applied for)!

Morning Session – 8:30 am **Registration begins at 8:00 am**

Every year, the Agents E&O landscape seems to take some new twists. This 3 hour loss control seminar will take a look back in time and review what has changed over the years. Included will be extensive discussion on the major E&O issues that agents face and the new plaintiff’s that are bringing litigation against today’s agent. A series of best practices will be provided to help agents face these various challenges. Throughout the session, actual E&O cases will be used to enhance the understanding of the material.

Curtis Pearsall, CPIA, CPCU, AIAF, ARM, AU - Utica, NY

Curt is the President and Founder of Pearsall Associates Inc., a Risk Management Consulting firm specializing in helping agents protect themselves. He is the former SVP of Utica National’s Agents E&O program where he oversaw their Underwriting, Marketing Services and Claims divisions from 1987 to 2009. Curt regularly provides free E&O tips for agents on his blog www.agentseotips.com

Every agency wants to save money.

Earn a 5% credit—up to a maximum of 10% credit applied to your Utica premium by attending this seminar! There is no minimum premium threshold for an account to be eligible for the credit, which will be applied after the application of any schedule rating modifiers.

Total Staff Size and Who Needs to Attend 1-3 staff size 4-10 staff size 11-20 staff size 21+

> 1 principal/office manager or CSR need to attend > 1 principal/office manager and 1 CSR need to attend > 1 principal/office manager and 2 CSRs need to attend > 20% of staff need to attend

Achievers Luncheon - 12:15 pm – 1:45 pm

$25 for Members / $25 Non-Members PIA Vice President of Federal Affairs, Mike Becker, will be fresh off of Capitol Hill with the latest news about insurance issues affecting you and your agency! Not to mention great stories and gossip from the Hill! Also, find out who is “Agent of the Year,” “Marketing Rep of the Year,” and “Company of the Year!” Meet the winner of the $1000 PIA Scholarship!

Afternoon Session

Public Entities & Municipalities

Mike Becker

3 P/C CE hours (applied for)!

Afternoon Session – 2:00 - 5:00 pm

Learn everything you need to know about producing and servicing public entities; including municipalities, school districts and other tax-funded organizations. The presentation will cover the following topics: • The myths surrounding public entity purchasing.

• What defines an organization as a public entity?

• Standard coverage lines as they apply to public entities & unique coverage lines required.

• Statutory immunities and how they change insurance coverage.

• How sunshine laws affect the sales process.

REMEMBER Register Online pianeia.com

• The pluses and minuses of public entity pools.

Monte Giddings, CIC, ARM – Leawood, KS

Monte has 31 years of experience in Property/Casualty risk management and insurance solutions. In 1978 he entered the insurance industry as an underwriter for Aetna Life & Casualty, learning the technical side of the business before crossing over to the agency side. He has been both an account executive in major accounts and Vice President of Operations for two national brokerage houses before becoming an agency owner. Monte specializes in business analysis, Property/ Casualty insurance program design, strategic risk management, and total cost improvement.

Cross-Sell Strategy

#21

EPLI COVERAGE

“ Addressing the growing concerns of clients can grow your business.”

Riley Tonkin, Omaha Branch Marketing Representative Employee lawsuits are more likely to occur than a fire. Include EMC’s Employment Practices Liability coverage to make certain your clients are protected from all the risks they may face. It’s just one of the many reasons policyholders Count on EMC®.

Omaha Branch: 800.338.9735

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Home Office: Des Moines, IA

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