Main Street Industry News - January 2014

Adam Hamm NAIC’s New Board of Directors »7

INSIDE Autos 1: Vehicle Technology & Gen Y & More »9 PIA National — Another Refutation of the McKinsey Report »12 Reform the Flood Reform Battle Rages »16 Congress Negotiators Close to Farm Bill Agreement »20

Cover Photo: Greetings from Iowa Some rights reserved by Phil Roeder

January 2014 | Published Monthly

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

Did you know that PIA members are taking control of their E&O destiny with the launch of a new captive insurance company? PIAPRO, the PIA Professional Liability Insurance Company, is a Risk Retention Group (RRG) formed to offer errors and omissions coverage exclusively to PIA members*. PIAPRO is a PIA agent-owned, PIA agent-controlled independent company.

While PIAPRO is available exclusively to PIA members, non-member independent agents can request a premium indication or a quote with the understanding that they must join PIA in order to bind coverage.

PIAPRO is partnering with Argo Group to offer this admitted program, backed by Argonaut Midwest Insurance Company and Argonaut Insurance Company, rated “A� by A.M. Best & Co. PIAPRO was designed by and for PIA Members. For a list of policy highlights and additional information about PIAPRO, please visit www.pia-pro.com. To find your local PIA E&O producer, please visit www.pianet.com/eando.

If you are not yet a PIA member, please consider joining today. Contact us for a membership application or visit us online at www.pianet.com/joinpia. * Membership in the National Association of Professional Insurance Agents must be in good standing at all times. This advertisement is not intended to provide full coverage details. A complete listing of the coverages including exclusions and limitations can be found in the policy forms. If differences exist between these summaries and the policy forms, the policy forms will govern. The policies may vary or be unavailable in some states.

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 NAIC’s New Board of Directors | 7 The National Association of Insurance Commissioners (NAIC) has a new president.

Cyber Risks Increase around the New Year | 8 Three major cyber attacks occurred during the holidays. Target, Skype and Snapchat got hit with data breaches.

Autos 1: Vehicle Technology & Gen Y & More | 9 Generation Y are those born in the 1980s to the early 2000s.

PIA Partnership: Closing the Gap — a New Tool | 10 A new tool designed to help independent insurance agencies achieve growth and profitability has been unveiled by PIA and its agency-company council, The PIA Partnership.

PIA National — Proof You Can Make a Difference | 10 PIA member Tim Russell of Connecticut decided to reach out to young people and their parents to encourage safe and responsible driving.

PIA National — Another Refutation of the McKinsey Report | 12 PIA has again challenged various assertions in a report issued in November by the consulting firm McKinsey & Co.’s Financial Services Practice.

PIA National’s Annual Federal Legislative Summit | 13 The 2014 PIA Federal Legislative Summit (FLS) is a bit under three months away.

Do’s and don’ts of reducing chances of an E&O claim | 14 The duties of a producer or account executive/ customer service representative in an

agency present tremendous challenges and responsibilities.

Reform the Flood Reform Battle Rages | 16 Bills in the U.S. Senate and House want to reform the flood insurance reforming BiggerWaters Act. Insurers & ObamaCare Payments | 18 It’s anybody’s guess when someone signs up for health insurance on HealthCare.gov whether a payment is being made to the insurer picked to provide insurance.

By the Numbers — The Uninsured & the House | 19 Enroll America is keeping tabs of those who aren’t signing up for the Affordable Care Act as required by law.

Aetna CEO on ObamaCare & Health Care | 19 Aetna CEO Mark Bertolini recently let it all hang out about the Affordable Care Act (ACA) and about rising medical costs.

Congress Negotiators Close to Farm Bill Agreement | 20 The negotiations to give the nation a new farm bill have been difficult.

PIA NE IA Events Upcoming Events Calendar 2014 | 22 2014 Legislative Luncheon | 27

Advertisements Wanted, For Sale and Opportunities | 26 Contact us to place a classified ad.

January 2014 | Main Street Industry News | www.pianeia.com | 4

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IS YOUR E&O X-DATE HERE? PIA for Nebraska and Iowa PIA Association for Nebraska and Iowa is committed to focusing its resources in ways that cast the most favorable light on its constituents. We are dedicated to providing the type of programs, the level of advocacy, and the dissemination of information that best supports the perpetuation and prosperity of our members.

We pledge to always conduct ourselves in a manner that enhances the public image of PIA and adds real value to our members.

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Top Stories

National Association of Insurance Commissioner’s New Board of Directors

Sharon Clark of Kentucky, NAIC Secretary-Treasurer

The National Association of Insurance Commissioners (NAIC) has a new president.

He is Adam Hamm who is North Dakota’s insurance commissioner. Sharon Clark of Kentucky is the new secretarytreasurer. Also in leadership roles at the NAIC are Julie Mix McPeak of Tennessee and Wayne Goodwin of North Carolina.

Adam Hamm, NAIC President & North Dakota’s Insurance Commissioner

The term of Louisiana commissioner Jim Donelon has expired.

Julie Mix McPeak of Tennessee, NAIC Leader

Hamm says he’s looking forward and not at what is in the “rearview mirror.” Uppermost on his — and the NAIC’s — mind is the Affordable Care Act. He’s also concerned about the Federal Insurance Office (FIO). The NAIC has yet to do an in depth response to the FIO’s report on insurance. All Hamm did was emphasize — as the NAIC has for a couple of years — the FIO is not a regulator.

He also worries about the Financial Stability Board (FSB) and its impact on regulation in the United States. “It is a concern we don't have a voice on that body. I guarantee that will have more discussion on in 2014.” n

Wayne Goodwin of North Carolina, NAIC Leader

Source: PropertyCasualty360.com

January 2014 | Main Street Industry News |www.pianeia.com| 7

Top Stories

Cyber Risks Increase

Around The New Year

Three major cyber attacks occurred during the holidays. Target, Skype and Snapchat got hit with data breaches. The Target attack netted credit and debit card information for 40million customers. Snapchat got hit and 4.6 million users had their personal information compromised. Skype said no personal information was compromised in its attack.

John Kindervag of Forrester Research said companies are vulnerable during the holidays because they don’t want to tweak their systems or do anything that might hinder holiday shopping traffic.

“Every company is a target, if it has data that can be monetized in the black markets of the Internet. During the holidays, companies don’t make any changes or do anything to their systems, and IT people are given vacation.”

Jon Callas who is the cofounder of Silent Circle agrees. “If you’re going to try to pull off a big heist on a department store like Target, you want to do it during the Christmas rush.

That’s when more people are shopping and

plugging in credit card information, and you want the companies to be so overwhelmed with legitimate customers that they’re not paying attention to you.”

Insurance Journal reports that lawsuits are coming. Target is facing two class action suits right now. Attorneys general in New York, Massachusetts and Connecticut are asking Target for more information.

KrebsOnSecurity — a news website on security — told the publication in those states and others consumers are reporting problems and the stolen information is already flooding the black market. Credit and debit card info is going for $20 per card to as much as $100.

The Target breach — Insurance Journal said — is prompting companies to purchase cyber insurance. It quotes Anderson Kill attorney Joshua Gold who said, “A lot of companies are purchasing specialized cyber insurance policies so those have to be examined.”

One thing is for certain. Target’s breach is going to be very expensive and if the firm doesn’t have cyber risk insurance, the millions this one is going to cost will make it with it had. n

January 2014 | Main Street Industry News | www.pianeia.com | 8

Top Stories

Autos 1:

Vehicle Technology & Gen Y & More

Photo Credit: Department of Transportation vehicle-to-vehicle (V2V) program

Generation Y are those born in the 1980s to the early 2000s. They’re also known as Millennials.

Technology is almost second nature to them.

They grew up with it where other generations grew into it.

These days you’re hearing a lot about new technologies from auto manufacturers. The biggest deal is the driverless car. If you want to know the reason behind the driverless car and the big auto technology push look no further.

It is Gen Y. They make up about a third of the nation’s drivers and that figure is destined to grow as their parents and grandparents depart this world.

Accenture consulting did a survey of Millennials in 12 countries. They talked to 14,000 of them.

And here’s what they want: • 82% want their vehicles to brake for them in an emergency.

• 76% want a braking system that keeps them from hitting something, anything.

• 72% want collision warning systems.

• 71% want their vehicles to park for them.

• 48% want a vehicle that won’t let them stray out of their lane.

And while Gen Y asks for more from auto manufacturers, the federal government is considering requiring more. In the next few weeks a decision will be made on devices in new vehicles that warn the driver of an upcoming crash. The technology will spot the accident in the making two to three vehicles ahead.

In a November study the Government Accountability Office (GAO) said the V2V technology could at least warn drivers of 76% of all multi-vehicle collisions. “The continued progress of V2V technology development hinges on a decision that the National Highway Traffic Safety Administration plans to make in late 2013 on how to proceed … one option would be to pursue a rule requiring their inclusion in new vehicles,” the study said.

By the way, it takes 20 years for the U.S. to turn over its entire auto fleet so it may be awhile before you see this technology in every vehicle. n

January 2014 | Main Street Industry News |www.pianeia.com| 9

Top Stories

PIA Partnership Closing the Gap — a New Tool

A new tool designed to help independent insurance agencies achieve growth and profitability has been unveiled by PIA and its agency-company council, The PIA Partnership. Closing the Gap – Growth & Profit provides agents with calculators to help agencies project and plan for new business growth and profitability on a 5-year basis.

PIA National President John G. Lee said current PIA members are able to access the tool on a newly redesigned website: Agency Growth Profit.

“This latest tool is of great value to PIA members as they seek new ways to ensure their success. The cutting-edge projects of The PIA Partnership are critical to the success of both the companies that market their products through the American Agency System and the PIA agents who represent those companies,” Lee said.

PIA National

Proof You Can Make a Difference

PIA member Tim Russell of Connecticut decided to reach out to young people and their parents to encourage safe and responsible driving. In December, he conducted a Young Driver Seminar, using a blueprint provided as part of The PIA Partnership’s latest project, Closing the Gap – Growth & Profit .

Tim used the turn key outline to conduct this seminar. Hear him discuss it in this short video clip: Click image or link to watch video: player.vimeo.com/video/83847640

PIA National Vice President/Treasurer Rob Hansen — who represents the PIA National Executive Committee on the PIA Partnership — agrees. “The enthusiasm of our carrier partners for the important work of The PIA Partnership has produced ground-breaking research and the development of tools that provide at-the-desktop value to PIA agency principals and the carriers they represent.

PIA greatly appreciates the commitment of our carrier partners and we look forward to many more years of close collaboration.”

Learn more about Closing the Gap – Growth & Profit click here. n

Learn more about Closing the Gap – Growth

Profit click here. n

January 2014 | Main Street Industry News | www.pianeia.com | 10

&

Find your sweet spot for Growth & Profit ...

and

STEP ONE STEP TWO STEP THREE

HIT IT!

Take a snapshot of your agency with our calculators Identify areas of opportunity for growth Use our turnkey tools to get there

Closing the Gap for Growth and Profitability is adaptable and customizable from start to finish. By first using an agency’s own current results and projections, agency principals identify areas of opportunity. They’re then able to use the tools and approaches that are right for them and their agency. These new Partnership tools are designed to help agencies close the gap – to maximize growth and profit.

Available online at http://agency-growth-profit.com The PIA Partnership, originally established as the Company Council of Executive Officers (CCEO) in 1996, is a group of insurance companies that share resources and work closely with PIA National to conduct research and develop tools and resources designed to benefit professional independent insurance agents.

Current PIA Partnership companies include: Central Insurance Cos. Encompass Insurance Erie Insurance Hanover Insurance Group Harleysville Insurance Liberty Mutual Insurance MetLife Auto & Home

Motorists Insurance Group Progressive Insurance Selective Insurance Group State Auto Group The Hartford Travelers

Top Stories

PIA National

Another Refutation of the McKinsey Report PIA has again challenged various assertions in a report issued in November by the consulting firm McKinsey & Co.’s Financial Services Practice. The McKinsey report’s November headline proclaimed The End of an Era for the Local Insurance Agent.

After the article was published, National Underwriter published an extensive article — PIA on McKinsey Report Flawed Premise Wrapped in a Faulty Analysis with PIA agents around the country commenting on the report.

Now National Underwriter has produced another article titled Challenges and

Opportunities for Agents and Brokers in 2014. Here’s an excerpt: Earlier this year [2013], a McKinsey study claimed the public doesn’t want to buy insurance through independent agents. But “when you examine these ‘studies,’ you will often find they are not based on Ted Besesparis, Senior original research, they are Vice President, National Association of Professional just opinion articles from Insurance Agents consulting firms,” says Ted Besesparis, senior vice president, National Association of Professional Insurance Agents (PIA) and NU P&C advisory board member.

“This most recent competitive effort to disadvantage the agency system and capture its profits will fail. Despite the wishes of our direct writer competitors, it comes down to what customers want: Customers want agents.” n

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Top Stories

Annual Federal Legislative Summit The 2014 PIA Federal Legislative Summit (FLS) is a bit under three months away.

The FLS is a gathering of PIA members. In one day, these members descend on Capitol Hill and meet with their individual state congressional delegations. If you’ve never been, this might be the year you want to attend. Insurance issues grow exponentially each year. The PIA National Government Affairs Committee is currently determining the issues most important this year to PIA members.

No doubt a top issue will be federal verses state control of the regulation of insurance and what appears to be a push at federal regulation by the Federal Insurance Office (FIO). ObamaCare is a hot topic. Crop insurance is always toward the top of the FLS list.

The issues don’t stop there.

PIA's presence on Capitol Hill sends a strong message to Congress that agents won't sit on the sidelines while important legislation moves through Congress. And whether you know it or not, many federal decisions impact your ability to do business.

The 2014 PIA FLS begins on the evening of Wednesday, March 26. For more information and to register, visit the FLS webpage.

At the same time it conducts the FLS, PIA National gives out its annual awards.

Nominations are being accepted now through January 24, 2014.

The PIA National Professional Agent of the Year Award is the association’s highest national award of distinction. It is presented annually to one outstanding professional insurance agent who is a member of PIA. Nominations for this award are made by PIA state and regional affiliate associations.

The PIA National Customer Service Representative of the Year Award is given annually to an outstanding agency customer service representative working for a PIA member insurance agency. Nominations for this award are made by PIA members.

The CSR of the Year Award is sponsored for the seventh year in a row by The Hartford, a member carrier of The PIA Partnership as well as a Pinnacle Partner.

The PIA National Young Insurance Professional of the Year Award is given to an outstanding employee, owner or principal of a PIA member agency who is under the age of 40 or a member of a PIA affiliated Young Insurance Professionals association.

PIA members as well as PIA state and regional affiliates may make nominations for this award, which is sponsored for the ninth year in a row by Rough Notes magazine.

All three awards will be presented during a luncheon ceremony on March 28, 2014, in Arlington, Virginia, held in conjunction with the 2014 PIA Federal Legislative Summit and the 2014 PIA National Spring Governance Meetings. n

January 2014 | Main Street Industry News |www.pianeia.com| 13

Top Stories

Do’s & Don’ts

of reducing chances of an E&O claim

by Curtis M. Pearsall, CPCU, AIAF, CPIA, President – Pearsall Associates, Inc., and Special Consultant to the Utica National E&O Program

The duties of a producer or account executive/ customer service representative in an agency present tremendous challenges and responsibilities. It’s hard work and is not getting any easier. The knowledge expected would fill volumes and the workload probably seems like it never ends. These staff members deserve a tremendous amount of credit because without them, the agency would not be the same. While the degree to which these men and women perform this job professionally and ethically can greatly determine the agency’s success, it can heavily determine the agency’s errors and omissions risk, too.

Gaining Knowledge

Both producers and account executives must have a strong technical knowledge of the industry. Customers and prospects rely on them for this knowledge to ensure their assets are properly protected. To meet this challenge, a commitment to knowing the various classes and lines of businesses, and the uniqueness of each, is required. Because there is so much to learn in the insurance business, there will be times when a producer and account

executive does not possess the necessary knowledge. How these instances are handled and knowing where to find the information are vital. Bluffing one’s way through the answer is not recommended. This might work once in a while, yet since there is a very good chance the customer or prospect is documenting the conversation, it’s only a matter of time before it catches up with the agency staffer.

A great tool for producers and account executives is an exposure analysis checklist.

These checklists provide tremendous detail on more than 650 classes. For a producer, this is an ideal resource for knowing the prospect or client. Before visiting a jewelry store prospect, for example, the producer should take the time to educate himself or herself on a jewelry store’s exposures. For account executives, these checklists are also a solid way to improve their knowledge of various lines or classes of business.

Sales Skills and More

Yet having the knowledge and knowing where to get it are only parts of the solution. The formula for success also includes the need for sales skills. Having knowledge with no sales skills – or sales skills without knowledge – can be extremely dangerous for the agency from an E&O perspective. Without a doubt, the sales process doesn’t end when the sale is made. How producers and account executives conduct themselves during the sales process — pre-sale, sale and post-sale – will likely determine whether they are successful and to what degree they are an E&O risk.

When interacting with the client, in most states, an insurance producer, including account executives, has a common law duty to obtain

January 2014 | Main Street Industry News | www.pianeia.com | 14

Top Stories

the coverage the client specifically requests within a reasonable time or inform the client of the inability to do so. Thus, it is key to listen for what the customer or prospect is asking. Not providing what the customer requested has been a root cause of many E&O claims.

The words or phrases used to promote your agency and abilities are also important for avoiding an E&O claim. Telling customers and prospects you are an “expert” or that “at our agency, we make sure that you are properly covered” sound impressive. However, while the belief may be that the ability to be successful is enhanced, it can also lead to the producer and the agency being held to a greater degree of liability should a problem develop. Choose the words and phrases used verbally or in print carefully.

One word to avoid is “recommend.” It’s not as harmless as it might sound. For example, say the agency recommends that the client secures a $1 million umbrella. If the client ultimately has a loss well in excess of the $1 million, the agency could face an E&O claim for “recommending” a limit that was insufficient for the loss suffered.

The best approach is to offer coverage options and limit options for each of those coverages, and then let the customer make the decision.

Don’t make it for them!

Document and Review

In all of the various interactions, whether with the prospect or the markets you are using, is the need for prompt and professional documentation. Reinforce that this need for documentation applies to producers and account executives. While the “old school” approach of documenting the discussion in the file or agency management system may be sufficient at times, there will be situations where the documentation should also involve a note to the customer or prospect detailing the essence of the conversation. The goal here is to avoid any misunderstandings before a claim occurs. If a problem develops, this documentation – or lack of – will greatly

determine the direction of the E&O claim.

Documentation is not an option; it is mandatory.

It must also be prompt and professional.

Does the customer always buy all of the coverages noted in the proposal? No. Both producers and account executives should get the customer’s sign off on the coverages/limits they will not be securing.

After receiving the order, it is crucial to review the policies upon receipt of them to ensure they reflect what was ordered. The producer and account executive should be involved in this process to ensure the coverage is what the customer requested. In all but a few states, the client has a duty to read his or her policy. Therefore, it is strongly suggested to include a cover letter with the policies advising the customer to review the policies and contact the agency if there are any questions or any of the policies need correction.

If the producer is delivering the policy, include the cover letter with the policies and bring the letter to the customer’s attention.

In all likelihood, the marketplace has prompted accounts to be remarketed on renewal to other carriers in your office, so bring to the customer’s attention any deficiencies or coverages being “given up” by moving the account to another carrier. Document these discussions. This also applies if you are moving the account from the standard marketplace to the E&S marketplace.

Oftentimes, carriers will change their guidelines.

Agency staff must be aware of these guidelines and to adhere to them. Overstepping the carrier’s binding guidelines is a common reason carriers are increasingly suing their agents.

Going A Long Way

Being a producer or account executive requires tremendous knowledge, professionalism and attention to detail. This will go a long way to ensuring success – and ensuring you are not an E&O nightmare waiting to happen. n

January 2014 | Main Street Industry News |www.pianeia.com| 15

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Reform the Flood Reform Battle Rages Bills in the U.S. Senate and House want to reform the flood insurance reforming BiggerWaters Act. The legislation’s critics say enacting the increases in the cost of flood insurance in the National Flood Insurance Program (NFIP) in order to bring the price of insurance in line with actuarial rates works on paper say but not in real life.

SmarterSafer.org — a group of businesses, taxpayer organizations and environmental groups — call that logic poppycock and say the harms are exaggerated. Instead of stopping the legislation and waiting four years for a study and all, Congress ought to instruct the NFIP to do means-testing to see who really needs relief and who doesn’t.

Group spokesman Jimi Grande of the National Association of Mutual Insurance Companies (NAMIC) says the delay is really engineered to help wealthy property owners. “The old adage of Congress is that it does two things well: they do nothing at all or they overreact, and that is what we are seeing with this legislation that would essentially through a very clever disguise eliminate nearly all the reform that was put into place when what they ought to be doing is fitting reform to the people that are experiencing large increases in a means-tested way,” Grande said.

one should be thrown out of their homes because they can’t afford their coverage but a blanket delay is not necessary.”

Like Grande, Lehman thinks the premium subsidies help the rich more than the poor Jimi Grande of the National and that help Association of Mutual Insurance comes at the Companies (NAMIC) expense of taxpayers. “The response that has motivated a push for a delay is based upon some legitimate concerns about affordability but it should be put in some perspective.”

The group points to a Government Accountability Office (GAO) study that says 65% of the subsidized policies are in counties where some of the nation’s richest people live or have second homes and those homes are in the top 30% of the nation’s home values.

The same study shows just 9% of the subsidized properties are in counties at the bottom 30% in home values. And the group says the wealthiest counties file 3.5 times more claims than the poor counties and get $1 billion more in payments when claims are filed.

He agrees some may be hurt by BiggertWaters. Grande said 80% of policyholders pay cost-based rates. Close to 1.1 million out of five-million policies are subsidized. “There are horrible, sad stories out there of people who are facing increases that nobody would say are fair and justifiable but that is not replicable across all policyholders of NFIP,” he added.

SmarterSafer.org member Taxpayers for Common Sense spokesman Steve Ellis said delaying the legislation is just going to add to the already staggering $25 billion the NFIP is in debt. He pointed to a Congressional Budget Office (CBO) study that says delaying the reforms will cut $1.2 billion from NFIP revenues.

Another SmarterSafer.org member is Ray Lehman of R Street Institute. He said, “No

“The Congressional Budget Office has put a number on what we’ve known for months:

January 2014 | Main Street Industry News | www.pianeia.com | 16

Top Stories delaying badly needed flood insurance reforms will exacerbate the shaky finances of the National Flood Insurance Program and push it even closer to the brink of insolvency.

The CBO score is just another reason we need to abandon this idea of delaying the reforms and instead focus on modifying them to ensure that we move towards truly sustainable ways to bolster the flood program,” a group statement said.

In the end Grande says of Congress, “They will do bad things for shortsighted politics.”

The Senate bill has 28 sponsors. A bill in the House is pushing for delay and now a second bill has been introduced

by Rep. Tom Marino of Pennsylvania who would repeal all except the part that reauthorized the NFIP through September 30, 2017.

It is unsure now exactly when the Senate and House bills will be voted upon. n

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Top Stories

ObamaCare Insurers & ObamaCare Payments

It’s anybody’s guess when someone signs up for health insurance on HealthCare.gov whether a payment is being made to the insurer picked to provide insurance. Sometimes the consumer isn’t paying. At other times the exchange’s payment system isn’t getting the money to the insurer.

It’s a real mess.

Insurers have — at President Obama’s request — given people more time to pay their initial payment.

• WellPoint is giving consumers until January 15th to pay. That’s a five-day longer extension than originally planned.

• Health Care Service Corporation — who runs Blue Cross plans in Texas, Illinois and three other states — said it’s going to extend the deadline to January 31st.

• Kaiser is extending the deadline to January 15th in its eight states.

• The state run exchanges in California, Oregon and Washington are extending the deadline through January 15.

• Humana will let people go through the end of the month.

Bob Laszewski — who is a consultant for the industry — thinks about 50% of premiums have been paid so far. And he says it’s really not that bad. “But that sounds worse than it is given that about half the federal sign ups happened since early to mid December, and they are in various stages of being processed.”

And he praised the work carriers have done to make ObamaCare work. “Carriers are doing everything they can to get people enrolled.” n

January 2014 | Main Street Industry News | www.pianeia.com | 18

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By the Numbers

That’s their experience; they say ’I can’t afford health insurance,’” she said.

Enroll America is keeping tabs of those who aren’t signing up for the Affordable Care Act as required by law. It has ties to the White House and promises to make a stronger effort to get people to visit the government’s HealthCare.gov and sign up.

Meanwhile, the U.S. House of Representatives is tired of not getting enrollment numbers from the White House. The House wants to know who is signing up and who is not and who is actually insured once they sign up. So it passed a bill requiring a weekly report on ObamaCare from the Obama administration.

The Uninsured & the House

To do so, Enroll America is going to hire more people.

A surprising 33 Democrats in the House broke ranks and voted for the bill.

The group found that 68% of those without insurance have yet to even go to HealthCare.gov or to one of the websites operated by the states. At least those state websites that are actually working.

Here’s what the House wants: A weekly report on the number of visits to HealthCare.gov. Those that applied for insurance by zip code

Enroll America says most of those they talk to say they can’t afford insurance but don’t realize that there are subsidies to help them afford the purchase. So it has increased its workforce by 30% — or 58 people — and they are tasked with education duties said Tresa Undem who is an Enroll America Pollster.

“One of the biggest barriers, bigger than any technical problem, is people believe they won’t be able to get affordable insurance. That’s their history.

Aetna CEO on

ObamaCare & Health Care Aetna CEO Mark Bertolini recently let it all hang out about the Affordable Care Act (ACA) and about rising medical costs. He wasn’t positive about either.

On Bloomberg Television, Bertolini said we need to switch to a fundamentally different system for health care delivery — one that pays for the quality of care and not the quantity. “Our health-care costs are not under control right now. We really need to look at how health care is delivered and how we pay for it. Today, we pay for each piece of work done and so we get a lot of pieces of work done.”

Hospital, doctor and drug costs rose 3.7% in 2012.

That’s about half what they were rising per year before the 2008 recession. In praise of ObamaCare, Bertolini said we — Americans — are gaining more control and

The bill has zero chance of passing the Senate.

House Speaker John Boehner said, “We know the president's health care law is driving up costs for middle-class families, making it harder for small businesses to hire, and hurting the economy — but there's still a lot we don't know.”

Boehner says the White House is not providing a clear picture of where enrollment stands. n

responsibility over our medical bills especially since many of us are now paying 40% of our medical costs through premiums and deductibles.

That’s what’s good about ObamaCare said Bertolini.

What’s bad is the numbers way off from what were promised. The 7-million number bandied about by some in the administration has not materialized. He told CNBC that the president and his administration have failed to entice the young and uninsured to sign-up.

Bertolini said his firm may be forced to pull out of the exchanges because the rate Aetna will have to charge for insurance will be too high. “Are they going to be double-digit or are we going to get beat up because they’re double-digit or are we just going to have to pull out of the program? Those questions can’t be answered until we see the population we have today.

And we really don’t have a good view on that.”

He said only 11% of those signing up were formally uninsured. That’s not enough. n

January 2014 | Main Street Industry News |www.pianeia.com| 19

Top Stories

Congress Negotiators

Close to Farm Bill Agreement The negotiations to give the nation a new farm bill have been difficult. In fact, by the time you read this a final deal may already have been drawn up. Hang-ups have been frequent but the current conflict is between House Speaker John Boehner and Minnesota Democrat Rep. Collin Peterson over milk production quotas and whether production should be cut if prices fall below a certain level.

Other House members think the two can come up with a compromise. That will be the deal that solidifies the final bill.

Once that’s done, experts are hoping Congress can get the job done by the end of January.

House Speaker John Boehner

If they don’t, Agriculture Secretary Tom Vilsack said the more than one-year late deal could lead to double milk prices. “If we have to institute permanent law, that’s absolutely going to create a lot of chaos in the market. It’s going to create shortages in the grocery store and it’s going to create higher prices.”

Another of the hang-ups has been food stamps. Negotiators in the House and Senate are said to have agreed to $8 billion in cuts over 10-years. If so, that’s quite a drop from the $39 billion in the original bill passed by the House. The Senate agreed to $4.5 billion over 10-years.

On another topic, Tim Hoffman who is a USDA Risk Management Agency official told the American Farm Bureau Federation’s annual convention that the federal crop insurance program will expand in 2014.

He said the USDA will look at production history enhancements and other improvements to accomplish the expansion. More than 295 million acres of crops were insured in 2013 and the losses for that acreage nearly tripled from $4.6 billion in 2012 to $13.2 billion in 2013.

January 2014 | Main Street Industry News | www.pianeia.com | 20

Minnesota Democrat Rep. Collin Peterson

Have u heard the latest about ACUITY ?

YES! Every1 is talking about them : )

See what they’re saying at: www.acuity.com

For All That Matters

facebook.com/acuitywow

PIA NE IA Events

Upcoming

Events Calendar 2014 For information and to register Click Here or call (402) 392-1611.

Date

Event

State

Time

January 13, 2014

Business Auto Coverages

IA

Webinar: 12:00PM - 3:00PM

January 14, 2014

Business Income - How Much is Enough?

IA

Webinar: 10:00AM - 12:00PM

January 15, 2014

Waivers of Subrogation/Indemnity/Certificates

IA

Webinar: 8:00AM - 11:00AM

January 16, 2014

National Health Care Reform

IA

Webinar: 12:00PM - 3:00PM

January 24, 2014

Seven Ways to get Sued and How to Avoid Them

NE

Webinar: 10:00AM - 12:00PM

January 29, 2014

It's Personal: Home and Auto Exposures your Insured Won't Tell You

NE/IA

Webinar: 12:00PM - 3:00PM

January 30, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 12:00PM - 3:00PM

February 3, 2014

National Health Care Reform

NE/IA

Webinar: 8:00AM - 11:00AM

February 10, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 8:00AM - 11:00AM

February 10, 2014

BIP(idy), BOP(idy), Boo(ze): Turning 3 Mundane Coverages into Magic

NE

Webinar: 12:00PM - 3:00PM

February 11, 2014

CPSR: Commercial Property

NE

Dusters/Columbus

February 12, 2014

Changes to the Homeowners Program

IA

Webinar: 8:00AM - 10:00AM

February 13, 2014

CISR: Commercial Casualty 1

Des Moines

Hilton Garden Inn Des Moines/Urbandale

February 18, 2014

CYBERTECH- Recognizing and Insuring Electronic Risk

NE

Webinar: 8:00AM - 11:00AM

March 6, 2014

CISR: Commercial Casualty 2

Davenport Saint Ambrose University

March 7, 2014

National Health Care Reform

NE/IA

Webinar: 12:00PM - 3:00PM

March 20, 2014

Waivers of Subrogation/Indemnity/Certificates

NE/IA

Webinar: 12:00PM - 3:00PM

January 2014 | Main Street Industry News | www.pianeia.com | 22

PIA NE IA Events

March 20, 2014

CISR: Insuring Commercial Property

Marion

Kirkwood Training Center

March 24, 2014

It's Personal: Home and Auto Exposures your Insured Won't Tell You

NE/IA

Webinar: 8:00AM - 11:00AM

March 25, 2014

Business Income - How Much is Enough?

NE/IA

Webinar: 10:00AM - 12:00PM

March 26, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 8:00AM - 11:00AM

April 3, 2014

Changes to the Homeowners Program

Iowa

Webinar: 10:00AM - 12:00PM

April 9, 2014

CISR: Agency Operations

Des Moines

Hilton Garden Inn Des Moines/Urbandale

April 9, 2014

Seven Ways to get Sued and How to Avoid Them

Nebraska

Webinar: 12:00PM - 3:00PM

April 10, 2014

CPIA 1: Position for Success

Omaha

Omaha Marriott Hotel

April 14, 2014

CYBERTECH- Recognizing and Insuring Electronic Risk

NE/IA

Webinar: 8:00AM - 11:00AM

April 15, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 8:00AM - 11:00AM

April 16, 2014

Business Auto Coverages

IA

Webinar: 8:00AM - 11:00AM

April 16, 2014

Patches for the Imperfect Policy - Home, Work & Auto Edition

IA

Webinar: 12:00PM - 3:00PM

April 22, 2014

BIP(idy), BOP(idy), Boo(ze): Turning 3 Mundane Coverages into Magic

NE/IA

Webinar: 8:00AM - 11:00AM

April 23, 2014

National Health Care Reform

NE/IA

Webinar: 8:00AM - 11:00AM

April 29, 2014

CPSR: Systems, Operations & Procedures

Kearney

Holiday Inn Express

May 6, 2014

CISR: William T. Hold: Advanced Learning Seminar

Marion

Kirkwood Training Center

May 7, 2014

CISR: Personal Lines Miscellaneous

Des Moines

Hilton Garden Inn Des Moines/Urbandale

May 8, 2014

CPIA 1: Position for Success

Des Moines

Hilton Garden Inn Des Moines/Urbandale

May 12, 2014

E&O and the Legal & Ethical Duties of Agents/ Brokers

NE

Webinar: 8:00AM - 11:00AM

May 15, 2014

Waivers of Subrogation/Indemnity/Certificates

NE/IA

Webinar: 8:00AM - 11:00AM

May 19, 2014

Ethics for Insurance Professionals

NE/IA

Webinar: 12:00PM - 3:00PM

May 20, 2014

National Health Care Reform

NE/IA

Webinar: 12:00PM - 3:00PM

January 2014 | Main Street Industry News |www.pianeia.com| 23

PIA NE IA Events

May 21, 2014

CISR: Insuring Commercial Property

Davenport Saint Ambrose University

May 21, 2014

Social Networking: OMG or E&O?

NE/IA

Webinar: 12:00PM - 3:00PM

May 27, 2014

Business Income - How Much is Enough?

NE/IA

Webinar: 10:00AM - 12:00PM

May 29, 2014

It's Personal: Home and Auto Exposures your Insured Won't Tell You

NE/IA

Webinar: 8:00AM - 11:00AM

June 3, 2014

CPIA 2: Implement for Success

Omaha

Omaha Marriott Hotel

June 12, 2014

CISR: Insuring Commercial Property

West Des Moines

LaMair - Mulock Condon Insurance (LMC)

June 26, 2014

CISR: Agency Operations

Marion

Kirkwood Training Center

July 10, 2014

CISR: Insuring Personal Auto Exposures

Des Moines

Hilton Garden Inn Des Moines/Urbandale

July 17, 2014

CISR: Personal Lines Miscellaneous

Davenport Saint Ambrose University

July 22, 2014

CPSR: Residential Property

Columbus

Dusters

August 6, 2014

CISR: Commercial Casualty 2

Marion

Kirkwood Training Center

August 12, 2014

CPIA 2: Implement for Success

Des Moines

Hilton Garden Inn Des Moines/Urbandale

August 13, 2014

CPIA 3: Sustain Success

Omaha

Omaha Marriott Hotel

August 21, 2014

CISR: William T. Hold: Advanced Learning Seminar

Des Moines

Hilton Garden Inn Des Moines/Urbandale

September 10, 2014

CISR: Insuring Personal Residential Property

Des Moines

Hilton Garden Inn Des Moines/Urbandale

September 24, 2014

CISR: Agency Operations

Davenport Saint Ambrose University

September 25, 2014

CISR: Personal Lines Miscellaneous

Marion

Kirkwood Training Center

October 9, 2014

CISR: Commercial Casualty 2

Des Moines

Hilton Garden Inn Des Moines/Urbandale

October 23, 2014

CISR: Dynamics of Service

Marion

Kirkwood Training Center

October 29, 2014

CISR: Insuring Personal Residential Property

Davenport Saint Ambrose University

November 5, 2014

CISR: Insuring Commercial Property

West Des Moines

LaMair - Mulock Condon Insurance (LMC)

November 6, 2014

CISR: Commercial Casualty 1

Marion

Kirkwood Training Center

November 11, 2014

CPIA 3: Sustain Success

Des Moines

Hilton Garden Inn Des Moines/Urbandale

January 2014 | Main Street Industry News | www.pianeia.com | 24

PIA NE IA Events

November 18, 2014

CPSR: Commercial Casualty

Omaha

Omaha Marriott Hotel

Apr 21 - Jun 13, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Apr 21 - Jun 6, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Apr 9 - 11, 2014

CIC: Personal Lines Institute

Lincoln

Holiday Inn Lincoln Downtown

Aug 18 - Oct 10, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Aug 18 - Oct 3, 2014

MERG: New Agency Employee Orientation

Online

Online Course

February 17 - April 11, 2014

MERG: Commercial Lines Coverage Basics

NE

Online Course

February 17 - April 4, 2014

MERG: New Agency Employee Orientation

NE

Online Course

February 17 - March 28, 2014

MERG: Delivering Quality Service (to the Customer and the Employer)

NE

Online Course

February 19-21, 2014

CIC: Commercial Property Institute

NE

Omaha Marriott Hotel

January 20 - February 28, 2014

MERG: Personal Lines Coverage Basics

NE

Online Course

January 20 - March 7, 2014

MERG: New Agency Employee Orientation

NE

Online Course

Jul 21 - Aug 29, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Jul 21 - Sep 5, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Jul 30 - Aug 1, 2014

CIC: Personal Lines Institute

West Des Moines

Holiday Inn Hotel & Suites

Jul 9 - 11, 2014

CIC: Commercial Casualty Institute

Omaha

Omaha Marriott Hotel

Jun 16 - Aug 1, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Jun 16 - Aug 8, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Jun 16 - Jul 25, 2014

MERG: Delivering Quality Service (to the Customer and the Employer)

Online

Online Course

Jun 18 - 20, 2014

CIC: Commercial Property Institute

Cedar Rapids

DoubleTree Hilton

Mar 17 - Apr 25, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Mar 17 - May 2, 2014

MERG: New Agency Employee Orientation

Online

Online Course

March 12 - 14, 2014

CIC: Agency Management Institute

IA

Holiday Inn Hotel & Suites

May 19 - Jul 4, 2014

MERG: New Agency Employee Orientation

Online

Online Course

May 19 - Jun 27, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

January 2014 | Main Street Industry News |www.pianeia.com| 25

PIA NE IA Events

Nov 12 - 14, 2014

CIC: Life & Health Institute

West Des Moines

Holiday Inn Hotel & Suites

Nov 17 - Dec 26, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Nov 17 - Jan 2, 2015

MERG: New Agency Employee Orientation

Online

Online Course

Oct 15 - 17, 2014

CIC: Agency Management Institute

Omaha

Omaha Marriott Hotel

Oct 20 - Dec 12, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

Oct 20 - Dec 5, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Oct 20 - Nov 28, 2014

MERG: Delivering Quality Service (to the Customer and the Employer)

Online

Online Course

Sep 10 - 12, 2014

CIC: Life & Health Institute

Lincoln

Holiday Inn Lincoln Downtown

Sep 15 - Oct 24, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

Sep 17 - 19, 2014

CIC: Commercial Casualty Institute

Cedar Rapids

DoubleTree Hilton

Sep 5 - Oct 31, 2014

MERG: New Agency Employee Orientation

Online

Online Course

Advertise

Post a classified ad!

Main Street Industry News format is done in an ultra high quality style that makes your ad stand out.

We are one of the most popular and best-read insurance news publications in Nebraska and Iowa.

Main Street Industry News is issued electronically to over 8,000 Professional Insurance Agents throughout NE & IA, PIA state and national associations and other organizations that provide products or services to insurance agencies.

To advertise contact PIA of Nebraska and Iowa – Executive Director, Cathy Klasi at (402) 392-1611.

The Governor’s Mansion 1425 H Street, Lincoln NE 68508 .

When: Registration: Lunch: Cost:

February 26, 2014 11:15 am 12:00-1:00pm $25.00

***Sponsor your Senator*** Contact your State Senator and encourage them to attend.

Pay for their lunch and reserve a seat at their table!

Name of Senator you would like to Sponsor

Why Should You Attend??

State legislative activity has a great effect on you as a small businessperson and an independent insurance agent.

Yes, PIA has a lobbyist and yes, our PAC donates to political campaigns‌but NOTHING is more influential to a legislator than a visit with a constituent that participates effectively in the political process.

Help them understand the role of the Professional Insurance Agent!!

***Upon Your Arrival: Between 11:30am & 11:55am, we will be conducting an in-depth issue briefing and Q&A period on upcoming bills in the legislature that are of importance to independent insurance agents.

Armed with this information, you will be able to explain how the issues impact you, your business, and your employees from an agent's perspective to your Senator!!

Name(s): Agency/Company: Address: City: Phone: Amount: $

Zip: E-mail: ($25 Per Person, $20 for your Senator)

Check enclosed payable to Professional Insurance Agents of NE IA Visa MasterCard Credit Card #

Send to: PIA of NE IA: 920 S 107 Ave, Ste 305, Omaha NE 68114; 402-392-1611 Register online at www.pianeia.com

Exp: