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INSIDE PIA National Federal Legislative Summit »7 Standard & Poor’s Predicts TRIA Renewal »18 Flood Map Rigging for the Rich? »20 Drinking & Drugging on the Job »24 WellPoint — ObamaCare Double-Digit Rate Raise »27 Register today for the Agent Convention! »28 2014 Agent Convention

March 2014 | Published Monthly

Did you know that on March 26-27, 2014, PIA members from across the country came to Washington, DC to meet with their Members of Congress as part of PIA’s annual Federal Legislative Summit (www.piafls.com)? These agents know that laws made in Congress can have devastating effects on their businesses. They also know that PIA has the tools, information and support materials to arm a grassroots movement. Here are some of the important issues these agents were fighting for: • Health Care Reform • National Flood Insurance Program • State Regulation of Insurance • Terrorism Risk Insurance • Crop Insurance To learn how you can become a PIA Grassroots Action Leader, visit www.piagrassroots.com. PIA will continue to fight for the best interests of professional insurance agents. 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 PIA National Federal Legislative Summit | 7 The PIA National Annual Federal Legislative Summit has finished. Update — Oso, Washington Mudslide | 17 It’s an ongoing story. At the time this is written 21 people have been confirmed dead. Standard & Poor’s Predicts TRIA Renewal | 18 A recent analysis by Standard & Poor’s predicts Congress will reauthorize the Terrorism Risk Insurance Act (TRIA). Insurance 2013 Finances — It wasn’t a Bad Year | 18 Fitch Ratings said there are 48 publicly traded P&C insurance companies. Flood Map Rigging for the Rich? | 20 NBC News is reporting that the FBI is looking into charges that some employees at the Federal Emergency Management Agency (FEMA) made changes in flood maps to reduce the cost of flood insurance for high rent and high-priced waterfront properties in high risk flood zones. Farm Bill Critics Bash Bill’s Insurance Subsidies | 21 Most farmers won’t see the benefits of the recently passed farm bill until 2015. Grain farmers — however — will. A Positive — Insurance Customers View Insurance | 22 The New York think tank Ethisphere Institute has named Hartford Financial Services Group the World’s Most Ethical Company. Drinking & Drugging on the Job | 24 One in 10 — or 10% — of small business owners or managers say they had at least one person show up for work while under the influence of a controlled substance.

New ObamaCare Rule — Navigators Do Not Need E&O | 25 The Centers for Medicare & Medicaid Services (CMS) of the Department of Health and Human Services (HHS) wants comments on 279-pages of proposed rules it released on March 14th covering many topics related to the Affordable Care Act (ACA). ObamaCare Deadline Extended — Sort of | 26 Those who’ve kept up with the unfolding unrolling of the Affordable Care Act are not surprised that the Obama administration has extended the March 31st deadline to sign up for the health insurance for those unable to finish registering by the end of the day. ObamaCare — Who Signed Up? | 27 The Obama administration claims that the Affordable Care Act now has 7-million enrollees. WellPoint — ObamaCare Double-Digit Rate Raise | 27 It’s going to be a couple of months before we know just how much insurers are going to raise health insurance rates.

PIA NE IA Events PIA National Federal Legislative Summit | 7 Branch Out With PIA - Agent Convention | 28 Upcoming Events Calendar 2014 | 30

Advertisements Wanted, For Sale and Opportunities | 33 Contact us to place a classified ad.

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

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

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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Professional Insurance Agents of NE IA

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PIA NE IA Events

Annual Federal Legislative Summit

PIA NE IA Events

The PIA National Annual Federal Legislative Summit has finished. A couple of hundred PIA member independent insurance agents went to Capitol Hill to talk to members of Congress and their staffs about issues critical to the insurance industry and to their businesses. The PIA Western Alliance sent a delegation and they represented the states of Alaska, Arizona, California, Idaho, Montana, Nevada, New Mexico, Oregon and Washington. What was a concern to insurance and to your business five-years ago has grown exponentially. The list of issues — including federal intervention into the industry — has also expanded and are more important to you today than they were five-years ago. That’s why it is important that — even though you may not have attended — that you respond. At the end of this article we’ll show you how you can help. Tim Russell who chairs the PIA National Government Affairs committee put the legislative summit in perspective from an association point of view. “PIA’s annual legislative summit is an important part of our year-round program of legislative advocacy. There is no better way to forge and maintain relationship with lawmakers than to do it up close and personal. It gives lawmakers the opportunity to meet with Main Street insurance agents from their districts who do business with real people, in the real world.” PIA National Director of Federal Affairs Jon Gentile said the list of issues begins with the continuing threat of federal encroachment into insurance regulation and — ultimately — to your business. “The past year has seen a renewed push to revive previous failed efforts aimed at bringing about the federal regulation of insurance. The recent report by the Federal Insurance Office attempts to obscure the fact that there is a clear choice between state insurance regulation and federal intrusion,” he said.

Gentile said the PIA wants to make sure Congress understands why states regulate insurance. “Our members will be telling lawmakers in no uncertain terms that PIA supports our state-based system of insurance regulation and opposes attempts to advance federal regulation of insurance.” Here are the issues the PIA member agents shared with the members of Congress from their states and regions.

Insurance Regulation • PIA supports a modernized national system of state-based insurance regulation. • PIA opposes any effort to move the Federal Insurance Office outside of its congressional mandate, which makes it clear that it is not a regulator of the business of insurance. • PIA opposes preemption by a federal insurance regulator or federal preemption of state insurance oversight, whether optional or mandatory.

National Flood Insurance Program • PIA supports the continued implementation of Biggert-Waters along with a transition to riskbased rates that takes consumer affordability sufficiently into consideration. • PIA supports solutions to eliminate the program’s debt and put the program on the path of fiscal stability. • PIA opposes outright privatization of the National Flood Insurance Program while there is no, sustainable private market solution.

Producer Licensing • PIA supports efforts to achieve a modern, nationwide insurance producer licensing system utilizing model laws and regulations, such as the Producer Licensing Model Act (PLMA), and electronic facilitators, such as the National Insurance Producer Registry (NIPR). • PIA supports the National Association of Registered Agents and Brokers (NARAB II)

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

PIA NE IA Events narrowly targeted federal legislation, such as H.R. 1112 and S. 2342 in the last Congress, commonly known as NARAB II, which would facilitate reciprocity without creating a new federal insurance bureaucracy. • PIA supports the efforts of state organizations, such as the National Conference of Insurance Legislators (NCOIL) and the National Association of Insurance Commissioners (NAIC), to promote uniform state laws and regulations.

Crop Insurance • PIA supports just compensation for independent insurance agents, the key sales force for the FCIP. • PIA supports a seat for agents at the table during the SRA negotiations.

effort in designing a catastrophe plan which involves participation by states and local governments and emphasizes mitigation. • PIA supports the ability of insurers to price policies according to risk. • PIA opposes natural disaster legislation that combines new proposals with existing programs designed for other forms of catastrophic events, such as flood or terrorism insurance. • PIA supports increasing the availability and affordability of property insurance in catastrophe prone areas.

Tax & Regulatory Burdens on Small Business

• PIA supports the continued role of agents in the delivery of the crop insurance program.

• PIA supports a clear and simple tax code to reduce administrative burdens and regulatory compliance costs.

• PIA supports comprehensive enforcement of anti-rebating and control of business schemes.

• PIA supports reducing individual and corporate income tax rates for small businesses.

Health care Reform • PIA supports the role of independent agents and brokers in health care reform. • PIA supports legislation to ensure the just compensation of insurance agents (H.R. 2328 / S. 650). • PIA opposes allowing healthcare navigators to sell, solicit, or negotiate insurance without a proper license.

Terrorism Risk Insurance • PIA supports an extension of the Terrorism Risk Insurance Program Reauthorization Act. • PIA supports a Terrorism Risk Insurance Program (TRIP) that provides economic certainty and fills a private market void. • PIA supports a Terrorism Risk Insurance Program that allows for wide industry participation.

Natural Disaster Planning

• PIA opposes tax provisions and regulations that impede small business growth.

As mentioned earlier, though most of you did not attend the FLS, it is still possible — and very important — that you let your congressional delegation know how you feel about the issues just listed and others on your mind. The U.S. Senate members of your state and the U.S. Representative representing your district do want to hear from you. That cannot be stressed enough. They are not insurance experts. You are. They rely upon your expertise to make decisions on the insurance issues before them. n Find out how to reach your congressional delegation on these links: Senate Contact Information — CLICK HERE House Contact Information — CLICK HERE

• PIA supports a public-private collaborative March 2014 | Main Street Industry News |www.pianeia.com| 9

PIA NE IA Events

4377 – Congressman Smith

4372 – Congressman Terry

4369 – Senator Fischer

Congressional Visit 4362 – Senator Johanns

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

4388 – Congressman Fortenberry

PIA NE IA Events

Breakfast Briefing

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PIA NE IA Events

Opening Night

Membership Committee

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PIA NE IA Events

Awards Luncheon

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PIA NE IA Events

PIAPAC Dinner

Mark Suhr – Chariman’s Caucus $500 $1000 in PIAPAC Donations

Rick Sirek, Richie Clements and Tim Russell --- President’s Circle $1000 - $2499 in PIAPAC Donations

Robert Hansen, PIA National Vice President/ Treasurer --- President’s Circle $1000 - $2499 in PIAPAC Donations

Steve Becher ND/SD, Cathy Klasi NE/IA, Trina Cabellos KS, Jody Boudreaux LA, Greg Sather MN, Dennis Yocum VA/DC --- State Executives with PIAPAC Donations Over $100

President Amy Rademacher – Chariman’s Caucus $500 - $1000 in PIAPAC Donations

Not pictured from Nebraska – Donald Suhr - Chariman’s Caucus $500 - $1000 in PIAPAC Donations Cap Peterson – President’s Circle $1000 - $2499 in PIAPAC Donations

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

PIA NE IA Events

Crop Insurance Working Group Meeting

Crop Working Group

Jim Dobler, PIA Legislative Coordinator John Gentile, PIA National Director of Federal Affairs

PIA President Elect Joe Bob Atkins, Steve Becher PIA ND/SD Exec.

Brandon Willis, Administrator, Risk Management Agency, Chairman Crop Working Group Dan Weber and Julia Domagalski government affairs coordinator

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

Top Stories

Update Oso, Washington

Mudslide It’s an ongoing story. At the time this is written 21 people have been confirmed dead. Of the 21, six have not been identified. The list of missing is down from a couple of hundred to 30. By the time Weekly Industry News is published both lists will likely have changed. Conditions at the site are brutal. The debris field was once thought to be a mile. It has now been measured at 300 acres. A square mile is 640 acres. Along with trying to locate victims, workers are now engaged in finding and getting personal items back to survivors. While the search continues more and more people are turning to the big question. Why? The Seattle Times reports that a husband and wife team — Daniel and Lynne Miller — wrote a report on the hill in 1999 warning of the potential of a massive mud slide. The newspaper said the Millers claims it was sent to the U.S. Army Corps of Engineers. Daniel Miller also claims to have sent a similar report to the Washington Department of Ecology and the Tulalip Tribes in 1997 and said at the time the hill had the potential for a large catastrophic failure. “We’ve known it would happen at some point,” Daniel Miller told the newspaper. His criticism does not end there. Miller said he returned to the hill in 2006 just before a landslide

near there plugged a nearby river. He said he was shocked to see more homes being built. Snohomish County officials say they are not aware of either report. County Public Works Director Steve Thomsen said slides like this are almost impossible to predict. Meanwhile, most of those living on the hill were not insured with the kind of coverage that helps in such a disaster. Most insurance people already know that. Karl Newman is president of the NW Insurance Council. He explained what’s happening insurance wise to the rest of the world. In a comment to Insurance Business Newman said, “Landslides aren’t covered under standard home and business owner policies. The only policy we are aware of that covers landslide damage is difference in conditions (DIC) coverage, and most people don’t have it. Right now, what most insurers are doing is making themselves available and ready to talk to their insureds, but they are in a position where they can’t provide coverage. It’s such an absolutely heartbreaking circumstance for everyone.” DIC policies cover mudflow, earthquake and flood. How few have such insurance? In the entire state just 4,700 homes and businesses have a DIC policy. “That means far less than 1% have a policy like this.” Newman also added that many insurance agents may not be aware that DIC policies are available to people living in conditions similar to the victims of the slide. That means probably nobody living on that hill had that kind of policy. As noted earlier, Newman said, “Typically, even many insurance agents are not aware that this policy exists, or they don't take it seriously. We would encourage agents and brokers, in light of the tragedy, to take that extra step in really encouraging a home or business owner to consider difference in conditions coverage. Even if you don’t write it, at least refer them to an agent or broker who does,” Newman said. n

March 2014 | Main Street Industry News |www.pianeia.com| 17

Top Stories

M S I R O R R TE Standard & Poor’s Predicts TRIA Renewal A recent analysis by Standard & Poor’s predicts Congress will reauthorize the Terrorism Risk Insurance Act (TRIA). That said S&P cautions that the program could be significantly changed.

Insurance 2013 Finances It Wasn’t A Bad Year Fitch Ratings said there are 48 publicly traded P&C insurance companies. They stretch across five insurance subsectors. For them the yearend financial results for 2013 were outstanding. The ratings agency said aggregate operating earnings rose 30% in 2013 compared to 2012. Improved underwriting results because of lower catastrophe losses is the reason. Just seven of the 48 had lower year-over-year operating return on equity. Overall, the combined ratio of the 48 improved 5.2% to 93.3. Just four of the 48 saw a combined ratio over 100.

In the report, S&P notes that TRIA — which will expire at the end of 2014 — could be renewed with a higher insurance industry trigger for terrorism attacks, increased deductibles, a “mandate that insurers explicitly cover newer threats, such as terrorist cyber attacks,” or other requirements. The ratings firm remains “cautiously optimistic” that TRIA will be renewed but noted that “significant work remains to be done before any extension will be enacted.”

That’s the good news. The bad news? Fitch said that’s the peak — at least for the next few years. Things are expected to return to “normal” from this year on into the foreseeable future. “Pricing gains have slowed in primary lines and propertyreinsurance rates declined at the Jan. 1 renewal. An anticipated return to normalized catastrophe activity and diminishment of reserve releases suggests that 2014 underwriting margins will more likely decline.”

What It Means to Agents:

Commercial Diversified Insurers

PIA supports renewal of TRIA. We note as Congress moves forward on reauthorizing TRIA, it is important to keep the program at a point where all companies, small and large, have an opportunity to participate. An increase to cost 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. n

And with that the Fitch report looked at the five insurance subsectors and how they did in 2013. There are 13 in this category. The ratings firm said 12 of the 13 saw an improved profitability picture in 2013 compared to 2012. Tax problems caused White Mountains Insurance Group to be the one exception. For the group net earned premium rose 3.2% to $183.4 billion. What kept that figure from being larger is what Fitch says is a modest decline in earned premiums for AIG and The Hartford who are the group’s two biggest firms. Here’s the top-three in terms of net earned premium:

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

Top Stories

Farm Bill Critics Bash Bill’s Insurance Subsidies Most farmers won’t see the benefits of the recently passed farm bill until 2015. Grain farmers — however — will. They’ll have 2/3 of their insurance bill paid by the federal government.

The Congressional Budget Office (CBO) says the five-year bill saves $40 billion in payments to farmers over a decade. However, the CBO notes 80% of those savings — $33 billion — end up as enhanced crop insurance. Craig Cox of the Environmental Working Group goes a step farther. He said the farm bill is a waste of taxpayer money. “The crop insurance program survived essentially unscathed in this farm bill. This was the first farm bill where there was a lot of attention paid to trying to reform the crop insurance program. None of those reforms made it into the final bill.” Critics are critics. Insurers have a much different take says David Graves of the American Crop Insurance Association (ACIA). He said the new bill’s insurance direction is a good thing for taxpayers. “For the taxpayer, it eliminated direct payments and reduced some of the price support policies of the past in favor of expanding crop insurance, which is purchased by farmers on an individual basis. For crop insurance companies, the farm bill underscored the fact that crop insurance is the top risk management tool for America’s farmers and ranchers.”

Photo Credit: Some rights reserved by Rafael Sato

Criticism aimed at insurers says the federal government — or the taxpayer — is paying that bill while the insurance companies rake in underwriting profits. Agricultural economist Bruce Babcock of Iowa State University put it in perspective. He said the government gets even more generous next year. “I think taxpayers lost on that farm bill for sure. There was lots of money that could have been saved to reduce the deficit, but they chose not to.” He blames insurance lobbyists. “The industry lobbies heavily. It’s just rub my back, I’ll rub yours.”

This information comes from a Reuters story. It says the CBO is estimating the new law will add $3.3 billion a year to the already $9 billion a year crop insurance costs. Critics say because of a bill that encourages crop insurance claims, it’s going to be more like $5 billion. As an example the story shows this year’s government share of premium payments at 60% to 65% for acreage planted with corn, soybeans or wheat. The new bill ups it to 86%. Insurers say what critics don’t see is the added administrative costs. Annual payments to the 19 private insurers has also been capped at $1.3 billion — or an average of $68 million a year each. The ACIA’s Graves said that’s not even enough to meet insurer costs. n

March 2014 | Main Street Industry News |www.pianeia.com| 21

Top Stories

A Positive Insurance Customers View Insurance The New York think tank Ethisphere Institute has named Hartford Financial Services Group the World’s Most Ethical Company. Hartford EVP and general council Alan Kreczko told Business Insurance his company “strives to exemplify exceptional character in all that we do.”

It checks with 10,000 U.S. consumers and rates 268 firms across 19 industries. There is lots of good news for insurance within this year’s survey. The industry is ranked number six within the 19 industries when it comes to a positive customer service experience. Of the insurers checked, 14 have received positive ratings. These are the criteria used and upon which the survey questions are written: Functional: How well do experiences meet customers’ needs? Accessible: How easy is it for customers to do what they want to do? Emotional: How do customers feel about the experiences? Each company is scored on those three criteria and the Temkin Group then averages the results and produces a score. These are the percentage ratings of the insurance companies:

Photo Credit: Some rights reserved by .reid.

It’s the sixth time Hartford Financial Services has received the award. “Receiving this award for the sixth time demonstrates our continued commitment to upholding the highest level of ethics to our employees, customers, business partners, neighbors and investors.” How insurers are viewed by customers is critical to the success of the independent insurance agents of the PIA and for the companies themselves. The industry actually does fairly well. Here’s an example. The customer service research firm Temkin does an annual survey titled the Temkin Experience Ratings survey.

USAA

78%

State Farm

74%

GEICO

70%

Allstate

69%

The Hartford

69%

AAA

67%

Progressive

66%

Travelers

65%

Nationwide

63%

MetLife

63%

Liberty Mutual

63%

Farmers

61%

American Family

56%

21st Century

55%

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

Top Stories Here are the top companies in the Temkin customer experience ratings: RANK

COMPANY

INDUSTRY

T&R

H.E.B.

Groceries

88%

Trader Joe’s

Groceries

84%

Chick-fil-A

Fast Foods

83%

Publix

Groceries

83%

Aldi

Groceries

82%

Food Lion

Groceries

82%

Sonic Drive-In Fast Foods

82%

A Credit Union Banks

81%

Kroger

Groceries

81%

Sam’s Club

Retailers

81%

Starbucks

Fast Foods

81%

Here are the bottom companies in the ratings: RANK

COMPANY

INDUSTRY

T&R

268

Coventry Health Care

Health Plans

41%

267

Empire (BCBS)

Health Plans

42%

266

Highmark (BCBS)

Health Plans

44%

265

Medicaid

Health Plans

45%

264

US Cellular

Wireless Carrier

46%

260

Comcast

TV Service 47%

260

Comcast

Internet Service

47%

260

Motel 6

Hotels

47%

260

Super 8

Hotels

47%

258

Charter TV Service 48% Communications

Top Stories

Drinking & Drugging on the Job One in 10 or 10% — of small business owners or managers say they had at least one person show up for work while under the influence of a controlled substance. Or two. This from a study by Employers Holdings. Employers’ COO Stephen Festa said the most commonly abused substances are alcohol, marijuana or prescription painkillers or a combination of two or all three. “Business owners today are rightfully concerned about the use of illegal or judgment impairing substances in their workplaces. It’s a disturbing trend that we have seen developing over the past several years with the rise in prescription opioids and the increasing legalization of marijuana.” He said those under the influence pose a potential danger to themselves and everyone else around them. And apparently 75% of small business owners agree. Over half say over-the-counter pain medications are also potentially a problem. Here was the question posed in the Employers’ drug survey: In the past year has your business experienced an employee under the influence of any of the following substances on the job? Any

9.9%

None of These

89.6%

Alcohol

5.3%

Don’t Know

0.1%

Marijuana or Prescribed Pain Killer

5.1%

Refused to Answer

0.4%

An Illicit Narcotic

1.1%

Festa said the new — big — concern for employers is prescriptions. “To those of us in the workers compensation insurance industry, prescription opioid abuse is of particular concern. The Centers for Disease Control has reported that more people die from prescription painkillers than from heroin or cocaine. Opioid addiction has been linked to decreased worker productivity, as well as making workplaces less safe, prolonging disability claims, and increasing the risk of death from overdoses.” n Photo Credit: Some rights reserved by cabreraluengo.com

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

Top Stories

ObamaCare New ObamaCare Rule Navigators Do Not Need E&O The Centers for Medicare & Medicaid Services (CMS) of the Department of Health and Human Services (HHS) wants comments on 279-pages of proposed rules it released on March 14th covering many topics related to the Affordable Care Act (ACA). In the section of the rules discussing navigators, the Obama administration’s document says “A state or an exchange must not require that all navigators be agents or brokers or carry errors and omissions coverage.” It answers a big question the insurance community — including the PIA — has been asking for quite awhile. PIA has stated it is important for them to have errors and omissions insurance. Federal law requires that each community have at least one consumer-focused consumer group listed as a navigator. The rule goes on to say if navigators were to be required to carry E&O insurance, this would disqualify them from being considered a “community and consumerfocused nonprofit group.” The proposed rule is largely a directive to states, so they do not begin any sort of E&O requirement. Friday’s regulations also included a formal directive to the states preventing them from passing any laws requiring a navigator to refer a consumer to an agent or broker for any reason. The language says, “Non-federal laws

or regulations that require referrals to sources that are not required to provide impartial advice would, on their face, make it impossible for these assisters to comply with existing federal statutory and regulatory duties and standards.” As you might expect, PIA National will file comments in disagreement with certain of these proposed regulations during the 30-day comment period. Criticism — much of it scathing — was instant from the health insurance industry and those supporting the industry. Craig Hasday — who is the COO at the New York City benefits firm Frenkel Benefits — said not requiring navigators to have E&O insurance hurts the consumer. He sees many being confused after being given health insurance information from someone not trained in the insurance industry. “The best way to fix [exchange confusion] is to get the people who know what they’re doing to work with plans. The assisters and navigators … don’t have the perspective and the licensing and the E&O to give proper advice. They’re saying they don’t give advice and that’s absurd because people are going to give advice,” he said. He predicts after navigators thoroughly confuse the consumer they’ll take the natural logical step and go to an agent or broker. The agent or broker — illogically — will not be paid for taking

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

Top Stories the time to get the person into the proper plan. Health Agents for America calls the regulation on navigators another blow from the federal government to agents and brokers and the insurance community. It sent an email to its members saying, “Call your U.S. senators and U.S. representatives. CMS has gone too far.” Peter Marathas is a partner at the benefit advisory firm Proskauer Rose LLP. He agrees with the lobbying group that this really hurts the agent and broker industry. “Why even have in this federal law the whole concept of navigators? Why not find a way to invite a whole group of people who have been hard-working members of the industry for years, compared to hours. Why create a whole new niche industry?” Again we mention that PIA National will be sending a response from this association during the commentary period. PIA National has been very critical of the Obama administration’s decisions on navigators and on not depending upon insurance agents and brokers for health insurance advice. n

ObamaCare

Deadline Extended – Sort of E&O Those who’ve kept up with the unfolding unrolling of the Affordable Care Act are not surprised that the Obama administration has extended the March 31st deadline to sign up for the health insurance for those unable to finish registering by the end of the day. As long as they’ve tried to sign up by March 31st, they have until mid-April to complete the process. Health and Human Services’ spokeswoman Joanne Peters said if they’re online trying to register at the end of the day then “we won’t shut the door on them.” Here’s the deal. The government won’t question whether they were actually trying to get registered or not if they haven’t registered and

do get the job done by mid-April. That said, no one knows if there might be another extension then though it’s getting pretty tight for insurance companies who need to know the final numbers to set 2015 rates Another way out? If you have one of the 14-different “hardship exemptions” you don’t have to sign up at all. And the exemptions are almost as loosey goosey as the questions that won’t be asked as to whether someone was really trying to make the March 31 deadline. Or as health policy expert Bob Laszewski posted on his blog, “What individual mandate? It is looking more and more like the Obama administration will not enforce the individual mandate.” Putting it another way, with the dozen or so changes and delays, Senate Minority Leader Mitch McConnell said the law has become the “legal equivalent of swiss cheese.” Peters said on March 30th the federal government’s HealthCare.gov had 1.1 million visitors — the second most ever. The state exchanges had busy days, too. Washington’s Health Benefit Exchange enrolled 12,000 people last week. Add those to the growing number of registrants and the administration says it now has 6-million registered — close to the number the Congressional Budget Office (CBO) said it needs to hit a break even mark. Republicans disagree with the 6-million number and accuse the administration of fudging figures. At issue is the number who have actually paid the premium. If a premium isn’t paid then someone isn’t insured. The administration fired back that it’s impossible to know who has paid and who hasn’t until the backend of HealthCare.gov is built. “When we have accurate and reliable data regarding premium payments, we will make the information available,” Peters said. n

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Top Stories

WellPoint

ObamaCare

Who Signed Up?

The Obama administration claims that the Affordable Care Act now has 7-million enrollees. Some say that’s a wonder because President Obama has given dozens of exemptions and passes, and has decided to not implement huge chunks of the law. Many say the changes, delays and all are way outside his presidential powers. Late last week the president decided to extend the cutoff date to sign up for the Affordable Care Act for those who were trying to sign up before March 31st but couldn’t get the job done. They now have until mid-April and the administration will not quiz anyone on whether they were really still trying to sign up when the deadline passed. The questions bantered around now by critics are many. Who signed up? How many have paid? How many had insurance before but were kicked off their plans because of administration criteria? How many are actually the uninsured now getting insurance? The administration cannot — or some say will not — answer those questions. Estimates from some sources like McKinsey & Company, the Kaiser Family Foundation and others are that most who signed up for insurance are 35 and older. The 18 to 34-year olds needed to make the plan pay for at least part of itself are not signing up and it is not believed enough of them will to keep insurance rate increases down.

Double-Digit Rate Raise It’s going to be a couple of months before we know just how much insurers are going to raise health insurance rates. That they’ll go up is not a question. All experts agree that the enrollment of young people in the health insurance exchanges has not met expectations and it those enrollments that are designed to pay the higher costs of those that are older. WellPoint is the first insurer to have loose lips. In spite of Health and Human Services Secretary Kathleen Sebelius contending rates will rise but not as much as they would before the passage of the Affordable Care Act, WellPoint is already saying rates will be double-digit. This has taken a few experts by surprise. Stephen Zaharuk of Moody’s Investors Service said it appears the company is hedging its bets because of the many changes enacted in the law by the Obama administration. “The double-digit increase surprised me. If everything’s working according to plan, then the increases should be where the medical trend is, which should not be double-digit,” he said. The medical trend is the cost of health care in total — including inflation and patient utilization of services — which has grown 5% to 6% in the last couple of years. Zaharuk thinks it will go up to 8% to 9% this year. n

A recent report from McKinsey pegs the number of enrollees who were previously uninsured at 27%. The company found 75% have paid their premiums and thus are truly insured. n March 2014 | Main Street Industry News |www.pianeia.com| 27

Education Session and Achiever’s Luncheon Past President’s Breakfast – 7:00am

Everyone is welcome to join us to Honor Past Presidents! Education Day – Wednesday, June 4th Golf & Entertainment Day – Tuesday, June 3rd

The morning starts out with … Golf Outing at ArborLinks Golf Course: www.arborlinks.com ArborLinks Golf Course

6038 H Road, Nebraska City, NE 68410 (866) 272-7453 ArborLinks is an exclusive private destination golf club featuring an 18-hole championship course designed by Arnold Palmer. Native grasses have been used to define and separate the golf holes, while bunkers and other hazards have been sculpted to create an old world look and feel. Greens and fairways are expansive, providing unequaled challenges and stimulated creative strategy, while remaining simple and natural. Throughout its history, ArborLinks has been hailed as one of the best courses in Nebraska.

Registration begins at 10:00 am Shot Gun Start: 11:00 am Lunch/Beverages on your own.

The evening brings … Trade Fair & Evening Entertainment at Lied Lodge & Conference Center Lied Lodge & Conference Center – Nebraska City 2700 Sylvan Road, Nebraska City, NE 68410 (402) 873-8733

Trade Fair begins at 5:30 pm **Golf Prizes will be awarded at 6:00 pm

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 Entertainment begins at 7:00 pm

Coach Tim Miles, the only active coach who has taken teams to the postseason at the Division I, Division II and NAIA ranks, overachieved with the Huskers in his first season at Nebraska. He took a team that returned one starter and two of its top nine scorers, and improved the Huskers’ win total from 12 to 15 despite facing one of the nation’s toughest schedules, including a school-record 10 ranked teams.

Registration begins at 8:00 am ** 3 P/C hrs applied for NE & IA

How to Turn Your Technical Knowledge into Dollars! – 8:30 am

Learn valuable tips on creating risk profiles, consumer expectations, account development and retention, and interpersonal communication skills in an interactive and fun atmosphere. Agency sales managers, account managers, producers, internal support staff and company marketing personnel all benefit greatly from this program.

Becky Lathrop, CIC, CPIA – Lake Worth, FL Becky Lathrop is the Vice President of Optimum Performance Solutions, LLC, a company that provides management consulting on a nationwide basis to insurance agencies and carriers.

Becky helps agencies throughout the United States grow profitably by counseling them in areas such as workflow management, staff stratification/organization and training, sales/ marketing business plans, client retention, strategic planning, and producer management and compensation. She has also developed and facilitates many agency and carrier training programs, including Marketing/profitability workshops to help agencies grow, manage their loss ratios, and assist them with capitalizing on contingency bonus opportunities. **Becky was voted the 2012 AIMS Society/ CPIA Instructor of the Year!

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

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! Event Attire Tuesday’s Golf Outing: appropriate golf attire please. Tuesday Evening & Wednesday: Business Casual Hotel Information

Lied Lodge & Conference Center, Nebraska City NE

You are responsible for making your own hotel reservation by contacting the Lied Lodge & Conference Center at (402) 8738733 and requesting the group name “Professional Insurance Agents” for our special rate of $119.00. A block of rooms have been reserved for June 3-4, 2014. The special room rate will be available until May 7th or until the group block is sold-out.

Be sure to get an Arbor Day Tree; Don’t leaf without one!

Convention Hotel Facility (you must register yourself for accommodations)

LIED LODGE & CONFERENCE CENTER 2700 Sylvan Road Nebraska City NE 68410 (402) 873-8733 Convention Hotel Facility (you must register yourself for accommodations)

Name:________________________________________ Company Name:_ ___________________________ Address: _____________________________________ City/State/Zip:_ _____________________________ Phone:_______________________________________ E-mail:_____________________________________ Golf Outing at ArborLinks: No. of Players: _____ Name(s) of Players:______________________________________________________________ __________________________________________________________________________________________________ Evening with Coach Tim Miles & Trade Fair: Past President’s Breakfast: Morning Seminar: Achiever’s Luncheon:

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

Total for all Events/Classes you plan to attend:

$____________________________________

$45/Non-Members $25/Non-Members $35/Non-Members $25/Non-Members

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: $_ __________________________ I’m Sending a Check: o Credit Card No: ___________________________________________ Exp. Date:______________________ Approval Signature:________________________________________________________________________ Return with payment to: PIA NE IA – 920 S 107th Ave., Ste. 305, Omaha, NE 68114 • FAX: (402) 392-2228 Questions? Email Jenn at frontdesk@pianeia.com (REGISTER ONLINE at www.pianeia.com)

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 20 - March 7, 2014

MERG: New Agency Employee Orientation

Online Course

February 17 - April 11, 2014

MERG: Commercial Lines Coverage Basics

Online Course

February 17 - April 4, 2014

MERG: New Agency Employee Orientation

Online Course

February 17 - March 28, 2014

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

Online Course

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 12 - 14, 2014

CIC: Agency Management Institute

Holiday Inn Hotel & Suites

March 17 - April 25, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

March 17 - May 2, 2014

MERG: New Agency Employee Orientation

Online

Online Course

March 20, 2014

Waivers of Subrogation/Indemnity/ Certificates

NE/IA

Webinar: 12:00PM - 3:00PM

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 - 11, 2014

CIC: Personal Lines Institute

Lincoln

Holiday Inn Lincoln Downtown

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

March 2014 | Main Street Industry News | www.pianeia.com | 30

PIA NE IA Events

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

Webinar: 8:00AM - 11:00AM

April 16, 2014

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

Webinar: 12:00PM - 3:00PM

April 21 - June 13, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

April 21 - June 6, 2014

MERG: New Agency Employee Orientation

Online

Online Course

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

Webinar: 8:00AM - 11:00AM

May 15, 2014

Waivers of Subrogation/Indemnity/ Certificates

NE/IA

Webinar: 8:00AM - 11:00AM

May 19 - July 4, 2014

MERG: New Agency Employee Orientation

Online

Online Course

May 19 - June 27, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

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

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 16 - August 1, 2014

MERG: New Agency Employee Orientation

Online

Online Course

March 2014 | Main Street Industry News |www.pianeia.com| 31

PIA NE IA Events

June 16 - August 8, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

June 16 - July 25, 2014

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

Online

Online Course

June 18 - 20, 2014

CIC: Commercial Property Institute

Cedar Rapids

DoubleTree Hilton

June 26, 2014

CISR: Agency Operations

Marion

Kirkwood Training Center

July 9 - 11, 2014

CIC: Commercial Casualty Institute

Omaha

Omaha Marriott Hotel

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 21 - August 29, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

July 21 - September 5, 2014

MERG: New Agency Employee Orientation

Online

Online Course

July 22, 2014

CPSR: Residential Property

Columbus

Dusters

July 30 - August 1, 2014

CIC: Personal Lines Institute

West Des Moines

Holiday Inn Hotel & Suites

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 18 - October 10, 2014

MERG: Commercial Lines Coverage Basics

Online

Online Course

August 18 - October 3, 2014

MERG: New Agency Employee Orientation

Online

Online Course

August 21, 2014

CISR: William T. Hold: Advanced Learning Seminar

Des Moines

Hilton Garden Inn Des Moines/Urbandale

September 5 - October 31, 2014

MERG: New Agency Employee Orientation

Online

Online Course

September 10 - 12, 2014

CIC: Life & Health Institute

Lincoln

Holiday Inn Lincoln Downtown

September 10, 2014

CISR: Insuring Personal Residential Property

Des Moines

Hilton Garden Inn Des Moines/Urbandale

September 15 - October 24, 2014 MERG: Personal Lines Coverage Basics

Online

Online Course

September 17 - 19, 2014

CIC: Commercial Casualty Institute

Cedar Rapids

DoubleTree Hilton

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 15 - 17, 2014

CIC: Agency Management Institute

Omaha

Omaha Marriott Hotel

October 20 - November 28, 2014

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

Online

Online Course

October 20 - December 12, 2014 MERG: Commercial Lines Coverage Basics

Online

Online Course

October 20 - December 5, 2014

Online

Online Course

MERG: New Agency Employee Orientation

March 2014 | Main Street Industry News | www.pianeia.com | 32

PIA NE IA Events

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

November 12 - 14, 2014

CIC: Life & Health Institute

West Des Moines

Holiday Inn Hotel & Suites

November 17 December 26, 2014

MERG: Personal Lines Coverage Basics

Online

Online Course

November 17 - January 2, 2015

MERG: New Agency Employee Orientation

Online

Online Course

November 18, 2014

CPSR: Commercial Casualty

Omaha

Omaha Marriott Hotel

Education Register online for PIA of Nebraska & Iowa education: Click here or call (402) 392-1611

Post a classified ad! Your ad will stand out! 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 â€“ Executive Director, Cathy Klasi at (402) 392-1611. March 2014 | Main Street Industry News |www.pianeia.com| 33