Delaware Primary Agent - October 2015

OCTOBER 2015 | DELAWARE

POWERING LEGISLATIVE

CHANGE How to bring bright ideas to fruition

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IN THIS

ON THE COVER 12

GETTING A BILL ACROSS THE FINISH LINE The journey from a mere suggestion to a signed statute is not as simple as it sounds. Follow the path of our latest legislative victory — passage of HB 40 — to understand what it really takes to affect legislative change.

ALSO 22

INFLUENCING CHANGE Get to know our IA&B Government Relations Committee — a committee of volunteer member agents who help steer our advocacy efforts.

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HOW THE OVERTIME REGULATION COULD CHANGE The U.S. Department of Labor released proposed changes to the Fair Labor Standards Act in July.

If they are approved as presented, the revisions will impact 11 million employees — including plenty of insurance agency staff.

IN EVERY ISSUE 2 3 4 6 8 11 IBC IBC IBC

Chairman of the Board’s Message Ask Our Experts Preventing Errors & Omissions Coverage Corner State News IA&B Partners My Events Advertiser’s Index Classified Ads

Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices. Ride-along enclosed. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2015-10, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

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Copyright 2015. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

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CHAIRMAN OF THE BOARD’S MESSAGE

INSURANCE AGENTS & BROKERS

YOUR VOICE IN DOVER

5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS Chair of the Board

T

Robert S. Klinger, LUTCF, CPIA Vice Chair of the Board

ime and again, when members rank the reasons they belong to their state agents’ association, advocacy – particularly regulatory and governmental representation – tops the list.

And it’s no wonder. As already stretched-too-thin businesspersons, the idea of us personally tracking departmental bulletins and bills and lobbying state officials and elected leaders is laughable. Yet we realize the impact that regulation and legislation have on us, our agencies and our customers.

Michael F. McGroarty Sr. Immediate Past Chair of the Board

Diana M. Hornung Hanby, ACSR

MEMBERS Henry “Butch” Bradley Jr. Forest Hill, Md.

E. Stephen Burnett, CIC, ARM Wilmington, Del.

Richard F. Corroon, CPCU Wilmington, Del.

N. Lee Dotson, CIC, AAI

Enter IA&B.

Wilmington, Del.

This issue of Primary Agent magazine is dedicated to government relations.

On page 12, you’ll find an insightful look at what went into the association’s most recent legislative victory – passage of House Bill 40 to remove the notarization requirement on the surplus lines diligent effort form.

(For those of you following along at home, this follows last year’s legislative accomplishment: passage of legislation to curb certificate of insurance abuse.

We’re two for two!)

Then I invite you to learn more about the role that member agents play in defining IA&B’s legislative priorities. Page 22 showcases the state association’s government affairs committee.

Finally, I would be remiss if not to encourage your contribution to AgentPAC, the political action committee of your state association. It’s thanks to agents’ generous support that our government relations staff can build relationships needed to open doors in Dover and beyond. n

Michael P. Ertel+ Columbia, Md.

John B. Hollister Milford, Pa.

Jocelyn R. Howard-Sinopoli, CIC, CISR Butler, Pa.

Douglas A. Loesel, CPCU Erie, Pa.

Crag S. Mader

Gambrills, Md.

Ann Gallen Moll, CIC Reading, Pa.

Mark J. Monroe

West Chester, Pa.

Joseph R. Pastor, CPCU, AAI Oil City, Pa.

Richard M. Rankin, CIC Lancaster, Pa.

April E. Ressler, CIC Altoona, Pa.

Scott C. Rogers, CPIA* York, Pa.

Glenn R. Strachan

Best,

Ft. Washington, Md.

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** New Castle, Del.

J. Marshall Wolff, CIC, CPCU Easton, Pa.

Robert S. Klinger, LUTCF, CPIA Chairman of the Board

* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director

Editor’s note: Learn more about AgentPAC and contribute by visiting IABforME.com/DelPAC.

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OCTOBER 2015

Ask Our Experts This month’s answer was provided by Don Bankus, our legal affairs manager.

Question: What information should be included in the Description of Operations box on the ACORD 25?

Answer:

G

reat question. As you’re well aware, agents are often asked to add all kinds of information to certificates. It’s generally recommended the information an agent enters in the Description of Operations box be limited as per the ACORD instructions to include recording “... information necessary to identify the operations, locations and vehicles for which the certificate was issued.”

As long as the information you include, or are being asked to include, in the Description of Operations box isn’t illegal (meaning that it’s not a violation of an insurance or other law, regulations, etc.), and the information you include is not a misrepresentation of any policy terms or conditions, inclusion of such information is not expressly prohibited.

The ACORD 25 Instructions for the Description of Operations/Locations/ Vehicles box provide as follows:

As an added precaution, it may be prudent to include a statement thereafter that the information being provided is “to the extent provided in the attached/enclosed forms” and then provide copies of the applicable policy forms/endorsements. This will assist in limiting the agency’s exposure, while also placing the onus on the certificate requester to determine whether or not coverage, etc., afforded by such documents/ endorsements meets their requirements.

E nter text: The Certificate Of Liability Insurance general remarks.

The additional comments or special conditions that may exist upon the policy. ACORD 101, Additional Remarks Schedule, may be attached if more space is required. As used here, records information necessary to identify the operations, locations and vehicles for which the certificate was issued.

If the information you intend to reference/add to the certificate falls outside the four corners of the policy and/or applicable endorsements, you should refrain from including/adding it.

For more information on certificates of insurance, visit IABforME.com/ certificates. n

Have a question?

Ask our experts!

Rely on our experts to answer your most perplexing questions.

Visit the Ask Our Experts section of IABforME.com (find the link in the website footer) to submit your question and review answers to other frequently asked questions. Or email your question to us at IAB@IABforME.com.

We look forward to hearing from you.

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PREVENTING ERRORS & OMISSIONS

COMMON AGENT MISSTEPS E&O claim examples Penn National Insurance

L

earn from fellow agents’ mistakes.

In this article Penn National Insurance provides common scenarios that generate E&O claims against agencies.

MISSED ADDITIONAL NAMED INSURED An existing client informed his agent that he wanted to change the named insured on his policy to a corporation that he was in the process of forming. The agent failed to ask the client if he and his wife were retaining personal ownership of the building which housed the business

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after the change to the corporate entity. The agent also failed to name the client individually on the policy, thereby exposing the client to personal liability outside the exclusive remedy of worker’s compensation for an employee of the new corporation who suffered a premises-related injury. These failures created an agent E&O exposure when the client incurred liability which would have been covered by the policy had the agent included the individual client as an additional named insured.

OCTOBER 2015

MISREPRESENTATION ON THE APPLICATION An insured filed a first-party claim for damages suffered due to a break-in at his store. The insured’s carrier denied the claim based on misrepresentation in the application.

The carrier alleged that the insured had not disclosed previous theft losses from the business and filed suit to void the policy ab initio. The insured maintained that he had informed the agent of prior break-ins when he applied and therefore filed a thirdparty complaint against the agent.

Among other claims, the allegations against the agent included negligent misrepresentation, fraud, breach of implied contract and breach of fiduciary duty. The client also sought punitive damages and a declaration that the policy was valid at the time of the loss and provided coverage for the damages sustained.

FAILURE TO PROCURE INSURANCE An insured filed a first-party claim for damages suffered due to total loss in a house fire. The insured had signed the insurance application on June 26, but the agent did not forward the application to the carrier until Aug. 5 – the date of loss. The carrier refused to pay the loss and maintained that, if the application had been filed on a timely basis at the time of its execution, it would have been rejected. The insured filed an E&O claim against the agent for failure to procure insurance, seeking damages in the amount of the loss.

MISREPRESENTATION IN POLICY PROCUREMENT A contractor met with the agent to obtain a policy which covered all liability loss exposures arising out of his operations – primarily carpentry, remodeling and limited roofing. After policy issuance and a number of renewals, an employee of the contractor was injured on the job.

While the employee was covered under the worker’s compensation program, he also filed a claim against the contractor for intentional tort. The contractor alleged that the agent had represented that the insurance coverages would specifically protect him from all potential employee losses and that the policy would provide complete coverage for all employee and customer liability. The

agent faced E&O exposure for his alleged representations to the contractor in the course of policy procurement.

MISCALCULATION OF COSTS Agent wrote a homeowner’s policy through ABC Fire Insurance Company using cost guides from two other carriers in error. The agent then used room count instead of square footage in premium calculation, ultimately advising the insured that he could not obtain guaranteed replacement cost. Based upon this representation, the insured obtained dwelling coverage, related structures, personal property and loss of use. A subsequent house fire resulted in a total loss. The policyholder hired counsel who specialized in insurance bad faith, fire insurance, property insurance coverage and insurance law to bring claims against the agent due to the agent’s errors. n Penn National Insurance supplied this article. Our sales center offers agents’ umbrella coverage underwritten by Penn National. For questions regarding this article or how an umbrella policy could supplement your existing commercial coverage and E&O limits, contact IA&B at 800-998-9644 or IAB@IABforME.com.

BE IN THE KNOW ABOUT E&O BRUSH UP on your E&O prevention knowledge at one of our upcoming courses: E&O Risk Management: Meeting the Challenge of Change The ever-changing world of insurance includes new and evolving E&O exposures, as well as emerging new ways to protect your agency. Learn about the E&O exposures that exist today that were unimaginable 15 years ago, including those created by social media and data breaches.

Thursday, Oct. 8 – Mars, Pa. Tuesday, Nov. 3 – Bethlehem, Pa. Wednesday, Dec. 2 – Newark, Del. This seminar is approved for loss-control credit for Utica policyholders in Delaware, Maryland and Pennsylvania and for Westport policyholders in Delaware and Pennsylvania.

Ethical Behavior and E&O Jerry Milton, CIC, shows you how to stay out of hot water when it comes to errors and omissions. He explains how to reduce the risk of E&O claims by conquering “the L-Syndrome: lack of knowledge, lack of consistency, lack of communication or lack of documentation.”

Available on-demand and at your convenience for 30 days following registration.

This seminar is approved for loss-control credit for Utica policyholders in Delaware, Maryland and Pennsylvania.

IABforME.com/MyTraining

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COVERAGE CORNER

THE NEW CYBER THREATS Jerry M. Milton, CIC

B

efore late 2014, we thought the primary cyber threats were the loss of or theft of data. However, we now have discovered that cyber threats have become more dangerous and malicious as industrial control systems and supervisory control and data acquisition systems are being targeted.

In late 2014 the control systems of a German steel mill were remotely manipulated causing severe damage to the plant. Using sophisticated spear-phishing (use of emails that appear to come from within the organization or from a trusted source) and social media engineering techniques, the attackers gained access to

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the plant’s business network. They were able to compromise a number of systems, including various industrial components on the facility’s production network.

The manipulations of the plant’s systems caused a number of internal failures, and they were unable to properly shut down a blast furnace, which resulted in massive damage to the facility.

The Industrial Control Systems Cyber Emergency Response Team, which is part of the U.S. Department of Homeland Security, reported that U.S. industrial control systems were hit by cyber attacks at least 245 times in 2014. They reported that the energy and manufacturing

OCTOBER 2015

sectors were the most sought after targets.

Other targeted sectors included health care, communications, water supply and transportation. These attacks have raised significant concerns regarding property damage and resulting bodily injuries.

One major concern of the industry is their supply chains. Supply chains are often global and are extremely vulnerable to cyber threats. They are often extended and complex, and their very nature make them vulnerable and hard to protect.

The product a company purchases could already be loaded with malware or a malicious code.

The emergence of these cyber threats is not surprising as more and more control systems have become accessible from the Internet. By allowing employees to gain remote access to control systems networks, companies face an increased risk of cyber attacks gaining unauthorized access to their systems.

Recently several security experts teamed with Wired magazine to demonstrate the ability of anyone to wirelessly hack into and control an auto’s entertainment and control systems. An entertainment system is usually connected to numerous electronic control units throughout the auto. Today’s autos can contain up to as many as 200 electronic control units. The security experts showed how to wirelessly break into an auto’s control systems and electronically operate vital vehicle functions. They advised that they could easily hack the electronic control systems in hundreds of thousands of vulnerable autos.

Two United States senators, Edward Markey and Richard Blumenthal, reacted quickly to this threat and have introduced a bill in the Senate that would require automobile manufacturers to develop standards that protect drivers from cyber attacks. The Security and Privacy in Your Car Act of 2015 would require automakers to comply with cyber security standards and equip autos with software that would detect, report and stop attempts by hackers to intercept driving data or control the auto.

However, these measures would not be implemented for several years.

Damage to tangible property and physical injury arising from cyber attacks is an emerging risk. While exclusions have been added to our property and liability policies in regard to electronic data, the question is whether these exclusions would be applicable if a cyber attack resulted in bodily injury or property damage to tangible property. What about these new cyber policies being developed

by our insurers? Will cyber losses resulting in bodily injury or property damage to tangible property be covered under these policies? Probably not.

Will our industry develop new policies to address these new threats? I’m sure they will – only time will tell.

Y’all take care! n

Jerry M. Milton, CIC, teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He also serves as our education consultant, working with our CISR, CIC and continuing education programs.

Catch him at one of our upcoming seminars, including the new, six-credit “Cyber liability, e-data and equipment breakdown -- who needs ‘em?!?” coming to Ellicott City, Md. on Tuesday, Oct. 6.

Visit IABforME.com/MyTraining.

CIC CORNER Our four CIC education consultants boast a combined 170 years of insurance industry experience.

Here, one of our consultants – James “Jim” Harrison Jr., CIC, ChFC, CLU, CPCU – offers his advice to those beginning the program.

1. PREPARATION. Review the agenda and familiarize yourself with the various topics – ahead of time.

Don’t wait until the night before the class or until the class itself.

2. APPROACH. Sit in the front of the class (front row if available) to avoid distractions and focus on the instructor and material.

3. TOOLS. Bring your study tools of choice. Some students are successful making flashcards, while others create a consolidated outline. Some use highlighters. What works for you?

4. RESOURCES. At the end of day one, stay for the exam briefing. Review the introductory section of the notebook, and use the education consultant as a resource.

IABforME.com/CIC

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STATE NEWS

NEW TRANSPORTATION FEES TAKE EFFECT An Act to Amend Titles 21 and 30 of the Delaware Code Relating to Taxes and Fees Supporting the Transportation Trust Fund (House Bill 140), which was part of the 2016 budget package, increased several revenue sources for the Transportation Trust Fund. Fees for the following saw jumps: • Motor vehicle document – from 3.75 to 4.25 percent • Late renewal of a driver’s license – from $1.15 to $10

ANOTHER INSURER OF TAXICABS IN TROUBLE As a result of alleged uncertainties regarding its ability to meet its financial obligations (defend insureds and pay claims), Pinelands Insurance Company Risk Retention Group Inc. (Pinelands), voluntarily suspended writing new and renewal business. Pinelands, which was issued its certificate of authority by the District of Columbia Department of Insurance, Securities and Banking (DISB), is authorized to insure taxicabs in Pennsylvania, Delaware, New Jersey and Washington, D.C. It has been reported that: • With the approval of the DISB, Pinelands voluntarily suspended writing new and renewal business, effective March 9, 2015.

• The Philadelphia Parking Authority, which oversees and regulates taxicabs in Philadelphia, will no longer accept insurance renewals for taxicabs insured by Pinelands. As a result, affected taxicabs have been required to seek new coverage.

• The Pennsylvania Public Utility Commission, which regulates taxicabs outside of Philadelphia, began an investigation into Pinelands.

• Reinstatement of a suspended or revoked driver’s license – from $25 to $40 and $143.75 to $200, respectively • Duplicate driver’s license – from $10 to $20 • Duplicate titles – from $25 to $50 • Duplicate vehicle validation stickers – from $1 to $5 • Duplicate registration cards – from $2 to $10 • Vehicle temporary tag – from $10 to $20

• The DISB is currently reviewing Pinelands’ financial condition.

• Sale of motor vehicle records – from $15 to $25

As this issue of Primary Agent went to print, it was unknown whether the DISB would pursue either rehabilitation or liquidation of Pinelands. We’ll continue to monitor the issue and keep members posted.

• Transfer of a specific tag number from vehicle to vehicle – from $10 to $20

This marks the second time in less than a year that an insurer of taxicabs has met with financial difficulty. In October 2014, First Keystone Risk Retention Group, Inc., a South Carolina insurer, was ordered into liquidation.

• Issuance of a vehicle title – from $25 to $35

Our federal partners at the Big “I” continue to lobby against expansion of the Liability Risk Retention Act, which would allow risk retention groups – which adhere to lower regulatory standards that do not include many consumer-safety requirements – to offer commercial property coverage to certain non-profit organizations and education institutions.

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• Late renewal of vehicle registration – from $10 to $20

OCTOBER 2015

• Issuance of a lien on an existing title – from $10 to $20 The effective date for these increases was generally Oct. 1, 2015 to allow time for computer reprogramming and effective implementation.

NEW LAW REQUIRES ELECTRONIC BILLING OF WC CLAIMS

PLANS FOR A STATEBASED EXCHANGE SCRAPPED

In the last hours of session before leaving Dover in June, state legislators passed House Bill 166 which incorporates changes to the workers’ compensation (WC) statute proposed by the state’s Workers’ Compensation Oversight Panel (of which our board member Lee Dotson is a member) and the Department of Labor.

Delaware will not move forward with the creation of a state-based health insurance exchange. The decision came as a result of the June 25 U.S. Supreme Court ruling that upheld subsidies in all exchanges, including those that are a state-federal partnership (such as Delaware’s) and those that are federally facilitated.

The bill removes the certification requirement for health care providers who are not licensed in Delaware but are licensed in another state, and it changes the allowable payment for these noncertified, out-of-state providers to the lesser of the usual and customary fee, the other state’s maximum reimbursement, Delaware’s maximum reimbursement, or a negotiated contract.

The bill also allows the Workers’ Compensation Oversight Panel to realize the 2016 and 2017 mandated medical cost savings in the Delaware WC system through any component of the health care payment system and not just the fee schedule. This bill also gives the Workers’ Compensation Oversight Panel the authority to adopt rules to require electronic medical billing and payment processes, to standardize the necessary medical documentation for billing adjudication, and to provide for effective dates and compliance. The panel intends for the billing component to be in place by the end of the year and for it to be mandatory for all providers and doctors with an option for the smaller players to opt out.

Delaware Health and Social Services Secretary Rita Landgraf informed federal officials of the decision in late summer.

According to Landgraf’s letter, the state “will continue to utilize the federal technological platforms for enrollment and data reporting, consumer outreach and education efforts, and finalization of qualified health plans.”

Delaware submitted a formal application to establish a state-based health insurance exchange in advance of the Supreme Court ruling. In mid-June, the Centers for Medicare and Medicaid Services granted conditional approval of the effort.

SURPLUS LINES BURDEN LIFTED The administrative headaches associated with placing business in the surplus lines market are a little lighter thanks the passage of our legislative priority.

The new law took effect on Wednesday, Sept. 2, which marked 90 days from the date of enactment.

House Bill 40 (now Chapter 30 of the 148 General Assembly) removes once and for all the notarization requirement on the surplus lines diligent effort form (SL-1923), a requirement that placed undue burden on agents.

Late last year the Delaware Department of Insurance (DOI) took a literal stance of the law and began requiring notarization of all surplus lines affidavit forms. We immediately began to work with legislators and the DOI on legislation to provide a “fix” to this new notarization requirement. Rep. Bryon Short, chairman of the House Economic Development/Banking/Insurance/ Commerce Committee and long-time friend of our association, served as the primary bill sponsor. Additionally, the DOI was extremely receptive to our concerns and very helpful in supporting this legislation.

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PLATINUM PROFILE

Insurance Agents & Brokers proudly recognizes Donegal Insurance Group as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

FOCUSED ON RESULTS FEATURED PARTNER Donegal Insurance Group

W

e have been providing quality property and casualty insurance protection since Donegal Mutual Insurance Company began doing business in 1889. Over the years, the Donegal Insurance Group has grown significantly to now include nine property and casualty insurance companies. The Donegal Insurance Group enjoys an A (Excellent) rating by the A.M. Best Company.

As our operations have grown, we have expanded our ability to provide our independent insurance agents with a comprehensive suite of products. In addition to providing a full line of personal insurance products, we have developed competitive commercial products that allow our agents to serve a broad spectrum of small, mid-market and larger commercial accounts. We work very hard to provide exceptional products and service in lines of business and markets that we know and understand well.

At Donegal, we focus on providing superior technology and outstanding service to our agents and customers. We know that “ease of doing business” has become increasingly important to independent agents.

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CHIEF EXECUTIVE OFFICER Donald H. Nikolaus President and CEO

Donegal has invested millions of dollars developing advanced technology that greatly enhances our agents’ and policyholders’ experience in doing business with us.

Donegal has long recognized the value of an independent agent in assisting individual and business consumers navigate the insurance-buying process. Every day, we prove our commitment to the independent agency system by distributing our products exclusively through independent agents. We are constantly looking for ways to deliver increased value to our agents and solidify company-agency relationships.

We have benefited greatly from the feedback we receive from our regional agency forums, which helps us enhance our products and operations.

Much has changed since we started in the insurance business over 126 years ago, but one thing remains the same — Donegal remains firmly committed to delivering a better value to our agents and policyholders.

We look forward to mutual success as we work together with our independent insurance agents in serving the insurance needs of our customers. n

OCTOBER 2015

CORPORATE HEADQUARTERS Marietta, Pennsylvania DONEGAL INSURANCE GROUP Donegal Mutual Insurance Company Atlantic States Insurance Company Southern Insurance Company of Virginia Le Mars Insurance Company Peninsula Insurance Group Sheboygan Falls Insurance Company Michigan Insurance Company Southern Mutual Insurance Company A.M. BEST RATING A (Excellent) WEBSITE www.donegalgroup.com

PARTNERS PROGRAM

Listed below are those companies that strongly support the independent agency system and Insurance Agents & Brokers.

Thank you for your continued sponsorship.

WHAT IS IA&B PARTNERS? The IA&B Partners program gives company and allied businesses the opportunity to demonstrate their commitment of support to independent agents and receive maximum market exposure. As an IA&B Partner, you will also realize the benefits of IA&B membership to help you succeed in the insurance industry.

PLATINUM LEVEL

BRONZE LEVEL

ACUITY

Aegis Security Insurance Co

Berkley Mid-Atlantic Group

Agency Insurance Company

Donegal Insurance Group

AmWINS Program Underwriters Inc

Erie Insurance Group

ARI Insurance Companies

Harleysville Insurance

Auto-Owners Insurance Company

Insurance Agents & Brokers Service Group Inc

Bailey Special Risks Inc

Liberty Mutual Insurance

Briar Creek Mutual Insurance Company

MMG Insurance Company

Conemaugh Valley Mutual Insurance Co

Millers Mutual Group

Countryway Insurance Company

Mutual Benefit Group

Encompass Insurance

Penn National Insurance

Foremost Insurance Group

Swiss Re

GMI Insurance

The Main Street America Group

Goodville Mutual Casualty Company

United Fire Group

Guard Insurance Group

Utica National Insurance Group

HM Workers’ Compensation

Brethren Mutual Insurance Company

Insurance Alliance of Central PA Inc

DO YOU SEE YOUR NAME? To become an IA&B Partner, choose the sponsorship package that matches your commitment of support.

Contact the Member Sales Center at 800-998-9644, 717-795-9100 or visit us online at IABforME.com to get started.

GOLD LEVEL

Amerisafe Progressive Westfield Insurance

Insurance House Insurance Placement Facility of PA Keystone Insurers Group Inc Lackawanna Insurance Group Lebanon Valley Insurance Company Merchants Insurance Group

SILVER LEVEL

Mercury Casualty

Access Insurance Company

Millville Mutual Insurance Co

American Mining Insurance Co

PennPRIME Municipal Insurance

Cumberland Insurance Group

Reamstown Mutual Insurance Company

Farmers Mutual Insurance Company of Western Pennsylvania

Rockwood Casualty Insurance

Frederick Mutual Insurance Co Juniata Mutual Insurance Co

State Auto Mutual Insurance Company TAPCO Underwriters Inc The Motorists Insurance Group

MAPFRE Insurance

The Mutual Service Office Inc

PSBA Insurance Trust

Travelers

Selective

Tuscarora Wayne Group of Companies

The Philadelphia Contributionship

Zenith Insurance

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OCTOBER 2015

GETTING A BILL ACROSS

THE FINISH LINE

By Lauren Brinjac

Often, the only thing worse than trying to move a bill that too many people are worried about, is trying to move one that not enough people are worried about.

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Remember Schoolhouse Rock’s “How a Bill Becomes a Law”? A lone little bill, singing the blues on Capitol Hill, laments over his long-shot odds of becoming a law while cartoon legislators debate his fate behind closed doors.

B

ill is right about one thing – the road to making new law is usually long, winding and uncertain; however, this cartoon leaves out a major piece of the puzzle. To have any shot at all of becoming law, Bill would never be sitting by himself with fingers crossed on the steps of the Capitol; the fact is that he’d be carried, often pushed, through every step of his journey by a group of people lobbying for his success.

The journey from mere suggestion to signed statute is not as simple as it sounds when we learn about it in grade school.

So how does it really work? What does your association’s government affairs team really do? We were successful this year in seeing our legislative priority in Dover signed into law – House Bill 40, which removes once and for all the notarization requirement on the surplus lines diligent effort form (SL-1923), a requirement that placed undue burden on agents. We can use this as a case study in how a bill really gets across the finish line in the legislature.

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OCTOBER 2015

TIMELINE FOR HOUSE BILL 40 June 30, 2014 – Delaware Department of Insurance releases Surplus Lines Bulletin No. 13 adding a notary signature requirement to form SL-1923 March 12, 2015 – House Bill 40 is introduced and assigned to House Economic/Development/ Banking/Insurance/Commerce Committee March 25, 2015 – House Bill 40 is reported out of House committee March 26, 2015 – Passed by the House of Representatives by a vote of 38-0 (three absent) March 31, 2015 – Assigned to Senate Insurance & Telecommunications Committee April 28, 2015 – House Bill 40 reported out of Senate committee May 5, 2015 – Passed by the Senate by a vote of 19-0 (two absent)

For All That Matters

facebook.com/acuitywow

STARTING FROM SCRATCH In the summer of 2014, the Delaware Department of Insurance (DOI) issued Bulletin No. 13, which indicated that the SL-1923 form – used to identify the three admitted carriers that declined to write the risk – was amended to include a signature box for a notary. Based on a literal reading of the law, the DOI was requiring all surplus lines affidavit forms to be notarized. Yes, notarized.

Shortly thereafter, we began receiving calls and emails from our independent agent members who now had to leave their offices to visit a notary, and pay the associated fees, just to place a surplus lines policy. We were concerned with the DOI’s new stance and reached out to our contacts there with the goal of having the Department reconsider and ultimately revise its position.

We formulated our argument to the DOI based on member feedback, extensive research and discussions with various state insurance departments, surplus lines associations and sister associations. The primary issues we raised with the DOI included:

• Notarization represents an unnecessary burden on the agent; does nothing to strengthen the legitimacy of the SL-1923; and raises collateral, unforeseen privacy-related issues.

The DOI was very receptive to our concerns and willing to hear us out on the issue. After several months of discussion, research and back-and-forth, the DOI agreed that the notarization requirement wasn’t necessary and agreed to support us in moving forward with what would need to be a legislative “fix.” We went to work on drafting language for our proposed legislation which involved minor changes to Title 18 (Insurance) of the Delaware Code § 1923(a)(14), namely striking

RACING OUT OF THE BLOCKS This was only the beginning, however.

January 2015 brought with it the start of a new two-year session of the state’s General Assembly. In order to make our draft proposal an actual piece of legislation, bill sponsors had to be secured, and lobbying was necessary to explain to legislators not only why this issue matters, but what a surplus lines policy is in the first place.

We reached out to Rep. Bryon Short, a Democratic member of the House of Representatives since 2007 representing

You thought you sold a comprehensive homeowners policy. Does it include Equipment Breakdown coverage?

• No genuine purpose, consumer protection or otherwise, is served by requiring notarization of the agent’s signature.

Let Mutual Benefit Group provide this overlooked coverage for times when things run hot and cold, or unfortunately in the wrong order.

• The Delaware legislature did not express its intent that the form be notarized.

• Notarization of the SL diligent effort form represents an antiquated practice, with seven states having removed the requirement since 2011.

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the three references to “affidavit,” and replacing them with the phrase “written statement,” thus eliminating the need for notarization.

OCTOBER 2015

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THE ROLE OF AGENTPAC LIKE IT or not, any honest discussion of politics and lawmaking involves money. There is no better example than House Bill 40 of how investing in AgentPAC, our state association’s political action committee, is investing in your business. This is a prime example of a requirement that would have cost agents significant time and money in compliance – a requirement that would continue today if it weren’t for a newly signed law.

Each member of the state House and Senate got there by being elected; and if they’d like to stay there, they need to be re-elected on a regular basis. Election campaigns cost money (air time, ad space, mailings, etc.). Those supporters who make contributions to candidates’ campaign committees enable them to continue their careers, so it makes sense that they are given consideration on the legislative issues that matter to them.

Specifically, AgentPAC dollars are used to support the re-election of legislators in Dover who are friends of independent insurance agents. These legislators understand small business owners, and they understand what it is that independent insurance agents and brokers do. These friends were quick to support our legislation to remove the notarization requirement, and they will be there for us again when we need them to hear our point of view on other issues. We need to continue to support these legislators.

Please support AgentPAC today. It truly is an investment in career insurance. Contribute online easily and securely by visiting IABforME.com/DelPAC

District 7 (Highland Woods), who also serves as chair of the House Economic/Development/Banking/Insurance/Commerce Committee. Rep. Short consistently is supportive of the concerns and priorities of independent agents and of improving the industry climate in Delaware. He understood the importance of our issue to the agent and broker community and agreed to be the prime sponsor of our legislation. After working with legislative attorneys in the House of Representatives to ensure correct statutory drafting, our surplus lines legislative priority was introduced as House Bill 40 in March 2015 and sent to the House Economic/Development/Banking/Insurance/ Commerce Committee.

We were fortunate on this issue in many respects. House Bill 40 was a noncontroversial bill. All parties involved had reached a consensus on how to address the matter before the bill was even introduced – something we aim for whenever possible. Any amendments that would have needed to be added later in order to quell the concerns of a group of stakeholders would only have slowed (maybe even halted) the bill’s progress. In addition, we had the chair of the House Insurance Committee as the bill’s primary sponsor.

CLEARING HURDLES While the eventual passage of House Bill 40 may seem like a no-brainer, even non-controversial bills need to be managed and championed. The fact is that during this first year alone of the 2015-2016 legislation session, 522 bills were introduced. Many more will be introduced when the legislature returns for the second session year in January 2016, and most will die, just like our Schoolhouse Rock friend, Bill, feared may be his own fate.

Often, the only thing worse than trying to move a bill that too many people are worried about, is trying to move one that not enough people are worried about. With dozens of issues pulling their attention on any given day, legislators understandably tend to focus on the most pressing matters and highest priorities, which this year included substantial budget concerns, education, capital punishment, infrastructure funding, decriminalization of marijuana and many others.

Even when legislators agree to sponsor bills, they often need to be reminded of their commitment, lest the bill slip through the cracks. Timing is another element of concern -- too close to session adjournment and you risk your bill being passed over during legislative crunch time in lieu of bigger items like the state budget. Momentum is important, and letting a bill languish in committee for too long is often a kiss of death.

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OCTOBER 2015

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PICKING UP SPEED We maintained regular contact with Rep. Short as well as the members of his committee during the first few months of the legislative session, and we were on hand in Dover to provide verbal testimony the day House Bill 40 came up for consideration in the committee. Once the bill was voted out of committee, we lobbied to get it on the agenda to be voted on by the full House the very next day. The bill passed the House smoothly with no opposition and was sent over to the Senate to go through the very same process in that chamber. Once again, we were fortunate that Sen. Brian Bushweller, chair of the Senate Insurance & Telecommunications Committee, was also a sponsor of the bill, and moved the bill through his committee in a timely manner.

On May 5, 2015, House Bill 40 passed the Senate unanimously, and on June 4, almost a full year after the surplus lines issue first appeared on our radar, House Bill 40 was signed into law by Gov. Jack Markell.

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Though this story has a happy ending and we were able to win a victory for our members, tomorrow is a new day, and our next legislative issue may require a heavier lift. Although it is often left out of text book explanations of how a bill becomes a law, building and maintaining legislative relationships are of the utmost importance for associations like ours.

Legislators are presented with hundreds, if not thousands, of bills during every legislative session, and they rely heavily on input and research provided by lobbyists in order to make sense of the various points of view on any given subject.

We continue to work to ensure that our state association is one of the groups whose point of view is taken into consideration during these contentious times. n

Lauren Brinjac, government affairs director for IA&B, wrote this article.

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INFLUENCING

CHANGE

GETTING TO KNOW THE IA&B GOVERNMENT RELATIONS COMMITTEE

Com-mit-tee (noun) – a body of persons delegated to consider, investigate, take action on, or report on some matter.

IA&B

, as an association, is very limited in the number of standing committees it maintains. We are constantly trying to stay ahead of the curve in the association world, and the longstanding committee model is now looked upon as dysfunctional and unproductive.

That being said, there is one key committee within our association, and that is our state Government Relations Committee (GRC). This committee serves a very important role in guiding our legislative work, and as a result serves a very important role in protecting members.

Our state-specific GRC is comprised of volunteer member agents. And don’t assume that these agents have strong political backgrounds or ties – for the most part, these agents simply have an interest in the legislative process in their state, and how it affects independent insurance agents.

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OCTOBER 2015

The reason the GRC is an important one is quite practical – in order for our advocacy staff to understand how proposed legislation and regulation impacts an independent agency, we must understand how an independent agency operates. Committee members are asked to consider various proposals that come to us and weigh in on what it means for an agency.

Take, for example, a recent measure regarding MVRs. As part of the state budget proposal, the cost of MVRs was to increase. It was the perception of our staff that member agents were still pulling numerous MVRs as part of the front-line underwriting process and that this fee increase would have a significant impact on agencies. However, through feedback from the GRC, we learned that MVRs are not used as heavily in agencies and come much later in the application process, if at all. As a result, our staff did not spend considerable time and resources opposing this measure, allowing us to focus in other areas.

The committee is both informal and formal in nature. The bulk of the work is conducted via group email discussions on particular issues and questions. When staff is presented a question or scenario at the state capitol, communication to the GRC is made to assist in answering.

The GRC is also kept in the loop on legislative updates – both our work at the capitol, as well as any new developments from the legislature or state regulators.

On the more formal side, each state GRC has several in-person meetings per year, where a full agenda is prepared and consensus is obtained from the group on our legislative strategy and direction.

“Serving on IA&B’s government relations committee is very rewarding,” says George Komelasky, an IA&B of Pennsylvania GRC member. “It allows me to provide input which helps steer our legislative direction. I feel it’s a way to contribute to my association and give back to my industry.”

Committee members serve two-year terms and are eligible to serve successive terms. While our committee has members who have volunteered multiple years to the GRC, our staff is constantly looking to bring in new GRC members in order to keep the perspective fresh.

Additionally, the GRC often serves as first step for members who want to become more involved in association, including consideration to serve as a director on the IA&B Board.

To learn more about the GRC and to express interest yourself, please visit IABforME.com/volunteer. n

Jason Ernest, deputy CEO and counsel for IA&B, provided this article.

Meet your Delaware Association of IA&B Government Relations Committee* Mary T. Rowland, CPCU, chairwoman Harry David Zutz Insurance Inc. Wilmington, Del. John B. Allen, CIC Allen Insurance Group Wilmington, Del. Andrew P. Cousins, CIC L&W Insurance Inc. Dover, Del. Noel L. “Lee” Dotson, CIC, AAI Bellevue Insurance Services Wilmington, Del. James M. Watkins Pfister Insurance Inc. Dover, Del. Bryan Willey Harrington Insurance Agency Dover, Del. Lawrence A. Wilson, CIC, CPIA, CPCU, ARM S. T. Good Insurance New Castle, Del. John S. Yasik, CIC Poland & Sullivan Insurance Inc. Newark, Del. Beverly Sisson, lobbyist BHM Insurance Services & Government Relations, LLC Dover, Del.

* The list is current as this issue of Primary Agent went to print.

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OCTOBER 2015

COMING ATTRACTION:

FLSA OF TOMORROW HOW THE OVERTIME REGULATION COULD CHANGE

By Karen H. DiGioia

Suspense. Drama. The Fair Labor Standards Act and the Obama Administration’s proposed changes to it have all the characteristics of a cinematic success (except perhaps romance). On the following pages, our HR consultant, Karen DiGioia, offers the big picture: what could change and how to prepare.

I

f it’s good enough for Hollywood, it’s good enough for me – the “triquel”! What’s a triquel, you may ask? To the best of my knowledge, it’s not a real word but, for our purposes here, a triquel is the follow-up to a sequel, and that’s what this article is.

In this column, we’ve spent time talking about the Fair Labor Standards Act (FLSA), not once but twice before (the April and October 2014 issues of Primary Agent magazine; see box on page 27). Thanks to the proposed regulation changes released by the U. S. Department of Labor (DOL) in July of this year, we’re going to talk about it again.

For business owners and managers, it’s important to understand the changes that are proposed and the potential impact on your business. The purpose of this article is to allow you to plan for what is likely to occur in the near future. I will focus on the big picture in terms of changes, impact and planning.

Once the regulation changes are finalized, there’s always room for a “fourquel” to focus on all the details of the final regulation changes.

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WHAT’S THE FLSA? Just in case you missed the previous articles, let’s start with a quick review.

The FLSA was first enacted in 1938 and has been amended repeatedly over the years. Prior to the current proposed revisions, the most recent revision was in 2004. This act, administered and enforced by the Wage and Hour Division of the DOL, sets the standards for minimum wage and overtime and also sets child labor provisions. The FLSA includes very specific categories and definitions regarding which positions are exempt from overtime pay (exempt positions) and those for which overtime pay is required for time worked in excess of 40 hours in a work week (nonexempt positions).

Details about the FLSA as it exists today can be found by reviewing the April 2014 issue of Primary Agent (see box on page 27).

WHAT ARE THE PROPOSED CHANGES? In March 2014, a Presidential memorandum was released requiring the update and modernization of current overtime regulations. It stated that: Regulations regarding exemptions from the Act’s overtime requirement, particularly for executive, administrative,

26

and professional employees… have not kept up with our modern economy.

Following this Presidential call to action, it took until July 6 of this year for the proposed revisions to be published by the DOL. As I write this article, we are in the 60-day comment period which is scheduled to end on Friday, Sept. 4, 2015. (But, as things tend to go, by the time you are reading this article, this comment period may have been extended.)

The primary changes that are proposed are: 1. Increase in the salary threshold from $455 per week ($23,660 per year) to $970 per week ($50,440 per year).

This new threshold is based on the 40th percentile of weekly earnings for full-time salaried workers. For the first time ever, the DOL has proposed that this threshold be subject to revision on an annual basis – tied to either the 40th percentile calculation or to the CPI-U. Either way, the DOL would determine the new threshold each year. (In case you were concerned, you would have to calculate it.)

2. Increase in salary requirement for qualification as a “highly-compensated employee” from $100,000 to $122,148. As with the salary threshold, the proposal would allow for annual increase to this level as well.

OCTOBER 2015

3. Historically, bonus payments have not been included in the “compensation” total to which the weekly salary threshold is applied. The DOL is considering inclusion of nondiscretionary bonuses and incentive payments (but only those paid on a monthly or more frequent basis) as compensation applied to the salary threshold test.

Currently, no changes have been proposed to the duties tests which are utilized to determine qualification for exemption (as detailed in the April 2014 issue of Primary Agent), however, the DOL has requested feedback regarding the duties test, and it is possible that the final regulation will include changes to these. In asking for feedback, the DOL has included five questions related to the duties test, and these questions give us clues to additional changes that could be part of the final regulations.

1. Should any changes be made to the duties tests?

2. Should an employee have to spend a minimum amount of time on exempt duties to meet the exemption requirements?

as flexible as you currently may be with these employees. (No more “Sure, it’s no problem if you leave early for that doctor’s appointment.” or “It’s fine if you work from home that day.”)

The good news is that these regulations are not expected to be finalized until later this year, at the earliest, and will not go into effect until sometime in 2016. This means you have time to be proactive and plan.

WHAT IF ANYTHING SHOULD I DO NOW TO PREPARE? Do an analysis of any exempt employees who are paid a salary of less than the anticipated new threshold.

If you have exempt employees who will not meet the new salary threshold, begin looking at the number of hours that they are typically working each work week. If it’s in the neighborhood of 40, the impact of re-classification to non-exempt should be minor. However, if you have employees who are regularly

3. Should regulations parallel the California rule which requires an exempt employee to spend 50 percent or more of his/her time on the primary duty of the job?

4. Should the DOL consider returning to a short and long duties tests format, as it did before 2004, where a longer and more detailed set of requirements must be met for exemption when the employee’s salary does not meet the salary test?

5. Does the current executive exemption test that allows concurrent performance of exempt and nonexempt tasks adequately differentiate between exempt executives and employees who are not exempt executives?

WHAT IS THE POTENTIAL IMPACT OF THESE CHANGES? The changes, once finalized, will have a significant impact on all employers regardless of size, industry or geographic location.

According to the DOL’s estimate, 11 million employees will be impacted by these changes. Eleven million! (At least they don’t all work for you!)

Many employees who have been classified as exempt (and therefore not eligible for overtime compensation) will no longer qualify for the exemption. This can have an impact not only on your overtime expenses, but also on the way these employees can work. As non-exempt employees, they will need to record their work time. At best, it will become more challenging to be

FLSA FLASHBACK READ THE original Primary Agent magazine article (from April 2014) and its sequel (published in October 2014) that our HR consultant penned on the Fair Labor Standards Act (FLSA) by visiting our website.

Unravelling the exempt vs. non-exempt mystery IABforME.com/resource_center/ exempt_vs_nonexempt How the FLSA applies to agency staff IABforME.com/resource_center/ FLSA_agency_staff

27

working well in excess of 40 hours, you will experience an impact. Your options here will be to:

ADDING STAFF

1. Prepare to pay a boatload (it’s a technical term) of overtime 2. Adjust the base salary to meet or exceed the new threshold 3. Reallocate responsibilities to fit into 40 hours a week 4. Add staff Admittedly, some of the above options are better than others.

Chances are, option 1 isn’t at the top of your list. Option 2 is reasonable only in those cases where the base salary is already close to the new threshold and an adjustment will involve a minor increase to expenses. In most cases, option 3 or 4 is your best bet.

With option 3, you’ll want to look at whether there are options for reallocating work that will decrease or eliminate all of those extra hours. I’m certainly not recommending that you pile another employee under loads of work just to avoid paying overtime to other employees, but this could be an opportunity to “equalize” workload.

In some cases, reallocation of work won’t be an option because everyone is already at their limit. In this case, option 4 may be your most cost-effective option. For example, if you currently have two employees who are working 60 hours per week (I hope you don’t, but if you do), it would be more cost effective to have three employees working 40 hours a week than to start paying those two employees 20 hours of overtime each week. Keep in mind: The numbers don’t have to be so extreme for a staffing increase to be appropriate. Addition of a part-time resource or two working 10 or 20 hours a week might be enough.

Be prepared for the potential need to reallocate work.

All employees do nonexempt work. However, if the final regulations include a quantitative percentage test that is applied to the duties test (such as a floor on “non-exempt” work or a 50 percent requirement for the primary-duties definition), you may need to ensure that exempt employees are not spending too much (however that ends up being defined) of their time doing non-exempt work or that the primary duty definitely takes up 50 percent or more of an exempt employee’s time. This may prove challenging for small businesses where there is often a need for everyone to pitch in and do whatever is needed. But, challenging or not, it may be necessary in the future to get more particular to “who does what.”

Know what to say to an employee who might approach you about his or her classification before the new regulations are finalized.

The proposed regulations, currently, are strictly that – proposals.

There is no need to make any change today. If you are in compliance with the current FLSA, you are fine. However, you

28

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may have employees approach you with concerns. The best thing to do at this time is to let them know that you are aware of the proposals and are watching to see what the final regulations require. Assure them that you will be compliant with the final regulations and will make any changes appropriate at that time.

Also, educate any other key employees in the agency about the proposed regulations and how to respond if an employee approaches them.

Of course, if the comment period is still open when you are reading this article, feel free to provide your feedback to the DOL. So, take the time now to plan for the future, as we think it will look, but don’t make any changes yet. If you have any questions or need clarification, there is a good bit of information on the DOL website and lots of articles on the Internet. And, as always, as an IA&B member benefit, reaching out to me is an option.

I’m just a phone call or email away: 610-779-3870 or karen@mostellerhr.com.

And make sure to pre-order your tickets now for the early 2016 release of FLSA – The “Fourquel”! See you there! n

Karen H. DiGioia provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm. Reach out to Karen for more information on conducting an HR audit or with other human resources questions.

IA&B’s HR Solution© is a compilation of products and services – available exclusively for our member agencies – that simplifies establishing or improving your human resources program. It includes base-level consultation and discounted professional services from Mosteller & Associates. Learn more at IABforME.com/emp_mgmt.

OCTOBER 2015

CLASSIFIED A DV E R TI S E M E N TS

My Events

PERSONAL LINES ACCOUNT MANAGER

October & November 2015 DATE TOPIC

LOCATION

OCTOBER 6 6 6-8 7 7 8 8-9 13 13-15 14 14 20 20-22 21-24 27 27-28 27-29 28 28 28 29 29 29

William T. Hold: Policy Language Surprises Cyber, Equipment Breakdown & Electronic Data Property & Casualty Licensing Study Course William T. Hold: Policy Language Surprises CISR Personal Lines Miscellaneous E&O Risk Mgmt.: Meeting the Challenge of Change James K. Ruble Graduate Seminar CISR Commercial Casualty II Life & Health Licensing Study Course CISR Agency Operations CISR Elements of Risk Management William T. Hold: Policy Language Surprises Property & Casualty Licensing Study Course CIC Commercial Property Institute CISR Commercial Casualty I Executive Management Conference Property & Casualty Licensing Study Course CISR Commercial Casualty II CISR Commercial Property William T. Hold: Policy Language Surprises CISR Agency Operations William T. Hold: Writing Commercial Accounts Business vs. Personal Auto

Altoona, PA Baltimore, MD Bethlehem, PA Wilkes-Barre, PA Pittsburgh, PA Pittsburgh, PA Ocean City, MD Baltimore, MD Pittsburgh, PA Philadelphia, PA Lancaster, PA Erie, PA Mechanicsburg, PA Pittsburgh, PA Bethlehem, PA Allentown, PA Philadelphia, PA Wilkes-Barre, PA Hagerstown, MD Mechanicsburg, PA Newark, DE Reading, PA Mechanicsburg, PA

NOVEMBER CISR Elements of Risk Management 3 3 E&O Risk Mgmt.: Meeting the Challenge of Change 4 CISR Commercial Casualty II CISR Elements of Risk Management 5 Business vs. Personal Auto 10 William T. Hold: Writing Commercial Accounts 10 Life & Health Licensing Study Course 10-12 CIC Commercial Casualty Institute 11-14 James K. Ruble Graduate Seminar 16-17 Business vs. Personal Auto 17 CPIA Position for Success 17 CISR Personal Residential 17 CISR Commercial Property 17 Business vs. Personal Auto 18 CPIA Implement for Success 18 CISR Personal Lines Miscellaneous 18 CPIA Sustain Success 19 CISR Personal Residential 19

Philadelphia, PA Bethlehem, PA Pittsburgh, PA Pittsburgh, PA Newark, DE Baltimore, MD Philadelphia, PA Hunt Valley, MD Lancaster, PA Baltimore, MD Pittsburgh, PA Waldorf, MD Altoona, PA Philadelphia, PA Pittsburgh, PA Reading, PA Pittsburgh, PA Mechanicsburg, PA

Total charge of personal lines book of business, to include quoting, servicing current agency book while maintaining a focus on expanding existing accounts through cross-selling and rounding out coverages. Profit sharing included in compensation package and possibility of ownership. Reply to Jerry@FarrellInsuranceAgency.com.

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