Primary Agent - September 2025

SEPTEMBER 2025

TONY “G” GIANGIORDANO SHARES HIS ENTHUSIASM FOR INSURANCE, COMMUNITY & MARYLAND POLITICS

EXCLUSIVE MEMBER MAGAZINE

ALSO INSIDE LEGISLATION IMPACTING INDEPENDENT AGENTS

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SEPTEMBER 2025

CONTENTS FEATURED 8

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INTERVIEW WITH TONY “G” GIANGIORDANO Tony "G" Giangiordano built his business – IA&B Member Agency AAG Insurance – in his hometown of Bel Air, MD, where he now serves as a Harford County Council member. In this interview, he shares what motivates him and why he believes collaboration makes our industry stronger.

THE LATEST LEGISLATION IMPACTING INDEPENDENT AGENTS IA&B Government Affairs Director John Savant shares our organization’s key advocacy efforts which are shaping the landscape for independent agents in Pennsylvania, Maryland, and Delaware.

Facebook.com/IABforME LinkedIn.com/company/IA_and_B Instagram.com/IA.and.B YouTube.com/@IA_and_B IA&B Podcasts can be found at:

MONTHLY 2 PRESIDENT'S MESSAGE 3 CLAIRE-IFICATION

IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware.

Periodical postage paid at Mechanicsburg, PA and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2025-09, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2025. All rights reserved. No material JUNE 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.

4 COVERAGE CORNER 6 NEWS & NOTES 12 PICS & POSTS 21 UPCOMING EDUCATION IABforME.com |

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CHAIR OF THE BOARD'S MESSAGE

IA&B IS YOUR VOICE In this issue, you’ll hear from our staff lobbyist, John Savant, about the legislative issues we are currently working on. I’d like to weigh in as well.

IA&B’s advocacy efforts are often behind-the-scenes work.

Our team is constantly lobbying in Harrisburg, Annapolis, and Dover to ensure our members are protected. The independent insurance agent isn’t always understood, or considered, when new legislation is drafted. Often, this legislation can be very detrimental to your business (learn more beginning on page 14).

That’s where we step in. Our singular goal in the advocacy area is to ensure that you can sell insurance as easily as possible.

I also want to remind you that advocacy efforts aren’t always in the state capitol buildings. Our relationships with the insurance departments in our three states are extremely solid, a concerted effort that has taken several years to build. When we reach out to our regulators with concerns, they know who we are, and they listen. And, just as often as we reach out to them, they consistently come to us for guidance about the independent agent.

Finally, insurance carrier advocacy is equally important. IA&B is the go-between when carrier/agent issues get a little touchy.

We are respected by companies, and our voice carries weight when we need to assert agent protection.

This three-pronged advocacy effort is one of the least noticed, yet biggest impacts, of IA&B membership. Unfortunately, no one else spends this time and effort protecting the independent insurance agent. As you go about your day-to-day business, please know that IA&B has your back through our strong advocacy efforts. We are your voice in the dog-eat-dog world we live in.

Onward and upward,

INSURANCE AGENTS & BROKERS 650 Wilson Lane, Suite 200 Mechanicsburg, PA 17055 191 Main Street, Annapolis, MD 21401 800-998-9644 | IABforME.com

IA&B BOARD OF DIRECTORS OFFICERS Andrew Enders, Esq. - Chair Enders | Harrisburg, PA

Kate Dawson, CPIA - Vice Chair

Ferri Dawson Insurance | Murrysville, PA

MEMBERS Greg Bennett

Lisa Parry, CPIA

Tony Cusati

Bill Purdy

Michael Gaetano

Kent Reynolds, CIC

Debra McAfee

David Rivell, CIC, CRM

Michael McGroarty, Jr., CIC

Christy Rose

McGroarty & Bradburn Insurance Pittsburgh, PA

Avery Hall Insurance Salisbury, MD

Hunter McHugh

Ashley Stafford, CPIA

Famous & Spang Associates Aberdeen, MD Sitter Insurance LLC Erie, PA The Hartman Group Montoursville, PA McAfee Insurance Agency, LLC Wilmington, DE

McHugh Insurance Group Wilmington, DE

Shayne McIntosh, CIC

Parry Insurance Langhorne, PA

Purdy Insurance Agency, Inc. Sunbury, PA Blue Ridge Risk Partners LLC Hagerstown, MD Element Risk Management West Chester, PA

Williams Insurance Agency, Inc. Rehoboth Beach, DE

Michael Thomas

JPI Insurance Associates Dillsburg, PA

Lighthouse Insurance Svcs Gambrills, MD

Chris Miller, CIC

Kyle Zehr FIFS, LLC Telford, PA

Miller Insurance Protection Team Jonestown, PA

Jill Nye

Gunn-Mowery, LLC Lemoyne, PA

Jason F. Ernest President & CEO

NATIONAL DIRECTORS Mike Ertel (PIA)

AssuredPartners | Columbia, MD

Diana Hornung, CIC (IIABA)

IOA National, Inc. | Wilmington, DE

Mark Monroe (IIABA) Downingtown, PA 2

SEPTEMBER 2025

CLAIRE-IFICATION

CLAIRE-IFICATION IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR Are you a member with a question?

Contact Claire to find the answer at 717-918-9202 or ClaireP@IABforME.com.

QUESTION: Can I license a remote worker living abroad through a vendor?

ANSWER:

▲ U.S. citizens can apply for a license in any state.

The short answer is No — and here’s why.

▲ Non-U.S. citizens must have valid work authorization in the U.S.

BACKGROUND: REMOTE WORK AND LICENSING Since the pandemic, remote work has become common. Many agency owners now use remote workers to expand their talent pool or retain valued staff who relocate. For example, a licensed producer living in Nebraska can work for an agency based in Delaware (or any other state) by obtaining a non-resident license in the state where they will be selling, soliciting, or negotiating insurance.

This setup is straightforward.

DOMESTIC VS. INTERNATIONAL WORKERS However, the rules change when we talk about international remote workers. This FAQ addresses a key distinction: Can someone living abroad be licensed in the U.S. to sell insurance? And does citizenship play a role?

U.S. PRODUCER LICENSING REQUIREMENTS While licensing rules can vary slightly by state, these general requirements apply across the board:

○ This typically means providing proof of work eligibility, such as: • A Green Card (Form I-551) • A valid I-9 form

WHAT IF I USE A VIRTUAL ASSISTANT OVERSEAS? If you contract with a third-party vendor to hire a virtual assistant located outside the U.S. — for example, someone working from the Philippines — they are not eligible to become a licensed producer.

That’s because they do not have authorization to work in the U.S., and that’s a fundamental requirement for licensing. Even if some state statutes appear vague on this point, enforcement is a practical concern. Regulators must be able to hold licensed producers accountable, which is much easier when the individual is physically located in the country.

STATE-SPECIFIC EXAMPLE: PENNSYLVANIA Some states go a step further. For instance, Pennsylvania’s Producer IABforME.com |

Licensing regulation requires that an individual applying for a resident license must either: ▲ Live in Pennsylvania, or ▲ Physically work in Pennsylvania This means that if your employee lives in another state, they must get a resident license in that state and a non-resident license in Pennsylvania to work with your PA agency.

BOTTOM LINE ▲ U.S. citizenship is not required to obtain a producer license. ▲ However, authorization to work in the U.S. is required. ▲ International virtual staff without U.S. work authorization cannot become licensed producers.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice.

Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

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PARAMETRIC INSURANCE: WHAT IS IT AND HOW CAN IT HELP YOUR CLIENT?

By Cathy Trischan Traditional property or business income insurance responds when there is direct damage or loss to property by a covered peril. Property insurance is based on the principle of indemnity, the idea that insurance should restore the insured to the financial position they were in prior to the loss. When a claim is made, the insured must quantify the loss and support the amount claimed. The claims process takes time and can be difficult for many policyholders, especially in the case of a complex business income loss.

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Parametric insurance is different. Its trigger is the occurrence of a specific event such as an earthquake, flood, or hurricane. Coverage can even be written to cover perils not normally covered by property insurance, such as heavy rainfall or lack of rainfall.

Parametric insurance is sometimes referred to as index-based insurance because coverage is tied to an established index. The index must be one that is objective and transparent and typically involves data available from an independent agency such as the National Hurricane Center’s Saffir-Simpson Scale or SEPTEMBER 2025

the US Geological Survey’s (USGS) earthquake magnitude readings.

Premiums for parametric insurance are based on the likelihood of an event happening, rather than the characteristics of the insured’s property. Payment of the claim is quick. Once the index threshold is reached (e.g., hurricane of a certain minimum wind speed within a defined area), the insured who has suffered financial loss receives payment without going through a claims adjustment process. The policy is often structured with

COVERAGE CORNER different amounts payable at different thresholds. A higher amount might be paid, for example, for a category 5 hurricane than for a category 4 hurricane.

Parametric insurance does not replace traditional indemnitybased insurance but can be written to complement it. Consider the following example: A large construction project is insured using a Builders Risk policy.

If high winds cause damage to the project, Builders Risk responds as wind is typically a covered cause of loss, and the project has been damaged. Coverage may even apply to lost income and additional expenses due to the delay in completion of the project.

What if there is a delay in completion of the project due to the high winds, but there is no damage to the project? What if construction must be stopped for ten days because cranes and other equipment cannot be operated in the high winds? Or perhaps construction is paused for two weeks due to heavy rainfall? In both of these examples, Builders Risk will not respond because there has been no damage to the property by a covered cause of loss. Parametric insurance, though, can be written to cover the exposure. Specific weather triggers are named in the policy, and when the trigger is reached, the limit is paid.

Parametric insurance can also help the insured who has sublimits or high deductibles for certain causes of loss. Consider the following example: A department store with a $20,000,000 replacement cost is insured under a property policy.

The policy includes coverage for earthquake damage, but the deductible for earthquake losses is 5% of the building limit ($1,000,000.) Parametric insurance can be written with a trigger tied to USGS’s calculation of the magnitude of the earthquake within a specified distance of the store. If the trigger is met, parametric insurance pays the limit which the insured can use to help offset the deductible. Because payment is not tied to direct damage to the property, the insured is paid even if the store does not sustain significant damage. The insured can use the funds to replace some of the income lost due to reduced foot traffic after the earthquake.

Parametric insurance can help provide an insured with payment for losses not typically covered by insurance. We saw examples of this in our Builders Risk scenario, but here are a few other ways that parametric insurance can help a business. ▲ A hotel in a beachfront town is concerned about loss of income if there is extreme rainfall that causes a decline in tourism.

‘Til next time Cathy Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS, TRIP is IA&B’s commercial lines education consultant. She works with our CIC and CISR programs, as well as our live CE webinars. Catch her at one of our upcoming courses: IABforME.com/education Rather listen?

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LIVE CE WEBINAR

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Learn more from Cathy Trischan in this upcoming CE webinar.

▲ A retail store chain specializing in imported specialty foods is concerned about loss of income if its supply chain is disrupted due to specific weather events in another part of the world.

UNDERSTANDING (FINALLY!) HOW CLAIMS MADE POLICIES WORK

The parametric insurance market continues to grow. Although parametric insurance is not currently purchased by most businesses, it is easy to see the benefit. These policies can be a valuable tool for independent agencies to consider when putting together insurance programs for their clients.

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NEWS & NOTES the guesswork out of the process.

It contains an assortment of best practices, intern activities, and more.

Access the guide: IABforME.com/ HR-resources Questions?

Contact Heather Ulrich IA&B Career Services Director HeatherU@IABforME.com 717-918-9441

MIA REPORT ON TELEMATICS USE

Top: Group networking at Intern Day. Bottom: Panelists from different stages in their careers answer questions for interns.

IA&B HOSTS FOURTH ANNUAL INTERN DAY Thirty interns from IA&B member agencies and company partners attended IA&B Intern Day, held on July 31 – National Intern Day – at the IA&B office in Mechanicsburg, PA. These exceptional young professionals spent the afternoon participating in small group discussions, listening to a young agent panel, and hearing from industry speakers.

A special thank you goes to our young agent panelists: Ava Burchell, of McConkey Insurance & Benefits; 6

Molly Miller, of Hinkle Insurance Agency; and Seth Tarboro, of EHD. We also thank our speakers: Daniel Metcalf, of Cyberfin, who shared how AI is being used in the industry; Kristen Fike, of Central Penn College, who spoke on professionalism in the workplace; and Julie Webb, of JMW Collective, who presented on networking and making connections.

INTERN GUIDE FOR INSURANCE AGENTS Contemplating bringing on an intern?

Check out IA&B’s recently released guidebook – The Independent Agent’s Guide to Creating a Successful Internship Program – to help take SEPTEMBER 2025

The Maryland Insurance Administration (MIA) this summer released a report on auto insurers’ growing use of telematics. The report relies on the results of a survey to 18 insurers, which represented approximately 90% of Maryland’s auto insurance market in 2023.

The MIA undertook the survey in response to consumer concerns about the accuracy of telematics data and its use for possible premium increases, as well as how data is stored and whether it is shared with others.

The MIA identified these key findings: ▲ The number of policies enrolled in a telematics program increased by about 45% from 2021 to 2023. ▲ About 55% of the policies enrolled in some type of telematics program saw a change in premiums. At renewal in 2023, about: ▲ 31.2% of policies experienced a premium rate decrease;

▲ Privacy notices vary from insurer to insurer, and there are currently no requirements regarding how the notice must be written.

question could end up placing agents in a “he said/she said” situation with no clear proof that the question was asked of the applicant. IA&B then approached ACORD, explaining that an update would strengthen the form’s posture on fraud and limit agents’ exposure when policyholders leave out information.

▲ In general, telematics programs require the active involvement of policyholders to ensure that data is being collected accurately.

The IA&B Government Relations Committee provided feedback on the new ACORD form question, which now reads:

▲ 23.6% of policies experienced a premium rate increase; and ▲ 45% of policies experienced no change in premium.

The MIA intends to use the survey data to inform regulatory policy regarding telematics and to advise on potential future legislation.

IA&B MEMBERS PROMPT ACORD 90DE MODIFICATION The Delaware Department of Insurance this summer approved the revised ACORD 90-DE, which carries a 07/2025 edition date. The modified form incorporates a new question 18 about transportation network and vehicle-sharing companies.

This change is the result of IA&B’s advocacy. During a legislative event organized earlier this year by IA&B’s Government Relations Committee, members raised the issue that ACORD 90-DE did not expressly ask applicants whether their car will be used for ride-sharing services.

(Instead, it was covered by the general fraud statement at the end of the form.) This was inconsistent with some company proprietary forms.

Importantly, this discussion occurred in the context of a proposed bill that would add a new crime of application insurance fraud. Failure to ask the

Will any vehicle for which insurance is requested be used for a rideshare, a vehicle share and/or Transportation Network Company, such as Uber, Lyft or Turo?

REMINDER ON USING THE LATEST FORMS Applying updates to your agency management system helps to ensure that you are using the most up-todate forms, which can be introduced periodically throughout the year.

What’s more, updating your agency management system prevents a licensing-agreement violation.

It’s a violation to issue prior versions of a superseded ACORD form once a new form has been introduced. This requirement stems from the licensing agreement between ACORD and your agency management system vendor (AMS, Applied, etc.).

PA ADDS ETHIC, FLOOD CREDITS

FLOOD TRAINING REQUIREMENT: Producers with a Property & Casualty line of authority must complete 2 hours of Flood CE per licensing period.

ETHICS TRAINING REQUIREMENT: All producers must complete 3 hours of Ethics CE per licensing period.

Visit Sircon.com to view your CE transcript and check your due dates to stay current with your license requirements.

HOW TO COMPLY IA&B offers these upcoming live webinars that can assist producers in their compliance: An Hour with Dave: What Everyone Must Know About Flood (1 Flood credit) Sept. 17, 2-3 PM Ethics in Insurance: Protecting the Client and the Agency (3 Ethics credits) Sept. 18, 1-4 PM Murky: Understanding Flood Coverage, Rules, and Claims (2 Flood credits) Sept. 22, 1-3 PM Ethics, Diligence, Success: What Agencies Need to Know (3 Ethics credits) Oct. 9, 1-4 PM Register today: IABforME.com/eventregistrations 800-998-9644, option 1

Important Continuing Education (CE) Update As a result of enacted legislation, effective April 29, 2025 in Pennsylvania: IABforME.com |

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Q&A with

TONY GIANGIORDANO Tony “G” Giangiordano is the owner and president of AAG Insurance, which he founded over 25 years ago in Bel Air, MD. He volunteers on the IA&B of Maryland Government Relations Committee and serves as vice president of the Harford County Council.

Q. You studied business and finance in college. What prompted you to focus on insurance specifically, and how did your career unfold?

A. I first got a taste of the insurance world when I bought my sister’s 1973 Barracuda and went to speak with our local Allstate agent, Tom O’Shea, to see what it would cost to insure it. That visit planted a seed.

After college, I started out in commercial lending but knew early on that I wanted to own my own business. I interviewed with Allstate before commercial lending five times, but at the time, I had no sales experience — just a strong work ethic and the drive to build something of my own. They told me they were going to place me in a Sears store, since I was fresh out of college and still learning the ropes.

Q. Tell us about AAG Insurance and how it has grown.

A. I wanted to build my business in my hometown, where I had deep roots — from playing high school sports to being active in the Jaycees and other local organizations. That local connection was important to me, and I knew it would make a difference.

I got my start in a district office with Nationwide, with no clients and just a phone. I was literally dialing for 8

dollars, working three nights a week until 9 PM, making cold calls and trying to build relationships. It was tough, but I was determined.

As the business grew, I knew I couldn’t do it alone. I started bringing people in to help and build a stronger organization. Over time, I learned that you have to be flexible with staff — if you’re not, someone else will be.

Whether it’s another agency or a corporate job, talented people have options. I made it a point to create an environment where people wanted to stay and grow.

Q. What’s your favorite thing about working in our industry?

A. What has always motivated me — and still does — is helping people. For me, it was never just about selling a policy; it was about making a promise — a promise that they would be taken care of and that I would always be available when they needed help. I took the time to explain why the coverage mattered, what it protected, and how it could mean the difference between recovering from a loss or being devastated by it.

Over the years, I came to understand that every policy I wrote was about more than insurance — it was about protecting someone’s dream, their family, their home, or their livelihood. That deeper sense of purpose is what kept me going through the long hours and the hard work it took to build a business from the ground up.

Q. You’re a Harford County Council member. How and why did you get involved with local politics?

A. At the end of long days, I used to wind down at a local restaurant where I’d have a cigar and relax. It became a bit of a routine — and there were always a few familiar faces

SEPTEMBER 2025

ON THE COVER doing the same. One couple in particular was there often, and over time, they started to notice how people would come up to me with questions or ask for advice while I was sitting there. They also saw me taking calls, helping clients, and staying engaged even after hours.

One day the husband said, “You’d make a good politician.”

I laughed it off and said, “Thanks, but no thanks.” The husband was clerk of the court, and the wife was a delegate in Annapolis.

But they didn’t give up. For nearly a year, they kept planting the seed — reminding me of how involved I already was, how much I cared about the community, and how people naturally came to me for help. Eventually, at a wedding, after a long conversation (and maybe a few drinks), I finally said yes.

Q. Thank you for serving on the IA&B Government Relations Committee! What would you tell other independent agents who are considering getting involved?

those diverse viewpoints can challenge assumptions and lead to better decisions.

It’s that kind of collaboration that makes our industry stronger. When we listen, share ideas, and learn from one another, we all grow — and we’re better equipped to serve the people who rely on us.

Q. When you’re not working, how do you enjoy spending your time?

A. Like many agents, I enjoy golfing when I can find the time. I’m also proud to be involved with a local charity that, over the past 10 years, has given out over $1 million to those in need. I stay active in the community through events like local parades and, for the past two years, helping host the largest Italian festival in the state of Maryland with the Society of Italian American Businessmen.

Outside of work and community service, I still enjoy a good cigar, spending time at the gym, traveling, visiting the casino now and then, and—most of all—being with friends.

A. I believe that input from people with different experiences helps everyone see new perspectives — perspectives that might not be obvious to others.

Whether it’s in the insurance business, or public service,

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PLATINUM PARTNER PROFILE

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

Progressive and Independent Agents: An Enduring Partnership for the Road Ahead Progressive has long believed that investing in independent agents is critical to mutual, long-term success. With their focus on becoming consumers’, agents’, and business owners’ No. 1 destination for insurance and other financial needs, Progressive continues to look ahead to the future of the channel with an eye on profitable growth.

Indeed, Progressive maintains their leadership as the number one writer of personal auto and commercial auto in the independent agency channel. They’re the number one motorcycle insurer, as well as a leader in both boat and RV insurance. In addition, Progressive continues to invest in specialized offerings, like home and property products and business insurance for select agents. And as the second largest personal auto insurer in the country, independent agents can benefit from the power of Progressive’s brand to fuel their own growth.

Designing a blueprint for the future Following the announcement of the Progressive Home Blueprint for the Future (or, simply, “Blueprint”) strategy, Progressive has outlined their plans to re-focus and strengthen their homeowners business, all with the goal of remaining agents’ preferred option for their home-andauto bundles.

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Together with partner agents, Progressive will build a high-quality, lasting, and mutually profitable bundled property business. To achieve this vision, they will continue to partner with and reward independent agents who prioritize bundled, owner-occupied homeowners, condo, and manufactured home policies that align with Progressive’s rigorous underwriting and cost-sharing expectations.

Offering comprehensive partnership programs to support and reward agents Independent agents can also choose their path to continued growth and enhanced earnings in Progressive’s Paths to Partnership program.

Paths to Partnership offers a transparent commission structure that allows independent agents to earn more as they place more—and more preferred—business with Progressive. The program consists of two paths to enhanced earnings: Platinum for agents focused on preferred home-and-auto bundles, and Priority for those growing their personal auto books. These programs offer additional bonus opportunities and funded marketing benefits to reward agents’ successes and support their personalized business goals.

SEPTEMBER 2025

Thank You Investing in technology and ease of use Progressive understands what independent agents do best: building relationships and growing their business thanks to their trusted expertise. That’s why Progressive continues to invest in cutting-edge technology and data insights to help agents focus on growing efficiently.

ForAgentsOnly.com (FAO), Progressive’s proprietary and agent-dedicated quoting, servicing, and training portal, offers a differentiating web experience. Agents can leverage advanced features like integrated multi-product quoting and automatic data-fill technology to save time and keystrokes. On the servicing front, Progressive continues to focus on full integration of third-party rater and agency management systems so agents can choose how to manage their workflows.

Customers can take advantage of Progressive’s innovative technology solutions, too. With Progressive’s mobile app, customers can carry their insurance policy in their pocket, in addition to handling simple, self-servicing tasks. And usage-based insurance (UBI) options like Snapshot® for Personal Auto and Snapshot ProView® for Commercial Auto make it easier for customers to influence their rate based on their own safe-driving habits. Agents can leverage the significant savings opportunities available through these UBI programs to grow—and retain—their Progressive books.

Thanks to our PLATINUM PARTNERS for supporting the independent agent network.

Erie Insurance Ironpeak (formerly Iroquois) Keystone Millers Mutual Insurance NJM Insurance Group Penn National Insurance Plymouth Rock Assurance Progressive

Growing our shared business Progressive is committed to continued investments in independent agents. For more information on how you can get started quoting and selling Progressive, please visit https://aqn.foragentsonly.com/.

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Tim Wonder IA&B VP-Membership 717-918-9223 TimW@IABforME.com 11

PICS & POSTS

PICS & POSTS

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SEPTEMBER 2025

October 15-16 Bear Creek Mountain Resort Macungie, PA

For more information: IABforME.com

IA&B works on your behalf to ensure that state legislators and regulators understand the issues affecting agents.

And your financial support amplifies your message. Please consider contributing.

More information at iabforme.com/political_advocacy

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A Look at the Latest Legislation Impacting Independent Agents

By John Savant Each year, thousands of bills are introduced across Pennsylvania, Maryland, and Delaware, many of which carry direct or indirect consequences for the insurance industry. IA&B plays an active role in tracking and influencing legislation that impacts independent agents, advocating for practical, pro-consumer policies, and defending against proposals that could disrupt the marketplace.

In the first half of 2025 alone, IA&B tracked more than 160 bills in Pennsylvania, 45 in Maryland, and 14 in Delaware, out of a combined 5,800+ bills introduced across the three states this year. Below is a look at some of IA&B’s key advocacy efforts shaping the landscape for independent agents in each state.

Pennsylvania:

Leading the Push to Raise Minimum Limits For years, IA&B’s top priority in Harrisburg has been increasing Pennsylvania’s outdated automobile insurance minimums. Pennsylvania’s $5,000 property damage minimum stands alone as the lowest in the entire country and has not been updated since the 1970s, when the average cost of a new vehicle was $4,441.

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A major milestone came in June with the introduction of House Bill 1666, sponsored by IA&B member and Rep. Jeff Olsommer (R-139), which would raise the state’s property damage (PD) minimum from $5,000 to $25,000. The bill has garnered bipartisan support out of the gate, with Rep. Tara Probst (D-189) signed on as co-prime sponsor – a key step in Pennsylvania’s Democrat-controlled House.

The bill marks a strategic shift for our efforts to raise the minimum auto limits. In years past, IA&B has always attempted to raise the property damage and bodily injury minimums simultaneously. These efforts came the closest in 2022 when the Senate narrowly passed Senate Bill 676, which would have increased minimums from 15/30/5 to

SEPTEMBER 2025

LATEST LEGISLATION 30/60/15 and eliminated stacking. However, that broader reform has since stalled, in part due to concerns over the impact on premiums. By focusing solely on updating the property damage requirement, Olsommer’s bill aims to significantly improve claim outcomes for PD, while limiting the impact on insurance premiums.

IA&B has played a central role in HB 1666 from its conception and drafting, to spearheading a coalition with aligned organizations, including the Pennsylvania Association for Justice and the Pennsylvania Motor Truck Association. However, with fewer than 3% of introduced bills ever coming up for a vote in the Pennsylvania legislature, the most difficult hurdle still lies ahead: making HB 1666 enough of a priority among state lawmakers for it to move forward. Independent agents: be prepared to raise the issue directly with your legislators.

Your voice could make the difference in turning this momentum into meaningful action.

Maryland:

Defending the Private Auto Insurance Market Maryland’s 90-day sprint of a legislative session was dominated by efforts to address Maryland’s $3 billion state budget deficit, coupled with the looming possibility of grant cuts, as well as layoffs of federal employees and contractors working in Maryland, which would further reduce state tax revenue. These issues resulted in the passage of a new 3% sales tax on IT and data services, despite IA&B opposition.

As in prior years, insurance rating practices drew attention from legislators. IA&B opposed House Bill 148, which would have barred insurers from using not-at-fault accidents in their automobile rating plans. Similarly, Senate Bill 551 sought to prohibit the use of wild animal strikes—such as collisions with deer—as a rating factor.

Both proposals ultimately failed.

IA&B’s advocacy work has not ended now that session is over. This summer, many Maryland automobile insurance policyholders began finding a new surcharge on their premium notices labeled “recoupment of MAIF assessment.” Even if the line is not present, the IABforME.com |

How to Support IA&B’s Advocacy Efforts Every day, IA&B staff and volunteers are in Harrisburg, Annapolis, and Dover, working to protect and strengthen the independent insurance industry and to advocate on issues like those outlined in this article.

AgentPAC is a key part of that effort.

AgentPAC is IA&B’s state-level, bipartisan Political Action Committee. By pooling voluntary contributions from IA&B members, AgentPAC helps elect candidates who understand and support the independent agent and broker community.

Contributions are used to back policymakers— regardless of party—based on their voting records, positions on key issues, and knowledge of how the insurance industry works. For nonincumbents, this understanding is often assessed through candidate interviews.

Learn how to contribute by check or online: Visit IABforME.com/political_advocacy/#PAC.

Or contact IA&B Government Affairs Director John Savant at JohnS@IABforME.com or 717-918-9214.

assessment surely is. Behind that line item lies a chronic underwriting deficit at one of Maryland’s state agencies, which IA&B has warned about for years.

The Maryland Automobile Insurance Fund (MAIF) is Maryland’s residual automobile insurance market. While Pennsylvania, Delaware, and nearly all other states operate their residual market through an assigned risk plan, MAIF is a government agency that offers insurance directly to Maryland drivers. By law, MAIF cannot go insolvent, and Continued on page 16 15

Delaware:

Continued from page 17 when its surplus falls below a certain threshold, it triggers an industry-wide surcharge on all automobile insurance policies. Due to chronically inadequate rates, MAIF’s surplus dropped from $184 million to just $3.5 million over the last 18 years. MAIF’s combined loss ratio has averaged 119% over the previous 20 years, so for every $1.00 in premium collected, MAIF has paid $1.19 in claims and other expenses. This issue has been exacerbated in recent years as MAIF has continued to increase their policy count, using their severely inadequate rates to compete with the private market and pull customers away from the carriers that IA&B members represent.

IA&B has been at the forefront of this issue for years, successfully opposing past legislative attempts to hide future assessments from consumers and working to delay the latest assessment by unlocking $9.6 million left over from the last MAIF bailout in the 1990s. Those efforts culminated in the passage of HB 1098 during the 2025 legislative session, which enacted critical reforms to rein in MAIF. The new law requires MAIF to maintain a minimum surplus under the same standard risk-based capital (RBC) rules that private carriers must follow. If MAIF falls short of these thresholds, the Maryland Insurance Administration (MIA) will now have the authority to subject MAIF to stricter rate review under a “prior approval” process, essentially forcing MAIF to raise its premiums to actuarially sound levels.

Additionally, the MIA has ordered MAIF to phase out its “affordability index,” a rating mechanism that allowed MAIF to continue charging unsustainably low rates to lower income policyholders rather than actuarially sound rates. In addition to supporting the MIA’s decision, IA&B led the opposition to Senate Bill 697, which attempted to sidestep the reform by explicitly allowing MAIF to use policyholder income as a rating factor. While another MAIF assessment is expected to take place in 2026, the cumulative effect of these changes should dramatically reduce the chances of these assessments in the long run.

16

Tackling Storm Chasers & Roofing Contractors In Delaware, IA&B’s Government Relations Committee facilitated in-person engagement between agents and lawmakers throughout the session. This included a January event with leadership from the House and Senate Insurance Committees, as well as agent meetings at Legislative Hall in March. One legislative focus this year was Senate Bill 45, aimed at curbing “application fraud,” the deliberate use of false or misleading information to secure insurance coverage. IA&B worked closely with lawmakers to ensure the bill’s language protected independent agents from being penalized simply because a consumer provided inaccurate or incomplete information to the insurer. In addition, we worked with ACORD to add a question and bring the ACORD 90-DE more in line with proprietary forms that specifically inquire about the applicant’s participation in a transportation-network or vehicle-sharing company in order to limit the risk to our members’ E&O. The Department of Insurance (DOI) approved ACORD's filing of the revised ACORD 90-DE. Another top concern for IA&B is the ongoing challenges in the homeowners’ insurance market, particularly surrounding roofing claims. Across all three states, agents frequently report difficulties securing standard homeowners’ policies for their clients, often resulting in consumers being pushed into the surplus lines market just to obtain basic coverage. In response to rising claims costs and heightened exposure, insurers are increasingly imposing higher deductibles, setting strict roof age limits during underwriting, and shifting from replacement cost to actual cash value (ACV) when calculating losses. As a coastal state, Delaware has been particularly susceptible to these issues.

Delaware lawmakers have taken a leading role in addressing post-storm abuse in the property insurance space. Last year, Insurance Commissioner Trinidad Navarro spearheaded efforts to revise the National Association of Insurance Commissioners’ (NAIC) Public Adjuster Licensing Model Act, incorporating a number of reforms that Delaware had already implemented at the state level. These changes, strongly supported by IA&B, include prohibiting the assignment of homeowners’ insurance benefits to contractors, restricting public adjuster

SEPTEMBER 2025

solicitation in the immediate aftermath of a storm, and cracking down on unlicensed individuals who act as de facto adjusters without proper authority or oversight. IA&B is also pushing for these changes to be emulated in other states.

Contractor Insurance that Measures Up.

While these measures have strengthened protections for consumers, they only address part of the problem, since many of the most aggressive and misleading practices originate not from public adjusters, but from roofing contractors themselves. To directly address this issue, IA&B is preparing to advocate for legislation that targets the root of the problem.

In coordination with the American Property Casualty Insurance Association (APCIA), IA&B is working to advance another national standard: the NCOIL Storm Chaser Model Act, which would prohibit contractors from advising consumers on the terms of their insurance policy, negotiating claims, or offering to pay or waive deductibles as a way to secure business. We expect to have language ready to be introduced when the Legislature returns to session in January.

Insuring Opportunity Through Mutual Success.® Trust Harford Mutual Insurance Group to provide comprehensive property and casualty insurance designed to protect what matters most to your policyholders— their business.

Reach IA&B Government Affairs Director John Savant at JohnS@IABforME.com or 717-918-9214.

In addition to contractors, we write a wide variety of Property & Casualty classes.

Scan the QR code to learn more.

Rather listen?

Also available in audio format at IABforME.buzzsprout.com IABforME.com |

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2024 CONTRIBUTORS PENNSYLVANIA President's Club ($1,000+)

Rita McMullen PDM Insurance Agency

Tod Aronson E R Munro and Company

Laura Mercadante E K McConkey & Company

Shannon Blews Hutton-Blews Insurance LLC

Chris Miller Miller Insurance Protection Team

Michael Gaetano The Hartman Group Greg Gunn Gunn-Mowery LLC Mike Harter E K McConkey & Company Michael McGroarty, Jr. McGroarty & Bradburn Insurance John Olkowski E K McConkey & Company Donna Roper E K McConkey & Company

Governor's Club ($500 - $999) Kathy Barry Kathy Barry Agency LLC David Beck Frank Ebner E K McConkey & Company Andrew Enders Enders Jason Ernest Insurance Agents & Brokers James Fitzsimmons Fitzsimmons Insurance Agency Kurt Gehman E K McConkey & Company Brock Lytle E K McConkey & Company

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Gerry Reichard Keystone Crop Insurance Services LLC Rob Walbeck R E Walbeck Agency

John Hollister KAI Yurconic Insurance Agency LLC

Dan Compton H D Compton Insurance Agency

Kevin Kreider Kreider Insurance Associates

Ryan Cunningham Kellar Insurance Agency

Jay Lemelin

Lee Deng L & D Insurance Services

Shayne McIntosh JPI Insurance Associates David Murray Varcoe Insurance Agency Roger Myers Roger W Myers Insurance Agency LLC

Dean Wimmer Marshall Wolff Kressler Wolff & Miller Timothy Ziegler E K McConkey & Company

Jeff Olsommer Olsommer-Clarke Insurance Group

Karl Eisaman McDowell Associates Duane Epting KAI Yurconic Insurance Agency LLC Kate Ferri Dawson Ferri Dawson Insurance Group Len Garza Premier Group

Bill Purdy Purdy Insurance Agency

Cara Hastings Turner Insurance Agency

Senate Level ($250 - $499)

Debie Remaley Remaley Insurance

Pam Hoffman Farnham Insurance

Sarah Brown Keller-Brown Insurance Services

Mark Sammarone Arthur Hall Insurance

Patrick Kelly Kelly Insurance Agency

Tara Silfies Alera Group

Bruce Kraft Arbor Insurance Group

Bob Smyrl Robert L Smyrl

Mike Landis Balsbaugh Insurance Agency

Stauffer Insurance Group

Mark Mearhoff Mearhoff Insurance Agency

Mark Bruns Bruns Insurance Services LLC Richard Cassidy Kattan-Ferretti Insurance Randy Close Wise Insurance Agency

Ronnie Vandine Susquehanna Valley Insurance

Sean Deviney Body-Borneman Associates Henry Dunn Henry Dunn, Inc. Lisa Goth Charles P Leach Agency Jesse Harlan Enders

House Level ($100 - $249) Connie Bence Helwig Insurance Agency Jeff Brown Keller-Brown Insurance Services

SEPTEMBER 2025

Karyn Miller Hinkle Insurance Agency Mark Monroe Nick Musselman Gerhart Hartman & Ritner Claire Pantaloni Insurance Agents & Brokers Charlie Paterson The Paterson Agency LLC

We thank everyone below for contributing to AgentPAC in 2024. Your financial support helps make sure independent agents' voices are heard during the legislative process. It also assists us in advancing agents’ political interests on key insurance and business issues in Pennsylvania, Maryland, and Delaware.

MARYLAND

DELAWARE

Ray Reinard, Jr. Reinard Agency

President's Club ($1,000+)

Bill Reagle CNR Insurance

President's Club ($1,000+)

Bill Rittenhouse WM Rittenhouse Agency

Connie Phillips Connie Phillips Insurance

Matney Insurance Services

Ron Rothenberger Rothenberger Insurance Services LLC

Lee Dotson Bellevue Insurance Services LLC

Governor's Club ($500 - $999)

Kristen McArdle McArdle Insurance Agency Joe Healy Healy Insurance Group

Governor's Club ($500 - $999)

Barry Winstead Winstead Insurance Agency

Pratt Insurance

John Savant Insurance Agents & Brokers

Famous & Spang Associates

Billy Siegel Siegel Insurance

Senate Level ($250 - $499)

Mark Sitler The Hartman Group

American Insurance and Financial Services

Bill Slovik Slovik Insurance Agency

Rick Gerety Rick Gerety & Associates

Watson & Watson

Jeff Spotts Spotts Insurance Group

Butch Bradley Bradley Atlantic LLC

Contributor Level

Scott Surra St Marys Insurance Agency

Lee Deng L & D Insurance Services

Blair Mattheiss B J Mattheiss Insurance

Mike Thomas Lighthouse Insurance Services

Christy Rose Avery Hall Insurance Michael Cruz Foresight Insurance LLC

Senate Level ($250 - $499) Maria Metcalfe Bellevue Insurance Services LLC R E Evans Insurance Candi Shoupe CBM Insurance Agency LLC Pete Wolff Wolff Insurance Agency

Abbie Turner Michael Turner Insurance Agency

Edward L Sanders Insurance Agency

Curtis Unruh Unruh Insurance Agency

Luray & Associates

Kelsey Branch Ironpeak Mid Atlantic Group

House Level ($100 - $249)

Creamer Insurance Agency LLC

Danielle Webber Maury, Donnelly & Parr

Dick Corroon Weymouth Swayze & Corroon Insurance

John Wolfe J P Wolfe Insurance Jack Woolridge Dimeling & Schrot

Contributor Level Blake Henry BDH/Konhaus LLC Ben Kirsch Burns & Burns Associates Nate Snyder Charles P Leach Agency Bob Williams Progressive

Insurance Networks Corporation

House Level ($100 - $249) Jill Hall Landmark Insurance Linda McCann Bay Shore Insurance

Lee Deng L & D Insurance Services

Join your fellow IA&B members and support AgentPAC. IABforME.online/ AgentPAC

Hunter McHugh McHugh Insurance Group

Contributor Level Rebecca Giacometti Wolff Insurance Agency

Daniel Burris Olde Towne Insurance Agency

Ginney OConnell Williams Insurance Agency

Tim Schaefer Schaefer Insurance Services LLC

Ashley Stafford Williams Insurance

IABforME.com |

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amerisafe.com 800.256.9052 asksales@amerisafe.com

*Policyholder retention rate based on voluntary business that we elected for renewal quote: 94.2% in 2024. © 2025 AMERISAFE, Inc. AMERISAFE and the AMERISAFE LOGO is a registered trademark of AMERISAFE, Inc. SAFE ABOVE ALL is a trademark of AMERISAFE, Inc. All rights reserved.

VISION A thriving independent insurance agent community.

MISSION STATEMENT To serve as a driving force to champion independent agency success by educating, consulting, advocating, and fostering community in Pennsylvania, Maryland, Delaware, and beyond.

PRIMARY AGENT Editor: Karen Robison KarenR@IABforME.com 717-918-9209 Contributing editors: Jennifer Ross Megan Fioretta Sarah Haas Sales Account Executive: Rebecca Sieg | 717-430-2351 rebecca.sieg@theygsgroup.com

EARN CE WITH IA&B

E D U C AT I O N SCHEDULE SEPTEMBER 2025 Register today! 800-998-9644, option 1 IABforME.com/education CLASSROOM DATE TOPIC

LOCATION

Sep 2

CIC - Life and Health

Erie, PA

Sep 16

CIC - Commercial Multiline Institute

Lancaster, PA

Sep 18

CISR - Personal Auto

Lancaster, PA

LIVE WEBINARS DATE TOPIC

TIME

Sep 9

Hour with Patrick: Reinsurance: How It Works & Why It Matters

11 AM-12 PM

Sep 9

Understanding Commercial Property Gaps and Knowing How to Fill Them

1-4 PM

Sep 10

CISR-Commercial Casualty II

8 AM-4:15 PM

Sep 10

Homeowners Endorsements Insureds Don't Want (But Do Need)

9-11 AM

Sep 10

Hour with Nicole: Making Sense of Homeowners Deductibles

2-3 PM

Sep 11

Hour with Cathy: Understanding (Finally!) How Claims Made Policies Work

2-3 PM

Sep 16

CIC - Commercial Multiline

8 AM-5:00 PM

Sep 16

Reasons Personal Lines are Broken (and What to Do About It)

1-4 PM

Sep 17

CISR - Other Personal Lines Solutions

8 AM-4:15 PM

Sep 17

Hour with Dave: What Everyone Must Know About Flood

2-3 PM

Sep 18

Name That Endorsement: Business Auto and Commercial Property Edition

9-11 AM

Sep 18

Ethics in Insurance - Protecting the Client and the Agency

1-4 PM

Sep 22

Murky: Understanding Flood Coverage, Rules, and Claims

1-3 PM

Sep 23-25

PA P&C Licensing

8 AM-5:00 PM

Sep 24

CISR - Commercial Casualty I

8 AM-4:15 PM

Sep 25

Bad Machines, Evil People: The Latest in Cyber

1-4 PM

Sep 30

William T Hold - Personal Lines

8 AM-4:00 PM

Sep 30

Liar!: An Agent's Role in Identifying & Handling Fraud

9 AM-12 PM

Sep 30

Hour with Sam: Liability Concerns in the Personal Auto Policy

2-3 PM

IABforME.com |

21

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