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COLORADO INSURANCE NEWS Published by Professional Independent Insurance Agents of Colorado
www.piiac.com
VOLUME 27 • ISSUE 4 • JUNE 2019
LEGISLATIVEUPDATE
INSIDE THIS ISSUE
By Gary Frisch, PIIAC Government Affairs Chair Another session of the Colorado
would apply to all liability claims. The
General Assembly has come and gone.
bill was amended to make it clear that
While we had some insurance bills of
disclosure only applies to commercial
interest, there were a number of
and personal auto policies.
business related bills that required our
The original provisions in the bill
Big ‘I’ Recognizes Colorado, New York for Outstanding Membership Efforts
attention. I am going to cover our key
requiring disclosure were applicable
PAGE 1
your read through this report
are just now aware of this bill
amended out of the bill and the fınal
remember the old adage, “Elections
and have concerns, may be
version only applies to insurance
have consequences.”
reacting to the original version. carriers. Our lobbyists did some heavy The introduced version of this lifting on our behalf to get agents
Allegation of Discrimination or Harassment? Do Something.
PAGE 2
bills for this session fırst and then touch on some others of interest. As
Gary Frisch
PIIAC Government Affairs Chair
Understanding Data Security Requirements
KEY BILLS
PAGE 6
HB19-1283. Disclosure of insurance
appeared that the requirement
liability coverage. Those of you, who
to disclose policy information
bill was poorly worded. It
not only to insurance carriers but also to insurance agents. This feature was
removed from the bill requirements.
FRISCH, page 4
Bryan Bernier, PIIAC CEO, Joe Leahy, Big “I” Chairman, Susy Fischer, PIIAC Board Chair
BIG “I” RECOGNIZES COLORADO, NEW YORK FOR OUTSTANDING MEMBERSHIP EFFORTS By Jacquelyn Connelly At the annual issues briefıng yesterday during the 2019 Big “I" Legislative Conference, Joe Leahy, Big “I" chairman, presented two awards to recognize state associations that have gone above and beyond in their membership initiatives. The Big “I" created the Big “I" Membership Growth Award in 2017 to recognize the state association that gained the highest percentage of net new members in the previous year. The third-ever recipient is Professional Independent Insurance Agents of Colorado.
AWARDS, page 2
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ALLEGATION OF DISCRIMINATION OR HARASSMENT? DO SOMETHING. By Audrey Sevalt, MSS, SPHR, SHRM-SCP, Senior HR Consultant, BBSI You may have heard a lot about harassment and discrimination in the media with the “Me Too” movement and antidiscrimination laws tied to sexual orientation. What can a business do to prevent these situations and the disruption to employees, vendors, and customers? Discrimination takes place when one employee limits another employee's prospects for success in the workplace due to protected characteristics, such as sex, age, race, religion, disability, sexual orientation, or veterans' status, to name a few. Discrimination can also occur when employers routinely or selectively ignore acts of harassment that appear to violate an employee's civil rights. Harassment can occur through an employee, broker, or vendor too. If someone comes forward with a complaint and the company takes minimal or no action, the business can head toward choppy legal waters. There could be civil actions, an injunction, a temporary restraining order, fınes, imprisonment, and more. If the case goes to court or the press hears about this allegation, the business could be all over social media and news organizations in a very negative light. Another risk could occur after the incident where employees or managers take retaliatory action against the employee who fıled a complaint of harassment or discrimination. That, too, is illegal, and resolution could be painful, disruptive, and expensive for a business. When an issue like this comes up, a business owner or manager should partner with a professional (Human Resources, an Employment Law Attorney, or an external consultant) to complete not only a careful investigation of the allegations, but take appropriate action that is documented should the enforcing agencies ask for information. An investigation report will be the best legal documentation that shows the organization takes such allegations seriously and acts appropriately to resolve the issue. If you don’t know much about these laws, DORA offers a free education venue for businesses. Here is the link to f nd more information. Or speak to an HR consultant or Employment Law attorney for guidance. Whatever you do, don’t dismiss the allegation as “an overreaction” without being absolutely sure it’s NOT discrimination or harassment. Finally, expect employees and vendors to behave professionally in the workplace and let everyone know unprofessional conduct will not be tolerated.
ALLEGATION, page 8
AWARDS, from page 1 The 2018 recipient of the Big “I" Membership Champion Award, which recognizes a state association for exemplary membership recruitment and retention initiatives, is the Big “I" New York. Congratulations to both states for their hard work last year!
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4 JUNE 2019
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FRISCH, from page 1 PIIAC maintained a monitor position on this bill. It was signed by the governor on 5/22/19 and takes effect 1/1/20. HB19-1289. Consumer Protection Act. The bill makes changes to the Colorado Consumer Protection Act (CCPA) related to unfair or deceptive trade practices. As with HB19-1283, the original version was poorly drafted and needed some amendments. This bill was proposed by the Attorney General so some version of the bill was going to pass. The bill adds the term “recklessly” to the unfair or deceptive trade practices section of the CCPA. Previously a person only had to “knowingly” engage in the listed activities that constitute an unfair or deceptive trade practice. The problem with the original bill language was that the term "recklessly” was not defıned. The fınal version now includes a defınition of “recklessly” to mean “…reckless disregard for the truth or falsity of a statement or advertisement.” Another problem with the original bill language was related to the existing CCPA requirement that there be proof that a deceptive trade practice had a signifıcant public impact. The bill removed this requirement entirely, which would have increased the number of private right of actions. The fınal version only removes this requirement for actions by the attorney general or a district attorney. The introduced version of this bill added some additional activities that could be considered a deceptive trade practice. However, the original language in one of the additional activities was so vague that someone who is confused by an insurance proposal could have alleged a deceptive trade practice. In the fınal version this was cleaned up with language as follows: “Either knowingly or recklessly engages in any unfair, unconscionable, deceptive, deliberately misleading, false, or fraudulent act or practice.” I am not sure this is much better but it is a vast improvement over the original version of the bill. The introduced version of the bill inserted a whole section into the CCPA with defınitions, one of which was entitled “Standard Form Contract”. This defınition could have been interpreted to include insurance policies. This whole section was amended out of the fınal version of the bill. PIIAC maintained an oppose position on this bill. The bill was signed by the governor on 5/23/19. Sections 2 (deceptive practices) and 3 (civil penalties) of the act apply to civil actions fıled on or after the effective date of the act; Section 4 (damages) applies to judgments entered into, on, or after the effective date of the act. SB19-188. FAMLI Family Medical Leave Insurance Program. The original version of the bill was opposed by the business community. The business community does not oppose family medical leave; rather, it is the method in which family leave is to be achieved that is the problem. The fınal version sets up a task force to review results of a third party study and recommendations for a medical leave plan. The task force will develop recommendations on plan features such as minimum duration of leave; purposes of leave; eligibility; amount of wage replacement; and, other pertinent features. These recommendations will be provided to an independent actuary. The actuary will provide analysis to the task force and the task force shall develop a fınal recommendation for a paid medical leave plan for all employees in the state. This actuarial analysis and fınal recommendation will be reported to the following by 1/8/20: The senate committees on fınance and business, labor and technology; the house committees on fınance and business affairs and labor; and the governor. In order for the paid family and medical leave plan to go into effect, the general assembly must pass a bill directing implementation of the program. If a program is directed to be implemented, it will follow a timeline specifıed in the bill. This timeline is: 7/1/20 the family and medical leave program will be established; 1/1/23 program funding will begin; and 1/1/24 the program will start paying benefıts. Family and medical plan features that were part of the introduced version of the bill are not part of the fınal version. Also there are no premium specifıcations, which were part of the introduced version and were considered actuarially unsound according to a study prepared for the business community. The bill has yet to be signed by the governor. The governor has until June 3, 2019 to sign, veto, or let the bill become law without his signature. PIIAC has maintained an oppose position on this bill not because PIIAC opposes family and medical leave for employees; it is the details of the original plan that raised concerns on the part of PIIAC members. We will await the task force report and then determine a position on an implementation bill, which if the task force meets its deadlines, should be during the 2020 session. OTHER BILLS SB19-085. Equal pay for equal work act. The title says what this bill is about---it is no longer permissible to discriminate in pay based upon gender. There are exceptions in the bill in which seniority, merit and other factors can be taken into consideration in determining wage rate. Of note it is no longer permissible to inquire of a prospective employee their past salary history.
FRISCH, page 8
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6 JUNE 2019
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UNDERSTANDING DATA SECURITY REQUIREMENTS. Data security requirements, including laws and regulations, exist at the federal, state, and even
Classroom Courses JULY July 10-12
industry specifıc levels. These requirements outline how an entity must address cybersecurity, protect
CIC Commercial Property – Denver
information, and respond to data breaches. In recent years, there has been an increase in legislation
July 16
focusing on cybersecurity across the board.
CISR Commercial Casualty I – Fort Collins
Meeting data security requirements on your own can be challenging. We recommend a high-level approach to identifying applicable data security laws and regulations, understanding their inherent challenges, and meeting requirements. IDENTIFY YOUR REQUIREMENTS Businesses must fırst understand what laws and regulations apply to them. To determine which specifıc requirements apply, start with the following: • Where does your business operate physically? • Where do your customers reside physically? • What type of data do you collect, transmit, and store? • What regulatory agencies oversee your business (federal, state, and industry)? • What exemptions apply to you, if any? Based on the above, spend time reviewing applicable laws and regulations with a legal representative to ensure all requirements, and penalties for not meeting the requirements, are understood. A clear understanding is critical to ensure deadlines are met, exemptions are noted, and reporting requirements are followed. Periodically check for any amendments to laws and regulations to stay compliant with changing requirements.
July 18
CISR Life and Health Essentials – Denver July 23
Coverage Mistake Avoidance for Social Services Industry - Denver AUGUST August 7-9
CIC Personal Lines – Denver August 13
CISR Personal Residential – Denver SEPTEMBER September 10
CISR Life and Health Essentials – Grand Junction September 17
CISR Agency Operations – Denver
PLAN FOR ACTION Once all applicable requirements are identifıed and understood, it’s time to budget, plan, and implement cybersecurity best practices. Begin with a review of reputable cybersecurity frameworks. These best practices provide a road map for implementing cybersecurity controls. Ultimately, following a framework provides a better understanding of cybersecurity risks, how to reduce overall exposure, and can help simplify meeting requirements. Some popular frameworks include the National Institute for Standards in Technology (NIST) Cybersecurity Framework, Center for Internet Security (CIS) Top 20, and International Organization for Standardization (ISO) Guidelines for Cybersecurity.
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Common requirements include executing a risk assessment, creating policies and procedures, performing technical testing, and developing an incident response plan. Confırm that all requirements under applicable laws and regulations are addressed within the framework, and supplement as necessary. With a defıned path ahead, it is easier to budget and plan for the resources, time, and activities needed to meet requirements. Set benchmarks to stay on target with deadlines and account for
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interruptions that could increase the amount of time needed. To simplify efforts, approach cybersecurity and the steps for maintaining compliance as an ongoing project that happens throughout the year. PREPARE FOR CHALLENGES Data security requirements may be diffıcult to understand without specifıc legal experience, and there may be little to no guidance easily accessible. Requirements may vary between different laws, regulations, and jurisdictions and can be confusing.
DATA, page 11
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8
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JUNE 2019
PIIAC EDUCATION CALENDAR (CONT.)
on the same calendar day and prior to making a decision on the promotion. Employers must keep records of job descriptions and wage history for each employee for the duration of
PIIAC Convention Break Out Sessions
employment and 2 years after the end of employment. Lack of records could result in the
SEPTEMBER 12TH Ameristar Casino 1:00pm - 5:00pm 1 Hour Break Out Sessions Surplus Lines Update: Colorado & International
court fınding a rebuttable presumption that
law it is effective 8/2/19. Your Government Affairs team followed many other bills during this session. If there is another bill of interest on which you would like some comment please send me an email, gary@staileycorp.com.
records not kept are favorable to an employee’s
Lastly I would like to thank our lobbyists, Daniel
claim and instruction to a jury that the failure
Furman of Hall & Evans and Jennifer Cassell of
to keep records can be considered that the
Bowditch & Cassell for all their work during this
violation was not in good faith.
session. Bill hearings went late into the evening
PIIAC had a monitor position on this bill.
requiring many hours of work to effectively
The governor signed the bill on 5/22/19 and it
represent PIIAC at the Colorado General
Drones and Homeowners
is effective 1/1/20.
Assembly. PIIAC is very fortunate to have these
Learn How Technology is Disrupting the Risk Management Industry
SB19-109. Adjust damage limitations for
Navigating Pollution Exposures
damages in civil liability must be adjusted for
2-3 Hour Break Out Sessions
two years thereafter. The same adjustment
The Savvy Social Seller The Single Greatest Threat to Every Company: Cybercrime Street Level Ethics Just the Flood Facts
FOR MORE INFORMATION AND TO REGISTER Click here to Register Click here for Sponsorships Click here for more Information on the Sessions FRISCH, from page 4 The bill includes private right of action although nothing in the bill prevents an employee from taking their complaint to the Colorado Civil Rights Division (CCRD). Employers who violate the provisions of this bill are liable for economic damages which is the difference between the amount the employer paid to the complaining employee and the amount the employee would have received had there been no
inflation. The bill adds to current statute that inflation on 1/1/20 and each January 1 every applies to non-economic loss. The adjusted limitation applicable on 1/1/20 and every two years thereafter is applicable to all claims for relief that accrue on and after the specifıed
the legislative session.
ALLEGATION, from page 2
BIOGRAPHY Audrey Sevalt, MSS, SPHR, SHRM-SCP Senior HR Consultant, BBSI
January 1 and before the January 1 two years
Audrey has over 35 years of experience in
thereafter. These same adjustments apply to
Human Resources, with a passion for
dollar limitations already in statute.
successful HR partnership with business
PIIAC had a monitor position on this bill. It is
leaders, linking strategy to people. She
noteworthy that the insurance and business communities did not provide much opposition to this bill. The bill was signed by the governor on 4/8/19 and is effective 8/2/19 (ninety days after adjournment). SB19-090. Peer to peer vehicle sharing, has been sent to the governor. The insurance industry concerns about language regarding cancellation and non-renewal of a policy covering a vehicle used in a car sharing program were alleviated when the language was amended out of the bill. PIIAC was neutral
specializes in working with small business owners to help them manage every aspect of HR including legal compliance and management development. Audrey is a dynamic, results-oriented leader with a passion to help business leaders tap into the talent of their employees. Throughout Audrey's career, she continues to focus on the development and delivery of HR services that show positive impact on a business’ bottom line. In addition to her work at BBSI, Audrey has been teaching at the University of Denver as an adjunct
on this bill and it is currently awaiting the
professor for 19 years in the Strategic
governor’s signature. Should the governor sign
Human Resources Masters’ Degree program.
the bill it will be effective 1/1/20.
She has enough experience and knowledge
violation. In addition liquidated damages in the
HB19-1025. Limits on job applicant criminal
amount equal to the employee’s economic damages
history inquiries. This is the “ban the box” bill. It
must be paid. The court may not award liquidated
will no longer be possible to have a question on
damages if the employer demonstrates that the
employment applications regarding past
violation was in good faith and the employer has
criminal history. Nor can employers ask about
reasonable grounds for believing that there was no
criminal history during the initial employment
violation of the statute.
interview. Employers will be able to run a
Part 2 of the bill is a section on the posting of
dedicated people working on your behalf during
criminal background check at any time during
opportunities for promotion and advancement. An
the employment process. PIIAC had a monitor
employer must make efforts to announce or post all
position on this bill. The bill is awaiting the
opportunities for promotion to all current employees
governor’s signature. Should the bill become
to be a walking encyclopedia of HR and loves to mentor and share best practices whenever she can.
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LEXIE • Born into an insurance agency; worked at two of them • Loves the Green Bay Packers, music, her toddlers... in reverse order
• A decade of insurance experience
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11 JUNE 2019 DATA, from 6
COLORADO INSURANCE NEWS VOLUME 27 • ISSUE 4 • JUNE 2019
Additionally, new laws and regulations are introduced every year, and are often updated. Cybersecurity topics, vocabulary, and
Copyright 2019 by Professional Independent Insurance Agents of Colorado, Inc. All rights reserved. Colorado Insurance News is published electronically each month by the Professional Independent Insurance Agents of Colorado, 8354 Northfıeld Boulevard, Suite 2710, Denver, Colorado 80238.
concepts may be challenging without
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industry-specifıc experience. Implementing the controls within a framework requires a technical understanding of how to address
THE MISSION of the Professional Independent
cybersecurity risks. Failure to implement
Insurance Agents of Colorado is to advance, foster, and protect
requirements properly could leave your
professional insurance agents, satisfy their political,
business vulnerable to attacks and in
educational, and business needs and provide professional
danger of being fıned.
products and services that will create a mutually benefıcial
Addressing requirements will consume
environment for members while maintaining the highest
time and resources but reducing cybersecurity risks is necessary for uninterrupted business operations and the protection of business sensitive data. Meeting data security requirements will
ethical business standards.
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in Colorado Insurance News, contact PIIAC at 303.512.0627. Ad rates per issue: Full-page,
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require the support of your entire business, and with time, should become engrained in your culture. This is often the biggest challenge. RIGID BITS CAN HELP Consider working with third-party cybersecurity experts to alleviate the stress of tackling these challenges. Rigid Bits specializes in helping businesses identify and reduce their cybersecurity risks. Through consulting, professional services, and technology, our certifıed experts work
PROFESSIONAL INDEPENDENT INSURANCE AGENTS OF COLORADO, INC. Suite 2710, Denver, Colorado 80238
bryan@piiac.com
offıce 303.512.0627
NICOLE HANNA
fax 303.512.0575
Vice President, ASC
www.piiac.com
nicole@piiac.com MEGAN REINBOLD Executive Assistant megan@piiac.com
and data.
COLLEEN DAVIS
PIIAC OFFICERS
security requirements. Our online portal
SUSY FREEMAN FISCHER
provides a centralized location to develop
Chair of the Board
and track cybersecurity policies and
GAIL JORDAN
procedures. Clients benefıt from a streamlined, established process while saving time, money, and reducing stress. Reach out to us today at datasecurity@rigidbits.com to request our
Past Chair of the Board STEVE PIERCE
colleen@piiac.com CYBIL LOVAS Operations cybil@piiac.com SUE KETCHUM Accounting Director sue@piiac.com
GARY FRISCH
JESSA OSBORNE
State National Director
Account Manager jessa@piiac.com
23NYCRR500 (New York’s DFS Data Security
CHRISTINA MERTENS
Law) and to learn more about how we can effective for your business.
Education Director
Vice Chair of the Board
free cybersecurity framework mapping for
make data security easier and more cost
BRYAN BERNIER Chief Executive Officer
to meet requirements and protect systems
to simplify the process of addressing data
303.512.0627
8354 Northfıeld Boulevard,
closely with business leaders and IT teams
Enlist the help of our experts and tools
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Account Manager
PIIAC DIRECTORS
christina@piiac.com
MIKE ADAMS
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Account Manager
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