The Montana Commissioner of Securities & Insurance has issued an advisory memorandum notifying surplus lines agents that surplus lines tax payments for calendar year 2011 surplus lines filings are due or must be postmarked by April 1, 2012 and that tax payments may be sent in after March 2, 2012.
The memo noted that all agents are required to file a statement with the Office of the Commissioner of Securities and Insurance, Montana State Auditor (CSI), even if no premiums have been written in Montana. A zero-premium filing form can be obtained at http://sao.mt.gov/SurplusLines/pdf/zero%20payment%20form.pdf.
The CSI said that surplus lines agents have until March 2, 2012, to electronically file outstanding 2011 surplus lines filings. Paper surplus lines filings must be postmarked by March 2, 2012, to be entered in the 2011 tax statement. For those paper filings postmarked by March 2,2012, please allow two weeks (March 16, 2012) for the CSI to enter those polices into the CSI database and then agents will be able to view or print the 2011 surplus lines filings. All agents should review their 2011 tax statement for accuracy, which may be obtained at https://svc.mt.gov/csi/surplus/login.aspx.
If errors are noted and corrections need to be made to your statement, please contact Pam Daugherty at (406) 444-9751 or by email at pdaugherty@mt.gov. If an extension from the April 1, 2012, tax payment deadline is needed agents should contact Tim Morris at 406-444-4489 or tmorris@mt.gov. If additional time is needed to correct the agent's statement, an extension will be given until the errors are corrected. The CSI said it would not assess a late payment penalty when the CSI has been notified of an error.
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Tuesday, March 31, 2015
NAPSLO Urges Reforming States System First
In response to the Bush Administration’s proposal to reform the financial regulatory system, NAPSLO is encouraging the U.S. House and Senate to complete work on the Nonadmitted and Reinsurance Reform Act of 2007 to improve the efficiency of the insurance industry before pursuing the federal approach proposed this morning.
Secretary of the Treasury Henry Paulson Jr. on Monday outlined the Bush Administration’s financial regulatory system overhaul and as part of the proposal recommended the establishment of an Optional Federal Charter (OFC) for the insurance industry, similar to the current dual-chartering banking system. The proposed new federal agency would be housed within the Treasury Department.
The proposals outlined this morning were designed to reform federal regulatory agencies and segments of a national regulatory structure that failed to perform adequately in recent years leading to the current economic crisis.
“State based insurance regulation has not been part of these regulatory failures,” said NAPSLO Executive Director Richard Bouhan. “In fact, the states have performed well in regulating insurance over the years and the state system would continue to exist with any Optional Federal Chartering framework Congress establishes.”
However, the state based regulatory process has inefficiencies that need to be addressed, Mr. Bouhan said and Congress should solve these problems immediately by enacting legislation that will direct and empower the states to establish a uniform and more efficient regulatory process. The NRRA, which NAPSLO believes would solve many of the inefficiency problems in the surplus lines industry, was passed unanimously in the House of Representatives (HR 1065) in June 2007 and a similar version (S 929) is currently in the Senate.
“Congress should enact the NRRA, now, before it discusses other changes in the current regulatory structure,” Mr. Bouhan said. “Passage of the NRRA would be a major step in creating a framework to eliminate duplication and inefficiency in the surplus lines and reinsurance segments of the insurance industry.”
Secretary of the Treasury Henry Paulson Jr. on Monday outlined the Bush Administration’s financial regulatory system overhaul and as part of the proposal recommended the establishment of an Optional Federal Charter (OFC) for the insurance industry, similar to the current dual-chartering banking system. The proposed new federal agency would be housed within the Treasury Department.
The proposals outlined this morning were designed to reform federal regulatory agencies and segments of a national regulatory structure that failed to perform adequately in recent years leading to the current economic crisis.
“State based insurance regulation has not been part of these regulatory failures,” said NAPSLO Executive Director Richard Bouhan. “In fact, the states have performed well in regulating insurance over the years and the state system would continue to exist with any Optional Federal Chartering framework Congress establishes.”
However, the state based regulatory process has inefficiencies that need to be addressed, Mr. Bouhan said and Congress should solve these problems immediately by enacting legislation that will direct and empower the states to establish a uniform and more efficient regulatory process. The NRRA, which NAPSLO believes would solve many of the inefficiency problems in the surplus lines industry, was passed unanimously in the House of Representatives (HR 1065) in June 2007 and a similar version (S 929) is currently in the Senate.
“Congress should enact the NRRA, now, before it discusses other changes in the current regulatory structure,” Mr. Bouhan said. “Passage of the NRRA would be a major step in creating a framework to eliminate duplication and inefficiency in the surplus lines and reinsurance segments of the insurance industry.”
Important Updates from D.C.
NARAB II
The National Association of Registered Agents and Brokers Act, more commonly known as NARAB II, is inching closer to becoming law. NARAB II would streamline the licensing process for agents and brokers nationwide, eliminating burdensome multistate requirements while preserving important state regulatory authority and consumer protections. The legislation, which is strongly endorsed by NAPSLO, was incorporated into S. 1926, the “Homeowner Flood Insurance Affordability Act.”
During debate of S. 1926, the Senate considered an amendment offered by Senators Coburn and McCain which would have allowed states to “opt out” of participation in NARAB. NAPSLO and other industry representatives sent a joint letter opposing the Coburn-McCain amendment, explaining that its inclusion would be detrimental to the underlying program. Our efforts proved successful as the Senate defeated the amendment by a convincing vote of 24-75. This was an historic day as it was the first time the body had passed the legislation. Similar legislation passed the House in September by a vote of 397-6.
The underlying flood legislation will now go to the House where it is expected that Republicans will introduce and pass an alternative proposal. NAPSLO has received commitments from House leadership that the NARAB II provisions will also be included in their flood legislation and so once the House has passed its legislation the House and Senate versions will be negotiated to produce a “conferenced” bill. With both chambers supporting the underlying NARAB II provisions, it will become law once that conferenced bill is enacted by both chambers and signed by the President.
Homeowner Flood Insurance Affordability Act
On Thursday, the Senate passed S. 1926 which delays implementation of the risk-based flood insurance rates prescribed by the Biggert-Waters Flood Insurance Reform Act. This has become an extremely political issue as residents in flood-prone areas have been subject to significant rate increases. S. 1926 would delay implementation for up to four years.
NAPSLO’s focus on flood insurance reform has been to ensure surplus lines insurers are eligible to offer private market solutions and alternatives to consumers in need of unique and complex flood risks.
To accomplish this, NAPSLO worked with Senators Heller and Lee on an amendment to clarify the definition of private flood insurance to include policies offered by insurance companies that may be “eligible as a nonadmitted insurer to provide insurance in the State or jurisdiction where the property to be insured is located, in accordance with section 524 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (15 U.S.C. 8204)”. The amendment failed by a narrow 49-50 margin over concerns surrounding standards for private flood insurance policies and consumer protections. NAPSLO continues to work to educate Senators as to the role and regulation of nonadmitted insurers to alleviate these concerns. In addition, we are working heavily with leadership in the House to ensure that the language is included in their alternative flood proposal.
GAO Releases Flood Insurance Report on Strategies for Increasing Private Sector Involvement
Last week, the GAO released a report to Congress on the National Flood Insurance Program focused on ways to reduce the financial burden on the federal government.
The 2014 report notes no new conclusions or recommendations since its earlier June 2011 report. The purpose of the report was to provide strategies for the federal government to increase private market participation in flood insurance. The report indicated that key to private market participation is allowing private insurers to charge what is appropriate and commensurate with the underlying risk. NAPSLO was pleased with the GAO’s continued recommendations and support of private market solutions to the financial challenges facing the NFIP.
The Biggert-Waters Insurance Reform Act of 2012 directed the GAO to consider various strategies for privatizing the NFIP. This report concluded that in order to increase private market participation, private insurers would require (1) the ability to charge actuarially sound rates to ensure profitability, (2) the ability to decline applicants and (3) sufficient consumer participation. Key findings of the report include:
• Eliminate subsidized rates and charge policyholders risk-based rates, limiting the Flood Program to direct means-based subsidies.
• Implement recommended strategies in order to increase the private market participation to reduce the debt of the NFIP.
• The NFIP operates as a residual market of last resort for policies decline by the private sector.
• The Government could consider assuming the role of reinsurer, although the report acknowledges the consumers would have to absorb these costs.
NAPSLO Releases Protocol Outlining Brokers’ NRRA Responsibilities
To assist NAPSLO member surplus lines brokers to prepare to deal with the NonAdmitted and Reinsurance Reform Act (NRRA) when it takes effect on July 21, 2011, the Association has released guidelines produced by the law firm of Dewey & LeBoeuf LLP outlining broker responsibilities under the new federal law.
“While surplus lines brokers will benefit from the nationwide reforms that are intended to streamline excess and surplus lines insurance regulation, some states may not be in compliance with the NRRA when it takes effect, raising questions regarding a broker’s obligations under the new law,” said Richard Bouhan, NAPSLO Executive Director. “NAPSLO is issuing this general broker protocol to help brokers in all states understand what is required under the NRRA. While not a substitute for legal advice on specific situations, the guidelines will assist the broker in determining how to fulfill its obligations.”
The NRRA was part of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in 2010 and the provisions to make the insured’s home state the only regulator of a surplus lines transaction takes effect on July 21.
NAPSLO contracted with Dewey & LeBoeuf LLP to produce the NRRA Broker Protocol, which reviews the federal law’s impact on surplus lines brokers. These guidelines state, in general, that for nonadmitted business, surplus lines brokers must:
• Be licensed for surplus lines in the insured's Home State
• Comply with the placement requirements of the insured’s Home State
• Ensure that a diligent search has been conducted in compliance with the rules of the insured’s Home State
• Provide any disclosure/disclaimer required by the insured's Home State
• Place surplus lines insurance with insurers that are eligible in the insured's Home State
• Satisfy a broker's general liability standards for determining that insurers are financially sound
• Comply with all other placement requirements of the insured's Home State, such as any regulation of policy fees or surplus lines broker premium trust accounts
Regarding surplus lines premium taxes, the guidelines note that as of July 21 surplus lines brokers must pay premium tax only to the insured's Home State. Brokers will need to comply with the tax payment and premium reporting requirements of the insured's Home State, including determining if the Home State has enacted a new multi-state tax sharing system. In addition, brokers should consult with NAPSLO if the Home State requests that brokers pay tax directly to other states or are asked to provide a report on multi-state risks more frequently than on an annual basis because more frequent reporting of this information is not permitted by the NRRA.
“All states are working on bringing their laws into compliance by July 21 but with a limited amount of time left in many legislative sessions it is unclear whether all states will be in compliance on the effective date,” said Mr. Bouhan. “With this information, and a state by state list of state actions available on our website, we are working to make sure members have the information they need to deal with the new law.”
“While surplus lines brokers will benefit from the nationwide reforms that are intended to streamline excess and surplus lines insurance regulation, some states may not be in compliance with the NRRA when it takes effect, raising questions regarding a broker’s obligations under the new law,” said Richard Bouhan, NAPSLO Executive Director. “NAPSLO is issuing this general broker protocol to help brokers in all states understand what is required under the NRRA. While not a substitute for legal advice on specific situations, the guidelines will assist the broker in determining how to fulfill its obligations.”
The NRRA was part of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law in 2010 and the provisions to make the insured’s home state the only regulator of a surplus lines transaction takes effect on July 21.
NAPSLO contracted with Dewey & LeBoeuf LLP to produce the NRRA Broker Protocol, which reviews the federal law’s impact on surplus lines brokers. These guidelines state, in general, that for nonadmitted business, surplus lines brokers must:
• Be licensed for surplus lines in the insured's Home State
• Comply with the placement requirements of the insured’s Home State
• Ensure that a diligent search has been conducted in compliance with the rules of the insured’s Home State
• Provide any disclosure/disclaimer required by the insured's Home State
• Place surplus lines insurance with insurers that are eligible in the insured's Home State
• Satisfy a broker's general liability standards for determining that insurers are financially sound
• Comply with all other placement requirements of the insured's Home State, such as any regulation of policy fees or surplus lines broker premium trust accounts
Regarding surplus lines premium taxes, the guidelines note that as of July 21 surplus lines brokers must pay premium tax only to the insured's Home State. Brokers will need to comply with the tax payment and premium reporting requirements of the insured's Home State, including determining if the Home State has enacted a new multi-state tax sharing system. In addition, brokers should consult with NAPSLO if the Home State requests that brokers pay tax directly to other states or are asked to provide a report on multi-state risks more frequently than on an annual basis because more frequent reporting of this information is not permitted by the NRRA.
“All states are working on bringing their laws into compliance by July 21 but with a limited amount of time left in many legislative sessions it is unclear whether all states will be in compliance on the effective date,” said Mr. Bouhan. “With this information, and a state by state list of state actions available on our website, we are working to make sure members have the information they need to deal with the new law.”
NAPSLO Launches New Website
NAPSLO has unveiled its redesigned web site (www.napslo.org), featuring richer content, more timely news and additional resources designed to position the site as a central source of information about the Excess and Surplus Lines industry.
Web site improvements begin on the home page where visitors and members can find the latest NAPSLO and E&S news, an event “Schedule at a Glance” and a Video Center, which currently includes a video on recent legislative activity and U.S. Senate Banking Committee testimony by NAPSLO Executive Director Richard Bouhan. In addition to the current content, a redesigned “Careers” section is due in coming months.
“With richer content and more dynamic navigation, the new web site is and will continue to grow as a source of information not only for our members, but also for everyone in the insurance industry looking for information on NAPSLO and the E&S Lines industry,” said John Wood, NAPSLO President. “With everything from legislative updates to career information, this web site will help position NAPSLO as the industry leader.”
The web site features new subject areas on NAPSLO education and schools, legislation and regulation, upcoming events and the NAPSLO blog. An enhanced Newsroom features NAPSLO newsletters, E-news, news releases, breaking news, legislative and Derek Hughes/NAPSLO Educational Foundations news, as well as video and the organization’s annual report.
The site also includes a section on NAPSLO’s “Wholesaler Value” education and awareness campaign launched in the latter half of 2008 to increase awareness of the value that wholesalers bring to retail insurance agents and corporate risk managers in placing E&S lines coverage.
“Given the current market, it’s more important than ever that retail agents and brokers, and risk managers understand that wholesale brokers have the expertise, experience and knowledge to place E&S lines,” Wood said. “We expect the new NAPSLO web site to bring even more attention to our Wholesaler Value campaign and give our members information on how they can get involved.”
Web site improvements begin on the home page where visitors and members can find the latest NAPSLO and E&S news, an event “Schedule at a Glance” and a Video Center, which currently includes a video on recent legislative activity and U.S. Senate Banking Committee testimony by NAPSLO Executive Director Richard Bouhan. In addition to the current content, a redesigned “Careers” section is due in coming months.
“With richer content and more dynamic navigation, the new web site is and will continue to grow as a source of information not only for our members, but also for everyone in the insurance industry looking for information on NAPSLO and the E&S Lines industry,” said John Wood, NAPSLO President. “With everything from legislative updates to career information, this web site will help position NAPSLO as the industry leader.”
The web site features new subject areas on NAPSLO education and schools, legislation and regulation, upcoming events and the NAPSLO blog. An enhanced Newsroom features NAPSLO newsletters, E-news, news releases, breaking news, legislative and Derek Hughes/NAPSLO Educational Foundations news, as well as video and the organization’s annual report.
The site also includes a section on NAPSLO’s “Wholesaler Value” education and awareness campaign launched in the latter half of 2008 to increase awareness of the value that wholesalers bring to retail insurance agents and corporate risk managers in placing E&S lines coverage.
“Given the current market, it’s more important than ever that retail agents and brokers, and risk managers understand that wholesale brokers have the expertise, experience and knowledge to place E&S lines,” Wood said. “We expect the new NAPSLO web site to bring even more attention to our Wholesaler Value campaign and give our members information on how they can get involved.”
Secure Data with Dropbox
I recently posted an article about data loss and the risk of losing hard to restore information from your computer. In the article it was mentioned that we would share a few more specific examples of ways to protect your computer data from total loss. One example of securing your data and backing it up is a service called Dropbox. Dropbox is a cloud like program. This means that all your computer data is safely secured on different Dropbox servers throughout the country as well as on your personal computer. If your personal computer ever suffered a hard drive crash, was stolen or was damaged in a fire all you would need to do is replace your computer and download all your data from the Dropbox servers. You can do 2GB of storage for free or pay $9.99 a month for 50GB of storage. If 50GB is still not enough you can pay $19.99 a month for 100GB of storage.When you install Dropbox on your computer it creates a folder that you can copy and past your files into. You can copy and past document, video, music files, etc. When you place these items into the Dropbox folder on your computer it then syncs the information with the Dropbox servers via an internet connection. If you have multiple devices like iPads, iPhones or if everyone in your family has a different laptop you can all share one account and load each device’s information into the same Dropbox account. It then syncs and backs up all devices. This also allows you to access each others information from any device via the Dropbox folder on your computer, mobile device or even a special website that is created for each account. Not only does it back up and secure your information it also makes it easier to access from anywhere.
Monday, March 30, 2015
Texas considers reducing stamping fee
The Texas Commissioner of Insurance is considering a recommendation to reduce the stamping fee to 0.06%.
The Texas Department of Insurance staff had recommended the decrease in the stamping fee rate to 0.06% from its current rate of 0.10%.
The staff’s recommendation follows a similar recommendation by the Board of Directors of the Surplus Lines Stamping Office of Texas (Stamping Office) to decrease the fee.
The proposed effective date for the decrease is July 1, 2007.
The Texas Department of Insurance staff had recommended the decrease in the stamping fee rate to 0.06% from its current rate of 0.10%.
The staff’s recommendation follows a similar recommendation by the Board of Directors of the Surplus Lines Stamping Office of Texas (Stamping Office) to decrease the fee.
The proposed effective date for the decrease is July 1, 2007.
Why your privately held business needs Directors & Officers Insurance
by Tom Kelly, Cincinnati Insurance Company
Every corporation relies on the guidance of its board of directors for success. Although lawsuits against larger, publicly traded companies receive the lion’s share of media attention, privately held corporations are also vulnerable to lawsuits by competitors, government agencies, creditors and employees. You can protect your hard-earned success by purchasing directors and officers insurance (D&O) coverage for your company.
Having directors and officers insurance coverage in place can help you attract the talent you need for your board. Directors or officers of privately held companies who do not insist that the company purchase D&O insurance are putting themselves, their spouses and their estates at financial risk. D&O insurance minimizes risk to their personal assets.
Not having D&O coverage can have a serious impact on a company’s viability. Even a financially sound business may have insufficient funds to defend officers and directors in the event of a lawsuit. A D&O policy will take care of defense costs and settlement, even if t
he company ends up in bankruptcy.
States impose statutory duties on corporate directors. D&O coverage protects the company and its directors from claims arising from alleged or actual failure to uphold those duties. Directors are under legal obligation to govern their corporation and carry out their responsibilities of office:
Additional coverages, such as employment practices liability, fiduciary liability and cyber liability insurance, may also be available to eligible companies for an additional premium.
Every corporation relies on the guidance of its board of directors for success. Although lawsuits against larger, publicly traded companies receive the lion’s share of media attention, privately held corporations are also vulnerable to lawsuits by competitors, government agencies, creditors and employees. You can protect your hard-earned success by purchasing directors and officers insurance (D&O) coverage for your company.
Not having D&O coverage can have a serious impact on a company’s viability. Even a financially sound business may have insufficient funds to defend officers and directors in the event of a lawsuit. A D&O policy will take care of defense costs and settlement, even if t
he company ends up in bankruptcy.
States impose statutory duties on corporate directors. D&O coverage protects the company and its directors from claims arising from alleged or actual failure to uphold those duties. Directors are under legal obligation to govern their corporation and carry out their responsibilities of office:
- in good faith
- in the best interest of the corporation
- with the care that an ordinary prudent person in a like position would exercise under similar circumstances
- grow the company by prudently managing the affairs of the business
- exercise due diligence that is standard for operating the business
- maintain loyalty to the corporation to avoid conflicts of interest
- obey the corporate charter and state corporate statutes
Additional coverages, such as employment practices liability, fiduciary liability and cyber liability insurance, may also be available to eligible companies for an additional premium.
NJSLA to Present Honoree of the Year Award to Steven R. Gross
The Surplus Lines Association of New Jersey will present its 2010 Honoree of the Year Award to Steven R. Gross for outstanding dedication and achievement on behalf of the Surplus Lines Insurance profession.
The award will be presented on Thursday, April 14, 2011. Please see the attached invitation for details. Dinner invitation registration and checks must be received by April 8.
Mr. Gross is Chairman/CEO and Founder of Metro Insurance Services, Inc. located in Springfield, NJ. He also currently serves on the Board of Directors for NAPSLO, serving as Co-Chair of the Career Awareness & Internship Committee.
In addition Mr. Gross is on the Board of Directors of Commissioners Producer Advisory Counsel in the State of New Jersey, is a past President of the New Jersey Surplus Lines Association, and serves as a board Member of the New Jersey Golf Foundation, the charitable arm of the NJ Section of the PGA of America.
The award will be presented on Thursday, April 14, 2011. Please see the attached invitation for details. Dinner invitation registration and checks must be received by April 8.
Mr. Gross is Chairman/CEO and Founder of Metro Insurance Services, Inc. located in Springfield, NJ. He also currently serves on the Board of Directors for NAPSLO, serving as Co-Chair of the Career Awareness & Internship Committee.
In addition Mr. Gross is on the Board of Directors of Commissioners Producer Advisory Counsel in the State of New Jersey, is a past President of the New Jersey Surplus Lines Association, and serves as a board Member of the New Jersey Golf Foundation, the charitable arm of the NJ Section of the PGA of America.
Iowa First State to Pass NRRA Legislation in 2012
Iowa became the first state in 2012 to adopt Nonadmitted and Reinsurance Reform Act related legislation among the states that did not take action in 2011. The Iowa Governor signed into law HF 2145 on Thursday and the bill incorporates several provisions of the NRRA, as well as exclusive home state regulation provisions consistent with the NRRA.
The bill authorizes Iowa to tax the gross premium on a surplus lines policy when Iowa is the home state of the insured. The bill does not authorize tax sharing. The bill uses the NRRA definitions of affiliate, affiliated group, control, exempt commercial purchaser, home state, nonadmitted insurer and qualified risk manager.
The bill also retains the provisions from the pre-NRRA statute that allows the Commissioner to declare a surplus lines Insurer ineligible if it is of unsound financial condition, acted in an untrustworthy manner, no longer meets the eligibility standards, willfully violated the laws of the state, fails to conduct its claims settlement practices in a fair and reasonable manner or has committed an unfair or deceptive insurance trade practice.
Iowa did not pass NRRA related legislation in 2011 and taxed only the in-state portions of the risk after the effective date of the NRRA. Comprehensive information on 2012 legislation in Iowa and other states is available on NAPSLO's website, in addition to a number of NRRA resources.
The bill authorizes Iowa to tax the gross premium on a surplus lines policy when Iowa is the home state of the insured. The bill does not authorize tax sharing. The bill uses the NRRA definitions of affiliate, affiliated group, control, exempt commercial purchaser, home state, nonadmitted insurer and qualified risk manager.
The bill also retains the provisions from the pre-NRRA statute that allows the Commissioner to declare a surplus lines Insurer ineligible if it is of unsound financial condition, acted in an untrustworthy manner, no longer meets the eligibility standards, willfully violated the laws of the state, fails to conduct its claims settlement practices in a fair and reasonable manner or has committed an unfair or deceptive insurance trade practice.
Iowa did not pass NRRA related legislation in 2011 and taxed only the in-state portions of the risk after the effective date of the NRRA. Comprehensive information on 2012 legislation in Iowa and other states is available on NAPSLO's website, in addition to a number of NRRA resources.
Entry Deadline is April 2 for NAPSLO Marketing Campaign Competition
The deadline for the 2012 NAPSLO Marketing Campaign Award competition, conducted in partnership with the Insurance Marketing and Communications Association's Showcase Awards Program, is April 2.
The IMCA’s Showcase Award creative team will be judging the competition, but the award will be presented at the NAPSLO annual convention in October. The traditional IMCA Showcase Awards will be presented at the IMCA annual convention in Denver, June 24-27. Entry fees are $100 per entry for members.
The NAPSLO Marketing Campaign Award competition is open to NAPSLO members only. To be judged, materials must have been in the marketplace between January 1, 2011 and March 15, 2012. The campaign entries must include a minimum of two communication vehicles (non-electronic and/or electronic) that share a common campaign theme. Additional information on the contest is available on the NAPSLO website.
The IMCA’s Showcase Award creative team will be judging the competition, but the award will be presented at the NAPSLO annual convention in October. The traditional IMCA Showcase Awards will be presented at the IMCA annual convention in Denver, June 24-27. Entry fees are $100 per entry for members.
The NAPSLO Marketing Campaign Award competition is open to NAPSLO members only. To be judged, materials must have been in the marketplace between January 1, 2011 and March 15, 2012. The campaign entries must include a minimum of two communication vehicles (non-electronic and/or electronic) that share a common campaign theme. Additional information on the contest is available on the NAPSLO website.
Sunday, March 29, 2015
Registration Deadline is April 2 for Executive Leadership School
The registration deadline for the NAPSLO Executive Leadership School, set for April 23-26 at the University of Virginia Darden School of Business in Charlottesville, is April 2 and NAPSLO members are encouraged to take advantage of the three-day MBA Executive Level program at one of America’s leading universities.
The brochure and registration materials for the Executive Leadership School are available to download from the NAPSLO Website. Tuition for the school is $2,995.
This program is designed for senior-level members who wish to broaden their perspectives on important social, political, and economic issues influencing the insurance industry. Participants enhance their leadership skills to more effectively manage change at the personal, team, and organizational levels, and will return to their organizations with the tools and mindsets to think and act more strategically.
Faculty members are selected from the Darden School of Business faculty to provide a framework for future success in strategically managing, developing and leading your firm.
Attendees will develop the enterprise perspective required to make winning choices about running their businesses in today’s complex environment. Participants will crystallize their personal world views about how to compete successfully in their market spaces, develop a deeper understanding of social, political, and economic forces affecting their business environments and relate the broad issues in the world to NAPSLO’s industry and to the career experiences—and challenges—of peer participants.
The brochure and registration materials for the Executive Leadership School are available to download from the NAPSLO Website. Tuition for the school is $2,995.
This program is designed for senior-level members who wish to broaden their perspectives on important social, political, and economic issues influencing the insurance industry. Participants enhance their leadership skills to more effectively manage change at the personal, team, and organizational levels, and will return to their organizations with the tools and mindsets to think and act more strategically.
Faculty members are selected from the Darden School of Business faculty to provide a framework for future success in strategically managing, developing and leading your firm.
Attendees will develop the enterprise perspective required to make winning choices about running their businesses in today’s complex environment. Participants will crystallize their personal world views about how to compete successfully in their market spaces, develop a deeper understanding of social, political, and economic forces affecting their business environments and relate the broad issues in the world to NAPSLO’s industry and to the career experiences—and challenges—of peer participants.
Saturday, March 28, 2015
NAPSLO Past President Tony Markel's Wife Passes Away
NAPSLO sends its heartfelt sympathies to Tony Markel, NAPSLO Past President and the Markel family today on the passing of Tony's wife Sue, following a prologned yet courageous battle with cancer.
Per Sue's wishes, the family is requesting that in lieu of flowers, contributions be sent to:
City of Hope/Markel-Friedman Fund
1055 Wilshire Boulevard
Los Angeles, CA 90017
Attn: Paulette Pasciuti
Any cards, letters, etc., may be sent to:
Tony Markel
P.O. Box 2009
Glen Allen, VA 23058-2009
The family will receive visitors from 5p to 7p on Tuesday, January 29.
Bliley Funeral Home
3801 Augusta Avenue
Richmond, VA 23230
P: 804.355.3800
The funeral will be at 11:00a on Wednesday, January 30, with interment immediately following in the St. Mary's churchyard.
St. Mary's Episcopal Church
12291 River Road
Richmond, VA 23238
P: 804.784.5678
http://www.stmarysgoochland.org
Per Sue's wishes, the family is requesting that in lieu of flowers, contributions be sent to:
City of Hope/Markel-Friedman Fund
1055 Wilshire Boulevard
Los Angeles, CA 90017
Attn: Paulette Pasciuti
Any cards, letters, etc., may be sent to:
Tony Markel
P.O. Box 2009
Glen Allen, VA 23058-2009
The family will receive visitors from 5p to 7p on Tuesday, January 29.
Bliley Funeral Home
3801 Augusta Avenue
Richmond, VA 23230
P: 804.355.3800
The funeral will be at 11:00a on Wednesday, January 30, with interment immediately following in the St. Mary's churchyard.
St. Mary's Episcopal Church
12291 River Road
Richmond, VA 23238
P: 804.784.5678
http://www.stmarysgoochland.org
Inventory Your Contents with Evernote
One of the most difficult claims to suffer from a property stand point (meaning building and/or contents) is a total loss on a home or business. By total loss I mean that either a fire or tornado has leveled your home or business and there is nothing left but debris. One of the reasons this can be so difficult is that it is very daunting to try and remember all that was in your home or business as well as document all that was inside the building prior to the insurance loss.
There are a number of specialty software’s out there that help individuals and business inventory their belongings, and we recommend any that you find useful and user friendly. However, there is another way to help you document your personal and business belongings. I have found a very useful website called Evernote (www.evernote.com). I use it as my cyber file cabinet. The system allows you to upload documents (i.e., PDFs, Word Documents, etc), pictures, voice memos, emails and any notes you wish to directly type into their system. All of this is then securely stored over the web and can be accessed from anywhere. Where I find this website useful, when it comes to creating an inventory, is that I can take a picture of every room in my home or office and store it in a location that I can always get access to it. Prior to Evernote, we used to encourage clients to take pictures and store them at a secondary location but this way everything is digital and accessible from anywhere. So if you had a claim at your location, all you would have to do is log into Evernote from a computer and email all your pictures to the insurance adjustor. That way they will see all that they need to help replace in your home.
My advice on what to take pictures of is as follows: All rooms in the house (including basement, attic and garage), all closets and all cabinets. One thing to note, some items such as Jewelry, Guns, Furs, Stamp Collections, Coins, Money, Silverware and Baseball Cards have limitations in the policy. Be sure to schedule those items on a special insurance rider policy. By the way, any appraisals for jewelry, fine arts, etc. can also be stored on Evernote so you don’t have to worry about them being lost or destroyed.
There are a number of specialty software’s out there that help individuals and business inventory their belongings, and we recommend any that you find useful and user friendly. However, there is another way to help you document your personal and business belongings. I have found a very useful website called Evernote (www.evernote.com). I use it as my cyber file cabinet. The system allows you to upload documents (i.e., PDFs, Word Documents, etc), pictures, voice memos, emails and any notes you wish to directly type into their system. All of this is then securely stored over the web and can be accessed from anywhere. Where I find this website useful, when it comes to creating an inventory, is that I can take a picture of every room in my home or office and store it in a location that I can always get access to it. Prior to Evernote, we used to encourage clients to take pictures and store them at a secondary location but this way everything is digital and accessible from anywhere. So if you had a claim at your location, all you would have to do is log into Evernote from a computer and email all your pictures to the insurance adjustor. That way they will see all that they need to help replace in your home.
My advice on what to take pictures of is as follows: All rooms in the house (including basement, attic and garage), all closets and all cabinets. One thing to note, some items such as Jewelry, Guns, Furs, Stamp Collections, Coins, Money, Silverware and Baseball Cards have limitations in the policy. Be sure to schedule those items on a special insurance rider policy. By the way, any appraisals for jewelry, fine arts, etc. can also be stored on Evernote so you don’t have to worry about them being lost or destroyed.
NAPSLO Members Can Sign-up to Host Summer Intern
NAPSLO meber firms interested in hosting a NAPSLO Summer Intern in 2009 should register for a 30-minute webinar on Wednesday, February 4 at 11:00 a.m. Eastern to learn the details.
New prospective host firms must take part in the webinar but previous hosts are not required. All prospective host firms must complete an intern host application form by Feb. 13 to request to host an intern in 2009.
Over the past few years the NAPSLO Internship Committee has expanded the number of interns it annually hosts and may be needing a host in your geographic area in 2009. Details about the intern host process, the costs, and time commitment will be reviewed during the webinar.
To take part in the webinar, click on the WEBINAR REGISTRATION LINK and create an account and sign-up for the webinar. Information on the web link and phone number will be provided after you register.
2009 Host Application Form
New prospective host firms must take part in the webinar but previous hosts are not required. All prospective host firms must complete an intern host application form by Feb. 13 to request to host an intern in 2009.
Over the past few years the NAPSLO Internship Committee has expanded the number of interns it annually hosts and may be needing a host in your geographic area in 2009. Details about the intern host process, the costs, and time commitment will be reviewed during the webinar.
To take part in the webinar, click on the WEBINAR REGISTRATION LINK and create an account and sign-up for the webinar. Information on the web link and phone number will be provided after you register.
2009 Host Application Form
NAPSLO hires Director of Government Affairs
NAPSLO has named Steven P. Stephan, CPCU, ARe, as Director of Government Relations for the Association. In the new position Mr. Stephan will be responsible for the Association’s government affairs activities at the state level, including working with the NAIC, NCOIL, and other industry organizations and also assisting the Board on legislative and regulatory matters.
“We are glad to welcome Mr. Stephan to the NAPSLO organization and believe he will be a great addition,” said President Mac Wesson. “He will be able to assist Executive Director Dick Bouhan on the increasing amount of regulatory and legislation actions facing our industry.”
Previously Mr. Stephan was Assistant Vice President and Assistant General Counsel of Employer’s Reinsurance Corporation. He also served as Vice President and General Counsel of First Specialty Insurance Corporation, Westport Insurance Corporation and Coregis Insurance Company.
His duties included advising the organization on surplus lines statutes and regulations, agent broker and MGA laws; form and rate filing laws; data calls; monitoring new laws and regulation and evaluating the impact of new laws and regulations.
Prior to working for ERC for the past 16 years, he served as law clerk for The U.S. District Court in Kansas and also for a Missouri Supreme Court Justice. He received his law degree from the University of Missouri Law School in 1987 and his undergraduate degree from Central Missouri State University.
“We are glad to welcome Mr. Stephan to the NAPSLO organization and believe he will be a great addition,” said President Mac Wesson. “He will be able to assist Executive Director Dick Bouhan on the increasing amount of regulatory and legislation actions facing our industry.”
Previously Mr. Stephan was Assistant Vice President and Assistant General Counsel of Employer’s Reinsurance Corporation. He also served as Vice President and General Counsel of First Specialty Insurance Corporation, Westport Insurance Corporation and Coregis Insurance Company.
His duties included advising the organization on surplus lines statutes and regulations, agent broker and MGA laws; form and rate filing laws; data calls; monitoring new laws and regulation and evaluating the impact of new laws and regulations.
Prior to working for ERC for the past 16 years, he served as law clerk for The U.S. District Court in Kansas and also for a Missouri Supreme Court Justice. He received his law degree from the University of Missouri Law School in 1987 and his undergraduate degree from Central Missouri State University.
NAPSLO Applauds California Legislators Plan to Drop Open-Ended Surplus Lines Tax Compact Authorization in NRRA Compliance Legislation
The expected removal by California legislators of a provision that would have authorized the state’s Board of Equalization and Franchise Tax Board to enter into an open-ended surplus line premium tax compact, or agreement, is a positive step toward having the state define how it will allocate surplus lines taxes in the future, according to NAPSLO officials.
"We didn’t believe it was appropriate to pass a law providing broad authority for agencies to enter into a compact or agreement where the exact nature, terms and financial impact of the agreement are not yet known," said NAPSLO Executive Director Richard Bouhan. "NAPSLO, and California brokers, worked with legislators to explain the need for any compact legislation to include specifics on how it would operate and are pleased to hear the compact provision in question will be dropped."
The compact provision was part of legislation (AB315) currently being considered by California legislators to bring the state into compliance with the NonAdmitted and Reinsurance Reform Act (NRRA), which goes into effect in July.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. To comply, states are revising their laws and many states are also considering forming a tax compact to handle allocation of surplus lines premium taxes.
Under the compact provision of AB315 that is expected to be dropped this week, the California Board of Equalization and the Franchise Tax Board, with the approval of the Department of Finance, could have become a party to a reciprocal surplus line premium tax compact providing for the administration, collection, and enforcement of the taxes imposed on multistate risks. However the details of establishing the compact (or agreement) would have been developed by state agencies rather than by the state legislature.
"NAPSLO believed that it was important for the state legislature to debate and approve the specific details of establishing a compact," said NAPSLO President Letha Heaton. "We are pleased that it appears the California legislators concur."
"We didn’t believe it was appropriate to pass a law providing broad authority for agencies to enter into a compact or agreement where the exact nature, terms and financial impact of the agreement are not yet known," said NAPSLO Executive Director Richard Bouhan. "NAPSLO, and California brokers, worked with legislators to explain the need for any compact legislation to include specifics on how it would operate and are pleased to hear the compact provision in question will be dropped."
The compact provision was part of legislation (AB315) currently being considered by California legislators to bring the state into compliance with the NonAdmitted and Reinsurance Reform Act (NRRA), which goes into effect in July.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. To comply, states are revising their laws and many states are also considering forming a tax compact to handle allocation of surplus lines premium taxes.
Under the compact provision of AB315 that is expected to be dropped this week, the California Board of Equalization and the Franchise Tax Board, with the approval of the Department of Finance, could have become a party to a reciprocal surplus line premium tax compact providing for the administration, collection, and enforcement of the taxes imposed on multistate risks. However the details of establishing the compact (or agreement) would have been developed by state agencies rather than by the state legislature.
"NAPSLO believed that it was important for the state legislature to debate and approve the specific details of establishing a compact," said NAPSLO President Letha Heaton. "We are pleased that it appears the California legislators concur."
Technology Survey Results
Security, developing web portals, and going paperless are among the top focus areas for IT staff, according to a survey of NAPSLO members conducted in February by the Association’s Communications & Technology Committee.
The survey was sent to NAPSLO wholesale broker and company members and the questions were a follow-up to the 2003 survey conducted by NAPSLO. A copy of the current survey and the 2003 survey are available on the NAPSLO website, in the Technology Section, under Technology Survey.
One change occurring in the industry since the 2003 survey is the movement by brokers and MGAs to using third party agency management systems as opposed to in-house or custom programs. In 2003 approximately 20% reported using in-house programs, compared to 11% in 2007.
Among the other areas examined in the survey included asking about the top focus areas for IT departments. Security was the top issue with 47% of respondents noting it, going paperless was second at 45% and developing a web portal was third at 43%.
The survey was sent to NAPSLO wholesale broker and company members and the questions were a follow-up to the 2003 survey conducted by NAPSLO. A copy of the current survey and the 2003 survey are available on the NAPSLO website, in the Technology Section, under Technology Survey.
One change occurring in the industry since the 2003 survey is the movement by brokers and MGAs to using third party agency management systems as opposed to in-house or custom programs. In 2003 approximately 20% reported using in-house programs, compared to 11% in 2007.
Among the other areas examined in the survey included asking about the top focus areas for IT departments. Security was the top issue with 47% of respondents noting it, going paperless was second at 45% and developing a web portal was third at 43%.
Friday, March 27, 2015
Safewindshields.com
A cracked or broken windshield is a very common driving incident. It can happen at any time and anywhere. It could be a bouncing rock that was kicked up from another vehicle or a blown truck tire that crashes into the windshield. What is even more unfortunate is that it could happen whether you are in town or out of town traveling. Since a cracked or broken windshield is so common you would think it would be no big deal when and where you get it fixed. However, if you think about it, a windshield is the one major piece of the car that helps to keep you inside a vehicle incase of a head on collision. This could be a matter of life and death and when you put it in that light it becomes a little bit more important to make sure you have the windshield fixed and fixed by the appropriate shops. Auto Glass Replacement Safety Standards Council (AGRSS) works to certify and set stand for glass repair companies. Their website www.safewindshields.com, is a very helpful tool when it comes to getting your vehicle windshield replaced, especially if you are out of town traveling. The top right part of the screen has a “Registered Shop Locator” where you can type in a zip code and find the accredited glass repair shops near your current location. This way, even when you are out of town, you can find a qualified glass repair shop to fix your windshield and know that it will be installed correctly and securely.
So next time you get a rock in the windshield be sure to visit the AGRSS website or call your friendly Fey Insurance Services agent to make sure you get a high quality glass repair shop.
NAPSLO Optimistic About NRRA Passage After Capitol Hill Visit
NAPSLO leaders said they were optimistic about passage of the Nonadmitted and Reinsurance Reform Act (NRRA) after more than 20 NAPSLO representatives visited with Members of the Senate Committee on Banking, Housing and Urban Affairs on Tuesday to discuss surplus lines issues.
During the meetings, NAPSLO representatives spoke with Senator Evan Bayh (D-IN), who along with Sen. Mel Martinez (R-FL), plan on introducing a version of NRRA. The visits were part of NAPSLO’s fourth annual “Day on the Hill” and members representing NAPSLO brokers and insurers met with almost all Members or staff on the Senate Banking Committee, and also with Leadership on the House Financial Services Committee.
"With the leadership of Senators Bayh and Martinez on surplus lines reform, there is tremendous hope that this important piece of legislation will pass," said NAPSLO President John Wood. “This bill was approved unanimously by the House of Representatives the past two sessions and based our discussions with Senators and Representatives this week we are encouraged that the bill will be introduced and passed by Congress.”
The Nonadmitted and Reinsurance Reform Act (NRRA) is aimed specifically at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform system, while preserving the role of the state regulator.
“We believe this bill will solve a number of regulatory problems by establishing federal standards for state regulation, while retaining the state regulation that avoided many of the problems seen in the recent crisis,” said NAPSLO Executive Director Richard Bouhan. “The bill enjoys broad support within the industry and we look forward to its passage.”
In February, Rep. Dennis Moore (D-KS) and Rep. Scott Garrett (R-NJ) of the House Committee on Financial Services announced that they would take the lead in introducing the NRRA in the House. The NRRA is similar to bills passed by the House in the 109th and 110th Congress. The NRRA was also introduced in the Senate in the 110th Congress and the Senate Banking Committee discussed the bill in a hearing on insurance regulation in July of 2008. Chairman Dodd indicated his intent to move the bill at last summer's hearing but the financial crisis prevented further consideration of the bill by the Senate in 2008.
“We are encouraged by our discussions with Members of Congress and believe the bill has a good chance to be approved,” said Maria Berthoud of B&D Consulting, which represents NAPSLO in Washington. Berthoud added “the new leadership of Senator Bayh has given the bill added momentum."
During the meetings, NAPSLO representatives spoke with Senator Evan Bayh (D-IN), who along with Sen. Mel Martinez (R-FL), plan on introducing a version of NRRA. The visits were part of NAPSLO’s fourth annual “Day on the Hill” and members representing NAPSLO brokers and insurers met with almost all Members or staff on the Senate Banking Committee, and also with Leadership on the House Financial Services Committee.
"With the leadership of Senators Bayh and Martinez on surplus lines reform, there is tremendous hope that this important piece of legislation will pass," said NAPSLO President John Wood. “This bill was approved unanimously by the House of Representatives the past two sessions and based our discussions with Senators and Representatives this week we are encouraged that the bill will be introduced and passed by Congress.”
The Nonadmitted and Reinsurance Reform Act (NRRA) is aimed specifically at streamlining and reducing barriers in state regulation of surplus lines insurance and reinsurance. It would create a uniform system, while preserving the role of the state regulator.
“We believe this bill will solve a number of regulatory problems by establishing federal standards for state regulation, while retaining the state regulation that avoided many of the problems seen in the recent crisis,” said NAPSLO Executive Director Richard Bouhan. “The bill enjoys broad support within the industry and we look forward to its passage.”
In February, Rep. Dennis Moore (D-KS) and Rep. Scott Garrett (R-NJ) of the House Committee on Financial Services announced that they would take the lead in introducing the NRRA in the House. The NRRA is similar to bills passed by the House in the 109th and 110th Congress. The NRRA was also introduced in the Senate in the 110th Congress and the Senate Banking Committee discussed the bill in a hearing on insurance regulation in July of 2008. Chairman Dodd indicated his intent to move the bill at last summer's hearing but the financial crisis prevented further consideration of the bill by the Senate in 2008.
“We are encouraged by our discussions with Members of Congress and believe the bill has a good chance to be approved,” said Maria Berthoud of B&D Consulting, which represents NAPSLO in Washington. Berthoud added “the new leadership of Senator Bayh has given the bill added momentum."
Thursday, March 26, 2015
State Groups Ask Congress to Delay NRRA Implementation
The National Conference of Insurance Legislators (NCOIL), the Council of State Governments (CSG) and the National Conference of State Legislatures (NCSL) have sent an open letter to Congress asking that implementation of the surplus lines section of the NonAdmitted and Reinsurance Reform Act be delayed one year until July 21, 2012.
The groups said that while major organizations comprising state legislators have coalesced around an interstate compact to address NRRA surplus lines insurance taxation and regulatory provisions some states may be hard-pressed to join the surplus lines compact in the first few months of the new year.
The letter said that the three groups plan to work towards enactment of the SLIMPACT tax allocation compact but urged Congress to extend the NRRA effective date for the its surplus lines/nonadmitted insurance provisions to at least July 2012.
The groups said that while major organizations comprising state legislators have coalesced around an interstate compact to address NRRA surplus lines insurance taxation and regulatory provisions some states may be hard-pressed to join the surplus lines compact in the first few months of the new year.
The letter said that the three groups plan to work towards enactment of the SLIMPACT tax allocation compact but urged Congress to extend the NRRA effective date for the its surplus lines/nonadmitted insurance provisions to at least July 2012.
Surplus Lines Law Group Spring Meeting Set For April 26-27 in Las Vegas
The Surplus Lines Law Group spring meeting is set for April 26-27, 2012 at the Westin Casuarina in Las Vegas and registration materials are available on the Nevada Surplus Lines Association website.
A link to the hotel for hotel reservations is also on the site. The group rate for the conference is available until April 25, 2012, subject to availability.
The meeting is sponsored by the Nevada Surplus Lines Association (NSLA) and the Insurance Licensing Services of America (ILSA).
A link to the hotel for hotel reservations is also on the site. The group rate for the conference is available until April 25, 2012, subject to availability.
The meeting is sponsored by the Nevada Surplus Lines Association (NSLA) and the Insurance Licensing Services of America (ILSA).
Surplus Lines Law Group Sets Spring & Fall Meetings Dates
The Surplus Lines Law Group has announced the dates of their 2010 Spring and Fall meetings. The Spring meeting will take place April 15-16 in San Francisco and the fall meeting will take place September 30 & October 1 in New York City.
The surplus lines law group is an informal group of attorneys, compliance professionals, and trade associations that meet to discuss legal issues impacting surplus lines insurance.
The Surplus Line Association of California will host the Spring meeting and the Excess Line Association of New York is hosting the fall event. Meetings start with a welcome reception and dinner on Thursday evening and the meeting begins on Friday morning and concludes after lunch.
Information regarding registration for the meetings and also hotel reservations will be available soon.
The surplus lines law group is an informal group of attorneys, compliance professionals, and trade associations that meet to discuss legal issues impacting surplus lines insurance.
The Surplus Line Association of California will host the Spring meeting and the Excess Line Association of New York is hosting the fall event. Meetings start with a welcome reception and dinner on Thursday evening and the meeting begins on Friday morning and concludes after lunch.
Information regarding registration for the meetings and also hotel reservations will be available soon.
NAPSLO notes the passing of two longtime members
NAPSLO notes the passing of two longtime members, Thomas Patrick Enright, President of Enright & Wilson in Hollywood, FL, who passed away on Sunday, January 23 and William "Bill" J. Salladin of Hunt Valley, MD, retired chairman for All Risks, Ltd., who passed away on Friday, January 21.
Mr. Enright was a Director, President and Past-President Representative of the Florida Surplus Lines Association as well as serving as Director on the Board of Governors' for the Florida Surplus Lines Service Office. In addition, he was an active member of FAIA, NAPSLO and AAMGA. He graduated from Canisius College in New York, 1969 and began his insurance career as an underwriter trainee with USF&G in Buffalo and was later promoted to manager of USF&G's Fire, Marine and Multi-Line Department in Miami, FL.
Mr. Enright went on to become Vice President and Branch Manager of Dana Roehrig & Associates, a division of Swett & Crawford. In 1987, he established Enright & Bradley, Inc. and in May of 1992, formed Enright & Wilson, Inc.
Mr. Salladin took over a two person independent insurance agency in 1972, following the sudden death of his father. He had recently joined the firm and had little training or experience in insurance or running a business but managed to lay the foundation for what has become the largest privately-held independent wholesale broker in the country.
A memorial service for Mr. Salladin will be held at Five Farms of the Baltimore Country Club, 11500 Mays Chapel Road, Lutherville, MD at 1:00 PM EST on Friday January 28. The family will be available to receive visitors starting at Noon with a reception to follow. In lieu of flowers, donations may be made in his honor to Prostate Cancer Research at The Brady Urological Institute of Johns Hopkins School of Medicine or to The Humane Society of Baltimore County.
Mr. Enright was a Director, President and Past-President Representative of the Florida Surplus Lines Association as well as serving as Director on the Board of Governors' for the Florida Surplus Lines Service Office. In addition, he was an active member of FAIA, NAPSLO and AAMGA. He graduated from Canisius College in New York, 1969 and began his insurance career as an underwriter trainee with USF&G in Buffalo and was later promoted to manager of USF&G's Fire, Marine and Multi-Line Department in Miami, FL.
Mr. Enright went on to become Vice President and Branch Manager of Dana Roehrig & Associates, a division of Swett & Crawford. In 1987, he established Enright & Bradley, Inc. and in May of 1992, formed Enright & Wilson, Inc.
Mr. Salladin took over a two person independent insurance agency in 1972, following the sudden death of his father. He had recently joined the firm and had little training or experience in insurance or running a business but managed to lay the foundation for what has become the largest privately-held independent wholesale broker in the country.
A memorial service for Mr. Salladin will be held at Five Farms of the Baltimore Country Club, 11500 Mays Chapel Road, Lutherville, MD at 1:00 PM EST on Friday January 28. The family will be available to receive visitors starting at Noon with a reception to follow. In lieu of flowers, donations may be made in his honor to Prostate Cancer Research at The Brady Urological Institute of Johns Hopkins School of Medicine or to The Humane Society of Baltimore County.
The Insurance Industry and the Great Recession Part II - Did the Federal Government Rescue the Insurance Industry During the Financial Crisis?
The common perception that the federal government bailed out the insurance industry during the financial crisis in the late 2000s is largely incorrect.
The first part of this article examined the public misconception, as illuminated by Peter G. Gallanis, President of the National Organization of Life and Health Guaranty Associations ("NOLHGA"), that widespread insurance insolvencies were part of the global financial crisis that occurred in the late 2000s, also known as the Great Recession. Did the Federal government rescue the insurance industry during the crisis?Another popularly-held but largely inaccurate belief, according to Gallanis, is that the federal government rescued the insurance industry during the financial crisis.[1] This misconception, along with the myth of widespread insurance insolvencies contributing to the Great Recession, has fueled legislative initiatives to escalate federal involvement in the regulation of insurance, which has long been a predominately state-run regulatory system.
Putting aside the former financial giant American International Group ("AIG") for the purposes of this discussion, Gallanis noted that several insurance companies did indeed receive a relatively small infusion of federal capital under the federal Troubled Asset Relief Program ("TARP"). The distinction is that the capital infusion is intended to keep insurance companies operating on the same keel rather than rescuing those in trouble, according to Gallanis.[2]
Generally, the insurance companies that took TARP funds were not on the verge of collapse.In other words, the insurance companies that took TARP funds from the federal government were – generally – not on the verge of collapse and thus in desperate need of funds to keep them afloat. Rather, these insurers took advantage of the cheap money being offered through the TARP program to bulwark their capital and ensure that they continued to enjoy ongoing financial stability during a period of economic upheaval.[3]
More importantly, the number of insurance companies that received federal funds, and the amount of funds those companies received, was relatively minor when compared with the number of non-insurance financial institutions that failed and the trillions of dollars that were lost in the Great Recession, as well as the billions that the U.S. government paid out to keep companies like Citigroup and Bank of America afloat.[4]
Reports in 2009 said that six of the largest insurers were lined up to receive $22 billion in bailout fundsIt was widely reported in 2009 that six "of the largest life insurers" were approved to receive "up to $22 billion in government money" under the Capital Purchase Program, part of TARP. The insurers referenced as lined up to receive TARP funds included: Genworth Financial. Inc.; Hartford Financial Services Group, Inc.; Lincoln National Corporation; Principal Financial Group, Inc.; Ameriprise Financial; and Allstate Corp.[5]
However, Genworth announced in late April of 2009 that it had missed a deadline to participate in the Capital Purchase Program, and therefore would not receive any TARP funds.[6]
Additionally, both Prudential and Ameriprise announced in May of 2009 that they were declining to participate in the TARP relief program.[1]
Then, in June of 2009, both Allstate and Principal Financial announced that they, too, were declining to participate in the TARP program.[8]
Only two of those large life insurers actually received TARP funds.In the end, of the six large life insurers who publically announced as preparing to accept up to $22 billion in TARP investments, only two of them actually received relief funds. Moreover, the total amount of TARP funds disbursed to those two insurers was less than $4.5 billion.[9]
While $4.5 billion is a significant amount of money, it is still less than three percent (3%) of the $200 billion in funds invested by the U.S. Treasury Department as part of the Capital Purchase Program. Additionally, it is less than two percent (2%) of the $356 billion actually invested under the entire TARP program, and less than one percent (1%) of the 700 billion committed to TARP by Congress.[10]
The federal government spent as much as $3 trillion in recovery effortsIn addition to TARP, several other government initiatives pushed billions of dollars into the economy as part of the relief effort during the Great Recession, including the Federal Reserve rescue efforts, the Economic Stimulus Act of 2008, FDIC bank takeovers and other federal stimulus programs, as well as other financial initiatives. These efforts are estimated to have injected as much as $3 trillion in economic rescue efforts.[11]
Thus, when AIG is removed from the analysis, the facts suggest that only a minimal amount of the trillions of dollars that the federal government invested as part of its efforts to stem the Great Recession directly benefitted large elements of the insurance industry. Certainly, to the extent the federal recovery efforts might have lessened or cured the Great Recession, the insurance industry benefitted indirectly, but the common perception that the federal government rescued the insurance industry during the financial crisis in the late 2000s is largely incorrect.
Part III of this article will examine why life insurance companies seemed to be more susceptible to the financial strain from the Great Recession than other types of insurers.
1. Seven Things We Know About Insurance and the Financial Crisis – That Aren't True, Peter G. Gallanis, NOLHGA Annual Meeting, October, 2011.
2. Seven Things..., Id.
3. What Insurance 'Bailout' Means for Your Policy, Russell Goldman, ABC News, April 9, 2009.
4. Bailout RecipientsProPublica, December 12, 2011.
5. Six insurers cleared to accept TARP money, Sam Mamudi, Alistair Barr, MarketWatch, May 15, 2009.
6. Genworth not participating in Capital Purchase Program, Wallace Witkowsk, MarketWatch, April 09, 2009.
7. Prudential, Ameriprise turn down TARP, United Press International, Inc., May 16, 2009.
8. Principal Financial declines participation in TARP, Wallace Witkowski, MarketWatch, June 11, 2009; Allstate Declines TARP Bailout Funds Jonathan Stempel, John Wallance, Reuters, May 19, 2009.
9. Bailed Out Banks, CNNMoney.com.
10. CNNMoney.com's Bailout Tracker, David Goldman, CnnMoney.com.
11. CNNMoney.com's Bailout Tracker, Id.
2. Seven Things..., Id.
3. What Insurance 'Bailout' Means for Your Policy, Russell Goldman, ABC News, April 9, 2009.
4. Bailout RecipientsProPublica, December 12, 2011.
5. Six insurers cleared to accept TARP money, Sam Mamudi, Alistair Barr, MarketWatch, May 15, 2009.
6. Genworth not participating in Capital Purchase Program, Wallace Witkowsk, MarketWatch, April 09, 2009.
7. Prudential, Ameriprise turn down TARP, United Press International, Inc., May 16, 2009.
8. Principal Financial declines participation in TARP, Wallace Witkowski, MarketWatch, June 11, 2009; Allstate Declines TARP Bailout Funds Jonathan Stempel, John Wallance, Reuters, May 19, 2009.
9. Bailed Out Banks, CNNMoney.com.
10. CNNMoney.com's Bailout Tracker, David Goldman, CnnMoney.com.
11. CNNMoney.com's Bailout Tracker, Id.
Wednesday, March 25, 2015
General Liability vs Errors and Omissions
General Liability
What it protects against: Accident and injuries that occur on company property or the property of a customer. It also protects against product liabilities.
How it works: Commercial General Liability (CGL) includes payments to an injured person or to an owner of property that is damaged. These can cover medical expenses and the cost of defending lawsuits, including legal settlements or investigations. Insurance may also provide the means to post bonds during a legal proceeding, or pay judgments. A CGL policy also covers libel, slander, copyright infringement and other personal and advertising injuries.
Who needs it: Most, if not all, companies
Errors & Omissions
What it protects against: Claims by customers that a company made mistakes or failed to perform contractual work. It should include coverage of the cost of legal defense. It is also know as professional liability insurance.
How it works: It insures mistakes made by a company’s owners, employees and contractors. It is similar to a doctor’s medical malpractice insurance.
Who needs it: Anyone who advises, recommends, consults or designs solutions should consider this coverage.
Information provided by: Bests Review The Guide to Understanding Business Insurance Products (2007-2008)
So What is the Difference?:
The key difference between the above two mentioned business insurance coverages is that General Liability only pays claims that have resulted in bodily injury or property damage (meaning damage to property not owned or leased by the business). It will not cover a financial loss that is a result of errors or alleged errors done by the business or the omission of work that the business was contractual obligated to do. That is where Errors & Omissions Insurance steps in and pays for the cost to defend the business as well as any settlements that a court requires them to pay for their error or omission of work.
What it protects against: Accident and injuries that occur on company property or the property of a customer. It also protects against product liabilities.
How it works: Commercial General Liability (CGL) includes payments to an injured person or to an owner of property that is damaged. These can cover medical expenses and the cost of defending lawsuits, including legal settlements or investigations. Insurance may also provide the means to post bonds during a legal proceeding, or pay judgments. A CGL policy also covers libel, slander, copyright infringement and other personal and advertising injuries.
Who needs it: Most, if not all, companies
Errors & Omissions
What it protects against: Claims by customers that a company made mistakes or failed to perform contractual work. It should include coverage of the cost of legal defense. It is also know as professional liability insurance.
How it works: It insures mistakes made by a company’s owners, employees and contractors. It is similar to a doctor’s medical malpractice insurance.
Who needs it: Anyone who advises, recommends, consults or designs solutions should consider this coverage.
Information provided by: Bests Review The Guide to Understanding Business Insurance Products (2007-2008)
So What is the Difference?:
The key difference between the above two mentioned business insurance coverages is that General Liability only pays claims that have resulted in bodily injury or property damage (meaning damage to property not owned or leased by the business). It will not cover a financial loss that is a result of errors or alleged errors done by the business or the omission of work that the business was contractual obligated to do. That is where Errors & Omissions Insurance steps in and pays for the cost to defend the business as well as any settlements that a court requires them to pay for their error or omission of work.
FIO Director Named; SLIMPACT Approved by Kentucky, Ohio
llinois Insurance Director Michael McRaith has been named by Treasury Secretary Timothy Geithner as the first Director of the Federal Insurance Office created by the Dodd-Frank Wall Street Reform and Consumer Protection Act. McRaith’s naming has received generally positive reviews from industry, consumer groups, and state regulators. He will oversee a much-anticipated report to Congress on the modernization of insurance regulation due in January 2012, and will hold a non-voting seat on the Financial Stability Oversight Council. McRaith is expected to assume the post in late May at the earliest.
Kentucky Governor Steve Beshear signed legislation into law last week which makes Kentucky the first state to adopt the surplus lines insurance multistate compliance compact, or SLIMPACT-lite. Ohio Governor John Kasich followed suit by signing similar legislation shortly thereafter. SLIMPACT-lite gives a governing commission the authority to establish formulas for premium tax allocation and collection, national eligibility standards, and consistent payment methods and regulations for multistate surplus lines policies. Ten states must adopt SLIMPACT-lite legislation before the governing commission can be established. A bill for SLIMPACT-lite passed through both of New Mexico’s legislatures now awaits their governor’s signature.
Kentucky Governor Steve Beshear signed legislation into law last week which makes Kentucky the first state to adopt the surplus lines insurance multistate compliance compact, or SLIMPACT-lite. Ohio Governor John Kasich followed suit by signing similar legislation shortly thereafter. SLIMPACT-lite gives a governing commission the authority to establish formulas for premium tax allocation and collection, national eligibility standards, and consistent payment methods and regulations for multistate surplus lines policies. Ten states must adopt SLIMPACT-lite legislation before the governing commission can be established. A bill for SLIMPACT-lite passed through both of New Mexico’s legislatures now awaits their governor’s signature.
5 Things You Should Be Doing to Hire and Keep the Best New Talent
As Executive Director of NAPSLO, I recently had the honor of serving as a panelist on the “Attracting and Developing Tomorrow’s Insurance Stars” webinar hosted by A.M. Best Company. I was joined by Noelle Codispoti, Executive Director of Gamma Iota Sigma, the fraternity for students in insurance risk management programs; Jeffrey D. Henry, Director of Education and Professional Development of the American Association of Managing General Agents (AAMGA); James P. Arnold, Chief Administrative Officer of FirstComp; and Kevin Johnson, a young underwriter with Munich Re America to discuss how companies are finding new ways to identify and attract recent graduates and what it takes to get those new hires to stick around.
The truth is things are pretty much the same as they have been in the past – very few people choose the insurance industry; most fall into it. That’s why we as industry leaders have to continue, and perhaps even step up our game, in telling the story of why insurance is a great career choice. Broadcasting the benefits of our industry falls in every player’s corner from professional associations and trade media outlets to individual companies and their executives.
Here are the top 5 ways we can broadcast the benefits of our industry and increase the number of potential leaders and decrease turnover:
1. Always Be Mining Gems – Even Those in the Rough
I agree with Mr. Arnold on this -- Sure, it’s easy to attract graduates who have their hearts set on insurance careers, but that’s a very small group. The onus is now on us to reach out to bright students who may not have considered our field and show them how their passions/majors can fit into an insurance career.
2. Help Colleges and Faculty Spread the Message
This goes along with point No. 1. Don’t rely on colleges and faculty to groom your future leaders in a vacuum. Mr. Henry encourages his members to get involved – attend career fairs, contact faculty to see if there are any opportunities to make presentations to students, find innovative ways to start discourse with students.
3. Don’t Get Senioritis
Ms. Codispoti made an excellent observation – there is a lack of available internships for seniors, and it’s even tighter for younger students who wish to explore the industry to ensure they are choosing the right major. She also pointed out that having more internship opportunities could even help to reduce turnover. Maybe you don’t have the resources to offer full-blown internships to younger students, but you certainly can reach out to them in smaller ways – consider offering job shadowing days or a lunch and learn at your office.
4. Remember, It’s Not a Job, It’s a Career
Mr. Arnold brought up an interesting discussion point when the topic turned to new employee turnover: It’s not always only about monetary compensation. His company places a premium in creating a work environment that encourages the way Millennials like to work – encouraging connectivity, allowing employees to use their own devices (phones, smart pads, laptops, etc.) for and at work, offering collaborative work spaces, as well as providing the opportunity to work remotely when the need arises. They also employ “career latticing,” which allows employees to move around in the company and exposes them to different responsibilities.
5. Formalize Your Mentorship Program
Finding knowledgeable mentors is still a valuable recruiting and retention tool, but the way those relationships are formed and maintained has changed. It’s no longer a teacher-student type of arrangement, but one in which valuable information is exchanged by both professionals, especially now that Millennials are more likely the experts in subjects like technology. However, as Mr. Johnson pointed out, it’s often difficult for new entrants to the industry to find a willing mentor who can help with career planning five, even 10 years out, which can really solidify a young person’s commitment to the industry, if not the company.
So, how successful has NAPSLO been in doing its share to attract new blood to the industry? Extremely -- many of our interns and scholarship recipients have enjoyed very successful careers in the E&S industry. Based on a 2006 survey of past interns, 104 of 176 responses reported that 90 percent of past interns were employed in the insurance industry, with more the 2/3 in surplus lines. And we will continue to innovate and do our part. That’s a promise.
For a complete list of links to the information and programs NAPSLO provides to encourage an insurance industry career choice, click here. If you missed the webinar, click here to check out the recorded session.
The truth is things are pretty much the same as they have been in the past – very few people choose the insurance industry; most fall into it. That’s why we as industry leaders have to continue, and perhaps even step up our game, in telling the story of why insurance is a great career choice. Broadcasting the benefits of our industry falls in every player’s corner from professional associations and trade media outlets to individual companies and their executives.
Here are the top 5 ways we can broadcast the benefits of our industry and increase the number of potential leaders and decrease turnover:
1. Always Be Mining Gems – Even Those in the Rough
I agree with Mr. Arnold on this -- Sure, it’s easy to attract graduates who have their hearts set on insurance careers, but that’s a very small group. The onus is now on us to reach out to bright students who may not have considered our field and show them how their passions/majors can fit into an insurance career.
2. Help Colleges and Faculty Spread the Message
This goes along with point No. 1. Don’t rely on colleges and faculty to groom your future leaders in a vacuum. Mr. Henry encourages his members to get involved – attend career fairs, contact faculty to see if there are any opportunities to make presentations to students, find innovative ways to start discourse with students.
3. Don’t Get Senioritis
Ms. Codispoti made an excellent observation – there is a lack of available internships for seniors, and it’s even tighter for younger students who wish to explore the industry to ensure they are choosing the right major. She also pointed out that having more internship opportunities could even help to reduce turnover. Maybe you don’t have the resources to offer full-blown internships to younger students, but you certainly can reach out to them in smaller ways – consider offering job shadowing days or a lunch and learn at your office.
4. Remember, It’s Not a Job, It’s a Career
Mr. Arnold brought up an interesting discussion point when the topic turned to new employee turnover: It’s not always only about monetary compensation. His company places a premium in creating a work environment that encourages the way Millennials like to work – encouraging connectivity, allowing employees to use their own devices (phones, smart pads, laptops, etc.) for and at work, offering collaborative work spaces, as well as providing the opportunity to work remotely when the need arises. They also employ “career latticing,” which allows employees to move around in the company and exposes them to different responsibilities.
5. Formalize Your Mentorship Program
Finding knowledgeable mentors is still a valuable recruiting and retention tool, but the way those relationships are formed and maintained has changed. It’s no longer a teacher-student type of arrangement, but one in which valuable information is exchanged by both professionals, especially now that Millennials are more likely the experts in subjects like technology. However, as Mr. Johnson pointed out, it’s often difficult for new entrants to the industry to find a willing mentor who can help with career planning five, even 10 years out, which can really solidify a young person’s commitment to the industry, if not the company.
So, how successful has NAPSLO been in doing its share to attract new blood to the industry? Extremely -- many of our interns and scholarship recipients have enjoyed very successful careers in the E&S industry. Based on a 2006 survey of past interns, 104 of 176 responses reported that 90 percent of past interns were employed in the insurance industry, with more the 2/3 in surplus lines. And we will continue to innovate and do our part. That’s a promise.
For a complete list of links to the information and programs NAPSLO provides to encourage an insurance industry career choice, click here. If you missed the webinar, click here to check out the recorded session.
- Brady Kelley
Tuesday, March 24, 2015
Best's Review Magazine Sets Webinar on What Risk Professionals Should Know About Cyber Liability
A panel of experts on cyber liability coverage will explore the emerging risks of this fast-developing sector in a one-hour webinar set for Thursday, January 27 at 2 p.m. (eastern). Cyber liability is a growing area of insurance coverage as more businesses turn to electronic communications, operations and storage.
The event is presented by Philadelphia Insurance Companies and people interested can register online at no charge.
The panel will explore developments in and coverage considerations for cyber liability issues, including:
For more information about the webinar, please call (908) 439-2200, ext. 5561, or e-mail lee.mcdonald@ambest.com
The event is presented by Philadelphia Insurance Companies and people interested can register online at no charge.
The panel will explore developments in and coverage considerations for cyber liability issues, including:
- Nonphysical business interruption;
- Network security and privacy;
- Electronic media;
- Cyber extortion;
- Customer notification requirements; and
- Public relations.
- Thomas Herendeen, Vice President, Management & Professional Liability, Philadelphia Insurance Companies;
- Mark Greisiger, President, NetDiligence;
- John F. Mullen Sr., Partner; Chair of Complex Litigation Practice Group, Nelson, Levine, de Luca & Horst; and
- Robert Parisi, Senior Vice President, National Practice Leader - Privacy & Network Risks, Marsh, Inc.
For more information about the webinar, please call (908) 439-2200, ext. 5561, or e-mail lee.mcdonald@ambest.com
Named Peril vs. Open Peril Homeowner Policies
Many today feel all homeowner policies are the same, that they are a commodity of sorts. In our professional opinion this is not the case. One glaring difference between homeowner policies is whether they are “Named Peril” or “Open Peril” homeowner policies. Named Peril insurance policies specifically list the risks they will cover your home for. The policy contract will cover such happenings as wind, lightning, fire, smoke, theft, etc. If something happens to your home that doesn’t fall into the insurance policies definitions of the name peril terms than there is no coverage.
Open Peril insurance policies state that all risks are covered except for a list of exclusions that are outlined in the policy contract. This type of contract gives broader coverage than a Named Peril because the incident that happened to your home or personal contents doesn’t have to fit into a certain definition of coverage. As long as the incident isn’t excluded it is covered.
A homeowner policy that is using a “Named Peril” contract will always be cheaper than an “Open Peril” contract. It is important to know this so that you don’t fall victim to purchasing solely on price. You may be excited to see a savings from one policy to the next but that savings could be at a much higher cost and exposure to you. Unfortunately you may not know this until you actually have a claim and are staring at a bill that would have been covered under an Open Peril policy but is not covered now under your Named Peril policy.
This is just one example of what may be different between homeowner policies. Other things like deductibles, specialty items coverage, fallen tree coverage, water backing up sewers and drains, and earthquake coverage are a few others to consider.
Surplus Lines Stamping Offices Report Continued Premium Growth in 2013
The Surplus Lines Stamping Office of Texas issued a report showing that 14 states with stamping offices saw growth in surplus lines premium during 2013 when compared to 2012. Total surplus lines premium reported to the Stamping Offices was nearly $22.5 billion, representing more than 3.1 million transactions. While the report indicates growth of 15.5% in total, it is heavily influenced by a large amount of prior years’ return premium transactions processed by New York in 2012. In 2012, New York processed a significant volume of return premium for policy years prior to 2012. Therefore, total 2012 New York premium was artificially low, making the percentage increase in New York premium comparing 2012 to 2013 artificially high. When excluding New York for this anomaly, the remaining stamping offices reported a 12.2% increase in 2013 premium compared to 2012. This report is now available by clicking here.
The report of stamping office premium during the first six months of 2013 relative to the same period in 2012 is also available illustrating a 21.2% increase. When excluding New York and its 2012 return premium transaction anomaly, the remaining stamping offices reported a 15.1% increase in premium. To view the six-month report of 2013 to 2012 data, click here.
The report of calendar year 2012 to 2011 comparisons is also available illustrating a 0.9% increase in 2012 premium volume. When excluding New York and its 2012 return premium transaction anomaly, the remaining stamping offices reported an 11.8% increase in premium. To view the report of 2011 to 2012 data, click here.
Texas Data Call Includes Surplus Lines Insurers
Surplus lines insurers eligible to do business in Texas should have received noticeearly this month from the Insurance Commissioner requiring all insurers to report the number of policies in force in Texas as of December 31, 2013. Insurers have been required to report this information annually since 2006. The Surplus Lines Stamping Office of Texas (SLSOT) will continue to report policy count data on behalf of those insurers not desiring or able to self-report.
SLSOT issued a memo to each insurer eligible in Texas this week, along with its policy count information, based on data from SLSOT. The memo notes each insurer will get a second run of its policies in March, to account for policies in force as of December 31 that agents reported to SLSOT office during January and February of this year. If you have any questions regarding this requirement, contact the SLSOT directly at 800.449.6394.
Preparing for Winter
Wintertime and winter weather can be tremendous fun, but cold and snow can also pose danger. Slippery roads, downed power lines and limbs, and freezing cold temperatures all bring an added measure of suspense to our daily activities. There are simple steps you can take that will take the chill off your wintertime experience.In your car. It is not enough to throw a safety kit, including emergency equipment such as blankets, candles, a shovel and traction aids into the trunk of your car and think that you are ready for operating your vehicle in inclement weather. The single most important thing we can do while driving in severe winter conditions is to slow down. A safe speed for conditions might be well under the posted speed limit. Triple the normal driving distance between you and the car in front of you. If your vehicle begins to slip, immediately take your foot off the accelerator and steer gently in the direction you want the car to go.
If your car gets stuck, clear the snow in front of and behind your tires and spread sand, kitty litter or traction mats in the front and back of your tires. Gently accelerate until you feel the tires begin to spin. Put the car in reverse and back up slowly until stopped by the snow. Rock forward again using a low, steady speed.
At home. Have your heating system inspected to make sure it is working properly. If you have an alternative heating source, it should be UL approved and inspected before using.
Good insulation will also help if power is lost. Check for possible air leaks around doors and windows. Seal electrical outlets and switches on outside walls. Stock up on easy to prepare food, first aid supplies, batteries, flashlights and a battery-operated radio.
If you do get snowed in at home and the situation isn’t dire, just relax and preserve heat by hanging blankets over windows and doors. If you use a supplemental heating device, make sure it is UL approved, in good operating condition and maintaining safe distance from flammable items.
Outside. Make sure to remove garden hoses from outside faucets. Hopefully, you remembered to clean your gutters of leaves and debris. Better yet, install gutter guards. These can help keep snow and ice from building up, which can form ice damns and damage your house. Outside heating appliances like heat pumps must be clear of snow and debris to work efficiently.
If you have to go outside, wear tight and layered clothing and sturdy watertight shoes. Make sure to cover exposed parts of the body by wearing hats, gloves and scarves. Failure to protect skin and prolonged exposure to the cold can result in frostbite. The nose, cheeks, ears, fingers and toes (your extremities) are most commonly affected.
Ohio Governor Signs Surplus Lines Legislation
Ohio Gov. John R. Kasich signed House Bill 122, legislation continuing Ohio’s involvement in the “surplus lines” insurance market. HB 122 permits the Director of the Ohio Department of Insurance to join a compact if deemed advantageous to the state and harmonizes Ohio insurance law with federal requirements imposed through the Non-Admitted and Reinsurance Reform Act (NRRA), a provision included in the Dodd-Frank legislative package passed by Congress in 2010.
The NRRA goes into effect in July 2011 and each year Ohio collects approximately $27 million from surplus lines premium taxes, and the NRRA requires states to enter into either a compact or multi-state agreement in order to continue collection of surplus lines premium taxes on multi-state risks.
The NRRA goes into effect in July 2011 and each year Ohio collects approximately $27 million from surplus lines premium taxes, and the NRRA requires states to enter into either a compact or multi-state agreement in order to continue collection of surplus lines premium taxes on multi-state risks.
Monday, March 23, 2015
Texas Comptroller to offer Limited Tax Amnesty Program This Summer
The Texas Comptroller of Public Accounts announced it will oversee a limited Tax Amnesty Program to run from June 12 to Aug. 17, 2012.
Under the “Fresh Start” program, the Comptroller will waive penalties and interest for businesses that file delinquent tax reports and pay all taxes due, or amend reports that underreported taxes and pay the taxes due.
The program’s website indicated that tax reports originally due before April 1, 2012 are eligible for this limited amnesty but the amnesty does not apply to filing periods under audit, or identified for an audit or investigation.
According to the state, the amnesty is intended to apply to those who didn't file a tax report, underreported tax on a previously filed report, or don’t have a permit to report and remit Texas taxes.
Additional information on the program is available at http://freshstart.texas.gov.
Under the “Fresh Start” program, the Comptroller will waive penalties and interest for businesses that file delinquent tax reports and pay all taxes due, or amend reports that underreported taxes and pay the taxes due.
The program’s website indicated that tax reports originally due before April 1, 2012 are eligible for this limited amnesty but the amnesty does not apply to filing periods under audit, or identified for an audit or investigation.
According to the state, the amnesty is intended to apply to those who didn't file a tax report, underreported tax on a previously filed report, or don’t have a permit to report and remit Texas taxes.
Additional information on the program is available at http://freshstart.texas.gov.
NAIC Names Former Sen. Ben Nelson as CEO
The National Association of Insurance Commissioners (NAIC) named a new CEO this week, former United States Senator Ben Nelson of Nebraska.
Senator Nelson has a long history with the insurance industry as both a former regulator and former insurance executive. During his 12 years in the U.S. Senate, Nelson was well respected on both sides of the aisle. He was a friend to the insurance industry, long-known to be counted on for listening to our concerns. NAPSLO maintained a strong relationship with Mr. Nelson while he was in the Senate and we are looking forward to continuing our work with him at the NAIC. We believe this is an excellent choice for all those involved in insurance.
For more information on the appointment, see the NAIC press release.
Senator Nelson has a long history with the insurance industry as both a former regulator and former insurance executive. During his 12 years in the U.S. Senate, Nelson was well respected on both sides of the aisle. He was a friend to the insurance industry, long-known to be counted on for listening to our concerns. NAPSLO maintained a strong relationship with Mr. Nelson while he was in the Senate and we are looking forward to continuing our work with him at the NAIC. We believe this is an excellent choice for all those involved in insurance.
For more information on the appointment, see the NAIC press release.
Small Businesses Need Liability Insurance
Today many small businesses are popping up. The reasons for this vary. Many want to be their own boss, some people are creating their own job since they are unable to find one or many corporate companies are encouraging their employees to become 1099 consultants to help save on benefits. Either way, people are setting up on their own and it is to these people that I write this blog article.
Start up costs are a difficult things to manage when you are just beginning your business. Many demands are placed on your budget but one thing I would encourage you to put top on that list is liability insurance. All business, big or small, should have liability insurance to both protect the business itself and its customers. Here are four reasons I would strongly recommend liability insurance even for theone person shop.
1) Contracts: Contracts are king these days. Customers require contracts to do business with you. In many contracts you will see insurance requirements so it is best to have that in place at all times to be able to meet those requirements, especially if you are bidding for a job. Many start up business work out of their home but for those that lease space elsewhere you will find insurance requirements in your lease contract that need to be met.
2) Slip and Falls: As I write this article Ohio is dealing with cold weather, snow and ice. Already claims are coming in where people have slipped and injured themselves outside of businesses. Whether you are negligent or not in these situations there is still a cost to defend yourself when someone comes to your door on crutches handing you their medical bill from the fall they took on your premises.
3) Product Liability: Retailers who sell products have the exposure of something going wrong with their products and causing injury. Especially if your product is used in cooking or toys for children, this risk is always there and could be very costly.
4) Property Damage to Others: Contractors face this risk the most. If you are mowing a customer's yard and cause rocks to damage near by cars or houses you will be liable to pay for the damages. If you are a contractor working on a customers building and end up damage a portion of the building you are not working on, that damage will be your responsibility.
These are just four examples of where businesses risk having claims. Each of these would be covered by a general liability policy setup for your business. Be sure to consult with an independent agent that can help pinpoint the type of coverages that best suit your business and stay protected from unexpected expenses.
Sunday, March 22, 2015
Senate Committee OKs Financial Reform Bill
The Senate Banking Committee approved legislation on Monday to overhaul the nation's financial regulatory system by a 13-10 vote along party lines.
When the bill was introduced last week by committee Chairman Christopher J. Dodd (D-Conn.), surplus lines reform language was included in the legislation, entitled "Restoring American Financial Stability Act of 2010."According to the Washington Post, the banking committee's 23 members -- 13 Democrats and 10 Republicans -- did not consider any of the major changes that had been proposed in recent days by lawmakers from both parties.
The Post said lawmakers had filed more than 400 potential amendments to the 1,336-page legislation. Ranking Republican Sen. Richard C. Shelby (R-Ala.) and Sen. Bob Corker (R-Tenn.), who recently failed to reach a bipartisan agreement in negotiations with Dodd, were responsible for roughly 200 of the proposed changes.
Hotel Rooms Still Available at Mid-Year
Hotel rooms at the Renaissance Esmeralda Resort during the NAPSLO Mid-Year Workshop, Feb. 26 - March 1, are still available. Members can register for the Workshop online and reserve a hotel room. More than 500 people are expected to attend the Mid-Year in Indian Wells, Calif.
Insurance Journal Article on Cyber Liability
On March 5th, 2012 the Insurance Journal published an article called "What Insured's Should Know About Avoiding Cyber Liability Exposures". It was written by Christopher Bomar of Boomarang Data Backup. In the article he brings up scenarios of possible insurance claims, where the gaps might be in covering such claims and how to avoid such gaps. It is a well written article and even has a quote from one of Fey Insurance's very own, Brian Fey. Please take a look at the article as it does a great job of showing the current status of Cyber Liability needs, gaps and exposures.
Article: What Insured's Should Know about Avoiding Cyber Liability Exposures
Saturday, March 21, 2015
NAPSLO to Offer Webinar on NRRA Implementation Status on April 19
Information on the implementation status of surplus lines reforms signed into law in 2010 and their impact on the surplus lines industry will be the subject of a NAPSLO sponsored webinar on Tuesday, April 19 at 2:00 p.m. Eastern.
The webinar (The NRRA and Surplus Lines Reforms - An Update: Will You and the States Be Ready on July 21, 2011?) will review state actions to implement the NonAdmitted & Reinsurance Reform Act and what agents, brokers, carriers should know and expect when the law goes into effect.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. To comply, states are revising their laws. Many states are also considering forming a tax compact to handle allocation of surplus lines premium taxes. This may impose some additional reporting requirements for brokers and could impact companies.
There is no charge to attend the webinar and you can register on-line. You will receive an email with information on accessing the webinar. If you have any registration questions, please contact Mike Ardis at 816-741-3910.
The webinar (The NRRA and Surplus Lines Reforms - An Update: Will You and the States Be Ready on July 21, 2011?) will review state actions to implement the NonAdmitted & Reinsurance Reform Act and what agents, brokers, carriers should know and expect when the law goes into effect.
The NRRA mandates that beginning July 21 the insured's home state will be the only state with jurisdiction over surplus lines transactions and the only state that can require a tax be paid by the broker. To comply, states are revising their laws. Many states are also considering forming a tax compact to handle allocation of surplus lines premium taxes. This may impose some additional reporting requirements for brokers and could impact companies.
There is no charge to attend the webinar and you can register on-line. You will receive an email with information on accessing the webinar. If you have any registration questions, please contact Mike Ardis at 816-741-3910.
Nonadmitted bill introduced in Senate
Senators Mel Martinez (R-FL) and Bill Nelson (D-FL) have introduced a version of the Nonadmitted and Reinsurance Act of 2007 (H.R. 1065 in the House) on Tuesday as part of six pieces of legislation they introduced to comprehensively address hurricane and other natural disaster issues in the near and long term for Florida and the nation.
The six bills introduced by the Florida Senators would address ways to improve preparedness and response, reinsurance reform, tax credits for mitigation, and the potential for the development of a national catastrophe fund. The Nonadmitted and Reinsurance Act measure is aimed specifically at streamlining and reducing barriers in state regulation of the nonadmitted insurance and reinsurance. It would create a uniform system, while preserving the role of the state regulator.
In February, Rep. Dennis Moore (D-Kan.) and Rep. Ginny Brown-Waite (R-Fla.) submitted H.R. 1065 in the House. The bill is similar to H.R. 5637, which was approved 417-0 by the House in September 2006 but was not taken up by the Senate in the last legislative session.
The six bills introduced by the Florida Senators would address ways to improve preparedness and response, reinsurance reform, tax credits for mitigation, and the potential for the development of a national catastrophe fund. The Nonadmitted and Reinsurance Act measure is aimed specifically at streamlining and reducing barriers in state regulation of the nonadmitted insurance and reinsurance. It would create a uniform system, while preserving the role of the state regulator.
In February, Rep. Dennis Moore (D-Kan.) and Rep. Ginny Brown-Waite (R-Fla.) submitted H.R. 1065 in the House. The bill is similar to H.R. 5637, which was approved 417-0 by the House in September 2006 but was not taken up by the Senate in the last legislative session.