PIA Brings Main Streetto Capitol Hill

PIA FEDERAL LEGISLATIVE SUMMITMARCH 21–22, 2012 ★ WASHINGTON DC ★ WWW.PIAFLS.COM

PIA’s Position Papers on Key Insurance Issues pages 10 – 13

March 2012 National Association of Professional Insurance Agents

Thank you to the FLS Gold Level Sponsors The Hartford, MetLife and

The PIA Partnership

From the President

2 September 2009www.pianet.com

There’s not a lot of wisdom in Washington, D.C. When it comes to common sense, there’s a lot more of it in America’s Heartland.

An example is in this month’s PIA Connection. Oklahoma Insurance Commis-sioner John Doak has written a guest column that clearly sums up how the federal government is setting the stage for a takeover of insurance regulation by creating the Federal Insurance Office (FIO), and why that’s such a bad idea. Viewing things from a distance can sometimes provide a much clearer picture.

As a member-driven, grassroots association, PIA draws its strength from Main Street values. That’s why every year when our members converge on Washington, D.C. for the annual PIA Federal Legislative Summit, they bring with them a little good, old-fashioned common sense to spread around Capitol Hill, where it is in short supply.

The issues PIA members address in our meetings with our elected representatives are important and the challenges facing professional insurance agents this year are significant.

A few examples: the federal government is trying to squeeze insurance agents out of the business of selling health insurance under the new healthcare law. A federal employees union is trying to protect its members’ jobs by lobbying Congress to remove agents from distributing crop insurance. And the Federal Crop Insurance Corporation (FCIC) is mandating arbitrary caps on agent compensation for selling crop insurance.

We all know that 2012 is a critical election year, both for the future of our coun-try and the interests of professional insurance agents. Our Federal Legislative Sum-mit occurs as many issues with the potential to affect agents’ bottom lines remain in focus on Capitol Hill. That’s why it is so important that legislators hear some good old fashioned common sense, delivered to them directly from Main Street, USA.

Let me send my personal appreciation to all PIA members who engage in the political process throughout the year – be it at the FLS, during our August “Capi-tol Hill in Your Backyard,” or anytime at all. Your commitment and engagement benefits professional insurance agents everywhere. On behalf of your fellow PIA members, thank you!

Thomas C. AdderholdPresident

PresidentThomas C. Adderhold, CIC (GA)tadderhold@preferredau.comPresident-ElectAndrew C. Harris, CIC, CPCU, ARM, AIS (NJ)aharris@lianet.comVice President/TreasurerJohn G. Lee, CIC, CPIA, LUTCF (VA/DC)johnnylee@leecurtis.comSecretary/Assistant TreasurerRichard A. Clements, CIC (LA)richiec@clementsins.comImmediate Past PresidentFred Thomas, CIC (MT)fthomas@wsi-insurance.comExecutive Vice PresidentLen Brevik (PIA National)lenbr@pianet.orgPIA National Image Committee ChairmanStanley G. Logan, Jr., CIC (KY)stanlogan@llhins.comPublisher/Editor-in-ChiefTed Besesparistedbe@pianet.orgManaging EditorTim Taylortimta@pianet.orgGovernment/Regulatory Affairs Executive EditorPatricia A. Borowski, CPIWpatbo@pianet.orgContributing EditorsMike BeckerDavid EppsteinProduction EditorLaurel Prucha Moranlaurel@blueroomstudio.comAdvertising DirectorAlexi Papandon, CAEalexipa@pianet.org

PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.400 North Washington Street,Alexandria, Virginia 22314©2012 All rights reserved.The information in this publication is gen-eral in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situ-ation. Users are encouraged to consult with competent legal, financial, insur-ance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers.

All PIA members receive PIA Connec-tion at the member subscription rate of $12.00 per year.Non-member subscriptions available at $24.00 per year ppd. For additional information on any of the subjects addressed in this publica-tion, please access the PIA National website at www.pianet.com.

Members of the National Associ-ation of Professional Insurance Agents (PIA) will bring Main

Street to Capitol Hill when they convene March 21-22 in Washington, D.C. for their 2012 PIA Federal Legislative Sum-mit.

“We all know that 2012 is a critical election year, both for the future of our country and the interests of professional insurance agents,” said PIA National Pres-ident Thomas C. Adderhold. “Our sum-mit this year occurs as many issues with the potential to affect agents’ bottom lines remain in focus on Capitol Hill. That’s why this is no time for agents to sit on the sidelines.”

PIA members participating in the sum-mit remain unalterably opposed to federal encroachment on insurance, and instead support modernization of the nation’s state-based system of insurance regula-tion which has served consumers well. In addition, the insurance agents will urge lawmakers to pass a bill to reform the National Flood Insurance Program (NFIP) and extend it for five years.

“It is crucial that Congress finally pass the flood insurance reform and extension bill,” said Richard Clements, secretary/assistant treasurer of PIA National and PIA National’s representative to the Flood Insurance Producers National Commit-tee (FIPNC). “The current authorization runs until May 31, 2012, which should be plenty of time for Congress to finish work to extend the National Flood Insur-ance Program for a full five years and enact key reforms to put the program on a firm financial footing.”

“The House already passed the Flood Insurance Reform Act of 2011 (H.R. 1309) on an overwhelming, bipartisan vote of 406-22,” Clements said. “The Senate Banking Commit-tee has approved it. All that remains is for the full Senate to pass it. Our message to lawmak-ers is simple: Just get it done!”

Health, Crop, FIOMain Street insurance agents who sell

health insurance are reeling from a deci-sion by the federal Department of Health and Human Services (HHS) to include agent compensation in the calculation of medical loss ratios (MLR). As a result, the compensation of many licensed health insurance agents and brokers has been cut by as much as 50 percent. PIA members will urge that Congress enact legislation to clarify that producer compensation will not be considered as part of MLR calcu-lations, taking that determination out of the hands of HHS.

“Our members who sell health insur-ance want to continue doing so — but the Department of Health and Human Ser-vices doesn’t seem to value the participa-tion of producers. They think the govern-ment can sell and service health insurance by building a website,” said PIA National Executive Vice President & CEO Leonard C. Brevik. “Congress already mandated in the 2010 law that licensed agents were to be full participants under the new health-care law, but HHS has acted against clear Congressional intent in an effort to push agents out. Congress needs to reassert its authority over HHS.”

PIA members will also advocate for a 2012 Farm Bill that’s fair and against caps on agent compensation in crop insurance under the Standard Reinsurance Agree-ment (SRA).

In addition, the insurance agents will advise lawmakers they oppose any    rec-ommendation that may be forthcoming from the Federal Insurance Office (FIO) to grant the federal government or the FIO any measure of regulatory authority over the business of insurance.

Schedule of EventsThe 2012 PIA Federal Legislative Sum-

mit will begin with a legislative briefing for participants, held at the Marriott Crystal City in Arlington, Virginia, PIA’s headquarters hotel. The following morn-ing, participants will begin their day with a breakfast program featuring remarks by PIA leaders and Members of Con-gress. Following breakfast, PIA members will spend a full day of scheduled meet-ings with lawmakers in their Capitol Hill offices. In addition to legislative meetings on Capitol Hill, PIA members will meet with Bill Murphy, the Administrator of the USDA Risk Management Agency (RMA) on May 1 to discuss the federal crop insurance program in greater detail.

At day’s end, a reception will be held, followed by the annual fundraising and awards dinner of the PIA Political Action Committee (PIAPAC).

The legislative meetings are being held in conjunction with PIA National’s spring committee and Board of Direc-tors meetings, which follow the FLS and run through March 24. On March 23, three prestigious awards will be presented during a gala luncheon ceremony. PIA National will present the Professional Agent of the Year award, the CSR of the Year award and the Young Insurance Pro-fessional of the Year award.

“Issues that are very important to insur-ance agents, the insurance industry and insurance customers are being debated every day in Washington, D.C.,” said PIA National President-elect Andrew C. Har-ris. “These issues run the gamut, but what they have in common is the potential — depending on how they are decided — to help or hurt professional insurance agents

and our customers.” “For our voices to be heard

above the clamor of those that would gain from our loss, we need to be present in the deci-sion making process and highly visible in Washington,” Har-ris said. “Not being involved is simply not an option.”

Agents Converge On Capitol Hill for 2012 PIA Federal Legislative Summit“Not Being Involved is Simply Not an Option”

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By Leonard C. Brevik Executive Vice President & CEO PIA National

Have you noticed that people in the press are saying good things about agents lately?

There has been a noticeable upswing in positive articles about doing business with professional insurance agents. In the last few months, a steady stream of positive articles has appeared in national publica-tions such as USA Today.

The USA Today article was particularly gratifying. A business owner wrote in expressing frustration about needing so much insurance. The columnist, Gladys Edmunds, advised that “One of the rea-sons to have insurance is to allow you to run your business without worrying about unexpected things that can level a com-pany.” Then she suggested that the reader consult an insurance agent or broker.

“Insurance is important, and hav-ing someone to take care of all of your insurance needs, personal as well as pro-fessional, can make things easier to deal with,” Edmunds advised.

Overcoming the Spitzer Effect

This is the kind of positive publicity that money just can’t buy. It stands in marked contrast to the kind of misinfor-mation that was circulating during the inglorious Spitzer Era. Back then, the for-mer New York attorney general smeared professional insurance agents by painting them with a broad brush of allegations. The problem was, the allegations involved a handful of mega-brokers. Independent agents never did anything wrong, nor were they suspected of wrongdoing. But that didn’t stop Spitzer.

For a few years we had to play defense, refuting misinformation that would gain currency as a result of Spitzer’s smears, while at the same time working to get our

positive message out. It was a long, hard road.

Gradually, the tables turned. The water-shed of the change came last year, when PIA National got the Wall Street Journal to issue a public retraction and full cor-rection after falsely stating that consumers would pay more by doing business with agents because they received commis-sions. So far this year, PIA National has been featured twice in one month on the cover of the National Underwriter with positive articles about PIA members and PIA’s advocacy.

Veterans of PIA tell me that more than a decade ago, insurance reporters would sometimes remark that they thought that PIA had gone out of business. That per-ception problem has been completely turned around. Today, PIA is perceived as a major player for agents — and on some issues, the most important player — in our industry and on Capitol Hill.

PIA now has the positive public per-ception of organizations many times its size because of the quality of PIA’s work, and the important recognition by the media. Over the years, we have devel-oped the relationships with the press and invested in the work needed to continue to be regarded as authoritative and with a high degree of respect. That communi-cations strategy and our investment in it continues to pay us great dividends.

PIA Means CredibilityCommunications, public relations and

image are essential elements of what PIA National does. We create and maintain a steady stream of positive messages about all the good things professional insurance agents do. This serves to counteract the negative things that get said. More impor-tantly, it establishes and reinforces PIA’s credibility with both the consumer press and the insurance press. That high degree of credibility is necessary for PIA as it pur-sues its agenda in advocacy, public policy

and company relations. And it helps all PIA Main Street agents by enhancing their credibility in the marketplace.

Since PIA is a member-driven, grass-roots association, PIA’s Branding Pro-gram is grassroots, not top-down. The PIA Branding Program has won count-less marketing and advertising awards. It continues to provide an expanding set of tools enabling PIA members to effectively market their agencies. Of course, there is no additional charge to PIA members to make use of the PIA Branding Program — it is a member benefit.

In 2008, PIA became the first asso-ciation to give an award for excellence in social media. PIA members have been on the cutting edge in using social media to grow their businesses. The PIA National Facebook page is helping PIA National’s Grassroots Action Alerts “go viral.” A recent Grassroots alert on crop insur-ance achieved a 50 percent response rate, which is incredibly high.

Image, communications and public relations can never be afterthoughts. They are not the icing on the cake, they are key ingredients of the cake. Having a positive image doesn’t just happen. You have to constantly let people know just how valu-able you are — or they won’t know. Or worse, your competitors will say you are worthless.

PIA National’s mission statement clearly lays out our objective:

To promote, protect and defend the integrity of our members, the value of their profession and the success of their business.

More than just a mission, this is our duty. Because if we don’t speak up for the great work of Professional Insurance Agents, who will?

Leonard C. Brevik is executive vice president & CEO of PIA National.

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Richard A. Clements Secretary/Assistant Treasurer PIA National

As a proud native of the great state of Louisiana, I am no stranger to hurricanes and tropical storms.

My wife Charmaine is still haunted by memories of Hurricane Betsy in 1965. She was 12 at the time and living in a house in the Ninth Ward of New Orleans when Betsy hit. Flash ahead 40 years, and our lives were turned upside down by Hurricane Katrina. There were many more hurricanes in between.

People sometimes ask me why I’m so adamant about selling flood insurance. If you’ve ever been through a Katrina or a Betsy and been lucky enough to live to tell about it, then you know why. I’ve always felt a sense of responsibility to tell my neighbors who haven’t been through it about the danger and the need to protect themselves from floods.

You would think that flood insurance would remain an easier sell in areas with fresh memories of catastrophes. After Katrina, a lot of people insisted on getting flood insurance. There’s nothing like los-ing your home to flooding to concentrate your attention. I know from unfortunate personal experience.

The trouble is, memories can fade.

People can forget. Almost seven years after Katrina, I’m starting to see resistance to purchasing flood insurance again. In fact, I hear many of the same excuses. “I can’t afford it.” “I’ll get it later.” “Since it’s not required, I’m going to do without it.” It’s great that the United States has escaped getting hit by a major hurricane for a long time, but the downside of dodging bul-lets is it can lead to complacency. If hav-ing flood insurance is an imperative in the first year after a big storm, it should be just as important seven years later, if not more so.

In 2001, my cousin bought a house in Chalmette, Louisiana, where flooding wasn’t perceived to be a problem. Because he was in a “moderate-to-low” risk zone, the insurance wasn’t required. He wasn’t going to buy it until I told him just how little it would cost — in his case, about a dollar a day. Fortunately he took my advice, since he lost his home to Katrina four years later. He didn’t hesitate to buy a policy for his new home. Now he says he’ll always have flood insurance, even if he lives at the very highest point of the very highest mountain in the world (he is a true believer, as they say).

It Can Happen to YouThe thinking that we have to counter is

“it can’t happen to me.” Take it from me,

it can, it does and it did. People in “low-risk” areas of the country have discovered they can lose their homes to flood, too. Low-risk does not mean no risk. Resi-dents in Vermont and upstate New York who lived hundreds of miles from where Hurricane Irene made landfall, still lost everything due to flooding. Similarly, people in places like Atlanta and Nashville were devastated by days of rain in 2009.

The good folks at the National Flood Insurance Program (NFIP) have many interactive tools at www.floodsmart.gov and www.agents.floodsmart.gov to edu-cate consumers and empower agents to sell flood policies. The agent site also offers information about a co-op program that reimburses independent insurance agents up to $7,500 of their advertis-ing costs, and a direct mail program that enables agents to customize outreach on a larger scale. I use both myself.

After all these years, I count conversa-tions that convince my customers to get a flood policy as “wins” and those that do not as “losses.” I still win some and lose some — and I make sure that every customer who turns me down signs a form that shows the coverage was offered (which protects me from E & O issues).

Of course, the real satisfaction is when my customers say yes, they want flood insurance. Those words are music to my ears.

Richard A. Clements is secretary/assistant treasurer of PIA National and PIA National’s representative to the Flood Insurance Pro-ducers National Committee (FIPNC).

March 2012 9www.pianet.com

Why I’ll Always Be a Flood Agent

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National Association of Professional Insurance Agents (PIA)PIA Federal Affairs • 400 North Washington St., Alexandria, VA 22314-2353 • Phone: (703) 836-9340 • Fax (703) 836-1279

PIA email: gov@pianet.org • PIA website: http://www.pianet.com

Insurance RegulationPIA members support the states continuing as primary regulators of the business of insurance under a modernized system. Our exist-ing system of insurance regulation is a national system that is state-based, which provides vital checks and balances to ensure financial stability, safety and soundness, and should therefore be preserved. PIA:

• Supportsamodernizednationalsystemofstate-basedinsuranceregulation.• SupportsaFederalInsuranceOfficethatstrictlyadherestoitscongressionalmandatethatitisnotaregulatorofthe

business of insurance.• Opposespreemptionbyafederalinsuranceregulator,orfederalpreemptionofstateinsuranceoversight,whether

optional or mandatory.

The state insurance oversight system has demonstrated far better than others its ability to effectively protect consumers and support a solvent market over many decades. Congress does not need to make radical reforms to insurance oversight as it considers reforms to other parts of the financial services industry.

PIA supports insurance regulatory modernization efforts through the use of state-based tools. An example is expanded use of an all-jurisdiction compact structure, an approach that would be more successful than either an Optional Federal Charter or full federal oversight in encouraging soundness and stability, and avoiding marketplace disruptions.

PIA opposes proposals calling for a federal insurance regulator (whether optional or not), or any system that displaces or interferes with the state insurance law and its state based regulatory system for insurance.

While concerned by its creation, PIA can be supportive of the Federal Insurance Office (FIO) as long as it adheres to the mandate set for it by Congress that specifies it is not a regulator of the business of insurance.

Any federal regulatory creep by the FIO will be opposed by PIA.

For additional information on this issue, please contact PIA’s federal affairs department or visit www.pianet.com/regulation

National Flood Insurance ProgramPIA strongly supports common-sense reforms to the National Flood Insurance Program (NFIP) paired with a full five-year extension of the program. It is critical that property owners can buy the flood insurance they need and professional insurance agents have the coverage their clients require.

The private insurance industry has been almost entirely unwilling to underwrite flooding risk because of the catastrophic nature of these disasters. As a result, the NFIP is virtually the only way for people to protect themselves against the loss of their homes and businesses.

Allowing the flood insurance program to lapse threatens real estate markets by making it almost impossible to secure the coverage needed to go to closings. In 2010 alone, the NFIP lapsed four times and flood coverage could not be purchased or renewed for a total of 53 days. PIA:

• SupportsquickcongressionalactiontoprovideanNFIPextensionpriortotheMay31,2012expirationoftheprogram.• Supportsmulti-yearauthorizationofNFIPbyCongress,inthiscasefiveyears,inordertooperateabalanced,consis-

tent program.• Opposestheadditionofmultipleperil(wind)coveragetotheNFIP.• SupportstheforgivenessoftheNFIP’sdebt,currentlyat$18.5billion.• Supportscoordinatedfloodcoverageforcommercialpoliciesintheareaofbusinessinterruptioninsurance(BII).BIIis

currently only available in the private sector property market on a “covered peril” basis.

PIA supports H.R. 1309 introduced by Congresswoman Judy Biggert (R-IL). This bill would extend the program for 5 years, intro-duce actuarially sound rates, and would make BII coverage available through the program. Last year the House overwhelmingly passed the bill by a vote of 406-22. PIA is pushing for the Senate to act quickly and pass HR 1309 or its version, S 1940, in advance of the looming NFIP expiration on May 31, 2012.

For additional information on this issue, please contact PIA’s federal affairs department or visit www.pianet.com/flood

National Association of Professional Insurance Agents (PIA)PIA Federal Affairs • 400 North Washington St., Alexandria, VA 22314-2353 • Phone: (703) 836-9340 • Fax (703) 836-1279

PIA email: gov@pianet.org • PIA website: http://www.pianet.com

Health Care ReformPIA believes in an affordable health care system that continues to utilize licensed and trained insurance professionals that are justly compensated for their ability to deliver valuable insurance products to consumers. Further, PIA:

•Supportstheroleofindependentagentsandbrokersinhealthcarereform.•Supportsjustcompensationofinsuranceagents.•Opposesadditionalburdensonsmallbusinesses,bothfinancialandadministrative.•Supportsaffordablehealthcareoptionsthroughemployersponsoredplans.

As enacted, the Patient Protection and Affordable Care Act (PPACA) guarantees that private-sector, licensed professional insurance agents and brokers can sell health insurance policies offered by the health insurance exchanges envisioned in PPACA. Congress, as part of exercising its oversight responsibilities, must ensure that this provision in PPACA is being fully implemented. Licensed inde-pendent insurance agents and brokers must be prominently included in every health insurance exchange and compensated fairly for their services.

The PPACA included a medical loss ratio (MLR) provision that requires insurance carriers to spend 80% of their premium dollars (individual and small group plans) or 85% of their premium dollars (large group plans) directly on medical care. This ion greatly threatens the compensation to insurance agents. In fact, agents are already seeing their compensation cut by as much as 50%. PIA supports H.R. 1206 and S. 2068 to fix this problem. The bill removes agent compensation from MLR calculations and will protect consumers who rely on the valued role of an insurance agent.

The PPACA also places new financial and administrative burdens on small businesses. PIA encourages congressional action to ease the financial and administrative burdens on the business community and create an environment where businesses are encouraged to easily and affordably offer employer sponsored coverage. For additional information on this issue, please contact PIA’s federal affairs department or visit www.pianet.com/healthcare.

Crop InsurancePIA supports a Federal Crop Insurance Program that provides much needed insurance coverage to America’s farmers in a fair and equitable manner. PIA:

• Supportsa2012FarmBillthatcontinuestoutilizetheexpertiseandprofessionalguidanceofindependentinsuranceagents.

• Supportsjustcompensationforindependentinsuranceagents,thekeysalesforcefortheFCIP.• OpposesanyadditionalcutstotheFederalCropInsuranceProgram.• Supportscomprehensiveenforcementofanti-rebatingandcontrolofbusinessschemes.

Since Congress called on independent insurance agents to deliver the crop insurance program in 1981, it has been an unqualified success. Before that, when the government did it, the program was inefficient and underutilized. Despite this, there have been efforts recently to remove agents from the process. PIA strongly opposes such efforts.

Despite the success of the program, there continues to be attempts by the federal government to drastically cut funding. The 2008 Farm Bill contained over $6 billion in cuts and the most recent Standard Reinsurance Agreement (SRA) includes additional cuts to the FCIP totaling $6 billion and incorporates totally unnecessary, excessive caps on insurance agent compensation and threatens to undermine the financial success of the program.

The financial investment that Congress puts into the program ensures that this country has strong domestic food security and bal-anced international trade. It’s an incredible return on a modest investment. Congress needs to incentivize the ongoing success of this program, not make continued cuts that jeopardize its proven success.

PIA opposes any additional cuts to the crop insurance program through the 2012 Farm Bill, or any other legislative or regulatory action.

For additional information on this issue, please contact PIA’s federal affairs department or visit www.pianet.com/crop.

National Association of Professional Insurance Agents (PIA)PIA Federal Affairs • 400 North Washington St., Alexandria, VA 22314-2353 • Phone: (703) 836-9340 • Fax (703) 836-1279

PIA email: gov@pianet.org • PIA website: http://www.pianet.com

Tax and Regulatory Burdens on Small Businesses PIA supports comprehensive reforms that ease the administrative and financial burdens on small businesses. PIA:

•Supportsaclearandsimpletaxcodetoreduceadministrativeburdensandregulatorycompliancecosts.•Supportsreducingindividualandcorporateincometaxratesforsmallbusinesses.•Opposestaxprovisionsandregulationsthatimpedesmallbusinessgrowth.

Small businesses are one of this country’s greatest assets. They stimulate the economy, create jobs, and have a history of pulling this country out of recessions. Despite these significant contributions, they are hampered by over 10,000 pages of laws and regulations. Taxes, at all levels, represents a major cost of doing business and are especially harsh on small businesses.

An important ingredient for prosperous business growth is stability in the tax and regulatory environment. Congress’ short-term extensions of key tax proposals create an unclear outlook on the future and prevent businesses from hiring or expanding. Addition-ally, components of Dodd-Frank also have created a hardship on businesses’ ability to obtain capital from banks, all while Congress has failed to lift the limitations on credit union lending. While making strenuous attempts to understand, keep up, and afford the current system, small businesses are again being required to implement new standards as the Patient Protection and Affordable Care Act (PPACA) is being rolled out. Small businesses are struggling to keep up with the consequences of the current U.S. Tax Code and regulatory environment and PIA encourages swift congressional action to eliminate these onerous burdens.

For additional information on this issue, please contact PIA’s federal affairs department.

Natural Disaster Planning PIA supports a coordinated natural disaster catastrophe program that covers commercial and residential property and does not com-pete with the private sector’s capacity to provide insurance.

Comprehensive legislation to improve the Federal Government’s ability to assist in the recovery from natural catastrophes should include the following principles:

•Insurersshouldbeallowedtopricepoliciesaccordingtorisk.•Anycatastropheprogramshouldbedesignedasapublic-privatecollaborativeeffort,involvingparticipationbystates

and local governments and emphasize mitigation.•Comprehensivenaturaldisasterlegislationcannotbefullyaddressedbycombiningnewproposalswithexistingpro-

grams designed for other forms of catastrophic events, such as flood or terrorism insurance.•Increasetheavailabilityandaffordabilityofpropertyinsuranceincatastropheproneareas.

Natural disasters affect every area of the United States. Although hurricane damage has been at the forefront of the discussion on natural disasters, the reality is that severe damage can be caused by a myriad of disasters. This is a nationwide concern, not a regional problem. Whether it’s an earthquake, wildfire, windstorm, ice storm, drought, tsunami or any of the other various perils that threaten us, we need a more comprehensive plan for dealing with them. According to FEMA, there were 99 major disaster declarations in 2011 all over the country.

PIA is encouraged by the attention this issue is currently receiving in Congress. PIA is working with Congress, states and the private sector insurance industry to support open and stabilized insurance markets in order to foster economic recovery. We will continue to work with interested parties to craft legislation that meets the needs of consumers.

For additional information on this issue, please contact PIA’s federal affairs department or visit www.pianet.com/naturaldisaster.

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Producer LicensingPIA supports modernizing the existing regulation of producer licensing through state insurance departments. This system has proven to be the most effective system for protecting consumers and maintaining a vibrant marketplace for industry. PIA:

•Iscommittedtoachievingamodern,nationwideinsuranceproducerlicensingsystemutilizingmodellawsandregula-tions such as the Producer Licensing Model Act (PLMA) and electronic facilitators, such as the National Insurance Producer Registry (NIPR).

•Supportsstatebasedeffortstoincreaselicensingreciprocityanduniformity.•Supportsnarrowlytargetedfederallegislation,suchasH.R.1112(NARABII),thatwouldfacilitatereciprocitywithout

creating a new federal insurance bureaucracy.•Supportstheeffortsofstateorganizations,suchastheNationalConferenceofInsuranceLegislators(NCOIL)andthe

National Association of Insurance Commissioners (NAIC), to promote uniform state laws and regulations.

Independent insurance agencies are increasingly operating in multiple jurisdictions and therefore often are required to obtain and maintain multiple licenses. This has traditionally been a great burden on agencies, increasing their costs and taking precious resources away from serving their consumers. The state system is improving and electronic licensing is the answer.

Independent insurance agents should be able to apply for a license online and receive an answer within two days. This is the case with most jurisdictions because they have adopted the PLMA and they use NIPR for their electronic licensing needs. Although a producer can currently obtain and maintain their individual non-resident license electronically in almost every state, the system is not quite complete. Significant progress has been made over the last few years, though more work is needed in order to achieve a comprehensive nationwide, state-based licensing system. PIA believes the best thing Congress can do to help us achieve this goal is to continue to work with states to adopt more uniform laws.

For additional information on this issue, please contact PIA’s federal affairs department or visit www.pianet.com/producerlicensing.

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By John Doak Oklahoma Insurance Commissioner

For more than 150 years, the states have protected consumers while maintaining vibrant and solvent

insurance markets. Unfortunately, in the wake of the 2007-08 financial crisis the federal government believes it must assume these responsibilities.

Effective regulatory systems are in place in every state for insurance product filing, licensing and consumer assistance. State insurance departments also collect insurance taxes, monitor company sol-vency and investigate suspected fraud. The regulatory regimes are robust and protect consumers while fostering mar-ketplace competition.

Insurance commissioners are elected by the people in 11 states. Most others are appointed by their governors. These commissioners and directors serve in roles closer to the voters and more responsive to the public than federal bureaucrats.

Since 1871 the National Association of Insurance Commissioners has facilitated state regulators’ efforts to set appropri-ate benchmarks and pursue mutual goals. Working cooperatively, state insurance departments have modernized insurance regulation by developing common stan-dards that facilitate business across state lines and guarantee effective regulation without unnecessary duplication of effort.

Concerns About the FIOThe Dodd-Frank Wall Street Reform

and Consumer Protection Act of 2010 gave the federal government broad pow-ers to usurp state regulation of insurance. A legislative byproduct of the financial collapse of 2007-08, in part Dodd-Frank created the Federal Insurance Office. This new agency within the U.S. Depart-ment of the Treasury is intended to pro-vide additional oversight for an industry already among the nation’s best-regulated.

This might be understandable if insur-ers played any significant role in the financial meltdown that spawned Dodd-Frank, but they did not. Even in the case of taxpayer-rescued AIG, it was not the

conglomerate’s insurance business that tanked. Periodic financial examinations and strong capital requirements by state regulators minimize such company fail-ures. Each state also maintains a guar-antee fund protecting consumers in the event of a company’s insolvency and no state’s guarantee fund has ever failed to pay when a company went under.

It is ironic that the Federal Insurance Office was birthed because the feds failed so miserably at assessing systemic risk in the financial markets Washington did police. Washington’s track record on cre-ating effective bureaucracy is poor, yet the Federal Insurance Office is invested with new powers over an industry already suc-cessfully regulated by the states.

Beyond the small-print stating “we promise to get it right this time” are prac-tical concerns about bureaucratic redun-dancies escalating costs, clouding enforce-ment and stifling product innovation, and the prospect that this the first step in an ill-advised federal takeover of insur-ance regulation.

The Federal Insurance Office intro-duces yet another agency to which compa-nies must report — one that among other tasks assesses systemic risk in the indus-try (though states already monitor sol-vency), gathers information on insurers’ business practices particularly in certain market segments (by subpoena if neces-sary), and has the power to “recommend” to the new Financial Stability Oversight Council that an insurer be designated a “nonbank financial company” supervised by the Federal Reserve.

Staffing for this dubious work will cost Americans in federal taxes while insurers’ compliance expenses will cost Americans on their premiums.

Proposals that would give insurers the choice of federal chartering rather than state licensing raise jurisdictional ques-tions about insurance crime investigation and strip state commissioners of their ability to halt suspect insurers through prompt license revocation.

The Federal Insurance Office also will determine whether certain state insurance laws should be preempted. Such signifi-

cant authority invested in a sub-division of a federal agency that never before held any jurisdiction over the insurance indus-try is ominous. So are linguistic red flags throughout the voluminous Dodd-Frank legislation.

Title V stipulates the legislation shall not be construed to establish or provide the Federal Insurance Office or Treasury with “general supervisory or regulatory authority” over the insurance industry, yet the law already grants specific and substantial authority, including these powers to preempt state law. In a truly open-ended passage, the Federal Insur-ance Office is empowered “to perform such other related duties and authorities as may be assigned” by the Secretary of the Treasury.

Finally, the director of the Federal Insurance Office shall submit to Con-gress a report on “how to modernize and improve the system of insurance regula-tion in the United States.” In the report, the director is to identify “gaps in state regulation” and consider “regulation of insurance companies and affiliates on a consolidated basis.”

A Matter of TrustOne needn’t be a states-rights alarmist

to view this as the writing on the wall for state insurance departments. The Federal Insurance Office drives a wedge between all parties in traditional insurance transac-tions — insurers, policyholders and right-ful regulators in each state capitol.

‘Fixing’ the UnbrokenFederal Insurance Office created to fill regulatory void that doesn’t exist.

March 2012 15www.pianet.com

Continued on page 22

16 March 2012www.pianet.com

A recent global insurance survey conducted by the consulting firm Ernst & Young has produced

findings similar to those discovered by The PIA Partnership.

Ersnt & Young found that consum-ers do not want to do all their insurance shopping online, they care about more than just price, and good claims service is something consumers expect, rather than an extra bonus that will help a company’s retention rate.

On the property/casualty side, the survey found that personal interaction is particularly important when extending coverage (71 percent), making a claim (82 percent), or dealing with other customer service issues (78 percent).

In life/annuities, 82 percent of con-sumers think it is important to have personal interaction when making an insurance purchase. In both segments, consumers often feel that insurance products are too complicated, and that

they need expert assistance when making important decisions.

Ernst & Young surveyed more than 24,000 consumers of insurance prod-ucts in 23 countries across seven global regions, making this body of research one of the largest surveys of consumer atti-tudes about the insurance industry ever conducted.

While conducted from a carrier per-spective, this survey affirms the strengths of the agency distribution system. Although it found that some consumers like to use online sources to inform them-selves prior to making a purchase, many more express a desire for more personal interaction.

Results Echo PIA StudyThe Ernst & Young study mirrors in

many respects the findings of the recent survey of customer preferences by The PIA Partnership. Research for Touch Points — The Voice of the Customer clearly

shows that professional insurance agents have what insurance customers are look-ing for: expert advice and counseling, per-sonalized attention and interaction, the ability to offer comprehensive protection to meet individual needs and excellent “relationship based” customer service.

In the area of value, PIA found that customers clearly want and express the need for value beyond price. The survey results show that this can be described as “someone they can trust who will work to understand and help them meet their needs for insurance coverage on an indi-vidual and personalized basis.”

In the area of type and frequency of contact from their agent, our key find-ings show that customers clearly express the need for “regular proactive contact to help them be assured that their insur-ance coverage is comprehensive and up to date.”

Insurance Consumers Don’t Want Online-OnlyErnst & Young Survey Mirrors One by The PIA Partnership

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A federal employees union wants to expel private sector crop insur-ance agents — and possibly insur-

ance companies — from a large swath of the federal crop insurance program, in an apparent attempt to protect union mem-bers from budget cuts.

The National Association of Farm Service Agency (FSA) County Office Employees (NASCOE) is actively lobby-ing Congress, urging that the private sec-tor insurance agents who sell and service crop insurance policies be replaced by fed-eral government employees who work for the FSA. A study paid for by the union also looks at federal government employ-ees performing functions currently han-dled by private insurance companies.

“What we have here is a union rep-resenting federal workers saying that the federal government is more effec-tive and efficient than the private sector. That’s absurd,” said PIA National Execu-tive Vice President & CEO Leonard C. Brevik. “These government employees have declared war on the private sector. They are proposing that private sector crop insurance agents who are key to the success of the crop insurance program be thrown under the bus and replaced with federal bureaucrats.”

The current public/private partner-ship in crop insurance began in the early 1980s with a dual system of delivery in which farmers were given the choice of buying policies sold by private agents who contracted with the government for claims service, or from private companies that both sell policies and service claims. Because the private sector outperformed the government, especially in terms of the quality of services, all program delivery was assigned to the private sector by the end of the 1980s.

Union Says Expel Private Sector

The FSA employee union asked its members in a bulletin to contact USDA and tell them that FSA “should be the sole designated entity to take the acreage reports for all USDA purposes.” Further,

“agents have a motive for selling policies that are based upon acreages” and that “it does not make sense to pay a crop insur-ance agent to take the report on insured crops and FSA take acreage reports on all other crops.”

In a clear indication that it is attempt-ing a power-grab, the union said, “the more involved FSA becomes in crop insur-ance functions, the greater the potential cost savings and efficiencies.”

Leave it to a federal employees union to equate ousting the private sector in favor of greater government involvement with savings and efficiencies!

“Moving certain parts of the crop insurance program back to the FSA would set the program back 30 years,

to a time when the program was ineffi-cient, underutilized and administrative costs were significantly higher,” said Mike Becker, assistant vice president of federal affairs for PIA National. “The public/pri-vate partnership that has developed over the years has been critical to the overall success of the crop insurance program.”

PIA Says Don’t Mess With Success

Becker noted that NASCOE has com-missioned a study that purports to show potential cost savings to the federal gov-ernment if portions of the crop insurance program were to be de-privatized as the

union is recommending. “Lawmakers must keep in mind that this study was paid for by a group that already deter-mined the conclusions it wanted to reach,” Becker said.

“In addition, in all of NASCOE’s argu-ments, not one word is said about provid-ing quality service to the farmer,” Becker said. “NASCOE presumes its members are at least on par with the private sector when it comes to performance. But they are no match for incentivized private sec-tor agents when it comes to serving farm-ers, ranchers and growers well.”

“Over the last ten years, the Federal Crop Insurance Program (FCIP) has gen-erated an unprecedented net underwrit-ing gain of $3.9 billion that goes directly

to the U.S. Treasury,” Brevik said. “The crop insurance program is a resounding success. The United States has the most productive agriculture sector in the world. Farmers, ranchers, growers, consum-ers, our rural economies and our entire national economy depend on the proven quality of our crop insurance program, which is effectively and efficiently deliv-ered today by the private sector.”

“When America’s farmers need crop insurance, they turn to their PIA agents,” Brevik added. “On crop insurance, PIA agents have a clear message: Don’t mess with success.”

PIA Members Decry Attack By Federal Employees UnionFederal Bureaucrats Declare War On Independent Insurance Agents

March 2012 17www.pianet.com

Moving certain parts of the crop insurance program

back to the FSA would set the program back 30

years, to a time when the program was inefficient,

underutilized and administrative costs were

significantly higher.

18 March 2012www.pianet.com

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By Scott Minor Co-Owner Trust GDC

When a tornado struck Joplin, Missouri, we knew right then and there we had no choice

but to publicly react. The unbelievable destruction left behind by the twister shook our state, and much of the nation, to the core. It reminded us both how precious life is as well as how strong the forces of Mother Nature really are.

At Trust GDC, we pride ourselves in being an active member of our local com-munity. We like to think that we’re more than just your average Missouri insur-ance agency — we’re true community influencers, who care about the people we serve and residents all across the state. That’s why we took a proactive approach to reaching out, responding and educat-ing the state of Missouri with strategic press releases.

Having a tactical press release strategy in your marketing arsenal is a smart move for any business. Your clients certainly do not have to fall victim to a natural disaster in order for this type of content to have a lasting effect. However, with the situa-tion in Joplin, we found that publishing informative press releases allowed us to not only promote our agency as a credible insurance resource, but most importantly the ability to provide residents with criti-cal disaster planning information, helpful emergency preparedness links and tips for how best to navigate the claims process.

The most important thing about a press release strategy is finding relevant, newsworthy content to write about. Clearly in our case, the Joplin storm was making major headlines across the nation — and providing the necessary assistance and information to Missouri residents was the least we could do. You will also notice that we didn’t use this form of content to solely promote our company — we used each press release as an outlet in which we could positively impact those affected by the storm. By providing crucial tornado facts and a comprehensive list of what individuals should do before, during and after a twister, we were able to meet the consumers’ needs with the key informa-

tion they were searching for.You too can benefit from the power of

the press release. The trick to a successful press release strategy — specifically within the insurance industry — is to make your content appealing to readers all across the web. Aside from content that directly

reinforces breaking news and current events, we’ve found that press releases containing “how-to” tips and thoughtful answers to common insurance questions are also great traffic generators.

Using Digital Marketing to React and Respond

March 2012 19www.pianet.com

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Continued on page 22

20 March 2012www.pianet.com

Brokers that accept contingent commissions are not in breach of their fiduciary duties to their

clients under Missouri law, the Missouri Supreme Court has ruled. The high court also held on March 6, 2012 in Emerson Electric Co. vs. Marsh & McLennan Cos. Inc. et al. that brokers have no duty to their clients to find insurance at the low-est possible cost available, and that they do not breach fiduciary duty by earning interest on premium payments sent to them before the payments are sent on to the insurer.

But the court remanded the case to St. Louis Circuit Court for further consider-ation, saying that the lower court erred in its October 2010 ruling when it said that Emerson could not recover on one or more of its claims as a matter of law. Despite the remand, legal experts say the ruling is significant.

Speaking to Business Insurance, Chris-topher J. St. Jeanos, a partner at Willkie Farr & Gallagher L.L.P. in New York, an attorney who represented Marsh said, “The court said, ‘Look, brokers do not have a fiduciary duty or duty of loyalty that prohibits them from receiving con-tingent commissions or that requires

them to disclose them.’”

Echoes of the Spitzer EraThis is the latest in a series of court deci-

sions dating back to 2007 in which courts have held that it is not illegal to be paid, or to accept, contingent commissions.

The controversy surrounding contin-gent compensation dated to 2004, when then-New York Attorney General Eliot Spitzer investigated bid-rigging and cli-ent-steering allegations against a handful of insurers and mega-brokers, then negoti-ated settlement agreements in which they agreed to forgo contingent commissions, without admitting any wrongdoing.

Independent insurance agents were never suspected of any wrongdoing, but they were lumped into the Spitzer settle-ments. Then, to add insult to our injury, some of those suspected of wrongdoing subsequently had the sanctions against them reduced and then eliminated —while the restrictions on Main Street agents were kept in place!

In short, Main Street agents were being punished for the suspected wrongdoing of others when they did nothing wrong. And mega-brokers were actually granted a competitive advantage over independent agents by getting their own sanctions lifted, while they were kept in place on independent agents, their competitors, who should never have been included in the first place.

PIA National Led the FightPIA National has been successfully

fighting for the right of our carriers to uti-lize contingent compensation and for PIA members to receive it since 2004.

PIA challenged the settlement agree-ments, filing an amicus brief in fed-eral district court. Ultimately, the court agreed and declared contingent commis-sions legal. Separately, PIA was the only insurance trade association that provided the NAIC with the correct way to draft a producer compensation disclosure model and, when they did not act on our advice, we opposed their disclosure in the states. As a result, no state ever adopted the flawed NAIC disclosure model.

“Efforts to ban contingent commissions, yearly bonuses, or any form of incentive compensation must be seen for what they are: anti-competitive attacks on how our American Free Enterprise System oper-ates,” said then-PIA National President Donna L. Pile in 2007.

“Our carriers’ producer compensation systems were and are legal, effective, and supportive of good competitive pricing dynamics,” Pile said. “Insurance carri-ers, just as any business, must have the freedom to structure their compensation systems as they see fit. In short, in a man-ner that best enables growth and profit-ability.”

The issue of contingent commissions that was raised during the Spitzer era has receded into history. Fortunately, the attempts by Spitzer and others to tarnish the reputations of those who did noth-ing wrong were ultimately not successful. However, some lessons from this episode can be drawn.

One lesson is that the government has no role in determining how producers are compensated in a free enterprise system. How insurance producers or anyone else is paid is a business decision. It is not a proper function of government.

Another important lesson is that if you are attacked, if government officials try to impugn your integrity when you are in fact above reproach, the last thing you should do is be silent. When this whole sorry Spitzer episode started, there was never any question that PIA would fight back. We were not about to allow agents to become collateral damage. PIA made clear from the outset that we would write, speak, act and litigate — in short, we would fight hard to defend the integrity of PIA members.

PIA had the fortitude of character to stand up when others were retreat-ing, making clear to the media, insur-ers, insurance regulators, state AGs and the courts that adverse comments and actions blindly taken against retail Main Street agencies that were factually and legally wrong or unfair would not be tol-erated.

Courts Continue to Rule Contingent Commissions Not Illegal

Efforts to ban contingent

commissions, yearly

bonuses, or any form of

incentive compensation

must be seen for what

they are: anti-competitive

attacks on how our

American Free Enterprise

System operates.

March 2012 21www.pianet.com

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members in Congress and legislatures across America. We provide compliance advice and materials to help members operate their businesses. And among the many other things we do to help PIA members, we make advertising and sales materials available to PIA mem-bers through the PIA Branding Program (www.piabrandingprogram.com).

In this issue of PIA Connection we are happy to tell you about a group of com-panies that have also pledged to help PIA members. These companies have stepped up to support PIA’s development of new advertising and sales materials that we will make available through the PIA Branding

Program. These companies are our Pin-nacle Partners.

PIA’s Pinnacle Partners will help us develop a new series of marketing tools for PIA members. These will be created as a direct result of member feedback. These new tools will enable PIA mem-bers to continue to market their agencies in traditional media while also providing marketing support in new mediums such as the Internet, social media and more. Our goal is to ensure that PIA members are prepared to compete for business in 2012 and beyond. More about these new marketing tools will be made available as they come online.

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affilia

tesNEW HAMPSHIRE

PIA of New Hampshire, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.org

NEW JERSEYPIA New Jersey, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.org

NEW YORKPIA New York, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.org

NORTH CAROLINAPIANC, PO Box B, Henderson, NC 27536PHONE: (877) 401-6822 • (877) 98PIANC • FAX: (877) 499-2849e-mail: jim.kennedy@piaofnc.com • Web Site: www.piaofnc.com

NORTH DAKOTAPIA of North Dakota1211 Memorial Hwy Holiday Park Office #6, Bismarck, ND 58504-5213PHONE: (701) 223-5025 • (800) 733-1050 ND&MN onlyFAX: (701) 223-9456 • e-mail: info@piand.com • Web Site: www.piand.com

OHIOPIA of Ohio, Inc., 600 Cross Pointe Road, Gahanna, OH 43230PHONE: (614) 552-8000 • (800) 555-1742 • FAX: (614) 552-0115e-mail: ohpia@ohiopia.com • Web Site: www.ohiopia.com

OKLAHOMAPIA of Oklahoma, P.O. Box 12921, Oklahoma City, OK 73157PHONE: (405) 942-1119 • FAX: (405) 943-4380e-mail: bill@piaok.com • Web Site: www.piaok.com

OREGON/IDAHOPIA of Oregon/Idaho, 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (503) 287-7570 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

PENNSYLVANIAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

PUERTO RICO & CARIBBEANPIA of Puerto Rico and the Caribbean IncPO Box 192389, San Juan, PR 00919-2389PHONE: (787) 792-7849 • FAX: (787) 792-4745e-mail: marcos@piaofpr.com • Web Site: www.piaofpr.com

RHODE ISLANDPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

SOUTH CAROLINAPIA of South Carolina, PO Box 21367, Columbia, SC 29221-1367PHONE: (803) 772-0557 • (888) 742-6372 • FAX: (803) 772-0846e-mail: PIASC@piasc.net • Web Site: www.piasc.net

SOUTH DAKOTAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

TENNESSEEPIA of Tennessee Inc, 504 Autumn Springs Court Suite A-2, Franklin, TN 37067PHONE: (615) 771-1177 • FAX: (615) 771-3456e-mail: piatn@piatn.com • Web Site: www.piatn.com

TEXASTexas Insurance Professionals, P. O. Box 90908, Austin, TX 78709-0908PHONE: (512) 301-0226 • FAX: (512) 301-0265e-mail: pia@piatx.org • Web Site: www.piatx.org

UTAHUtah Association of Independent Insurance Agents4885 S. 900 E., Suite 302, Salt Lake City, UT 84117PHONE: (801) 269-1200 • FAX: (801) 269-1265e-mail: cheryllyman@uaiia.org • Web Site: www.uaiia.org

VERMONTVermont Insurance Agents Association, P.O. Box 1387, Montpelier, VT 05601PHONE: (802) 229-5884 • FAX: (802) 223-0868e-mail: jnormandy@viaa.org • Web Site: www.viaa.org

VIRGINIA/DCPIA Assn of Virginia & DC, 8751 Park Central Dr., Ste 140, Richmond, VA 23227PHONE: (804) 264-2582 • FAX: (804) 266-1075e-mail: dennis@piavadc.com • Web Site: www.piavadc.com

WASHINGTON/ALASKAPIA of WA/AK, 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (360) 571-7100 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

WEST VIRGINIAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

WISCONSINPIA of Wisconsin, Inc., 6401 Odana Road, Madison, WI 53719-1126PHONE: (608) 274-8188 • (800) 261-7429 • FAX: (608) 274-8195e-mail: rvonhaden@piaw.org • Web Site: www.piaw.org

WYOMINGAssoc. of Wyoming Ins. Agents, PO Box 799, Sundance, WY 82729-0799PHONE: (307) 283-2052 • FAX: (775) 796-3122e-mail: awia@vcn.com • Web Site: www.awia.com

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tesALABAMA

PIA of Alabama, 3805 Crestwood Pkwy NW #140, Duluth, GA 30096PHONE: (770) 921-7585 • FAX: (770) 921-7590e-mail: jerry@piaga.com • Web Site: www.piaga.com

ARKANSASPIA of Arkansas Inc., 10025 W. Markham, Little Rock, AR 72205PHONE: (501) 225-1645 • FAX: (501) 225-2550e-mail: evp@piaar.com • Web Site: www.piaar.com

CA/NV/AZ/NMPIA Group, 3205 Northeast 78th St #104, Vancouver, WA 98665PHONE: (888) 246-4466 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

COLORADOPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

CONNECTICUTPIA of Connecticut, P.O. Box 997, Glenmont, NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.org

DELAWAREPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

FLORIDAPIA of Florida, Inc., 1390 Timberlane Road, Tallahassee, FL 32312-1766PHONE: (850) 893-8245 • (800) 277-1171 FL only • FAX: (850) 893-8316e-mail: piafl@piafl.org • Web Site: www.piafl.org

GEORGIAThe PIA of Georgia, Inc., 3805 Crestwood Pkwy NW #140, Duluth, GA 30096PHONE: (770) 921-7585 • FAX: (770) 921-7590e-mail: jerry@piaga.com • Web Site: www.piaga.com

HAWAIIPIA of Hawaii, 146 Hekili St # 201A, Kailua, HI 96734-2835PHONE: (808) 261-9460 • FAX: (808) 262-5355e-mail: piahi@hawaiiantel.net • Web Site: www.piahawaii.com

ILLINOISPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

INDIANAPIA of Indiana, 501 E. 91 Street Ste. 207 Indianapolis, IN 46240PHONE: (317) 899-9200 • FAX: (317) 493-0408e-mail: info@piaindiana.com • Web Site: www.indianapia.com

KANSASKansas Association of Professional Insurance Agents103 SE 10th Ave., Topeka, KS 66612PHONE: (785) 232-4143 • FAX: (785) 232-0272e-mail: pia@pia.kscoxmail.com • Web Site: www.kansaspia.org

KENTUCKYPIA of Kentucky, P.O. Box 4205, Frankfort, KY 40604-4205PHONE: (502) 875-3888 • FAX: (502) 227-0839e-mail: clemay@piaky.org • Web Site: www.piaky.org

LOUISIANAPIA of Louisiana Inc., 8064 Summa Avenue, Suite C, Baton Rouge, LA 70809PHONE: (225) 766-7770 • (800) 349-3434 LA only • FAX: (225) 766-1601e-mail: jody@piaoflouisiana.com • Web Site: www.piaoflouisiana.com

MAINEMaine Insurance Agents Association, 432 Western Avenue, Augusta, ME 04330PHONE: (207) 623-1875 • FAX: (207) 626-0275e-mail: lisa@maineagents.net • Web Site: www.maineagents.com

MARYLANDInsurance Agents & Brokers of Maryland P.O. Box 2023, Mechanicsburg, PA 17055-0763PHONE: (717) 795-9100 • FAX: (717) 795-8347e-mail: iab@iabgroup.com • Web Site: www.iabgroup.com

MASSACHUSETTSPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.com

MICHIGANMichigan PIA, P.O. Box 99579 Troy, Michigan, 48099PHONE: (616) 454-4461 • FAX: (616) 454-4491e-mail: inquiry@mipia.com • Web Site: www.mipia.com

MINNESOTAPIA of Minnesota, 3600 Holly Lane N. #90, Plymouth, MN 55447PHONE: (763) 694-7070 • FAX: (800) 546-3428e-mail: gsather@piamn.com • Web Site: www.piamn.com

MISSISSIPPIPIA Association of Mississippi, 4 River Bend Place, #115, Jackson, MS 39232PHONE: (601) 936-6474 • FAX: (601) 936-6477 • (800) 898-0136 MS onlye-mail: PIAofMS@aol.com • Web Site: www.piams.com

MISSOURIMissouri Association of Insurance AgentsP.O. Box 1785, Jefferson City, MO 65102-1785PHONE: 573-893-4301 • FAX: 573-893-3708e-mail: lcase@moagent.org • Web Site: www.missouriagent.org

MONTANAPIA of Montana, 3205 NE 78th St Ste 104, Vancouver, WA 98665-0697PHONE: (888) 246-4466 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

NEBRASKA/IOWAPIA of Nebraska/Iowa, 920 South 107th Avenue, Suite 305, Omaha, NE 68114PHONE: (402) 392-1611 • FAX: (402) 392-2228e-mail: cathy@pianeia.com • Web Site: www.pianeia.com

FIO’s Not the FixContinued from page 15

Your Agency’s Press Release StrategyContinued from page 19

Sufficient laws governing insurance are on the books at the state level. While this forces insurers to tailor offerings for each market, it discourages one-size-fits-all policies and encourages innovation. Legislatures are far more nimble than Congress at reforming insurance laws, creating opportunity for companies to develop new products and for other states to adopt or adapt regulations that might work for their citizens. Ultimately con-sumers everywhere would lose if the fed-eral government were left to investigate fraud reports or resolve claim disputes.

States have successfully regulated insurance since Oklahoma was Indian Territory. But preserving state regulation of the insurance industry isn’t a matter of territory or tradition. It is a matter of trust.

John Doak, a Republican, serves as the Okla-homa State Insurance Commissioner.

Keep in mind that the most impor-tant thing to accomplish with these press releases is to provide the reader with some sort of valuable take-away. Your sole mis-sion is not to only market your agency, but to provide clients and prospects with information they not only want to read, but also want to share. Establishing your credibility through strategic, educational press releases is a strong first step in devel-oping continuous, genuine traffic.

Scott Minor is the co-owner of Missouri’s Trust GDC. Scott has pioneered many inno-vative programs and is driven by an intense passion to improve the industry.

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PIA National has completely reor-ganized our longstanding discount program with UPS so that PIA

members can save more money going forward. The new discount program applies to both air and ground shipments

and provides bigger discount opportunities than ever before.Through PIA’s new UPS Savings Program, PIA members will

save up to 34% on next-day air shipping and up to 16% on ground shipping once they enroll at www.savewithups.com/pianational.

To take advantage of these incredible discounts, your agency must have a UPS account. If your agency doesn’t have a UPS account, opening one is easy. As a matter of fact, you can open an account while enrolling in PIA’s new UPS Savings Program simply by going to www.savewithups.com/pianational.

Please do not delay. Visit www.savewithups.com/pianational to see the discounts available to PIA members and enroll your agency in PIA’s new UPS Savings Program. If you’d prefer to enroll by phone, please call (800) 325-7000 and tell the UPS operator you are a member of the “National Association of Professional Insur-ance Agents” (UPS “promo code” COR190).

PIA Announces New Savings Program with UPS

Visit the PIA Main Street Store at www.PIANET.com or use the information below to act now.

Visit www.PIANET.com for additional Member Benefits including the PIA Branding Program, Reaching Gen Y, Guide to Successful Planning, Perpetuation Central, Agency Agreement Review Service, PIA logos and more.

Insurance Productsn Errors and Omissions InsuranceSolid E&O protection built around your unique needs. (800) 742-6900 Ext. 348n Penn National Insurance Agent’s Umbrella ProgramComprehensive and affordable excess insurance protection includes E&O and Business Liability coverage with available endorsements for EPL and Personal Coverage. Call your local PIA affiliate or (800) 742-6900 Ext. 348n Hartford Flood InsuranceEasy enrollment process, competitive commissions, advanced Internet services, plus a variety of programs and surplus lines. Call (860) 757-1984.n PIA Trust ProductsBasic, Voluntary and Dependent Term Life; Long Term Disability; Short Term Disability; Business Overhead Expense; ADD; Hospital Indemnity (800) 336-4759; www.piatrust.comn Agency Revenue ToolsEmployee worksite marketing using your appointed markets at regular commission rates. (703) 518-1353n Warranty SolutionsMarket a proven vehicle service contract program to auto dealerships. (800) 782-9753.

Financial Servicesn Bank of America Financial ProductsPersonal and business credit cards. www.pianet.com/bankofamerica

“PIA Plus” Products/Discountsn Agency Web SitesCutting-edge, user-friendly and feature rich agency web sites from PIA and Emerald.www.bestagencywebsites.comn PIA Logo Wear & GearShirts, jackets, mugs and more with the PIA Main Street Logo featuring PIA’s tagline, Local Agents Serving Main Street America.SM www.pianet.com/piaonlinestoren Alamo Car RentalGet unlimited mileage and up to 20% off already low retail rates. 1-800-GO-ALAMO (1-800-462-5266) (I.D. # 93140)n Central Licensing BureauSave time and money by using CLB for all your agency licensing needs. (501) 664-8044n Consumer BrochuresAnswer clients’ questions with profession-al brochures from PIA. (703) 518-1381.n Free SubscriptionPIA members, receive a free subscription to Rough Notes magazine at www.pianet.com/freesubscriptions

n Data Protective ServicesCustomer data on agency computers? Manage data security and understand your compliance risk. www.pianet.com/dataprotectiveservicesn Mines Press Calendar ProductsPersonalized calendars at member only prices. www.pianet.com/minespressn Omnia Employee ProfilingSkills and personality testing. Contact Carletta Neal at (800) 525-7117 Ext. 1226.n Online Data Backup & RecoveryBackup critical files to a secure, remote location through Courtesy Computers, the insurance agency specialists. www.pianet.com/courtesyn Rough Notes Producer OnlineHelps identify risk exposures and provides detailed coverage analysis. Avail. to PIA members for $400 annually (reg. $1,699). Call 800-428-4384. Use your PIA member ID# above name on mailing label.n Sircon’s Producer WorkbenchMeet your licensing and renewal needs quickly and easily on the web. PIA member-only 15% discount. Visit www.pianet.com/sirconn United Parcel Service (UPS)Reduced rates on many popular UPS shipping options. UPS account required. www.savewithups.com/pianational

Important Message to Participants of PIA National’s Former UPS Discount Program: You Must Reenroll to Continue Saving

This new UPS Savings Program completely replaces PIA’s

former discount program with UPS. Those discounts will

no longer be available and will be replaced by this new

discount program. You will not be automatically enrolled

in this new program. As a result, participants in PIA

National’s previous UPS discount program must enroll at

www.savewithups.com/pianational to participate in our

new UPS Savings Program.

PRSRT STANDARDU.S POSTAGE

PAIDPERMIT #593

MERRIFIELD, VA

400 N. Washington StreetAlexandria, VA 22314

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans

INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND

As a PIA Member* serving

Main Street America, you and

your employees have access

to a variety of high-quality,

competitively priced

insurance plans.

Plans available include:

Short & Long Term Disability Business Overhead Expense Accidental Death & Dismemberment

Basic Term Life** Voluntary Term Life Dependent Term Life Hospital Indemnity

PIA SERVICES GROUPINSURANCE FUND

For additional information, contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759.

Information also available on-line at www.piatrust.com.*PIA National membership, when required, must be current at all times.

**Only available if 100% employer paid and if the employer and 100% of the employees enroll. No medical underwriting necessary up to guaranteed issue limits.

Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable. All coverages underwritten by Unimerica Insurance Company, Association Administrative

Address, P.O. Box 17828, Portland, ME 04112-8828. Insurance Program Administered by Lockton Risk Services.

The Hartford Flood Insurance

Policies are written subject to the National Flood Insurance Program.Insurance is provided by the property and casualty insurance companies of The Hartford Financial Services Group, Inc., Hartford, CT. © 2012 The Hartford Financial Services Group, Inc., Hartford, CT 06155. All Rights Reserved.

PARTNER WITH THE HARTFORD,A Leader inFlood Insurance.The Hartford is one of the largest providers of fl ood

insurance, offering a full-service solution, competitive

commissions and a dedicated local Sales Director.

Contact Karen Piacenta, Flood Program Director at 860-757-1984.

With The Hartford behind you, achieve what’s ahead of you.®

CLIENT / The Hartford (HFG CO) AD# / P20985-_2 TITLE / “Flood” MEDIA / Magazine, 4C SIZE / 3.75" x 4.5"

PROD MGR / Cheryl Sparks TRAFFIC / Stephanie Browne DIG ART / Evan Willnow ART DIR / Evan Willnow WRITER / ACCT SVC / Marc Enger PREPARED / 03/06/2012 PHN / 866-553-5663

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