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PIANC OUTLOOK APRIL 2013
In this issue…
What Does Your Website Say About Your Agency?
NCDOI Agreement Reached on Homeowner Insurance Request
NFIP Claims Es mates ‐ Hurricane Sandy
Cookin’ with Jim
Did You Know?
Out N About in NC
Our State Tour Day
Mark your calendars for our 2013 PIANC Annual Conference
August 14 & 15 High Point Hotel
and Conference Center
Agent registra on will begin April 22.
Vendors can register now!
Earn up to 12 CE credit hours A end our Trade Show
Why not complete a professional designation that will actually improve your agency before 2013 ends?
The Certified Professional Insurance Associate designation (CPIA) is now being offered by PIANC.
No Exam and total of 18 General CE credits.
~ ~ ~ North Carolina Exclusive DISCOUNTS! ~ ~ ~ (1) PIANC Members receive classes at $150 each (2) Anyone taking classes at the PIANC Conference, each class is $150 (3) Anyone who registers for all 3 classes and pays in advance of the first class, each class is $150. Non-members normally pay $185 per class. Check our website for more information, dates and locations of classes and registration. http://www.piaofnc.com/conference.asp
April 2013 877-401-6822 www.piaofnc.com Page 2
What does your website say about your insurance agency?
by Cur s M. Pearsall, President, Pearsall Associates, Inc
Since surveys have shown that an increasing number of consumers are doing their initial research on the web-site, there is no doubt that many agencies have looked to strengthen their agencies website “marketing” mes-sage. While this seems to certainly make sense, agencies should look to exercise some caution with the words they use. One of the specific issues or concerns with the marketing message is that it has the ability to elevate the standard of care that your agency could be held to in the event of E&O litigation. In most states, agents are considered “order takers” and while that may not sound very appealing, this stand-ard can work to the agency’s advantage if a problem develops. Depending on the marketing message and ac-tually the words specifically used, the standard can be raised to that of an advisor. This is often referred to as a “special relationship”. Let’s look at some recent website messages and some of my concerns with that message: “Tailor-made risk management solutions based on expert advice”. Sounds impressive but agencies should avoid the use of the word “expert” as this can be a key word in increasing the standard. If a customer of this agency suffered a claim that was not insured, the phrase “tailor-made risk management solutions” could hurt the agency’s defense. “A range of experience in specific industries to offer you exactly the coverage you need”. Personally, this sounds like a tough standard to meet. Based on some of the initial reports from Super Storm Sandy, this type of marketing message has the potential to change the direction that an E&O claim goes. Once again, if a customer suffered a loss and there was no coverage in place all because the agency never offered that cover-age, this marketing message could create some issues and problems. This marketing message may very well be the goal of the agency; just not sure if it should be specifically stated on a website. “Review insurer insolvency”. Traditionally the courts have not held the agency responsible for knowing the ongoing financial condition of the carriers they use. While agencies should know the financial rating of the carri-ers based on AM Best, Demotech, S&P, etc, (essentially at the onset of coverage) unless they are on the board of that carrier, they will probably not know much more of the details and any ongoing developments. By stating that your agency will review insurer insolvency, that agency has now essentially placed themselves in the position of knowing the finite details of the financials of each of the carriers at all times. This statement could be a tough position to defend if one of the carriers becomes insolvent and customers are not compen-sated for their losses. “At XYZ agency, we will make sure that you are properly covered”. Would you want to have this message on your website when a customer suffers a loss because they did not have the proper coverage or the proper limits? Bottom line, be careful the words you use. I understand that you want to write business and you are looking to impress your prospects and customers but the words and phrases that you use need to be carefully consid-ered. Check your website today to make sure that the message is one that you feel confident in should a problem develop down the road.
NCDOI Agreement Reached on Homeowner Insurance Request
Negotiated rate increase less than half of insurance companies' request RALEIGH -- Insurance Commissioner Wayne Goodwin today signed a settlement agreement with homeowners insurance companies allowing an overall statewide average rate increase of 7 percent, varying by territory and form, beginning July 1. The insurance companies, represented by the North Carolina Rate Bureau, had request-ed an overall statewide average rate increase of 17.7 percent on Oct. 1, 2012. The difference between the re-quested and settled rates amounts to $237 million in savings to policyholders. As Department of Insurance experts spent months studying the insurance companies’ request, it became appar-ent that some increase was justified, largely due to the steadily rising cost of reinsurance related to hurricane risks and ongoing concerns regarding availability. In order to minimize the increase, the Department of Insurance elected to settle on rates, eliminating the need for the hearing scheduled for June 3. "Homeowners insurance is a very complex issue. We face a great challenge in making sure that it is not only af-fordable, but available, to consumers across the state,” said Goodwin. “I feel this settlement helps strike that bal-ance, and I am pleased that the increase will be significantly smaller than what insurers originally requested." The last homeowners insurance rate filing occurred in 2008 when the insurance companies requested a 19.5 per-cent statewide average increase. A settlement agreement allowed for a 4.05 percent statewide average increase to go into effect in May 2009.
Homeowners insurance settlement agreement
Homeowners rate revisions by territory North Carolina territory map
Visit
Amtrust
April 2013 877-401-6822 www.piaofnc.com Page 3
NFIP Claims Estimates - Hurricane Sandy By Pat Borowski, CPIW, Senior Vice President mailto:[email protected]
1. Please see the latest FEMA/NFIP-WYO updates on claims-closure progress for Sandy. As you look at the
trend line, you see progress has been made and they have paid out to day just under $6B. The remaining open claims at this point are larger, more complicated &/or being disputed. A number of issues arose which causes some claims to still be open &/or policyholders not having received paid claims monies. 1. If the policyholder is appealing the claims settlement decision &/or amount, they may very well have some form of representation – either an attorney or PA. In these cases most policyholders have been ad-vised by their representatives NOT to cash any of the NFIP checks received.
2. In most cases, the property has a mortgagee, in which cash the claims checks (even advanced payments) must be issued in the name of the lender – and policyholder. However, there have been some lenders that are holding all these monies to assure that the property is rebuilt – and they are controlling the payments to contractors directly on a pay as work is completed basis. NFIP nor state DOIs have authority to direct these lenders to act differently.
3. In some cases, consumers sought assistance with their claims through state DOIs (this happened more in NJ) – and these weren’t properly or on a timely basis directed to the NFIP FICO location or number to move their issues along.
Sandy is really the first NFIP event where NFIP actually used the advanced/partial claims payment process which is what we’ve been requesting for MANY years – and we are encouraging NFIP to retain this as an SOP claims response. The problem was that NFIP had to issue a significant # of guidance bulletins on these matters – and they came too late in the process. Thus the slow start up in getting claims monies out the door. The other big challenge – which is also one facing the US insurance industry as well, especially in property – is the lack of experienced & qualified NFIP certified (which means they also have property claims experience) ad-justers. This is for several reasons, but it is one about which both WYOs and producers are concerned, and we need to identify some solutions. One area is that currently NFIP pays adjusters on a flat fee basis from which adjusters are responsible for all their own expenses (R&B, food, transportation), and the largest number of these tested adjusters are located in the SE/SC. The fees/reimbursements do not allow for significant expense differences between & among regions &/or because of the stresses of the event. So, the large group of south/central adjusters were not crazy about going to NJ/NY – where it is more expensive before & even greater after Sandy. So that is an are we’ll try to get addressed – while we should also all reach out to our communities and encourage young people to get involved in insurance – and in the insurance claims side as well.
Spring me means budding flowers, warming breezes,
new beginnings, and fresh growth!
Get a fresh start this Spring by partnering with us.
Join PIANC today
PIANC ‐ Here to help you grow your business!
April 2013 877-401-6822 www.piaofnc.com Page 4
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8-Q-456 Ed. 01-2012 Pagef 1
E&O Easy Estimate Questionnaire Named Insured: Physical Address: Mailing Address (if different): City/State/Zip: Federal ID# or Social Security #: Website: www. Contact Name: Phone: E-mail:
Independent Agent / Agency? Yes No Date established - current ownership: Associations you are members of:
% of Total Agency Commission placed by line: PL’s % + CL’s % + L&H % = 100% % of Non-Standard or Assigned Risk placed by line: PL’s % CL’s %Specialty Lines?* Yes No If yes, what % of your income is placed as Specialty Lines? %*Certain Specialty Lines of business may alter the premium and is subject to underwriting
% of P&C Business placed THRU other Agents or Brokers: %
STAFF COUNT*: Full Time (over 20 hours) # Part Time (20 hours or less) # *IMPORTANT - Include ALL the following: Active Agency Principals / Licensed & Unlicensed Personnel / 1099's
P&C PREMIUM VOLUME: $ (excluding Contingency & Bonus Income)
Commission Income (New & Renewal): P&C $ L&H $ Consulting Fees $
Exposure Analysis Checklist used on ALL accounts (PL and CL – active at least 1 year)? Yes No Insurance Designations* of staff equals or exceed 60% (CIC, CISR, CPCU, LUTCF, etc)? Yes No *Does not include having a license. E&O Loss Prevention Seminar last attended (month)/20 (year) # staff attended
E&O claims / incidents in the last 3 years? # (include closed with expense only payment) CURRENT E&O Carrier: Expiration Date: Retro-Active Date :
Limits: $ Claim / $ Aggregate Premium $Deductible: $ Claim / $ Aggregate / Type: Loss Only Loss & Expense
Date: Authorized Representative
This Questionnaire is for an estimated PREMIUM INDICATION ONLY and isNOT an Offer of Coverage NOR is it BINDABLE. If premiumindication is acceptable, please complete a UTICA APPLICATIONto submit to Underwriting for further consideration.
Utica Mutual Insurance Company and its affiliated companies New Hartford, NY 13413 • www.uticanational.com
Online Form available at www.piaofnc.com/content/e&o.asp!
Professional Insurance Agents of North Carolina PO Box B Henderson, NC 27536 877 401-6822 fax 877 449-2849 [email protected]
NL 04/2013
Cookin' with Jim Noodle Beef Casserole
8 oz. egg noodles (medium/large) 1 tablespoon Lea & Perrin Worcestershire sauce ½ cup chopped onions 1 teaspoon kosher or sea salt ½ pound lean ground beef ¼ teaspoon black pepper or fresh ground black pepper 3 tablespoons olive oil 1 cup cooked lima or butter beans 1 cup cooked diced tomatoes ½ can cream of mushroom soup ½ cup NC white wine Cook noodles-drain. Brown onions and beef in olive oil, mix well. Add tomatoes, Lea & Perrin sauce, salt & pepper, wine. Mix separately noodles, vegetables, soup. Place alternate layers of noodle mixture and beef mixture in greased casserole. Bake in 350 degree F. oven for 45 minutes. Serve and enjoy!
Visit
Discovery
April 2013 877-401-6822 www.piaofnc.com Page 6
Did You Know?
Did you know that PIANC does not require that your agency have a PIANC membership to get E&O from us and our E&O Companies? How many thousands of $$ is your agency spending on membership to get E&O? Remember, PIANC has Utica and Liberty as two of our E&O Companies.
Did you know that PIANC offers up to 12 hours FREE CE classes for ANY agent, P/C L/H, member or non-member, at PIANC Fall Conference, August 14-15, 2013, High Point Plaza Hotel & Conference Center? For more information, please go to: www.piaofnc.com. What has your Agent Association offered you and done for you, FREE!
PIANC is looking for a few good agents to become members of PIANC and take advantage of the benefits that we offer, like MarketSource without having to pay for it like others do, companies offering Financial Products for your agency clients. They do the work and you get the commission. National PIA benefits, like PIA branding program, UPS discount, internet marketing by Agoragate, and a free subscription to Rough Notes magazine. Another PIA National benefit is the PIA Federal Legislative Summit (FLS) where fellow members of PIA get together in our Nation’s Capital to meet and greet our local elected representa-tives. It is a wonderful way to discuss insurance issues that are important to independent insurance agents.
Did you know that PIANC was first chartered in North Carolina in 1935?
Did you know that PIANC has its own Political Action Committee (PAC) called CAPIA PAC? Please donate today: www.piaofnc.com.
Remember and did you know that PIANC is an “Agents Association Run By Agents For Agents”? We have the designations to prove it!
Visit
Tapco
April 2013 877-401-6822 www.piaofnc.com Page 7
Out N About in NC April 12‐14 Cape Fear Garden Club will hold their 60th annual Azalea Garden Tour. For more info,
www.azaleagardentour.org.
April 27, join Foothills Conservancy in Morganton for region’s wines, cra vendors, live music, food, for more info, 828‐437‐9930, www.foothillsconsevancy.org.
April 27, Cary Spring Daze Art Fes val for arts, cra s, foods, entertainment, for more info 919‐469‐4061, www.townofcary.org.
April 28 Cedar Grove Quilt Show, with original and historic pa erns of handmade quilts, Eno Presbyterian Church Fellowship Hall, for more info 919‐732‐8405, www.cedargroveumc.net.
April 11 Hamlet Masters of Motown, Cole Auditorium at Richmond Community College, for more info 919‐410‐1691, www.richmondcc.edu.
April 24‐27 Billy Taylor Jazz Fes val, Greenville, NC ECU, for more info 252‐328‐6851, www.ecu.edu/music.
April 20 Cape Fear Community College Boat Show, Wilmington, for more info, 910‐326‐6771, www.cfcc.edu.
Visit
PIA Trust
April 2013 877-401-6822 www.piaofnc.com Page 8
Our State Day Trip
Our State magazine and AAA invite you to experience the history, lore, and culture of the Core Sound on this exclusive day trip to His-toric Beaufort and Harkers Island. This adventure is limited to 40 par-ticipants and includes guided tours, a seafood cooking demonstra-tion, and exclusive access. Our State day trips are designed to give you exclusive behind-the-scenes access at unique destinations around North Carolina. SPACE IS LIMITED; MAKE YOUR RESERVATION TODAY! Date: Saturday, April 20, 2013 Where: Beaufort, beginning at the North Carolina Maritime Museum Time: 8:45 a.m. - 6:00 p.m. Click here for details and reservations! The day's itinerary includes: An exclusive presentation about the excavation of Blackbeard's Queen Anne's Revenge at the North Carolina Maritime Museum.
Guided tour of Historic Beaufort aboard the legendary dou-bledecker bus.
Tour and demonstrations at the Core Sound Waterfowl and Heritage Museum.
An up-close visit with the Shackleford ponies at the Founda-tion for Shackleford Horses.
A delicious lunch hosted by The Boathouse at Front Street Village.
You don't want to miss this day trip, so make your reservation today!
www.bankersinsurance.com
www.marketsource.com
www.bankersinsurance.com
April 2013 877-401-6822 www.piaofnc.com Page 9
PIANC Officers Jay Whittington - President Central Carolina PO Box 4078 Salisbury, NC 28144 Telephone: (704) 636.5311 [email protected] Allen Parrott - President-Elect 2013 Jake A Parrott Ins Agency 2508 North Heritage Street Kinston, NC 28502 Telephone: (252) 523.1041 [email protected] John Cook CIC - National Director Pinnell Insurance Agency, Inc PO Box 18 312 S Chestnut St. Henderson, NC 27536-4128 Telephone: (252) 438.7129 [email protected] Murray M. White III CIC - Director Murray M. White, Inc. PO Box 2196 1911 N Main St High Point, NC 27261-2196 Telephone: (336) 889.4747 [email protected] Todd McLeod - Director McLeod Insurance Agency, LLC 1203 S Fayetteville St. Asheboro, NC 27203 Telephone: (336) 626.6670 [email protected] John Riley, ARM, CIC, CPCU-PIANC - Director Emeritus 10 Dogwood Rd Salisbury, NC 28144 [email protected] Mrs. Ann Cranford CPIA, CPIW, DAE, HCSS- Director The Cranford Agency, Inc. PO Box 99 906 S Fayetteville St. Asheboro, NC 27204 Telephone: (336) 629.9100 [email protected] Ron Worthington - Director Dan Garrison Ins Agency 315 South Talbert Blvd Lexington, NC 27292 Telephone: (336) 249.6867 [email protected]
Jimmy Barnette - Past President Barnette & Coats 708 Spartanburg Hwy Hendersonville, NC 28792 Telephone: (828) 692.8277 [email protected] Dean Wooten - Director Wooten Ins Agency PO Box 827 Statesville, NC Statesville Telephone: (704) 838.0837 [email protected] PIANC Staff Penny Rose, CPIA, CPSR - Director of Sales PO Box B Henderson, NC 27536 Telephone: (877) 401.6822 Fax: (877) 499.2849 [email protected] James M. Kennedy III, CIC, CPIA, CPSR - Executive Vice President PO Box 1387 Davidson, NC 28036 Telephone: (877) 987.4262 Fax: (704) 534.2338 [email protected] Kenneth R. (Ken) Kennedy, ACSR, CA, CBIA, CISR, CPIA, CRIS - Director of Education PO Box 1035 Concord, NC 28026 Telephone: 877.6539 [email protected] Amy Bryant - Director of Membership Services PO Box B Henderson, NC 27536 Telephone: (877) 401.6822 Fax: (877) 499.2849 [email protected] Kim Bishop - IT Support, Membership and Conference Assistant PO Box B Henderson, NC 27536 Telephone: (919) 247.4045 [email protected]
Your PIANC Working hard for
you!
April 2013 877-401-6822 www.piaofnc.com Page 10
