A MONTHLY PUBLICATION OF THE INDEPENDENT INSURANCE AGENTS & BROKERS OF LOUISIANA
LOUISIANAAGENT SEPTEMBER 2021
ER 47 Extension
Ida Loss Estimates
Marketplace Report
By Jeff Albright IIABL CEO
By Ben Albright IIABL VP of Strategic Initiatives
By Ben Albright IIABL VP of Strategic Initiatives
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CONTENTS TABLE OF CONTENTS & FEATURED STORIES
04 IIABL STAFF At your service!
14 IIABL FALL CONFERENCE ROAD SHOW
Coming to Shreveport & Baton Rouge
17 BUSINESS INCOME
(In)Complete Suspensions of Operations
20 CREATING CONSISTENT PROPOSALS
E&O Q&A
23 YOUR ADVANTAGE PROFILE
06 ER 47 EXTENSION
Are you getting the most out of TrustedChoice.com?
26 ARE YOU LIMITING COVERAGE? If you are including a 'DBA' you might.
30 MORE GUIDANCE FROM
FEMA ON RISK RATING 2.0 Implementation October 1
32 YOUR REMOTE HIRING PLAN Work At Home Vintage Experts
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HURRICANE IDA LOSS ESTIMATES
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MARKETPLACE REPORT EXECUTIVE SUMMARY
38 THE ART OF THE POSSIBLE Top 3 Ways to Use Data to Sell More
42 LOCAL IIABL CHAPTER HIGHLIGHTS
44 IIABL EDUCATION UPDATE 18153 E. Petroleum Drive Baton Rouge, LA 70809 Ph: (225) 819-8007 Fax: (225) 819-8027 www.iiabl.com
47 IIABL INDUSTRY PARTNERS 48 ADVERTISER INDEX 50 IIABL BOARD OF DIRECTORS & OFFICERS
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IIABL STAFF JEFF ALBRIGHT Chief Executive Officer jalbright@iiabl.com (225) 236-1366
BENJAMIN ALBRIGHT Vice-President of Strategic Initiatives balbright@iiabl.com (225) 236-1357
KATHLEEN O'REGAN Director of Communications & Events koregan@iiabl.com (225) 236-1360
KAREN KUYLEN Director of Accounting & Finance kkuylen@iiabl.com (225) 236-1353
RHONDA MARTINEZ Director of Insurance Programs rmartinez@iiabl.com (225) 236-1352
JAMIE NEWCHURCH Director of Insurance Programs jnewchurch@iiabl.com (225) 236-1350
LISA YOUNG-CROOKS Director of Member Relations lyoung@iiabl.com (225) 236-1351
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EMERGENCY RULE 47 EXTENSION BY: JEFF ALBRIGHT, IIABL CEO
LDI Emergency Rule 47, which suspends certain actions by insurance companies in response to Hurricane Ida has been extended until October 24, 2021. The Rule will continue to apply to the 25 parishes listed in the Rule through this extension. The Department of Insurance exercised the emergency provisions of the Administrative Procedure Act, R.S. 49:953.1, as further specified by R.S. 22:11, and pursuant to the authority granted by R.S. 22:1 et seq., adopts, maintains, and continues in effect Emergency Rule 47 until October 24, 2021, unless terminated sooner, which is issued to address the statewide public health emergency declared to exist in the state of Louisiana. Emergency Rule 47 became effective August 26, 2021, and shall continue in effect until October 24, 2021.
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ER47EXTENSION Continued from page 5 The Commissioner could not issue the extension of Rule 47 until Governor Edwards extended the State of Emergency. Proclamation No. JBE 2021-165 issued on August 26, 2021, by Governor John Bel Edwards declared a State of Emergency extending from August 26, 2021, through September 27, 2021, unless terminated sooner, and Proclamation No. JBE 2021-178 effective on September 25, 2021, extended the State of Emergency through October 24, 2021, unless terminated sooner. By statute, the commissioner only has the authority to issue an Emergency Rule for a maximum of 60-days, through October 24, 2021. Any extension beyond 60 days must be approved by either the House or Senate insurance committee. This is a new requirement passed by the Louisiana Legislature this year. We will have to wait to see whether the insurance committees extend the Rule beyond 60-days. The revised and extended Emergency Rule 47 can be found HERE.
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HURRICANE IDA LOSS ESTIMATES By: Ben Albright IIABL VP of Strategic Initiatives
Private insurers likely incurred $20 billion to $30 billion in Hurricane Ida-related losses, including flood damage in the Northeast, according to AIR Worldwide (AIR). The new estimate is an increase from AIR’s earlier estimate of onshore insured losses between $17 billion to $25 billion after Ida swept ashore at Port Fourchon, Louisiana, on Aug. 31 with 150 mph winds. AIR’s estimate includes onshore residential, commercial, industrial property and automobile losses, considers take-up rates for wind and flood across the entirety of Ida’s track. It further
reflects material and other repair costs that climbed steeply during the COVID-19 pandemic. It excludes National Flood Insurance Program and offshore losses. AIR is the second modeler to set an upper limit on Ida exceeding 1992 Hurricane Andrew’s $29.7 million in industry losses, adjusted to 2020 dollars. Andrew is currently the No. 6 most-costly U.S. hurricane, according to the Insurance Information Institute. CoreLogic also increased its initial Ida loss estimate, which initially ranged as high as $21 billion, to a potential $30 billion on residential and
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LOSSESTIMATES
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commercial flood losses. That could potentially make Ida the No. 6 most-costly U.S. hurricane.
along with post-event loss amplification (PLA) and non-modeled sources of loss.
Risk Management Solutions Inc. (RMS) said Thursday total onshore and offshore U.S. insured losses from Hurricane Ida are estimated between $31 billion and $44 billion. RMS estimates $6 billion to $9 billion in insured losses from precipitation-induced flooding in the Atlantic states from Ida in addition to earlier loss estimates of $25 billion to $35 billion for the Gulf of Mexico region.
Most onshore insured losses from Ida will be driven by wind, followed by inland flooding, and then storm surge. Insured wind losses will be driven by residential lines, and insured water losses will be dominated by commercial and industrial lines.
Total insured losses from Ida reflect property damage and business interruption to residential, commercial, automobile, industrial, infrastructure, marine cargo and specie, watercraft, and other specialty lines of business,
RMS said a “sizable” portion of the overall insured losses from Ida will be associated with factors that amplify the loss post-event, including rising construction costs and labor shortages, and prolonged power outages. These factors will only lengthen recovery and repair times, all of which may lead to increased overall claim costs in this event.
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2020 IIABL MARKETPLACE REPORT IIABL recently put out its 2020 edition of the annual marketplace report. The report analyzes data from AM Best, NAIC, and other industry sources to provide members with an overview of the state of the market, and it can be a valuable tool for educating insureds about the state of the marketplace when navigating the hard market. Below are some key points from the report which can be found on the IIABL website: Total written premium continues to grow in Louisiana, keeping pace with the national growth rate, and independent agents continue to maintain around 55% market share. Louisiana pays around 25% more per capita on insurance than the national average Below is perhaps the most immediately striking graph of loss ratios. The massive property losses from Hurricanes Laura, Delta, and Zeta jump off the page. Note that this is the pure loss ratios, not the combined ratio. 110%
Aircraft (all perils)
67% 82%
All Commercial Auto
87% 60%
All Private Passenger Auto
69% 45%
Boiler & Machinery
67% 55%
Burglary & Theft
29% 236%
Commercial Multi-Peril
87% 11%
Excess Workers' Comp
55% 250%
Farmowners Multi-Peril
87% 7%
Fidelity
56% 260%
Fire & Allied Lines
121% 250%
Homeowners Multi-Peril
82% 80%
Inland Marine
57% 6%
Medical Malpractice
13% 39%
Mortgage Guaranty
21% 83%
Ocean Marine
1-Yr Loss Ratio (all distribution)
67% 51% 47%
Other Liability (Claims-made)
5-Yr Loss Ratio (all distribution)
60%
Other Liability (Occurrence)
60% 6%
Products Liability
35% 16%
Surety
23% 58%
Workers' Compensation
56% 121%
TTL Grps I+II (All Typical Lines)
75%
0%
100%
200%
300%
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500% 407%
400% 300% 200% 100%
62%
24%
44%
19%
20 20
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0%
Louisiana - Federal Flood Loss Ratio 1,000% 805%
750% 500% 250% 11%
0%
32%
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20 19
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35%
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I highly encourage you to review the report in its entirety here. There is a lot of good data to help you better understand the landscape of the marketplace, and sections of the report are an excellent way to discuss the industry with your clients. Context around what is happening across the industry can be an invaluable tool in understanding why the market is hardening, as we are seeing every day.
Louisiana - Allied Lines Loss Ratio
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Another interesting note on the above loss ratio graph is Private Passenger Auto. 60% is a fairly healthy loss ratio, on a line that has run high on losses for many years in Louisiana. The premiums on Private passenger auto also decreased for the first time in some years, though whether these changes are legitimate trends or a side effect of the COVID-19 pandemic remains to be seen. Commercial auto, on the other hand, continued to “run a fever” with an 82% loss ratio The homeowners market has a 5 year average combined ratio of 115% while fire & allied lines is around 155%. Adding in the damage from Hurricane Ida this year (not included in this report which is based on 2020 data), you can see the loss ratios driving consistent property increases across the state. A final interesting visualization on the graphs is how the damage from hurricanes Laura, Delta, and Zeta was predominately from the wind, rather than floodwaters. This is one of the reasons that the claims experience was so different than in Katrina/Rita. Those storms dumped huge amounts of rain, plus the levee breaches in New Orleans and other areas which led to significant flood damages, involving NFIP. In the case of last years storms, the below graphs show that claims were largely limited to Homeowners/property carriers.
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MARKETPLACEREPORT
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50%
October 28, 2021 - Shreveport
TO
November 9, 2021 - Baton Rouge
Fall Conference Road Trip
Shreveport
Baton Rouge
IIABL IS TAKING A ROAD TRIP THIS FALL TO SEE YOU! Register for 1 of 2 opportunities for 6 hours of continuing education & networking in a town near you!
Join IIABL this fall, in person, at one of two locations for our Fall Conference Road Trip Series. We will have 6 hours of approved, quality continuing education at each location and much anticipated networking so we can catch up with old friends and make new ones. We have had a trying 18 months and we feel it is more important than ever to come together in-person to socialize with quality education and networking. TOPICS & SPEAKERS: Flood Program Overview Selective Insurance, IIABL's endorsed flood insurance company, will provide a 3 hour Flood Program presentation that will meet your LDI requirement. Find out the latest with the NFIP and Risk Rating 2.0 during this informative presentation.
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FALLCONFERENCES This presentation will cover: 1. A brief introduction of the Flood Insurance Program 2. Flood maps & zone determinations 3. Policies & products 4. General & miscellaneous rules 5. Elements of rating 6. Claims handling process 7. Summary of coverage 8. Agent resources Using Technology to Provide the Best Customer Experience Running and agency is hard. Being an agent is hard. Join technology guru, Matt Banaszynski, and learn how to make your job easier and your customers happier suing the latest insurance agency technology. This presentation will cover: 1. The customers Path to Purchase: customer expectations in the age of technology 2. Understanding the impact of technology in the insurance industry 3. Agency Operational Evaluation 4. Discussing & mapping your agency's workflows and customer experience/journey 5. Identifying and adapting your customer value proposition 6. How to enhance your workflows to provide the best possible customer experience.
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Continued from page 16 NETWORKING: Each location with include serval opportunities for networking with other agents and company members. We will have an exhibit hall at each location with company representatives showcasing their products and services. The luncheon will be held in the exhibit hall so you can enjoy a good meal and conversation before the afternoon presentations. Following the last presentation, there will be a cocktail reception at the hotel for casual conversation and networking before heading home. ROAD SHOW UPDATE: We would be remiss not to mention that we were planning to host one of the events in New Orleans. Due to the devastation in Southeast Louisiana caused by Hurricane Idea, IIABL made the difficult decision to cancel the New Orleans Fall Conference and postpone Baton Rouge until November 9. Our thoughts and prayers are with all of our member agencies, employees, and families in the affected areas. IIABL is here to help your agency after Hurricane Ida. Please let us know how we can help!
AUGUST 2, 2021
BUSINESS INCOME (IN)COMPLETE SUSPENSIONS OF OPERATIONS By Bill Wilson Founder at InsuranceCommentary.com
While reading perhaps hundreds of articles and court cases surrounding the COVID-19 pandemic and the issue of business income insurance coverage, I often read that courts have generally held that a “suspension” of operations requires a complete suspension in order to trigger coverage. Most recently, in attorney Randy Maniloff’s email newsletter, he cites Hastings Mutual Ins. Co. v. Mengel Dairy Farms, No. 204090 (6th Cir. July 16, 2021) where the court held that there was no coverage because of a lack of a complete suspension of business. I address this issue in my book “20/20 Vision: Why Insurance Doesn’t Cover the COVID-19 Pandemic”: Business income coverage requires a complete suspension of operations
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BUSINESSINCOME Similar to the last topic, I’ve read articles that claim that business income coverage only applies if a loss results in “…a complete suspension of [a business’s] operations. Mere partial closures or reduced hours have not been found by the courts to constitute a suspension of operations.” That is not an accurate statement, at least with regard to current ISO forms, and has never been the intent of such forms, though there apparently have been court cases finding on that basis. In 2000, ISO added a definition of “suspension” of operations to its business income forms that said that “suspension” means: “The slowdown or cessation of your business activities; or… That a part or all of the described premises is rendered untenantable, if coverage for Business Income including ‘Rental Value’ or ‘Rental Value’ applies.” [emphasis added] Until that filing, the undefined term “suspension” was often interpreted to mean that only a complete cessation of operations was covered by these forms. In the filing, ISO referred to this as a “Clarification or Procedural Change,” effectively confirming that the intent of the word “suspension” had always been to apply to curtailments of operations and not necessarily complete shutdowns. A similar myth exists that an insured is not entitled to recover unless the business is actually resumed. For
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Continued from page 17 example, a business owner suffers a major loss and decides to retire and not continue operations. The insured is still entitled to coverage because the ISO CP 00 30, for example, says that the “period of restoration”… “Ends on the earlier of…The date when the property at the described premises should be repaired, rebuilt or replaced with reasonable speed and similar quality; or….The date when business is resumed at a new permanent location.” [emphasis added]
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BUSINESSINCOME Continued from page 18 The controlling language is “should be,” not “is” or “must be.” I’m assuming that the form in question is not a pure ISO form or it predates the change in ISO’s coverage 21 years ago. In my “20/20 Vision: Why Insurance Doesn’t Cover the COVID-19 Pandemic” book, I discuss a number of these policy language revisions over the past 35 years. One of the premier insurance educators in America on form, coverage, and technical issues; Founder and director of the Big “I” Virtual University; Retired Assoc. VP of Education and Research from Independent Insurance Agents & Brokers of America. Reprint Request Information
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E&O Q&A Creating a Consistent Proposal for New & Renewal Presentations
By Mary LaPorte, AINS, CPCU, CIC, LIC, CPIA Question: I hope you can help. I think our agency really needs to worry about proposals, but no one else seems to be concerned. I am a commercial account manager who works with four different producers. Each of them has a preferred proposal they like to use for new or renewal presentations.We can get one from our agency management system, but most of them don’t like that one. They have different ones in a Word document that they like better.This forces me to type in the information which takes a lot of time. At least on renewals, I can just overwrite last year’s information and it is a little easier. Even the one that comes off our system needs to be cleaned up which takes time. I spent almost two days trying to get three proposals done. Isn’t there some E&O that can come from this? I’m hoping if our owners see this in writing from you, they will be more likely to address the problem. Ashley, Indiana
Answer: Ashley, I applaud your initiative to step up and try to resolve the agency’s proposal concerns. Yes, proposals are frequently pulled into E&O litigation, and having good proposal standards can minimize the agency’s exposure. Proposals should be issued through the agency management system as a standard. The proposal in most management systems is simply a Word document. So any “preferred” proposal which can be done in Word, can be done in your system. If no one in your office knows how to edit the proposal templates, then reach out to your vendor or user’s group for help. The reason for using only the proposal in your system is twofold. First, it saves keystrokes. Management should realize that keystrokes are time and that time is money. Second, and most important, since the information is pulled from the application or policy, it minimizes entry error. There are plenty of horror stories where a transposed number or a comma in the wrong place created an E&O loss for an agency.
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CONSISTENTPROPOSAL Management should evaluate all the preferred proposals and create a style that is consistent with the agency brand and which all producers should use. In creating the proposal, include a variety of optional pages which can be selected when building a specific proposal. This eliminates the need to cut and paste or otherwise tweak the proposals to satisfy each producer. Some agencies may have a marketing/sales program which includes proposal development. This is also fine, but only if the software integrates with the management system and eliminates the need to manually enter the information. Once again, consistency is important and everyone should use the same proposal system. Here are a few more helpful hints: Include an appropriate disclaimer on each proposal stating that it is simply a brief representation of coverages proposed, and only the policy should be referenced when determining coverage. Include a footer with the date on each page of the proposal so that one page cannot be taken
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Continued from page 21 out of context. Avoid trying to reproduce the policy by listing specific coverages. Reference the cause of loss form (ie: Special Form CP 10 30) but never use terms such as “all risk.” Avoid listing exclusions. Listing three or four “important” or “notable” exclusions may get you in trouble when a claim is later denied by an exclusion you did not list.If you must draw attention to a specific exclusion, state “but not limited to the following exclusion(s).” Consider including a page for optional coverages quoted/suggested. Some agencies use that page to have the customer to sign-off on the ones refused. ·When the proposal includes liability coverage, always include the statement “higher limits may be available. Please notify us if you would like to secure a quote for higher limits.” Ask management if you can head up a team to create updated proposal standards. I hope that these suggestions help you in that endeavor. Mary LaPorte is a consultant and educator with a strong background in Errors & Omissions loss prevention. Forward your E&O questions to marylp@lpinsuranceconsult.com
GET THE MOST OUT OF YOUR ADVANTAGE PROFILE TrustedChoice.com
You've decided to take the next step in increasing your digital visibility with an Advantage subscription on TrustedChoice.com — #1 online resource connecting insurance buyers with independent insurance agents. Three things to help you get the most out of your profile 1) Attract the right consumers. We want to make sure you're getting recommended to the types of consumers you want to work with the most. Depending on your subscription level, you do this by adjusting your agency’s appetite settings in your TrustedChoice.com profile. You can indicate the types of consumers you want to hear from based on lines of business, current insurance situation, industry type, and more from the commercial lines settings and/or personal lines settings in your account.
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ADVANTAGEPROFILE 2) Profile Completeness. Once you start showing up in search results for the types of consumers you want, you'll want to be on top of the results to attract prospects. To do this, make sure your profile is fully complete and contains all the information a consumer needs to make an informed decision. You do this by customizing your agency information in your TrustedChoice.com profile. Read more about the results algorithm and relevance score. 3) Answer the phone or email! This seems like a no-brainer but you’d be surprised how many consumers reach out to agents and then, a) get a recorded message and hang up, or b) send an email and never hear back from the agent. Making sure your phone calls and emails are going to the right person is critical, and you can edit these settings from the Basic tab right in your TrustedChoice.com profile. HOW TO: Sign-In Get started by signing into your shiny new Advantage profile and start attracting online insurance shoppers today. Update Advantage Profile Settings: Basic Info The Basic Info tab in the Agency Profile section of your TrustedChoice.com account contains core information about your agency. This information controls what is shown to consumers on your TrustedChoice.com profile so it is important to make sure it is accurate and attractive to potential insurance buyers.
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Continued from page 23 UpdateTeam Members List Advantage subscribers can use the Team Members feature to display team members on their agency profile and/or to give people account access to work with referrals and manage agency information.
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ADVANTAGEPROFILE Continued from page 24 Update Profile Settings: Personal Lines Settings Let online consumers who visit TrustedChoice.com know that you offer Personal Lines Coverage. Update Profile Settings: Commercial Lines Settings Let online consumers know which lines of business you cover. Update Profile Settings: Additional Information The additional Info tab in the Agency Profile section of your TrustedChoice.com account information helps you promote your social media sites, marketing videos, and more. Supplying this information will help you further engage with potential customers on your TrustedChoice.com profile. FAQs Why are some fields already filled out? We have pre-populated your agency profile with information from the IIABA database to help speed things up for you. It’s important that you review this information for accuracy and update it if needed. Why are some fields locked? The fields available to you depend on your subscription level. To unlock these features, simply upgrade your subscription. © 2021, Consumer Agent Portal, LLC. All rights reserved.
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INCLUDING A 'DBA' IN THE NAMED INSURED MIGHT LIMIT COVERAGE By: Chris Boggs Without belaboring the historical details, let's cut to the basic point – using an assumed name (a DBA) as part of the named insured may be detrimental to the insured. Although only a few states have specifically addressed the possibility that a DBA may limit coverage to activities specific to the DBA name, agents must still consider the ramifications when naming insureds and deciding whether to include a DBA. Historical Perspective on Named Insureds and Status as “Persons" Insurance is a contract between “legally acknowledged" parties, the insurance carrier and the named insured(s). More specifically, it is an agreement between “persons." In the legal sense, there are two types of legally acknowledged “persons": 1. Natural persons: Flesh and blood individuals or humans; and 2. Legal persons: Formed by the filing of specific documents such as Articles of Incorporation or Articles of Organization. Natural persons and legal persons are granted essentially equal rights and responsibilities under the law. Both can own property, sell property, hire and fire, and most importantly sue and be sued. To properly extend insurance protection, the correct “person(s)" must be named. Further, the only name REQUIRED for insurance coverage to be extended is that of the “legally acknowledged" person(s). Why? Because this is the only “person" who or that legally or factually exists. Further, only a “person" can suffer or cause injury or damage.
Takeaway: When naming insureds, the only “person" or “persons" that must be named is or are those acknowledged in law - natural persons or legal persons. Fictitious Entities or Non-Persons – AKA “Assumed Names" (DBAs or T/As) An “Assumed Name" is how the business is known in the neighborhood. Often the Legal Person is created to conduct business, sign contracts, etc., but the business is known in the community under its assumed name. For example, McDonald's might be the most common assumed name. The actual owner of a specific store creates a legal person to run what everyone knows and refers to as the neighborhood McDonald's. The legal person may actually be “Restaurant Enterprises 1, Inc.," but none of the customers know this, they only know it as McDonald's. McDonald's is the assumed name. Likewise, the legal name of the insured might be Tinkers, Evers & Chance, Inc., but the business may be known in the community as “1A Plumbing" (top listing in yellow pages, if they still exist). When someone calls for service, the phone is answered, “1A Plumbing." The community does not know the business as or by its legal name, only by the assumed name. Assumed names or entities are fictitious and don't exist as persons. A fictitious entity cannot suffer or cause injury or damage. Takeaway: Fictitious persons do not exist and are generally not extended the rights and responsibilities placed on natural or legal persons.
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To “DBA" or Not to “DBA" Because an insurance contract is an agreement between at least two legally acknowledged “persons," there does not appear to be a need to include the DBA as part of the named insured. The only requirement to effectuate coverage is the listing of the legally acknowledged “person" (natural or legal). “Fake" persons or entities are not required to be listed for coverage to exist, because they don't “legally" exist. However, and there is always a “however," agents often feel compelled to include the assumed name as part of the named insured. Rather than simply listing Tinkers, Evers & Chance, Inc., the agent desires to list “Tinkers, Evers & Chance, Inc., DBA 1A Plumbing." While this is not necessarily wrong, doing this has the potential to unexpectedly limit coverage in some states. Historically, including the DBA was not viewed as problematic. In fact, the VU publicly opined that inclusion of the DBA did not appear to have any effect on coverage and that the only MUST was
listing the proper person (legally acknowledged) as the named insured. What has changed? Several state courts have rendered decisions holding that use of the DBA limits coverage to the activities indicated by the DBA. The reasoning, every word in the contract matters, and this includes the words on the Declaration page. While holding that every word matters is not unreasonable, the result of including the naming of the insured in this net could be unintended. Using the example insured, these rulings mean that when “Tinkers, Evers & Chance, Inc., DBA 1A Plumbing" is the named insured, coverage is limited to activities related to plumbing. While this may not seem problematic on the surface (the intent was to provide coverage for a plumbing operation), what might the result be if: The insured undertook a non-plumbing related job to help the homeowner avert an emergency while they were on site; The insured subcontracts work that needed to be done before the plumbing could be done (framing, electrical, etc.); or
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The insured expanded their operations during the policy period to include another trade? In any of these situations, if the DBA is present, there may not be coverage extended for any injury or damage that occurs because the activities are unrelated to plumbing. If the insured was listed simply as “Tinkers, Evers & Chance, Inc.," coverage would be intact, assuming the carrier has not attached any limiting endorsements such as a limited designated operations type endorsement. Granted, this application of a DBA is precedent in only a few states (five or six), but these findings are relatively new (in a legal timeline sense). This limiting application of a DBA may become more and more common. Takeaway: Because the DBA is not necessary to effectuate coverage and because including the DBA may actually, though unintentionally, harm the insured, do not automatically list the DBA as part of the named insured without careful consideration. The Importance of Properly Naming Insureds Following a loss, the very first question asked by the claims adjuster is, “Is the 'person' suffering or causing loss insured by the policy?" If the answer is “no," there is no need to dig any further into the policy. Regardless how well the policy is designed, if insured status is not properly extended, there is no coverage. However, getting too “specific" with the named insured by including the DBA (or even a “Trading As" or “T/A") may negatively affect the breadth of covered activities. Recent court findings in a few states may require agents to rethink whether to include a DBA or not. The importance of properly naming the insured cannot be overstated. First, the proper
“person" (or persons) must be named (natural or legal); secondly, avoid unintentionally limiting coverage by using an assumed name as part of the named insured. Takeaways About DBAs Positively and without a doubt agents must make every effort to get the “you" (the “named insured") correct, but consider the following before adding anything other than the “legally acknowledged person" as the “you" within the policy:
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When naming insureds, the only “person" or “persons" that must be named are those acknowledged in the law, either natural persons or legal persons. Fictitious persons (assumed names) do not exist and are not generally extended the rights and responsibilities extended to legally acknowledged persons. Assumed names are not required to extend coverage. Because the DBA is not necessary to effectuate coverage and because including of the DBA may actually, though unintentionally, harm the insured, carefully consider the possible ramifications if the decision is made to list the DBA. When and where possible, don't grant these fictitious entities status as a “you."
Disclaimer: This article is intended for general informational purposes only. Any liability is disclaimed as to reliance on or use of the information contained herein. The article is not intended to constitute and should not be considered legal or other professional advice, nor shall it serve as a substitute for obtaining such advice. If specific expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought.
Risk Rating 2.0
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FEMA Releases More Guidance Ahead of Implementation By Wyatt Stewart Big "I" Assistant Vice President of Federal Government Affairs
With FEMA's new pricing methodology for the National Flood Insurance Program (NFIP) to be implemented Oct. 1, use these new resources to prepare for the change. As reported in the News & Views e-newsletter throughout the year, Risk Rating 2.0, FEMA's new pricing methodology for the National Flood Insurance Program (NFIP) is scheduled to be implemented on Oct. 1. All new policies effective on or after Oct. 1 must be issued under Risk Rating 2.0. Existing policies renewing with effective dates between Oct. 1, 2021, and March 31, 2022, can renew under the legacy rating plan or renew their policy under Risk Rating 2.0. All existing policies with renewal dates on or after April 1, 2022, will be renewed under Risk Rating 2.0. With implementation nearing, FEMA just released the Risk Diane El Toro Travel & Culture Leader
Rating 2.0 edition of the NFIP Flood Insurance Manual (FIM) effective Oct. 1. This edition of the FIM provides guidance for administering NFIP policies written under the new pricing methodology. Additionally, FEMA created the “Roadmap to the Risk Rating 2.0 Flood Insurance Manual" to help navigate from the April 2021 legacy FIM to the October 2021 Risk Rating 2.0 FIM. The document provides a crosswalk of legacy FIM content alongside information about where to locate that content in the Risk Rating 2.0 FIM. FEMA also released the Industry Transition Memorandum (ITM) effective Oct. 1 as an attachment to Write-Your-Own Bulletin w21012 ITM. The ITM explains how the transition from the legacy rating plan to Risk Rating 2.0 will occur and provides business, data and information technology guidance for NFIP insurers and vendors on how to accomplish that transition. In addition, FEMA has updated the NFIP Services page to provide access to the latest
documents for Risk Rating 2.0. The Big “I" believes that Risk Rating 2.0, if properly implemented, has the potential to improve the NFIP experience for agents and consumers, but emphasizes that the rollout of the program will be critical in determining the success of the effort. As FEMA continues to provide more information regarding Risk Rating 2.0, the Big “I" will continue to provide members with updates in the weekly News & Views e-newsletter.
By all accounts, the pandemic-related workfrom-home business model is here to stay, at least for the time being. For the most part, many companies were able to transition quickly, albeit not without some significant challenges. Yet now another significant challenge is looming: how to hire employees you may not meet in person, either during the course of the pandemic or for the duration of their employment with your company. For the insurance industry, that challenge is multiplied by a shortage of viable candidates. Veteran
insurance professionals are retiring at an alarming rate. The Bureau of Labor Statistics estimated that between 2016 and 2020, 400,000 insurance professionals will head off to retirement. The situation is made more dire by the fact that millennials are showing little interest in insurance industry careers. According The Millennial Survey conducted by The Hartford, a mere 4% of millennials would consider an insurance industry career. Yet the very pandemic that has challenged insurers to adopt remote work
YOUR REMOTE HIRING PLAN In-house hiring practices don't often translate to hiring employees that will work remotely. What modifications do you need to make to your hiring process? By Sharon Emek, Ph.D., CIC
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strategies may be somewhat of a saving grace in the quest to find remote workers. According to World Economic Forum data, 85% of millennials are seeking full-time remote work opportunities. What’s more, 82% expressed higher company loyalty to those companies with remote work programs.
But First, Soft Skills
In fact, remote work is appealing across a wider age demographic than just millennials; a recent Zapier-commissioned Harris Poll reveals that 95% of all knowledge workers (those working in a professional setting and using a computer as part of the job) want to work remotely. That means companies that were forced to shift to a remote work arrangement are now facing the very real challenge of trying to build a remote hiring process.
Before you hire, make sure to understand common soft skills that make for a successful remote worker. Your next remote employee should to be able to work with minimal supervision. Ideally, your remote worker should be able to manage time effectively so that daily tasks as well as projects are completed on time.
No matter how big or small your agency is, remote hiring takes planning. But if executed properly, your hiring process could do more than just help you hire good talent – it can elevate the number of candidates to choose from, and deliver candidates that have the exact skills needed.
Yet your new hires need a few more traits than a standard in-house hire. Because remote work can be isolating, employees need the right set of traits to be able to perform effectively and productively.
To do that, your employee should demonstrate the ability to solve common issues as well as some of the more complex challenges that they may face. And your employee should be comfortable with remote communication tools and methods.
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Interviewing from a Distance
connection.
Any organization that has worked remotely recently knows the need for video conferencing. That same technology is what’s needed to conduct remote interviews. While phone interviews can work for initial screening, they fail to pick up on physical cues, such as body language and facial expressions. Plus, video conferencing is a way to vet those candidates on their comfort level with technology your company uses.
You can assess also how conducive the candidate’s available workspace is to the tasks at hand. For instance, if you’re hiring a salesperson, having a noisy location or too many people in the residence could hinder the salesperson’s ability to connect with prospects. Your ideal candidate should have a distraction-free location, or a plan for keeping it quiet and distraction-free during work hours.
That comfort with technology should extend to all technology your company employs. How familiar is the candidate with those tools? Have they shown proficiency in related technologies? In some cases, technology can be similar, so that the learning curve for your particular application would not be prohibitive.
That last point can be difficult to navigate. As many families are home with young children and daycares are closed, your ideal candidate may have temporary distractions. If that’s the case, shift the questioning a bit: Would your candidate be able to put in hours after children are in bed or napping? Would a more flexible work schedule help them complete the work necessary?
What could be problematic is your candidate’s ability to maintain connectivity with your team. Spotty internet may not be a deal-breaker unless your team needs to be able to connect quickly during office hours. By conducting a distance interview, you can assess the quality of the
Identifying the Self-Starters Another question to consider: How much training will your new hire need? Every organization has a unique set of processes, and new employees
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need to learn them. However, in a remote position, that means your new hire needs to be able to train on their own with minimal supervision. To ensure they can, find out how they best learn: in-class instruction or independent, self-paced learning? Have they completed any self-guided learning before? What were the results? How easily can they get used to new systems or technology? What challenges them most about technology? That matters because in remote work, technology is key to getting the job done. And by asking these questions at the outset, you can set expectations for your candidates so that they know what is expected of them. Hired: Now What? That’s important too after the candidate is hired. We recommend using the hiring process to outline both your expectations and how you will measure their performance. One suggestions we ask you to consider is
dropping an hourly expectation and replacing it with a per-outcome expectation. As mentioned previously, not all candidates can do their best work during traditional nine-to-five hours. By measuring your new hires, as well as all your employees, by benchmarks met and project outcomes, you will get a true measure of their productivity. Moreover, such a move boosts employee morale and motivation. In an environment in which employers and employees alike are trying to carve out the best way to conduct business, adopting a more flexible employee management style makes the most sense, and helps workers succeed in a remote setting. Hired, Retained That success results in higher employee satisfaction, which translates into better employee retention. In a global workforce environment that is adapting to what could be permanent changes to business, your business has a great opportunity to grow and to thrive. A strong remote hiring process, complete with
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vetting for soft skills, setting expectations, and outlining new management strategies can help your organization gain an advantage of those organizations that are still trying to do everything through the traditional business lens. By setting your remote business on the right path at hiring time, your organization can adapt quickly to whatever changes may come in the future. That flexibility can keep your entire organization moving into a stronger, more resilient future.
About the author Sharon Emek, Ph.D., CIC, is founder and CEO of Work At Home Vintage Experts (WAHVE). WAHVE (www.wahve.com) is an innovative contract talent solution that matches retiring, experienced insurance, accounting and human resource career professionals with a company’s talent needs. WAHVE bridges the gap between an employer’s need for highly skilled professional talent and seasoned professionals desiring to extending their career working from home. From screening to placement, WAHVE is a comprehensive solution to qualifying, hiring, and managing experienced remote talent.
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PULSE
THE ART OF THE POSSIBLE TOP 3 WAYS TO USE DATA TO SELL MORE As consumer buying preferences have increasingly shifted online to online buying since the pandemic, data has become the most powerful sales tool in insurance. Companies are using data to drive their marketing, to tailor their front-end buying experience, use proprietary data to prefill and improve the customer experience, and send personalized communications to upsell and improve retention.
While the number of different ways to use data can (and have!) fill entire books, there are a few use cases that stand out. These are ways that leading agencies and MGAs are using to drive both their top and bottom lines in the right direction. We're going to take a quick look at these use cases--what they are, what's required, and how to use the data to make a big impact.
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These three data use cases we're going to unpack are: 1. Using book of business data to create target customer experiences and dominate niches 2. Using customer policy data to upsell and cross-sell during renewal time. 3. Using lead data to proactively rate and reach out to prospects. These three use cases are so powerful that any agency or MGA can use them to drive innovation and stay relevant and grow in a world where data is king and digital is the new default. Let's dive in. #1: Using Book of Business Data to Create Targeted Customer Experiences & Dominate Niches In today's world, your customers are getting bombarded with alerts, offers, and direct marketing all day long. It's harder than ever to stand out. This is where data comes in. Leading agencies and MGAs are using their book of business data to create experience-driven campaigns that are optimized to their customer needs. They're looking at their book of business to find which segments are growing the fastest, where there are retention problems, and where loss ratios are lowest. These become targets for
campaigns tailored to specific customer segments. These campaigns offer insurance packages targeted to those customers, streamlined digital experiences that don't ask for irrelevant or unnecessary information, and valueadds that speak to their individual situation. By tailoring the customer experience based on data, you're able to stand out by focusing on what they need and want, and branding and presentation that's clearly not just massmarketed generalizations. #2: Using Customer Policy Data to Upsell and Cross-sell During Renewal Time As we just mentioned, data is most powerful when it's used to create targeted customer experiences. Another important use case is to create and send personalized communications to upsell and crosssell during the renewal process. This requires you to have up-to-date information on your customers, particularly which types of policies they have and updated exposure data, typically obtained through a renewal questionnaire. Ideally, you need to provide your customer with a renewal form prefilled with their existing information. Once you have that information, the selling can actually begin in earnest. You should be able to use that information to generate quotes for relevant policies, if the carriers providing those products are sufficiently advanced.
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This gives you the ability to create proposals that you can deliver automatically through a marketing automation system or personally by putting them in the hands of producers. This is a strong touchpoint with the customer and an opportunity to expand their overall premium they have with you. A personal lines customer who is a business owner is the prime example--they should be presented with a proposal for their business. You should also be crossselling benefits to your current book of commercial policies if you can. The possibilities are endless if you have 1) the ability to get the data and 2) the ability to use it to generate targeted renewal offers. #3: Using Lead Data to Proactively Rate and Reach Out to Prospects Lead data is a powerful way to proactively rate and reach out to prospects. Combined with the ability to use that data to proactively rate them for policies that they probably need, there's a powerful recipe for increasing sales. Lead data is made up of the contact information and online behavior of those who have shown interest in your company's products and services. Or you can purchase lead lists if you find a quality vendor. Either way it's a goldmine of information about what those
prospects are looking for, which products might be relevant to them, and the time to reach out and engage is before they start shopping around. The really useful leads data contains enough demographic and exposure information for you to get a quote on a policy. Approaching a prospect with an actual quote--even if an indication--is a powerful way to streamline the sales process and set you and your company apart from the crowd. Paired with a marketing automation system to deliver those quotes in a personalized way and drive customers to a digital online buying experience can increase your sales numbers significantly. So that's just a few ways to use data to improve your agency's or MGA's growth and profitability. There are of course many more ways, and more will be discovered and used over time, but these methods are typically within reach of most agencies based on today's technology, and certainly worth the time. Author Bio: Jason Kolb is Founder & CEO of DAIS Technologies, Inc.
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IIAGNOUPDATE Save the Date
December 8, 2021 Registration will open soon!
IIABRUPDATE Fall Social Oct. 7 ~ 5:30pm - 8:30pm
Online Registration | Registration Form
November Luncheon Nov. 11 ~ 11:30am - 1:00pm
Speaker/Topic Cybersecurity & Live Hacking Demo Stephenson Technology Corporation
Online Registration | Registration Form
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IIASBUPDATE
LOUISIANAAGENT
2021 Annual Big I Golf Classic Monday, October 4, 2021 Eastridge Country Club 1000 Stewart Drive Shreveport, LA
Lunch Begins at 11:00 am Shotgun Start at 12:30 pm
Please join us for our annual Golf Classic. The format is a 4 person scramble. You may submit a team, or we will be happy to place you on a team if registering individually. Online Registration | Registration Form
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LOUISIANAAGENT
IIABL EDUCATION OCT 2021 LIVE & INTERACTIVE WEBINARS SUNDAY
MONDAY
Sept 26
27
3
4
10
11
TUESDAY
28
29
5
6
12p
12p 12p
18
25 31
Agent's E&O: Duties, Operations, Checklists & More Premium Auditing What Every Agent Must Know The Basics of COPE The Basics of Contractual Risk Transfer
13
19
20
10a
12p 12p
7a
1p
24
Ethics: Essentials for the Insurance Provider
12
12p 12p
17
WEDNESDAY
4 Key PL & CL Exposures Every Agent Must Understand 3 Keys to Getting the Names Insured Correct Rules for Developing the Correct Premium
26
12p
Premium Auditing What Every Agent Must Know The Basics of COPE The Basics of Contractual Risk Transfer
27
8a
12p
Why Business Income is the MOST Important Property Coverage Properly Calculating & Insuring the Business Income Expense
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& EVENTS THURSDAY
30
7 8a
10a
2p
FRIDAY
Oct 1
Flood Insurance & the NFIP 9 Rules for Reading an Insurance Policy Based on the Law of Insurance Contracts In the Aftermath-An Agent's Persp on Disaster Readiness & Recovery
14
8
1:30p
Workers' Comp: 5 Mistakes Every Agent Makes
SATURDAY
2
9
16
8a
21
22
23
28
29
30
12p 12p 12p
Premium Auditing What Every Agent Must Know The Basics of COPE The Basics of Contractual Risk Transfer
E&O Risk Management Ethics Flood Commercial Lines Courses Personal Lines Courses Professional Development
NEW E&O PROGRAMS Understanding Risk Mitigation and E&O Claims 3 hours CE Qualifies for 10% Premium Discount! Agency E&O Exposures and Defenses 3 hours CE Qualifies for 10% E&O Premium Discount
15
Insuring Commercial Transportation Exposures Condos & How to Insure 9a Them 11:30a Why Certificates of Insurance... Just Why? Homeowners in Real 12p Life: Tales of Claims & Coverage
IIABL CE ON DEMAND
E&O Exposures: Website & Social Media 1 hour CE
OTHER EDUCATIONAL RESOURCES
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CONTINUED OCT 2021 IN-PERSON EVENTS SUNDAY
MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY
SATURDAY
Sept 26
27
28
29
30
Oct 1
2
3
4
5
6
7
8
9
IIA of Shreveport Bossier Annual Golf Tournament!
Fall Social
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
TO Fall Conference Road Trip
Shreveport
SAVE THE DATE IIABL Fall Conference November 9, 2021 Baton Rouge, LA IIABR November Luncheon November 11, 2021 Drusilla Seafood IIAGNO Past Presidents Luncheon December 8, 2021 Metairie Country Club
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2021
LOUISIANAAGENT
INDUSTRY PARTNERS
GOLD LEVEL
SILVER LEVEL
BRONZE LEVEL Accident Fund Insurance Company of America
Allied Trust Insurance Co.
Americas Insurance Co.
Berkshire Hathaway GUARD Insurance Companies
EMC Insurance Companies
FCCI Insurance Group
Foremost Insurance Group
Forest Insurance Facilities
Gulf States Insurance Company
Homebuilders SIF
Iroquois South, Inc.
Lane & Associates, Inc.
LCTA Risk Services
LUBA Workers' Comp
Maison Insurance Company
National General Insurance
RPS/Risk Placement Services
Summit Consulting, Inc.
Wright Flood
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ADVERTISER INDEX COMPANY
PAGE
Access Home Insurance
31
Accident Fund Insurance Company of America
25
Agile Premium Finance
19
Allied Trust Insurance Company
41
Americas Insurance Company
19
Amerisafe
37
AmTrust North America
40
AmWINS Access Home Insurance Company
3
Berkshire Hathaway GUARD Insurance Company 34 Burns & Wilcox Ltd.
7
EMC Insurance
5
FCCI Insurance Group
43
Foremost Insurance Group
41
Forest Insurance Facilities
15
The Gray Insurance Company
27
Homebuilders Self Insurers Fund
35
Imperial PFS
10
Iroquois
29
Lane & Associates, Inc.
18
LCI Workers' Comp
31
LCTA Risk Services
34
Lighthouse Property Insurance Group
36
LUBA
9
LWCC
22
Maison Insurance
39
National General
28
Progressive
28
RISCOM
33
RPS/Risk Placement Services
48
SafePoint Insurance
37
Stonetrust
24
Summit
16
United Fire Group
21
UPC Insurance
13
Wright Flood
7
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IIABL 2021-2022
BOARD OF DIRECTORS & OFFICERS PRESIDENT, DONELSON P. STIEL David H. Stiel, Jr. Agency - Franklin PRESIDENT-ELECT, MICHAEL SCRIBER Scriber Insurance - Ruston SECRETARY-TREASURER, ARMOND K. SCHWING Schwing Insurance Agency, Inc. NATIONAL DIRECTOR, JOHNNY BECKMANN, III Assured Partners - Metairie PAST PRESIDENT, BRENDA CASE Lowry-Dunham, Case & Vivien - Slidell YOUNG AGENT REPRESENTATIVE, BRITTNI LAGARDE Southern Insurance Agency - New Orleans
ANN BODKIN-SMITH Thomson Smith & Leach Insurance Group - Lafayette MATTHEW DEBLANC Continental Insurance Services - Marrero ROB W. EPPERS Risk Services of Louisiana - Shreveport MATT GRAHAM Lincoln Agency - Ruston CHRISTOPHER S. HAIK Haik Insurance Holdings, LLC - Lafayette STUART HARRIS McClure, Bomar & Harris, LLC - Shreveport ROSS HENRY Henry Insurance Service, Inc. - Baton Rouge BRET HUGHES Hughes Insurance Services, LLC - Gonzales CHARLES H. LEBLANC Bourg Insurance Agency, Inc. - Donaldsonville LYDIA MCMORRIS Alliant Insurance Services - Baton Rouge A. EUGENE MONTGOMERY, III Community Financial Insurance Center, LLC - Monroe JOE KING MONTGOMERY Thomas & Farr Agency, Inc. - Monroe HARTWIG "ROBBY" MOSS, IV Hartwig Moss Insurance - New Orleans PAUL R. OWEN John Hendry Insurance - Zachary ROBERT LOUIS PALMER Insurance Underwriters, Ltd. - Metairie MARTIN "TEENY" PERRET Quality Plus - Lafayette ROBERT G. RIVIERE Riviere Insurance Agency - Thibodaux ROBERT STONE Stone Insurance, Inc. - Metairie
