L O U I S I A N
LEGISLATIVE SESSION WINDING DOWN
JEFF ALBRIGHT
THE IIABL WILD WEST ANNUAL CONVENTION: A PREVIEW OF EVENTS AND ACTIVITIES
KATHLEEN O’REGAN
FTC ISSUES RULE BANNING NONCOMPETE AGREEMENTS WES BISSETT
Benjamin Albright
Chief Executive Officer, President balbright@iiabl.com (225) 236-1357
Jeff Albright
Consultant
jalbright@iiabl.com (225) 236-1366
Karen Kuylen
Director of Accounting & Finance kkuylen@iiabl.com (225) 236-1353
Jamie Newchurch
Director of Insurance Programs jnewchurch@iiabl.com (225) 236-1350
Kathleen O'Regan
Director of Communications & Events koregan@iiabl.com (225) 236-1360
Karson Roberts
Communications & Events Administrator kroberts@iiabl.com (225) 236-1351
Lyra Roberts
E&O Administrator lyra.roberts@iiaba.net (225) 236-1352
The 2024 Louisiana Legislature session is ending, with major property insurance reforms enacted to boost market capacity However, tort reform has faced strong opposition and limited success. This article reviews the status of key tort reform bills.
JEFFALRBIGHT IIABLCONSULTANT
The 2024 Regular Session of the Louisiana Legislature is starting to wind down with regard to insurance related bills Most of the property insurance reform legislation has been signed by the governor and will become law As previously reported, significant reforms have been made this year which will hopefully bring new property market capacity to Louisiana
Unfortunately, tort reform has not fared so well Opposition from the always formidable plaintiff attorneys along with some medical professionals who profit from injury claims and litigation have made it difficult to pass meaningful tort reform In addition, tort reform is not supported by the Landry administration Following is the status of important tort reform legislation from this session:
Following is a report on the most important bills. You can click on the bill number for detailed information about each bill.
SB 295
File & Use Rating - Provides for certain processes relative to rate making (changes the rate approval process from prior approval to file & use). - Passed the House floor this week and returns to the Senate floor for concurrence in House amendments.
ACT 10 / SB 323
Reform Bad Faith Statutes - Provides for fair claims processing (clarifies the bad faith statutes). - Became law on May 7, 2024, upon signature of the governor.
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ACT 8 / HB 120
Repeals the termination date relative to the Louisiana Fortify Homes Program. – Will become law on August 1, 2024.
ACT 113 / HB 520
Protects Policyholder Access to Adjuster Reports - Provides unfair or deceptive trade practices relative to reports of adjusters. - Will become law on August 1, 2024.
ACT 9 / HB 611
Exceptions to the “More Than 3-Year Rule” - Provides relative to homeowners' insurance and termination of certain policies. - Becomes law on January 1, 2025.
SB 355
Foreign funders of third party litigation financing
This bill requires all foreign third party litigation funders to disclose specific information to the attorney general. It focuses entirely on direct foreign funding and does not require disclosure of the contract to other all litigants, thereby not providing the transparency necessary to provide balance in the legal system.
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Amended on the House floor with the strong disclosure language from Rep. Chenevert’s HB 336, which is stalled in Senate Judiciary A Committee. The amended bill passed the House floor 81-20. Sen. Stine moved to reject House amendments on Tuesday, sending the bill to conference committee. As amended, SB 355 will prohibit litigation funding from foreign adversaries, including any indirect foreign funding, and require all other parties to automatically disclose any litigation financing contract or agreement The amendments added in the House align the bill with Rep Chenevert’s TPLF transparency bill, which is part of the package supported by the Commissioner of Insurance Without these important changes, the legislation does not do enough to bring additional fairness to our legal system Please do not make additional changes to amendments passed in the House
This legislation discloses to the jury in civil cases what a plaintiff actually pays in medical costs and what the medical provider bills the insurer This bill would put us in more close alignment with the nation’s trend of enacting legislation that allows the plaintiff to recover only what was actually paid by them, not the amount incurred Passed the Senate floor on May 21 with amendments As amended, the courts may now award up to 30 percent of the difference between what was billed and what was actually paid. Admissibility language remains on the bill, but it does not address cash payments which is a major loophole that plaintiff attorneys use to inflate medical expense claims. This watered down version of the single most important tort reform bill will NOT provide meaningful improvement in inflated medical expense claims and will NOT improve the automobile insurance market.
This “compromise” makes everyone unhappy. Business and insurance interests believe it does not go far enough. The plaintiff attorneys believe it will impair their ability to inflate claims, and we understand the governor is reluctant to sign the bill currently.
Changes prescriptive periods for tort actions from one year to two years. Passed the Senate without amendments. Sen. Seabaugh attempted to amend the bill to tie other reform measures to its passage, but the effort failed. We remain opposed to this bill unless other reforms are signed into law.
This bill would repeal the current direct action statute against insurers except in specific limited circumstances. This legislation would put Louisiana in line with 47 other states and create a more attractive market for insurers.
Passed the Senate with amendments 39-0 Most stakeholders agree the amendments are good, and Louisiana is no longer a direct action state We hope Governor Landry will not veto the bill
Ben Albright
December 2023
In current law, if the plaintiff does not win a “judgment” when an offer of judgment is made and not accepted, the only recourse is payment of costs by the plaintiff This bill directs that if a final judgment is in favor of the defendant and is at least 25 percent less than the offer of judgment, defendant is entitled to recover attorneys’ fees and costs from the plaintiff. This would resolve the current imbalance in the law, encourage early settlement within a reasonable range, and aligns Louisiana with other states.
Awaiting House floor action. Expected to pass.
HB 24
Would require a plaintiff to maintain full burden of proof on causation rather than allowing the plaintiff to rely on the prior judicially created presumption of causation. It legislatively repeals the presumption and provides additional fairness and predictability in Louisiana’s legal system.
Stalled in the Senate Judiciary A Committee.
HB 336
Creates the Litigation and Financial Disclosure Act.
Requires parties to automatically disclose any litigation financing contract or agreement under which anyone other than a legal representative may receive compensation contingent on the proceeds of the civil action.
Stalled in Senate Judiciary A Committee but amended onto SB 355 as outlined above.
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IIABL is hosting its annual Wild West Convention at the Hilton Sandestin, Florida. This article previews the events and activities lined up for the convention.
KATHLEENO’REGAN IIABLDIRECTOROF COMMUNICATIONS &EVENTS
The Independent Insurance Agents and Brokers of Louisiana (IIABL) are gearing up for their much-anticipated Wild West Annual Convention, set to take place from June 16-19, 2024, on the white sandy beaches of the Hilton Sandestin in Florida. This year’s convention promises a robust blend of professional development, networking, and entertainment with Wild West theming throughout. Here's a sneak peek at the highlights of the event.
The convention kicks off with a warm welcome on Sunday, featuring a refreshing cocktail and popcorn, providing an excellent opportunity for attendees to relax and mingle after their travels. Throughout the afternoon, registrants can explore the Exhibit Exposition, where they’ll discover the latest industry offerings and have the chance to win door prizes drawn every hour. The evening Welcome Reception offers another opportunity to connect with exhibitors while enjoying food, drinks, and more chances to win prizes.
Monday’s agenda is packed with valuable sessions, starting with the Opening Business Session. Commissioner Tim Temple will address the insurance crisis in Louisiana and the legislative actions taken in 2024 to tackle it. This session also includes the installation of IIABL officers and directors, as well as the presentation of awards to notable members like Mike Scriber and David Tatman. Marit Peters, IIAT President & Executive Director, will share insights on modernizing and transforming agencies to build winning cultures. The afternoon continues with a CE Seminar led by Peters, focusing on creating a thriving workplace culture through trust, communication, and collaboration. Cool down that afternoon with poolside frozen drink treats and end the day with a celebration of Jeff Albright’s remarkable 45-year career.
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There’s something for everyone on Tuesday. Rather stay indoors, IIABL is offering a series of CE Seminars covering critical topics such as cyber threats, experience rating, and the reinsurance market. These sessions are designed to enhance professionals' knowledge and skills in these key areas. Attendees who prefer the beach can enjoy a fun-filled Beach Tailgate with IIABL that includes games, music, and beverages for the whole family. In the afternoon, there’s a delightful mix of ice cream and beer by the pool, perfect for cooling off. The day concludes with the ever-popular Casino Night, featuring casino games, a DJ, an evening dessert, and a photobooth. Attendees can turn their "funny money" winnings into raffle tickets for a chance to win exciting prizes.
Wednesday marks the closing of the convention with a Business Session that includes addresses from outgoing President Armond Schwing and incoming President Bret Hughes. Todd Jackson, IIABA Incoming Chairman, will provide an update on national insurance industry initiatives. Jeff and Ben Albright will review the legislative changes from the 2024 Regular Legislative Session, highlighting their impact on the insurance industry in Louisiana.
Overall, the IIABL Wild West Annual Convention promises an engaging mix of professional growth opportunities, networking, and fun activities, making it an event not to be missed by anyone in the insurance industry.
In this article, it discusses the Federal Trade Commission's (FTC) approval of the "NonCompete Clause Rule," banning most noncompete agreements.
WESBISSETT BIG“I"SENIOR COUNSEL, GOVERNMENT AFFAIRS.
On Tuesday, the Federal Trade Commission (FTC) completed its work on a high-profile regulation that prohibits the use and enforcement of most noncompete agreements. The FTC commissioners voted 3-2 to approve the “Non-Compete Clause Rule."
The rule targets employment agreements that prohibit, penalize or effectively prevent a worker from seeking or accepting work elsewhere or operating a business after leaving a particular job.
Among the agreements that would be banned are those that expressly prohibit a person from working elsewhere; those that require a person to pay liquidated damages to do so; and severance agreements in which a person is paid only if they refrain from competing against a former employer.
Once the rule takes effect, the regulation will ban for-profit employers from utilizing such agreements, terms or conditions and will prohibit their enforcement or attempted enforcement in most instances.
The FTC unveiled its draft rule in January 2023. The proposal produced significant concern and confusion in the business community and generated 26,000 public comments. The final rule is slated to take effect 120 days after its formal publication in the Federal Register, which is expected to occur in the next two weeks. However, multiple legal challenges have already been filed and this litigation could delay implementation of the rule indefinitely or even permanently.
An estimated 30 million American workers are subject to noncompete agreements today, and the FTC's rule will have significant ramifications for many businesses if it takes effect.
Independent insurance agents who are considering the impact of the new regulation on their agencies and firms should consider some of the rule's key elements and certain revisions that were incorporated in the final text Items of special note include:
Sale-of-a-Business Exemption The draft rule unveiled last year included an exemption that allowed the use of noncompete agreements between the buyer of a business and a seller but the usefulness of this otherwise helpful exclusion was diminished because it only applied to sellers possessing at least a 25% ownership interest in the entity
The Big “I" argued in oral testimony and written comments that were submitted to the FTC that this ownership stake restriction should be eliminated. The final regulation issued by the FTC deletes the artificial and arbitrary restriction and permits reasonable noncompetes to be used in connection with the sale of a business. Specifically, the rule that was issued this week does not restrict the use of any agreement “that is entered into by a person pursuant to a bona fide sale of a business entity, of the person's ownership interest in a business entity, or of all or substantially all of a business entity's operating assets." The Big “I" welcomes this helpful revision and important clarification.
Treatment of other types of employment agreements. The new regulation is intended to address noncompete agreements and does not prohibit the use and enforcement of other forms of employment covenants.
Non solicitation, nondisclosure, and other types of employment agreements are unaffected by the rule if they do not prohibit or function to prevent a worker from switching jobs or starting a new business Protecting the ability of independent agents and other businesses to use these alternative agreements in reasonable ways was a top priority of the Big “I "
Effect on existing noncompete with senior executives. The FTC's initial proposal would have nullified any noncompete agreement executed before the final rule's effective date The final regulation takes a different approach and allows noncompete with “senior executives" in place on the effective date to remain in force The rule defines a “senior executive" as someone who earns more than $151,164 per year and serves in a “policy-making position," which is a term also defined by the rule
Effect on existing noncompetes with other workers. Existing noncompete agreements with workers who are not senior executives are not enforceable after the regulation takes effect. Any for-profit entity that has an existing noncompete in place with such a worker must disclose to that person that the agreement is no longer enforceable prior to the effective date. These notice requirements have been simplified and flexibility toward compliance has been added to the final rule.
Effect on state law. The final regulation is intended to preempt any state law that conflicts with its terms but only to the extent of any such conflict. In other words, state laws that address, restrict, or prohibit the use of noncompetes are unaffected by the FTC regulation if they do not directly conflict with it.
Despite the FTC's action this week, the fate of the noncompete regulation remains in doubt and will ultimately be resolved in the courts. At least two legal challenges have already been filed, including one initiated by the U.S. Chamber of Commerce, the Business Roundtable, and two other Texasbased plaintiffs that also seeks a stay of the effective date and a preliminary injunction. These lawsuits have very strong legal arguments on their side. They question whether the FTC possesses the statutory authority to act as it has and challenge the validity of the regulation on additional grounds, and many observers predict that the rule will not survive.
Kicking off the new year with a bang, IIABL has rocked the state with a series of electrifying chapter events!
Our Greater New Orleans chapter dazzled with four spectacular gatherings, Baton Rouge kept the energy high with three dynamic events, Shreveport Bossier charmed with two lively get-togethers, and our Young Agents brought fresh vibes with their two exciting meet-ups.
Each event was a smashing success, brimming with delicious food, great drinks, engaging activities, insightful learning, and vibrant networking. As we eagerly await the next round of chapter events, let’s take a moment to relive the magic of our unforgettable past gatherings!
FEBRUARY TOWN HALL MEETING
At the Metairie Country Club, Jeff and Ben Albright offered an exclusive glimpse into the upcoming 2024 Legislative Session.
Amidst fun-filled rounds of golf, delicious dining, and refreshing drinks, IIAGNO proudly honored Tensey Pricer, cherishing his exceptional contributions to the insurance industry
INSTALLATION LUNCHEON
At the Baton Rouge Country Club, Louisiana Insurance Commissioner Tim Temple presided over the Installation Luncheon, formally inducting the 2024 IIABR Board of Directors, marking the beginning of a new era of leadership.
At the Juban’s Restuarant, Jeff and Ben Albright offered an exclusive glimpse into the upcoming 2024 Legislative Session.
Swinging into action at Topgolf, we enjoyed rounds of golf, delicious food, and refreshing drinks, all while coming together to raise an impressive $2,500 for the Trusted Choice Relief Fund!
At The Shreveport Club, Jeff and Ben Albright offered an exclusive glimpse into the upcoming 2024 Legislative Session.
MAY LUNCHEON
At The Shreveport Club, attendees of the May luncheon were treated to invaluable insights by Insurance Commissioner Tim Temple, shedding light on the 2024 legislative session and the evolving landscape of the insurance industry.
CORNHOLE TOURNAMENT CRESCENT CITY CLASSIC
Our Young Agents gathered for a friendly game of cornhole at Tin Roof Brewery, enjoying camaraderie, competition, and craft brews in a lively atmosphere of networking and fun!
Our Young Agents took to the streets of New Orleans for the Crescent City Classic, showcasing their athleticism teamwork and
This article examines the impact of the challenging insurance market on both agents and customers.
IACONTENTEDITOR
Through proactive communication, diversification and investment in their agencies, independent agents are successfully navigating the hard market and laying the groundwork for future growth, according to the “2024 Agent-Customer Connection Study," the latest research by Liberty Mutual and Safeco's Agent for the Future.
The report explores how the hard insurance market is impacting both agents and customers, with 83% of agents saying this is the hardest market they can remember seeing. Also, 89% of customers said their insurance rates increased in the last year and 21% said it increased “significantly."
Yet, customers don't fully understand what's causing rate increases, the report said. Only about 20% of insurance customers say they understand the market forces behind rising insurance rates. Insurance clients want their agents to help them understand, as 62% said it's important for their agent to educate them on the changing market dynamics.
However, while 70% of independent agents say they are proactively communicating with their clients about market conditions, only 20% of customers said they first heard about a rate increase from their agent. More than half (58%) said they first learned about the increase when they noticed their bill amount changed.
There is an opportunity for agents to communicate their value as trusted advisors through improving proactive communication. Agents could improve customer satisfaction and retention by adapting their communication strategies, particularly when it comes to customers who have experienced significant rate increases, the report says.
“Insurance is a relationship business," said Luke Bills, president of independent agent distribution at Liberty Mutual and Safeco Insurance. “In a hard market, those relationships have become even more important. We already know that customers rely on their independent agents for advice and expertise on their insurance coverage. But this research goes further to show that today's customers are turning to their agent for even more. They want their agent to educate them on changing market conditions, help them better understand policy changes and provide advice on risk mitigation."
According to the research, forward-thinking agents have stepped up to today's challenges, adapting to meet clients' needs and finding growth opportunities. Agencies that experienced an annual revenue increase of more than 10% reported three strategies: diversifying and shifting toward markets less impacted by the hard market; investing in new retention programs to keep existing clients happy; and positioning themselves for future growth by continuing to invest in new client acquisition programs, as well as hiring additional staff.
Amid the hard market, 65% of agents say their retention rates are the same or better than they were a year ago, and 69% say they are acquiring new clients at the same rate or better than the previous year.
“Hard insurance markets are challenging, but they don't last forever," Bills said. “It's with a sense of optimism that I can say and this research validates that independent agents are well-positioned to weather this market and come out stronger, more resilient and customer-centric."
This article discusses the importance of standing out in sales amidst competition from other salespeople. It provides several strategies for achieving uniqueness in sales.
JOHNCHAPIN IACONTENTEDITOR
In sales you simply must stand out from other salespeople, not just the ones in your industry, but ALL the salespeople that are calling on your prospects and customers, as they are also competing for their time, attention, and money. Here are several ways to be unique in sales.
1) Exceed customer expectations. Go above and beyond; under promise and over deliver. Do more than the customer expects you to do. You exceed customer expectations by delivering more, better, and/or faster. Deliver earlier than expected (assuming the customer can take delivery sooner) and deliver more than expected. If your customer tells you they need it within five weeks, deliver it in four, or sooner, if you can. If possible, include a little something extra that the customer wasn’t expecting. Focus on always delivering a little more than you are being paid for. If you make a habit of going above and beyond and delivering more than is expected, you will have happy customers.
2) Focus on your unique selling proposition. You, your company, and your product have advantages that your competition does not. What are those advantages and unique benefits? You, for one, are the one thing your competition doesn’t have. With a simple decision to do so, you can be more focused on and more committed to your customers and prospects than anyone else. Sell the unique value that you, your company, and your product have to offer.
3) Do the things that most other salespeople don’t. Send personal, hand-written thank you notes, follow-up promptly, and do what you say you’ll do, when you say you’ll do it. Send holiday gifts, ask better questions, and know the industry and how it affects your customers and prospects better than the competition does. Be a true business partner with customers and prospects.
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4) Stay in touch and build solid relationships with your customers. Obviously the better your relationships with your customers, the better customers they will be Work hard at getting customer and prospect information, and use that information to build strong relationships. Show a sincere interest in what your customers and prospects are interested in. Reach out to customers via mail, e-mail, phone, and in-person visits. Focus on building solid personal relationships with all your contacts. Email me and I’ll send out the 28 items you want to know about each customer.
5) Dare to be different.
Be unique in your approach. Here are some quick examples:
One salesman we know has a unique way to get to “tough to reach prospects”. He buys small plastic skeletons at a Halloween Store and puts them in envelopes with his business card and a note attached; the note reads, “This is me waiting for you to call.”
A woman who is the top salesperson at her company buys cheap baby shoes then attaches a business card and note, “Just trying to get my foot in the door.”
One woman sings to “difficult to reach” prospects on their voice mail.
A top salesperson for a pharmaceutical company dresses up for Halloween and brings candy.
A top computer salesperson puts helium balloon in a box with his card attached. NOTE: Make sure the ceiling isn’t too high.
Another top salesperson sends his customers six cards a year: Thanksgiving, holiday, birthday, anniversary (the anniversary date of the day the customer started doing business with him), the start of Spring, and the start of Summer.
Yes, some of these ideas are a bit out there, but they absolutely work and will definitely set you apart
6) Be more committed than everyone else. Decide that you are willing to work as hard as you need to in order to help your prospects and customers be successful. In addition to working hard, commit yourself to working smart to find creative solutions for prospects and customers. Dedicate yourself to professional and personal growth and commit yourself to your success as well as that of your customers. Be the one that comes to mind when customers think of: professionalism, work ethic, and integrity.
With the speed of business today and the vast amounts information and people all begging for our attention, you MUST greatly differentiate yourself. These six tips will help you stand out and thus garner you more time, attention, and business from prospects and customers.
AmWINS
Berkshire
Burns
Commercial
CRC Group
Gulf
Homebuilders SIF
Imperial PFS
IIABL 2023-2024
PRESIDENT, ARMOND K. SCHWING
PRESIDENT-ELECT, BRET HUGHES
SECRETARY-TREASURER, ROSS HENRY
NATIONAL DIRECTOR, JOHNNY BECKMANN, III
PAST PRESIDENT, MICHAEL SCRIBER
YOUNG AGENT REP, KRISTIN SWANSON SCOTT
Schwing Insurance Agency, Inc - New Iberia
Hughes Insurance Services, Inc - Gonzales
Henry Insurance Service, Inc. - Baton Rouge
Assured Partners - Metairie
Scriber Insurance - Ruston
Swanson & Associates - New Orleans
ANN BODKIN-SMITH
MATTHEW DEBLANC
CHRISTY DESOTO
DOMINIQUE DICARLO CROUCH
ROB W. EPPERS
MATT GRAHAM
CHRISTOPHER S. HAIK
STUART HARRIS
BEAU HEAROD
CHARLES H. LEBLANC
CRAIG MARTEL
LYDIA MCMORRIS
A. EUGENE MONTGOMERY, III
JOE KING MONTGOMERY
HARTWIG "ROBBY" MOSS, IV
ROBERT LOUIS PALMER, JR.
RANDY PERISE
ROBERT STONE
Thomson Smith & Leach Insurance Group - Lafayette
Continental Insurance Services - Marrero
1st Insurance of Marksville - Marksville
Riverlands Insurance Agency - LaPlace
Risk Services of Louisiana - Alexandria
Lincoln Agency - Ruston
Higginbotham Insurance - Lafayette
McClure, Bomar & Harris, LLC - Shreveport
Jeff Davis Insurance - Jennings
Bourg Insurance Agency, Inc - Donaldsonville
Insurance Unlimited of LA, LLC - Lake Charles
Alliant Insurance Services - Baton Rouge
Community Financial Insurance Center, LLC - Monroe
McGriff Insurance Services - Monroe
Hartwig Moss Insurance - New Orleans
Insurance Underwriters, Ltd - Metairie
Blumberg and Associates - Ponchatoula
Stone Insurance, Inc. - Metairie