The Insurors of Tennessee Bulletin 1314

bulletin YOUR ASSOCIATION NEWSLETTER

volume 13-14

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friday

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july 26, 2013

All Employers Must Provide Notice of ACA Every employer, including each Insuror member agency, must provide a written notice to all employees with information on the following:

Trusted Choice Agents Help Preserve History The Trusted Choice agents of Insurors of By building a statewide community of Tennessee can now say that they played preservationists and collaborating orgaa part in preserving the Civil War battlenizations and agencies, TCWPA can effields of our great state. To commemofectively develop strategies and execute 120 rate the 150th anniversary of the plans to protect and interpret our Civil War (2011-2015), your Asstate’s sites. sociation partnered with our national Trusted Choice brand and TCWPA fosters research to lothe Tennessee Civil War Presercate sites and provides education ONLY vation Association (TCWPA) to programs and tours for its memsponsor the official State Sesbers and the public. TCWPA quicentennial License Plate. recognizes outstanding leaders in battlefield preservation. ProThe plate needed 1,000 orders to ceeds from the license plate will DAYS LEFT be approved for production, and support Civil War Battlefield that quota was met earlier this year. Now Preservation in Tennessee and the Civil the plate design has been finalized and War Trails program. production is about to begin.

You can explore Tennessee’s Civil War Tennessee is rich in Civil War history, history through an interactive web-based with more than 1,462 battles, at least one map at http://tnmap.tn.gov/civilwar/ fought in each of our 95 counties, that brought destruction to the landscape.

If you are interested in ordering a plate, The TWCPA is a statewide organizasend your name and e-mail address to tion that identifies and recognizes Teninfo@tcwpa.org and they will contact nessee’s most important battlefield sites you when plates are available at the variand raises funds for their protection. continued on page 2 th

annual convention

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Insurors of Tennessee Web: www.insurors.org Ph: 615.385.1898 or 800.264.1898 Fx: 615.385.9303 E-mail: info@insurors.org

1. The existence of the Federally Facilitated Marketplace (FFM) and contact information for assistance, 2. The potential availability of premium subsidies through the FFM, and 3. That if the employee purchases health insurance through an exchange, they will lose any employer contribution and that all or a portion of any contribution may be excludable from income for tax purposes.

Some additional information: •

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The Notice must be provided to all existing employees (full and parttime) on or before October 1, 2013, and must be given to new hires within 14 days of their start date.

The notice must be given regardless of plan enrollment status or of parttime or full-time status.

The notice must be provided in writing in a manner calculated to be understood by the average employee. It may be provided by first-class mail. Alternatively, it may be provided electronically if the requirements of the Department of Labor’s electronic disclosure safe harbor at 29 CFR 2520.104b-1(c) are met. continued on page 4

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© 2013 Insurors of Tennessee. All rights reserved. For Members Only.

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Bulletin Vol. 13-14

Trusted Choice Agents Help Preserve History continued from page 1

ous County Clerks’ offices. You can also visit http://www.tcwpa.org for more information on the plate or the battlefield preservation.

Answers on Additional Insured Endorsements Often members have questions regarding Blanket Additional Insured endorsement. Typically a General Contractor will request that everyone working on the job site be named as Additional Insureds, a request that Insurers are usually not willing to accommodate. So what do you do?

A quick consultation with Bill Wilson and the Virtual University leads to the following answer: Be careful when dealing with the ISO CG 20 33 Blanket AI endorsement. There is case law that says that anyone listed as an AI who does not have a direct contract with the Named Insured does not have AI status. Usually the construction Contract is between the Named Insured contractor and the project owner, thereby excluding AI coverage for the architect, construction manager and subcontractors.

View a VU article that outlines the problem at http://www.independentagent.com/Education/VU/Insurance/ Commercial-Lines/CGL/Additional-Insureds/FacultyBlanketAIUhOh.aspx In 2013 ISO made significant revisions to the AI endorsements in response to concerns raised by IIABA. Specifically, ISO introduced a new blanket additional insured endorsement, CG 20 38 “Additional Insured – Owners, Lessees or Contractors – Automatic Status For Other Parties When Required In Written Construction Agreement.”

This new endorsement attempts to solve the problem of a lack of privity of con-

July 26, 2013 tract by adding the following category of additional insureds: Any other person or organization you are required to add as an additional insured under the contract or agreement described in Paragraph 1 above.

View the endorsement at http://www. insurors.org/Content/NavigationMenu/ PDF12/CG_20_38.pdf In another article by VU, the authors review the new endorsement and identify some areas of concern regarding the CG 20 38. View it at http://www.independentagent.com/Education/VU/Insurance/Commercial-Lines/CGL/Additional-Insureds/2013AIChanges.aspx Finally, consider the CG 20 26 in this situation. The CG 20 26 allows a contractor to name the individual AIs and coverage is not connected to a written contractual relationship nor privity in performing operations for those parties.

This appears to be the best solution to the problem. View the endorsement at http://www.insurors.org/Content/NavigationMenu/PDF12/CG_20_26.pdf

WestportReleasesACA E&O Implications Info Westport Insurance Co. has recently weighed in on the ACA and its effect on policyholders. In two recent memos the E&O carrier has addressed issues to consider in business, as well as, how will the policy respond on a claim under ACA. In the first memo titled “Affordable Care Act – For Insurance Agents, Procrastination is NOT an Option,” the company poses some questions that Agents must be ready to answer if they are going to sell insurance on the Federally Facilitated Marketplace. The memo notes that an Agent’s exposure to negligence claims will increase tremendously if the Agent does not have the specialized knowledge and expertise required to assist Employers in becoming compliant with the health care regulations. Additionally, the memo provides links to info on the ACA and tax issues that might arise. Read the memo at

© 2013 Insurors of Tennessee. All rights reserved. For Members Only.

http://www.insurors.org/Content/NavigationMenu/PDF12/070113ACA.pdf The second Notice is for policyholders and generally states that Westport will provide coverage for damages caused by negligent acts of an insured while rendering Professional Services. These services would include coverage for the sale of accident and health insurance, stop-loss coverage, and for insurance consulting.

Read the memo at http://www.insurors. org/Content/NavigationMenu/PDF12/ Westport3302336.pdf We expect info to begin being released

by HHS quickly over the next few weeks in preparation for the October 1 release date. As more info becomes available we will notify our members promptly.

Labor Department Will Conduct WC Seminars The Tennessee Department of Labor and Workforce Development is holding a series of 14 seminars across the state to explain the Workers’ Compensation Reform Act of 2013.

The new law removes injured workers’ claims from state trial courts and instead creates a special panel of judges appointed by the governor to hear claims and appeals. It also increases the number of weeks for disability benefits from 400 to 450.

The 14 seminars are being put on by the Workers’ Compensation Division, the Tennessee Occupational Safety and Health Administration and the Tennessee Chamber of Commerce.

The groups said the seminars are designed to educate employers about the the bill including ways to avoid workplace injuries and how to handle them if they occur.

They began on July 25th and run through August 29th. Specific dates, info and locations can be found on the Department website at http://www.tn.gov/labor-wfd/ wc_seminars2013.pdf Page 2 of 4

Bulletin Vol. 13-14

July 26, 2013

The Agents & Brokers Education Network (ABEN) is a joint project of state insurance and brokers associations who want to provide high quality continuing education for independent insurance agents, brought to you online via live streaming video.

UPCOMING COURSES Professional Ethics in the Insurance Industry

THURSDAY 8/1 2 pm EST

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TUESDAY 8/6 1 pm EST

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National Flood Insurance Program: Basic Course

WEDNESDAY 8/7 10am EST

2 CE

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E&O Risk Management-An E&O Claim - 360 View -TN

THURSDAY 8/8 10 am EST

2 CE

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E&O Risk Management: Meeting the Challenge of Change presents E&O Considerations WEDNESDAY 8/14 9 am EST of Agency Operations

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Data Privacy Insurance

FRIDAY 8/16 2:30 pm EST

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Hot Topics in Personal Lines

TUESDAY 8/20 2 pm EST

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National Flood Insurance Program: Basic Course

WEDNESDAY 8/21 10am EST

3 CE

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Commercial Property Endorsements That Can Make You Money!

THURSDAY 8/22 2 pm EST

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E&O Risk Management: Meeting the Challenge of Change presents Understanding Agent Duties

REGISTER NOW OR GET MORE INFORMATION FOR THESE COURSES AT INSURORS.ABEN.TV

120th ANNUAL CONVENTION • OCTOBER 18-22, 2013 1 2 0 th annual convention

space is limited, register now or visit www.insurors.org! © 2013 Insurors of Tennessee. All rights reserved. For Members Only.

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Bulletin Vol. 13-14

All Employers Must Provide Notice of ACA continued from page 1

Fortunately, the Department of Labor has published draft model notices, which can be used by employers as written. The model notices may be found at: http:// www.dol.gov/ebsa/healthreform/index. html or through the links below: Notice to Employees of Coverage Options •

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Technical Release 2013-02 - Guidance on the notice under FLSA §18B and COBRA: http://www.dol. gov/ebsa/newsroom/tr13-02.html Model Notice for employers who offer a health plan to some or all employees: http://www.dol.gov/ebsa/ pdf/FLSAwithplans.pdf Model Notice for employers who do not offer a health plan: http://www. dol.gov/ebsa/pdf/FLSAwithoutplans.pdf COBRA Model Election Notice: http://www.dol.gov/ebsa/modelelectionnotice.doc

Register Your Agency For ACA Referral Listing Insurors of Tennessee has been asked to participate along with NAHU and NAIFA in a Health Insurance Referral project. This is a purely voluntary referral project available to Members Only.

If you, or anyone in your agency, intend to become certified and plan to sell on the Exchange or Marketplace in Tennessee, please sign up as soon as possible.

We will transmit your name, agency, email, phone number, address and county to the group.

If you would like to participate, please register online at http://www.insurors. org/source/Meetings/cMeetingFunctionDetail.cfm?section=PDS&product_ major=ACA713&functionstartdisplayro w=1

July 26, 2013

Make-A-WishFacebook Campaign Begins Aug 1

Two More Insurors Will Enter Ins. Hall of Fame

The Trusted Choice® campaign to raise money for Make-A-Wish while promoting the independent insurance agency brand with consumers will kick off on August 1st.

Two more Insurors are set to be inducted as part of the 2013 class of the Robert E. Musto Tennessee Insurance Hall of Fame at MTSU. Former President Eldon B. “Jack” Thoma, II, and current CEO Charles T. “Chuck” Bidek, CPCU, will be introduced as the Hall’s newest members at a ceremony on Thursday, August 1st at 5:30 pm CST.

With each “share” from the Trusted Choice Facebook page throughout the month, Trusted Choice will donate $10 to Make-A-Wish. Trusted Choice is committed to donating a minimum of $100,000 and a maximum of $150,000 with this campaign.

All of the content posted by Trusted Choice throughout the month on the page can be shared and counted toward the campaign. Examples of Facebook content include photos from local events where Trusted Choice has supported Make-A-Wish, Trusted Choice consumer content and coverage of the Trusted Choice chopper at the well-known Sturgis Motorcycle Rally in South Dakota.

Agents can help support the campaign by sharing the content from the Trusted Choice Facebook page on their own Facebook pages and encouraging members to do the same. By clicking “share” on one of Trusted Choice’s posts, the content will become visible to your own friends and followers.

The official hashtag for the campaign is #TrustedChoiceShare. Tweet the link to the Trusted Choice Facebook page at http://www.facebook.com/trustedchoice and include #TrustedChoiceShare at the end.n For more info, review the campaign guide for agents and brokers at http://www.iamagazine.com/ Media/NewsViews/2013/July_25/trusted-choice-facebook-campaign-to-begin-august-1/TC-MAW-August-ShareCampaign-Guide%202013.pdf In 2012, the campaign reached 3.9 million unique consumers per week at its peak and raised $150,000 overall for Make-A-Wish.

© 2013 Insurors of Tennessee. All rights reserved. For Members Only.

The induction will take place at the Embassy Suites in Murfreesboro. If you are interested in attending please contact Ashley Arnold at aarnold@insurors.org or call 615.515.2606 by Tuesday, 7/30.

In Memoriam - Hank JohnsonofMadisonville Insurors member, Henry A. “Hank” Johnson, passed away on Wednesday, July 24th at the age of 82. He founded Johnson Insurance Agency in Madisonville in 1963 and was active in the industry for many years, even working up until the day before his passing. His son, J. Alan Johnson, continues his legacy at the agency.

Visitation will take place from 10 - 11:45 am EST on Saturday, July 27th at Biereley-Hale Chapel, 4650 Hwy 411 By-Pass, Madisonville. Funeral services will follow. In lieu of flowers, memorials may be made to the First Baptist Church of Madisonville, American Heart Association or Tri County Center.

Project CAP Will Host Marketing Webinar 7/31 On Wednesday, July 31st at 1 pm CST, Project CAP will host a webinar on how insurance agencies can implement a content marketing strategy into their overall business plan, and use it to grow their reputation in the communities they serve. Register for the webinar today at http://bit.ly/12HTLjm Page 4 of 4