Layman's Terms

Advocacy Update: Back to Work - TN Legislature Reconvenes for an Unconventional Session

Insurors Director of Government Relations, Jim Layman, J.D., breaks down the legal and legislative issues facing our industry.

The Tennessee Legislature convened the 112th General Assembly on Tuesday, January 12 under unusual and uncertain circumstances in the midst of an ongoing pandemic. One of the most important parts of the legislative process, and important functions of an Association like ours, is providing public input on pending legislation. However, the pandemic has greatly impacted the way in which lobbyists do their jobs and the access we have to impact the legislative process. Appointments to meet with legislators are strictly enforced while attendance at committees are limited and days on the hill and legislative receptions are largely prohibited. Despite these hurdles, the Legislature will continue its business of passing a budget and considering bills and we’ll be making an impact.

Leaders and Committee Structure

Sen. Randy McNally (R-Oak Ridge) was elected to his third term as Lieutenant Governor and Speaker of the Senate, while Rep. Cameron Sexton (R-Crossville) was elected to his first full term as Speaker of the House following his election as Speaker in August 2019 after the resignation of Rep. Glen Casada (R-Franklin). The Legislature also chose a new Comptroller as former state representative Jason Mumpower was selected to succeed Justin Wilson. In the Senate, Sen. Paul Bailey (RSparta) was reappointed as Chairman of the Commerce and Labor Committee, where insurance bills are considered, while Sen. Shane Reeves (R-Murfreesboro) and Sen. Ken Yager (RKingston) are new members on the Committee. Additionally, Sen. Brian Kelsey (R-Germantown) was appointed Chairman of the Education Committee, while Sen. Richard Briggs (RKnoxville) was appointed Chairman of the State & Local Government Committee.

In the House, Speaker Sexton restructured committees from the format Casada had installed. The main committees of consequence for insurance bills will be the Insurance Committee, chaired by Rep. Sabi “Doc” Kumar (R-Springfield), and the Commerce Committee, chaired by Rep. Kevin Vaughan (R-Collierville). The Insurance Subcommittee is chaired by Rep. David Hawk (R-Greeneville) while the Banking and Consumer Affairs Subcommittee is chaired by Insurors member Rep. Dennis Powers (R-Jacksboro) and the Business & Utilities Subcommittee, where workers’ comp bills will likely be heard, is chaired by State Farm agent Rep. Clark Boyd (R-Lebanon). Other Insurors members received the following appointments: Rep. Michael Curcio (R-Dickson) – Chair of Criminal Justice Committee, Rep. Ron Gant (R-Rossville) – Assistant Majority Leader and Finance Committee, Rep. Kelly Keisling (R-Byrdstown) – Chair of State Government Committee, Sen. Mark Pody (R-Lebanon) – Vice-Chair of Transportation, Rep. Bo Mitchell (D-Nashville) – Insurance Committee, and our CEO, Rep. Ron Travis, was appointed to the Agriculture and Naming & Designating Committees.

The partisan makeup of the chambers remains largely unchanged from the last general assembly as the Democrats pick up one seat in the Senate and there was no change in the House. The Republicans hold a 27-6 advantage in the Senate and 73-26 advantage in the House.

Issues to Watch

Here are just a few of the issues we expect to work on this year:

Cybersecurity

A couple of years ago, the National Association of Insurance Commissioners (NAIC) adopted a model data security law that imposes certain data security program requirements and notification requirements on both insurance companies and agencies, and 11 states have already passed a version of this model. The Tennessee Department of Commerce and Insurance (TDCI) is advocating for a similar proposal here. Members of the Big "I" government affairs staff worked on this model law heavily when it was being considered by the NAIC. Thanks in part to those efforts, the program requirements are pretty general and flexible in nature, and the notification requirements are to TDCI only; however, we will be working with the Department and legislators on continuing to improve the proposal.

Best Interest Standard for Annuities

Another NAIC model policy, this regulation which several states have adopted and several others are currently considering, would require agents to meet certain criteria and requirements before selling annuities as well as act in the best

interest of their client when doing so. A concerning part of this legislation is the vague and unknown standard of care that is required to meet this “best interest” among others. Additionally, this is being proposed through a rule promulgated by TDCI rather than a bill approved by the Legislature.

Workers' Compensation

We are expecting and working on several important topics related to workers' comp, including efforts to reduce coverage fraud that revolve around the construction services provider exemption registry and greater subpoena power for the Bureau of Workers’ Compensation. We also expect to see legislation related to legal presumptions surrounding COVID-19 related injuries in regards to work comp.

InsurPACTN Shatters Fundraising Record!

Despite the limitations of COVID-19, InsurPACTN had another record-breaking year. In 2020, we raised $85,634!! Over the last few years, we’ve raised:

2020 - $85,634

2019 - $69,630 2018 - $50,334 2017 - $39,195

Many thanks to our government affairs committee, executive committee, Board of Directors, and all PAC contributors for helping us accomplish this achievement. We’ve had some great growth in the PAC the last few years, and for 2021 we have set an ambitious goal of $100,000! Please contribute today to help amplify the independent agent’s voice in the legislative process.

About the Author

Jim Layman, J.D. is the Director of Government Relations for Insurors. He previously worked for the Tennessee Dept. of Mental Health and Substance Abuse Services as legislative liaison and rules coordinator. Prior to that, he worked for the Dept. of Health as a legislative liaison and the Dept. of Labor and Workforce Development as director of unemployment insurance appeals. Jim graduated from the University of Memphis Cecil C. Humphreys School of Law and received his undergraduate degree from the University of Tennessee. He may be contacted at jlayman@insurors.org. u

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Association Update

Higginbotham Adding Lipscomb & Pitts

Higginbotham, one of the largest independent insurance firms in the U.S., and Lipscomb & Pitts Insurance, one of the largest independent insurance firms in Tennessee, have combined operations. Both firms provide full-scale commercial and personal insurance, employee benefits, human resources, retirement plans, life and executive compensation services.

Higginbotham is strategically growing by partnering with independent insurance firms that complement its service model and add scale to its operation, which now spans seven states. With 134 employees in Memphis, Nashville, and Chattanooga; Jonesboro, AR; and Hattiesburg, MS; Lipscomb & Pitts Insurance is among the largest independent brokers in the Southeast and has the leadership and capabilities in place to grow the firm even further.

Lipscomb & Pitts Insurance will retain its name and remain in the Lipscomb & Pitts building, Johnny Pitts and Mat Lipscomb will remain in their leadership roles as Co-CEOs and also become Managing Directors for the Southeast Region with Higginbotham.

Reliance Names Shelton VP of Nat. Accounts

Chattanooga-based Reliance Partners has named Missi Shelton to Vice President of Customer Service, National Accounts. Shelton will lead Reliance’s National Accounts customer service division, focusing on the agency's largest transportation and logistics clients. She will drive Reliance’s mission forward, ensuring that Reliance Partners' clients receive the "extra mile" experience every day.

Shelton joined Reliance Partners' Customer Service team in 2016, bringing with her more than 17 years of insurance experience. Prior to Reliance, Missi spent the majority of her career in sales and customer service in the commercial insurance industry.

V.R. Williams Partners with Patriot Growth

Winchester-based V.R. Williams & Company, LLC has announced that Patriot Growth Insurance Services, LLC – one of the country’s largest and fastest-growing national insurance agencies – has partnered with them in Tennessee. The partnership with V.R. Williams bolsters Patriot’s existing property & casualty insurance and employee benefits capabilities and further supports the platform’s geographic expansion in the Southeast. V.R. Williams is a full-service insurance agency that provides various P&C and employee benefits products, including automobile, homeowners, business, life and health coverages.

In addition, the firm has developed a rapidly expanding national pilot car insurance program. V.R. Williams stays ahead of industry trends by listening to the customer and continually expanding its diversified portfolio of products. Agency president and Insurors Past President, Joe Hunt Jr., leads an experienced team of insurance professionals with a deep understanding of their clients’ personal and professional insurance needs.

Mayberry Earns AFIS Designation

Wendy Mayberry, an account manager with Swallows Insurance Agency in Cookeville, has earned her Agribusiness and Farm Insurance Specialist (AFIS) certification. She becomes one of only six agents in Tennessee to have earned this specialty designation, which is presented by the International Risk Management Institute.

Cutchin Named as a 2020 "Agent of the Year"

In their recent report on the success of individual independent agents, Insurance Journal named Brett Cutchin of Lipscomb & Pitts Insurance in Memphis as an "Agent of the Year" for 2020. Cutchin graduated from Florida State University with a degree in risk management and insurance. While at FSU, he was president of the insurance society and also won the George Nordhaus scholarship. He began working at Lipscomb & Pitts in January 1994. Cutchin is currently the agency’s commercial lines president, as well as its largest producer.

TIS Ins. Services Adds Nelson and Starkey

Knoxville-based TIS Insurance Services, Inc. has announced the additions of Spencer Nelson and Brad Starkey to its talented team of insurance specialists. Nelson is a business insurance consultant in the general commercial division, and Starkey is a client executive in the employee benefits division.

Most recently with Anderson Insurance Associates, Nelson also worked for Liberty Mutual before joining TIS. He relocated to Knoxville from South Carolina to focus on business development. Nelson is a graduate of the University of Tennessee in Knoxville.