Government & Legal Update

Advocacy Update: Legislature Considers Important Insurance Bills; Big I Legislative Conf.

At the time of this writing, the Legislature is at the peak of its work for the year as Committees begin to announce final calendars and the Legislature prepares to consider the state budget in anticipation of a late April to early May adjournment for the year. This has been another successful, albeit unconventional, year for the Insurors of Tennessee advocacy efforts. While we have not had many pieces of legislation that we have advocated in favor of, there have been some positive measures that we have worked on, as well as a few that we have been actively defending against or working to improve. Please take a look at some of the more recent issues we have worked on:

Assignment of Benefits

This bill, SB1376/HB0523 by Sen. Mike Bell (R-Riceville) and Rep. Ron Gant (R-Rossville) clarifies in the law that the rights, duties, or benefits provided by a policy of insurance may be assigned only as expressly provided by the terms of the policy of insurance or as otherwise expressly allowed by the insurer. This bill is meant to deter unscrupulous cost increasing practices that the industry has seen in other states. The bill passed unanimously on the consent calendar in both the House and Senate. The bill was brought to the sponsors by the Farm Bureau, but Insurors also supported the bill and worked hard to push it over the goal line.

Data Sharing Practices

Rep. Johnny Garrett (R-Goodlettsville) and Sen. Mike Bell are behind an effort to place more regulations on the ability of companies to track, buy, and sell the personal information and data of consumers. HB1467/SB1554 is primarily aimed at social media and search engine companies and seeks to ensure that consumers can control the use of their data by requiring these companies to first gain consent. Insurors can certainly understand the concern with the ways data has been tracked and used in recent years, but we are working to ensure that this legislation does not interfere with independent agents and their businesses.

Cybersecurity

Data and cybersecurity are hot topics this year, and this is further evidenced by SB0725/HB0766. This is an administration bill brought to the sponsors by the Department of Commerce and Insurance. The bill would make Tennessee the 12th state to adopt the National Association of Insurance Commissioners’ (NAIC) model law regarding data security requirements for insurance carriers and agents. The bill’s requirements are very general in nature and include performing a risk assessment, having a security program in place, and requirements for responding to a breach.

We want to commend the Department and the bill sponsors for working with us on several concerns and requests we had for the legislation including the application of the bill, which will only apply to agencies who have 25 or more employees, have more than $5 million in annual revenue, or who have more than $10 million in year-end assets.

HB0510/SB0899 by Rep. Clark Boyd (R-Lebanon) and Sen. John Stevens (R-Huntingdon) brings back the concept of the “regulatory sandbox” which Insurors worked on last year with the Department of Commerce and Insurance who was interested in the idea. This year the legislation is supported by the Beacon Center of Tennessee, a non-profit, free market think tank. The bill would set up a regulatory sandbox program within the Department of Commerce and Insurance that allows licensees under the Department’s jurisdiction to “pilot test innovations” by being granted a waiver of requested laws or regulations. Insurors has shared a number of concerns with the bill sponsors and is working on a positive outcome for agents for this bill.

The Big I Legislative Conference is set for April 13-16, and registration is free, so please sign up! We will be having an additional group session with state legislative leadership that week, as well as a group session with our two U.S. Senators. We’ll be inviting members to virtual meeting with members of Congress, but we hope you will also make efforts to reach out to your Congressmen or state legislators to share with them areas of interest to your business. You can find contact information for your Congressman or state legislator by visiting https://wapp.capitol.tn.gov/Apps/fmlv3/districts.aspx and register for the Legislative Conference at https://www.independentagent.com/Events/LegislativeConference/home. aspx

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Association Update

Zander Insurance Donates $60K to Relief

Zander Insurance, based in Nashville and one of the country's largest independent insurance agencies, is supporting the disaster relief efforts of Team Rubicon with a $60,000 donation.

Most recently, Team Rubicon, a veteran-founded disaster response organization, was on the ground in Texas providing food and water to families without power for more than a week. The organization also provided aid and assistance in Nashville when the deadly tornadoes swept through on March 3, 2020.

In December, Zander held a campaign to give back a portion of its ID theft protection sales to Team Rubicon to recognize Identity Theft Prevention and Awareness month. This donation marks the eighth year that Zander raised funds to support a nonprofit in December.

McCarter Joins John Bailey Company

Knoxville-based John Bailey Company has announced the addition of Brian McCarter as the newest member of their team. McCarter has extensive experience in commercial insurance and bonds, and will now serve as an account executive for the agency. He previously worked for over a decade at other large agencies in the Knoxville market.

Assurant Acquires EPG Insurance, Inc.

Assurant, Inc. a leading global provider of lifestyle and housing solutions that support, protect and connect major consumer purchases, has announced the acquisition of Memphisbased EPG Insurance, Inc. (EPG) for $43 million in cash. EPG is a leading provider of service contracts and insurance sold through heavy equipment dealers and manufacturers.

Along with CEO Dale Hendrix and President Gregg Morgan, the EPG team of approximately 60 employees will join Assurant, and the business will continue to operate as a separate heavy equipment channel within the company.

Hutsenpiller Ins. Named Best of Mt. Juliet

Hutsenpiller Insurance was recently named "Best Insurance" in the 2021 "Best of Mt. Juliet" awards as presented by The Chronicle of Mt. Juliet and based on a poll of the publication's readers.

Southern Trust Names Clay & Land Agency of the Year for 2020

Southern Trust Insurance has named Clay & Land Insurance, Inc. as its 2020 Agency of the Year Award winner. The Memphisbased agency won the award after experiencing the most rapid growth for the year as well as finishing with an excellent loss ratio.

Swallows Adds Cardoza as Account Exec.

Cookeville-based Swallows Insurance has announced that Jerred Cardoza joined the agency as an account executive. Cardoza and his family recently moved to Tennessee from Lemoore, California. He is a graduate of California State University, Fresno.

Cardoza earned his P&C insurance license in 2016 and has enjoyed working in the insurance industry. Life and health insurance was his first focus, but he gradually made farm, agriculture and agribusiness insurance his specialty. Cardoza recently obtained his AFIS certification (Agribusiness and Farm Insurance Specialist). He is one of seven in the entire state of Tennessee with this designation.

Reliance Partners Acquires Borderless Coverage

Reliance Partners, an insurance agency focused solely upon the commercial transportation and logistics industries, today announces the acquisition of Borderless Coverage, an Ohiobased agency specializing in North American Cross Border Supply Chain & Insurance. Between 2015 and 2020 Reliance Partner’s transportation and logistics book expanded from approximately $15 million in premiums to $200 million, primarily through organic growth, and today’s Borderless acquisition expands Reliance’s solutions.

Borderless Coverage brings the expertise for international organizations to safely and profitably conduct cross border business in North America, and offers Cross Border Business Consulting as well as Transportation & Logistics Insurance.

Borderless CEO Mark Vickers will also join Reliance Partners as Executive Vice President and Head of International Logistics. Vickers brings more than 12 years of cross border trade experience to the Reliance Team. u