Delaware Primary Agent - November 2019

NOVEMBER 2019 | DELAWARE

SHAYNE MCINTOSH

FROM COMPUTER SCIENCE MAJOR TO INDEPENDENT AGENT

Exclusive Member Magazine

MEDICAL MARIJUANA AT WORK NEW IA&B SCHOLARSHIPS

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grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2019.

IN THIS

14 ON THE COVER: Q&A WITH SHAYNE MCINTOSH IA&B scholarship recipient Shayne McIntosh talks industry recruitment, social media marketing, and more.

16 MEDICAL MARIJUANA AT WORK

Our contracted HR consultant weighs in on addressing impairment, drug testing prospective hires, and more.

23 IA&B EXPANDS SCHOLARSHIP PROGRAM

Learn what’s ahead for IA&B’s insurance education scholarship program – and how your agency can benefit.

IN EVERY ISSUE 2 3 4 8 12 13 24 26 29 29

Chair of the Board’s Message Claire-ification Preventing Errors & Omissions Coverage Corner News & Notes New Members Pics & Posts Technology Update Education Classified Ads

JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B

MEDICAL MARIJUANA AT WORK

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About IA&B IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware.

Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices.

Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2019-11, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2019. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

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CHAIR OF THE BOARD’S MESSAGE

BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

EDUCATION SURVEY: YOUR RESPONSES, OUR COMMITMENT

OFFICERS

Chair of the Board

Craig S. Mader Crofton, MD

Vice Chair of the Board

T

Richard M. Rankin, CIC

hank you to the 1,547 of you who participated in our Education Program Survey. This data provides your association with valuable and meaningful information regarding IA&B’s professional training and education offerings, as well as your utilization of them.

The response rate was really impressive and the feedback thoughtful. We took note of why you choose IA&B for your agency’s education, and also why you don’t.

We looked at which professional training opportunities you count on IA&B to deliver, and also which are not necessary. The bottom line is that the data allowed the Board and staff to take a deep dive into learning about you.

We thank you for your agency’s utilization of the education programs. That is not taken lightly. We pledge to remain committed to high-quality programs, and we trust you appreciate the IA&B Education and Events Department’s role in your member benefits and role in your growth, compliance, and E&O risk management.

As a volunteer director and now as chair of the IA&B Service Group Board of Directors, I have observed IA&B’s efforts to build and provide the highest quality CE and professional training programs. If you are not utilizing them strictly due to cost, in my opinion, your agency is accepting mediocrity. But costs are on our radar as something to address.

MEMBERS

Sarah M. Brown, CIC, CRM, AFIS Shrewsbury, PA

Emory Stephen Burnett, CIC, ARM Wilmington, DE

Andrew Enders, Esq. Harrisburg, PA

Michael P. Ertel Sr.+ Columbia, MD

Len Gieseler, LUTCF Pottstown, PA

G. Greg Gunn, CIC* Lemoyne, PA

Bryan C. Hanes, JD Hagerstown, MD

Lisa A. Leach Goth, CIC New Bethlehem, PA

Shannon Lipniskis Indiana, PA

Elizabeth H. Martin, CIC Millersville, PA

Mark J. Monroe

West Chester, PA

As we move into 2020, watch for IA&B to develop further its breadth of online CE courses, to continue introducing its new crop of instructors (including new IA&B Education Consultant Kevin Amrhein, CIC), and to expand its insurance scholarship program (see page 23 for information).

Michael A. Papa, CIC, MBA

Finally, please join me in congratulating the IA&B Education and Events Department for receiving two 2019 Excellence in Insurance Education Diamond Awards for the third straight year!

Robert L. Smyrl Jr., CIC

Respectfully,

Hunt Valley, MD

D. Bradley Rosenkilde Jr. Hunt Valley, MD

Tara S. Silfies, CPCU Bethlehem, PA Hatfield, PA

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** Newark, DE

J. Marshall Wolff, CIC, CPCU Easton, PA

* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director

Craig Mader Chair of the Board

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Lancaster, PA

NOVEMBER 2019

Don’s Discussion Claire-ification IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR provided this month’s answer.

Are you a member with a question? Contact Claire to find the answer at 800-998-9644, ext. 604 or ClaireP@IABforME.com.

QUESTION: We followed a customer to New York and secured a license there. Will the state’s cyber requirement affect us if we only have this one customer?

ANSWER: Yes, it will. While the extent of the impact won’t be the same, you still will be impacted.

• Establish policies and procedures for the periodic disposal of nonpublic information;

requirements imposed by the carrier, and consider what these provisions mean to you as an agent, such as:

The New York cybersecurity rule applies to resident and non-resident licensees.

The regulation’s gist is to require agencies to assess their specific cybersecurity risk and to design and implement a program that proactively combats the identified threats, and to monitor intrusions and report data breaches.

• Notify the NY Insurance Superintendent of a “cybersecurity event” within 72 hours;

• D oes the agency agreement add another layer of contractual requirements on top of the legal or regulatory requirement?

Assuming you have 1) fewer than 10 employees, or 2) less than $5 million in gross annual revenue from New York operations (in the last three years), or 3) less than $10 million in year-end total assets, you will be excused from some of the requirements, but not all. That means you would only have to:

• F ile a “Notice of Exemption” with the DFS.

• Establish and implement a cybersecurity program; • Establish and implement a written cybersecurity policy; • Limit and periodically review access privileges; • Conduct periodic risk assessments; • Implement written policies and procedures to ensure the security of information accessible to third-party service providers;

• F ile a certificate of compliance with the New York State Department of Financial Services (DFS) by Feb. 15 of every year; and

Even if you qualify for the exemption, there is a lot to do. If you do not qualify, even more requirements apply, including conducting annual penetration testing, establishing audit trails, providing specific training to staff, etc.

The good news: You can access our resources to facilitate compliance at IABforME.com/resource_center/ NY_cyber. The not-so-good news is that many states are adopting cybersecurity laws and regulations, so none of this is going away. While these new state laws vary a bit, so far they are built around the same framework. Pay attention to stay compliant. Also, check your agency agreements for any language regarding compliance and/or cybersecurity policy

• A re the requirements compatible with your current operations, or are changes needed?

• Does the agency agreement require you to carry a cyber policy in addition to E&O? (If so, contact IA&B Insurance Placement Specialist David Wertz, CPIA, at 800-998-9644, ext. 506 or DavidW@IABforME.com for a quote.)

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice.

Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

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PREVENTING ERRORS & OMISSIONS

THE IMPORTANCE OF INSURANCE COVERAGE CHECKLISTS

By James C. Keidel, Esq.

O

ne of the best E&O loss control practices for insurance agencies and brokerages to follow is the use of coverage checklists. This simple but highly effective E&O losscontrol practice is one that any size or type of agency or brokerage can easily implement and follow. In this article we will discuss how insurance coverage checklists should be used and the many benefits that they provide when they are used on a regular basis.

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AGENCY DEFENSE The primary benefit of using insurance coverage checklists is that they help protect an agency or brokerage from E&O claims and lawsuits being made by customers on the basis that various coverages were not offered to them. An insurance coverage checklist can prove to be a valuable piece of documentation if an insurance agency or brokerage is forced to defend itself against a claim made by a customer that it failed to obtain a particular type of insurance coverage to cover a loss.

NOVEMBER 2019

In fact, many professional liability insurers specifically ask on their applications whether the insurance agency or brokerage to be insured under the policy regularly uses insurance coverage checklists. This question is asked because the E&O insurers are aware that coverage checklists can be instrumental in defeating an E&O claim based upon allegations of failure to procure coverage. For this reason alone, every insurance agency or brokerage should implement a procedure pursuant to which insurance coverage

... insurance coverage checklists can help provide better customer service to all customers.

— James C. Keidel, Esq.

checklists are used consistently by all employees when they are reviewing possible coverages with customers and potential customers.

CONSISTENT COMMUNICATION Another benefit of using insurance coverage checklists is that they help ensure that consistent information is being provided to customers no matter which employee, or which office location, of the agency or brokerage they are dealing with.

When used consistently throughout an agency or brokerage, insurance coverage checklists can help provide better customer service to all customers.

CROSS-SELLING OPPORTUNITIES An additional benefit of using E&O coverage checklists is that quite often they will have the customer think about coverages or exposures that they had not originally contemplated. When this occurs, customers will often purchase insurance for risks or exposures that they had not planned on insuring, which then helps the agency or brokerage sell more insurance. This factor not only helps protect the customer by providing insurance for something that they did not originally consider insuring, but it also helps increase the sales of the insurance agency or brokerage.

SAMPLE CHECKLISTS Sample insurance coverage checklists are available for insurance agencies and brokerages from many sources….

However, as each agency or brokerage has its own unique type of business and areas of specialty, there is no one form checklist that fits the needs of every agency or brokerage. An agency or brokerage that seeks to implement the use of insurance coverage checklists should carefully review the various forms that are available and then modify the forms to fit within the parameters of how that particular agency or brokerage operates and the types of customers that it has.

One important question that every insurance coverage checklists should have is a catch-all question at the end asking the customer whether they have any other insurance or risk that they would like to discuss other than what was reviewed with the agency or brokerage on the checklist above. This question puts the burden on the customer to affirmatively request information concerning anything that was not reviewed with the agency or brokerage.

SAMPLE CHECKLISTS Access comprehensive coverage checklists, through Rough Notes Advantage Plus. The program helps producers and CSRs to: • Improve their knowledge of clients’ exposures • Better understand the products they sell, and • Properly document customers’ files.

IA&B members receive a discount on the annual subscription through our affiliation with the Big “I”.

Contact us to learn more.

Claire Pantaloni, CIC IA&B Vice President Advocacy ClaireP@IABforME.com 800-998-9644, ext. 604 IABforME.com/Rough_Notes_ Advantage_Plus

ADDITIONAL GUIDANCE Coverage checklists should be used when discussing insurance coverages with both insureds and potential insureds either on continued on page 6

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PREVENTING ERRORS & OMISSIONS

the telephone or in face-to-face meetings. If the coverage checklist is reviewed in person with a customer, a good practice is to have the customer complete and sign the form to acknowledge that the coverages were reviewed. Once the coverage checklist is completed and signed, the agency or brokerage should save the checklist in the customer's file. If a checklist is reviewed instead with a customer over the telephone, notes of that discussion can either be made on the checklist form or in the agency management system.

When insurance coverage checklists are used by an agency or brokerage, one of the most important things to require

is that they are used consistently by all employees on a regular basis.

For all of the reasons discussed above, the prudent insurance agency or brokerage should make certain that all employees consistently use insurance coverage checklists when discussing coverages with customers and potential customers.

In our experience, insurance coverage checklists are one of the best E&O loss control practices to follow because they not only provide E&O protection for the agency or brokerage, but they also help a customer identify risks and exposures that they may not have originally contemplated, which in turn will help sell more insurance.

CYBER ATTACK NOT IF... WHEN

Provided by the partners of Keidel, Weldon & Cunningham, LLP, which concentrates its practice in the defense of insurance agents’ and brokers’ errors and omissions claims and litigation, errors and omissions loss control counsel and education, insurance coverage analysis and litigation, and insurance regulatory matters. Please direct any comments or questions to James C. Keidel, Esq. at jkeidel@kwcllp.com.

The law firm also maintains offices in Syracuse, New York; New York City, New York; Wilton, Connecticut; Fair Lawn, New Jersey; Warwick, Rhode Island, Philadelphia, Pennsylvania, Williston, Vermont and Naples, Florida. © 2019 Big I New York and Keidel, Weldon & Cunningham, LLP. Reprinted with permission.

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COVERAGE CORNER

PERVASIVENESS OF PETS: THE STORY OF AN INSURANCE SLOG AND A HAPPY DOG

By Kevin C. Amrhein, CIC

A

s an insurance teacher, I’m always looking for the latest coverage trends with hope of developing mind-blowing course material for my agent-audience. Recently, I was working on a course highlighting various “emerging risks” and hit a wall. I had nine sections of the outline complete and needed to add just one more before I could take this “sure-tobe-a-smash-hit” course live, but I couldn’t settle on a tenth topic.

My mind was blank, and I had a deadline. Nada was no Bueno.

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Then my wife called and reminded me to pick up Bruce – our 14-year-old rat terrier – from the vet. I got him home and complained about the expensive vet bill. It didn’t matter. Bruce was our family’s guy, our best bud, and we’d pay to keep him healthy regardless of cost.

Our family smiled as he happily trotted into the house – a house strewn with his beds, toys, and snacks.

And I smiled for another reason.

I’d found my tenth topic.

NOVEMBER 2019

I concede that it’s hard to consider pets as an “emerging risk”; humans have had them since the dawning of time. However, their pervasiveness in American society has exploded in recent years. Consider record-high volume (85 million families own a pet, according to iii.org), record-high financial investment ($72.56 billion on pet expenditures in 2018, according to americanpetproducts.org), and broadened public access (more pet-friendly businesses, pets on airplanes, etc.).

More pets equals more laughs, more love, and more … claims? This is supposed to be an article about insurance coverage, so here goes:

PETS AND THE ISO HOMEOWNER’S POLICY Here’s a rundown of how this policy will/won’t respond to various pet-related claims: • Pets are considered property, and the policy doesn’t cover damage to “animals, birds or fish.”

• There is no coverage for damage to the Dwelling or Other Structures caused by “birds, rodents or insects” or “animals owned or kept by an insured.”

• Loss of or damage to personal property used with a pet – such as toys, beds, feeders, accessories, etc. – is not specifically excluded. However, note that many HO policies only cover damage to personal property if caused by a Covered Peril.

• Regarding liability, there is no specific exclusion for BI or PD caused by a pet. However, a carrier may add specific exclusion language based on underwriting criteria.

For this reason, it’s essential that the insured clearly understand such exclusion language in case they acquire a new pet – or have custody of someone else’s – during the policy term.

• Regarding liability, “property damage’ to property rented to, occupied, or used by or in the care of an ‘insured” is excluded (for example: if your dog chews on the wall of your rented hotel room). However, under the Additional Coverage called Damage To Property Of Others, there’s an important give-back of coverage up to $1,000 which may be increased by ISO’s Damage To Property Of Others – Increased Limits (HO 06 51 02 17) endorsement.

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• The definition of “insured” is expanded to include those responsible for an insured’s animals provided they are not in the “business” of such (for example: the professional pet-sitting service you hired is not an “insured” under your HO policy). continued on page 10

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COVERAGE CORNER

continued from page 9 As a side-note, according to iii.org, while the total number of dog-bite claims decreased between 2017 and 2018, the average cost per claim during that same time increased by 5.3% to $39,017. This is up a whopping 103% since 2003. Don’t forget to check that Umbrella policy!

PETS AND THE ISO PERSONAL AUTO POLICY Here’s a rundown of how this policy will/won’t respond to various pet-related claims: • Pets are considered property and Part A – Liability excludes “property damage to property that is owned or being transported by” an insured (for example: no coverage if your neighbor’s dog is hurt while in your vehicle).

• Part A – Liability does not exclude damage caused by an insured to another person’s pet that isn’t being transported by the insured (for example: you run red a red-light, damage another car as well as a dog that’s riding in that car). Don’t forget to check that Umbrella policy!

LEARN MORE FROM KEVIN Enjoy Kevin Amrhein’s monthly column? Hear more from him in our upcoming live webinar, On Ethics: Data, Dilemmas & Knuckleheads.

The lively course features interactive case studies and awards 3 ETH CE credits.

• Provided the vehicle is covered for Part D – Coverage For Damage To Your Auto – other than “Collision,” damage caused by a pet to that vehicle is not excluded (for example: your dog chews up your passenger seat).

As a side-note, ask your PAP carriers about a new endorsement introduced by ISO in 2018 called Pet Injury Coverage (PP 33 31 09 18). It’s designed to cover expenses such as vet bills incurred due to an injury sustained by the insured’s pet while riding in an insured’s covered auto or non-owned auto (as defined in the PAP). With apologies to all my Florida friends who own reptiles, this endorsement currently is applicable to dogs and cats only. It requires the insured to have at least one owned vehicle scheduled for Part D – Coverage For Damage To Your Auto. No deductible applies.

PETS AND THE … ISO CGL? Could a pet-friendly business be blamed if one patron’s dog attacks another patron or damages their property?

Could a BI claim be filed when a patron with a severe pet allergy becomes ill and alleges the business didn’t adequately advertise its “pet-friendliness”?

Currently, an unendorsed ISO CGL does not specifically exclude BI or PD caused by someone’s pet. As more mainstream businesses like retailers, restaurants, and hotels open their hearts and doors to pets, I’m curious to see how this exposure evolves.

That’s all for now. Until the next round … cheers!

Kevin C Amrhein, CIC, is IA&B‘s newest education consultant. He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.

Nov. 7 | 1-4 PM Register today.

800-998-9644, option 1 IABforME.com/webinars

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NOVEMBER 2019

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NEWS & NOTES

REGULATORS OUTLINE CYBERSECURITY LAW REQUIREMENTS The Delaware Department of Insurance (DOI) in a recent bulletin gave notice to anyone engaged in the business of insurance in Delaware – including agents and brokers – of the requirements imposed on licensees as a result of the state’s new Insurance Data Security Act, signed into law on July 31.

The new law takes effect in several stages, and the bulletin lists the requirements and effective dates for licensees as follows:

IA&B President & CEO Jason Ernest, Esq. and Education Senior Director Jessica McWilliams were on hand to receive the awards.

IA&B RECOGNIZED FOR INSURANCE EDUCATION IA&B recently received commendations for its professional training program. The Independent Insurance Agents & Brokers of America (IIABA) awarded IA&B two Excellence in Insurance Education Diamond Awards at its 2019 Education Convocation, held in Savannah, GA. “This is the third year running that we’ve earned two diamond awards,” said IA&B President & CEO Jason Ernest, Esq. “That’s a testament to the strength and breadth of our offerings.”

IA&B delivers 140 in-person seminars annually throughout Pennsylvania, Maryland, and Delaware. These include licensing exam preparation classes; special coverage courses; errors and omissions prevention classes; and CIC, CISR, and CPIA designation programs. In addition, the organization each year offers approximately 100 live webinars that award continuing education credits.

“We’re proud of this recognition, and we’re committed to maintaining the high quality of education that the insurance community has come to expect,” said Ernest.

WELCOME NEW MEMBER

QMS INSURANCE LLC, Camp Hill, PA A1 Insurance Agency, Dover, DE Learn more about membership.

IABforME.com/membership 12

• I mplement information security programs and conduct risk assessments to try to prevent data breaches and compromising of consumers’ nonpublic information and personal data (must be implemented no later than August 1, 2020), including oversight of third-party service providers (must be implemented no later than August 1, 2021); [NOTE: Agencies with fewer than 15 employees are exempted from these requirements.]

• Conduct thorough investigations to determine if a cybersecurity event may have occurred and whose data may have been compromised; • Notify the Department within three business days of determining that a cybersecurity event has occurred; • Notify all impacted consumers within 60 days of the determination that their data has or may have been compromised; and • Offer free credit monitoring services for one year to consumers impacted by breaches.

The bulletin also outlines the information that should be included in any notice to the DOI of a data breach/cyber security event and recommends that licensees who mail information to their consumers do so in closed-faced envelopes.

Resources Agencies of all sizes are already subject to a (less stringent) Written Information Security Program under the Gramm-Leach-Bliley Act and its implementing regulation, and under HIPAA. If you are unsure of your compliance status with these requirements, review our existing, state-specific privacy resources at IABforME.com/privacy or contact IA&B Vice President – Advocacy Claire Pantaloni, CIC, CISR at ClaireP@IABforME. com or 800-998-9644, ext. 604.

For those agencies that are not exempt from the full requirements of the new Delaware Insurance Data Security Act, we are updating our resources to provide members with a template.

NOVEMBER 2019

2019 CRAB FEAST Sending a huge thank-you to everyone who attended this year’s Crab Feast, Sept. 19 in Smyrna.

What a great event – and a great group of members!

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Q&A WITH

SHAYNE MCINTOSH

S

hayne McIntosh is a commercial lines producer with JPI Insurance Associates, located in Dillsburg, PA. He holds a bachelor’s degree in computer science with a focus in artificial intelligence. The first recipient of IA&B’s scholarship for the Certified Insurance Counselor (CIC) program, Shayne currently is working toward his CIC designation.

Q. Why does a computer science major make the switch from application developer to commercial lines producer? Inquiring minds want to know!

A. Solving complex problems in the most efficient manner possible – this is the core skill set developed within a computer science curriculum. It turns out there is no shortage of such problems within the insurance industry. In my case, developing solutions for my family’s agency and for the business owners we serve complimented my personality well. I now spend a little less time behind a computer and a little more time developing relationships with a lot of great people, all while maintaining a focus on problem-solving!

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Q. What’s your favorite part of working in the insurance industry?

And anything you miss from your IT days?

A. I like networking, being around people, and learning about businesses and the people who created them.

I think my favorite part though is developing an understanding of how a business ticks. I’m fascinated by commerce, so learning about the different entities involved is a treat.

I totally consider myself an ambivert.

There are just some days where I wish I could just sit in my dungeon, work on projects, and be closed off to the rest of the world.

Q. Many successful insurance producers transition from a different industry. How can independent agencies recruit and retain talent from outside of the industry?

A. I’m no expert on recruiting, but I’d imagine that like the best prospects, the best recruits would come from referrals or your developed network. Probably the most important thing is to give the person you do find a chance to really flourish with their pre-developed skill set. If you hire a producer from a NOVEMBER 2019

marketing role, give them a chance to really take ownership in some of your marketing efforts. If they were in IT, let them help you build automation within your agency.

Q. You and your colleague Cole Dreyer have done a great job of creating authentic and entertaining – yet still educational – videos for the JPI Insurance social media accounts. How has that process gone, and what advice would you give to other agencies who want to take the plunge?

A. It was rough at the start. It felt cumbersome, overwhelming, and foreign.

We didn’t have the confidence to know, “This is the right thing to share, shoot, or focus on.” At this point, we are dedicated to remaining committed and persistent.

We brainstorm weekly understanding that ideas spawn from each other.

As far as advice is concerned, in the words of Cole Dreyer, “Get comfortable being uncomfortable.” This idea transcends everything. You gotta make mistakes to learn and get better. Info-consumption works a little differently these days. People like video and scrolling through pictures, so your marketing content must take on those mediums. Lastly, have no shame and be you. Your audience will be interested!

Q. You joined IA&B at the 2019 Big “I” Legislative Conference. What was that experience like for you?

A. The Big “I” Legislative Conference was eye-opening to say the least! Having a chance to sit down with legislators to advocate for my family’s business was so cool. I learned a lot about how Capitol Hill works and what it takes to play a role in their ecosystem. I came home feeling inspired to stay active in my community and take ownership in my voice as an independent agent.

Q. You’re IA&B’s first-ever CIC designation scholarship winner.

What motivated you to begin your CIC designation journey? How is it going so far?

A. I consider myself one of those lifelong learners. I enjoy the classroom setting and digging into the finer details of really any subject matter. Not to mention the benefits to my career were pretty obvious – knowledge translates into confidence. Confidence translates to better consultation for my customers!

Q. Fast forward 10 years from now.

Where do you see yourself?

A. At work, I’d like to see myself moving into an ownership role in whatever capacity that may entail. At home, I imagine my wife and me in our own home, with a dog, cat, and kid(s).

Most importantly though, I’m thinking I should be about a 5-6 handicap!

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NOVEMBER 2019

MEDICAL MARIJUANA AT WORK A Look at State Law

By Karen DiGioia

Rapidly evolving state laws on medical (and recreational) marijuana can create confusion for employers. Read on for our contracted HR consultant’s take on addressing impairment, drug testing prospective hires, and more.

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Clearly communicate agency policy…. Don’t assume your employees understand what’s OK and what’s not.

— Karen DiGioia

M

arijuana. Possession and use are federally illegal, yet, at the time of my writing, 33 states – including IA&B member states of Pennsylvania, Maryland, and Delaware, plus the District of Columbia – have comprehensive medical marijuana programs. Eleven states plus Washington, D.C. allow recreational and medical marijuana use, and many other states currently are considering legalization of recreational weed. State laws continue to change quickly. By the time you read this article, some of these numbers may very well have changed.

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If I’m being totally honest, simply writing about this topic makes me a bit nervous. The rapidly changing landscape leaves many employers feeling baffled and confused about what they can and can’t do when it comes to marijuana in the workplace.

Even many HR professionals, if they’re being truthful, admit to finding it perplexing. While there’s much about this topic that is still hazy and I don’t claim to have all the answers, I’m going to focus on what currently is clear and try to eliminate some of the confusion. To keep things simpler, I’ll focus on the state of marijuana laws in Pennsylvania, Delaware, and Maryland.

We know that, currently, all three states have medical marijuana programs, and these programs make it legal for a licensed individual to buy, possess, and use medically prescribed marijuana, just like it’s legal to buy, possess, and use other prescribed medication. The primary question many employers have is, “Does that mean that it’s also OK for

NOVEMBER 2019

licensed individuals to use medical marijuana in the workplace or to come to work high?” I have good news for you: This is one area where the current answer is very clearly, “No!” (Did I just hear a collective sigh of relief?)

As an employer, to protect yourself and your agency, you can and should take the following steps:

1. Prohibit marijuana use while on the job.

Just like (I hope) you would prohibit an employee from keeping a bottle of vodka in their desk drawer or a bottle of wine in the office fridge and taking a sip from said bottle over the course of the work day, you can and should prohibit employees from using medical (or non-medical) marijuana in the office. (I’m not even going to touch on the beer-fridge trend going on in some companies today. As insurance professionals, I’m guessing that’s not happening in your workplace!)

2. Understand that, with some limited exceptions, it’s not OK to refuse to hire, or to fire or discipline, an employee strictly for the use of medical marijuana.

The key word in the statement above is “strictly.” As we’ll talk about in a moment, an employer is perfectly within his or her rights to take action for impairment, if it occurs, but it’s not OK to take action just because an employee has a license or uses medical marijuana. A number of states, including Pennsylvania and Delaware, have employee-protection laws in place that make it unlawful: • to fire or discipline an employee strictly because that employee is licensed to use medical marijuana, or •

to fire or discipline an employee who is licensed to use and tests positive for marijuana in a drug test, unless failing to do so would cause the employer to lose a monetary or licensing-related benefit under federal law or regulation.

3. If an employee comes to work impaired – whether it’s due to marijuana use (medical or otherwise), alcohol use, or use of prescribed (or unprescribed) medication – it is important to realize that the impairment is a performance issue and to deal with it as one, rather than focusing on the use of the substance.

UPDATE YOUR EMPLOYEE MANUAL Be certain that your employee manual includes a provision that reflects your policy on medical marijuana use, as well as drug and alcohol use in general.

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IABforME.com/emp_mgmt No time? Look to Independent Agency Solutions, which offers affordable, fee-based compliance solutions, including employee handbook preparation.

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Claire Pantaloni, CIC, CISR Vice President – Advocacy 800-998-9644, ext. 604 ClaireP@IABforME.com Don Bankus Legal & Corporate Affairs Director 800-998-9644, ext. 603 DonB@IABforME.com

Again, just as you would deal with an employee who had four beers for breakfast and came to work drunk, the issue is not the continued on page 20

19

continued from page 19 use of alcohol. The issue is on-the-job impairment. Deal with marijuana the same way. Document the performance deficit in detail, focusing on the expected standards of performance. If possible, have signed statements from others who witnessed the behavior. If your policy is to

test when impairment is suspected, drive the employee to the drug-testing facility (please, don’t have them drive themselves if you suspect that they are impaired).

Meet with your employee, as you would with any other performance issue. Talk about the performance, the behavior, and

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the related consequences. Consistently follow the policies that you have in place regarding both performance issues and substance use/abuse (more on that below).

4. Clearly communicate agency policy regarding workplace use of marijuana and other substances, the consequence of non-compliance, and the process that will be followed if non-compliance is suspected.

Enforce your policy consistently.

As we’ve already recognized, this is a confusing subject – for employers and employees alike. Don’t assume your employees understand what’s OK and what’s not. Employees may wrongly assume that, if they can legally use marijuana, they can do so at work without consequences.

It’s still OK for employers to implement drug-free workplace policies. Adopt a written policy regarding substance use and communicate it to your employees.

Ensure that your policy prohibits both marijuana use in the workplace and impairment in the workplace and during work time. Ensure that you and your managers know how to identify marijuana impairment.

OK. So far, we’ve talked about what’s clear. Now, I’m going to move on to an area that is less so: testing.

Drug testing, especially pre-employment testing for drug use that includes marijuana, is a practice that, for many employers, is coming more and more into question. While employees covered

by Department of Transportation rules – such as those in safety-sensitive jobs like trucking, airline, and mass-transit workers – must be tested for alcohol and drug use, what about organizations where testing is not mandated?

Some limited locations, currently Nevada and New York City, have

20

NOVEMBER 2019

passed laws that will go into effect in 2020 to make it unlawful to test job applicants for marijuana use. While that is currently the exception and not the rule, many employers are moving away from pre-employment drug testing, quite honestly, on the grounds that it screens out too many otherwise qualified candidates. In today’s highly competitive labor market, some employers are deciding that it just doesn’t make sense anymore. In states that have legalized recreational marijuana, the practice of making employment decisions based on tests that reveal marijuana use has become even murkier.

Add to that the fact that testing for marijuana use is much different than testing for alcohol. Alcohol tests clearly show impairment and recent use.

Marijuana testing is less clear. continued on page 22

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continued from page 21 There’s no common level of THC that indicates that a person is impaired, and THC can show up in a test as many as 30 days or more after use. This means that a test can come back positive for THC, but this doesn’t mean that the employee was high at the time of the test. As a practice, the current shift, especially for positions where safety is not a concern (or, obviously, where testing is not mandated), is to discontinue pre-employment testing and utilize testing only when an employee appears impaired or when an accident has occurred. Many organizations are also shifting, whenever possible, to tests that measure performance impairment rather than presence of THC in the employee’s system.

If your practice has been to conduct pre-employment tests, it’s a good time

to give careful consideration to why you do it and ensure that you still feel that it is important. (Perhaps liability concerns are enough to warrant the tests.) If you do decide to continue testing, review the type of test that you use, and keep yourself updated on the legal state of this topic.

I’m hopeful that this article has helped to clear away some of the confusion around the topic of marijuana in the workplace.

(I’m an optimist by nature!) However, it’s important to recognize that there are still murky areas and that evolution of this topic will continue. What’s true today may not be true tomorrow.

Right now, I’m crossing my fingers that everything I’ve said here, as I write this in September, will be accurate when this article is published in November. While I

have no reason to anticipate that things are going to change that quickly, we know that the topic will continue to shift in ways that will impact the workplace. Your best bet is to stay on top of the subject, and as always, if you have any questions or concerns, don’t hesitate to drop me an email karen@mostellerhr.com, or give me a call at 610-779-3870. aren H. DiGioia K provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm.

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IA&B EXPANDS SCHOLARSHIP PROGRAM P

reservation of the independent insurance agency system is the impetus behind IA&B’s scholarship program – a program that aims to support new talent and develop existing member agency staff though insurance education.

“There’s so much talk about industry perpetuation,” said IA&B President & CEO Jason Ernest, Esq. “Awarding education scholarships is one way we can move the needle today to support the independent agency system of tomorrow.”

In late 2018, IA&B introduced its insurance education scholarship program and began accepting applications. By July 2019, IA&B had awarded $13,079 in scholarships for individuals and member agencies to use toward designations, online continuing education, and Pennsylvania pre-licensing study classes.

IA&B President & CEO Jason Ernest (left) recognizes Shayne McIntosh, of JPI Insurance Associates, IA&B’s first-ever CIC designation scholarship winner.

“The response to the program was phenomenal,” said Ernest. “It was invigorating to see the interest in our industry from aspiring producers and the commitment to professional development from our member agents.”

For 2020, IA&B will evolve its scholarship program, increasing the funds allocated for licensing scholarships and expanding them beyond Pennsylvania to include Maryland and Delaware (where IA&B offers self-study pre-licensing packages). The complete CIC and CISR designation scholarships for individuals will remain, as will member-agency scholarships for CIC institutes, CISR seminars, and live CE webinars.

“We’re committed to sustaining this program and are thrilled to add pre-licensing scholarships in Maryland and Delaware,” said Ernest.

IA&B is accepting applicants for the next round of scholarships, which will be awarded early next year. Apply by Dec. 13, 2019.

Visit IABforME.com/scholarships to learn more or download an application.

CrossKeys Insurance’s Stephen Yeity poses with poses with his daughter, Alexandra Yeity, IA&B's inaugural CISR designation scholarship winner.

HAVE QUESTIONS? Contact IA&B Events Manager Susan Zvorsky, CISR Elite 800-998-9644, ext. 206 SueZ@IABforME.com

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NOVEMBER 2019

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TECHNOLOGY UPDATE

26

NOVEMBER 2019

ARTIFICIAL INTELLIGENCE IN INSURANCE: WORKING SMARTER Reduce Your Clients’ Risk of a Breach

By Sharon Emek, Ph.D., CIC

While the insurance industry gains incredible efficiencies from artificial intelligence, its need for human creativity and empathy is greater than ever. Here, Sharon Emek shares the benefit of balancing technological advancements with the human element.

A

rtificial Intelligence (AI) is arguably the most significant modern influence on the labor economy. Technology that automates and completes tasks previously accomplished by humans, AI can seem like a threat to many positions that countless people rely on for employment and steady income. But the implications of AI aren’t so much that work opportunities are lost, but rather reconfigured.

A Harvard Business Review article, “Collaborative Intelligence,” published last year aptly captures the potential for AI and human workers: collaboration, not competition. In the piece, authors James Wilson and Paul Daugherty perfectly illustrate that complementary dynamic, wherein AI completes tasks that are more difficult for humans to do efficiently and free of error with “speed, scalability, and quantitative capabilities” while humans complete tasks requiring “leadership, teamwork, creativity, and social skills” that are extremely inefficient for AI to attempt: “What comes naturally to people (making a joke, for example) can be tricky for machines, and what’s straightforward for machines

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TECHNOLOGY UPDATE

(analyzing gigabytes of data) remains virtually impossible for humans. Business requires both kinds of capabilities.”

For the insurance industry, AI’s proven itself in radically expediting underwriting, fraud detection, processing claims, as well as providing initial customer service. This is especially valuable in our modern society where the expectation for customer service is prompt and on-demand crisis resolution and closure. Then of course, the predictive side of AI means that with the abundance of data regarding claims and incidents, the insurance industry is better able to assess damage and accurately predict repair cost.

Which leaves the interpersonal dynamic creativity of the field to insurance professionals. Insurance benefits handsomely from AI, but it needs voices on the other end of the call that communicate AI’s takeaway in a nuanced, empathic manner.

Insurance still needs creative minds to guide AI as it learns to interpret massive amounts of customer data and arrive at accurate, ethical recommendations.

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The industry needs the rapid-fire technological ability of AI—its ability assimilate an abundance of data; and it equally requires the human mind—creativity, innovation, and social ability of its insurance personnel. AI is changing the future of our global economy. But it’s not here to replace humans. It’s here to work with us and help us work smarter.

Sharon Emek, Ph.D., CIC, is founder and CEO of Work At Home Vintage Experts (WAHVE).

WAHVE (www.whave.com) is an innovative contract talent solution that matches retiring, experienced 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 extend 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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