Primary Agent - June 2023

DAVID WILGUS

REFLECTS ON INDUSTRY CHANGES & COASTAL LIVING

ALSO INSIDE

EXCLUSIVE MEMBER MAGAZINE

LIABILITY COVERAGE FOR LAWN MOWERS

SIMPLIFYING MULTIFACTOR

MORE ABOUT MOWERS

Bill Wilson addresses the issue of liability coverage for the use of riding lawn mowers – particularly for use beyond servicing a residence.

8

Q&A WITH DAVID WILGUS

David Wilgus, of IA&B Member Wilgus Associates in Bethany Beach, DE, shares how Hurricane Gloria indoctrinated him into the industry, what has changed with agency operations over the years, and why he enjoys living along the coast. 12

SIMPLIFYING MULTIFACTOR AUTHENTICATION FOR AGENCIES

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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.

With cybersecurity top of mind, agency owners must balance operational efficiency and regulatory requirements. Alvito Vaz, of ID Federation, shares the benefits of multifactor authentication (MFA) and ideas for simplifying its adoption.

HELP PROTECT OUR INDUSTRY

I write this message from Washington, D.C., in the shadow of the U.S. Capitol. It’s the return of our full participation in the Big I’s National Legislative Conference, and we hosted 30 member agents at the event. We spent a day on the Hill, visiting congressional offices to speak about issues important to independent agents.

It’s one of my favorite events of the year because it’s a perfect blend of comradery and networking, of agents coming together to fight for a common good. The IA&B delegation joined 1,000 other independent agents from around the country to talk shop, and to urge Congress to take it easy on us. It’s what advocacy is all about.

IA&B always has your back when it comes to the political scene. Whether in Harrisburg, Annapolis, or Dover – or the nation’s capital – we are constantly monitoring and advocating on your behalf. But unlike other services that IA&B provides, with political advocacy we cannot go it alone. We rely on you.

We rely on member agents getting involved. Whether it be attending future National Legislative Conference events, or attending local legislative events in your state, we need you. State and federal legislators like to hear from businesspersons on the front lines, in their district. We also continue to seek interested member agents to serve on our state-specific government relations committees. These committees serve as a sounding-board for IA&B staff as we develop our legislative plan each year.

Finally, and maybe most importantly, we rely on our members to support our state and federal political action campaigns (PACs). It is these member contributions, and these contributions alone, that allow us to support those legislators that support us. Our advocacy efforts would be for naught if we didn’t have PACs, and your support of these PACs. If you haven’t already (and many thanks to those that have), please consider contributing today at IABforME.com/political_ advocacy. It allows IA&B to do our job of protecting you.

Until next time,

INSURANCE AGENTS & BROKERS

650 Wilson Lane, Suite 200 Mechanicsburg, PA 17055

191 Main Street, Annapolis, MD 21401 800-998-9644 | IABforME.com

IA&B BOARD OF DIRECTORS

OFFICERS

Richard M. Rankin, CIC - Chair

Murray Insurance Associates, Inc. | Lancaster, PA

Sarah Brown, CIC, CRM, AFIS - Vice Chair

Keller Brown Insurance Services | Shrewsbury, PA

MEMBERS

Greg Bennett Famous & Spang Associates

Aberdeen, MD

Kate Dawson, CPIA

Ferri Dawson Insurance

Murrysville, PA

Andrew Enders, Esq.

Enders

Harrisburg, PA

Len Gieseler, LUTCF

Evans Hauseman & Richard, Inc.

Pottstown, PA

Bruce D. Kraft, AAI, CIC Arbor Insurance Group

Allentown, PA

Shayne McIntosh, CIC

JPI Insurance Associates

Dillsburg, PA

Chris Miller, CIC

Miller Insurance Protection Team

Jonestown, PA

Michael Papa, CIC, MBA

Diversified Insurance Industries, Inc.

Hunt Valley, MD

Bill Purdy

Purdy Insurance Agency, Inc. Sunbury, PA

Kent Reynolds, CIC Blue Ridge Risk Partners LLC

Hagerstown, MD

Jason Rodriguez

Prominent Insurance Svcs

Wilmington, DE

Donna Roper

E K McConkey & Company

York, PA

Candace Shoupe, AAI, AIC

CBM Insurance Agency New Castle, DE

Tara Silfies, CPCU

Hampson-Mowrer Agency, LLC

Bethlehem, PA

Bob Smyrl, CIC

Robert L. Smyrl, Inc.

Hatfield, PA

Michael Thomas

Lighthouse Insurance Svcs

Gambrills, MD

NATIONAL DIRECTORS

Mike Ertel (PIA)

The Jacobs Company, Inc. | Columbia, MD

Mark Monroe (IIABA)

Griffith Insurance, LLP | West Chester, PA

Diana Hornung Hanby (IIABA)

IOA National, Inc. | Wilmington, DE

Jason F. Ernest President & CEO

Editor’s Note: See photos from the National Legislative Conference on page 17.

QUESTION:

ANSWER:

CLAIRE-IFICATION

IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR

Are you a member with a question?

Contact Claire to find the answer at 717-918-9202 or ClaireP@IABforME.com.

One of our staff had an altercation at a concert. Can this impact his license?

Not necessarily, but to avoid making things worse, certain actions need to be taken quickly if the producer is charged as a result of the incident. If the producer is charged, the first thing to do is to report the charges to the insurance regulator promptly when it happens and again later at license renewal time.

HOW SOON TO REPORT AND WHY NOT WAIT TO SEE IF THERE IS A CONVICTION?

In our three states, the producer licensing statute requires producers to report charges of criminal conduct to the insurance department within 30 days of being charged. Please note that it does not say “convicted.” The producer will then follow up with additional documentation as it becomes available, including:

1. A copy of the criminal complaint, information, or indictment

2. A copy of the order resulting from a pretrial hearing, if any

3. A report of the final disposition of the charges

WHAT ABOUT THE LICENSE RENEWAL?

When the license comes up for renewal, the producer will need to answer “yes” to the background questions included in the application, even if he already reported the charges when they happened.

HOW OFTEN DOES THIS OCCUR?

Insurance regulators have told IA&B that they continue to see a fair amount of license renewal applications with the wrong answer. In Pennsylvania, the Department has partnered with J-Net, the Justice Network, so they will be notified of criminal conduct as soon as charges are filed. In other words, if you fail to report the charges,

the Department will find out, but because you did not report them, you will be in violation of the producer licensing law.

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.

October 3-4, 2023

Cork Factory | Lancaster, PA

MORE ABOUT MOWERS

By Bill Wilson, CPCU, ARM, AIM, AAM

In my first two columns, I discussed a couple of important insurance contract interpretive principles, “RTFP!” and “Entirety of Contract.” Both deal with the critical importance of actually reading the policy in its entirety to determine whether there is coverage for a claim.

In the last issue, I illustrated the meaning of “Entirety of Contract” using an actual claim involving damage to a lawn mower. Now that we are in full mowing season, I thought I would address the issue of

liability coverage for the use of riding lawn mowers.

My research tells me that over 2 million riding mowers are sold annually and that the useful life of a riding mower is at least 10 years, over which the potential for accidents due to lack of maintenance or equipment failure escalates. According to the Consumer Product Agency, there are about 80,000 injuries annually involving mowers, about 10% requiring an emergency room visit, with 21% resulting in

amputation. In other words, injuries are not uncommon and can be severe, testing the limits of many homeowners’ policies.

An even bigger potential problem is a riding mower accident that is excluded by a homeowners’ policy. How homeowners’ policies cover (or don’t cover) liability for riding mower accidents can vary significantly from one insurer to another. In fact, coverage can vary considerably from one ISO HO 00 03 policy edition to another.

The most recent editions of the ISO HO 00 03 are 1991, 2000, 2011, and 2022. Each of these policies has a “motor vehicle” exclusion, and each has exceptions to that exclusion that grant coverage. For example, losses arising from the following motor vehicles are covered, absent any other exclusions, if the vehicle is:

1991: “Used to service an ‘insured’s’ residence.”

2000: “Used solely to service an ‘insured’s’ residence.”

2011: “Used to service a residence.”

2022: “Used solely to service a residence…[or] “A riding mower that, at the time of the ‘occurrence’, is being used to mow a lawn.”

The 1991 edition provides the broadest coverage. As long as I use the riding mower at any time to service my residence, I’m covered anywhere I use that mower within the coverage territory, even if I’m using the mower to pull a flatbed trailer full of toddlers on Halloween, as a neighbor used to do.

However, insurers considered this coverage too broad, so ISO changed the wording in 2000 so that the riding mower had to be used solely to service the insured’s residence. If the insured ever used the mower off their premises, they had no coverage while doing so, nor would they ever have coverage again since that vehicle would never again have been used solely to service the insured’s residence.

I once asked ISO what would happen if I bought a new mower and replaced the old one. That question never got a conclusive answer, but presumably, I’d now have coverage

since that new mower was now being used solely to service my residence.

In fact, I assisted on a claim once where the insured bought a new mower and brought it home. Before he had a chance to use the mower, it was stolen from his driveway overnight. Initially, the adjuster denied the theft claim (under an identical Coverage C property exclusion) because the lawn mower had never been “used” at all to service anything.

Following the 2000 change, the Big “I” national technical affairs committee began to advocate for a return to the old language because the coverage pendulum had swung too far in the other direction. So, in 2011, ISO removed the “solely” language but still limited coverage to use in servicing a residence.

Do you have any customers that use their riding mowers for more than servicing a residence? My bet is you have hundreds that do. So, the Big “I” technical affairs committee continued to petition ISO to moderate the language.

The result is the 2022 edition that reinstated the “solely” language (Yikes!) but did add coverage while the mower is being used to mow any lawn. However, the coverage still only applies during “use.” What if someone is injured while repairing the vehicle or a child falls off when the vehicle isn’t being used?

What’s interesting is that you can operate an ATV on an insured location or borrow one and kill someone while operating it anywhere. Likewise, when using a borrowed jet ski or a rented boat with dual Yamaha 250 hp outboards.

But you have less coverage when operating your own riding mower under certain conditions.

So, if a customer asks you if they have coverage for their riding mower, how do you answer that?

Bill Wilson, CPCU, ARM, AIM, AAM is the founder and CEO of InsuranceCommentary.com and the author of seven books, including “When Words Collide…Resolving Insurance Coverage and Claims Disputes.” He can be reached at Bill@InsuranceCommentary.com.

An audio version of this article is also available as a podcast

LIVE CE WEBINAR

Learn more about homeowners’ exposures and coverages. Plus earn CE without an exam.

CLAIMS THAT WILL CONVINCE YOUR INSURED TO ENHANCE THEIR HOMEOWNERS’ COVERAGE

JUNE 22

1 - 4 PM

CE PA/DE: 3 GEN | MD: 3 PC

IA&B Members: $75 (save $30!)

Non-Members: $105

Register today. IABforME.com 800-998-9644, option 1

IA&B YOUNG AGENT

AWARD NOMINATIONS

Are you or someone you know a rising star in the independent insurance community? Nominate yourself or someone else for the 2023 IA&B Young Agent Award.

IA&B will recognize three exceptional young agents – one each from Pennsylvania, Maryland, and Delaware – for this honor. Recipients will be publicly announced and recognized on Oct. 3, 2023 at the IA&B Young Agent Conference.

Criteria, award details, and nomination forms are available at: IABforME.online/Young-Agent-Award. Hurry! Nomination forms are due by Tuesday, June 13.

Questions? Contact IA&B PR Director Karen Robison

KarenR@IABforME.com

800-998-9644, ext. 606

IA&B EDUCATION SCHOLARSHIPS APPLICATIONS

Apply for the next round of insurance education scholarships. This fall IA&B will award two individuals with full CIC and CISR designation scholarships, as well as member agencies with scholarships for their staff to attend CIC, CISR, and CE courses.

Scholarships to attend licensing study courses are available throughout the year.

Applications are available online: IABforME.online/scholarships

Questions?

Contact IA&B Administrative Assistant Sarah Haas

SarahJ@IABforME.com

800-998-9644, ext. 104

SCHOLARSHIP SUPPORT

Thank you to the Central PA Users Group (Applied Systems users helping users) for the generous donation to the IA&B Insurance Education Scholarship program. We sincerely appreciate your support!

Users Group officers: Gina Kratovil (on left), of Keller-Brown Insurance Services, and Patti Brookens, of McConkey

WOMEN-FOCUSED WEBINAR

Register today for our upcoming webinar, geared to women insurance professionals. This webinar is part of IA&B’s broader initiative to support women in the industry and follows the sold-out Women’s Conference in March 2023.

Going Beyond the ‘Why’ of Talent Retention: Mentorship, Networking & Development

Presented by Tiffany Boyd, Chubb

Wednesday, June 15 | 11 AM-Noon

There is no cost to attend this webinar, which is available exclusively to IA&B members. Registration is required.

IABforME.com

800-998-9644, option 1

Please note: This webinar is designed with women attendees in mind, but it is open to everyone who supports the growth and leadership of women in the independent insurance agent community.

RECOMMITTING TO IA&B MEMBERS’ FUTURE

Insurance Agents & Brokers (IA&B) remains committed to the success of the independent agency channel. To ensure our efforts align with our members’ evolving needs, IA&B retained the services of Chicago-based Minding Your Business (MYB), a consulting firm that positions associations for the future.

MYB led the IA&B Board of Directors and senior staff through an extensive research process and intensive in-person planning retreat. These culminated in the development of a new strategic plan, vision, and mission statement. Watch for updates in the months ahead.

VISION:

A thriving independent insurance agent community.

MISSION STATEMENT:

CONTINUING TAGLINE:

We are the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware.

To serve as a driving force to champion independent agency success by educating, consulting, advocating, and fostering community in Pennsylvania, Maryland, Delaware, and beyond.

MYB consultants, IA&B Board of Directors, and IA&B senior staff at the fall 2022 strategic planning retreat in Hershey, PA.

Q& A with DAVID WILGUS

David T. Wilgus, CIC, leads the insurance department of Wilgus Associates, Inc., located in Bethany Beach. DE. He also serves as the secretary and treasurer of the firm, which provides real estate and property management services in addition to P&C insurance products.

You’re part of the third generation to work at Wilgus Associates. Was there ever any doubt you’d join the family business? And what piqued your interest in the insurance side?

I knew I would be a part of the business but was not sure in what capacity. Before I joined the firm in 1985, our agency was very active in real estate development and real estate sales. I thought I might be a Realtor after graduating from the University of Delaware. What I did not know was that I needed 3 credits to graduate from Delaware in the spring of ‘85. I asked the university if I could earn the credits by working in the insurance department of our family business. The university agreed to the internship.

I began my career at Wilgus learning how to take insurance claims and servicing the agency’s accounts receivable. At the time, many of our companies agency billed policies, so you had to follow your receivables closely. In September 1985, Hurricane Gloria came up the coast. This storm caused a fair amount of flood and wind damage in the area. I was the claims person for the agency and took over 100 claims from this storm. Each customer either came into or called the office, and I recorded all the damages to file each claim. I saw firsthand how insurance companies handle and pay for our customers’ losses. It showed me the true value of insurance and what a noble profession it is. I decided to give it a go after this experience.

Tell us about Wilgus Associates and its various divisions. Do they operate independently? And how do they complement each other?

Wilgus Associates is comprised of four divisions: insurance, real estate sales, real estate rentals, and property management. We can sell you a home, insure it, rent it in the summer or year-round, and keep an eye on your property during the off season. No other business in this area can provide all these services using one company. This makes our firm unique.

The departments complement each other, yet in many ways, each department is independent. We may not rent every rental property we insure, but the opportunity is always there to do so. The same thing can be said about properties we manage. That being said, we do insure many rental properties and associations we manage.

What are the most dramatic changes you’ve seen since you entered the business? And what, if anything, has stayed the same?

When I started at Wilgus, we still used typewriters, carbon paper, and calculators. There was no internet, texting, or cell phones. Policies were rated manually using a calculator. Most of our policies were agency billed. Faxing was the newest technology. When direct billing started, most of the accounts receivable problems went away. This was great!

Though many things have changed, there are still parts of this business that have not. We continue to have many friendships with our customers. Though we may not see them as often, we still communicate by phone or email. The staff at Wilgus is made up of a great group of people,

all working as a team to help our customers. This has not changed.

Congratulations to Wilgus Associates being named a 2022 Best Practices Agency,* a distinction your agency has received many times over the years for its growth and operational excellence. What motivates you to undergo the rigorous application process? And what does the recognition mean to you?

The first time Wilgus was invited to participate in the Best Practices Study, the application was around 4-5 pages. Now it is 8-9 pages. While the application process is lengthy, I believe the results are helpful in managing the agency. This is my main motivation. I want to see where Wilgus is, both weak and strong, when compared with our peer group on various levels of our operations. The survey gives you this information. It rates the agency on all facets of growth, profit/loss, wages, and the premium size each agent services compared to our peer group.

Being a Best Practices Agency is an honor but also a reflection of the hard work and dedication of our staff. Without their dedication to Wilgus and this profession, Wilgus would not be a Best Practices Agency.

Your son Derek now works with you as a personal lines producer. What professional advice have you given him and the other young agents in your office?

I always tell Derek and other new agents to learn as much as you can about the business and ask a lot of questions. I have agents in my office that help mentor the newer agents to get them educated on our computer systems and the companies we represent. I encourage new agents to take educational courses provided by our insurance companies and IA&B, which Wilgus pays for. Insurance company underwriters can be helpful to new agents by educating them on the types of risks they want to insure. Plus, our agency subscribes to a number of insurance magazines, which I encourage agents to read.

Many of our readers enjoy getaways at the Delaware beaches. What’s it really like to live and work in a popular summertime destination?

I have lived in the Bethany Beach area all my life. I’ve always enjoyed surfing, fishing, boating, and living along the coast. When I was younger, I had a hard time staying at work when the waves were big or the fishing was good. That has changed a little bit over the years. After living

here many years, you get used to the beaches and all the things along the coast. You never take them for granted, but they become a part of your life. As I’ve become older, I may sit on the beach once or twice each year. I enjoy walking the boardwalk and do this more often. I will add that Bethany Beach has been discovered. There are many more people living here today than just 20-30 years ago. Many of the corn fields that existed near the beaches have been developed. This has been good for the business, but the way of life has changed.

What keeps you busy outside of work?

I was involved in Boy Scouts as an Assistant Troop Leader for many years when my sons were in scouting. I received a scouting badge for over 100 nights of outdoor camping which was fun. I’ve been a deacon at the church I attend for many years. I enjoy power boating and sailing. I often fish from my boat or occasionally go to the beach and try a little surf fishing. If the ocean waves are just right, I still enjoy surfing.

* Editor’s note: IA&B members can access Best Practices Study results by visiting IABforME.com/memberresources.

Members:

OUR FEATURED PLATINUM PARTNER

It’s the rare individual who is motivated by a genuine desire to help others. And it’s the rare company that puts that principle into practice.

At Erie Insurance, we’ve been helping people make things right since 1925, working side-by-side with the best independent agents in the business.

Our agents and employees are energized by a clear sense of purpose, performing to the best of their ability, because they know the work they do benefits millions of customers’ families and businesses. It’s part of being Above all in SERVICE® and it’s why we’re so committed to the independent ERIE agents who live and work in the communities they serve.

On the strength of these relationships, Erie Insurance has risen to become one of the nation’s most respected property/casualty and life insurers.

EXECUTIVE OFFICER

Timothy G. NeCastro, President and CEO

HEADQUARTERS

Today, we’re a FORTUNE 500® company operating in 12 states and the District of Columbia. ERIE has approximately 6.5 million policies in force. We’re the 16th largest property/casualty insurer in the United States, based on total lines net premiums written, and the 12th largest homeowners multiple peril insurer and 13th largest private passenger auto insurer based on direct premiums written.

Erie Insurance has been named to the Forbes list of America’s Best Insurance Companies 2022. This recognition was presented by Forbes and Statista, a leading statistics portal and industry rankings provider. ERIE was listed as a top company in five different personal insurance categories for 2022: auto, homeowners, renters, term life and permanent life.

Insurance Agents & Brokers proudly recognizes Erie Insurance as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

Erie Insurance’s founding principle is: “To provide our policyholders with as near perfect protection, as near perfect service as is humanly possible, and to do so at the lowest possible cost.” That same principle guides us today.

We still adhere to disciplined underwriting, fair pricing and a prudent investment philosophy. We still practice the Golden Rule–treating others as we want to be treated.

We still thrive on the ERIE family spirit, employees and agents working together as a team for the good of our customers and the communities we serve.

At our core, we still believe the truth in our founder H.O. Hirt’s words:

Thanks to these partners for supporting the independent agent network.

PLATINUM PARTNERS

Acuity

Erie Insurance

Keystone

Millers Mutual Insurance

Penn National Insurance

Plymouth Rock Assurance

GOLD PARTNERS

Chesapeake Employers Insurance

Chubb

Donegal Insurance Group

EMC Insurance Companies

Farmers of Salem

Iroquios Mid-Atlantic Group

Liberty Mutual Small Commercial /

State Auto / Safeco Insurance

MMG Insurance Company

Mutual Benefit Group

Nationwide

POM Insurance

Progressive

Success in business is not a matter of tricks or gimmicks…it is just a matter of simple common sense, mixed with just plain decency.

- H.O. Hirt Erie Insurance Founder

MFA Is Necessary. Let’s Make It Simple

Cybersecurity is top of mind for insurance agencies as they balance operational efficiency and regulatory requirements. Carriers and agencies are looking to leverage the benefits of improved connectivity, and they need to maintain the control to restrict systems access while broadening available ways to work. Multifactor authentication (MFA) is a key tool.

MFA is the provision of an identity authenticator beyond user IDs and passwords, which are notoriously vulnerable to hackers1 who employ password-cracking tools2. CrowdStrike defines MFA3 as a “multi-layered system that grants users access to a network, system, or application after confirming their identity with more than one credential or authentication factor.” With MFA, authenticating an identity requires the usual user ID and password plus one or more of the following: a onetime code or password; a secure token generated by an authenticator app; or a biometric recognition, such as a fingerprint, face, or voice. Most of us already use MFA because our bank or our credit card company requires it.

Growing Importance of MFA

At a White House briefing4 in September 2021, Anne Neuberger, the deputy national security advisor for cyber and emerging technologies, advocated MFA use, stating it has the capacity for “preventing 80% to 90% of cyberattacks.” In an executive order5, President Biden mandated that MFA be used by the federal government.

In December 2022, the National Association of Insurance Commissioners (NAIC) observed:

“Cybersecurity is perhaps one of the most important topics for the insurance sector today. Insurers and insurance producers must protect the highly sensitive consumer financial and health information collected as part of the underwriting and claims processes. This personally identifiable information (PII) is entrusted to the industry by the public.”

The insurance industry’s need for cybersecurity will continue to increase as more employees and customers use remote devices to access agency and carrier systems. There is an even greater risk for nonauthorized use when customers or employees use open internet access connections — think Starbucks, an airport lounge, or a hotel conference center.

One of the most painful and costly expenses of a cyberbreach for any agency or carrier is damage to their brand reputation. Customers rightfully expect that their agency — as a trusted advisor — will safeguard their personal information, and the loss of reputation caused by a cyberbreach can take months or years to recover. A Forbes Insights report6 estimated reputational risk as the highest impact cost category, accounting for 29% of the expense of a breach.

Other factors driving the use of MFA are cyber policy requirements and legislative changes. Increasingly cyber policy coverage requires the use of MFA by an insured business, or in some cases reduces coverage limits if MFA is not implemented.

State insurance regulators are also elevating digital protection responsibility for carriers and agents. The 2017 New York regulation7 adopted insurance-specific requirements around cybersecurity and consumer data protection. The National Association of Insurance Commissioners (NAIC) has adopted some of these into a model law8 with data security standards and post-breach requirements. As of January 1, 2023, Vermont became the

BY ALVITO VAZ, ID FEDERATION

23rd state to adopt a cybersecurity statute based on the NAIC model law9. [See box below for the status in IA&B’s three-state footprint.]

IMPLEMENTATION OF NAIC MODEL LAW

Insurance data security legislation based on the NAIC model law was passed in Delaware in 2019 and Maryland in 2022. While the law in Maryland applies only to insurance carriers, Delaware’s law also applies to independent agents (with exemptions from certain requirements for agencies with fewer than 15 employees). Similar legislation in Pennsylvania, House Bill 739, has been reintroduced based on an identical proposal from the previous legislative session. In May of this year, HB 739 was sent to the Senate for approval after the House voted unanimously in favor of its passage.

Proprietary Carrier MFA Solutions Damage Agencies

In response to cyberthreat exposure, carriers are improving their risk profiles by implementing proprietary MFA solutions for access to their agent portals. But an IA channel in which each carrier has its own MFA method is costly for the agencies who sell the carriers’ products. Why? Because of the drag on agency operations.

On average, according to the IIABA Agency Universe Study10, an agency has 16 carrier partners — 10 for personal lines and six for commercial lines. This could mean 16 different MFA methods. When multiplied by every individual agency user, the loss of efficiency for an agency can be enormous.

Today, the number of different carrier technology interfaces is already difficult for agents to navigate, and carriers moving toward MFA will only further complicate agent processes. Keith Savino, a principal and managing partner for PCF Insurance Services and Broadfield Insurance Agency, described the evolving IA channel in an article11 published by Insurance Journal: “For agents, sorting through the various carrier and vendor MFA methods and requirements has been like navigating the Wild, Wild West.”

Let’s Make It Easy

Together we can civilize the Wild, Wild West of the IA channel and make identity management both simple and secure. The solution is SignOn OnceTM by ID Federation. Not only does it provide an efficient route to better security across the channel, but it was designed for us by our peers.

ID Federation is a nonprofit group of carriers, agencies, and insurance technology vendors who collaborate on secure and efficient industry standards. The two largest agency management providers — Applied Systems and Vertafore — are members of ID Federation. Forwardthinking carriers that already are on board with IA channel efficiency are also members. A list of members is available at IDFederation.org/member-roster.

Industry-wide adoption of SignOn Once will enable carriers to enhance their agency management system

Continued on page 14

Continued from page 13

security, including MFA, in a uniform manner that will benefit the entire channel. SignOn Once will provide agents with consistent, secure, and efficient access among carrier platforms.

The Benefits of a United IA Channel

From their ID Federation-partner agency management system, an agent can connect to carriers that support SignOn Once without having to re-enter IDs and passwords. Even better, a single MFA process, completed when an agent signs on to their management system, suffices to eliminate MFA requirements across the multiple-carrier portal.

Still better, the solution can be universal. In sum, SignOn Once by ID Federation, which is free for agencies, answers the need for secure and standardized identity management, including MFA, across the entire IA channel. With a single sign-on just once a day, every agent could connect securely to the IA channel through their management system, using a trusted credential. And every carrier can enhance their security while helping their agents.

All that’s required is for carriers, agents, and industry partners to participate.

Advocate for Ourselves

Independent agents and their carriers need to know that SignOn Once by ID Federation is designed to benefit everyone, and they should work toward industry-wide adoption. Agents should talk with their carriers who are not yet on board with SignOn Once, encouraging them not to pursue proprietary MFA methods, but instead to cooperate through ID Federation for the greater good.

The more we work together, the safer and more efficient identity management will be. SignOn Once by ID Federation has already paved the road to that better place for the entire IA channel.

Vaz is the business manager of ID Federation and has more than 30 years of experience with insurance industry automation. He can be reached at alvito@IDFederation.com.

Sources:

1 https://www.beyondtrust.com/blog/ entry/password-cracking-101-attacksdefenses-explained

2 https://techreport.com/spy/bestpassword-crackers/

3 https://www.crowdstrike.com/ cybersecurity-101/multifactorauthentication-mfa/

4 https://www.whitehouse. gov/briefing-room/statementsreleases/2021/09/02/ press-briefing-by-presssecretary-jen-psaki-and-deputynational-security-advisor-for-cyberand-emerging-technologies-anneneuberger-september-2-2021/

5 https://www.whitehouse.gov/ briefing-room/presidentialactions/2021/05/12/executiveorder-on-improving-the-nationscybersecurity/

6 https://images.forbes.com/ forbesinsights/StudyPDFs/IBM_ Reputational_IT_Risk_REPORT.pdf

7 https://www.dfs.ny.gov/industry_ guidance/cybersecurity

8 https://content.naic.org/sites/ default/files/inline-files/MDL-668.pdf

9 https://www.jdsupra.com/ legalnews/naic-insurance-datasecurity-model-law-1854646/

10 https://www.independentagent. com/research/agencyuniversestudy/ agency-universe.aspx

11 https://www.insurancejournal. com/magazines/magfeatures/2022/11/07/693270.htm

2022 & 2021

IA&B MEMBERS TAKE THEIR MESSAGE TO WASHINGTON, D.C.

Over 30 IA&B members from Pennsylvania and Delaware traveled to Washington, D.C. in late April for the Big “I” Legislative Conference. The annual event brings together over 1,000 independent agents from across the country to talk with lawmakers about issues important to them and their clients.

Are you interested in attending the 2024 Legislative Conference in Washington D.C.? Or would you like to get involved in IA&B’s government relations efforts on the state level? Contact IA&B Government Affairs Director John Savant at JohnS@IABforME.com or 800-998-9644, ext. 607.

“I would strongly recommend getting involved…. It is important to understand how politics shape our industry.”

“Lobbying on Capitol Hill is always an amazing experience.”

– Chaz Timmons, PDM Insurance Agency, Biglerville, PA

“I loved passing on an important message to help all of us.”

U.S.

5-Caroline

6-Sarah

1-Kevin Thomas, of CBM Insurance Agency; Bryan Willey, of BBSI; Jason Rodriguez (seated), of Prominent Insurance Services; Robby Sheehan, of BBSI; Kyle Brasure, of Wilgus Associates; Claire Pantaloni, of IA&B; and Diana Hornung Hanby, of IOA National 2-Chaz Timmons and Jayme Barthalow (seated), of PDM Insurance Agency, with U.S. Rep. John Joyce (PA-13) 3-Chuck Joiner, of Alera Group; Sarah Brown, of Keller-Brown Insurance Services; Jill Nye, of Gunn-Mowery; Shayne McIntosh, of JPI Insurance Associates; U.S. Rep. Scott Perry (PA-10); Chris Gebhard, of Hoaster Gebhard & Co.; Jason Ernest, of IA&B; and Mark Monroe, of Griffith Insurance 4-Len Gieseler, of Evans Hauseman & Richard; Mark Monroe, of Griffith Insurance; Claire Pantaloni, of IA&B; Chris Miller, of Miller Insurance Protection Team; and Mark Sammarone, of Arthur Hall Insurance; at the office of

Rep. Houlahan (PA-6)

Beohm, of the Pennsylvania Insurance Department; John Savant, of IA&B; and PA Sen. Chris Gebhard, of Hoaster Gebhard & Co.

Brown, of Keller-Brown Insurance Services; Kate Dawson, of Ferri Dawson Insurance Group; Shayne McIntosh, of JPI Insurance Associates; and PA Acting Insurance Commissioner Mike Humphreys

– Kevin Thomas, CBM Insurance Agency, New Castle, DE

– Jill Nye, Gunn-Mowery, Lemoyne, PA

Get to Know …

Sumer Fickes, Business Process Senior Director

Years with IA&B:

17 years in July

Role at IA&B:

Project manager for our proprietary software (Viable) and internal IT support.

Best part of your job:

No two days are the same – it’s the best (and sometimes the worst) part of my job. Some days I’m problem-solving for our members or event participants, some days I’m troubleshooting an issue for a staff member or working with our external IT team on a new project, and other days I’m testing and working on process improvements for our proprietary software. Whatever I’m doing, there’s never a dull moment!

What did you do before working at IA&B?

I worked at a veterinary hospital during high school and college and was the manager of a family-owned restaurant prior to being hired as an accounting assistant for IA&B. I was then promoted to accounting manager. A few years later, I transitioned to Operations Manager/ Director before finally moving into my current position.

What keeps you busy outside of work?

My family and friends – especially my husband and grandkids. My husband is an avid fisherman, so we also spend hours on our boat each year. And I enjoy reading, gardening, canning, and scrapbooking when I can find the time. You can reach Sumer at: