by Insurance Agents & Brokers Service Group Inc

Madison Q. Ziemba

Pictured: IA&B members and staff at the January "Evening in Annapolis" event, where they met with over 25 Maryland Delegates and Senators to kick off the state's 2024 legislative session.

MD LEGISLATIVE SESSION IN FULL SWING

In the first weeks of Maryland’s 90-day session, nearly 1,000 bills were filed in the state legislature. IA&B is tracking dozens of proposals that could have an impact on independent agents or the insurance industry at large. At the time this issue of Primary Agent went to print, these included:

HB 1227/SB 1015: Altering the types of elements and units for which a council of unit owners is required to maintain certain property insurance; and limiting instances when an owner of a detached unit within a condominium is required to carry homeowners' insurance on the entirety of the unit. Introduced in response to last year's passage of HB 98.

HB 36/SB 231: Prohibiting a public adjuster, or anyone acting on behalf of a public adjuster, from soliciting or attempting to solicit a client within 24 hours after a loss or damage as covered by an insurance contract or between the hours of 8 PM and 8 AM, and extending the amount of time an insured over the age of 65 may rescind or cancel a contract with a public adjuster to seven days.

HB 83: Repealing limitations on noneconomic damages in civil actions for personal injury or wrongful death.

HB 229/SB 254: Requiring motor vehicle insurers to participate in a real-time verification program for insurance policies for law enforcement purposes.

SB 172: Prohibiting an insurer, with respect to private passenger motor vehicle insurance, from increasing a premium based on the claims history of an insured where two or fewer of the claims within the immediately preceding three-year period were for accidents or losses caused by a collision with a free-roaming wild animal and for which the insured was not at fault for the loss.

HB 265/SB 336: Repealing education and experience requirements for insurance producers, including property and casualty, life, health, annuities, and certain limited lines licenses. Examination requirements are unaffected.

Monitor Agent Headlines for updates throughout the session, which runs until April 8. Need additional information? Contact IA&B Government Affairs Director John Savant at JohnS@IABforME.com or 717-918-9214.

BIG “I” LEGISLATIVE CONFERENCE

IA&B members in Pennsylvania and Delaware: Join IA&B for the Big “I” Legislative Conference coming to Washington, D.C. on April 10-12. The annual event brings together approximately 1,000 independent agents from across the country to talk with lawmakers about issues important to them and their clients.

To register, visit: IABforME.com/eventregistrations/?eventId=6904

PA WORKERS’ COMP RATES TO DROP

Workers’ compensation policies effective on a new and renewal bases as of April 1, 2024 will be impacted by revised loss costs and related values. The Pennsylvania Insurance Commissioner earlier this winter approved the Pennsylvania Compensation Rating Bureau’s (PCRB) proposal as filed for an overall average change in collectible loss costs of -7.88%.

While attending the PCRB’s annual meeting late last year, IA&B received an overview of the data used to support the loss cost filings. The data analyzed boils down to the interaction between frequency and severity of claims and the resulting trends that emerge. As in prior years, the increases in severity are more than offset by a continuing decline in frequency. Of note:

▲ Most of the year’s change is driven by the fact that the year 2018 is

now dropping from the sliding 3-year period analyzed. 2018 was particularly heavy in large losses.

▲ While the data used is from policy years 2019 to 2021, approximately 1,400 COVID-19 claims totaling $14M were altogether excluded from the calculations to avoid skewing trends with one-time disruptions. Longer-term disruptions caused by the pandemic (such as the increase in hybrid/remote work) are expected but should be naturally embedded and reflected in future rates. The changes will become effective on April 1, 2024.

▲ The employer assessment is slightly reduced.

IA&B WELCOMES DIRECTOR OF CAREER SERVICES

IA&B is pleased to announce the hire of Heather Ulrich as Director of Career Services. In this newly created role, Ulrich will oversee industry recruitment efforts throughout Pennsylvania, Maryland, and Delaware. This includes supporting the IA&B School of Insurance, which is scheduled to launch by the end of the year.

“IA&B’s strategic plan focuses heavily on bringing talent into our industry and, specifically, into our member agencies,” said IA&B President & CEO Jason Ernest. “Heather will be instrumental in this undertaking.”

Ulrich graduated from The Pennsylvania State University with a degree in applied psychology. She brings a decade of experience in project management, outreach, and advocacy with social service organizations in Berks County, PA.

IA&B members can reach her at HeatherU@IABforME.com or 717-918-9441.

REMINDER: EXPERIENCE RATING METHODOLOGY CHANGES

Changes are coming to the Pennsylvania experience rating methodology that will impact your insureds’ Workers Compensation policies. Learn what’s new by watching the recorded webinar, “Pennsylvania Experience Rating Plan: Preparing for the 4/1/24 Changes.”

This webinar is hosted by IA&B President & CEO Jason Ernest, Esq. and presented by Peter Gunn, Travelers Director of Workers Compensation Product. As an IA&B member, you have complimentary access to this recorded webinar, the presentation slides, and the corresponding Q&As.

ABOUT THE CHANGE

Effective April 1, 2024, the Pennsylvania Compensation Rating Bureau (PCRB) is making substantive updates to its experience rating methodology. This is the first comprehensive overhaul in more than 25 years, designed to complement the new Experience Rating Plan and newly designed Experience Modification Calculator. PCRB Circular No. 1801 introduces the modernized experience rating worksheet, which is now available.

IABforME.com/2024/01/24/prepare-now-for-experience-rating-methodology-changes/