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News & Notes
THANK YOU TO OUR VOLUNTEER LEADERS
We offer our sincere thanks to the following member agents who recently ended their terms on the IA&B Board of Directors. Their contributions of time and expertise helped to provide strategic direction for the organization, which will benefit our membership for years to come.
Murray Insurance Associates Inc. Lancaster, PA
Hampson-Mowrer Agency, LLC Bethlehem, PA
DCRB PROPOSES DROP IN WC RATES
The Delaware Compensation Rating Bureau (DCRB) proposed an overall change in loss costs of -7.24% and in residual market rates of -11.18% effective Dec. 1, 2023. At the time this publication went to print, the Department of Insurance was reviewing the filing.
DCRB.com
NEW FLOOD INSURANCE CE REQUIREMENTS IN MD
As of Oct. 1, 2023, all Maryland licensees selling Flood, Homeowners’, or Commercial Property insurance must obtain at least 2 hours of flood-related CE. Previously, this requirement only applied to those who sold Flood insurance.
IA&B offers “Flood Insurance, FEMA, and the NFIP,” a live webinar approved for 3 FLD CE credits in Maryland. It will be offered next on Nov. 1, 2023.
IABforME.com/ eventregistrations/?eventId=6606
NFIP RENEWAL POLICY CHANGE
Effective Jan. 1, 2024, National Flood Insurance Program (NFIP) renewal policies will require Agent and Agency National Producer Numbers (NPNs). Due to renewal processing times, policies will need to be updated with NPNs in advance of the new year.
In addition, some WYO carrier systems may not be able to populate the necessary NPNs and could require additional lead time to incorporate the information on the policy. Watch for communication from your WYO carrier in the weeks ahead.
As a reminder, NPNs have been required for new NFIP business since spring 2019.
APPROVAL OF EXPERIENCE RATING METHODOLOGY CHANGES IN PA
The Pennsylvania Insurance Commissioner recently approved the Pennsylvania Compensation Rating Bureau’s (PCRB) modifications to its experience rating methodology. Effective April 1, 2024, the changes are meant to improve the predictive accuracy of the rating plan and to incentivize worker safety. Of note:
Eligibility for experience rating will drop from $10,000 to $5,000 in premiums.
Variable split points will be introduced to act as a per-accident limit for actual primary losses.
Annual caps are changing through a transition period.
According to the PCRB during talks with IA&B, projections show that smaller risks in particular are expected to receive markedly higher credibility.
This change is an excellent opportunity to revisit your and your staff’s familiarity with experience rating in general and mod worksheets in particular. Agents understanding the modification may have a competitive edge over those who don’t. Watch for an IA&Bmember webinar on the topic in advance of the effective date.
PCRB.com (See PCRB Circular 1799.)
