Industry News

Recently, PIA National has become aware of pending lawsuits against independent insurance agencies in several states. The suits allege that the agencies’ websites deny equal access to people with disabilities in violation of the Americans with Disabilities Act (ADA) because the sites do not offer accommodations for use by disabled people. This issue is a source of still-developing law around the country.

According to a recent study from Valassis, 37% of consumers are more excited to receive their mail each day than before the pandemic. Is your agency marketing taking advantage of this unexpected trend?

Using the PIA DMV: PIA’s Direct Marketing Vault, you can capitalize on the resurgence of direct mail while also reaching those same prospects online through our direct mail and digital advertising services, available exclusively to PIA members. And now, through the PIA Member Reimbursement Program, PIA members can get $250 back when launching a PIA DMV marketing campaign.

Easy as 1-2-3!

To assist Californians displaced by the current and recent wildfires throughout the state, Insurance Commissioner Ricardo Lara issued a notice to all California property and casualty insurance companies urging them to cover additional living expenses (ALE) for those policyholders who remain under mandatory evacuation.

Mississippi Insurance Commissioner Mike Chaney advises consumers to purchase masks, hand sanitizer, and disinfectants and add them to their “Go Bag” in case they must evacuate because of a storm. A Go Bag’s contents should include cash (if the power goes out, credit cards won't work). Consumers should keep cash on hand for replenishing supplies. Medications also need to be packed because pharmacies might be closed, and hospitals could be overwhelmed.

A battery-powered radio will be useful for getting news and information if the electricity is out and cell towers are down. Every family member and pet requires a gallon of water per day if tap water becomes unsafe to drink. Chaney adds that consumers should include a copy of their insurance policies so they can quickly file a claim once the danger has passed. Consumers should review and be familiar with their insurance coverage. Other important documents include Social Security cards, passports, birth certificates, and driver’s licenses.

As delays continue to plague the process, policymakers are still negotiating over what to include in the next coronavirus relief package, which is likely to be the last major coronavirus law passed before the presidential election. PIA National continues to support the creation of a Recovery Fund that will enable small businesses to receive the relief they need to stay afloat and keep their workers employed. PIA National is also working on other vital issues that we believe need to be addressed in pending legislation. -more-

Google is allowing employees to work from home through next summer as it braces for longer-term effects of COVID-19 on the workplace and beyond. “To give employees the ability to plan ahead, we’ll be extending our global voluntary work from home option through June 30, 2021 for roles that don’t need to be in the office,” wrote Google CEO Sundar Pichai in a memo obtained by CNN Business. “I hope this will offer the flexibility you need to balance work with taking care of yourselves and your loved ones over the next 12 months.”

Observers say treating remote working situations as a temporary disruption to an organization now may need rethinking.

Many small business owners may not think they need cyber liability coverage, but small businesses are extremely vulnerable to security threats. And that’s why PIA members can sell PIA cyber insurance to their clients!

PIA and ABA Insurance Services have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program that responds to the most common threats facing small and mid-sized businesses.

The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as social engineering, funds transfer fraud, ransomware, network interruption, data breach, network security, and media liability. In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to Great American’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

Agents are able to purchase the same PIA cyber insurance for their agency for a significantly reduced rate through their local PIA affiliate producers.

Getting started is easy. Protect your clients today.

On June 3, the U.S. Senate passed H.R. 7010, the Paycheck Protection Program Flexibility Act, by unanimous consent. The bill extends the window for businesses to be able to spend the funds loaned under the program. The House passed this bill on May 28^th. It was signed into law by the president.

The legislation allows businesses that have received Paycheck Protection Program (PPP) loans to spend a smaller percentage of the money, 60 percent instead of the current 75 percent, on payroll and other qualifying expenses and still maintain forgiveness eligibility.

PIA National had urged Congress to repeal the PPP’s payroll requirement altogether, a move that would have provided small businesses with maximum flexibility as they struggle to stay solvent during this difficult time. The bill does give businesses some new flexibility by allocating more time for them to use their PPP funds—24 weeks instead of eight—and extending the deadline for rehiring workers from June 30 to the end of this year.

READ: S&P Analysis: The Paycheck Protection Program Impact On Jobs: (More) Help Wanted

PIA National will continue to work to improve the PPP in future legislation considered by Congress.

A Kaiser Family Foundation poll released on May 27 found that 48 percent of Americans said they or a family member has skipped or delayed medical care because of the pandemic, and 11 percent of them said the person’s condition worsened as a result of the delayed care. Since March, hospitals, health systems, and private practices dramatically reduced inpatient nonemergency services to prepare for an influx of COVID-19 patients. The poll also found that about 3 in 10 adults have had trouble paying household expenses.

According to the poll, nearly 7 in 10 of those who had skipped seeing a medical professional expect to get care in the next three months. Despite a significant number of adults saying they delayed care, 86 percent of adults said their physical health has “stayed about the same” since the onset of the outbreak in the United States. Nearly 40 percent of Americans, however, said stress related to the coronavirus has negatively affected their mental health.

Nearly 1 in 4 adults said they or a family member in the next year will likely turn to Medicaid, the federal-state health insurance program for low-income residents.

As the global pandemic of COVID-19 continues to affect the way we do business, PIA is highlighting specific programs that may be useful to you right now. We hope this is helpful.

Why care about this now? During this pandemic, your clients are finding themselves at home working remotely. Computer hackers can use this time to deploy aggressive ransomware attacks, and sophisticated social engineering scams to try and trick them into divulging sensitive information, so it is important that you educate your clients and protect them. As a PIA member, you can offer cyber liability insurance that responds to the most common threats facing small and medium-sized businesses.

What is it? PIA and ABA Insurance Services (ABAIS) have worked with Great American E&S Insurance Company (rated A+ by A.M. Best) to create a cyber insurance program tailor-made for small and mid-sized businesses. The PIA enhanced cyber insurance policy covers both first- and third-party loss for the most common cyber risks such as:

• Social engineering

• Funds transfer fraud
• Ransomware/extortion
• Network interruption
• Data breach
• Network security
• Media liability

In addition to the seven coverage parts, PIA members’ clients are provided with special PIA enhancements and reduced rates compared to ABAIS’s standard program for social engineering coverage.

PIA members who sell the PIA cyber insurance receive 12.5% in sales commission.

If you’re interested in purchasing cyber insurance for your agency, you can purchase the same PIA cyber insurance for a significantly reduced rate through your local PIA affiliate producers.

The insurance industry largely sidestepped the economic onslaught of the coronavirus outbreak, losing 4,400 jobs in April as the pandemic ballooned the nation’s unemployment rate to 14.7 percent, according to the U.S. Department of Labor’s Bureau of Labor Statistics (BLS). The April national unemployment rate represents the largest one-month jump since records began in 1948, the BLS said.

However, the industry-wide drop in the insurance industry was much lower than that seen in other sectors of the economy, representing a small proportion, about 0.16 percent, of the 2,813,100 workers employed in the insurance industry.

Meanwhile, BLS released figures for employment at the nation’s insurance agencies and brokerages in March 2020 over February 2020, reporting they were up 0.20 percent with 852,400 jobs. Employment within the direct property/casualty insurers sector was flat.

As stay-at-home measures were introduced in response to the COVID-19 pandemic, several scams and cybersecurity risks emerged as more people began spending more time on digital devices. The National Association of Insurance Commissioners (NAIC) notes that cyber criminals are targeting companies and individuals with scams involving vaccines and treatment, shopping, charities, phishing and malware, apps, investments, and vulnerable populations.

READ: Alert Clients to These COVID-19 Scams

Like many regulators in recent weeks, the Utah Insurance Department has been alerting consumers to various COVID-19 related scams, including fraud aimed at Americans’ economic stimulus dollars. Utah insurance regulators also have been concerned with COVID-19 fraud aimed at seniors. To that end, the Utah Insurance Department recently showcased tips from the Coalition Against Insurance Fraud, such as never responding to robocalls, unknown texts, emails, or door-to-door solicitors; avoiding “free” COVID-19 tests, vaccines, supplies, or treatments; and verifying any requests for Medicare or Medicaid information before responding

PIA National is pleased to be an active member of a new coalition urging the creation of a COVID-19 Recovery Fund for businesses and employees. PIA National along with over 100 organizations from the business and insurance communities, have formed America’s Recovery Fund, a group dedicated to developing a common-sense solution for businesses struggling to cope with the economic fallout of the coronavirus crisis.

The coalition calls for a COVID-19 Recovery Fund (Recovery Fund) within the U.S. Department of the Treasury. The Fund is modeled after the September 11th Victim Compensation Fund, operated by the federal government, and run by a presidential appointee with the authority to enter into contracts with interested businesses to administer the Fund and facilitate the distribution of federal funds to affected businesses.

“PIA has always been about providing solutions to problems in a proactive way, and that goal has become more essential than ever during this difficult time,” said Mike Becker, executive vice president and CEO of PIA National. “To that end, we’ve worked with our industry partners to develop a solution for businesses that have been hard hit by the negative economic consequences related to the coronavirus, while not upending insurance practices.” -more-

PIA Action Alert

Legislation is currently being drafted to create the COVID-19 Recovery Fund, but a bill has not yet been introduced. In the meantime, PIA National has issued this action alert for PIA members to send to Congress and urge them to support the creation of a COVID-19 Recovery Fund. Please take action today!

WASHINGTON -- The National Association of Professional Insurance Agents (PIA National) is pleased to be an active member of a new coalition urging the creation of a COVID-19 Recovery Fund for businesses and employees. PIA National along with over 100 organizations from the business and insurance communities, have formed America’s Recovery Fund, a group dedicated to developing a common-sense solution for businesses struggling to cope with the economic fallout of the coronavirus crisis.

The proposal creates a COVID-19 Recovery Fund (Recovery Fund) within the U.S. Department of the Treasury. The Fund is modeled after the September 11th Victim Compensation Fund, operated by the federal government, and run by a presidential appointee with the authority to enter into contracts with interested businesses to administer the Fund and facilitate the distribution of federal funds to affected businesses.

“PIA has always been about providing solutions to problems in a proactive way, and that goal has become more essential than ever during this difficult time,” said Mike Becker, executive vice president and CEO of PIA National. “To that end, we’ve worked with our industry partners to develop a solution for businesses that have been hard hit by the negative economic consequences related to the coronavirus, while not upending insurance practices.”

In recent weeks, policymakers in some states have begun proposing a requirement for insurers to retroactively recognize financial losses triggered by the coronavirus outbreak as part of their customers’ business interruption (BI) coverage. Two bills introduced in Congress would rewrite contracts to apply business interruption coverage to provisions that explicitly exclude losses due to viruses, pandemics, etc. PIA National believes such actions to be shortsighted and dangerous.

“Only about one-third of American small businesses have business interruption coverage,” said Becker. “As such, retroactive BI proposals fall far short of helping all businesses. PIA has helped create a real solution for all businesses struggling as a result of COVID-19, and it doesn’t upend existing insurance contracts and practices.”

The Recovery Fund would provide short-term liquidity for small businesses by creating a simple form that could be electronically filed to help businesses maintain solvency while continuing to pay their employees. The Recovery Fund would protect lost wages for employees unable to work because of COVID-19 infection, quarantine, or operational shutdown; preserve jobs through payroll assistance for temporarily closed businesses that continue to retain their employees; and provide solvency assistance for businesses in danger of failing as a result of the pandemic.

PIA National will continue to work with Congress and the business community on effective, efficient solutions that provide the necessary relief to our economy and help our nation recover.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes and businesses. PIA’s web address is www.pianet.com.

The U.S. Occupational Safety and Health Administration will not enforce recordkeeping requirements for COVID-19 in most industries located in places where there is ongoing community transmission, according to a memo released Friday.

This updated guidance will not apply to health care employers, emergency response organizations or correctional institutions, which are still required to make work-relatedness determinations of COVID-19 acquisitions. This announcement reverses previous guidance provided by the agency in March reminding employers that COVID-19 transmission in the workplace, unlike the flu or common cold, would be considered a recordable injury.

Many small business owners may not think they need cyber liability coverage, but small businesses are extremely vulnerable to security threats, especially when working from home.

PIA’s cyber liability insurance, underwritten by Great American E&S Insurance Company (rated A+ by A.M. Best), responds to the most common threats facing small and mid-sized businesses. The policy covers risks such as data breaches, funds transfer fraud, ransomware, network interruption, network security, social engineering, and media liability.

Coverage is available to agents through their local PIA affiliate producers using a simplified, slot-rated quoting process. The policy premium is significantly discounted from those rates found in the standard market and includes enhancements not typically offered by competitors.

PIA members can also protect their clients with the same PIA cyber insurance.

PIA Statement on House Passage of COVID-19 Relief Bill

The U.S. House of Representatives has passed H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, by a voice vote. The Senate passed it on March 25. This bill is the third COVID-19-related bill that Congress has passed, and others may follow. President Trump signed it.

PIA Statement:

“PIA National is pleased the U.S. House approved the $2 trillion emergency relief package, which is intended to provide urgently needed aid to several sectors of the economy,” said PIA National executive vice president & CEO Mike Becker. “Both chambers moved relatively quickly on this legislation, a necessity during this difficult time for businesses.”

PIA is particularly supportive of provisions in the legislation to help small businesses, including loans for those with 500 or fewer employees. These loans may be converted to grants and partially forgiven if recipient businesses maintain the average size of their full-time workforce. With small businesses across the nation struggling due to the coronavirus, It is more important than ever to financially support them.

The bill also includes a 50 percent refundable payroll tax credit on employee wages, and a delay in employer-side payroll taxes for Social Security until 2021 and 2022. It also makes some sole proprietors and other self-employed workers eligible for the expanded unemployment insurance benefits included in the legislation.

“PIA National has already been actively developing legislative solutions for the next potential COVID-19 package to ensure small businesses are able to stay viable in these unprecedented times,” Becker said.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes and businesses. PIA’s web address is www.pianet.com.

Late on March 25, the U.S. Senate passed H.R. 748, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, by a vote of 96-0. This bill is the third COVID-19-related bill that Congress has passed, and others are likely to follow. The U.S. House is scheduled to consider it Friday March 26. President Trump has said he will sign it.

PIA Statement:

“PIA National is pleased the U.S. Senate unanimously approved the $2 trillion emergency relief package, which is intended to provide urgently needed aid to several sectors of the economy,” said PIA National executive vice president & CEO Mike Becker.

Notably, the bill includes provisions to help small businesses, including loans for those with 500 employees or less. These loans may be converted to grants and partially forgiven if recipient businesses maintain the average size of their full-time workforce. With small businesses across the nation struggling due to the coronavirus, it is more important than ever to financially support them.

The bill also includes a 50 percent refundable payroll tax credit on employee wages and a delay in employer-side payroll taxes for Social Security until 2021 and 2022. It also makes some sole proprietors and other self-employed workers eligible for the expanded unemployment insurance benefits included in the legislation.

“PIA National urges the House to pass the bill,” Becker said. “PIA is continuing to work with Congress on a comprehensive approach to provide additional levels of relief to businesses across the country.”

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance but specialize in coverage of automobiles, homes and businesses. PIA’s web address is www.pianet.com.

COVID-19’s impact on global growth and the insurance industry is likely deeper and wider than the current consensus, and could last well into Q3 and beyond, according to this report, authored by Insurance Information Institute (I.I.I.) Vice President and Senior Economist, Dr. Michel Leonard.

Key findings include: economic impact likely to continue into Q3/Q4 2020 and 2021; the event could reduce global GDP growth from 3.3 percent to 2.3 percent and delay recovery by up to 12 months; and fiscal and monetary policy rate cuts will unlikely be effective. The report also summarizes which insurance lines will experience high to low impact, as a consequence of the outbreak. Read special report.

3/5/20

There has been an increase in concern about the spreading coronavirus COVID-19.

PIA has an ongoing partnership with ALM Media, publishers of the National Underwriter, PC360 and FC&S. They have developed a webpage, Instant Insights, that collects all coronavirus outbreak stories and resources in one place.

Agencies should consider implementing safeguards to reduce exposure to illness. Steps should include but are not limited to:

-        Encourage sick employees to stay home. Suspend requirements for notes from healthcare providers – those offices are likely to be extremely busy, and it’s better to keep those with the virus away from others. Employees should not return to work unless they are free of a fever (100.4 degrees) for at least 24 hours, without the use of fever-reducing medications. Extend sick leave even to employees who aren’t ordinarily entitled to it, so that employees do not feel compelled to come to work.

-        Consider encouraging employees who are able to do so to work remotely. If remote work isn’t possible, allow employees to stagger shifts. Test remote work policies and staggered shift options now, before you are in an emergency situation.

-        Test remote work capabilities, including remote access to agency server, management system, phone, voicemail, and email.

-        Develop a communication plan to keep employees updated on the status of the virus. Ensure employees know what the communication plan is.

-        Develop an activation plan and ensure all employees know what to expect.

-        Provide alcohol-based hand sanitizers around the office and encourage their use. Place in open areas, conference rooms, kitchens, and break rooms.

-        Consider whether business operations can be conducted at alternate locations if the current location is quarantined.

-        If employees are not cross-trained for key tasks, begin cross-training now to avoid gaps in production.

This full pandemic checklist available from FC&S Coverage Interpretations can be found by clicking here.

Another helpful resource is Assessing the Personal Impact of the Coronavirus. This article looks at the current situation, the likelihood of spread, and the potential insurance impact and coverage questions raised by COVID-19.

The Centers for Disease Control and Prevention (CDC) is also a good resource; its coronavirus page has information about how coronavirus is spread, travel tips and restrictions, and information for specific audiences like businesses and schools.

State Departments of Insurance

Insurance departments across the United States are planning or executing actions to eliminate barriers to testing and treatment for COVID-19. [Best’s News 3/5/20]

The New York Department of Financial Services took the lead March 2 by issuing an order that health insurers in New York must waive cost-sharing for procedures and testing for the coronavirus among a number of other steps, according to Gov. Andrew Cuomo’s office. Pennsylvania officials also are discussing ways to lower barriers to testing.

Other state insurance departments are aware of New York’s action and considering whether they should announce similar plans as well.

Some agencies, including the Illinois Department of Public Health, are covering the cost of coronavirus testing, along with the U.S. Centers for Disease Control and Prevention.