Industry News

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.

An association representing Nationwide Insurance agents who are transitioning to independent agent status has entered into an agreement with the National Association of Professional Insurance Agents (PIA National). Under the agreement, the Nationwide Insurance Independent Contractors Association’s (NIICA’s) hundreds of members across the nation will become members of PIA.

On April 16, 2018, Columbus, Ohio-based Nationwide announced its decision to shift entirely to an independent agency distribution model by July 1, 2020.

“We extend the warmest welcome to all the Nationwide agents who will be joining the ranks of independent agents, and also joining PIA,” said PIA National President Dennis D. Kuhnke. “This is yet another illustration that the independent agent distribution system is by far the insurance distribution system of choice and that PIA is the best choice for independent agents.”

“NIICA has throughout its 33-year history always honored the dignity and value of agents,” said NIICA President Thom Polvogt. “Since our beginning, we have been pro-agent, pro-client, pro-company, and pro-active. Now that our agents are transitioning fully into the independent agency system, we are proud to become part of PIA—an association that shares our values.”

WASHINGTON – An association representing Nationwide Insurance agents who are transitioning to independent agent status has entered into an agreement with the National Association of Professional Insurance Agents (PIA National). Under the agreement, NIICA’s [the Nationwide Insurance Independent Contractors Association’s] hundreds of members across the nation will become members of PIA.

On April 16, 2018, Columbus, Ohio-based Nationwide announced its decision to shift entirely to an independent agency distribution model by July 1, 2020. At the time of its initial announcement, Nationwide already had relationships with more than 10,000 independent agents across the United States.

“We extend the warmest welcome to all the Nationwide agents who will be joining the ranks of independent agents, and also joining PIA,” said PIA National President Dennis D. Kuhnke. “This is yet another illustration that the independent agent distribution system is by far the insurance distribution system of choice and that PIA is the best choice for independent agents.”

“NIICA has throughout its 33-year history always honored the dignity and value of agents,” said NIICA President Thom Polvogt. “Since our beginning, we have been pro-agent, pro-client, pro-company, and pro-active. Now that our agents are transitioning fully into the independent agency system, we are proud to become part of PIA—an association that shares our values.”

“PIA welcomes all of the Nationwide agents who will be joining PIA,” said PIA chief executive officer (CEO) Mike Becker. “We encourage all of the agents who will be joining our association as a result of this agreement to take full advantage of all the many business-building programs offered by PIA that help add to an agency’s bottom line. In addition, PIA advocates for you in Congress and throughout the insurance industry.”

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 members are Local Agents Serving Main Street America ^SM. PIA’s web address is www.pianet.com.

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 ABAIS 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 ABAIS’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.

Pearl River, NY, December 11, 2019 – The National Association of Professional Insurance Agents (PIA) and ACORD, the global standards-setting body for the insurance industry, today announced a joint program to provide qualifying PIA member agencies with a complimentary license to use ACORD Forms.

PIA was founded in 1931 to educate and inform agents, promote cooperation among agents and carriers, and advocate for the independent agent community. Today it represents agents in all 50 states, Puerto Rico, and the District of Columbia.

ACORD, a not-for-profit industry organization, has been providing forms to the insurance industry since 1972. ACORD currently maintains a library of over 850 forms in a variety of formats, widely used throughout the global industry. Under this new agreement, PIA National will fund ACORD Form end user licenses for the majority of its member agencies who receive ACORD Forms through their agency management systems, allowing them to claim these licenses free of charge.

“PIA National is pleased to partner with ACORD to ensure that the majority of PIA member agencies can continue to access and use ACORD forms free of charge,” said PIA National CEO Mike Becker.

All agents and brokers using ACORD Forms through an agency management system, or other software provided by third-party vendors, are required to obtain licenses directly from ACORD. Users who are not already members or subscribers of a qualifying ACORD program are able to purchase a stand-alone End User License from ACORD. Under this agreement, PIA members with annual group gross P&C revenue of under $50 million will be eligible for a license from ACORD, with no additional payment necessary.

Agencies with annual group gross revenue under $1 million can also obtain ACORD Forms directly from ACORD by subscribing to the Advantage Plus program. PIA members eligible for this program will be able to subscribe at a discounted rate.

For more information on ACORD Forms, see www.acord.org/forms.

About PIA National

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 members are Local Agents Serving Main Street America ^SM. PIA’s web address is www.pianet.com.

PIA members can sell the same great PIA cyber insurance coverage that many have already purchased for their own agency.

PIA’s cyber insurance is the first cyber insurance program tailor-made for small and medium-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
• 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.

Getting started is easy. Start protecting your clients today.

Need more information? Watch a prerecorded webinar or visit the PIA National website.

Haven’t purchased cyber insurance for your agency yet? Contact your local PIA affiliate.

WASHINGTON – The National Association of Professional Insurance Agents (PIA National) commends the U.S. Senate Banking, Housing and Urban Affairs Committee for acting today to pass legislation to reauthorize the current iteration of the Terrorism Risk Insurance Act (TRIA), for seven (7) years. The bill passed the committee unanimously by voice vote.

“PIA made it a key priority this year to have the TRIA program reauthorized well before its scheduled expiration of December 2020,” said Jon Gentile, PIA National Vice President of Government Relations. “We are pleased our advocacy has paid off with the Senate Banking Committee acting in a timely manner, the same week a companion measure passed the U.S. House. This bill makes minimal changes to the program and provides a long-term reauthorization.”

“This bill should go to the Senate floor as soon as possible so TRIA reauthorization can be finalized before the end of 2019,” Gentile said. “Bipartisan agreement on legislation is rare in Congress these days, and this opportunity to get TRIA over the finish line should not be squandered. PIA National calls on the Senate to pass this bill before the end of the year.”

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 members are Local Agents Serving Main Street America ^SM. PIA’s web address is www.pianet.com.

Facing widespread losses from terrorism after the 2001 terrorist attacks, Congress created the Terrorism Risk Insurance Act (TRIA) to ensure the availability of terrorism-related insurance coverage while providing the private insurance industry with certainty regarding the outer limits of the financial risks it is undertaking.

While yet another extension of the terrorism insurance program is being debated in Congress, there are new calls for a similar program for cyber risk. Some suggest that now Congress should consider a similar mechanism to address cyberattacks, especially given that cyber activity has increased as a part of the global economy and demand for insurance coverage has risen.

READ: A federal backstop for insuring against cyberattacks?

 

The U.S. Department of Labor has announced a final rule for overtime pay under the Fair Labor Standards Act (FLSA).

Here are the main points to know:

• raising the “standard salary level” from the currently enforced level of $455 to $684 per week (equivalent to $35,568 per year for a full-year worker) (this is the amount that was in the proposed rule on which PIA commented earlier this year);
• raising the total annual compensation level for “highly compensated employees (HCE)” from the currently-enforced level of $100,000 to $107,432 per year;
• allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices (this also reflects the proposed rule that was issued earlier this year); and
• revising the special salary levels for workers in U.S. territories and in the motion picture industry.

The DOL says the new rule will make 1.3 million American workers newly eligible for overtime pay under the FLSA.

PIA members can sell the same great PIA cyber insurance coverage that many have already purchased for their own agency.

PIA’s cyber insurance is the first cyber insurance program tailor-made for small and medium-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 ABAIS’s standard program for social engineering coverage.

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

Getting started is easy. Start protecting your clients today.

Need more information? Attend a webinar on October 2 at 2 PM ET.

Haven’t purchased cyber insurance for your agency yet? Contact your local PIA affiliate.

 

There has been a widespread easing of rates for both individual and small-group Affordable Care Act (ACA) markets, according to state rate filings. A report from the Kaiser Family Foundation credits the easing of prices to innovations such as reinsurance programs, which it said have “proven popular across the ideological spectrum.

In Washington state, for example, 13 health insurers filed an average proposed rate increase of 0.96% for the 2020 individual market, a record low. Montana’s three insurers providing coverage on the individual market proposed average rate decreases of at least 6.7 percent for 2020. Proposed rates in Delaware, which has only one carrier statewide — Highmark Blue Cross Blue Shield of Delaware — would go down nearly 6 percent, according to the state Insurance Department. Even in states where individual rates are rising, growth is slowed. There are exceptions. In Louisiana, for example, individual rates are proposed to increase 11.7 percent.

The moderation of rates follows spikes in 2017 and 2018. Health policy experts predict that for 2020, average unsubsidized ACA individual market premiums will only be going up an average of less than one percent nationally.

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

PIA and ABAIS 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 ABAIS’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.