PIA in Action

Several years ago at a PIA board meeting, we began to discuss an issue brought to us by a member through PIANY’s bi-annual Advisory Councils. Basically, when the New York State Department of Financial Services and Insurance transitioned its licensing requirements to an agent’s birthdate in 2012, the regulation had unintended consequences: While an agent’s license renews on his or her birthday, the agency’s corporate licenses renews on Oct. 31.

Though the move to birthdate renewal expirations was a positive one, it caused agencies to have an even greater burden of continual monitoring and follow up…Keeping track of continuing education credits for multiple licenses for each producer is a big compliance headache for agencies, as it has become extremely involved and confusing. Worst of all: overlapping license expirations cause many agencies to have to double up on education credits simply to comply with timing rules.

Now, I’ve always believed in education—it’s important for all agents. But, being forced to take additional, unnecessary education is a superfluous burden. It certainly is not business friendly! The current rule puts the onus on agents that they are guaranteeing that all sub-licensees have met up to three different state education requirements for the year.

In order to resolve the problem, PIA approached the NYDFS back in 2012. Initially, we were politely pushed aside, though in fairness, I don’t believe the department really understood the problem. But, PIA persisted and after several meetings, the association decided to take this to the legislative arena.

I’m proud to say that PIA approached Sen. James L. Seward, R-51, and Assemblyman Kevin A. Cahill, D-103, who supported a bill to eliminate the need for insurance agents and brokers to take duplicate CE courses for both their individual and agency insurance licenses. The bill would exempt business-entity licenses from CE requirements when all sublicenses can demonstrate they have adequate CE credits to support their individual licenses in effect at the date of renewal. It is a simple fix that the lawmakers recognized and we thank them.

And there’s more good news: The bill passed both the Assembly and Senate. It now will be sent to Gov. Andrew M. Cuomo for his consideration and there’s a good chance it will be passed into law this year. A lot of hard work went into this by PIA staff and agent volunteers and we urge the governor to sign it into law. To all of those who have called their lawmakers, sent emails and contributed in other ways –This is your association in action.

I’ve been part of PIA and a board member for decades and I’m always stunned when a fellow agent tells me they don’t participate in PIA. It is almost a cliché to say that the most active PIA members get the most out of their participation—but, with regard to membership, participation and other contributions, I just don’t get it. Truly, one gets back more than he or she puts into it. And believe me; I have had conversations about PIA membership with many agents. When I ask why an agent wouldn’t invest in their livelihood by supporting PIA, the most common answer is something to the effect of: “PIA does a great job advocating for agents, but they are going to do it whether I am in or not.”

Bologna.

The forces fighting against insurance agents are more than formidable, and they aren’t sitting quietly while PIA fights the good fight. The Trial Lawyers Lobby alone brings millions of dollars each year to bolster politicians in Albany who will support their cause, which almost invariably is against the insurance industry.

I can point to countless ways PIA is always fighting to help independent agents and the independent agency system, including getting this CE reform bill passed through the Legislature.