<?xml version="1.0" encoding="UTF-8"?><rss version="2.0" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" > <channel> <title>May 13 | Insurance Advocate</title> <atom:link href="https://www.insurance-advocate.com/category/2019/may-13-2019/feed/" rel="self" type="application/rss+xml" /> <link>https://www.insurance-advocate.com</link> <description>Since 1889</description> <lastBuildDate>Fri, 14 Jun 2019 13:08:56 +0000</lastBuildDate> <language>en-US</language> <sy:updatePeriod> hourly </sy:updatePeriod> <sy:updateFrequency> 1 </sy:updateFrequency> <generator>https://wordpress.org/?v=6.7.2</generator> <item> <title>May 13, 2019 Cover</title> <link>https://www.insurance-advocate.com/2019/05/13/may-13-2019-cover/</link> <dc:creator><![CDATA[Insurance Advocate]]></dc:creator> <pubDate>Mon, 13 May 2019 18:35:58 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[Covers]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10740</guid> <description><![CDATA[<p><img width="1576" height="2175" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" fetchpriority="high" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1.jpg 1576w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-600x828.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-217x300.jpg 217w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-768x1060.jpg 768w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024.jpg 742w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024-500x690.jpg 500w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024-720x993.jpg 720w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024-360x496.jpg 360w" sizes="(max-width: 1576px) 100vw, 1576px" /></p>]]></description> <content:encoded><![CDATA[<p><img width="1576" height="2175" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1.jpg 1576w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-600x828.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-217x300.jpg 217w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-768x1060.jpg 768w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024.jpg 742w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024-500x690.jpg 500w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024-720x993.jpg 720w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/cover-1-742x1024-360x496.jpg 360w" sizes="(max-width: 1576px) 100vw, 1576px" /></p><!--themify_builder_content--> <div id="themify_builder_content-10740" data-postid="10740" class="themify_builder_content themify_builder_content-10740 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/may-13-2019-cover/">May 13, 2019 Cover</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>M&A is Hotter Than Ever Among Agencies</title> <link>https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/</link> <dc:creator><![CDATA[Insurance Advocate]]></dc:creator> <pubDate>Mon, 13 May 2019 17:23:40 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[Cover Story]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10708</guid> <description><![CDATA[<p><img width="2560" height="1835" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-scaled.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-scaled.jpg 2560w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-scaled-600x430.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-300x215.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-768x551.jpg 768w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-1024x734.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-1024x734-720x516.jpg 720w" sizes="(max-width: 2560px) 100vw, 2560px" /></p><h2>The Numbers Tell The Story</h2> <p> An eye-opening OPTIS Data announcement reports 151 announced insurance agency mergers and acquisitions during the first quarter of 2019, i.e. one more deal than was announced in Q1 2018.The data covers U.S. and Canadian agencies selling primarily property-and-casualty insurance, agencies selling both P&C and employee benefits, and those selling only employee benefits. The report breaks down buyers into four groups: private equity-backed/hybrid brokers, privately held brokers, publicly held brokers, and all others.</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/">M&A is Hotter Than Ever Among Agencies</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p><img width="2560" height="1835" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-scaled.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-scaled.jpg 2560w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-scaled-600x430.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-300x215.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-768x551.jpg 768w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-1024x734.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/growth-chart-edited-1024x734-720x516.jpg 720w" sizes="(max-width: 2560px) 100vw, 2560px" /></p><h3 class="p1">The Numbers Tell The Story</h3> <p class="p1"><b>An eye-opening <a href="http://optisins.com">OPTIS</a> Data announcement</b> reports 151 announced insurance agency mergers and acquisitions during the first quarter of 2019, i.e. one more deal than was announced in Q1 2018.</p> <p class="p1">The data covers U.S. and Canadian agencies selling primarily property-and-casualty insurance, agencies selling both P&C and employee benefits, and those selling only employee benefits. The report breaks down buyers into four groups: private equity-backed/hybrid brokers, privately held brokers, publicly held brokers, and all others.</p> <p class="p1"><span class="s1">According to OPTIS,<span class="Apple-converted-space"> </span>Patriot Growth Insurance Services led all buyers with 18 transactions during the quarter, including 17 closed deals to kick-off their new venture. Other top buyers were Acrisure (16), Hub (12), Gallagher (10), and Broadstreet Partners (10). <a href="http://optisins.com/wp/principals/cunningham/">Timothy J. Cunningham</a>, managing director of OPTIS Partners, an investment banking and financial consulting firm specializing in the insurance industry, and <a href="http://optisins.com/wp/principals/menzer/">Daniel P. Menzer</a>, CPA, a partner with the firm, say:</span></p> <ul> <li class="p2">There are no signs of any changes in buyer or seller behavior, both in terms of appetite for transactions and valuations of agencies for sale.</li> <li class="p2">Individual quarterly totals can fluctuate dramatically from one period to the next and are not necessarily indicative of the overall M&A activity level</li> <li class="p2">There were only 57 unique buyers in 2019, the lowest number in any first quarter since 2014.</li> <li class="p2">Acquisitions in Canada have increased from 1-2% of the total 10 years ago to 6-8% now.</li> </ul> <p class="p1">We present the data reports from OPTIS that explain plainly what is happening on Main Streets among agencies. <b><i>SA</i></b></p> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation/'><img decoding="async" width="1024" height="703" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-4-1024x703.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-4-1024x703.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-4-scaled-600x412.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-4-300x206.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-4-768x527.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-2/'><img decoding="async" width="1024" height="701" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-5-1024x701.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-5-1024x701.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-5-scaled-600x411.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-5-300x206.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-5-768x526.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-3/'><img decoding="async" width="1024" height="702" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-6-1024x702.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-6-1024x702.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-6-scaled-600x411.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-6-300x206.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-6-768x527.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-4/'><img decoding="async" width="1024" height="768" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-7-1024x768.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-7-1024x768.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-7-scaled-600x450.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-7-300x225.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-7-768x576.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-5/'><img decoding="async" width="1024" height="768" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-8-1024x768.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-8-1024x768.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-8-scaled-600x450.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-8-300x225.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-8-768x576.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-6/'><img decoding="async" width="1024" height="708" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-9-1024x708.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-9-1024x708.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-9-scaled-600x415.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-9-300x207.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-9-768x531.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-7/'><img decoding="async" width="1024" height="705" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-10-1024x705.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-10-1024x705.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-10-scaled-600x413.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-10-300x207.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-10-768x529.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-8/'><img decoding="async" width="1024" height="702" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-11-1024x702.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-11-1024x702.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-11-scaled-600x411.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-11-300x206.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-11-768x526.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-9/'><img decoding="async" width="1024" height="702" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-12-1024x702.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-12-1024x702.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-12-scaled-600x411.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-12-300x206.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-12-768x527.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-10/'><img decoding="async" width="1024" height="698" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-13-1024x698.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-13-1024x698.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-13-scaled-600x409.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-13-300x205.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-13-768x524.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-11/'><img decoding="async" width="1024" height="702" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-14-1024x702.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-14-1024x702.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-14-scaled-600x412.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-14-300x206.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-14-768x527.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <a href='https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/powerpoint-presentation-12/'><img decoding="async" width="1024" height="700" src="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-15-1024x700.jpg" class="attachment-large size-large" alt="" srcset="https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-15-1024x700.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-15-scaled-600x410.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-15-300x205.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2019/05/Mar-2019-MA-Report-15-768x525.jpg 768w" sizes="(max-width: 1024px) 100vw, 1024px" /></a> <p>*<em>The full report can be read at <a id="LPlnk547146" href="http://optisins.com/wp/2019/04/march-2019-ma-report" target="_blank" rel="noopener noreferrer">http://optisins.com/wp/2019/04/march-2019-ma-report</a>. </em></p> <hr /> <p><small>Focused exclusively on the insurance distribution marketplace, Chicago-based <a href="http://www.optisins.com/" target="_blank" rel="noopener noreferrer">OPTIS Partners</a> offers merger & acquisition representation for buyers and sellers, including due-diligence reviews. It provides appraisals of fair market value; financial performance review, including trend analysis and internal controls; and ownership transition and perpetuation planning.</small></p> <!--themify_builder_content--> <div id="themify_builder_content-10708" data-postid="10708" class="themify_builder_content themify_builder_content-10708 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/ma-is-hotter-than-ever-among-agencies/">M&A is Hotter Than Ever Among Agencies</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>FinTech Draws High Achievers</title> <link>https://www.insurance-advocate.com/2019/05/13/fintech-draws-high-achievers/</link> <dc:creator><![CDATA[Steve Acunto]]></dc:creator> <pubDate>Mon, 13 May 2019 11:35:05 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[Foreword]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10737</guid> <description><![CDATA[<p>Former Superintendent of the New York State Department of Financial Services (DFS), Maria T Vullo (pictured below), has joined the FinTech Innovation Lab New York as a Regulator-in-Residence. FinTech Innovation helps early—and growth—stage enterprise tech companies accelerate product and business development through engagement with top financial services and venture capital executives. In her three years […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/fintech-draws-high-achievers/">FinTech Draws High Achievers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1">Former Superintendent of the New York State Department of Financial Services (DFS), Maria T Vullo (<i>pictured below</i>), has joined the FinTech Innovation Lab New York as a Regulator-in-Residence.</p> <p class="p2">FinTech Innovation helps early—and growth—stage enterprise tech companies accelerate product and business development through engagement with top financial services and venture capital executives.<span class="Apple-converted-space"> </span>In her three years as superintendent of DFS, Ms. Vullo was responsible for the regulation and supervision of insurance and banking in New York. She prioritized cybersecurity, requiring New York banks and insurance companies to more thoroughly protect themselves and consumers, among other accomplishments. At FinTech, during the 12-week program which launched April 3, she will provide strategic counseling and mentorship to participating enterprise tech companies as well as advise them how to consider regulators’ priorities when collaborating with leading banking and insurance institutions. “Under Maria Vullo’s leadership, New York State has been at the cutting edge of regulation, most notably with her landmark cybersecurity regulation that serves as a model for the nation,” said Maria Gotsch, co-founder of the FinTech Innovation Lab New York and President and CEO of the Partnership Fund for New York City. “Her deep understanding of the regulatory landscape and mindset will be invaluable as this year’s class works closely with senior executives from financial services to accelerate the adoption of new technologies.”</p> <p class="p2">David Treat, a managing director in Accenture’s Financial Services practice and co-head of the Fintech Innovation Lab New York, said, “Having a clear line of sight on the regulatory considerations for fintech and other emerging technologies is critical for startups and established financial institutions alike.” … <b>Speaking of achievers</b>…here are some insurance professionals who have made it over a high bar. <b>The CAS Institute (iCAS), a subsidiary of the Casualty Actuarial Society (CAS)</b> offering credentials and educational opportunities for professionals working in highly specialized quantitative practice areas, today honored those who received <b>the Certified Specialist in Predictive Analytics (CSPA)</b> credential within the last 12 months. This recognition occurred during the 2019 CAS Ratemaking, Product and Modeling (RPM) Seminar in Boston. The CSPA credential “provides evidence of practical knowledge in applied predictive analytics and data science as used in<br /> data-intensive industry sectors”. Since its launch, more than 250 predictive analytics professionals have been awarded the CSPA credential in recognition of their competence as experienced practitioners in the field. Four of the recipients honored today were also the first to qualify for the CSPA through the examination process: “As a result of pursuing the CSPA designation, I went from being someone who knew R at a conceptual level to someone who uses R to develop solutions to challenges that are common in today’s data-rich environment,” said <b>Dominique Yarnell, FCAS, CSPA, with Everest Re Group, Ltd. </b>“I recommend the CSPA designation to anyone looking to stay current with data science as it relates to the insurance industry.” “Since the insurance industry is highly regulated, the way that the predictive analytics is conducted is – and must be – extra cautious and different in a sense. The CAS Institute has established the value of ethics and professionalism in its members’ daily conduct – this is crucial and what separates members from CAS and The CAS Institute from others,” stated Sang Suk Cho, FCAS, CSPA, from ISO/Verisk. More information about the CSPA education program can be found on the iCAS website: <span class="s1">https://thecasinstitute.org</span> .</p> <!--themify_builder_content--> <div id="themify_builder_content-10737" data-postid="10737" class="themify_builder_content themify_builder_content-10737 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/fintech-draws-high-achievers/">FinTech Draws High Achievers</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Higgins’ Initiative Takes Hold</title> <link>https://www.insurance-advocate.com/2019/05/13/higgins-initiative-takes-hold/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 13 May 2019 09:32:37 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[Guest Article]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10731</guid> <description><![CDATA[<p>AGENTS: LET’S GET IT “OUT THERE” NOW Ed Higgins of the Thousand Islands Agency has worn a lot of hats, almost all as a leader and advocate for independent agents, past President of Big I New York, an instructor and author of bright ideas for agents seeking to sustain their businesses, grow them and prosper […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/higgins-initiative-takes-hold/">Higgins’ Initiative Takes Hold</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s1">AGENTS: LET’S GET IT “OUT THERE” NOW</span></p> <p class="p1"><em><span class="s1">Ed Higgins of the Thousand Islands Agency has worn a lot of hats, almost all as a leader and advocate for independent agents, past President of Big I New York, an instructor and author of bright ideas for agents seeking to sustain their businesses, grow them and prosper – as independent agencies are suited to do. Ed has written to us to gain support for an idea that is coming of age again here in New York. </span></em><span class="s1"><em>We present his argument here and thank him for his continued service to the insurance business in New York. –</em><b>SA</b></span></p> <p class="p1">For many years as an independent agent, I have focused on the unique value-added premises independent insurance agents operate upon and have taught many peers how to maximize those same market advantages in programs on how agents can create unique value. That value is there, but it is not “out there” as it should be.</p> <p class="p1">In fact, over the past several years I have watched insurance agency and carrier advertising degenerate into four marketing distinctions as purchasing criteria, begging the insurance consumer to make their choice of an insurance product based upon: easier, faster, cheaper and better.</p> <p class="p1">Insurance professionals know that none of these should be the basis of an insurance purchasing decision any more than it should be the basis of selecting a doctor – except for “better.” Independent agents can easily compete and win on this criterion. As we know all too well, the best example is that of many non-standard policy coverage provisions implemented by some carriers to reduce the risk transferred in a policy of insurance, whereby the price is reduced, but the consumer never knows exactly what they have purchased until it is too late. We should be able to rely upon regulators to protect insurance consumers from misleading advertising and ultra-fine print, but it is the agent who gets the consumer through the night with a sound sleep.</p> <p class="p1">To respond to these new criteria, I have worked to bring together some technically knowledgeable industry experts and we have created the attached position statement document to begin the discussion with state regulators throughout the country asking them to revisit their responsibility to protect the consumer from unfair and incomplete advertisements and inferior policy coverage provisions . We spent five months and multiple revisions developing this position statement to be sure we remained consumer focused and not distribution channel biased. Anything that benefits the insurance consumer has an ultimate beneficial consequence for our distribution channel. This document will soon be published in multiple insurance trade journals as we begin our campaign of change. I am personally prepared to travel the country at my own expense to promote this campaign and talk to the concept of value and honest advertising. (This is my last big project to end a 43 year career as an independent agent who successfully, internally perpetuated my agency to my children in 2012!).</p> <p class="p1"><span class="s2">As of this date, we have formal endorsements from Chris Amrhein, former IIABA Director of Insurance Education, Bill Wilson, former Dean of the IIABA Virtual University both of whom participated in the document content authoring, V. Dan Robinson, President of New York Central Mutual Insurance Company (a substantial regional carrier in New York State with 2017 direct written premium of $539.4 million). Others are joining as you read this, including the publisher of this 130 year old, continuously published magazine for independent agents.</span></p> <p class="p1">Once you read the position paper that follows, perhaps you’d wish to add your name to our list of thought leaders in support of our effort. We are not requesting monetary support, but rather your support as an identified thought leader of influence in your region. Please write to me at <span class="s3">ed@edhiggins.com</span>.</p> <p>___</p> <p class="p1"><span class="s1">Mr. Higgins has more than 40 years of experience as an insurance agent and is Vice President of<span class="Apple-converted-space"> </span>Thousand Islands Agency which he purchased in 1979 and perpetuated to his son<span class="Apple-converted-space"> </span>and daughter in 2012.<span class="Apple-converted-space"> </span>He obtained his CPCU designation in 1981. </span></p> <p class="p1"><span class="s1">He has served as President of the Independent Insurance Agents’ Association of<span class="Apple-converted-space"> </span>New York (IIABNY) and as State National <span class="Apple-converted-space"> </span>Director for New York. He is a past chairman of the Agent’s Council for Technology (A.C.T.). Thousand Islands Agency<span class="Apple-converted-space"> </span>has been an IIABA Best Practices Agency for 12 years. Ed is also a Past Chair of the Applied Client Network User Group.<span class="Apple-converted-space"> </span></span></p> <p class="p1"><span class="s1">Thousand Islands agency has had a paperless operating model since July 2001. The agency has also implemented Real-Time inquiry with </span></p> <p class="p1"><span class="s1">ten insurance companies it represents. The agency received the inaugural National Underwriter magazine sponsored Agency Technology Achievement Awardin 2008. He has taught a variety of insurance related courses <span class="Apple-converted-space"> </span>for the Independent Insurance and Brokers of New York including two classes for the AAI designation, and is a national speaker regarding insurance agency technology and efficient office workflow models as well as value added service models for insurance agents.</span></p> <!--themify_builder_content--> <div id="themify_builder_content-10731" data-postid="10731" class="themify_builder_content themify_builder_content-10731 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/higgins-initiative-takes-hold/">Higgins’ Initiative Takes Hold</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Saving the Insurance Consumer</title> <link>https://www.insurance-advocate.com/2019/05/13/saving-the-insurance-consumer/</link> <dc:creator><![CDATA[Insurance Advocate]]></dc:creator> <pubDate>Mon, 13 May 2019 08:31:07 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[Advocate]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10729</guid> <description><![CDATA[<p>Insurance consumers desperately need to be saved… Saved by those of us who care about their engagement with our industry. As the world has changed, more direct advertising to consumers is occurring in multiple media forums.  Self-service engagement has been touted as having the advantage of an investment of “15 minutes or less.” Price is […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/saving-the-insurance-consumer/">Saving the Insurance Consumer</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><b>Insurance consumers desperately need to be saved</b>… Saved by those of us who care about their engagement with our industry.</p> <p class="p1">As the world has changed, more direct advertising to consumers is occurring in multiple media forums.<span class="Apple-converted-space"> </span>Self-service engagement has been touted as having the advantage of an investment of “15 minutes or less.” Price is often portrayed as the ONLY important criterion in the insurance purchase decision.<span class="Apple-converted-space"> </span>Many direct advertisements (on-line, television, and radio) tout the four pillars of easier, faster, cheaper better.<span class="Apple-converted-space"> </span>These are all misleading to the consumer in one way or another. Examples of price driven purchasing:</p> <p class="p1">•<br /> Progressive’s Flo “Name Your Price Tool” allows the consumer to pick the price they want to pay first and see the coverage after the fact.<span class="Apple-converted-space"> </span>Moving along the price bar does not display changes in coverage until the price is selected by releasing the mouse thereby clearly making price the primary decision criterion.</p> <p class="p1">•<br /> Online quoting systems gather basic information then simply produce a listing of insurance companies and premiums, the implication being that there is no difference between the policies and practices other than price.<span class="Apple-converted-space"> </span>One such online vendor included a statement that appears to be a violation of most Unfair Trade Practices laws: <i>“All auto insurance is exactly the same. It doesn’t matter what company you get it from. It’s just a question of finding the lowest rate. But the reason these companies spend so much on advertising is that there are millions of idiots in this country who actually believe that there is not a difference between different brands of auto insurance. These people have not yet figured out that they are being lied to, that all auto insurance is the same.”</i></p> <p class="p1">•<br /> Insurer advertising often centers on catch-phrases that mislead consumers into believing that coverages are identical between products when the reality is, as explained below, coverage variations among policies are often significantly different. For example:</p> <p class="p2">– “You get the SAME COVERAGE, often for less.”</p> <p class="p2">– “SAME COVERAGE, better value.”</p> <p class="p2">– “SAME COVERAGE, more savings.”</p> <p class="p1">Consumers do not have an opportunity to see the coverage contract form of insurance until AFTER making a decision.<span class="Apple-converted-space"> </span>Consumers should have the opportunity to see the actual contract of coverage for transfer of risk before the purchase decision is made.</p> <p class="p1">The failure of these self-service models and misleading advertisements is to not provide the consumer adequate information to technically distinguish one product from another. <span class="Apple-converted-space"> </span>Some non “ISO-standard” policies result in the consumer having inferior coverage compared to this standard only to be discovered at the time of a claim. <span class="Apple-converted-space"> </span>Examples of those non-standard coverage forms are numerous. The following is a very short list of coverage variations among a number of auto policies in the marketplace:</p> <p class="p3">Undisclosed household residents are excluded. This would include “boomerang” kids who return home but the parents fail to notify their insurer.</p> <p class="p3">Mainstream personal auto policies cover most business use, but some policies exclude business use of nonowned autos or even business use of ANY auto. Employees at businesses often use their personal vehicles for trips to the post office or elsewhere.</p> <p class="p3">Personal auto liability coverage is usually very broad, extending even to the rental of a U-Haul type truck, but some policies have weight limitations and would not cover such rentals.</p> <p class="p3">Some policies exclude any type of delivery, from food to newspapers to cosmetics, whereas others only exclude such use if made available to the general public.</p> <p class="p3">Most auto policies have very limited “racing” exclusions in order to protect the general public but many have absolute racing exclusions.</p> <p class="p3">Some policies exclude or provide limited coverage for accidents involving criminal acts, which could include DUIs or speeding tickets, again being detrimental to the public.</p> <p class="p1"><span class="s1">Some advertisements promise consumers “a full car instead of ¾ of a car” without full disclosure of the terms of coverage.<span class="Apple-converted-space"> </span>Another advertisement promises not to make an additional charge after an automobile accident.<span class="Apple-converted-space"> </span>Any advertisement of specific coverage should clearly identify the specific terms and at least the average cost of the specific additional coverage.</span></p> <p class="p1">State insurance department regulators need to review and revise their positions in this marketplace to protect the consumer against these disservices by taking the following constructive actions:</p> <p class="p1">For All direct to consumer quotations the following disclaimer should be required:</p> <p class="p4">All insurance carrier policies and coverage configurations are not the same.<span class="Apple-converted-space"> </span>Care should be taken to be sure you understand the coverage that is being offered.</p> <p class="p4">The insurance coverage contract will be the basis of any claim payment.<span class="Apple-converted-space"> </span>All carriers doing business in the state are required to make their coverage forms available in their entirety on-line for a consumer to read and compare.<span class="Apple-converted-space"> </span>We recommend that you compare policy language to determine accurate coverage comparisons.</p> <p class="p4">Insurance coverage is an important tool to protect your personal assets. Selection of coverage by price alone is not recommended and you should consult with a licensed insurance professional before making a final coverage purchase decision.</p> <p class="p4">Specific coverage benefits and terms<span class="Apple-converted-space"> </span>are required to be disclosed when a specific coverage benefit is cited.<span class="Apple-converted-space"> </span>Be sure to read those specific coverage terms to be sure you understand what you are purchasing.</p> <p class="p1"><span class="s1">Together, we need to collectively resolve to better serve the insurance consumer with accurate full-disclosure advertising minus the flashy sound-bites. We need to work with regulators to create a consumer-focused protective environment with minimum standards of coverage and required detailed disclosure in ads without misleading statements or promises. Failure to act now potentially will lead to an ultimate total collapse in faith in the industry to respond to claims consistent with logical consumer expectations.</span></p> <p class="p1"><span class="s1"><b>Endorsed by the following thought leaders who believe it is time for change for the benefit of the insurance consumer:<span class="Apple-converted-space"> </span>Chris Amhrein (Past Director of Education, IIABA), Bill Wilson (former Chair of the IIABA Virtual University); Dan Robinson, President and CE New York Central Mutual Insurance Company (Direct<span class="Apple-converted-space"> </span>Written Premium 539.4 Million); Richard A. Poppa,<span class="Apple-converted-space"> </span>former President and CEO of the Independent Insurance Agents and Brokers of New York; Steve Acunto, Publisher of<span class="Apple-converted-space"> </span>“Insurance Advocate” magazine.</b></span></p> <!--themify_builder_content--> <div id="themify_builder_content-10729" data-postid="10729" class="themify_builder_content themify_builder_content-10729 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/saving-the-insurance-consumer/">Saving the Insurance Consumer</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Road Rage</title> <link>https://www.insurance-advocate.com/2019/05/13/road-rage/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 13 May 2019 07:29:56 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[MSO Inc.]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10726</guid> <description><![CDATA[<p>By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor Aggressive driving, also known as road rage, is becoming an increasingly more common occurrence, and too often leads to accidents, injuries and even death. Most people probably do not realize that road rage accidents are often excluded from coverage under a […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/road-rage/">Road Rage</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><strong>By Sue C. Quimby, CPCU, AU, CIC, CPIW, DAE – Assistant Vice President/Media Editor</strong></p> <p class="p1"><span class="s2">Aggressive driving</span><span class="s3">, also known as road rage, is<span class="Apple-converted-space"> </span>becoming an increasingly more common occurrence, and too often leads to accidents, injuries and even death.<span class="Apple-converted-space"> </span>Most people probably do not realize that road rage accidents are often excluded from coverage under a personal or commercial auto policy. Helping clients understand the dangers, and possible insurance implications of, road rage, and ways to help avoid these situations, is another sign of the true insurance professional.</span></p> <p class="p1"><span class="s3">Road rage may be the culmination of a variety of aggressive and dangerous driving behaviors. Aggressive driving can lead to road rage, but does not always escalate to that level. According to the National Highway Transportation Association (NHTSA), aggressive driving is when someone commits “a combination of moving traffic offenses that endangers other persons or property” (blog.gwccnet.com). These could be following too closely, using offensive gestures and language, failure to use signals, frequent lane changes or cutting someone off. Statistics from the AAA Foundation for Traffic Safety show that the majority of aggressive drivers are “young, poorly educated men between 16 and 26”.</span></p> <p class="p1"><span class="s3">Road rage is defined to be when the activity escalates to acts of violence against another person. Examples of road rage include bumping into or ramming another car, or attacking another driver or vehicle with a weapon. Intentional or illegal acts are often specifically excluded from a personal or commercial auto policy.<span class="Apple-converted-space"> </span>In addition, road rage is a criminal offense and can lead to jail time. Road rage may be a manifestation of underlying issues, such as problems at home, or an inability to handle or deflect anger.</span></p> <p class="p1"><span class="s3">Statistics for road rage/aggressive driving may be surprising. 1,200 incidents per year are reportedly related to road rage. Aggressive driving is estimated to be the cause of two thirds of traffic fatalities. 37% of aggressive driving incidents involve a firearm (www.safemotorist.com). 53% of drivers believe that speeding 10 miles per hour over the speed limit is normal.<span class="Apple-converted-space"> </span>2% of drivers admit to trying to force another car off the road. Perhaps the most shocking fact is that 30 murders per year can be linked directly to road rage, often due to deliberate acts (www.driversedcom). In 2019, a motorist in Philadelphia attacked another vehicle with a machete. Another road-rager smashed the window of a school bus that had elementary school children on board (www.nj.com). </span></p> <p class="p1"><span class="s3">There are preventative measures to take if you encounter a driver exhibiting signs of road rage or aggressive behavior.<span class="Apple-converted-space"> </span>First, do not retaliate.<span class="Apple-converted-space"> </span>Stay as far away from angry drivers as possible. Don’t feed into their anger by driving aggressively or blowing the horn.<span class="Apple-converted-space"> </span>Report drivers who exhibit dangerous behavior. </span></p> <p class="p1"><span class="s3">For drivers who are<span class="Apple-converted-space"> </span>susceptible to aggressive driving behaviors, there are methods to reduce the probability of an incident. These include getting enough sleep, limiting use of alcohol, and listening to calming music. Just knowing the potential costly implications, such as tickets, court costs, lawyer fees and increased insurance rates, can be enough to help some people learn to avoid aggressive driving behaviors (www.webmed.com). </span></p> <p class="p1"><span class="s4">Road rage accidents are preventable. Offering advice and assistance to clients on how to do so is another value-added service of the professional insurance agent. <span class="Apple-converted-space"> </span></span></p> <!--themify_builder_content--> <div id="themify_builder_content-10726" data-postid="10726" class="themify_builder_content themify_builder_content-10726 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/road-rage/">Road Rage</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>PIANY Presents Distinguished Insurance Service Award to Miret, Posthumously</title> <link>https://www.insurance-advocate.com/2019/05/13/piany-presents-distinguished-insurance-service-award-to-miret-posthumously/</link> <dc:creator><![CDATA[Insurance Advocate]]></dc:creator> <pubDate>Mon, 13 May 2019 05:22:38 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[In The Associations]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10706</guid> <description><![CDATA[<p>GLENMONT, N.Y.—The Professional Insurance Agents of New York State, awarded Emilio Miret its Distinguished Insurance Service award, posthumously, at the association’s Long Island Regional Awareness Program, held May 1 at the Crest Hollow Country Club, Woodbury, N.Y. This award recognizes an individual who has established a history of service, dedicated leadership and attention to the […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/piany-presents-distinguished-insurance-service-award-to-miret-posthumously/">PIANY Presents Distinguished Insurance Service Award to Miret, Posthumously</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s2">GLENMONT, N.Y.—The Professional Insurance Agents of New York State, awarded Emilio Miret its Distinguished Insurance Service award, posthumously, at the association’s Long Island Regional Awareness Program, held May 1 at the Crest Hollow Country Club, Woodbury, N.Y.</span></p> <p class="p1">This award recognizes an individual who has established a history of service, dedicated leadership and attention to the concerns of independent agents and their clients.</p> <p class="p1">“Emilio was admired and respected by his peers and colleagues in the industry. This award recognizes his long-standing commitment to the insurance industry,” said Jamie Ferris, CIC, AAI, CPIA, president of PIANY.</p> <p class="p1"><span class="s2">Miret had been in the insurance industry for 50 years, beginning with Empire Mutual Insurance Company. In August of 1997, Miret joined the First Rehabilitation Life Insurance Co. as a regional sales manager. He retired from this company in 2011. Miret passed away on September 25, 2018 at age 81.</span></p> <!--themify_builder_content--> <div id="themify_builder_content-10706" data-postid="10706" class="themify_builder_content themify_builder_content-10706 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/piany-presents-distinguished-insurance-service-award-to-miret-posthumously/">PIANY Presents Distinguished Insurance Service Award to Miret, Posthumously</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Thomas Named PIANY’s Long Island RAP Industry Professional of the Year</title> <link>https://www.insurance-advocate.com/2019/05/13/thomas-named-pianys-long-island-rap-industry-professional-of-the-year/</link> <dc:creator><![CDATA[Insurance Advocate]]></dc:creator> <pubDate>Mon, 13 May 2019 04:21:49 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[In The Associations]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10703</guid> <description><![CDATA[<p>GLENMONT, N.Y.—The Professional Insurance Agents of New York State presented Maria Thomas with its Industry Professional of the Year award at the annual Long Island Regional Awareness Program. Thomas is vice president of Brokerage Sales & Client Relations for Friedlander Group. Thomas has worked in the insurance industry for 35 years, including both brokerage and […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/thomas-named-pianys-long-island-rap-industry-professional-of-the-year/">Thomas Named PIANY’s Long Island RAP Industry Professional of the Year</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1"><span class="s2">GLENMONT, N.Y.—The Professional Insurance Agents </span><span class="s3">of New York State presented Maria Thomas with its Industry Professional of the Year award at the annual Long Island Regional Awareness Program. Thomas is vice president of Brokerage Sales & Client Relations for Friedlander Group. </span></p> <p class="p1">Thomas has worked in the insurance industry for 35 years, including both brokerage and insurance companies. She is actively involved in a number of industry associations and also serves several Long Island charity organizations.</p> <p class="p1">This award recognizes an individual from an insurance company, general agency, managing general agency or other insurance industry profession, who has demonstrated qualities that foster a strong working relationship with agents and brokers, and who has exemplified a commitment to professionalism and service.</p> <p class="p1">“This recognition honors Maria for her professionalism and demonstrated commitment to the insurance industry,” said Jamie Ferris, CIC, CCI, CPIA, PIANY president. “This award reflects her dedication to the business.”</p> <p class="p1">Long Island RAP was held at Crest Hollow Country Club on Wednesday, May 1.<span class="s4">[</span><span class="s5"><b><i>I</i></b></span><span class="s6"><b>A</b></span><span class="s4">]</span></p> <p class="p1"><i>PIANY is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout the state.</i></p> <!--themify_builder_content--> <div id="themify_builder_content-10703" data-postid="10703" class="themify_builder_content themify_builder_content-10703 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/thomas-named-pianys-long-island-rap-industry-professional-of-the-year/">Thomas Named PIANY’s Long Island RAP Industry Professional of the Year</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Ohio National Life Insurance Company’s Termination of Trail Commissions</title> <link>https://www.insurance-advocate.com/2019/05/13/ohio-national-life-insurance-companys-termination-of-trail-commissions/</link> <dc:creator><![CDATA[Sari Gabay]]></dc:creator> <pubDate>Mon, 13 May 2019 03:21:00 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[Legal Update]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10701</guid> <description><![CDATA[<p>The issue of termination of trail commissions has been a popular topic in insurance industry news since Ohio National Life Insurance Company terminated trail commissions. More specifically, by letter dated September 21, 2018, Ohio National wrote to various agents and broker-dealers “to provide notice of termination of any and all selling agreements” [effective December 12, […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/ohio-national-life-insurance-companys-termination-of-trail-commissions/">Ohio National Life Insurance Company’s Termination of Trail Commissions</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p class="p1">The issue of termination of trail commissions has been a popular topic in insurance industry news since Ohio National Life Insurance Company terminated trail commissions.<span class="Apple-converted-space"> </span>More specifically, by letter dated September 21, 2018, Ohio National wrote to various agents and broker-dealers “to provide notice of termination of any and all selling agreements” [effective December 12, 2018].<span class="Apple-converted-space"> </span>Further, according to the termination notice letter, “all individual annuity trail compensation will cease at that time.<span class="Apple-converted-space"> </span>All group variable annuity trail compensation and life insurance renewal commissions will continue to be paid per the terms of the selling agreement.”</p> <p class="p1">In the life insurance and annuity contracts arena, there is typically a larger commission in the first year, followed by trail commissions for the life of the policy or contract.<span class="Apple-converted-space"> </span>Given that many life insurance agents rely on these trail commissions, Ohio National’s decision to terminate certain broker-dealer agreements has led to a flurry of class action and individual lawsuits, with at least 10 currently pending in courts across the country, including federal district court actions filed in Ohio, Texas, New Jersey, and California, among other states.<span class="Apple-converted-space"> </span>There are also several arbitrations pending, and the forum of private arbitration versus court may have been governed by consent to arbitration language in a particular selling agreement.</p> <p class="p1">In the publicly filed complaint from UBS Financial Services Inc. (“UBS”), UBS alleges that Ohio National determined that the annuity contracts with guaranteed minimum income benefit (GMIB) riders were uneconomical in an environment of high regulation and low interest rates.<span class="Apple-converted-space"> </span>According to the lawsuits, Ohio National breached its selling agreements which guaranteed the payment of trail commissions until the annuities were surrendered or annuitized. UBS claims that when Ohio National determined that its GMIB rider contracts were not economical, they tried to initiate an exchange offer to persuade holders of variable annuities with GMIB riders to exchange those products for other investments, which did not necessarily go according to plan as several UBS customers decided not to accept the exchange offer and, instead, chose to remain with their current variable annuity contracts.</p> <p class="p1">In its defense, Ohio National claims that payments were only due while the contracts were in force, and cites to language in the selling agreements, providing that it “remains in force and will be paid on a particular contract until the contract is surrendered.”<span class="Apple-converted-space"> </span>According to Ohio National, “such language unequivocally establishes that the termination of the Selling Agreement also terminated any obligation [on Ohio National] to continue paying trail commissions as to individual annuity products.”<span class="Apple-converted-space"> </span>Ohio National’s argument relies on the use of the conjunction “and” which it notes is critical to its argument; trail commissions are only payable if both the selling agreement is in force and the pertinent annuity contract has not been surrendered or annuitized.”<span class="Apple-converted-space"> </span>Since both of these joint conditions — that the selling agreement remains in force, and the particular annuity contract has not been surrendered or annuitized—Ohio National claims it has no obligation to the continued payment of trial commissions.</p> <p class="p1">It will be interesting to see the results of the various litigations in due course and whether the courts agree with Ohio National’s interpretation of the language in the selling agreements or whether the agents are still entitled to payment of trail commissions.<span class="Apple-converted-space"> </span>It may ultimately come down to an interpretation of contract language.<span class="Apple-converted-space"> </span>For now, it is a good reminder that life agents should at least be familiar with the terms of their selling agreements because expecting to retire on trail commissions that could possibly be terminated unilaterally, could be a grave loss.<span class="Apple-converted-space"> </span>Ideally, such contracts should contain a clause for vesting of commissions for a period of years which would guarantee the agent compensation for the period of years set forth in the agreement, assuming the agreement remains in full force and effect.<span class="Apple-converted-space"> </span>In addition, a sub agent of a managing general agent, may not have the leverage to negotiate his or her contract terms, as payment to the sub-agent may be dependent on the carrier’s payment to and ongoing relationship with the managing general agent, but it is a good idea to review any applicable contracts to avoid surprises.</p> <!--themify_builder_content--> <div id="themify_builder_content-10701" data-postid="10701" class="themify_builder_content themify_builder_content-10701 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/ohio-national-life-insurance-companys-termination-of-trail-commissions/">Ohio National Life Insurance Company’s Termination of Trail Commissions</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>No Good Deed by an Insurer Goes Unpunished</title> <link>https://www.insurance-advocate.com/2019/05/13/no-good-deed-by-an-insurer-goes-unpunished/</link> <dc:creator><![CDATA[Barry Zalma]]></dc:creator> <pubDate>Mon, 13 May 2019 02:19:33 +0000</pubDate> <category><![CDATA[2019]]></category> <category><![CDATA[May 13]]></category> <category><![CDATA[On My Radar]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=10698</guid> <description><![CDATA[<p>Recommendation of Contractor by Insurer not Employment of Contractor I’ve been involved in insurance claims for more than 51 years and it is invariable that even when an insurer does everything required of it by a policy of insurance the person insured is seldom totally pleased, the person insured wants more than the policy promises, […]</p> The post <a href="https://www.insurance-advocate.com/2019/05/13/no-good-deed-by-an-insurer-goes-unpunished/">No Good Deed by an Insurer Goes Unpunished</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<h3 class="p1"><span class="s1">Recommendation of Contractor by Insurer not Employment of Contractor</span></h3> <p class="p1">I’ve been involved in insurance claims for more than 51 years and it is invariable that even when an insurer does everything required of it by a policy of insurance the person insured is seldom totally pleased, the person insured wants more than the policy promises, and will often sue to profit from a property loss.</p> <p class="p1">In <i>Barbara C. Lyon, Individually And As Trustee Of The Donald F. And Barbara C. Lyon Revocable Living Trust V. Service Team Of Professionals (Eastern Carolina), LLC D/B/A 24/Restore And United Services Automobile Association V. Service Team Of Professionals (Eastern Carolina), LLC D/B/A 24/Store, Third Party Plaintiff, v. Coastal Restoration Service, Inc. D/B/A Servpro Of Pitt/Greene & Craven/Pamlico Counties,</i> No. Coa18-627, Court of Appeals of North Carolina (April 16, 2019) Barbara C. Lyon (“plaintiff”) was unsatisfied with a claim adjustment, sued, and then appealed from an order granting summary judgment in favor of United Services Automobile Association (“defendant USAA” or “USAA”) on all of plaintiff’s claims against USAA.</p> <p class="p3"><b>BACKGROUND</b></p> <p class="p1">The Trust owned a house in Arapahoe that plaintiff and her family used as a second home (“the house”). Plaintiff’s husband and their daughter discovered a water leak that caused extensive water damage and mold growth in the house. Ms. Stone contacted USAA, the insurer of the property, to report the leak and resulting damage.</p> <p class="p1">Plaintiff elected to participate in USAA’s Property Direct Repair Program (“PDRP”) to restore the house. When an insured participates in PDRP, USAA recommends a contractor to assist with repairs. The insured is under no obligation to hire the recommended contractor, and may hire a contractor of their own choosing instead. If the insured selects the recommended contractor, USAA reviews and approves that contractor’s estimate, and then mails a check to the contractor as the claims payment. Significantly, this check requires the insured’s endorsement to release the funds to the contractor, and the insured is not required to endorse the check until the work is completed to his or her satisfaction.</p> <p class="p1">Ms. Stone contacted USAA in December 2013 and January 2014, expressing concerns with 24/Restore’s workmanship and the payments plaintiff made to 24/Restore. USAA agreed to assist with disputes related to the covered repairs. On 20 February 2014, USAA spoke with plaintiff and Ms. Stone, who told USAA they no longer wanted to work with 24/Restore. An independent adjuster inspected the house and determined 24/Restore should reimburse plaintiff $8,446.71 for work that was either incomplete or incorrect.</p> <p class="p1">Ms. Stone asked Pamlico Home Builders & Supplies, Inc. (“Pamlico Home Builders”) to prepare an estimate for the repairs and upgrades to the house that 24/Restore was unable to complete to plaintiff’s satisfaction. She submitted the Pamlico Home Builders’ estimate, for $13,377.81, to USAA. However USAA told Ms. Stone that it could not proceed with Pamlico Home Builders’ estimate because it was not itemized. USAA explained it needed an itemized estimate to enable it to determine whether it owed additional funds for Pamlico Home Builders’ work. Ms. Stone never submitted an itemized version of the estimate, or the final invoice from Pamlico Home Builders, to USAA, even though she knew USAA needed this information to process the claim.</p> <p class="p1">Plaintiff sued seeking from USAA damages for (1) breach of contract, (2) bad faith, (3) unfair claims settlement practices and (4) negligent hiring.</p> <p class="p1"><span class="s2">USAA moved for summary judgment on all four of plaintiff’s claims. The trial court granted summary judgment in USAA’s favor on all of plaintiff’s claims.</span></p> <p class="p3"><b>DISCUSSION</b></p> <p class="p1">First, plaintiff contends USAA failed to meet its obligations under the dwelling coverage because: (1) USAA did not pay for Pamlico Home Builders’ work, (2) USAA did not compensate plaintiff for the subsequently discovered mold contamination and remediation, and (3) USAA failed to compensate for work 24/Restore erroneously labeled as an “upgrade” instead of a “repair.”</p> <p class="p1">The Court of Appeals concluded that USAA did not violate the terms of the policy by failing to pay Pamlico Home Builders’ quote. Plaintiff never provided information needed. This inaction is in clear violation of the policy, which provides that USAA does not have a duty to cover a loss when a policyholder fails to comply with the material conditions to cooperate in an investigation of a claim, prepare an inventory of damaged personal property, and show the property and provide records and documents as long as USAA reasonably required it of the insured.</p> <p class="p1">Personal Property Coverage</p> <p class="p1">Plaintiff argued USAA denied plaintiff the opportunity to personally inventory, inspect, attempt to salvage, or discard the property because 24/Restore assumed possession and control of the personal property. However the policy excludes coverage for “faulty, inadequate, or defective . . . [d]esign, specifications, workmanship, repair, construction, renovation, remodeling, grading, [or] compaction[.]” Thus, because this allegation is based on 24/Restore’s actions, this argument is without merit as a matter of law.</p> <p class="p1">Alternative Living Expenses</p> <p class="p1"><span class="s3">Finally Plaintiff argues that whether she is entitled to payment for alternative living expenses is a triable issue of fact because it is undisputed that USAA never tendered payment under this provision of the policy. Although USAA’s claims logs show plaintiff inquired about this provision, plaintiff never submitted a claim for, or produced documentation to support, reimbursement for alternative living expenses. Because USAA is not required to make payments when a plaintiff fails to submit a claim for reimbursement, this argument is without merit.</span></p> <p class="p4"><b>Bad Faith</b></p> <p class="p1">In order to recover punitive damages for the tort of an insurance company’s bad faith refusal to settle, the plaintiff must prove (1) a refusal to pay after recognition of a valid claim, (2) bad faith, and (3) aggravating or outrageous conduct.</p> <p class="p1">Because plaintiff cannot demonstrate an issue of material fact that USAA refused to pay after recognition of a valid claim, plaintiff cannot recover punitive damages for the tort of an insurance company’s bad faith refusal to settle as a matter of law.</p> <p class="p4"><b>Unfair and Deceptive Trade Practices</b></p> <p class="p1">Plaintiff also argues the trial court erred by granting summary judgment on her claim for unfair and deceptive trade practices. To prevail on a claim for unfair and deceptive trade practices, a claimant must demonstrate the existence of three factors: (1) an unfair or deceptive act or practice, or unfair method of competition, (2) in or affecting commerce, and (3) which proximately caused actual injury to the plaintiff or his business.</p> <p class="p1"><span class="s2">At the outset, there is no evidence that the payments made by USAA were not fair and equitable, including USAA’s failure to pay Pamlico Home Builders and costs related to the second mold remediation, as discussed supra with regard to plaintiff’s breach of contract claim.</span></p> <p class="p4"><b>Negligent Hiring</b></p> <p class="p1">Plaintiff cannot proceed on this claim because USAA did not employ 24/Restore. USAA only recommended the business as a “preferred contractor.” As the work authorizations for the repairs explicitly show, the decision to hire both 24/Restore and Servpro belonged to plaintiff. Thus, USAA did not hire 24/Restore as an independent contractor or otherwise, and summary judgment was proper on this claim.</p> <p class="p1">The trial court’s order granting summary judgment in USAA’s favor on all of plaintiff’s causes of action was affirmed.</p> <p class="p3"><b>ZALMA OPINION</b></p> <p class="p1">Plaintiff failed to recognize that when seeking the benefits of a first party property policy the insured is obligated to prove a loss to the insurer. Failure to do so excuses the insurer from further action. USAA required production of evidence with regard to many of the claims made by the Plaintiff (a condition precedent) and she refused or just failed to comply. The suit against the insurer was spurious and impossible to sustain. USAA did what was required of it only to be punished with a suit with no basis in fact or law.</p> <!--themify_builder_content--> <div id="themify_builder_content-10698" data-postid="10698" class="themify_builder_content themify_builder_content-10698 themify_builder tf_clear"> </div> <!--/themify_builder_content-->The post <a href="https://www.insurance-advocate.com/2019/05/13/no-good-deed-by-an-insurer-goes-unpunished/">No Good Deed by an Insurer Goes Unpunished</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> </channel> </rss>