<?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>Guest Editorial | Insurance Advocate</title> <atom:link href="https://www.insurance-advocate.com/tag/guest-editorial/feed/" rel="self" type="application/rss+xml" /> <link>https://www.insurance-advocate.com</link> <description>Since 1889</description> <lastBuildDate>Mon, 03 Jun 2019 09:08:23 +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>Empire Safety Council : Letter to the Governor</title> <link>https://www.insurance-advocate.com/2017/03/27/empire-safety-council-letter-to-the-governor/</link> <dc:creator><![CDATA[Maria Vano]]></dc:creator> <pubDate>Mon, 27 Mar 2017 03:00:01 +0000</pubDate> <category><![CDATA[Uncategorized]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=7589</guid> <description><![CDATA[<p>Empire Safety Council 176 Terry Road Smithtown, NY 11787 P.631-360-2160 F.631-360-2161 www.EmpireSafetyCouncil.com February 22, 2017 Hon. Andrew M. Cuomo Governor, New York Executive Chamber State Capitol Albany, New York 12224 Re: Immediate Termination of the Internet Point Insurance Reduction Program (IPIRP); criminal charges for state official misconduct by scheming to continue ineffective driver safety programs […]</p> The post <a href="https://www.insurance-advocate.com/2017/03/27/empire-safety-council-letter-to-the-governor/">Empire Safety Council : Letter to the Governor</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p style="text-align: center;">Empire Safety Council<br /> 176 Terry Road<br /> Smithtown, NY 11787<br /> P.631-360-2160 F.631-360-2161<br /> www.EmpireSafetyCouncil.com</p> <p>February 22, 2017</p> <p>Hon. Andrew M. Cuomo<br /> Governor, New York<br /> Executive Chamber<br /> State Capitol<br /> Albany, New York 12224</p> <p style="padding-left: 240px;"><strong>Re: Immediate Termination of the Internet Point Insurance Reduction Program (IPIRP); criminal charges for state official misconduct by scheming to continue ineffective driver safety programs by fabricating scientific research; fraudulent driver safety courses; defrauding the public; compromising public safety</strong></p> <p>Dear Governor Cuomo:</p> <p>The Empire Safety Council (ESC), a New York-based and approved accident prevention course sponsor, is all about highway safety and improving the skills of New York drivers. <strong><em>That is why we are calling for the immediate termination of the Internet Point Insurance Reduction Program (IPIRP) in this state</em></strong> due to a scheme backed by willfully-fraudulent studies conducted by NYS Department of Motor Vehicles (DMV) officials that were the basis of recommendations to the Commissioner and the Legislature to extend the IPIRP program beyond the previously scheduled expiration date in 2014.</p> <p>The effectiveness of the IPIRP program is supposed to be evaluated by means of independent statistical analysis by the DMV of driver improvement. After reviewing the damning evidence contained herein, I am sure you will agree that New York’s analysis is fraudulent, its evaluations scientifically worthless and that certain state officials should be prosecuted for fraud, misleading the legislature and the Executive and violating the public trust.</p> <p><strong>DMV OFFICIALS DELIBERATELY SCHEME TO MISLEAD THE COMMISSIONER, LEGISLATURE AND THE PUBLIC</strong></p> <p>Why would DMV officials do this? The answer can be found in language in the 2013 contract itself between DMV and the Institute for Traffic Safety Management and Research (ITSMR) University at Albany, Research Foundation of SUNY: <u>“Without this study and recommendations to the Governor and the legislature, the law authorizing IPIRP will sunset in May, 2014, <strong><em>eliminating an increasingly popular customer alternative to the classroom courses.</em></strong> In addition, since the sponsor fee to New York State for completers of IPIRP is $8 per student vs. $2 for the classroom course, <strong><em>elimination of IPIRP would also represent a substantial revenue loss to New York State.”</em></strong></u></p> <p>The institutional bias in insuring that IPIRP was extended is glaring. DMV telegraphed what they needed the study conclusions to be to avoid the revenue loss upwards of $3 million and the end of a popular program. By diverting more and more students each year away from the classroom course and onto the internet, the state reaps four times the revenue per student. The push to favor the internet for motor vehicle-related transactions is also promoted by DMV as a way to accomplish the Administration’s desire for the state to employ more technology, and in DMV’s case to reduce lines at its local offices. It is a scandal that driver safety has been compromised by the very agency that is charged with making vehicle travel safer by rigging the study and making state revenue a priority.</p> <p><strong>STUDY WRITTEN BY DMV GHOST WRITER; NOT WRITTEN BY ALBANY INSTITUTE FOR TRAFFIC SAFETY MANAGEMENT AND RESEARCH (ITSMR) RESEARCHERS</strong></p> <p>Information about the research done under contracts awarded by DMV to ITSMR was the subject of extensive FOIL requests ESC made to DMV, ITSMR and the State Comptroller’s office, seeking proof that the research contracted by DMV to be conducted by ITSMR was actually done by ITSMR. These contracts verify that ITSMR’s scope of work included the responsibility for ITSMR to conduct these studies and provide other deliverables, but discussions with ITSMR officials contradicted the claim.</p> <p>However, after ESC’s inquiry with the office of Research Misconduct and Ethics for the Institute, it was made clear that ITSMR did not actually conduct the research for which it is credited and for which it has been paid by DMV.</p> <p>When I asked the Vice President of Research about what appeared to be obvious omissions in the analysis and evaluation that the Institute provided, I was told that since the Institute denies that the research is their work product, the DMV may change the document and omit any analysis and evaluation made by the Institute since it is exclusively the department’s own research, however misleading the cover page (stating that the study was “conducted by the Institute for Traffic Safety Management and Research, University at Albany, Research Foundation of SUNY) may be.</p> <p>Further, in correspondence to ESC in response to a FOIL appeal, the Vice Chancellor for Policy and Chief of Staff, FOIL Appeals, SUNY wrote: “This evaluation was conducted by the NYS Department of Motor Vehicles (NYSDMV), not the University at Albany.”</p> <p>The IPIRP study does not even list any authors or staff at either agency who worked on the contracted study.</p> <p><strong>CLEAR Evidence of Fraud</strong></p> <p>The DMV study of the IPIRP Pilot is exposed as intentional scientific misconduct knowing that the validity of the methods does not meet ethical standards. To be clear, the 2007 study methodology comments by the author on page 29 states:</p> <p><strong><em>In sum, the findings from this pilot study indicate that the prescribed design may not be viable for use in assessing PIRP effectiveness.”</em></strong></p> <p>Subsequently, the author has left this statement out of the 2013 study intentionally. This fraudulent and flawed study diminishes the negative impact of a program that is bad public policy by knowingly using invalid methods. Furthermore, it was related to me by Department officials in 2008 that the 2007 study results confirmed that PIRP had “near zero” effectiveness and that therefore as a result there was no reason for PIRP applicants to submit research documentation of effectiveness prior to approval in contemplation of 2336 of the Insurance law.</p> <p>In other words these IPIRP applicants had no verifiable research documentation that their courses were effective, so DMV did an obviously flawed study by a fraudulent author to get the IPIRP program off the ground. All applicant courses were approved without a study of effectiveness in violation of the law. The Department then hired again the same author to conduct another study and compare the two studies using the same invalid methods. This is intentional misconduct. Unbelievably, the Department justifies doing so on the basis that the December 2007 study was not viable in assessing PIRP effectiveness.</p> <p>Fraud is intentionally falsifying and/or fabricating research data, and misleading reporting of the results. The facts in this letter can be easily verified by reviewing the documentation and interviewing the persons involved, as I have done.</p> <p><strong>DECISIONS AFFECTING PUBLIC SAFETY RELIED ON FRAUDULENT STUDY, RECOMMENDATIONS</strong></p> <p>The situation should outrage you, the legislators, the motoring public and the insured in this state that the results of these studies were the basis for the recommendation in a report dated February 2014 by DMV to continue the IPIRP program beyond the 2014 sunset date. Relying on this recommendation, the Legislature included a five-year extension of the IPIRP program as part of the 2014-2015 state budget to April 1, 2020.<strong> It is this extension I am urging be repealed in this budget.</strong></p> <p>The Vehicle and Traffic Law, Article 12B, states that: “the purposes of this article are to further highway safety by preserving the quality and efficacy of the accident prevention program” and the law and regulations have established strict criteria for initial approval and continual course sponsorship approval. Standards for course approval require each applicant to provide proof of effectiveness that shall be verifiable research documentation showing evidence of effectiveness in terms of reduced accidents, convictions, or both and shall employ accepted research principles. <strong><em>The law further states that submission of any fraudulent or intentional misleading data will disqualify organizations and all owners and principals from participation or application approval for a period of 10 years.</em></strong> This should apply to public officials as well. ESC has brought this matter to the attention of the State Inspector General and the State Comptroller. Both have indicated that they are reviewing this matter. Public officials involved in fraud should be prosecuted.</p> <p><strong><em>Tragically, these studies knowingly used invalid methods to perpetuate and promote a state sponsored program held out to the public as improving their driving skills and justifying insurance and point reduction benefits, when in fact there is no credible evidence that driving skills improve.</em></strong></p> <p>ESC’s interest is in the integrity of a state sponsored driver improvement program that justifies point and insurance reduction benefits to drivers who complete state-approved classroom and internet training. ESC finds that the research that supports the NY IPIRP program is fraudulent, existing laws and regulations are not being followed, and security and user verification standards for the internet programs are ineffective. It should be noted that the biometric User/Identity Validation methods prescribed in Part 141 of the Department’s Rules and Regulations are not being used at all by any IPIRP course sponsor. In fact, all sponsors have chosen to use a method not prescribed in Part 141 which is that the student designates a phone as its User/Identity Validation. This method can be easily defeated and the user may give their phone to another person to take the course for them or have someone finish the course for them as well.</p> <p>Because of these and other flaws, the safe driver outcomes of the IPIRP program courses are nonexistent and are not being demonstrated nor verified as the law requires. In addition, the insurance discounts of 10% for students taking IPIRP are unjustified by the state studies, and become a cost passed on to all insured as higher premiums.</p> <p><strong>The Economic Impacts</strong></p> <p><strong><em>Fake research and lax regulation and oversight of state-sponsored IPIRP is jeopardizing the public and traffic safety by not delivering on the promise of improving driving skills and accident avoidance techniques. </em></strong>We know that the proliferation of IPIRP and its undeserved endorsement by the state of New York has driven students away from classroom training. All of the state approved IPIRP sponsors are out-of-state companies and the bulk of the monies collected for taking the courses goes to these companies. As a result, the industry employment numbers for well trained and quality classroom instructors has plummeted in New York. Instead, students are flocking to the internet with the false promise that they are taking effective steps to improve their chances of avoiding serious accidents, traffic violations and property damage. Insurers are required to provide an insurance discount to these drivers, increasing premiums for all drivers.</p> <p><strong><em> </em>WHAT SHOULD BE DONE?</strong></p> <p><strong><em>Governor, you have the power to end the IPIRP program immediately and demonstrate to New Yorkers that the state is committed to endorsing only driver safety programs that are proven to work as advertised. </em></strong>In light of the deceptions involved in the DMV-ITSMR research contracts and the resulting threat to public safety, <strong><em>ESC is urging that your budget be amended to terminate the IPIRP program. You should also call for prosecutions of state officials who were involved in this fraud. </em></strong></p> <p>Please contact me to answer any questions you may have or if you or your staff require additional information. I look forward to hearing from you on this extremely important driver safety matter.</p> <p>Sincerely,</p> <p><a href="https://www.insurance-advocate.com/wp-content/uploads/2017/03/sig.png"><img decoding="async" class="alignnone size-medium wp-image-7619" src="https://www.insurance-advocate.com/wp-content/uploads/2017/03/sig-300x74.png" alt="" width="300" height="74" srcset="https://www.insurance-advocate.com/wp-content/uploads/2017/03/sig-300x74.png 300w, https://www.insurance-advocate.com/wp-content/uploads/2017/03/sig-600x148.png 600w, https://www.insurance-advocate.com/wp-content/uploads/2017/03/sig-768x190.png 768w, https://www.insurance-advocate.com/wp-content/uploads/2017/03/sig-1024x253.png 1024w, https://www.insurance-advocate.com/wp-content/uploads/2017/03/sig.png 1548w" sizes="(max-width: 300px) 100vw, 300px" /></a><br /> William Bonds, President<br /> Empire Safety Council</p> <p>cc: Theresa L. Egan, Executive Deputy Commissioner, NYSDMV</p> <p> </p> <p>* * * * * * * *<a href="https://www.insurance-advocate.com/wp-content/uploads/2017/04/Bonds-Bill.jpeg"><img decoding="async" class="wp-image-7712 alignright" src="https://www.insurance-advocate.com/wp-content/uploads/2017/04/Bonds-Bill-263x300.jpeg" alt="" width="151" height="172" srcset="https://www.insurance-advocate.com/wp-content/uploads/2017/04/Bonds-Bill-263x300.jpeg 263w, https://www.insurance-advocate.com/wp-content/uploads/2017/04/Bonds-Bill.jpeg 554w" sizes="(max-width: 151px) 100vw, 151px" /></a></p> <p><em>Mr. William Bonds, President of Empire State Council, Inc., founded in 1993, has graduated more than two million “student completions” of the PIRP classroom courses. Presently, the Empire Safety Council represents more than 6,000 classroom instructors across New York State. Empire Safety Council is based in Smithtown, N.Y. and may be visited online at www.EmpireSafetyCouncil.com</em></p> <p><span style="border-radius: 2px; text-indent: 20px; width: auto; padding: 0px 4px 0px 0px; text-align: center; font: bold 11px/20px 'Helvetica Neue',Helvetica,sans-serif; color: #ffffff; background: #bd081c no-repeat scroll 3px 50% / 14px 14px; position: absolute; opacity: 1; z-index: 8675309; display: none; cursor: pointer; top: 4029px; left: 692px;">Save</span></p>The post <a href="https://www.insurance-advocate.com/2017/03/27/empire-safety-council-letter-to-the-governor/">Empire Safety Council : Letter to the Governor</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Protecting Fifty Years of Child Health Progress</title> <link>https://www.insurance-advocate.com/2016/05/15/protecting-fifty-years-of-child-health-progress/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Sun, 15 May 2016 15:10:54 +0000</pubDate> <category><![CDATA[2016]]></category> <category><![CDATA[May 15]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">https://www.insurance-advocate.com/?p=5660</guid> <description><![CDATA[<p>By Marian Wright Edelman It was a generation ago that Harry Truman said, and I quote him: “Millions of our citizens do not now have a full measure of opportunity to achieve and to enjoy good health. Millions do not now have protection or security against the economic effects of sickness. And the time has now […]</p> The post <a href="https://www.insurance-advocate.com/2016/05/15/protecting-fifty-years-of-child-health-progress/">Protecting Fifty Years of Child Health Progress</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p><em><strong>By Marian Wright Edelman</strong></em></p> <p>It was a generation ago that Harry Truman said, and I quote him: “Millions of our citizens do not now have a full measure of opportunity to achieve and to enjoy good health. Millions do not now have protection or security against the economic effects of sickness. And the time has now arrived for action to help them attain that opportunity and to help them get that protection. … The need for this action is plain; and it is so clear indeed that we marvel not simply at the passage of this bill, but what we marvel at is that it took so many years to pass it.”</p> <p>President Lyndon B. Johnson said this as he signed Medicaid into law on July 30, 1965, thanking former President Harry S. Truman and the many members of Congress from both parties who laid the groundwork and worked tirelessly to make the Medicaid program and its protections reality. Not only has Medicaid been a lifesaver for tens of millions of older Americans for fifty years, it has helped Americans of all ages, including millions of children. Together with the Children’s Health Insurance Program (CHIP) it has brought the number of uninsured children to a historic low. Medicaid and CHIP provide comprehensive and affordable health coverage to more than 44 million children–57 percent of all children in America. With the new coverage options offered by the Affordable Care Act (ACA), 93 percent of all children now have health coverage. Yet at a time when we should be celebrating Medicaid and CHIP successes, serious threats to Medicaid, CHIP, and the ACA continue to surface in Congress. So in addition to advocating for continuing improvements in children’s health coverage, we must also play defense to protect the hard-earned gains made for children as well as adults.</p> <p>The 2016 Budget Resolution passed by both the House and the Senate paves the way to radically restructure Medicaid, making deep cuts that will reverse the progress made in reducing the rate of uninsured children, pushing tens of millions of Americans–including millions of children–into the ranks of the uninsured and underinsured. The Budget Resolution also puts in motion a process to repeal the ACA, which prohibits discrimination against the 129 million children and adults with pre-existing health conditions, helps over five million uninsured 18-26-year-olds now covered under parental insurance plans, and extends Medicaid coverage to age 26 for some youths leaving foster care. More than 10 million near-poor adults, including many parents, in the twenty-nine states and the District of Columbia that have expanded their Medicaid rolls under the ACA will lose Medicaid coverage as a result.</p> <p>While children comprise 48 percent of those enrolled in Medicaid, they account for less than a quarter of Medicaid costs. Medicaid’s current structure guarantees children the health and mental health care to meet their individual needs when they need it and must be protected. Major structural changes like block grants or per capita caps that limit expenditures for the entire Medicaid program don’t create cost efficiencies. They shift costs from the federal government to states, local communities, and/or beneficiaries. To meet rigid constraints of such federal limits states would have to increase their spending, make deep cuts, or both. Any “savings” would likely come from reducing eligibility, limiting benefits, increasing cost sharing, or cutting already below-market provider payment rates. Any of these steps would impose significant harm on millions of vulnerable children and families. Changes that result in loss of or limits on children’s health coverage would also require states and local communities to absorb substantial costs. An uninsured child costs the local community $2,100 more than a child covered by Medicaid.</p> <p>Right now Medicaid’s Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) benefit guarantees the full range of comprehensive primary and preventive coverage children need, preventing more serious and costly consequences later on. Almost 75 percent of children enrolled in Medicaid had a preventive well-child visit in the past year compared to 41 percent of uninsured children. Children enrolled in Medicaid miss fewer classes and perform better in school than uninsured children.</p> <p>Medicaid covers more than 40 percent of all births in the United States, and every $1 spent on prenatal care can save $3.33 in costs associated with care immediately after birth and another $4.63 associated with costs later in the child’s life. Medicaid is also a special lifeline for children with disabilities, serving 40 percent of children in America with special health care needs. For many of these children Medicaid is the only source of financing for their care. For others Medicaid supplements private coverage to help ensure access to the medical equipment and devices (such as hearing aids) they need to survive and thrive.</p> <p>New research documents the long-term benefits of Medicaid coverage in childhood. The National Bureau of Economic Research compared children eligible for Medicaid during childhood to their non-eligible peers and found that the Medicaid-eligible children were more likely to attend college, make greater contributions as adult taxpayers, and live longer than those without coverage. The findings reaffirm the economic case for doing what common sense and morality already dictate: by investing in childhood well-being now, the government will recoup the benefits later. After fifty years of Medicaid’s protections, how can any elected leaders still not get it, or get it but simply not care about the most vulnerable among us? We should let them hear from us.</p> <p>* * * * * * *</p> <p><em><strong> Marian Wright Edelman</strong> is President of the Children’s Defense Fund whose Leave No Child Behind® mission is to ensure every child a Healthy Start, a Head Start, a Fair Start, a Safe Start and a Moral Start in life and successful </em><em>passage to adulthood with the help of caring families and communities. For more information go to www.childrensdefense.org.</em></p>The post <a href="https://www.insurance-advocate.com/2016/05/15/protecting-fifty-years-of-child-health-progress/">Protecting Fifty Years of Child Health Progress</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>CPCU The Myths About NY’s Certificates of Insurance Law</title> <link>https://www.insurance-advocate.com/2015/08/24/cpcu-the-myths-about-nys-certificates-of-insurance-law/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 24 Aug 2015 10:07:37 +0000</pubDate> <category><![CDATA[2015]]></category> <category><![CDATA[August 24]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4424</guid> <description><![CDATA[<p>By Timothy Dodge, AU, ARM, CPCU New York’s certificates of insurance law officially took effect on July 28, 2015. The New York State Department of Financial Services has posted an initial list of certificate forms it has approved. We are getting closer to a huge relief for New York insurance producers. Judging from the emails […]</p> The post <a href="https://www.insurance-advocate.com/2015/08/24/cpcu-the-myths-about-nys-certificates-of-insurance-law/">CPCU The Myths About NY’s Certificates of Insurance Law</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p><strong>By Timothy Dodge, AU, ARM, CPCU</strong></p> <p><strong>N</strong>ew York’s certificates of insurance law officially took effect on July 28, 2015. The New York State Department of Financial Services has posted an initial list of certificate forms it has approved. We are getting closer to a huge relief for New York insurance producers.</p> <p>Judging from the emails and questions I’ve been getting, though, there seems to be a fair amount of misunderstanding out there about what this law says and does. So, let’s take a few minutes to dispel some myths.</p> <p><strong><em>Myth #1: The law puts new restrictions on what insurance producers can do with certificates. </em></strong></p> <p><strong>The truth</strong>: Until now, producers have been guided by a pair of circulars issued by the DFS back in the 1990s. Here’s the major point:</p> <p>Licensed producers are advised that they may not add terms or clauses to a certificate of insurance which alter, expand or otherwise modify the terms of the actual policy unless authorized by the insurer which has filed an appropriate endorsement with the Superintendent of Insurance and obtained prior approval, if required.</p> <p>Now, here is what the new New York Insurance Law Section 502 says: A certificate of insurance shall not amend, extend, or alter the coverage provided by the insurance policy to which the certificate of insurance makes reference. A certificate of insurance shall further not confer to any person any rights beyond those expressly provided by the policy of insurance referenced therein.</p> <p>There’s not a whole lot of difference there. The second sentence is pretty close to what the ACORD 25 Certificate of Liability Insurance says in its header. The fact is that this law does not place any restrictions on producers that weren’t there before.</p> <p><strong><em>Myth #2: Certificates that are not approved by the DFS are illegal. </em></strong></p> <p><strong>The truth</strong>: Nuh-uh. Saying that a particular act or document is illegal implies that someone can be punished for using it. There is nothing – <em>NOTHING </em>– in the law that makes it a crime to ask for or issue a certificate form that the DFS has not approved.</p> <p>Rather, an entity that wants its own unapproved form has no leverage over the insured. Section 502 also says this:</p> <p>In this state:</p> <p>(a) With respect to a certificate of insurance evidencing that a policy provides personal injury liability insurance or property damage liability insurance, as defined in paragraphs thirteen and fourteen of subsection (a) of section one thousand one hundred thirteen of this chapter, no person or governmental entity shall willfully require, as a condition of awarding a contract for work, or if a contract has already been awarded as a condition for work to commence or continue under the contract, or if the contract has been performed or partially performed as a condition for payment to be made under the contract, the issuance of a certificate of insurance unless the certificate is:</p> <p>(1) a form promulgated by the insurer issuing the policy referenced in the certificate of insurance; or (2) a standard certificate of insurance form issued by an industry standard setting organization and approved for use by the superintendent or any other form approved for use by the superintendent.</p> <p>All of the prohibitions stated in this provision apply to those who require certificates of insurance, not to the producers who issue them. Also, the language does not prohibit asking for a non-approved form. It says that the requestor cannot retaliate against the insured for failing to produce it. This law gives you (the producer) the ability to tell a certificate requestor to bug off, and you don’t have to worry about the requestor retaliating against your client. That’s the really valuable change it makes. If someone requests a non-approved certificate, and you say no, and that person kicks your insured off the job site, then he is subject to a fine.</p> <p><strong><em>Myth #3: The agent can be fined for issuing a non-approved certificate form. </em></strong></p> <p><strong>The truth</strong>: Nuh-uh again. As the language quoted above shows, nothing prohibits an agent from issuing a nonapproved form. From a practical standpoint, I can’t imagine why a producer would want to issue such a certificate (the whole point of the law was to get that off producers’ backs), but it’s just incorrect for producers to think they’ll get fined if they issue a cert that’s not on the list. ACORD always urges issuers to use the most current editions of their forms because they make changes to reflect the laws in all 50 states, and they don’t support outdated forms. Therefore, both the DFS and ACORD would tell you that your best bet is to use the editions on the list.</p> <p>Essentially, producers have the legal ability to issue any certificate form if 1) it doesn’t change the insurance coverage in any way; and 2) the insurer has authorized its use. This doesn’t mean they have to issue it (most of the time, they won’t want to). It means that they can legally do it.</p> <p><strong><em>Myth #4: Certificate holders can no longer request wording on a certificate that is not on the policy. </em></strong></p> <p><strong>The truth</strong>: They can ask, but they can’t <em>require</em>. Here’s Section 502 again:</p> <p>(b) No person or governmental entity shall willfully require the inclusion of terms, conditions or language of any kind, including warranties or guarantees, that the insurance policy provides coverage or otherwise sets forth terms and conditions in a certificate of insurance, if the insurance policy referenced by such certificate of insurance does not expressly include such terms, conditions, or language. This subsection shall not prohibit any person or governmental entity from including minimum insurance requirements, coverage limits, terms, or other conditions in the solicitation of bids as part of a competitive process, and it shall not prohibit any person or governmental entity from requesting, or an insurer or insurance producer from responding to such a request with clarification regarding the terms of the policy, or endorsement thereto.</p> <p>They’re free to ask for it, but once they’re told it’s not possible, they can’t kick the insured off the job site solely because of the certificate. If the insured signed a contract in which he promised to carry certain coverage and he doesn’t have it, he could be in breach of contract, but that’s an issue separate from the certificate. Any project owner can still say, “You have to name me as an additional insured.” They cannot keep someone off a job site simply because a certificate does not say, “The People of the State of New York and all of their European, Asian, African and interplanetary ancestors are additional insureds.”</p> <p>The law does not place new restrictions on producers. Rather, it gives them a new ability to say no to unreasonable requests. There is now recourse against those who won’t take no for an answer. And that is what makes this law valuable to producers.</p> <p> </p> <figure id="attachment_4425" aria-describedby="caption-attachment-4425" style="width: 219px" class="wp-caption alignnone"><a href="https://www.insurance-advocate.com/wp-content/uploads/2015/09/Timothy-Dodge.png"><img fetchpriority="high" decoding="async" class=" wp-image-4425" src="https://www.insurance-advocate.com/wp-content/uploads/2015/09/Timothy-Dodge-253x300.png" alt="Timothy Dodge is IIABNY’s Assistant Vice President of Research. He can be reached at 800-962-7950, ext. 229 or by email at tdodge@iiabny.org. IIABNY has a dedicated Certificates resource webpage (www.iiabny.org/Certificates) with important links and tools to help agents understand the new Certificates of Insurance Law that IIABNY initially drafted and worked so relentlessly to get passed." width="219" height="260" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/09/Timothy-Dodge-253x300.png 253w, https://www.insurance-advocate.com/wp-content/uploads/2015/09/Timothy-Dodge.png 424w" sizes="(max-width: 219px) 100vw, 219px" /></a><figcaption id="caption-attachment-4425" class="wp-caption-text">Timothy Dodge is IIABNY’s Assistant Vice President of Research. He can be reached at 800-962-7950, ext. 229 or by email at tdodge@iiabny.org. IIABNY<br />has a dedicated Certificates resource<br />webpage(www.iiabny.org/Certificates)<br />with important links and tools to help agents understand the new Certificates of Insurance Law that IIABNY initially drafted and worked so relentlessly to get passed.</figcaption></figure>The post <a href="https://www.insurance-advocate.com/2015/08/24/cpcu-the-myths-about-nys-certificates-of-insurance-law/">CPCU The Myths About NY’s Certificates of Insurance Law</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Consumer Costs at Stake: The Case for an Organized Approach to Principle-Based Reserving</title> <link>https://www.insurance-advocate.com/2015/07/27/consumer-costs-at-stake-the-case-for-an-organized-approach-to-principle-based-reserving/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 27 Jul 2015 09:13:48 +0000</pubDate> <category><![CDATA[2015]]></category> <category><![CDATA[July 27]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4377</guid> <description><![CDATA[<p><img width="2356" height="948" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294.jpg 2356w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-600x241.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-300x121.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-768x309.jpg 768w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-1024x412.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-1024x412-720x289.jpg 720w" sizes="(max-width: 2356px) 100vw, 2356px" /></p><p>By John R. Hurley The National Association of Insurance Commissioners (NAIC) has been developing a different approach to life insurance reserving and pricing for almost 10 years. The current system used by each state, the Standard Valuation Law (SVL) involves pricing and reserving assumptions fixed by law and regulation and applicable to all life insurance […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/27/consumer-costs-at-stake-the-case-for-an-organized-approach-to-principle-based-reserving/">Consumer Costs at Stake: The Case for an Organized Approach to Principle-Based Reserving</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p><img width="2356" height="948" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294.jpg" class="attachment-full size-full wp-post-image" alt="" decoding="async" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294.jpg 2356w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-600x241.jpg 600w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-300x121.jpg 300w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-768x309.jpg 768w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-1024x412.jpg 1024w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Life-Insurane-Pros-And-Cons-e1460485748294-1024x412-720x289.jpg 720w" sizes="(max-width: 2356px) 100vw, 2356px" /></p><p><strong>By John R. Hurley</strong></p> <p>The National Association of Insurance Commissioners (NAIC) has been developing a different approach to life insurance reserving and pricing for almost 10 years. The current system used by each state, the Standard Valuation Law (SVL) involves pricing and reserving assumptions fixed by law and regulation and applicable to all life insurance products, regardless of product design or the purpose of the design of the product for consumer use. It is stated by many that as a result of the current SVL, many products are over-reserved and thus more expensive to consumers.</p> <p>NAIC’s changes to SVL involve an amended SVL and adoption of an approach used in Canadian and European regulatory programs called “principlesbased reserving” (PBR). The general (not unanimous) consensus among companies, regulators and actuarial experts is that current SVL should be changed to give companies the ability to price their products using rules and assumptions that “fit” the design and purpose of the policy. This relative freedom is subject to substantive and complex rules that must be followed during the companies’ reserving process, peer review, and regulator oversight. It was recognized very early on that a new and substantial amount of experience data relevant to the PBR process would be required.</p> <p>Data Calls The New York State Department of Financial Services (NYDFS) has in recent years taken to declaring “data calls” on short notice for numerous areas of regulatory interest, such as universal life pricing, long term care, and variable annuities with guaranteed living benefits, among others. However, an example of a reasonable data call strategy is under PBR and is being supervised by the New York and Kansas insurance departments. Data calls for experience reporting are annual efforts that permit companies to plan accordingly. (It should be noted that New York opposes the changes to the SVL adopting PBR.) Use of a statistical agent simplifies interactions by offering companies a resource that is wholly focused on the data call task. This appointment and the interaction with companies create an environment that is organized, objective, transparent and cooperative. In 2011, the NAIC appointed MIB Solutions (a subsidiary of MIB) as the statistical agent for the PBR process, working with New York and Kansas insurance regulators.</p> <p>The industry’s and the regulators’ interests are better served by transparency and clear expectations. Companies should know exactly what regulators are looking for, when it is required to be submitted, and how any data submitted to a data call will be used. Regulators should offer companies the means to successfully comply with data call requirements without undue burden. A successful outcome has benefits for companies, regulators and consumers.</p> <p>Future Impacts and the Data Call Process As PBR begins to take effect (legislative approval is required in 40 states with 75% of the affected business, implying a 2017 implementation), companies should be confident that even as there will be complex reserving rules and modeling required, there is no need for the experience reporting to create any additional burden. Assuming that MIB continues in its role, companies can be confident that MIB’s practices since 2011 will remain a steady presence in this environment, giving companies and regulators one less thing to worry about with PBR.</p> <p>Many opinion leaders have begun to join with us here at Park Strategies to urge the parties to begin the detailed discussions that will eventually ensure that such value can be unlocked, subject to proper confidentiality and oversight.</p> <p>PBR requires data reporting on a fairly sophisticated basis. Regulators can take a lesson for data calls in other domains from the current experience from the PBR reporting data call structure.</p> <p>Let the dialogue escalate.</p> <p> </p> <figure id="attachment_4402" aria-describedby="caption-attachment-4402" style="width: 259px" class="wp-caption alignleft"><img decoding="async" class="wp-image-4402 size-medium" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/John-R.-Hurley-259x300.png" alt="John R. Hurley, Vice President, Park Strategies, LLC" width="259" height="300" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/John-R.-Hurley-259x300.png 259w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/John-R.-Hurley-600x695.png 600w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/John-R.-Hurley-885x1024.png 885w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/John-R.-Hurley-885x1024-720x833.png 720w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/John-R.-Hurley.png 1244w" sizes="(max-width: 259px) 100vw, 259px" /><figcaption id="caption-attachment-4402" class="wp-caption-text">John R. Hurley, Vice President, Park Strategies, LLC</figcaption></figure>The post <a href="https://www.insurance-advocate.com/2015/07/27/consumer-costs-at-stake-the-case-for-an-organized-approach-to-principle-based-reserving/">Consumer Costs at Stake: The Case for an Organized Approach to Principle-Based Reserving</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>A Special “Thank You”</title> <link>https://www.insurance-advocate.com/2015/07/27/a-special-thank-you/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 27 Jul 2015 08:46:30 +0000</pubDate> <category><![CDATA[2015]]></category> <category><![CDATA[July 27]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">http://gator4211.hostgator.com/~cinnww/insurance-advocate.com/?p=4368</guid> <description><![CDATA[<p>By Lisa K. Lounsbury When you look at the major wins and critical stops of the New York State Legislature’s 2015 session, it is critical that you know the story behind these successes. The volunteer leaders of IIABNY (the Independent Insurance Agents & Brokers of New York), our local association leaders, and our countless engaged […]</p> The post <a href="https://www.insurance-advocate.com/2015/07/27/a-special-thank-you/">A Special “Thank You”</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<p><strong>By Lisa K. Lounsbury</strong></p> <p><strong>W</strong>hen you look at the major wins and critical stops of the New York State Legislature’s 2015 session, it is critical that you know the story behind these successes. The volunteer leaders of IIABNY (the Independent Insurance Agents & Brokers of New York), our local association leaders, and our countless engaged members deserve the thanks of every New York insurance professional for their vital role. Thank you to all of you who attended local legislative events to learn about the issues, met with lawmakers in your districts, sent letters and emails, made phone calls and relentlessly worked to raise legislators’ awareness of our issues. Your strong support was invaluable.</p> <p>We at IIABNY feel privileged to work collaboratively alongside our devoted volunteer members, who give of their time and talent so generously to serve their industry and their insureds.</p> <p>The highlight of the session was enactment of a law regulating certificates of insurance designed to stop unaccountable third parties from coercing insurance producers into issuing inaccurate certificates. IIABNY has worked with the legislature and the governor for years to get this law enacted. We are pleased to note that it takes effect July 28th.</p> <p>IIABNY also successfully fought off a bill, supported by trial lawyers’ groups, which would have broadly increased insurance premiums by enabling individuals who believe their insurers have used unfair claims settlement practices to sue the insurers. The New York State Department of Financial Services has the power already to punish insurers who commit these practices. This bill would have encouraged frivolous lawsuits against insurers whenever a claimant felt wronged. It is dead for this session and hopefully for good. How did this get accomplished? In the closing weeks of the session, many IIABNY members “blitzed” their local legislators and convinced them to oppose the bill. As a result, the bill never came up for a vote. No lobbyist, no staff, no TV ads have the same effect of constituent communications on a consumer issue such as this.</p> <p>On the federal level, the Independent Insurance Agents & Brokers of America (IIABA) and hundreds of members from across the country (including many New York agents and brokers) also scored major wins for the industry. Working with our national office in Washington, IIABA members “lobbied” Congress to realize the extension of TRIA, the Terrorism Risk Insurance Program. They also created a new facility that will make it easier for insurance producers to obtain licenses in multiple states. Both measures were high priorities of the IIABA.</p> <p>As New York’s original and longestrunning insurance producer trade organization, we continue to be member driven and member centered, capitalizing in the legislature upon the hard work of our volunteer agents and brokers.</p> <p>For these legislative victories, they deserve our recognition. Cheers to them and all of you!</p> <p> </p> <figure id="attachment_4405" aria-describedby="caption-attachment-4405" style="width: 250px" class="wp-caption alignnone"><a href="https://www.insurance-advocate.com/wp-content/uploads/2015/07/Lisa-Lounsbury.png"><img decoding="async" class="size-medium wp-image-4405" src="https://www.insurance-advocate.com/wp-content/uploads/2015/07/Lisa-Lounsbury-250x300.png" alt="Lisa K. Lounsbury, CAE, AAI, senior vice-president of the Independent Insurance Agents & Brokers of New York, also serves as president of IIABNY’s membership services division IAAC, Inc. She is responsible for all for-profit activities; member recruitment; the overall marketing direction of the association; and the day-to-day oversight of the association’s operations. In addition, she was recently elected to the board of directors of the Big I Reinsurance Co., based in Alexandria, Virginia and the IIAA Agency Administrative Services, Inc. Board of Directors. She is an active volunteer in her community currently serving as a member of the Cazenovia Central School District Board of Education. " width="250" height="300" srcset="https://www.insurance-advocate.com/wp-content/uploads/2015/07/Lisa-Lounsbury-250x300.png 250w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Lisa-Lounsbury-600x719.png 600w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Lisa-Lounsbury-855x1024.png 855w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Lisa-Lounsbury-855x1024-720x862.png 720w, https://www.insurance-advocate.com/wp-content/uploads/2015/07/Lisa-Lounsbury.png 884w" sizes="(max-width: 250px) 100vw, 250px" /></a><figcaption id="caption-attachment-4405" class="wp-caption-text">Lisa K. Lounsbury, CAE, AAI, senior vice-president of the Independent Insurance Agents & Brokers of New York, also serves as president of IIABNY’s membership services division IAAC, Inc. She is responsible for all for-profit activities; member recruitment; the overall marketing direction of the association; and the day-to-day oversight of the association’s operations. In addition, she was recently elected to the board of directors of the Big I Reinsurance Co., based in Alexandria, Virginia and the IIAA Agency Administrative Services, Inc. Board of Directors. She is an active volunteer in her community currently serving as a member of the Cazenovia Central School District Board of Education.</figcaption></figure>The post <a href="https://www.insurance-advocate.com/2015/07/27/a-special-thank-you/">A Special “Thank You”</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Four Factors That Will Grow Your Agency</title> <link>https://www.insurance-advocate.com/2014/06/09/four-factors-that-will-grow-your-agency/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 09 Jun 2014 14:05:55 +0000</pubDate> <category><![CDATA[2014]]></category> <category><![CDATA[June 9]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">http://beta.insurance-advocate.com/?p=2588</guid> <description><![CDATA[<p>I personally feel that every agency needs at least one social media because I have witnessed significant growth from the day I hired my first social media engineer, due in large part to the way society and technology has progressed. Agency owners simply lack the time to manage all of the social media outlets, so that’s where the social media engineer comes in. I often hear agency owners say that they cannot afford a social media engineer, but what I say to that is: you can’t afford NOT to have a social media engineer!</p> The post <a href="https://www.insurance-advocate.com/2014/06/09/four-factors-that-will-grow-your-agency/">Four Factors That Will Grow Your Agency</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<h2><strong><em>Four Factors That Will Grow Your Agency</em></strong></h2> <p><em><strong> By Chris Paradiso</strong></em></p> <p><strong>A</strong>s I look back over the last nine months, there have been a few factors that have played a large role in the growth of our agency. The first of these factors is having a social media engineer. I personally feel that every agency needs at least one social media because I have witnessed significant growth from the day I hired my first social media engineer, due in large part to the way society and technology has progressed. Agency owners simply lack the time to manage all of the social media outlets, so that’s where the social media engineer comes in. I often hear agency owners say that they cannot afford a social media engineer, but what I say to that is: you can’t afford NOT to have a social media engineer! The reason I feel this way is because if you look at the direct writers such as Geico’s lizard, you’ll see that they are reaching the public at a minimum of three times a day. Our response to this strategy is to market our agency through social media because of its reaching power and little to no cost.</p> <p>The second factor would be hiring the right coach for processes and procedures. We hired a process and procedure trainer back in October 2013 and since then we have implemented many successful process changes. Additionally, without process change, you cannot move on to the procedural change. The process is not as simple as it sounds, as it took our agency about four months until we were able to work perfectly through the process. Once that was complete, we were able to move on to the procedure portion of the training. Two years ago, I would have never thought to implement a process and procedure manual. I will say it has absolutely played a huge role in our closing ratio, and we haven’t even touched on sales training. The reason we have implemented this coaching is because our goal is to remember that our shareholders are our policyholders, so we must do everything in our power to make the customer experience exactly what they want.</p> <p>Here’s a great quote:</p> <p><em>“There is only one boss: The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”</em></p> <p><em>– Sam Walton</em></p> <p>The third factor is the hiring of a sales coach. How can agency owners expect our staff/teammates to improve without investing in their sales skills? I have personally looked into many different areas of improving our sales skills but I have to say the investment in having someone inside the agency, working with our team, is the most powerful way to improve your staff. The investment is well worth it as long as you feel your agency has the right people apart of it.</p> <p>The fourth factor is getting a Mobile Marketing App. Why is this a necessity for your agency? Because it’s a mobile world! Connectivity with your existing clients is key, but with the legal limitations of text communication, an app is the way to go. Another great part of the app is that it allows us the ability to provide our clients with the best customer service possible. It allows our clients to pay their bill or file a claim with the push of a button. Society wants it and wants it right this second, so this will not only help our agencies give the client great service, it will also help agency owners be more profitable. Two other great points about the app are that it allows the client to have their insurance cards stored right in their phone, and the best factor of all is that it will allow us to communicate to our clients through push notification. The main reason why I say this is key for your agency for this year is because it will take nine months to a year to establish this app base with your clients, so that’s why you need to do it NOW, rather than later!</p> <p>These four factors are what agencies need to have in order to grow in our industry. Technology today has allowed people and businesses alike to operate and function at speeds we never thought possible. That’s why these four aforementioned tips will allow your agency to not only take on the massive marketing campaigns of the direct writers, but succeed in this highly competitive arena. As an agency owner, I have implemented all four of these factors and have found huge success – Your agency can too!</p> <p><strong><em>Christopher Paradiso, CPIA, is President of Paradiso Financial & Insurance Service. He has been acknowledged by several insurance publications as a leader in the industry for his use of digital marketing and social media to help brand his agency and promote other small businesses within his community. Chris has also been recognized for his charity work with The Connecticut Children’s Medical Center.</em></strong></p> <p><strong><em>In 2011, Chris introduced “Paradiso Presents LLC,” a social media program aimed at teaching small agencies how to not only survive, but compete in today’s complex online marketing world. Chris resides in Stafford Springs, CT with his wife and two children, Mia and Gianni.</em></strong></p>The post <a href="https://www.insurance-advocate.com/2014/06/09/four-factors-that-will-grow-your-agency/">Four Factors That Will Grow Your Agency</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Change is Not Always for the Better</title> <link>https://www.insurance-advocate.com/2014/05/12/change-is-not-always-for-the-better/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 12 May 2014 15:12:01 +0000</pubDate> <category><![CDATA[2014]]></category> <category><![CDATA[May 12]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">http://beta.insurance-advocate.com/?p=2474</guid> <description><![CDATA[<p>Change is Not Always for the Better By Marilyn M. Singleton, M.D., J.D. Recently, I took a respite from my concerns about the Affordable Care Act, which I left simmering in the crockpot while I was re-visiting the Kingdom of Cambodia. Most people visit Cambodia for a brief trip to Siem Reap to experience the […]</p> The post <a href="https://www.insurance-advocate.com/2014/05/12/change-is-not-always-for-the-better/">Change is Not Always for the Better</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<h2><strong><em>Change is Not Always for the Better</em></strong></h2> <h3><em><strong>By Marilyn M. Singleton, M.D., J.D.</strong></em></h3> <p><strong>R</strong>ecently, I took a respite from my concerns about the Affordable Care Act, which I left simmering in the crockpot while I was re-visiting the Kingdom of Cambodia.</p> <p>Most people visit Cambodia for a brief trip to Siem Reap to experience the magnificent ancient temples at Angkor Wat, the symbol adorning its flag. Some visit the capital city, Phnom Penh, to experience mass graves and a torture camp, prison, and execution center. Cambodia has a haunting physical and emotional landscape and an intangible something about these inspirational people that lures many visitors back.</p> <p>The prolific and feared Khmer Angkor Empire that extended over Southeast Asia was transformed by years of civil or border wars and French protectionism. But the mother of all change was imposed by a native Khmer, Saloth Sar, better known as Pol Pot, in the name of creating an equal society.</p> <p>Pol Pot led the communist Khmer Rouge who overthrew the sitting Khmer Republic and renamed the country “Democratic Kampuchea.” Within hours of victory in 1975, armed soldiers began herding the two million residents out of Phnom Penh. Pol Pot assured them they could return.</p> <p>Instead, the Khmer Rouge razed Phnom Penh and other cities and towns. The residents were forced into the countryside to work collective farms up to 18 hours a day on meager rations. Villagers’ houses were burned to ensure they could not return.</p> <p>Pol Pot destroyed anything that represented capitalism and pre-revolutionary society, including hospitals, schools, Buddhist temples, and hotels. The goal was to return to “Year Zero” with a rice-based economy and a single agricultural class.</p> <p>To that end, Pol Pot immediately murdered the educated and people who wore glasses or had a high forehead (signs of intellect). Others were imprisoned in tiny cells and tortured “to confess” to “pre-revolutionary lifestyles and crimes,” which usually included some kind of free-market activity. The reward for a “confession” was execution or life in a labor camp with “reeducation.”</p> <p>Ironically, in 1979 the Vietnamese freed the Cambodians from their twisted leader when they extended their border war. All told, Pol Pot killed 2 to 3 million – at least 25 percent of the population – through murder, starvation, or disease. Many of the dead were buried in some 20,000 mass graves, or “Killing Fields” all over the country where human remains still rise to the surface.</p> <p>Despite the arrival of peace in 1993, Pol Pot’s legacy lives on. Fifty percent of the population is under age 25. Forty percent of people over age 40 have post-traumatic stress disorder (PTSD). With 95 percent of doctors and 80 percent of teachers murdered, the country is limping along to recovery with little infrastructure. Even knowing the government plays fast and loose with foreign aid, Cambodia draws more donor-based non-governmental organizations than any other country.</p> <p>Phnom Penh is growing, with new government buildings and hotels amidst the remains of once-elegant French colonial homes and burned-out buildings. Siem Reap has doubled its hotels in the last five years and boasts the best Mexican restaurant in Asia. (We preferred standard Khmer fare of rice, morning glories, and fish.)</p> <p>Although medical care is free to the certifiably poor in sparsely equipped clinics, 85 percent of children are seen in five modern hospitals established by Dr. Beat Richner with private donations. His hospital in Siem Reap is flanked by 5-star hotels. People arrive on foot or 3 to a motorbike: a driver, a patient, and someone holding the IV bag. By 5 a.m., hundreds of people are queued up. Street vendors sell French bread and crepes or rice and noodles to those in line.</p> <p>A written constitution, a three-branch government, and multi-party elections proved to be no guarantee of good government. Corruption, economic mismanagement, and lack of transparency have become part of the government fabric. Consequently, some Cambodians have just tuned out. Fortunately, many people refuse to be miserable and are determined to overcome past and current abuses by their leaders. Some carry those little black and white composition books and are not shy about asking for help with their English so they can get good jobs. They have their own vision of a better life.</p> <p>Pol Pot destroyed Cambodian society by promising social and economic equity. Expressing no regret, his last words were reportedly, “Everything I did, I did for my country.”</p> <hr /> <p><strong><em>Marilyn M. Singleton, MD, JD is a board-certified anesthesiologist and Association of American Physicians and Surgeons (AAPS) member. Despite being told, “they don’t take Negroes at Stanford,” she graduated from Stanford and earned her MD at UCSF Medical School. Dr. Singleton completed 2 years of Surgery residency at UCSF, then her Anesthesia residency at Harvard’s Beth Israel Hospital. She was an instructor, then Assistant Professor of Anesthesiology and Critical Care Medicine at Johns Hopkins Hospital in Baltimore, Maryland before returning to California for private practice. While still working in the operating room, she attended UC Berkeley Law School, focusing on constitutional law and administrative law. She interned at the National Health Law Project and practiced insurance and health law. She teaches classes in the recognition of elder abuse and constitutional law for non-lawyers. Dr. Singleton recently returned from El Salvador where she conducted makeshift medical clinics in two rural villages. Her latest presentation to physicians was at the AAPS annual meeting about challenging the political elite.</em></strong></p> <p> </p>The post <a href="https://www.insurance-advocate.com/2014/05/12/change-is-not-always-for-the-better/">Change is Not Always for the Better</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Social Media –The 5 Reasons Your Business Cannot Survive Without It</title> <link>https://www.insurance-advocate.com/2014/04/28/social-media-the-5-reasons-your-business-cannot-survive-without-it/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 28 Apr 2014 14:49:59 +0000</pubDate> <category><![CDATA[2014]]></category> <category><![CDATA[April 28]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">http://beta.insurance-advocate.com/?p=2464</guid> <description><![CDATA[<p>Social Media –The 5 Reasons Your Business Cannot Survive Without It By Chris Paradiso Social media is no longer just a possible fad. It is now an actually form of communication. If you are an agency owner and have yet to begin using social media to support your sales strategy, you may need to recheck […]</p> The post <a href="https://www.insurance-advocate.com/2014/04/28/social-media-the-5-reasons-your-business-cannot-survive-without-it/">Social Media –The 5 Reasons Your Business Cannot Survive Without It</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<h2><strong><em>Social Media –The 5 Reasons Your Business Cannot Survive Without It</em></strong></h2> <h3><em><strong>By Chris Paradiso</strong></em></h3> <p><strong>S</strong>ocial media is no longer just a possible fad. It is now an actually form of communication. If you are an agency owner and have yet to begin using social media to support your sales strategy, you may need to recheck your approach. Social media is one remarkable marketing tool. Let’s talk about five reasons why all businesses will not survive without social media built into their marketing strategy.</p> <p><strong>Number 1: </strong><em>Social media is extremely contagious</em>—More than likely, the biggest problem of your business is getting your marketing out to as many people as possible for the smallest amount of investment. Social media allows you to target a relatively small sector of people while reaching a large marketing audience. Here’s a quick example: if you can get one person to like your agency Facebook page, that one person will turn into a force multiplier projecting your page to several others pages, which in turn will look at your profile because it’s showing up on their page.</p> <p><strong>Number 2</strong>: <em>The power of word-of-mouth marketing</em>—you can turn people into advertising agents very easily. A person may either see your Facebook page and skip over it without thinking anything or that person may follow that link back to your Facebook page. Now imagine you get a couple hundred people to look at your page–suddenly your chances of more people visiting your agency Facebook page will grow as each person likes your page. This process will continue to repeat and the best about it is that it’s all FREE.</p> <p><strong>Number 3</strong>: <em>The ability to build an audience</em>— social media allows you to develop a marketing audience like no other platform. You do not usually have the option to have people actively attending your advertising but through social media, it works out well. With social media you have a static location where people can come to see your advertisement on their time, and in today’s world people want to work and review things on their time not yours. This allows you to direct traffic to these spots within the Internet world rather than elsewhere on the web.</p> <p><strong>Number 4</strong>: <em>The extreme power of engagement with your customer</em>—with social media you can offer giveaways or incentives to get people to like your page or follow you on twitter. Gathering your audience is the first step but the key factor is the engagement after they have joined your audience. Make sure you’re attracting an audience that you can sell to. For example, if you’re on Facebook giving a free iPad away to those who like your page, are the people that you’re attracting even people that you can sell insurance to? Review your audience and come to understand who they are before you move on.</p> <p><strong>Number 5</strong>: <em>There is nothing more powerful than a client who socially approves of you and your agency</em>—Social media gives you the ability to see if the people who have liked your page did so for their personal gain or if they are actually approving of your insurance agency. Social proof is one of those quiet ways that your agency can turn in ROI on it social media marketing very quickly. One quick way to discourage people within the social media world is to ignore them. Ignoring them will help your agency lose business, so if there’s one key factor in all social media marketing, it is to always respond and never turn a blind eye to a comment.</p> <p>You’re probably looking at these five key factors and wondering why I left search engine optimization out. Search engine optimization is by far the most powerful tool for all of our agencies, but I’ll save that discussion for my next article.</p> <p><strong><em>Christopher Paradiso, CPIA, is President of Paradiso Financial & Insurance Service. He has been acknowledged by several insurance publications as a leader in the industry for his use of digital marketing and social media to help brand his agency and promote other small businesses within his community. Chris has also been recognized for his charity work with The Connecticut Children’s Medical Center.</em></strong></p> <p><strong><em>In 2011, Chris introduced “Paradiso Presents LLC,” a social media program aimed at teaching small agencies how not only survive, but compete in today’s complex online marketing world. Chris resides in Stafford Springs, CT with his wife and two children, Mia and Gianni.</em></strong></p> <p> </p>The post <a href="https://www.insurance-advocate.com/2014/04/28/social-media-the-5-reasons-your-business-cannot-survive-without-it/">Social Media –The 5 Reasons Your Business Cannot Survive Without It</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> <item> <title>Clumsy Regulation Puts Insurance at Risk</title> <link>https://www.insurance-advocate.com/2014/04/14/clumsy-regulation-puts-insurance-at-risk/</link> <dc:creator><![CDATA[Guest Author]]></dc:creator> <pubDate>Mon, 14 Apr 2014 14:03:33 +0000</pubDate> <category><![CDATA[2014]]></category> <category><![CDATA[April 14]]></category> <category><![CDATA[Past Issues]]></category> <category><![CDATA[Guest Editorial]]></category> <guid isPermaLink="false">http://beta.insurance-advocate.com/?p=2436</guid> <description><![CDATA[<p>Clumsy Regulation Puts Insurance at Risk By Diane Katz, Thomas A. Roe Institute The Senate Banking Committee convened this week to examine recent moves by federal regulators against insurance companies. There exists considerable confusion on and off the Hill about Washington’s place in what has always been the states’ regulatory domain—confusion produced by lawmakers’ careless […]</p> The post <a href="https://www.insurance-advocate.com/2014/04/14/clumsy-regulation-puts-insurance-at-risk/">Clumsy Regulation Puts Insurance at Risk</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></description> <content:encoded><![CDATA[<h2><strong><em>Clumsy Regulation Puts Insurance at Risk</em></strong></h2> <p><strong><em>By Diane Katz, Thomas A. Roe Institute</em></strong></p> <p><strong>T</strong>he Senate Banking Committee convened this week to examine recent moves by federal regulators against insurance companies. There exists considerable confusion on and off the Hill about Washington’s place in what has always been the states’ regulatory domain—confusion produced by lawmakers’ careless crafting of the Dodd–Frank statute. Absent a congressional fix, unwarranted regulatory actions threaten to disrupt the insurance industry, with costly consequences to consumers and the economy.</p> <p><strong>Targeting Insurers</strong>. Insurance was regulated solely by states prior to 2010.1 Thereafter, Dodd–Frank spawned a Federal Insurance Office within the Department of the Treasury, as well as new rules on reinsurance and specialty lines. The act also established a Financial Stability Oversight Council2 (FSOC) tasked with, among other things, designating for heightened regulation any “nonbank financial companies” whose failure could supposedly present systemic risk to the economy. 3</p> <p>This enhanced federal regulation of insurers, asset managers, and other so-called nonbanks was intended to shield taxpayers from any more of the multibillion- dollar bailouts that resulted from the 2008 financial crisis. In reality, the new regime further entrenches the dubious notion that some firms are “too big to fail,” thereby setting the expectation of future bailouts.</p> <p>The insurance industry is widely regarded as blameless for the housing bubble, its burst, and the ensuing economic calamity.4 Making it a regulatory target exposes the degree to which both Congress and federal regulators have misinterpreted the real causes of the crisis.</p> <p>The first nonbanks singled out by the council have all been insurers, including American International Group (AIG),5 GE Capital, and Prudential Financial. All three are sizable enterprises, to be sure. But size alone is not a reliable predictor of risk; a big firm may fail without systemic consequences.</p> <p>Indeed, “too big to fail” is more of a political doc trine than an economic one. Business failure is both unavoidable and necessary; it rids markets of inefficiency and creates opportunities for innovation. In the absence of objective criteria, the screening process for systemic importance has been left largely to the whims of the council, to whom Congress delegated unconstrained powers.</p> <p>Insurers are understandably concerned about falling under the regulatory control of the Federal Reserve Board. Their designation as so-called systemically important institutions subjects them to costly and intrusive regulation, including data sharing, stress testing, and copious reporting. 6 And the Fed’s structure as a self-financing entity deprives those it regulates from direct redress through Congress.</p> <p><strong>The Collins Amendment</strong>. Of particular concern is the so-called Collins Amendment, which Fed officials interpret as requiring capital and leverage requirements on insurers designated as systemically important. As currently written, the requirements are “bank-centric” and thus conflict with the principles of insurance investment. (The differences between the two industries are one of the reasons they have been regulated differently for decades.)</p> <p>Capital requirements for banks are designed to maintain a cushion against losses that may result from short-term liabilities. But unlike bank deposits, there is no real risk of a “run” on insurance company assets. Insurance liabilities are intended to be “illiquid.” In the event of insurer insolvency, loss payments come due only over the course of years. Insurers engage in long-term investment to complement these long-term liabilities and also rely on time-tested actuarial science to determine the level of adequate reserves.</p> <p>Whether the Fed has the authority to tailor a more relevant set of standards for insurers is a matter of debate. Fed chairwoman Janet Yellen has acknowledged that the banking standards are ill-suited to the insurance industry but maintains that the statute restricts the flexibility of the Fed to design more appropriate requirements.7</p> <p>In contrast, Senator Susan Collins (R–ME), who authored the amendment, argues that Congress never intended for regulators to apply bank-centric capital standards to insurance entities, which are already regulated by the states.8 To “clarify” the issue for the Fed, Collins has introduced legislation to make plain that the Federal Reserve is not required to impose the capital requirements upon insurers so long as they are regulated at the state level.</p> <p>There is no shortage of regulatory oversight nor any reason for the Fed to regulate the insurance industry. Each state oversees a guaranty fund financed by insurers to cover the claims of insolvent firms. State regulators have also established proven resolution procedures in the event of insurer insolvency.</p> <p>Ironically, the efforts of federal regulators to usurp states’ oversight could actually destabilize the industry rather than reinforce it. A too-big-to-fail designation may erode company discipline under the assumption that the government will remedy future problems. There is also concern that distinguishing an insurer as systemically important will give an unfair advantage to firms that are regarded as protected by the federal government.</p> <p>The cur rent debate in Congress is fixed for the moment on the Collins Amendment. The real problem, however, is the council’s designation of insurers as systemically important. Under any plausible set of criteria, traditional insurance products, as long-term liabilities backed by long-term investments, cannot pose a systemic risk to the nation’s economy. The best remedy, therefore, is legislation to bar the council from going after insurers.</p> <p>Consumers, of course, will ultimately bear the costs of this unnecessary regulation. But the intangible costs may well exceed the billions of dollars in higher premiums that the regulatory burden would cause. Among the many flaws of Dodd– Frank is federal interference in states’ regulation of insurance. The federal government already wields punishing control of the U.S. economy and Americans’ lives.</p> <p> </p> <p><strong><em>Diane Katz is a Research Fellow for Regulatory Policy in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.</em></strong></p> <p><strong><em> </em></strong></p> <p>1. States collaborate on uniform standards through the National Association of Insurance Commissioners.</p> <p>2. The FSOC is composed of 15 members—10 voting seats and five nonvoting positions. The 10 voting seats are filled by the heads of nine federal agencies, including the Treasury Secretary and the chairman of the Federal Reserve, plus one presidential appointee. The five nonvoting slots are occupied by two federal agency heads and three state regulatory officials.</p> <p>3. The statute also singles out bank holding companies with assets exceeding $50 billion for enhanced supervision by the Federal Reserve Board.</p> <p>4. The term “life insurance” appears only once in the entire 663-page analysis of the Financial Crisis Inquiry Report. Steven A. Kandarian, chairman, president, and CEO of MetLife, comments at the Capital Markets Summit, April 10, 2013, https://www. metlife.com/assets/cao/pr/Capital- Markets-Summit-Remarks-FINAL.pdf (accessed March 18, 2014).</p> <p>5. The taxpayer bailout of AIG was unrelated to its insurance business. The losses stemmed from its Financial Products division, which engaged in credit default swaps on subprime mortgages.</p> <p>6. Deloitte Center for Regulatory Strategies, “SIFI Designation and Its Potential Impact on Nonbank Financial Companies,” http://www.deloitte.com /assets/Dcom-United- States/Local%20Assets/Documents/us_aers_grr_c rs_SIFI%20Designation%20%20_0313.pdf (accessed March 18, 2014).</p> <p>7. Cheyenne Hopkins, “Insurers Urge Lawmakers Not to Impose Bank Capital Requirements on Industry,” Insurance Journal, March 11, 2014, http://www.insurancejournal.com/news/national/ 2014/03/11/322901.htm (accessed March 18, 2014).</p> <p>8. News release, “Finding the Right Capital Regulations for Insurers,” office of Senator Susan Collins (R–ME), March 11, 2014, http://www.collins.senate.gov/ public/index.cfm/2014/3/finding-theright-capital-regulations-for-insurers (accessed March 18, 2014).</p>The post <a href="https://www.insurance-advocate.com/2014/04/14/clumsy-regulation-puts-insurance-at-risk/">Clumsy Regulation Puts Insurance at Risk</a> first appeared on <a href="https://www.insurance-advocate.com">Insurance Advocate</a>.]]></content:encoded> </item> </channel> </rss>