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IIABA News
NFIP Extended Until March 28; Big “I” Seeks Long-Term Reform

This week, the National Flood Insurance Program (NFIP) was extended until March 28 as part of an extender’s bill. The Senate is expected to consider a one-year extension next week.

In 2009 alone, NFIP was extended four times and this is the second extension in 2010. This series of puddle-hopping extensions has prevented the program from ending but has not made any long-term changes. Although the Big “I” appreciates the work by Congress and President Obama for short-term extensions, the association strongly feels that a longer term extension coupled with reforms of the NFIP are urgently necessary. The association strongly supports an increase in maximum coverage limits and the addition of optional business interruption insurance. Homeowners and businesses need both higher coverage limits and business interruption insurance in order to properly insure their homes and businesses.

In the 110th Congress, the Flood Insurance Reform and Modernization (FIRM) Act of 2007 made progress in the House and Senate. The legislation would have extended the program for five years and made significant and needed reforms to help put the program on sound financial footing. Last summer, similar legislation was introduced in the House of Representatives.

The Big “I” continues to call for more permanent reforms, verses the temporary extensions that have kept the program alive but have failed to make much needed reforms. The association is concerned that this “Groundhog Day” approach of last minute extensions continues to cause significant uncertainty in the marketplace and the Big “I” will continue to actively lobby for a longer term extension and real reform.

IIABA News
Rep. Bruce Braley Addresses Big “I” Young Agents and InsurPac Leadership

Yesterday, Rep. Bruce Braley (D-Iowa) expressed his opposition to crop insurance program cuts and federal regulation of insurance during his remarks to the Annual Young Agents & InsurPac State Chairpersons Legislative Luncheon at the Big “I” Legislative Conference & Convention.

Braley discussed his opposition to the Obama administration’s proposed cuts to the national crop insurance program. The Standard Reinsurance Agreement (SRA) is currently in the midst of a renegotiation process which occurs every five years. This financial agreement is negotiated between the USDA Risk Management Agency (RMA) and approved crop insurance companies.

”I have serious concerns about the proposed changes,” said Braley. “I feel that these cuts are excessive and could seriously damage the federal crop insurance program.” Braley’s district includes a large agricultural area and the cities of Waterloo, Cedar Falls, Dubuque, Clinton, Davenport and Bettendorf. 

Braley received a round of applause when he discussed his position on the proposed Federal Insurance Office (FIO).

“I support the language that explicitly states that neither FIO nor the U.S. Treasury Department has regulatory or supervisory authority over the business of insurance,” said Braley.

Braley, who had attended a memorial service for the late Rep. John Murtha (D-Pa.) that morning, opened his remarks by discussing the senior congressman’s life and contributions. He also discussed financial regulatory reform, estate tax and other issues.

Braley was first elected to the U.S. House of Representatives in 2006. He serves on the House Energy and Commerce Committee and as vice chair of the Democratic Congressional Campaign Committee. He is in his second term and represents Iowa’s first congressional district.

The event also featured the presentation of the annual InsurPac National Championship awards, Young Agent of the Year and Eagle awards. The 2009 winners are:

InsurPac National Championship Award – Texas: This award goes to the state whose agents contribute the most money for InsurPac in a calendar year.

Young Agent National Championship Award - North Carolina: This recognition honors the state whose young agents donate the most money to InsurPac. Young Agents from North Carolina contributed $12,762.

InsurPac Young Agent Award: The 2009 winner, John Braut of Montana, previously served on the Big “I” Young Agent Committee and when his tenure concluded, he brought his enthusiasm and dedication to the InsurPac Board of Trustees. He played a significant role in engaging rural agents.

InsurPac Eagle Awards: This award is given annually to states that surpass a fundraising average of $100 per member agency. The 2009 recipients are Idaho, Nebraska, North Dakota and South Carolina.

Education
Unlock the Executive Liability Coverages Mystery

On April 14 at 2 p.m. EST, industry expert Diane Voit will present a webinar entitled “Unlocking the Executive Liability Coverages Mystery.” This two-hour education opportunity will provide an overview of the nonprofit organizations’ operations and the protections available to those organizations through an executive liability policy. Participants will learn about nonprofit organizations’ liabilities and exposures, including board member actions creating liability, volunteer liabilities and other sources of claims from volunteer and certification activities. The webinar will offer suggested risk management procedures to prevent losses arising from these activities. The presentation will also include analysis of the combined D&O and EPLI policy wording, with an emphasis on policy provisions common to both coverages. Participants will gain a working knowledge of the defense and settlement provisions, application of the limit of liability and retention, operation of the extended reporting period and the importance of the application warranty and severability provisions. Click here to learn more and register. For more information, e-mail BestPractices@iiaba.net. 

Legislative Conference & Convention
Conference to Feature Presentation on Social Media in Agencies

Most agents have heard of social media tools like Facebook, Twitter and MySpace but have questions about how to effectively use them in their agencies. Susan Bonner, Big “I” director of agent development and marketing, will present“Harness the Power of Social Media in Your Agency” at the Big “I” Legislative Conference & Convention that will serve as a valuable tool for agencies just beginning their foray into the world of online networking. The two hour-long presentation will be held March 5 from 10:15 a.m. to 12:15 p.m. in the Maryland BC suite lobby level of the Marriott Wardman Park Hotel. Don’t miss this opportunity to take the leap into social media success!

Young Agents
YAC Gives Back Event Promises Fun for All

YAC Gives Back: A Benefit for InVEST Scholarships is rapidly approaching and promises a good time for all. From 8 p.m. to 11 p.m. on March 4, the Marriott ballroom at the Big “I” Legislative Conference & Convention will become part silent auction, part live auction, part casino and part networking opportunity. This inaugural event co-sponsored by InVEST and Young Agents will include games, music, live and silent auctions and the company of industry peers, with all proceeds benefiting the InVEST scholarship fund. Event admission is complimentary with registration for the Legislative Conference & Convention and includes $25,000 in game chips and one drink ticket. Poker game registration will take place on site and costs $100. Don’t miss the fun!


Big “I” Markets
Two Umbrella Markets Now Available on BIM

Text hereA personal umbrella policy is arguably the best value in the insurance business, providing about $1 million of insurance coverage for less than $200 a year. Most people buy an umbrella policy for its excess coverage, including defense costs. However, it has far greater value as a risk management tool.

Help clients eliminate coverage gaps that fall outside the scope of underlying auto and homeowners policies with an umbrella policy.  Educating customers on those gaps is a critical part of the risk management process. That task can be difficult because of the lack of consistency among umbrella policies, both in who and what they cover. For this reason, Big “I” member agents now have access to two standalone personal umbrella policies.

For more than 25 years, RLI has been the primary market for members who need access to a standalone personal umbrella product. RLI has proven to be a strong and, above all, stable market with unmatched financial strength in the marketplace and is the recommended preferred market for Big “I” members. RLI has had 25 years of unparalleled consistency, and last year RLI introduced PUP Special to expand its underwriting appetite. However, in some circumstances, agents may have a client whose risk classification and/or coverage needs fall outside of RLI's guidelines.

Therefore, agents now access an alternative standalone personal umbrella market on Big "I" Markets to place umbrella risks that RLI will not write. Anderson & Murison provides access to National Casualty's personal umbrella market. Click here to view some of the key distinctions between the two markets, and click here for a detailed chart about the primary and alternative markets.

To access the A&M product, go to www.bigimarkets.com and select “Personal Umbrella Alternative Market” under the personal lines product menu. Agents can submit A&M applications on Big "I" Markets in all states except Connecticut, Louisiana and New York, while members in Alaska, California, Hawaii, Oregon and Washington should contact their state association for applications and rates. Information about how to access the RLI preferred umbrella is also available on the Big "I" Markets Web site (select “Personal Umbrella Preferred Market”) and you can submit RLI applications via Big "I" Markets in the states of Alaska, Arizona, California, Washington, D.C., Florida, Georgia, Louisiana, Massachusetts, Maine, Minnesota, Missouri, Montana, North Dakota, New Hampshire, Nevada, New York, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, West Virginia and Wyoming. Agents can also submit RLI applications directly to their state administrator. For more information about both markets, visit www.iiaba.net/umbrella. 

ACT
Security Alert: Move from Internet Explorer 6 to a Newer Version

Text hereInternet Explorer 6 was released more than eight years ago, and agents still using this old browser should consider upgrading to a newer version. Internet Explorer 7 was released in October 2006 and Internet Explorer 8 was released in March 2008. The newer versions’ security, performance and compatibility are much improved over Internet Explorer 6. The choice of which browser to upgrade to depends on the other applications the user is running. Since Internet Explorer 7 was released a few years ago, it is more likely to be compatible with all applications and some carriers and vendors have reported that their Web sites are not yet compatible with Internet Explorer 8.

For agents, having adequate security to protect your clients’ private information is critical. There have been general concerns about Internet Explorer 6 security being too weak. Recent events, including the January breach of Gmail accounts, exploited a vulnerability in this edition of the browser. Since then, Google has communicated that they will stop supporting Internet Explorer 6 for some of their applications including Gmail and Google calendar. The United States Computer Emergency Readiness Team (US-CERT), part of the Department of Homeland Security, has also issued an advisory about Internet Explorer 6.

To improve security, agents can take one of two suggested actions: apply the Microsoft patch to Internet Explorer 6 or upgrade to a more current version of Microsoft's browser. The latter would result in performance benefits beyond the important security improvement. Contact Jeff Yates for more information at jeff.yates@iiaba.net.