Travelers Joins Trusted Choice®

Travelers Joins Trusted Choice®

Industry-leading carrier is latest brand movement company partner.

The Travelers Companies, Inc. has joined the Trusted Choice® consumer branding program for independent insurance agents and brokers. A leading provider of property-casualty insurance for auto, home and business, Travelers is one of the largest independent agency insurance companies in the U.S. A component of the Dow Jones Industrial Average, Travelers is rated A+ (Superior) by A.M. Best, and built its success by providing innovative insurance and risk protection products and services.

“Working with an independent agent is an excellent way for consumers to choose the right insurance to meet their individual needs,” says Brian MacLean, president and chief operating officer of Travelers. “At Travelers, we are dedicated to our continued partnerships with independent agents. With 13,000 agents and brokers around the country who sell our policies, we want to help them grow their business. We’re pleased to support Trusted Choice® as a means to promote the unique expertise and high quality customer service independent agents provide.”

“Travelers is a premier global brand of insurance and one of the largest writers of property-casualty insurance through independent insurance agents,” says Robert Rusbuldt, Big “I” president & CEO. “Joining Trusted Choice® further demonstrates its commitment to the independent insurance agency distribution system and confirms its strong belief that independent agents are the trusted advisors for consumers.”

Trusted Choice® was launched by the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”) and several independent agency companies to highlight the benefits independent agencies and brokerage firms offer consumers—choice of companies, customization of policies and advocacy support. It is the premier consumer brand for independent insurance agents and provides national advertising and other strategic tools to reach consumers.

Trusted Choice® educates consumers about the benefits of using independent agents and brokers for their insurance needs: choice of companies, customized policies and advocacy support. Trusted Choice® is the consumer marketing identity for over 10,400 independent insurance agencies and brokerage firms and 54 leading insurance companies.

How will the health care overhaul affect your agency’s health insurance sales?

On the Hill

Health Care Reform: An Agent Overview

How will the health care overhaul affect your agency’s health insurance sales?

In the wake of Congress passing and President Barack Obama signing into law the largest health care reform legislation since the 1960’s, the Big “I” is working overtime to analyze its impact on agencies that sell health insurance. Unfortunately, many of the specifics affecting agents’ ability to sell health insurance will be somewhat of a question mark as the law’s implementation occurs over the next four years. Many of the details of how coverage will be placed will be determined by regulations issued by the Department of Health and Human Services (HHS) and individual states in the years to come. More detailed analysis will be ongoing, but at this time, the Big “I” can provide some generalities about what the bill may mean for insurance agents that are selling health insurance policies. This article discusses the bill from the insurance salesman perspective and not that of a small business owner, which of course is another important vantage point of Big “I” members. Next week’s article will review the legislation from this small business perspective.

One of the most important provisions of the new law that will impact agents is the creation of state “Health Insurance Exchanges” for individuals and small groups. The law requires each state to create exchanges by 2014 that individuals and employers can go to for insurance that is provided by participating private insurers. The exchanges will include four tiers of private plans, co-op plans and at least two multi-state qualified health plans contracted out to private carriers by the Office of Personnel Management (OPM). The legislation leaves much of the details of the operation of these exchanges to each state. While agents will be able to place coverage for clients through the exchanges, the marketing or commission regulations are not yet clear. Additionally, consumers will be able to go directly to the exchanges without the assistance of an agent, and some consumers may end up choosing to do so.

Companies, meanwhile, will have to abide by new “medical loss ratios” (MLR) where the insurance plans must spend a certain percentage of premiums on health care delivery costs only. The MLR will be 80% for individual policies and small group plans while for large group plans (>100 individuals), it will be 85%. This means that, starting in 2011, companies will only be able to spend 20% of individual/small group plan premiums and 15% of large group premiums on things such as marketing, administrative costs and agent commissions. Companies would be required to provide rebates to consumers if they fail to comply with the MLRs.

Additionally, insurance companies will be required to abide by new federal requirements such as not discriminating against preexisting conditions, eliminating lifetime benefits caps, restrictions on annual caps and abiding by new individual and small group rating bands. Finally, the law also imposes a direct $2 billion annual tax on health insurance companies. The tax will increase each year until reaching $14.3 billion in 2018. For subsequent years, the fee will increase based on the previous year’s premium growth. These taxes are expected to strain insurance company profitability and their available capital for marketing-type activities.

The law is also estimated to bring approximately 32 million new Americans on to the health insurance rolls. About half of these would be the result of expanded government entitlement programs such as Medicaid and SCHIP. Nonetheless, that still means an estimated 16 million new consumers will be accessing the private insurance market. Although this means agents may potentially lose some customers because of direct competition from the Exchanges and insurance companies may face significant downward pressure on their bottom line that could translate to similar downward pressure on agent profitability, there is at least the opportunity for new customers.

Finally, the Big “I” anticipates that, for the next few years, many customers (especially small businesses) will find this new, complicated law and the resulting regulations very challenging. As a result, they will need an experienced agent to guide them through the process of obtaining health insurance more than ever. The Big “I” is committed to providing its members with the necessary tools to serve as that trusted health insurance advisor.

Margarita Tapia (margarita.tapia@iiaba.net) is Big “I” director of public affairs.

President Obama Signs Health Care Bill into Law

On the Hill
President Obama Signs Health Care Bill into Law

Final bill specifies that agents and brokers will be able to sell health insurance both inside and outside of exchanges.

Late Sunday night, using some unusual tactics to ensure Congressional approval, the U.S. House of Representatives simultaneously passed the Senate health care reform bill, along with a package of changes to the bill through a rare parliamentary procedure known as “reconciliation”. On Tuesday, President Barack Obama signed into law this bill which represents the most sweeping health care reform package since the Great Society of the 1960s that created Medicare. The reconciliation bill must now be passed by the Senate and the House in identical form before it’s sent back to the president for his signature.

The Big "I” is disappointed that after months of negotiations, hearings, debates and votes in multiple Senate and House committees the final bill does little to stem the skyrocketing cost of health care and will be partially financed through tax increases on certain individuals and small business during one of the most perilous financial periods in American history. However, it’s important to note that, due to the efforts of the Big “I”, significant improvements were made to the legislation throughout the process to ensure a role for the independent insurance agent in the future health care market. Without these changes, the negative impact on the independent agency system would have been much greater.

There will be a number of changes in the delivery of health insurance which both agents and consumers will experience because of the new law. For the first time, individuals will be required to purchase health insurance, and businesses with more than 50 employees will be required to offer health insurance coverage or be forced to pay a fine.

The Congressional Budget Office (CBO) estimates that 32 million new Americans will be on health insurance rolls by 2019, with 16 million of these being new private market consumers, and the remaining 16 million obtaining coverage through a major expansion of Medicaid. Temporary small business tax credits will be available for some businesses with less than 25 employees, and millions of individuals will receive new government subsidies to help them purchase health insurance. The legislation also creates state-based health care exchanges that would serve as catalysts for individuals and small businesses (up to 100 employees) to claim subsidies and purchase health insurance.

In a major win for the Big “I”, the final bill specifies that insurance agents and brokers will be able to sell health insurance both inside and outside of these health insurance exchanges. As a result of the Big “I” grassroots effort and our special “Health Care Fly-In” last summer, individuals and small businesses that choose to purchase through an exchange will still be able to count on the sound advice of independent insurance agents and brokers.

One of the most worrisome aspects for small businesses is how Congress elected to pay for the reform. In order to finance the reform effort, the expansion of Medicaid, and the new subsidies for low-income Americans, a .9% Medicare surtax will be imposed on some individuals as well as small businesses that file as individuals. A new 3.9% tax on nonwage income for these same individuals and successful small businesses will also be imposed. In addition, this tax is not indexed to inflation and therefore will capture more and more taxpayers over time. The Big “I” is greatly concerned about the impact any new taxes will have on small businesses and individuals that are still struggling through the current economic climate.

According to the Congressional Budget Office (CBO), the final price tag is estimated to be $940 billion of taxpayer dollars over ten years. The CBO also projects that small businesses will see little to no decrease in their monthly premiums and individuals will see an increase of 10-13%. The impact on premiums reinforces the Big “I’s” view that this legislation was incomplete at best and, though it increases the number of Americans with insurance, it does not adequately bend the cost curve of health care for the future. Furthermore, it is expected to balloon the federal budget deficit over time, instead of containing costs as necessary. The Big “I” is also concerned that the package did not meaningfully address medical malpractice reform, an issue that the Big "I" has strongly supported including in the final bill in order to help bring healthcare costs down.

Early Thursday morning, the Senate Parliamentarian ruled in favor of two minor Republican “points of order” on the reconciliation bill unrelated to the underlying health care bill. The Senate then approved the reconciliation bill by a vote of 56 to 43. Because of the two points of order, the House of Representatives will have to vote, one last time, on the Senate approved reconciliation text. Final votes on this reconciliation bill are expected this evening or tomorrow morning.

Margarita Tapia (margarita.tapia@iiaba.net) is Big “I” director of public affairs.

UAIIA Newsletter - February 2010

1. UAIIA’s 91st Annual Convention Recently a convention packet was sent out by email for UAIIA’s 91st Annual convention to be held in St. George on April 18th through the 21st. If you didn’t get one, you will be able to find it at www.uaiia.org. Click on the convention button.

It will be a great time to get away to St. George to enjoy golf, great food, entertainment, important industry updates, trade show, CE and networking with our company partners. We hope you’ll be there.

By the way, if you know someone who is deserving of receiving agent, young agent or company person of the year, I encourage you to make a recommendation. There is a form included with the paper newsletter or you can find one at: www.uaiia.org/_private/2010nominationform.pdf.

2. Proof of Insurance So what is the best way of providing proof of insurance coverage to a lender? We have a one page memo with a concise explanation for agents to use with their clients regarding Evidence of Property Insurance Form (ACORD 27) and Evidence of Commercial Property Insurance form (ACORD 28). To access this memo, go to www.uaiia.org/_private/proofofinsurance.pdf.

Should you have any questions about this memo, please contact bill.wilson@iiaba.net.

3. Job Opening – Resumes Wanted After 23 plus years with UAIIA, Steve Baugh will be stepping down as Executive Director due to health related issues. Resumes for this position will be accepted between now and April 10th. Salary will be commensurate with experience. In addition to a resume, we would like a letter stating why you would like the job and your salary requirements. A position description can be found at www.uaiia.org/_private/jobposition.pdf. Please send these items to stevebaugh@uaiia.org. A new Executive Director will be hired no later than September 1st, 2010 and quite possibly prior to that date.

4. Acting Commissioner Announced Neal T. Gooch was recently appointed as Acting Insurance Commissioner of the Utah Insurance Department. Governor Gary R. Herbert said that the appointment would extend “until the selection of a permanent Commissioner is made.”

Mr. Gooch has had extensive experience with the Insurance Department. Beginning in 1986 while serving in the Attorney General’s Office, he was made general counsel to the insurance department. He served in that capacity until August of 1997 when appointed by Commissioner Merwin U. Stewart as deputy commissioner then asked to continue in that capacity by Commissioner D. Kent Michie in 2005.

5. Allstate Agents To Be Terminated Thousands of existing Allstate agents are to be eliminated within the next two to three years as the company sheds those it thinks are not meeting specified production quotas, according to the National Association of Professional Allstate Agents.

Association Executive Director Jim Fish said many of these agents are “older agents – 50 to 60 years old – who might be servicing their book of business and maintaining high retention and loss ratios, but that isn’t enough for Allstate.”

“They (Allstate) are looking to add high-value, production-oriented new agents” to hit marks on new business and premiums the NAPPA says are established by Allstate. Fish said the “so-called” Allstate independent agents are anything but, constantly controlled by the company in “every aspect of the business” from hours of operation and holiday schedules, to personnel requirements.

6. Thanks to Utah InsurPac Contributors In 2009, UAIIA was the first state in the country to meet their goal for InsurPac contributions. InsurPac allows us to help national legislators raise money for their campaigns. This in turn gives us access to them for discussion of our issues. Some people don’t like how this works, but that’s how the game is played back there and we need to protect our interests.

Craig Wiseman is UAIIA’s 2010 InsurPac Chairman. If you would like to donate, you can reach him at (801) 377-3060.

The Independent Agents and Brokers of America, through InsurPac, has now become a million dollar political action committee. We thank the following members of our association for their contributions in 2009.

Platinum Club ($2,500)

C. Brett Nilsson

Gold Club ($500)

Douglas Ball

J. Curtis Breitweiser

Joseph E. Hansen

Pioneer Club ($250)

Kay L. Howland

Eric Kingdon

Kenneth Miller

Craig Timothy

James Welch

Craig Wiseman

Robert Wiseman

Founders Club ($150)

Steve Baugh

John Fogg

Roy Nikas

Tom Stanger

Allen Steadman

Greg Vause

General Contributor

Celeina Cullum

Howard Green

Cheryl Lyman

Richard Tatton

Michael Vowles

7. Helping Hands For Haiti Dr. Jeffrey Randle from Utah has provided housing for orphans in Haiti and a medical clinic. Currently the clinic and housing has been destroyed by the earthquake and the orphans have been sleeping in a field with no tents. You may have seen Dr. Randle on the local news after the quake. His practice is in Salt Lake City and he is planning to go to Haiti shortly.

If you would like to help with a donation, go to: www.helpinghandsforhaiti.com.

8. Scholarship Applications Available Do you have a child who is a senior in high school with a 3.0 grade point average? If so, they may be eligible for one of our 2010 college scholarships. Each year with the help of generous donations from individuals, companies and associations, we raise enough money to give away several scholarships. For further information, go to: www.uaiia.org/_private/scholarship.htm and check out how many recipients there were in 2009.

9.The Pain May Continue Some economists have declared the Great Recession over, but its lingering effects will continue to chip away at commercial property/casualty premiums through 2010 according to insurance experts.

A new Advisen Ltd. Briefing says that the damaged economy will keep rates from rising while at the same time sales, payroll and other measures of exposure used to calculate premiums may fall further. The cumulative effect will be another year of lower written premiums – a boon for insurance buyers – but a painful and potentially damaging situation for some insurers and agents.

10.Twitter Insurance? Bloggers may be wise to purchase insurance. A lawsuit was filed last year against Courtney Love by a designer who claimed to have been libeled by the rock singer on MySpace and Twitter. A number of similar lawsuits involving social networking sites have been filed, and those who share their disputes in cyberspace expose themselves to lawsuits and could face large legal bills. Bloggers may find it worth the expense to buy insurance to protect themselves against lawsuits involving claims of libel or defamation. The Media Law Resource Center reports that a court awarded an Ohio woman $129,794 in damages because a blogger said that her property was haunted, and another blogger was ordered to pay $1.8 million in damages for referring to a plaintiff as a failed lawyer.

11.Easy C.E. The 2008 Legislature passed a bill that gives members of a professional association 2 hours of continuing education credit yearly for their membership. You can receive this credit through UAIIA only by contacting our education coordinator Cheryl Lyman by email at cheryllyman@uaiia.org with your license number and what year/years you would like credit for.

This bill went into effect June 1, 2009. If you belong to more than one professional association, your Sircon account will probably show additional CE credits. It will be your responsibility to make sure that you have only included 2 hours of association credit per year in your total continuing education credits.

12.24/7 Customer Service Have you ever thought about outsourcing your agency customer service? InSite Support Services, Inc. can give your agency 24/7 customer service. For further information go to: www.insitesupport.com or call 803-405-7265 or toll free: 866-446-3555.

Insurers Would Owe Under Proposed U.S. Financial Tax (Wall Street Journal)

18 Jan 2010

A handful of large insurance companies, most of which turned down government bailout funds, would likely owe money under the proposed Financial Crisis Responsibility tax.

The proposed tax, unveiled Thursday by President Barack Obama, would amount to 0.15% of total assets minus high-quality capital, such as common stock, and disclosed and retained earnings. Insurance-policy reserves would be untaxed, being already subject to federal fees, according to the White House, but analysts and insurers note that some details are yet to be clarified. The fee must be approved by lawmakers.

Quite a few insurers qualify for the tax, according to analysts. According to a fact sheet from the Obama administration, the fee would cover large insurance and other companies that own insured depository institutions.

American International Group Inc., MetLife Inc., Prudential Financial Inc., Allstate Corp., Lincoln National Corp., Hartford Financial Services Group Inc., Ameriprise Financial Inc. and Principal Financial Group all are eligible for the tax, based on total adjusted assets, according to a Friday report by Credit Suisse.

A note from Citigroup on Friday included all those companies except Allstate.

AIG's main business is insurance, but it was the company's financial trading business that led to its multi-billion-dollar bailout. It would owe the most tax of the insurers, at an estimated $388.8 million based on a full year, according to the Credit Suisse estimate, and $367 million according to Citigroup.

Two other life insurers that took bailout funds would fall under the tax, according to analysts. Hartford Financial received $3.4 billion from the Treasury's Capital Purchase Program and would owe tax of about $28.2 million by Credit Suisse's estimate.

Lincoln National received $950 million from the program and would owe tax of about $29.4 million, according to Credit Suisse.

In an emailed statement, Hartford said it was evaluating the proposal but that it was too early to tell what effect it would have on the company. "This is an initial proposal that is likely to go through a number of modifications over the course of the next several months," the statement said.

Lincoln National didn't respond to a request for comment.

Prudential and MetLife, two insurers that declined funds from the Trouble Asset Relief Program, would owe significantly more, according to Credit Suisse and Citigroup. Prudential would owe about $85.2 million, and MetLife just over $81.5 million, Credit Suisse said; Citigroup pegged Prudential at $84 million, and MetLife at $97 million.

Prudential spokesman Bob DeFillippo said the company was working on understanding the proposal and didn't yet have a comment.

A MetLife spokesman agreed with the assessment that the company is included in the current proposal of companies that would owe the tax but said the company is still looking at the details of the proposed tax.

Allstate would owe $34.1 million, according to Credit Suisse. A spokesman said, "At this point, we don't have enough information to determine whether or to what extent a company like ours, which did not accept TARP funds and whose assets primarily are funds held on behalf of contract holders or insurance policy reserves, would be affected by this fee."

Ameriprise and Principal Financial didn't reply to requests for comment.

One consequence of the tax falling on the biggest insurers is that it would make them less competitive, said bank analyst Mike Moebs of Lake Bluff, Ill. "This will help smaller insurers," he said. "It will put them in good position to compete," particularly in specialized insurance markets.

The Passing of Jay Hadley

To: UAIIA Membership

From: Steve Baugh, Executive Director

I learned that Rodd Hadley recently passed away. I remember when Rodd was a marketing representative for Unigard. He had a good reputation in our industry and was an all around good guy. Below is his obituary. Our sympathies go out to his friends and family.

Steve

JAY HADLEY

Jay Rodney Hadley 1932 ~ 2010 A "Good Man" A "Good Man," Jay Rodney Hadley, loving husband, father and grandfather, died suddenly Saturday, Jan. 2, 2010 of heart failure. Born, October 26, 1932 in Ogden, Utah to John Hipwell Hadley and Laura Thurston Hadley, the youngest of 11 children. Rodd graduated from Ogden High School, Weber College, and Brigham Young University. He married Carol Barker October 30, 1953in the Salt Lake Temple, and shortly after left for an LDS mission to Uruguay for two and a half years. He was active in the LDS Church and held positions in several bishoprics, and was a "beloved" Sunday School teacher for many years. Rodd worked for Northwestern Mutual Insurance in San Francisco, California and Unigard Insurance Group in Salt Lake City where he retired after 30 years. While there, he achieved many awards, including the "National Marketing Representative of the Year" and was honored at the national convention in Atlanta Georgia. Upon retirement, Rodd worked for the next 20 years in the travel industry, most recently at Hess Travel of Bountiful, Utah where he thoroughly enjoyed the job and all of the employees he was associated with. Rodd had a lifetime love of sports. Playing for many fast pitch softball teams in Boise, Idaho where our family lived for four years, and then later in the Salt Lake Valley where his teams won many championships, including the "All Church Fast Pitch Softball Tournament." He coached both sons in Pony League Baseball, and was an avid BYU fan for 50 years, as well as New York Yankees fan since childhood. His love of sports extended to his granddaughter and grandsons where he faithfully attended all of their sporting events with such pride. His happiest days in life were spending time with his family and especially his four grandchildren who lovingly called him "Pop." He was preceded in death by his infant son, David, and survived by his wife of 56 years, Carol, his children and grandchildren: Richard Ririe Hadley and wife Ellen Eads and their children - Kate, Jacob and Cody; Nancy; Jon Thurston Hadley and wife Mary Taylor and son, McKay. Private family graveside services will be held at 2:00 p.m. in the Bountiful City Cemetery. The services will be handled by Russon Mortuary of Bountiful with Bishop Meik Rapp of the Bountiful 23rd Ward officiating. In lieu of flowers, please send donations for Sudden Infant Death Syndrome to Primary Children's Foundation, C/O SIDS, P.O. Box 58249, Salt Lake City, Utah 84158 Things grandson McKay (age 4) will miss most: "sleeping over at Pop's, pampakes and chocolate milk." "Dear Pop I love you, and I am so glad I will be able to see you again. Thank you for making me laugh, I have so many memories. I am so privileged that I had you, and still have you in my life." by granddaughter "Katie" (age 14 1/2 ). "Grandpa was always up and going, and he was always happy" - written by grandson Jacob (age 11 1/2 ). "Pop was a good man and a good grandfather. On January 8th I am going to have a basketball game and he will be there - I know it because he's a part of our Forever Family. Pop and Gram always come to my games" - written by grandson Cody (almost 9).

The Passing of Charles Eubank

To: UAIIA Membership

From: Steve Baugh

It's with sadness that I report the passing of Charles Eubank, a Past President (1954 - 55) of our state association on November 24, 2009. Mr. Eubank stayed in touch with our industry through Blue Goose and by attending our Past President's events over the years. Most recently, he had attended our Convention Banquet this past June at the Zermatt Resort.

A memorial of his life will be held at 2:00 p.m. on Sunday, December 20th, 2009 at 650 East South Temple, at the Salt Lake Masonic Temple.

Please see his obituary below.


CHARLES EUBANK Sr.

Charles Stuart Eubank, Sr. In the Arms of the Angels Dad, Granddad, Chuck, Charlie, Sr., Old Fart or the Big Guy - by whatever name you knew and called him, Charles Stuart Eubank, Sr., will be deeply missed and fondly remembered by all whose lives he touched. He found his peace on Tuesday, November 24, 2009. Husband to the late Betty Willingham Eubank; Father to Chuck, Sara, Carlyle and the late Wallace; son to Mildred Barton Eubank and Carlyle C. Eubank; Grandfather to 12 "not a bad egg in the bunch" grandchildren who gave him seven great-grandchildren as well as a friend to many; Chuck lived life fully and with great gusto and spirit. Chuck was born in Ogden, Utah on February 11, 1924 and graduated from Ogden High School. He was a member of the United States Navy from 1943 to 1946 where he served as "Photographer's Mate" and had the honor of photographing some of his country's top commanders in chief while stationed in Washington D.C. Chuck married his sweetheart, Betsy, in Washington D.C. in 1946 where they made their first home, while he finished his degree at American University. Chuck and Betsy moved to Ogden, Utah in the late 40's where he began his career at Eubank Insurance which was founded by his father Carlyle. He worked in the insurance and construction bonding business from 1949 to 1992; was President and CEO of Eubank Insurance & Bonds, serving clients throughout the Intermountain West. Chuck's integrity was well known throughout the Utah business community, the Intermountain West and California. Chuck received numerous awards for his achievements in the insurance industry - and was known for his "purple felt-tip pen". Chuck was very active in community building and gave generously of his time and talents. The following are but a handful of the Boards of Directors on which he served: The Ogden School for the Deaf and Blind, the Bertha Eccles Art Center, and The Utah Women's' Clinic, and The Martha Home for Children. He was an active member of the George East Duck Club as well as the Exchange Club of Ogden, serving as President for a year. Chuck was involved in the Ogden Judo Dojo, the Boys Scouts of America and the PTA. He was an avid supporter of the Golden Spike Livestock Show which was co-founded by his grandfather, Charles H. Barton and very supportive of the activities of the Junior League of Ogden which included many years building and maintaining the enchanting Christmas Village that delighted youngsters and oldsters alike. Chuck also supported the Diplomatic Reception Rooms at U. S. Department of State where one of his sons serves as Chairman of the Fine Arts Committee. Chuck gathered friends wherever he went, all of whom he held very dear. His companion for the last fifteen years is Betty Jo Stevens of Salt Lake City, Utah. BJ has been a constant friend, companion, gardening partner and confidant. There are other people, too numerous to name, who helped Chuck during the last ten years of his life. To all of you, the family says "Thank You and we appreciate you". At his passing, Chuck was a member of "Blue Goose" a group of insurance professionals, Wasatch Lodge #1, Free and Accepted Masons of Utah and Scottish Rite of Utah and was a member of The Living Tao Tai Ji Family. The family wishes to extend our thanks for the loving and compassionate care that Chuck received at The Residence of Care Source Hospice during the final few weeks of life. Chuck is survived by Charles S. Eubank, Jr. (Gwen) and their children Mary Guerrero (Tin) and their children Izabella, Pixie and Aleko, Lee (Meggan) and Charlie (Megan); Sara Eubank Moffitt (Dave) and their children Michel Spruance (Peter), Megan Betty Williams (Gabe), and Elisha Moffitt; Carlyle C. Eubank, II (Patricia) and their children Rosanna Dude (Vince) and their children Luke, Kai and Molly; William, Carlyle and Winchester; and the children of the late Wallace W. Eubank, Katie Fehr and her son Trace, Jennifer Decker (James) and Melissa (Mike). Chuck enjoyed a fruitful life and is his words "the baggage of the past has been discarded and the future holds only rainbows, flower gardens and loving kindness. God is Love and loving kindness can and will sustain the world". A memorial of the life of this well loved man will be held at 2:00 p.m. on Sunday December 20th, 2009 at 650 East South Temple, at The Salt Lake Masonic Temple. A celebration will follow at a time and place to be announced at the memorial service. Please join us to share your memories and celebrate life the way he lived his. In lieu of flowers, donations may be made to The Humane Society of Utah, Best Friends Animal Sanctuary in Kanab, Utah or The Salt Lake City Shriners Hospital for Children Transportation Fund. Online condolences at www.jenkins-soffe.com

UAIIA Newsletter - November 2009

Below is an electronic copy of our state association newsletter.

For a flyer on the benefits of membership, please click on the following link: www.uaiia.org/benefits.pdf

Thanks to our 2009 Associate Members: Acuity, Advanced Restoration, LLC, Allied Insurance, American Mining Insurance Co., Austin Mutual Insurance Co., Auto-Owners Insurance Co., Bear River Mutual Insurance Co., BELFOR Property Restoration, Burns & Wilcox, LTD, Capital Premium Financing, Inc., Chubb, CNA Insurance, CSE (Civil Service Employees) Insurance Co., Colonial General Insurance Co., Colorado Casualty, Continental Western Group, Cresta Insurance, LLC, Dairyland Auto, EMC Insurance Companies, Encompass/Allstate, Employers, Germantown Mutual Insurance Co., HCC Surety Group, Kemper, Legacy Insurance Services, Inc., Magna Carta Companies, MetLife Auto & Home, Mountain States Insurance Group, MULTICO Rating Systems, Inc., Mutual of Enumclaw, National American Insurance Company, Networked Insurance Agents, Pennsylvania Lumbermens Mutual Insurance Co., Philadelphia Insurance, Premium Financing Specialists, Professional Lines Underwriting Specialists, Inc., Progressive Insurance, Risk Placement Services, Safeco Insurance Co., Sagamore Insurance Company, Santa Fe Auto Insurance Co., Seacoast Brokers, LLC, Servpro of Holladay/Cottonwood, Servpro of Provo, Servpro of St. George, Service Master by Restoration Xperts, State Auto Insurance, Statewide Insurance Corp., Surplus Lines Association of Utah, Swett & Crawford, Total Restoration, Inc., Transwestern General Agency, Travelers, UCA General Insurance, United Automobile Insurance Co., Utah Business Insurance Company, Utah Disaster Kleenup, Victoria Insurance, Western National Insurance Group and Workers Compensation Fund



Utah is a Happy Place

Twittering While Driving

Mexican Insurance Online

Elephant Insurance

Gator Bites Arm off of Golfer

Laptop Protective Services

Mickey Braun to Retire

Flyer with this Newsletter

Top Ten States in Financial Trouble

Utah Official Pleads to Insurance Fraud

Utah Commissioner Warns of Scam



Utah is a Happy Place: Did you know that Utah is the happiest place to live in the country? According to researcher, Jason Rentfrow, of the University of Cambridge in England, Utah came out on top when 350,000 individuals were interviewed as part of the Gallup Organization’s Well-Being Index. The index includes six types of well-being; overall evaluation of their lives, emotional health, physical health, healthy behaviors (such as whether a person smokes or exercises), and job satisfaction.

Following Utah, the next nine states in order are: Hawaii, Wyoming, Colorado, Minnesota, Maryland, Washington, Massachusetts, California and Arizona.



Twittering While Driving At least 22 states that ban texting while driving offer some type of service that allows motorists to get information about traffic tie-ups, road conditions or emergencies via Twitter. The online service might only add to distracted driving, which is what the measures intend to curb. Transportation officials defended their Twitter-enabled program, saying drivers are supposed to check the updates before they drive and not while behind the wheel.



Mexican Insurance Online The most exciting time for Mexico Auto Insurance sales is here. The snowbirds have begun traveling south for the winter and millions of Latin Americans will return to Mexico for the holidays. Don’t miss out on this opportunity to increase your agency revenues over the next few months by going to our website at www.uaiia.org and clicking on the Mexico Insurance link.



Elephant Insurance A new direct auto insurer began business last month. They are a UK based company that has been in business for 17 years with over 2 million policyholders. They have recently opened their U.S. headquarters in Virginia.

Just when we are up to our eyeballs with a Gecko, we get an elephant. They are even using GEICO lines: “We do not use brokers or agents to sell our insurance. When you deal with an insurance agent, you often pay more because the agent is working as a middleman…”

Bob Rusbuldt, IIABA’s President and CEO, thinks the personal lines race will come down to independent agents and direct writers. “The captive agents will eventually be the odd man out. Having a consumer brand, Trusted Choice, is essential to differentiate us and the value we bring to consumers.” To check out the new competition, go to: www.elephant.com.



Gator Bites Arm off of Golfer Officials say an alligator bit off part of a golfer’s arm as he leaned over to pick up his ball at a private South Carolina course. The man, who is in his 70s, was retrieving his ball from a pond when the 10-foot alligator bit him at Ocean Creek Golf Course. The gator pulled the golfer into the pond and ripped off his arm in the struggle. His golf partners were able to free him.

Wildlife workers killed the alligator and retrieved the arm in the hopes it might be reattached. (AP story from the Deseret News)



Laptop Protective Services If you or one of your employees lost a laptop, would you understand your legal exposure? Utah is one of 45 states that have security breach legislation in place. See the law at: http://www.le.utah.gov/UtahCode/getCodeSection?code=13-44-201

To help address this problem, PIA has partnered with MobileSecure to provide insurance agents with a program called Laptop Protective Services. This solution helps agencies take a proactive stand in managing their data security risk by understanding their exposure from lost laptops.

Laptop Protective Services provides a highly secure and easy-to-use fully managed service for agencies to: monitor laptops in your organization; remotely identify files on your laptops to understand your potential data exposure risk; remotely lock down your laptops; and use laptop location history and file audit reports as compliance and audit tools.

The price for our PIA members is $60 per year per laptop and for non-PIA members, $80 per year per laptop. For further information go to: www.pianet.com/LaptopProtectiveServices



Mickey Braun to Retire Mickey Braun has been with the Utah Insurance Department for nearly 23 years, but some of us old timers remember that he was once an independent agent and a member of our association. In fact, he served as a convention chairman for us back in the 80’s.

Mickey will be retiring on December 10th and the department will be having a retirement party for him that day at the State Office Building Auditorium from 3:30 to 5:30 p.m. If you would like to wish him well, we are sure he would appreciate it.



Flyer with this Newsletter Watch for the flyer from the Hanover Insurance Group that is included in the paper version of this newsletter.



Top Ten States in Financial Trouble There are several states that are in financial trouble. In fact, there are only two states in the country that are not dealing with budget deficits: Montana and North Dakota. According to the Pew Center on the States, 10 states face severe economic pressures. California, which has been teetering on insolvency for months, is joined by Arizona, Rhode Island, Michigan, Oregon, Nevada, Florida, New Jersey, Illinois and Wisconsin. Pew came up with the list of 10 states by studying six factors: high foreclosure rates, increasing joblessness, loss of state revenue, the relative size of budget gaps, legal obstacles to balanced budgets and poor money management practices. On the heels of the 10 worst states are Colorado, Georgia, Kentucky, New York and Hawaii.

Where does Utah fit in? We are tied for 7th place with Pennsylvania as the best states, but Utah received the best overall money rating (grade A) compared to all the states.

Observation: Isn’t it interesting that 5 of the top 10 happiest places to live (see our Happiest Place to live article in this newsletter) happen to be one of the top 15 states that are in financial trouble. We can’t explain the other 4, but California probably qualifies because of all the medical marijuana dispensaries located within the state.



Utah Official Pleads to Insurance Fraud The former commissioner of the Utah Department of Public Safety recently entered a conditional guilty plea to two third-degree felony charges of falsely obtaining a prescription and to a misdemeanor count of filing a fraudulent insurance claim.

Scott Duncan resigned from his post in January, citing unspecified health issues. Recently the 57-year-old entered a plea in abeyance, meaning that if he meets certain conditions within 36 months, the charges will be dismissed.

Duncan came to authorities and said he had a drug problem, Assistant Utah Attorney General Shelley Coudreaut told the Deseret News in Salt Lake City. He had apparently gone to multiple doctors in Utah County to get prescriptions for hydrocodone.



Utah Commissioner Warns of Scam Utah officials are warning the public of an international mail fraud scheme involving a bogus letter said to be from Nationwide Insurance. The scam has spread to 10 states, according to the Utah Department of Insurance.

Residents in 10 states have received counterfeit checks bearing the nationwide name. Each check has been issued in the amount of $4,500 and has been accompanied by a letter which informs the recipient that they are the winner of a $150,000 “Consumer Promotion Draw” organized for consumers who shop in major stores in the US, Canada and United Kingdom.

The letter goes on to explain the $4,500 check has been issued to cover the “Non-Resident Government Tax” the consumer will have to pay to a British Tax Officer, according to the department warning.

In order to receive the $150,000 prize, recipients are told they must cash the check and then forward $3,750, by Moneygram International or via a Western Union Money Transfer, to an address located in the United Kingdom. While residents are provided with a 1-866 number to call, they are urged to keep the matter confidential until their claim has been processed.

The individuals generating the correspondence and counterfeit checks have no affiliation with Nationwide Insurance and are fraudulently using the Nationwide name.

Telden Wiseman Takes the Lead for Utah Young Agents

During the October 2009 Mid-Year Meeting hosted by Utah Young Agents, Telden Wiseman take on the role as Chair for Utah's Young Agent group. Telden is part of the Wiseman Insurance Agency in Utah County and is thrilled to serve UAIIA in this capacity. Way to go Telden! Thank you to our past Chair, Jon Jepsen, who has been diligent and faithful in his lengthy service.

UAIIA Mid-Year Meeting - 2009

WHAT ARE YOU WILLING TO DO TO REDUCE YOUR RISK?

UAIIA E&O LOSS PREVENTION SEMINAR

SPONSORED BY THE YOUNG AGENTS AND UTICA



Wednesday, October 28th, 2009 - 8:00 am – 3:00 pm

6 Hours of CE – Approved for Ethics

A buffet lunch will be served

REGISTRATION FORM AT http://www.uaiia.org/_private/midyear.pdf

UAIIA Newsletter - July 2009

Below is an electronic copy of our state association newsletter.

For a flyer on the benefits of membership, please click on the following link: www.uaiia.org/benefits.pdf

Thanks to our 2009 Associate Members: Acuity, Advanced Restoration, LLC, Allied Insurance, American Mining Insurance Co., Austin Mutual Insurance Co., Auto-Owners Insurance Co., Bear River Mutual Insurance Co., BELFOR Property Restoration, Burns & Wilcox, LTD, Capital Premium Financing, Inc., Chubb, CNA Insurance, CSE (Civil Service Employees) Insurance Co., Colonial General Insurance Co., Colorado Casualty, Continental Western Group, Cresta Insurance, LLC, Dairyland Auto, EMC Insurance Companies, Encompass/Allstate, Employers, Germantown Mutual Insurance Co., HCC Surety Group, Kemper, Legacy Insurance Services, Inc., Magna Carta Companies, MetLife Auto & Home, Mountain States Insurance Group, MULTICO Rating Systems, Inc., Mutual of Enumclaw, National American Insurance Company, Networked Insurance Agents, Pennsylvania Lumbermens Mutual Insurance Co., Philadelphia Insurance, Premium Financing Specialists, Professional Lines Underwriting Specialists, Inc., Progressive Insurance, Risk Placement Services, Safeco Insurance Co., Sagamore Insurance Company, Santa Fe Auto Insurance Co., Servpro of Holladay/Cottonwood, Servpro of St. George, Service Master by Restoration Xperts, State Auto Insurance, Statewide Insurance Corp., Surplus Lines Association of Utah, Swett & Crawford, Total Restoration, Inc., Transwestern General Agency, Travelers, UCA General Insurance, United Automobile Insurance Company, Utah Business Insurance Company, Utah Disaster Kleenup, Victoria Insurance, Western National Insurance Group and Workers Compensation Fund



Eric Kingdon Installed as President

2010 UAIIA Annual Convention

One Man, 36 Auto Crashes?

UAIIA Joined Fly-In

Scam Alert

Michael Jackson’s Insurance

Office Space for Rent

Inserts with Newsletter

Windows XP Problems

Agents View Carriers

Allstate Expands in Utah

Utah Homeowners Insurance Receives “A” Grade







Eric Kingdon Installed as President

Eric Kingdon was recently sworn in as President of our state association at our annual convention at the Zermatt Resort in Midway, Utah by our very own Brett Nilsson, Chairman of IIABA. Eric is a 3rd generation insurance agent and has been in the industry since 1995 as a producer for Trustco, Inc. He is a CIC, past president of the Salt Lake Chapter, past Young Agent Chair, a current member of our Scholarship Committee and our Young Agent of the Year in 2006.

He and his wife, Melanie, have twin ten year old boys and a three year old son that bullies everyone in the house. They reside in Herriman, Utah.

Also sworn in were Greg Vause of Blackburn Jones Company as President-Elect and Joseph Hansen of Joseph E. Hansen Insurance Agency, Inc. as Treasurer.

J. Curtis Breitweiser of Breitweiser Insurance Services received the Agent of the Year Award, Sonja DeVore of Acuity was given the Company Person of the Year Award and Joseph Hansen of Joseph E. Hansen Insurance Agency, Inc. received the Young Agent of the Year Award.



2010 UAIIA Annual Convention Mark your calendars. Next year’s UAIIA Convention will be held in St. George at the Hilton Garden Inn from April 18th through April 21st. As we have in the Wasatch Front area, we will be holding a Free Day Friday (Tuesday in 2010). We’ve already been talking to a speaker who will fascinate you with his abilities.



One Man & 36 Auto Crashes? North Carolina officials have charged an Indiana man with allegedly filing more than $10,000 in false claims related to 11 auto crashes between December 2005 and June 2008. According to the Department of Transportation, Jones was involved in a total of 36 crashes in a 7 year period between 2001 and 2007.



UAIIA Joined Fly-In Six members of our state association flew into Washington D.C. for a joint fly-in with three other national associations to discuss Health Care Reform with Congress. Both the House and Senate are poised to consider health care reform legislation in late July. This event is a tremendous opportunity for the health insurance producer community to send a loud message to Congress about preserving the private delivery of health insurance and to voice opposition to the creation of a public plan that would compete against private insurance companies in the health insurance marketplace.

Participants will lobby their representatives in Congress about the important role professional health insurance advisors, agents, brokers, consultants and employee benefit specialists play in providing health care to millions of Americans. There will be about 1100 participants from the four associations attending.



Scam Alert Utah Insurance Commissioner D. Kent Michie recently warned Utah’s licensed insurance producers to beware of a scam that has surfaced in Nevada and California targeting insurance agents and brokers. According to Scott Kipper, Nevada Insurance Commissioner, individuals representing themselves as employees of the Nevada Insurance Department have been calling insurance agencies requesting payment of penalty fees. At the same time they are requesting credit card and social security information so that payment can be made to avoid the cancellation of their insurance license.

So far the Utah Insurance Department is unaware of any such calls being made in Utah. It should be noted that at no time will the department request payment of a penalty fee by phone. It is always done by mail and will include a billing with the details of the penalty.



Michael Jackson’s Insurance Concert promoter AEG Live reported that insurance will help cover losses on the now-canceled Michael Jackson concert series if the pop star died accidentally – including of a drug overdose – but not if he died of natural causes. The company took out $18 million in insurance coverage through Lloyd’s of London which will fall short of the $25 - $30 million Phillips said AEG Live spent on Jackson’s tour. Interestingly, 40% - 50% of concert ticket-buyers have so far decided to receive tickets as memorabilia in lieu of a refund, which will help make up the insurance shortfall.



Office Space for Rent Office space available at 6713 South 1300 East. Great Fort Union location on I- 215 Belt Route. 1920 sq. ft. all utilities included except phone at $2200.00 a month. Unit has three offices with reception area and bathroom on main floor and four offices with bathroom on second floor. Make one a conference room. Willing to negotiate. Contact Sylvia Bruno at The Surplus Line Association of Utah at (801) 944-0114 or email at sbruno@slaut.org.



Inserts with Newsletter Watch for the inserts for Big “I” Markets and CIC with our printed version of the newsletter.



Windows XP Problems Microsoft recently sent out a warning of serious security vulnerability for Internet Explorer users that are running Windows XP or Windows Server 2003. Below is a link to a Microsoft website that allows you to install a workaround until a permanent solution to the problem is found. Please check with your internal IT department to see if this has already been addressed or for recommendations on whether or not to proceed with the installation of this workaround. The workaround can have some implications on your ability to view video, but there is the ability to disable the workaround should it become necessary.

The link is: http://support.microsoft.com/kb/972890 (Received this alert from IIABA’s IT Department)



Agents View Carriers A new survey, “How Independent Agents View Carriers: The Super-Regional,” polled 1,100 agents in all 50 states about their relationships with the carriers. It found: Nearly two out of three agents called claims service a “critical” factor. Insurers’ financial strength ratings ranked second most-important at nearly 50% - a significant jump from the number five spot in the previous survey. Competitive pricing was third. Nearly half of the top 10 involved some aspect of underwriting – from flexibility and availability to expertise and clarity. Compensation ranked nineteenth out of the 24 issues covered by the survey.



Allstate Expands in Utah Independent agents in the west may soon see more competition. Allstate Insurance Company announced it is expanding its presence in the west by opening 10 offices in Nevada, 10 in New Mexico, 20 in Arizona and 15 in Utah. Allstate said its agency expansion plan is part of an overall growth strategy that calls for growing the provider’s auto and property insurance presence and staking a stronger claim in financial services.



Utah Homeowners Insurance Receives “A” Grade Consumers in four U.S. states enjoy more attractive homeowners insurance at better prices than citizens in other states, according to a new report card jointly released by the Heartland Institute and Competitive Enterprise Institute.

Homeowners in Arizona, Idaho, Utah, and Vermont are charged lower premiums for broader and more predictable coverage, earning “A” grades on the Heartland/CEI report card. These states provide the best regulatory environment for insurance consumers and providers.

Consumers in Florida, Hawaii, Louisiana, Maryland, Massachusetts, and New York – states that earned “F” grades – pay more for homeowners’ coverage that is inferior to what’s available in states with positive insurance climates. The regulatory climates in those states are hostile to insurers and consumers alike.

“On balance,” writes Eli Lehrer, the report’s author, “states with less-regulated insurance markets provide more consumer choice, more predictable rates, and insurance premiums that better reflect actual risk than do states with heavily regulated markets.”

The 2009 Property & Casualty Insurance Report Card is available online at: http://www.heartland.org/policybot/results/25091.

Congratulations Joseph Hansen

Pictured above from left to right:

Joseph Hansen - Young Agent of the Year

Eric Kingdon - Newly installed UAIIA President (and current Young Agent)

Curtis Breitweiser - Agent of the Year

Congratulations are in order for the Young Agent of the Year Joseph Hansen. Joe's dedication and committment to the Big I make him a very deserving recipient if the award. In addition, Joe was also installed as UAIIA Treasurer.

We are proud to have one of our very own Young Agents serving as the UAIIA President this year - way to go Eric Kingdon. Make us proud!

We would also like to extend a big congrats to our UAIIA State National Director Curtis Breitwieser who received the Agent of the Year Award. Something tells me he's not a Young Agent anymore - let's all hope we can age as gracefully.

2009 young Agents Leadership Institute Events Set

Join fellow Young Agents at the 2009 Young Agents Leadership Institute being held September 11-13 at Hilton New Orleans Riverside in New Orleans. This exciting event features:

Friday, Sept. 11:

- ACT special joint event – “Best Practices Workflows to Enhance Agency Productivity & Sales”- Big “I” leadership community project- Young Agents awards reception with Big “I” leadership- Young Agents welcome reception

Saturday, Sept. 12:

- Young Agents breakfast and motivational keynotes speaker- Young Agents speed session- Big “I” installation of officers luncheon- Independent Insurance Agents & Brokers of Louisiana dessert reception in honor of David Daniel- The Magnificent Seven- Young Agents New Orleans dinner cruise

Sunday, Sept. 13:

- Young Agents staff liaison and state committee chairs roundtable discussion

The feature segment of this event is the Magnificent Seven, an interactive panel featuring the 2009 Young Agents Committee award winners. Attendees will learn from Young Agents who will offer insight into how they achieved award-winning results.

Don’t let this opportunity pass you by – visit www.independentagent.com/events for more details. For more information, contact Katie Cosgrove at 800-221-7917; katie.cosgrove@iiaba.net.

Don't Forget Free Day Friday This Week

Utah Association of Independent Insurance Agents
90th Annual Convention
June 11th – 13th, 2009
Zermatt Spa & Resort – Midway, Utah













Agenda


Thursday, June 11th –

11:00 am – 12:30 pm UAIIA Board Meeting
12:30 pm – 2:00 pm Lunch at Soldier Hollow Golf Course
Golf Registration
2:00 pm – 7:00 pm Golf – Shot Gun Start
5:00 pm – 7:30 pm Convention Check-In at Zermatt Spa & Resort
7:30 pm – 9:00 pm Dinner & Entertainment Matterhorn Ballroom
Entertainment Provided by Comedian Ryan Hamilton
9:30 pm – 12:00 am Hospitality Suite Sponsored by Young Agents & Travelers

Friday, June 12th –

7:30 am – 9:00 am Convention Check-In
8:30 am – 10:30 am Booth Set Up at Bernese Center – Zermatt Resort
9:00 am – 12:00 pm FREE CE Ethics sponsored by BELFOR in the Grindelwald Room
9:30 am – 12:30 pm FREE CE Staged Automobile Accidents sponsored by North American
in the Interlaken Room
11:00 am – 4:30 pm FREE Trade Show
12:00 pm – 1:30 pm FREE Lunch Buffet at Bernese Center – Zermatt Resort
4:30 pm – 5:00 pm FREE Trade Show Drawings
6:30 pm – 7:30 pm Past Presidents Reception in Matterhorn Ballroom
7:30 pm -9:30 pm Banquet, Robert Rusbuldt President and CEO of the Big “I”, Awards Ceremony


Saturday, June 13th –

7:30 am – 8:00 am Young Agents Meeting Monte Rosa
8:00 am – 8:30 am Agents Meeting with C. Brett Nilsson, Chairman IIABA
8:30 am – 9:30 am Breakfast Buffet Matterhorn Ballroom
9:15 am – 9:30 am Early Bird, Scholarship, Grand Prize Drawings
9:30 am – 10:00 am Purple Duck Award
10:00 am -11:00 am Key Note Speaker – Eric Alexander
Convention Concludes

Do You Twitter?

(IIABA's Virtual University VUpoint Newsletter Vol. 10, No. 12 - Issue #233 - Friday, June 5, 2009 )

The Virtual University is Now Tweeting http://twitter.com/BigIVU

I told someone recently that Jeff Yates, executive director of the Agents Council for Technology (ACT), has been trying to drag me kicking and screaming into the 21st century of online social media like Twitter, LinkedIn, Facebook, et al. So, I've bit the bullet and set up a Twitter account for the VU:

http://twitter.com/BigIVU

If you Twitter, be sure to visit this page and become a BigIVU "follower." If you don't have a Twitter account, you can set one up and subscribe. If you're not sure what to do, neither was I and I'm still learning.

I promise that you won't find any "tweets" like "Had a great philly cheesesteak sandwich for lunch, 32 minutes ago" or "Saw Star Trek, great flick, popcorn stale, 2 days ago." What I plan on using this service for is important and/or time-sensitive announcements about the VU and other resources. I don't plan on twittering every new article added to the VU, but I'll try to flag significant additions and keep you posted on breaking news and upcoming events of interest.

As I mentioned, I'm learning how to most effectively use what could be a very valuable information tool, so your comments are welcome as this service progresses.

P.S. One of the big announcements made by Conan O'Brien as new host of the Tonight Show was that YouTube, Twitter, and Facebook were merging. The new web site is www.YouTwitFace.com.

UAIIA Newsletter

Thanks to our 2009 Associate Members: Acuity, Advanced Restoration, LLC, Allied Insurance, American Mining Insurance Co., Austin Mutual Insurance Co., Auto-Owners Insurance Co., Bear River Mutual Insurance Co., BELFOR, Burns & Wilcox, LTD, Capital Premium Financing, Inc., CNA Insurance, CSE (Civil Service Employees) Insurance Co., Colonial General Insurance Co., Colorado Casualty, Continental Western Group, Cresta Insurance, LLC, Dairyland Auto, EMC Insurance Companies, Encompass/Allstate, Employers, Germantown Mutual Insurance Co., HCC Surety Group, Kemper, Legacy Insurance Services, Inc., Magna Carta Companies, MetLife Auto & Home, Mountain States Insurance Group, MULTICO Rating Systems, Inc., Mutual of Enumclaw, National American Insurance Company, Networked Insurance Agents, Pennsylvania Lumbermens Mutual Insurance Co., Philadelphia Insurance, Premium Financing Specialists, Professional Lines Underwriting Specialists, Inc., Progressive Insurance, Risk Placement Services, Safeco Insurance Co., Sagamore Insurance Company, Santa Fe Auto Insurance Co., Servpro of Holladay/Cottonwood, Service Master by Restoration Xperts, State Auto Insurance, Statewide Insurance Corp., Surplus Lines Association of Utah, Swett & Crawford, Total Restoration, Inc., Transwestern General Agency, Travelers, UCA General Insurance, Utah Business Insurance Company, Utah Disaster Kleenup, Victoria Insurance, Western National Insurance Group and Workers Compensation Fund

1. See You At The Top
2. Avoid Pitfalls in E&S Business
3. Did You Know….
4. Twitter Mania
5. Prison Laundry is a Hit!
6. Be Afraid, Be Very Afraid
7. Triathlete Outrun by Fraud Unit
8. New Utah Insurance Department Rule
9. Insurance Management Consultants
10. Want To Be Listed in New Directory?
11. Newsletter Inserts
12. Credit Scoring Hearing
13. Fire Safe Cigarettes
14. Contractors & Builders Conference

1. See You At The Top The top two leaders of the Independent Insurance Agents and Brokers of America (IIABA) will be at UAIIA’s Annual Convention June 11 – 13 at the Zermatt Resort in Midway, Utah. They are coming just in the nick of time with congress poised to take on President Obama’s Universal Health Care Program. Brett Nilsson, Chairman, and Bob Rusbuldt, President and CEO of IIABA, will present us with the latest information on this issue from a national perspective. Couple this with golf, a trade show, awards banquet, keynote speaker, entertainment and great food at a fantastic resort. You won’t want to miss it!

For further information, go to: www.uaiia.org/_private/zermattconvention.htm or call the association office at: 801-269-1200.

2. Avoid Pitfalls in E&S Business Swiss Re Academy and the Big “I” Professional Liability Program presents a FREE risk management webinar for all agency staff about the E&O issues of placing insurance in the Excess and Surplus Lines market and working with E&S brokers. It will be held on Friday, May 15th from 2:00 to 3:00 Eastern Time. For further information, contact Pam.Andrews@iiaba.net (800-221-7917).

3. Did You Know….that the number of U.S. bank failures in 2009 has already matched the total number that failed throughout all of 2008? Last year, officials seized 25 U.S. banks, up sharply from only three in 2007.

4. Twitter Mania Okay, I admit it. I am a Twitter junkie. For those who don’t know, twitter is a social networking phenomenon, which allows for communications called “tweets” in 140 characters or less. Short and sweet! You can follow someone by book marking their twitter site on your browser, by text messages on your cell phone or better yet, log onto www.twitter.com, start your own site, follow several twitterers and send out your own tweets.

I have two twitter sites. One at: www.twitter.com/UAIIA which I use for insurance news, views and commentary, a good way for you to keep up with our association daily. My personal site at: www.twitter.com/stevebaugh pretty much covers my warped view of the world. You are welcome to visit each site, but caution: If you follow me, I just might follow you back.

5. Prison Laundry is a Hit! Our seminar on certificates of insurance or (How I got my job in the prison laundry) is a hit. It has been approved for 3 hours of C.E. credit and we sold out our first class on May 21st in two days. We’ve since added two more classes on May 27th and June 18th, but both of them are filling fast. Check with cheryllyman@uaiia.org for availability. You can download further information and a registration form at: www.uaiia.org/_private/calendar.html.

6. Be Afraid, Be Very Afraid During our visit to Washington D.C., our agents heard loud and clear that our industry is in the crosshairs of potential government interference like never before, most notably with regards to the sale and delivery of health insurance.

The Obama Administration is actively working with Congress and interested parties to craft a major health care reform proposal. While still being developed this proposal could potentially eliminate or severely curtail the agent/broker role in health insurance sales. The entire debate is on a fast track with draft legislation expected to be circulated in late May.

To put in perspective the danger we face, consider these recent comments by Nancy-Ann Deparle, Counselor to the President and Director of the White House Office of Health Reform: “A public plan is something that’s sponsored by the government, and therefore has very low or almost nonexistent administrative costs, compared to others. It doesn’t have the need to have brokers out selling; it wouldn’t have the need to have a lot of costs and profits, the way private plans would. So it has that advantage.”

News flash: U.S. Health and Human Services Secretary, Kathleen Sebelius, just said “Dismantling the private market….is not something the president supports.”

To counter the efforts that threaten our livelihood, IIABA has assembled a Health Care Reform Kit to educate you on the issue and help you advocate in your community. This will be sent to you under separate cover by our state association.

7. Triathlete Outrun by Fraud Unit A Virginia man claimed he was wheelchair-bound after a car crash aggravated an earlier injury. He made a $1.2 million claim against Amica Insurance, and received rehab and other services from state-funded programs. All the while, he was a competitive triathlete and was taking women on long mountain hikes. The man faced up to 20 years in prison on fraud charges, but was ordered to serve only one year. He also must repay the state over $26,000.

8. New Utah Insurance Dept. Rule There is a new rule being proposed by the Utah Insurance Department. It is R590-244, Individual and Agency Licensing Requirements. The comment period ends June 15, 2009 and your written comments are encouraged. Please direct them to Jilene Whitby by email: jwhitby@utah.gov, by fax: 801-538-3829, or by mail: State Office Building, Room 3110, Salt Lake City, UT 84114-6901. A hearing has been scheduled for June 4, 2009 at 10:00 a.m. in room 3112 of the State Office Building behind the Capitol.

To read a copy of the rule, go to: http://www.insurance.utah.gov/legalresources/rules.html.

9. Insurance Management Consultants The American Association of Insurance Management Consultants (AAIMCo) is an association of consultants to the insurance industry for companies, agents and their consumers.

They claim that the experience of their members and the diversity of their expertise cannot be found elsewhere. Their standards of performance is maintained and sustained via continued education.

For further information, their website is located at: www.aaimco.com.

10. Want To Be Listed In New Directory? A new printed directory will come out in a couple of months listing all agency and associate members of UAIIA. There will be other important information in the directory as well. You must be a member to be included. If you haven’t renewed your membership, please sign up today.

11. Newsletter Inserts Watch for the inserts with our paper newsletter from Risk Placement Services, Inc., (RPS) and Chandler Insurance Managers, Inc. (CIMI). Thanks!

12. Credit Scoring Hearing On April 30th, the National Association of Insurance Commissioners (NAIC) held a public hearing about insurance companies’ use of credit scoring.

The hearing—co-hosted by the Property and Casualty Insurance Committee and the Market Regulation and Consumer Affairs Committee—focused on the impact of credit-based insurance score on consumers.

“Credit scoring is one of the most significant developments in the pricing of auto and homeowners insurance in the past 20 years,” said NAIC President and New Hampshire Insurance Commissioner Roger Sevigny. “Our goal is to protect consumers by ensuring that any use of credit scoring does not have unfair or unintended consequences.”

13. Fire Safe Cigarettes Since 2006, the Coalition for Fire Safe Cigarettes has been pursuing state laws requiring self-extinguishing cigarettes. Missouri became the 46th state to approve that type of legislation. The only states that have not are Alabama, Michigan, Nebraska and Wyoming.

So-called fire safe cigarettes have a special paper that causes the lighted end to go out when the burning tobacco reaches the treated section. The cigarettes essentially are designed to burn out when someone stops puffing on them. They are intended to reduce the chances for house fires caused by people falling asleep while smoking.

In Missouri, retailers could be fined up to $100 per pack for knowingly selling cigarettes that do not meet self-extinguishing requirements.

14. Contractors & Builders Conference This conference is the home of the Certified Insurance Specialist in Construction (CISC) designation. For further information, go to: www.ContractorsConference.com

Young Agents Talk About Generational Differences and Technology Needs

Discussion highlights what younger generations seek as agency employees.

Last fall, the Agents Council for Technology (ACT) sponsored a technology forum during the Big “I” Young Agents Leadership Institute to discuss generational differences and technology preferences from the perspective of young agents. The group of more than 70 young people was predominately comprised of generation X (under age 46) and millennials (under age 28).

Young agents suggested the best way to describe the difference in generations was to look at how they greet their friends: baby boomers will usually ask, “How’s your job?” Gen X’ers will ask, “How’s your family?” And millennials will ask, “What did you do this weekend?” While everyone in the room smiled this generational distinction, there was no dispute that the different generations need to understand each other and work together effectively.

The young agents encouraged agency principals to foster a discussion of generational differences within the agency and adopt flexible employee policies that are results-driven and reflect the needs of the different generations. After all, generations are evolutionary and each will change its perspectives based on the life cycle of graduating from college, getting a job, getting married, starting a family, buying a home, furthering a career and beginning preparations for retirement.
Young people are well-suited for the insurance industry because they enjoy working in teams and working with people. They also have a keen insight into how other young people think and are more adept at soliciting young people as clients. With the profound changes in marketing from the emergence of social networking on the Web (Facebook, Twitter, LinkedIn, etc.), younger generations can teach established agencies how to be visible in cyberspace where the young and young-at-heart do their research, purchase products and network. Agents have a wonderful opportunity to begin to use these tools not only to learn about new ways to communicate and network but to establish a marketing presence to attract new clients.

The young agents also pointed out that social media enables them to do virtual networking in a similar way to the in-person networking baby boomers have excelled at in their communities. In fact, social networking is putting a personal touch back into the Internet, which promises to put relationship-oriented agents into a stronger position than when the Internet was dominated by large corporate direct-writing companies.

This article is part one of a two-part series exploring the technology needs of young agents and customers.

Angelyn Treutel (Angelyn@treutel.com) is treasurer, vice president and chief information officer of Treutel Insurance Agency and chair of the Agents Council for Technology (ACT).

For more information about ACT, contact Jeff Yates, ACT executive director, at jeff.yates@iiaba.net.

This article reflects the views of the author and should not be construed as an official statement by ACT.

UAIIA Newsletter

For a flyer on the benefits of membership, please click on the following link: www.uaiia.org/benefits.pdf

Thanks to our 2009 Associate Members: Acuity, Advanced Restoration, LLC, American Mining Insurance Co., Austin Mutual Insurance Co., Auto-Owners Insurance Co., Bear River Mutual Insurance Co., BELFOR, Burns & Wilcox, LTD, Capital Premium Financing, Inc., CNA Insurance, CSE (Civil Service Employees) Insurance Co., Colonial General Insurance Co., Colorado Casualty, Continental Western Group, Cresta Insurance, LLC, Dairyland Auto, EMC Insurance Companies, Encompass/Allstate, Employers, Germantown Mutual Insurance Co., HCC Surety Group, Kemper, Legacy Insurance Services, Inc., Magna Carta Companies, MetLife Auto & Home, Mountain States Insurance Group, MULTICO Rating Systems, Inc., Mutual of Enumclaw, National American Insurance Company, Networked Insurance Agents, Pennsylvania Lumbermens Mutual Insurance Co., Philadelphia Insurance, Premium Financing Specialists, Professional Lines Underwriting Specialists, Inc., Risk Placement Services, Safeco Insurance Co., Sagamore Insurance Company, Santa Fe Auto Insurance Co., State Auto Insurance, Statewide Insurance Corp., Surplus Lines Association of Utah, Swett & Crawford, Total Restoration, Inc., Transwestern General Agency, Travelers, UCA General Insurance, Utah Business Insurance Company, Utah Disaster Kleenup, Western National Insurance Group and Workers Compensation Fund

1. Who’s Your Grand Daddy?

2. Agent, Young Agent & Company Person of Year

3. Can You Say “Up The Creek Without A Paddle?”

4. Chubbdog Millionaires

5. Wolf in Sheep’s Clothing

6. Obama and State Insurance Supervision

7. Salt Lake Bees Discount Tickets

8. Nilsson To Represent USA

9. Is Your Agency on Real Time?

10. Flyers in Newsletter

11. Top Five Complaints

12. Our Industry, Our Responsibility

13. Say What You Mean: Character, Integrity and Independent Agents


1. Who’s Your Grand Daddy? We sent out a final legislative update last week, but we failed to tell you about one thing that could affect many of you. In HB280S01, the continuing education bill, the grandfather clause date was changed. The enrolled bill reads as follows: A licensee is exempt from continuing education requirements under this section if: (A) the licensee was first licensed before April 1, 1978; (The old date was April 1, 1970.) (B) the licensee requests an exemption from the department; and (C) the department approves the exemption. (ii) If the department approves the exemption under Subsection (3)(d)(i), the licensee is not required to apply again for the exemption.

Here is how it works: After May 12, 2009 (when the bill is effective), if your license was effective before April 1, 1978, you need to send an email to mcovington@utah.gov with your license number and request the grandfather status. If your license shows a date after March 31, 1978, but you have held a license in another state previously, then you need to send proof of being licensed prior to April 1, 1978 and prior to transferring to Utah.

2. Agent, Young Agent, & Company Person of Year We hope you all are planning to attend our Annual Convention at the Zermatt Resort on June 11 – 13, 2009 or at least Free Day Friday. We’ve got a great program with outstanding speakers, trade show, entertainment, awards and golf. Go to the following link for further information: www.uaiia.org/_private/zermattconvention.htm.

We would like to receive your nominations for Agent, Young Agent and Company Person of the Year. If you know someone who is deserving, go to the following link for a recommendation form: www.uaiia.org/_private/2009nominationform.pdf. Thanks!

3. Can You Say “Up the creek without a paddle?” The nonpartisan Congressional Budget Office (CBO), actually under control of the Democratic Congress, released its estimates of impending budget deficits on March 20th. The CBO estimates suggest that deficits during the next 10 years will be 33% higher ($2.3 trillion, or $2,300,000,000,000 more) than what the new Administration’s deficit projections indicate.

Based on current CBO estimates, the cumulative deficit would be $9.3 trillion from 2010 to 2019, or nearly $1,000,000,000,000 annually. The total would more than double the national debt in the hands of the public, taking it from the current $6.7 trillion to $17 trillion. The Obama deficits would exceed the total accumulation of debt during all prior presidents. (From Jeff Thredgold’s Tea Leaf newsletter.)

4. Chubbdog Millionaires Ten employees in the IT department of Chubb Commercial Insurance have hit the jackpot. They are sharing in the winnings on a multi-state Mega Millions lottery ticket worth $216 million. The winners should get about $8.1 million a year each, before taxes, for the next 26 years from their lucky purchase. Apparently, no actuaries were consulted in the number selection; the group said their picks were random.

5. Wolf in Sheep’s Clothing A new bill introduced in Congress on April 2nd could be considered a wolf in sheep’s clothing. Representative Melissa Bean (D-IL) and Representative Ed Royce (R-CA) sponsored The National Insurance Consumer Protection Act.

“While it has an appealing title, this latest incarnation of Optional Federal Charter (OFC) legislation would damage the stable and healthy insurance marketplace to the detriment of consumers,” says Robert A. Rusbuldt, Big “I” president and CEO. “While the bill has a few changes, it is basically the same concept, optional federal chartering and deregulation of strong state consumer protections, which has rightfully been rejected and ignored by previous Congresses. There is no doubt the current regulatory system needs more uniformity and efficiency, but there are more prudent ways to accomplish this via targeted federal legislation.”

6. Obama and State Insurance Supervision National Association of Insurance Commissioners (NAIC) President and New Hampshire Insurance Commissioner Roger Sevigny says the most recent financial services regulatory proposal from the Obama Administration retains a role for state insurance commissioners.

“We are encouraged by Secretary Geithner’s statements that this proposal will maintain the important role that state regulators play in supervising insurance companies,” Sevigny said. “We agree with his assertion that financial institutions must not be allowed to ‘cherry pick’ among competing regulators in search of the lowest standards and constraints. We also agree that there is a need to address how resolutions would operate for financial structures and activities outside of the existing FDIC system for banks and the existing state guaranty fund system for insurers. However, any expansion of federal resolution authority should not displace those proven systems.”

7. Salt Lake Bees Discount Tickets Members of UAIIA can now get discount tickets to Salt Lake Bees baseball games. You can receive $2.50 - $3.50 savings on individual tickets. Here are some of the special game nights to consider: Opening night April 9th, fireworks nights -- May 29th, June 5th, July 4th & 5th, July 23rd, 24th, and 25th, August 22nd and September 5th. Go to the following website to get tickets online: http://www.ticketmaster.com/promo/qgb68v -- Our company password is: UAIIA

For further information call Eric Woodbury at (801) 350-6917.

8. Nilsson To Represent USA Utah’s C. Brett Nilsson, CIC, chairman of the Independent Insurance Agents & Brokers of America (IIABA or the Big “I”), was recently selected to represent the United States of America on the World Federation of Insurance Intermediaries (WFII) World Council.

The WFII provides a platform for agent and broker associations from around the globe to exchange information about common issues and concerns and to initiate and coordinate advocacy actions. In its 10-year history, the WFII has worked on promoting and representing the interests of insurance agents and their customers before influential international organizations including the International Association of Insurance Supervisors, the World Trade Organization, the Organization for Economic Cooperation and Development, and the United Nations.

9. Is Your Agency on Real Time? If your agency hasn’t implemented Real Time, the next major advance in agency workflow, here is your chance to learn about it. There will be a webinar on May 6th, which will explain Real Time, demonstrate it, discuss the benefits, and outline what your next steps should be. There is no charge for agents or others to attend the webinar. After you logon to the Internet session, you will be able to listen to the audio through your computer headset or speakers. If you would prefer, you will also be provided with a toll number you can call to listen to the audio. To register for the May 6th session (1:30 – 2:30 p.m. eastern time), go to the following web address:

https://www1.gotomeeting.com/register/771210636

10. Flyers in Newsletter Check out the flyers in this month’s paper newsletter for a discount on FedEx shipping, information on American Mining and for the latest information on a Utah CIC Institute.

11. Top Five Complaints According to the National Association of Insurance Commissioners (NAIC), the top five complaints against insurance companies are as follows in order of the highest complaint: 1. Delays 2. Denial of Claims 3. Unsatisfactory Settlement 4. Premium and Rating 5. Cancellation.

The top five complaints by type of coverage are: 1. Accident and Health 2. Auto 3. Homeowners 4. Life and Annuity 5. Commercial Multi-Peril.

12. Our Industry, Our Responsibility At the end of our electronic Newsletter, I’m posting an article entitled: “Say What You Mean: Character, Integrity and Independent Agents”. This article made me feel good about working in the insurance industry, but also made me realize what an awesome responsibility we have to maintain our character and integrity. It was written by Mitch Dunford, who is CEO for Insurance Journal’s parent company, Wells Publishing, Inc. Mitch has roots in Utah and has stopped by our association office a few times. He gave me permission to send this article to our membership.

13. Say What You Mean: Character, Integrity and Independent Agents

By Mitch Dunford
April 2, 2009

"I meant what I said, and said what I meant..."

Although that quote was written in 1954 by Dr. Seuss in his book "Horton Hears a Who," it is a powerful reminder today to act with character and integrity.

"Horton Hears a Who" tells the story of Horton the Elephant, who hears a small speck of dust talking to him. It turns out the speck is a tiny planet, home to a city called Whoville that is inhabited by microscopic-sized people known as Whos. The Whos ask Horton (who cannot see them but can hear them) to protect them from harm, which Horton promises to do — despite opposition from the other jungle animals who believe Horton has lost his mind. As it becomes more difficult to protect the Whos, Horton is encouraged to leave the Whos to fend for themselves. Yet Horton stands behind his promise, declaring, "I meant what I said, and I said what I meant, an elephant is faithful 100 percent."

Horton's motto is a good reminder for all of us. There is little debate on where we find our country economically. The auto industry is in crisis; financial markets are a mess; the unemployment rate is growing daily; banks are closing; foreclosures are at an all-time high; and bad economic news continues.

Despite the constant diet of bad news and stark economic realities we are left to deal with, if you look at the situation through the clear lens of truth, you'd find that what led us here was not a crisis of cash, but a crisis of character.

Decades of dishonesty, greed and the notion that character doesn't matter have caught up to us. As business leaders, politicians and others in positions of trust have relied upon the crazy notion that competency is everything and personal integrity is expendable, we find ourselves reaping the fruits of that ideology — and it's not good.

Integrity and trust are fundamental principles of leadership and power,
and are the foundation of a strong economy. Our unique economic system is tied to freedom, and freedom is tied to responsible and ethical behavior. When we allow in ourselves and in our leaders a pattern of irresponsible behavior, we give up our freedoms in an effort to repair the damage. And as our freedoms erode, so does our unique economy.

You have chosen to work in the insurance industry. While others seek to minimize risk you embrace it. You study it, you calculate it, you even profit from it. You are now, and have been for hundreds of years, our economy's last line of defense. You make it possible for businesses to open and grow, for loans to be made, for new inventions to come to market, and for young people to buy their first car or their first home.

Without you and your industry, the way of life to which we have grown accustomed would slow to a grinding halt.

Inside the insurance industry, there is tremendous potential for growth, both personal and financial. The industry is one of the most lucrative professions in the world.

But with that opportunity comes a responsibility: to act with integrity and with character in how you do business. Our economy cannot afford to lose confidence in our industry.

To close a sale, there may be temptation to not fully explain a policy's new conditions or exclusions. There may be temptation to suggest coverage exists that really doesn't, and then to blame someone else for the error when the claim is denied. Our industry must resist temptations to deceive.

It starts with a personal decision in each of us to do the right thing: to value our character, reputation and the important role our industry plays in the health of our economy more than money. To say in our quiet moments, "I meant what I said, and I said what I meant."

There is astonishing power when a single person makes a single, honest decision. It can be contagious. As dishonesty breeds mistrust, honesty gives rise to trust, and trust provides the foundation for more honesty. It starts with one, each one of us doing the right thing for the right reason.

A government "stimulus" package will not save us. A bailout of AIG or GM will not solve the underlying problem. Instead, the quiet personal resolve to act with character and integrity in everything we do, and to demand the same behavior in our leaders, will lead to long-lasting, positive change. There is still something noble in the American spirit. I believe in us. I believe in our character as Americans to dig deep and to dig out of any problem, to do the right thing, and to do the extraordinary.
___

Mitch Dunford is CEO for Insurance Journal's parent company, Wells Publishing Inc. E-mail him comments at mitch@insurancejournal.com

On the Hill

Big “I” Speaks Up for Small Businesses and Independent Agencies at Hearing

P-C market stable, targeted modernization is the prudent approach to reform.

This week, Spencer Houldin, chairman of the Big “I” government affairs committee, represented the Big “I” before the U.S. Senate Banking Committee in a hearing titled, “Perspectives on Modernizing Insurance Regulation.”

Houldin is also an independent agent, president of Ericson Insurance in Washington Depot, Conn. and the Connecticut representative on the IIABA board of directors.

The Big “I” was the only agent/broker association to testify at the hearing. Other witnesses included: Michael McRaith, director, Illinois Department of Financial and Professional Regulation, on behalf of the National Association of Insurance Commissioners (NAIC); the Honorable Frank Keating, president and chief executive officer, The American Council of Life Insurers; William Berkley, chairman and chief executive officer, W. R. Berkley Corporation, on behalf of the American Insurance Association (AIA); John Hill, president and chief operating officer, Magna Carta Companies, on behalf of the National Association of Mutual Insurance Companies (NAMIC); Frank Nutter, president, The Reinsurance Association of America; and Robert Hunter, director of insurance, The Consumer Federation of America (CFA).

In his testimony, Houldin focused on small businesses, like his, in the independent agency system. He said that “(w)e must carefully examine the causes of the current crisis, and determine how or if regulatory policy should change to ensure we do not repeat the mistakes of the past. It is a daunting task, and as a small businessman who must conduct business in the regulatory environment of the future, I implore policymakers to act judiciously and make sure that when you act, you get it right.”

Houldin emphasized that the current state regulation system is working, although it could use some targeted reforms.

“(A)s we undertake a review of current regulations in place and consider strengthening existing laws or adding additional ones, we must ensure that we do not simply toss out regulatory systems that work in an effort essentially to wipe the slate clean and start over,” said Houldin. “…It should not be overlooked that the state system has an inherent consumer-protection advantage in that there are multiple regulators overseeing an entity and its products, allowing others to notice and rectify potential regulatory mistakes or gaps. Providing one regulator with all of these responsibilities, consolidating regulatory risk and essentially going against the very nature of insurance of spreading risk, could lead to more substantial problems where errors of that one regulator lead to extensive problems throughout the entire market.”

The Big “I” has long asserted that the best method for addressing regulatory deficiencies is by enacting targeted legislation or federal legislative ‘tools’ that establish greater interstate consistency and streamline redundant oversight, not an optional federal charter (OFC), which would result in regulatory arbitrage by allowing companies to pick and choose a regulatory system. The use of targeted and limited federal legislation on an as-needed basis can improve rather than dismantle the current state-based system and in the process produce a more efficient and effective regulatory framework.

In conclusion, Houldin emphasized that “IIABA believes that, with the exception of a properly crafted systemic risk overseer at the federal level, targeted modernization is the prudent course of action for reform of insurance regulation. Therefore, any efforts to use this crisis and the failure of AIG as an opportunity to promote misguided measures that would allow a regulated insurance entity to choose its own regulator should be summarily dismissed as unacceptable in today’s financial environment.”

Margarita Tapia (margarita.tapia@iiaba.net) is Big “I” director of public affairs.