FIRST SHEET
FY 2014Business IssuesCommittee - DRAFT OUTLINE of WORK
FROM - September 21, 2013 – Las Vegas, NV
- Purpose, Mission & Management of BIC – Same for FY 2014– Please 2nd Sheet
- Subject/Projects – Please note for FY 2014 – BIC will continue organizing assignments among sub-groups of BIC members, as follows:
Working Group – WG - which will manage several issues/project and decide the order of timing and importance in which each will be addressed and how each will be broken down into more manageable segments which are addressed through the FY and may carry over to the next. OR
Task Force - TF – which means that the issue/project is very precise in its definition and scope and is to be accomplished/completed by or before end of FY 2014.
Hence, for this organization – we are just listing the actual issues and projects without assignment:
- ***COMPLETED HIPAA Omnibus New rules Guidance under PIAnet Leadership/membership section @
BUT – NEED to UPDATE entire Agency Tools Package for Privacy/Breech/Cyber Security – As much as possible use format style of current Agency Disaster Planning Tools kit, but will need more summarized background/explanation included.
To be completed before & no later than Spring 2014 meeting –
b. Working with PIA of VA/DC, staff to integrate VA/DC program materials on Cyber and then establish beginning issue resource/reference area on PIAnet –
***Going into FY 2014: Recommend –Completed no later than end of 11-2013.- Cyber ABCs resource page inclusive of PIA of VA/DC materials – and the discussion notes and suggestions for the BIC open forum discussion.Please see 3rd Sheet
C. PIA resources to support/assist PIA specific State Advocacy Plan to work with ALL PIA Affiliates for insurance CERTs and insurance Bindersupdates in their states and to beat back Mortgage Lenders’ efforts to have their own preparatory form approved.PIA- Backed Certificates Model Campaign – located - backed-certificates-model-campaign
Cert/Binder – ongoing – but
By end of October send message to all PIA Affiliates that makes clear the importance of this coordinated effort. Please include matrix of what states have changed their laws/regulations accordingly, which are in the midst of addressing this & which still need to move forward. Also note, what states, if any, have approved the mortgage lenders’ form. By end of November 2013 issue an update of PIA’s previous (2009) practice guidance bulletin to PIA agencies on this matter.
d.Have established E-signature resource area – currently - ( However, noted update for this is needed. The overall subject area is “Digital Signature.” This includes the per se E-signature, but is greater than this. It can include policyholder checking boxes on a form which makes clear they are accepting or rejecting coverage – or adding/changing current coverage, etc. In this context, the movement towards Digital Signatures is growing, and being accepted as valid. So, PIA members really need to begin understanding what e-options there are for their systems to accommodate this for their carriers, agency customers and the agency.
E-signatures
By end of 2013 or before - Update the discussion/description of the subject for members – and create subject webcast using Keith to post on resource page
e.. Advocacy Action Program to adopt Disclosure of Changes on Renewal to Policy Language: Work with PIA Affiliates to assure that all states have insurance statutory/regulatory requirement that insurers must issue advance notice to policyholder and copy to agency when making any change to renewing policy language, terms, conditions and/or meaning that was not otherwise requested by agency/policyholder. PIA policy position is: (i.) Atleast 45-days-in-advance disclosure notice to named-insured with copy to agent. Such notice shall: (ii.) advise all such changes, reason for such change, (iii.) provide explanation of difference between previous meaning and now amended current meaning, (iv.) note any limitations and/or changes in carrier practice and/or manner in which change will function in a claims matter as a result of said change.
f. Advance Disclosure of Changes on Renewal to Policy Language– October - Get memo out to PIA Leaders on this along with BIC suggested practice for agencies including ISO forms meaning vs. what each of PIA agencies’ carriers mean by their use of IOS forms or carrier unique form addressing the same area.
g.ISO CGL-Cyber - The coverage technical part of cyber-related coverage issues surrounding ISO and other carrier forms will be outlined. This will be LINKed back to the Cyber Resource area to underscore the connection/relationship, but placed under the Business Issues Section under TECH/TECH. The core issue here is that ISO and carriers are making clear that there is NO form of E-related coverage for any E-related claims under GL suite of policy forms (CGL, BOP, GL etc.) Coverage for any E-related exposure must be covered under the appropriate E-policy. Finally, E-related losses may apply to any & all FORMs in which data/information is collected, transferred, used internally and/or stored (paper or otherwise) – and has several components: Privacy; Securing/Breach & Cyber, i.e. systems.
GL/Cyber forms - In October advise PIA leaders on the ISO/carrier policy/stance clarification on GL & data/cyber related losses.
h. Please note – we just secured confirmation from ISO which will make their webinars/webcasts about forms changed available to and through PIA National to make available to PIA Affiliates and members. Along with this remind agencies to secure clear instruction and definition from their carriers as to their meaning of new forms.
ISO Webcasts – REMIND affiliates & members of these & reference purpose above.
i.fTDL – Issued letter to join this group. WG decided to pass, at this time, fTLD’s request of us to write a letter to ICANN to request exclusivity of fTLD’s application to prevail. FY 2014 CONTINUE.
EXCEPTION to UTLINE – A: NFIP RELATED MATTERS are assigned to and under:
Business Issues Arising in/with/from NFIP –Richie Clements (LA) Chair.
j. CompletedSummary reports sent to BIC members in September will be shared with WG members, as well as several updates since.
k. ADOPTED September 2011 & Reconfirmed by BIC action 09-21-13:
Suggested NFIP Proviso Disclosure for PIA Agency Use
PLEASE NOTE: Insurance coverage for and claim damages caused by floods and flooding events to include mudflows are not covered by the private US primary insurance marketplace. This is why the Federal National Flood Insurance Program (NFIP) is, most often,the only primary market available for flood insurance in the US. NFIP insures against damage caused by a federal declaration of condition of flooding causing loss to residential, multi-family, Condo, commercial, institutional and public buildings and their contents, and its continuance availability since 1968 has set the baseline standard of and for flood insurance coverage..
NFIP reminds all of us that the nature, scale, scope and covered territory are unique for each flooding event, and the federal government reserve the right to make separate and individual assessment of each flood-event to determine exactly how NFIP and its policy provisions and claims practices will (or will not) respond to and in each event and policyholder.
This can mean that FEMA/NFIP’s event-by-event decisions may differ from those they applied to/in previous events and/or in terms of instructions provided previously and pre-event for consumers and/or to insurance carriers and/or insurance producers working with NFIP.
WE suggest members consider including this when they send out the NFIP policy information/documents to their agency customers.
l. Proposed Additional Information Advisory – Adopted by BIC unanimous action 09-21-13
Changes and reforms in NFIP are focused on assuring current underwriting is accurate. Hence, agencies will need to move to a regular routine of NFIP renewal review. Accordingly, members may also wish to advise/remind their insurance agencies’ customers that they need to keep the agency always up to date on any changes their customers make to their current status. We suggest agencies consider using the following language, applied to all lines, in their annual agency Privacy & Practices noticed:
We value and appreciate your business and you having selected us as your local Main Street independent insurance agency. In order to best serve you and your insurance needs, please advise our agency immediately if you make and/or experience ANY CHANGES to your currently listed family or business status, the structure of your properties to include outer buildings and/or if you receive any notices from your lenders &/or community officials or organizations that address or change any matters affecting your lender information, your property, fire Class, flood zone, building codes/requirements,elevation requirements and the like. Such changes may affect and/or require changes be made to your current details of your existing insurance policies. Help us to help to ensure your insurance coverages keep pace with your changing insurance needs.
FY 2014 - BIC instructed these to be edited – and these versions have been reduced by ½, and the issues driving these suggestions and the need served by these NOTES for members’ benefit.
m. Please see the progress report, attached, with several summary observations of the PIA Market Trends Survey –Reviewed & Accepted by BIC members. Publish by end of November 2013.
n. Agency Agreements – Issues are Arising - New approaches to agency operation/structures for market/backroom – How might agencies evolve their operations to gain more efficiency, cost- effectiveness and attractiveness to carriers?
FY 2014 Revised Look/Approach to Agency Agreements – two-way street & educate carriers.
- Agency Termination Laws/Regulations – Complete Guidance Sheets & review to determine if updates are needed to current state laws/regulations.
Part 1 – When Agency Terminates
Part 2 – When Carrier Terminates
Part 3 – Laws/Regulations – (i.) History WHY, Function & Continued Need; (ii.) Current Law/Reg status; (iii.) Suggested Changes; (iv) Action Plan
NEW to Include for FY 2014:
P. Technology Issues – Insurance Sales online and those doing it want to change laws/methods/policy forms to fit easy of online rather than making online fit what everyone else has to comply with – and that are better and more protective of consumers. Fraud from this is now becoming a BIG thing, especially because of the difference in legal oversight and Mainland US.
Q. Obama Care – The Employer - So many trying to get on to the mandatory training for the 10-01-13 enrollments that the online systems they are requiring us to use are crashing the systems. Can’t get help! Phone – no answer/busy or NO answer and ONLINE - NO answer. If you can get anyone on the phone, they can’t answer our questions. We’re not getting CE – but that doesn’t matter because we’ve got to get “certified,” so we just need to get it done! Also, LOTS of confusion! Good example: MD – state exchange, DC – federal exchange, VA no exchange, so what are we required to do for/in VA? Almost all of us have employers with employees in all those jurisdictions. How do we cope? Thought I had a carrier that I could knit a program across all three, but then Aetna pulled out! It is a mess!!!
Two additional issues are: (1.) Employer required reporting under ACA; DOL; IRS; and state vehicles both for employers offering benefits and another set for employers NOT offering benefits? Also, what private sector coverage “alternatives” will arise; will they be permitted, accepted &/or legal; and will there be a market for “coverage plus following form offerings that employers may opt-towards for their competitive benefit offerings?
**Will make a good BIC WG for 2014! Please see July/August Issue of PIA Connection & Andy Harris special section introducing this exact topic.
R. Producer License Issue – Interstate issues – especially when the state has ancillary business exception – and carrier is still requiring a license in order to pay us!!!!!!!!!!! .
Have Discussed this idea: ***Work Group/Task Force may be assembled from among BIC and GAC to address NEXT Generation for Producer Licensing and Oversight and Enforcement of Insurance. This is about where PIA agency owners wish and need the system going forward for the best management of their agency businesses. This would UPDATE the 1982 original PIA member work with brought us – Single License and many other of the progressive reforms we enjoy today – and many more that have yet to be adopted. This follows the issue-discussion raised by staff in the past: December 2012 – Staff (Eppstein) asked that members to advise about any issues that they still face with non-residence licensing and the particulars for NAIC WG. Members agreed that at one level, things have improved; at another they have become more complicated. Biggest challenge is, still, differences between states that demand foreign entities are registered/licensed in their state first which may trigger the obligation to also have the agency licensed as a nonresident entity vs. states that ONLY licensed individual insurance producers. Chair noted item for Agency Operations WG.