Industry News

PIA National issued a press release on May 24 that had two purposes: (1) to educate the public about post-disaster claims filing; and (2) to make the point that most people do not need to hire a public adjuster.

Our press release was prompted by one that was issued by the National Association of Public Insurance Adjusters, in which they present claims filing advice filled with recommendations that Oklahoma disaster victims should consider hiring a public insurance adjuster.

“Public adjusters sometimes have a role, but frankly in most cases consumers do not need to take on the additional expense of hiring one,” said PIA National Executive Vice President & CEO Ron Von Haden. “Professional insurance agents assist their clients in the claims filing process, which begins with filing a claim with the insurance company, at no added cost. The overwhelming number of claims are properly paid. Approaching the claims filing process in an open, cooperative manner produces a better result than assuming a potentially adversarial stance from the outset.”

In our press release, Senior Vice President Patricia A. Borowski elaborated further. “Public adjusters imply that the settlement won’t be fair to the policyholder without their intervention, for which they charge an additional fee directly to the person who is insured,” she said. “This fee is usually a percentage of the final settlement – and for some, it might also include extra charges for the expenses of the public adjuster.”

“Under the insurance and contract laws of every U.S. jurisdiction, insurance companies are required and obligated to perform the claims services and settlements that are stated in their insurance policy contracts,” Borowski said. “Also, in every state there is a Department of Insurance, along with regulators, who will assist consumers to ensure that insurers meet their obligations. This service is a part of state government, which consumers have already paid for in their taxes.”

PIA Offers Post-Disaster Claims Filing Tips (May 24, 2013)

If you pay attention to some industry pundits — which is always risky — you might think that customers increasingly want to buy insurance policies online. You might come to believe that younger customers really want to transact business online. You could assume that price is the prime motivating factor in insurance purchases. You might even be tempted to conclude that people value insurance agents less.

The trouble with all of that is all of it is wrong! PIA National President Andrew C. Harris notes that in just the past year, there have been several large surveys conducted that reveal that this so-called “conventional wisdom” is incorrect. One of these surveys was conducted by Ernst & Young. Another was conducted by Accenture. Another was conducted by PIA, through our company council, the PIA Partnership. The bottom line on all of them: consumers value what agents provide and they prefer dealing with agents!

Harris notes that misconceptions about what consumers want are being driven by massive advertising by the direct writers. “We need to get the truth out person by person, client by client,”said Harris, in his latest President’s Message to PIA. “Warren Buffett can pay to put a billion geckos on our television screens, but a cartoon character or a disembodied voice will never be there after a Hurricane Katrina or a Superstorm Sandy, personally helping insureds put their lives back together.” You can read Harris’ full message here.

Elsie Reamy, who for 41 years was affiliated with the Professional Insurance Agents Association of Virginia and D.C. (PIA-VA/DC) and served as the organization’s executive vice president, passed away in April after a long battle with cancer. She was 75 and resided in Richmond, Va.

Reamy began her career in 1970 as office manager for what was then called the Mutual Insurance Agents’ Association of Virginia and (Washington) D.C. Following her retirement from PIA-VA/DC in 2003, she retained a part-time affiliation as state legislative chair for another eight years.

Besides the countless awards and recognitions for her contributions to the association – such as growing membership, building offerings to more than 100 classes, creating an education foundation and two PACs, and her tireless involvement with insurance causes throughout Virginia – Reamy was known as leader of a professional organization run with a major dose of Southern hospitality.

“There’s really no limit to the sense of fellowship and community that Elsie’s charm and professionalism brought to nearly every phase of the insurance industry in Virginia,” said Dennis Yocom, current executive vice president of PIA-VA/DC. “They really broke the mold with Elsie; she’s one of a kind and will be remembered fondly by agents across the nation.”

Over the span of 41 years, Elsie earned countless awards, and recognition for so many organizational “firsts” that they cannot be accurately listed. Here are just a few: more than doubled agent membership and staffing; increased budget by 10 times; built educational offerings to more than 100 classes annually while increasing attendance by 50 percent; created publications, an education foundation and two PACs; grew convention attendance annually; wrote the 70+ year history of PIAVA/DC titled “A Legacy of Service and Fellowship”, and adopted Special Olympics of Virginia as charity of choice 34 years ago. Her most endearing accomplishment is that Elsie took a self-help concept from a group of professional insurance agents and, by applying a major dose of Southern hospitality, turned it into an organizational “family” providing personal professional services to more than 500 agencies and in excess of 2,500 agents in Virginia and DC.

In her own words: “I want your association to always be an agents’ association; by this I mean for programs and services to be those you need and use. I want it to always be meaningful to you, and for you to feel that you’re the one running it.”

Reamy was a licensed insurance agent with numerous designations and was a certified association executive (CAE). In 1991, she was given an Award of Excellence from the Virginia Society of Association Executives. She was recognized by her insurance association peers as Executive of the Year in 1992 by the National Society of PIA Executives, and in 1996 was honored as Industry Person of the Year by the Insurance Women of Richmond. In 2003, Reamy received recognition on the floor of the House of Delegates of the Virginia General Assembly for her service to the association community, to the insurance industry and to the Virginia Legislature.

She was also active in the church community, having served as a leader, church school teacher and secretary at local churches. Reamy is survived by a brother, Joseph Reamy, of Montross, Va.

Donations in Reamy’s honor may be made to the Elsie Reamy Scholarship Fund, c/o PIA VA/DC, 8751 Park Central Drive, Ste 140, Richmond, VA 23238 or to Ephesus Christian Church General Fund (P.O. Box 1027, Montross, VA 22520); or Bethany Christian Church Memorial Fund (5400 Forest Hill Ave, Richmond, VA 23225).

Elsie Reamy Remembered

On Sunday, April 14, 2013, the Board of Directors of the National Association of Professional Insurance Agents issued a solemn Proclamation, honoring the late PIA National Chief Financial Officer (CFO) Loan Nguyen, who passed away on Tuesday, March 19, 2013 following a long illness.

Loan served PIA since 1986, managing our finances with the highest degree of professionalism and the utmost commitment to PIA. She touched the lives of all those who were fortunate enough to know her. The Board Proclamation states, in part:

Whereas: For more than 27 years, Loan Nguyen guarded the financial assets of the National Association of Professional Insurance Agents with diligence;

Whereas: Everyone in PIA, at the national level and throughout the many PIA affiliates, recognized and appreciated Loan Nguyen’s unquestioned honesty and integrity;

Whereas: Loan Nguyen truly believed in and loved PIA with a fierce loyalty;

Whereas: Loan Nguyen believed that PIA is a family, that PIA was part of her family, and as such she always cared about and sought to protect her PIA family;

Whereas: PIA has suffered an incalculable loss with the passing of Loan Nguyen – our guardian, our matriarch, our protector, the keeper of the PIA National flame, our dearest and most beloved friend;

Therefore Be It Resolved: That the Board of Directors of the National Association of Professional Insurance Agents does hereby express its most profound condolences upon the passing of our dear friend Loan Nguyen and confer the highest affirmation of our undying appreciation and respect upon the memory of her time among us.

ADOPTED unanimously, on this 14th day of April, 2013, by the National Association of Professional Insurance Agents. You may read the complete proclamation here.

A special dedication ceremony, with the planting of a tree outside Loan’s former office, the installation of a memorial plaque and a celebration of Loan’s life, is planned at the PIA National headquarters in Alexandria, Virginia on May 1, 2013.

The announcement that former Nebraska Governor and former U.S. Senator Ben Nelson had been chosen as the new chief executive officer of the National Association of Insurance Commissioners (NAIC) was music to the ears of supporters of state insurance regulation. An article by PIA’s Ted Besesparis in the March 2013 issue of American Agent & Broker magazine sings the praises of Nelson, with whom PIA National and PIA of Nebraska have maintained a close working relationship over several decades.

An excerpt: “Like the cavalry riding to the rescue, Nelson was in his new job only 24 hours before he held a press conference and declared that there is ‘no need for dual regulation’ of insurance. You could almost hear a collective national sigh of relief emanating from the supporters of state insurance regulation.” You can read the entire article here.

Ben Nelson to the Rescue ..(American Agent & Broker March 2013)

Mike Becker has been named Vice President of Federal Affairs for the National Association of Professional Insurance Agents (PIA). The announcement was made by PIA National Executive Vice President & CEO Ron Von Haden. Becker heads PIA’s day-to-day lobbying efforts on Capitol Hill, directs the annual PIA National Federal Legislative Summit and is the lead liaison to the association’s Government Affairs Committee. He serves as the Treasurer of the Professional Insurance Agents Political Action Committee (PIAPAC) and is a board member of Advocates for Highway and Auto Safety.

“PIA is pleased to recognize the accomplishments of Mike Becker in his Capitol Hill advocacy for PIA members,” said Von Haden. “His legislative acumen, dogged determination and extensive Washington contacts benefit our members by advancing PIA’s agenda every day.” – more –

PIA National Names Becker as Federal Affairs VP (Insurance Journal 2/18/13)

PIA has confidence that the reforms adopted by Congress last summer will put the National Flood Insurance Program (NFIP) back on a firm footing. Rep. Jeb Hensarling (R-Texas), incoming chairman of the House Financial Services Committee, said during the debate that while people with flood policies need to be paid now, his committee will mark up a bill this year “to transition to a private innovative, competitive, sustainable flood-insurance market.” He acknowledged that some reforms were imposed through the NFIP reauthorization legislation enacted in July, but said that despite those reforms “Sandy has hit before many of these provisions could take effect.”

“PIA supports the NFIP and we remain confident that after years of work, the NFIP reform law that passed Congress last year will make the necessary changes to put this program back on a sound footing,” said PIA National assistant vice president of federal affairs Mike Becker. “We caution against proposals that would privatize the NFIP before the reforms are even implemented, and we look forward to conversations with the Chairman on his ideas to strengthen the program.”

PIA National scored a major victory for independent insurance agents everywhere as a model law governing certificates of insurance was finally adopted by the National Conference of Insurance Legislators (NCOIL). The action by NCOIL capped an intense 2-year campaign by PIA National. By enacting the model, states can eliminate demands for improper certificates of insurance.

PIA advocated for passage of the model over the course of the last two years and played an integral role in guiding it to approval by the state legislators, by helping to broker an agreement between carriers and lenders.

“This is a great achievement for PIA and NCOIL,” said PIA National President Andrew C. Harris, who testified in support of the model and worked to assuage the concerns of lenders.

“This is truly awesome news,” said PIA National Secretary/Assistant Treasurer Rob Hansen. “Congratulations and thank you to all who worked tirelessly to get this model certificates of insurance law adopted by NCOIL! Once again, PIA leads the way!”

David M. Eppstein, Esq., assistant vice president of regulatory affairs and a staff attorney for PIA National, worked closely with Harris to bring about NCOIL passage of the model. Eppstein writes about the successful PIA campaign in an article in PIA Connection.

PIA Achieves Major Win with Certs Model Law (PIA Connection 12/12)

PIA National President Andrew C. Harris addresses the agency-carrier partnership in his latest President’s Message. An excerpt:

“When independent insurance agencies speak about the carriers they represent, they often refer to their “carrier partners.” This is particularly appropriate, for many reasons. First, the business relationship between the agency and the carrier is one designed to be of mutual benefit. Second, revenue generated from this relationship goes to both parties. Finally, this business arrangement allows both participants to accomplish together what they cannot without each other.

“PIA agencies need financially sound, able and competitive insurers to meet the needs of their customers; carriers need quality, financially able independent insurance agencies to conduct the scope of business and provide the services required by insurance customers. In addition to marketing the carriers’ products, the agency processes insurance transactions, carries out the carriers’ instructions and assures that compliance obligations are met...

Canadian regulators are investigating whether banks have improperly solicited insurance business from their banking customers. Banks have been allowed to own insurance companies for about 20 years, but are not allowed to sell insurance products directly through bank branches or bank websites, said Steve Masnyk, manager of public affairs for the Insurance Brokers Association of Canada.

The IBAC filed a complaint with the Office of Superintendent of Financial Institutions, which oversees banks, alleging the Royal Bank of Canada and the Bank of Montreal have broken that rule, Masnyk told A.M. Best.

“We don’t have an issue with banks owning insurance companies, but are opposed to them retailing insurance directly with the bank, especially at the point where credit is granted,” Masnyk said. “It’s unfair to people when they are applying for credit to be pushed into any kind of insurance product.”