Industry News

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.”

On November 29, PIA National met with Federal Insurance Office (FIO) Director Michael McRaith at the U.S. Treasury Department. McRaith requested the meeting to discuss PIA’s views on regulatory modernization priorities. McRaith met with PIA Executive Vice President & CEO Leonard C. Brevik, Senior Vice President Patricia A. Borowski and Assistant Vice President of Federal Affairs Mike Becker. PIA’s comments were on the record and will be included in FIO’s report to Congress.

PIA National is preparing detailed written remarks to be submitted to the FIO. The written comments are due in mid-December. Our comments and ensuing discussion primarily focused in four areas:

1. That we believe insurance is efficiently regulated by the states and independent agents play a valuable role in serving consumers.
2. That FIO should support and compliment state regulation of insurance without federal preemption of state laws.
3. That FIO could help in addressing some of the licensing challenges faced by producers:

a.   support the National Insurance Producer Registry (NIPR) 
b.   Resolve foreign corporation issues

That FIO should ensure the solvency and financial soundness of foreign carriers operating in the U.S. domestic market.

Director McRaith had a number of follow up questions and the exchange was constructive.

An insurance company’s new campaign takes a crack at the increasing number of funny insurance commercials. Erie Insurance has been running ads that take aim at the Geico gecko, the Aflac duck, Flo, the Progressive spokeswoman, and Allstate’s mayhem guy. The company’s newest ad says, “It’s nice to have a good laugh now and then. But really...shouldn’t billions of dollars in humorous insurance ads be put to better use? We think so. For seriously good insurance, take a look at Erie Insurance.” The ad promises: “We give you great insurance.” A guy in a Groucho Marx getup drives the point home.

Erie Insurance Group is a member of The PIA Partnership.

Here’s Erie ad: http://www.seriouslygoodinsurance.com/landing.cfm

WASHINGTON, Tuesday, June 21, 2011  - The National Association of Professional Insurance Agents (PIA) is pleased to announce that Selective Insurance Company of America (Selective) has joined The PIA Partnership.

Comprised of senior insurance company executives, The PIA Partnership identifies areas of opportunity in the agency-company partnership, facilitates dialogue between senior company executives and PIA leaders and conducts solution-oriented research to enable the creation of practical hands-on tools for agents.

"We are extremely pleased that Selective, a distinguished company with a solid track record of supporting the American agency system, has joined The PIA Partnership," said PIA National Vice President/Treasurer Andrew C. Harris. "Selective's participation demonstrates its ongoing commitment to the continuing success of professional independent agents across the country."

"We believe in PIA's value proposition," said John Marchioni, Executive Vice President, Insurance Operations, of the company's decision to participate in The PIA Partnership. "Your advocacy, your objectives and your business tools align with Selective's commitment to the independent agent channel."

"I've seen first-hand the work PIA is doing on behalf of independent agents in our distribution system," Marchioni said. "The Partnership has developed some valuable tools and agents who are able to leverage this insight will be able to increase their value to their customers."

Selective Insurance Company of America is a subsidiary of Selective Insurance Group, Inc., a holding company for seven property and casualty insurance companies rated "A+" (Superior) by A.M. Best. Through independent agents, the insurance companies offer primary and alternative market insurance for commercial and personal risks, and flood insurance underwritten by the National Flood Insurance Program. Selective maintains a website at www.selective.com.

Founded in 1996 with start-up funding from PIA National, The PIA Partnership identifies areas of opportunity in the agency-company partnership, facilitates dialogue between company executives and PIA leaders and conducts solution-oriented research designed to enable both agents and companies to profit from these opportunities. Recent projects of The PIA Partnership have included Reaching Gen Y and Making the Internet Work for You; A Practical Guide to Successful Planning; and Perpetuation Central.

Founded in 1931, PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses. PIA members are Local Agents Serving Main Street America (SM). PIA's web address is www.pianet.com.