| Today is the LAST DAY to apply for the 2024 Big I Kentucky Education Scholarship. Are you interested in a new designation? Want to take an MBA class with other insurance professionals around the U.S.? The scholarship can be used for the Commercial Lines Coverage Specialist designation, an online program to be access at any time this calendar year. You can also use the scholarship for registration in the spring or fall IA-MBA course. Don't miss out on this opportunity!
APPLY HERE- 2024 Education Scholarship (smartsheet.com)
More info about the CLCS- Created with the learning needs of new insurance producers, agents, managers, CSRs and corporate staff in mind, the CLCS is the most complete professional learning program available for industry professionals seeking to master the subject of commercial lines coverage. Earn 9 CE hours for completing all five parts to this designation.
Benefits of the CLCS Designation: -Gain fundamental knowledge necessary to begin working in the insurance industry -Fill the knowledge gap between entry-level and advanced positions in underwriting and claims
-Understand and be able to apply comprehensive concepts in a practical way -Become well versed in the main aspects of the commercial world of insurance -Learn about insurance principles, commercial auto, general liability, commercial property, and workers compensation topics -Readily digestible, easy learning format -Focus only on industry and commercial concepts to move into a competency level that would otherwise take years using a more traditional approach -Competently assume a functional role for the agency or carrier
More info about the IA-MBA program-
Designed for growing agencies, this unique program is your road map to optimizing the essential skills for nurturing a thriving, profitable agency. Why Join the IA-MBA?
-Transformative Training & Networking: The blend of self-paced eLearning with bi-weekly live sessions with industry experts & peers can easily fit into your full-time role. -MBA-Based Insight in 10-Weeks: A curriculum designed to streamline the practical lessons taught in an executive MBA, but tailored for independent insurance agencies. -Upskill Your Entire Agency: Team discounts available, but more importantly, create a shared language of leadership and implement the lessons together.
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| When it adjourned on Friday, March 1, the General Assembly had completed the forty-second legislative day of this sixty-day 2024 Session. In addition to passing the two-thirds mark for the Session, deadlines for new bill filings were this week. Over 1,200 bills have been filed (not including resolutions), which is roughly 50 more than was filed in the last long session. This includes nearly 150 shell bills, which can be used as vehicles to move legislation now that the bill filing deadline has passed.
Don’t forget to review the Big I bill list!!! In order to help us all stay engaged on legislation that could impact YOU, this bill list is updated nightly and can be accessed 24/7 via this link. Moving HB 256 - Fortified Roof Incentives - Remains in the House Appropriations & Revenue Committee but will be considered in House A&R on Tuesday and, if reported favorably, could be out of the House this week. SB 29 - Glass Bill - Two Readings in House Rules. Could see House floor action this week. HB 280 - NCOIL Delivery Network Companies Insurance Model - To be heard in Senate B&I on Tuesday HB 371 - Mine Subsidence Coverage Limit - Gives the DOI the authority to adjust mine subsidence coverage to meet increased construction costs. To be heard in Senate B&I on Tuesday with an agreed committee substitute to address insurer concerns about the implementation timeline. SB 158 - Minor Settlements - Passed House B&I and has two Readings in the House Rules committee HB 401 - Reverses a KY Supreme Court ruling to allow out-of-state physicians to review workers’ compensation medical records. In Senate Economic Development Committee
HB 498 - DOI Accreditation - The DOI’s financial standards legislation needed to maintain their NAIC accreditation passed the House and is in the Senate Committee on Committees awaiting assignment. HB 554 - This measure would allow public universities to opt out of buying coverage from the state Tornado & Fire fund and allow them to access coverage in the private market. Passed House awaiting Senate Committee assignment No Movement Yet HB 620 - Hands-Free - Prohibits the use of cell phones when driving. It has not been assigned to committee. SB 188 - Sen. Wise - An omnibus PBM reform bill that would mandate pharmacists dispensing fees in statute, restrict mail order pharmacy, and mandate changes to pharmacy networks. The LRC’s financial analysis is not available yet, but we continue to hear a lot of chatter that this could have a significant impact on self-insured health groups and ERISA plans. HB 474 - ESG Disclosure - This legislation requires disclosure by investment advisers if the investments being offered follow an ESG policy. Being opposed by SIFMA. Awaiting committee assignment. |
| Key Bills SB 29 - Glass Bill - Heard and favorably reported by the House B&I committee on Wednesday, with an HCS to address concerns raised by some in the industry over the compromise AOB language. SB 29 is in House Rules with two readings. HB 280 - Delivery Network Companies - Pollock's NCOIL model insurance requirements for delivery network companies. Assigned to Senate B&I. HB 474 - ESG Disclosure - This legislation requires disclosure by investment advisers if the investments being offered follow an ESG policy. Being opposed by SIFMA. Awaiting committee assignment. HB 554 - This measure would allow public universities to opt out of buying coverage from the state Tornado & Fire fund and allow them to access coverage in the private market. Likely to be voted on the House floor this week.
SB 188 - Sen. Wise - An
omnibus PBM reform bill that would mandate pharmacists dispensing fees in
statute, restrict mail order pharmacy, and mandate changes to pharmacy
networks. The LRC’s financial analysis is not available yet, but we continue to
hear a lot of chatter that this could have a significant impact on self-insured health
groups and ERISA plans.
HB 620 - Hands-Free - Rep. Pollock filed legislation last week that would prohibit the use of cell phones when driving. It has not been assigned to committee, and the issue is not supported by Leadership. HB 256 - Fortified Roof Incentives - Remains in the House Appropriations & Revenue Committee. The Chairman has signed off on the bill, but it won't be heard in their meeting on 2-27. HB 401 - Rep. Pollock, to legislatively reverse a KY Supreme Court ruling and allow out-of-state physicians to review workers' compensation medical records. In Senate Committee on Committees. HB 371 - Mine Subsidence - Rep. Wade Williams' bill to give the DOI the authority to adjust mine subsidence coverage to meet increased construction costs, which has been assigned to Senate B&I. We expect an amendment in the Senate from some insurers concerned about the implementation timeline. HB 498 - DOI Accreditation - The DOI's financial standards legislation needed to maintain their NAIC accreditation passed the House and is in the Senate Committee on Committees awaiting assignment.
Contact Tara Purvis tpurvis@bigiky.org.
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| Join insurance pros around the country on February 28th as we share the cool aspects of your career! Follow along on Facebook, X, Instagram, and LinkedIn! WHAT: #DayInTheLife Social Challenge WHEN: Wednesday, February 28, 2024 WHERE: Facebook, Instagram, LinkedIn, XJoin us on 2/28 by sharing a photo or video on your social channels with the following hashtags: #DayInTheLife #InsureMyCareer
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| When we report that there are a lot of bills moving of interest to Big I members, think about this…last week, four insurance bills passed off the House or Senate floor. Thanks in large part to YOUR efforts and the relationships you have built with your local legislators, the insurance industry is in a prominent place where the needs of our industry are being heard by leaders in both chambers.
Below, we have provided an update on the bills that moved last week and what we expect in the week ahead.
These bills need review from Big I kentucky members:
HB 474 - ESG Disclosure - This legislation requires disclosure by investment advisers if the investments being offered follow an ESG policy. Being opposed by SIFMA. SB 162 - Accident Reports - Sen. Mills bill allowing Carfax to contract with local law enforcement agencies related to accident reports passed from committee on Wednesday with a Committee Substitute to address concerns raised by the industry related to access to accident reports by PIP/legal runners. HB 470 - Home Solicitation Sales - Exempts products regulated by the DOI from the home solicitation sales regulations. HB 554 - This measure would allow public universities to opt out of buying coverage from the state Tornado & Fire fund and allow them to access coverage in the private market. SB 188 - Sen. Wise - This appears to be an omnibus PBM reform bill that would mandate pharmacists dispensing fees in statute, restrict mail order pharmacy, and mandate changes to pharmacy networks. The LRC's financial analysis is not available yet. HB 190 - Rep. Sharp - This would prohibit or restrict incentives for the use of mail order pharmacy in a group health insurance plan. The LRC's financial analysis says this will increase premiums by as much as $2.55 per member per month.
Connect with Big I Kenyucky President/CEO Tara Purvis at tpurvis@bigiky.org for feedback.
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| Now is a good reminder to review the Big I bill list!!! In order to help us all stay vigilant and on alert for legislation that could impact Big I members, your bill list is updated nightly and can be accessed 24/7 via this link, which you can bookmark and review at any time! As we near the midpoint of the 2024 regular session…its time to take stock. It is likely that after the week ahead, every insurance industry-related bill that we have been tracking so far this session will be out of its first committee. Due in part to the Senate B&I committee holding its first meeting of the session on Tuesday at Noon to hear three bills, and House B&I is expected to meet on Wednesday at Noon and hear as many as four bills. Below is a quick update on those bills, as well as a look at new filings. Newly Filed Bills HB 498 - DOI Accreditation - Rep. Pollock filed the DOI's financial standards legislation needed to maintain their NAIC accreditation. Could be heard in House B&I on Wednesday. Please review. HB 470 - Home Solicitation Sales - Rep. Duvall filed HB 470 which exempts products regulated by the DOI from the home solicitation sales regulations. Please review. HB 474 - ESG Disclosure - Rep. Sharp filed this legislation that requires a disclosure by investment advisers if the investments being offered follow an ESG policy. Please Review. Bills of Note HB 371 - Mine Subsidence Insurance - Rep. Wade Williams' bill was to give the DOI the authority to adjust mine subsidence coverage to meet increased construction costs. Passed the House on Tuesday and is awaiting Senate committee assignment. HB 256 - Fortified Roof Incentives - Has been recommitted to the House Appropriations & Revenue Committee due to the $5 million appropriation for the grant program. SB 29 - Glass Bill - The bill is scheduled to be heard in the Senate B&I committee on Feb. 13. A committee substitute will be presented that is the result of negotiations with glass companies, the plaintiff's attorneys, and the auto manufacturers. HB 280 - Delivery Network Companies - Rep. Pollock's NCOIL model insurance requirements for delivery network companies passed from House Banking & Insurance on Wednesday with an HCS. Is posted for passage in the House Orders on Monday. SB 148 - Litigation Funding - Sen. Wheeler's bill to authorize and regulate litigation funding was assigned to Senate B&I this week. This was a little surprising as these bills have typically been assigned to the Judiciary Committee. SB 158 - Minor Settlements - Sen. Gridler's bill to clarify the processes for opening accounts in claim settlements involving minors is set for a hearing on Tuesday in Senate B&I. HB 401 - Rep. Pollock, to legislatively reverse a KY Supreme Court ruling and allow out-of-state physicians to review workers' compensation medical records was reported by House Economic Development and is posted for House passage. Pharmacy Bills for Review It appears that there is going to be a robust discussion of pharmacy-related health insurance issues over the last half of the 2024 session. Because some Big I members sell employee benefits, some of these bills may directly impact your employer-customers. We have engaged to oppose similar bills in the past, so we would ask you to review these bills and let us know how we should engage: SB 188 - Sen. Wise - This appears to be an omnibus PBM reform bill that would mandate pharmacists dispensing fees in statute, restrict mail order pharmacy, and mandate changes to pharmacy networks. The LRC's financial analysis is not available yet. Please review SB 149 - Sen. Meredith - This would force all pharmacy rebates derived in a group health insurance plan to be applied at the point of sale, providing that rebate to the consumer getting the drug. This would prohibit the rebate from being used to reduce group health premiums as is commonly done today. The LRC's financial analysis says this will increase premiums as much as $20.08 per member/per month. Please review HB 190 - Rep. Sharp - This would prohibit or restrict incentives for the use of mail order pharmacy in a group health insurance plan. The LRC's financial analysis says this will increase premiums as much as $2.55 per member per month. Please review
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| UPDATE – URGENT NOTICE on United Home Insurance Company Business Liquidation Date: February 2, 2024 From the Kentucky Department of Insurance This message is sent to notify all formerly appointed agents of United Home Insurance Company (UHIC) that all insurance policies have now been cancelled, effective December 18, 2023, pursuant to the liquidation order entered by the Arkansas Circuit Court on November 16, 2023. NO FURTHER PREMIUM should have been received from policyholders after December 18, 2023. Agents should have contacted all policyholders regarding the upcoming cancellation and provided replacement coverage before 12/18/2023. All policies in-force, renewed, or cancelled between the Liquidation Order issued on September 6, 2023, and the final, effective date of cancellation on December 18, 2023, are valid policies authorized by the Arkansas Receivership of United Home. Accordingly, the Kentucky Insurance Guaranty Association (KIGA) has the authority to pay the existing claims and return unearned premiums for all policies through December 18, 2023. If agents are aware of any policyholders who were initially denied benefit or unearned premium claims, agents are advised to contact the policyholders and KIGA directly to ensure the claims are reprocessed. On September 18, 2023, the Commissioner of the Kentucky Department of Insurance issued an order suspending the Certificate of Authority for UHIC in Kentucky. This action has resulted in the automatic suspension of all agent appointments for UHIC in Kentucky, except for the purpose of renewing and servicing existing in-force policies. The suspension order will be effective for one year from the effective date of the September 18, 2023. At the end of the initial suspension period, the Commissioner of the Kentucky Department of Insurance may issue an additional suspension order or a revocation order, depending on UHIC's status in the liquidation process. If you have questions about the liquidation process, please contact United Home at 800-467-0723 or Deputy Receiver/Liquidator Michael Surguine at 501-371-2776 or michael.surguine@Arkansas.gov. If you have any questions regarding the claims process with the Kentucky Guaranty Fund, please contact the fund by phone at 502-327-0819 or via mail at: Kentucky Insurance Guaranty Association 327 Townepark Circle Suite 100 Louisville, KY 40243
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| Much of the activity on bills of interest to Big I thus far this session has been in the background. With sponsors and interest groups working through bill language to get things ready prior to bills moving through the legislative process. Some of that work will start to show in the week ahead as we see various bills begin to move through the process. Below we have highlighted what is likely to move next week, new bill introductions, and bills still waiting to get out of the starter's blocks.
Week Ahead The Senate Banking & Insurance Committee will not meet next week, but we do expect the House committee to meet. Here is what we expect to move in the process next week: HB 256 - KY Safer Homes Act (Fortified Bill) - Will be up for hearing in House B&I on Wednesday. HB 155 - This bill is likely to be considered on the House floor next week and says that a spouse who is convicted of committing a felony against the other spouse is not entitled to claim retirement or whole life insurance as marital property. HB 179 - The House is likely to consider this bill sponsored by Rep. Heavrin on the House floor this week. The KY Chamber supports this legislation that authorizes life and health insurers to transact disability income and paid family leave insurance. Newly Filed Bills A few new introductions to review: - Rep. Wade Williams filed HB 371, providing additional authority for the mine subsidence program for the maximum insured value per structure to the DOI. The draft also increases the maximum amount of living expenses. - HB 356, filed by Rep. Amy Neighbors, allows nonprofit fire departments to increase the fees charged when responding to fires or other emergencies at properties that are not subscribers. This topic is also contained in SB 107, which passed from the Senate Transportation Committee with a committee substitute last week that also contained increased penalties for wrecker services. - SB 139 - This is leftover from the 2023 session when the bill passed the House and Senate but was vetoed by the Governor. It deals with an exemption from registration for certain investment advisers. No Movement These bills have yet to move in the process: HB 280 - NCOIL model insurance requirements for delivery network companies. Conversations continue between the DNCs and the plaintiff's attorneys over independent contractor language. SB 104 - Would require dog owners or property owners to provide notice of insurance coverage to dog bite claimants. SB 29 - Glass Bill - The auto manufacturers and Safelite are debating some amendments. The sponsor cannot be in committee on Feb. 6, so the bill is not likely to be heard until Feb. 13.
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| With Rep. Pollock filing two of the high-profile insurance bills for the 2024 Session this week, it is safe to say that the slow pace we have seen over the first three weeks of the session is likely to change. Rep. Pollock filed a pair of bills this week that could be in committee as early as Wednesday: HB 256 - FORTIFIED Roof Incentives - The bill would create and fund the Strengthen Kentucky Homes grant program to help defray a portion of the cost of putting on a FORTIFIED roof, require a premium discount if a homeowner has a FORTIFIED roof, and require the offering of an endorsement for a homeowner to replace their roof with a FORTIFIED roof if it needs replacement. HB 280 - NCOIL Delivery Network Companies Model - This would provide insurance requirements for delivery network companies and delivery network drivers. Committee Activity Neither the House nor Senate Banking & Insurance Committee met last week, but we do expect the House committee to meet this Wednesday. Other Bills On Our Radar Remove Agent Pre-Licensing - The ACLI had indicated their interest in running a bill to remove agent pre-licensing requirements. However, Big I OPPOSES the legislation, and it is unlikely to be considered in this session. Mine Subsidence Limits - Rep. Wade Williams has a bill draft to raise the mine subsidence coverage limits, and after consultation with the program administrator, is looking to change the bill to provide the administrator the flexibility to establish the coverage limits by regulation. We expect the bill to be filed next week, and Big I will SUPPORT this legislation. HB 155 - This bill is on the House floor and says that a spouse who is convicted of committing a felony against the other spouse is not entitled to claim retirement or life insurance as marital property. There are several floor amendments. SB 104 - Would require dog owners or property owners to provide notice of insurance coverage to dog bite claimants. This bill has been sent to the Senate Banking & Insurance Committee. SB 107 - A housekeeping bill that amends several transportation-related statutes. The two provisions that you need to review are the increase in fire subscription service charges to nonmembers and the increase in penalties for wrecker services. SB 29 - Glass Bill - The auto manufacturers and Safelite are debating some amendments related to the customer notice section. Let us know if they are problematic.
Keep up-to-date with Big I Kentucky's presence in Frankfort during the 2024 General Session in our weekly emailed Legislative Bulletin.
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| While growing and selling new business is important, an agent must stay in touch with existing policy holders throughout their policy term. Agencies may send holiday or birthday cards, newsletters or testimonial requests, to clients to stay connected and build a stronger relationship. However, the greatest value from a client touchpoint can result from a pre-renewal email. There are various benefits to a pre-renewal email–let's dive into how a pre-renewal email can create value. Mitigating E&O Risk Agents can help reduce their E&O exposure by asking the client in a pre-renewal email if they have any changes in their exposure that may impact their insurance. It's important to offer examples to remind the client of the variety of changes that could impact their insurance including adding or deleting drivers, improvements or acquisition of property, new ATV/snowmobile, etc. By proactively asking about changes in exposure, an agent allows the client to update the carrier on any changes they have. The agent can also document their attempts to update the client's exposure information. A strong defense against a future E&O claim, regardless of whether the client responds. Creates a Smooth and Standardized Renewal Experience After establishing a standard renewal process, agents can have at least one touchpoint with each policy holder before their renewal date. If the insured is looking to add coverage or shop their coverage, proactively reaching out with a pre-renewal touchpoint gives an agent enough time to maintain a smooth renewal without the time crunch. In addition, this touchpoint is from the agent/agency and not the carrier. Suppose an insured decides to shop their insurance at renewal. In that case, a separate touchpoint can help the insured realize they have options with other carriers but can stay with the same independent agent. There are a variety of other benefits including, but not limited to, cross-selling and upselling opportunities, improved retention by showing the agency is thinking about their clients, time savings by reducing the likelihood of remarketing, and more. Now, you might think, “There is not enough time to reach out to every client at renewal. How can this be done?". Technology is the answer. There are a variety of email automation platforms that can automate pre-renewal and renewal emails and even integrate with agency management systems. Some popular systems include: Agency Zoom, Levitate, Client Circle, Agency Revolution and Applied Marketing Automation. Looking for a sample pre-renewal letter? https://bit.ly/prerenewalemail If an agency is already sending out a pre-renewal email, make sure it does not say, “We will renew as is" or “We will renew with the same terms and conditions," as this could cause an issue in the event the carrier changes the coverage, terms or conditions in the renewal policy. Instead, an agency could say, “If we do not hear from you within [xx] days, we will proceed with your renewal with the information we have on file.' If you are looking for additional guidance on creating standardized processes for renewals, please feel free to reach out to the experienced team at Virtual Agency Solutions. We aim to help agencies mitigate E&O risk by creating consistent processes, enhancing the customer experience, and driving efficiency throughout the organization. Evan Leitch Swiss Re Approved Auditor Virtual Agency Solutions/Independent Insurance Agents of Wisconsin
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