Industry News Update

Governor Says Sick Leave Proposal Must Be Defeated
Finally joining PIA and other employer representatives, Gov. Ted Strickland and Lt. Gov. Lee Fisher recently announced they are opposed to Issue 4, the mandated sick leave proposal. Saying the proposed state law is “unworkable, unwieldy and would be detrimental to Ohio's economy”, they also asked Ohioans to oppose it, as well. Their opposition comes following the governor’s unsuccessful efforts to broker a compromise between proponents and the business community on the issue to keep the issue off the ballot. Activists who believe Ohio employers should be required to offer seven paid sick leave days - with little to no ability to structure paid time off benefits according to what best fits production and service needs - filed the issue with the Secretary of State on August 5.

The proposal calls for employers with 25 or more employees to provide seven days of paid sick leave per year for full-time employees. The proposal counts 30 hours per week as full-time, which sets a costly precedent for employers. Currently, employers are not required to offer paid sick time under federal or state laws. This proposal would not only mandate seven days, but may also allow employees to carry over up to seven days of sick time per year. Employees would only be required to provide their employer with medical documentation regarding their absence after three consecutive days of absence, creating an opportunity for the leave to be abused. Employees could take leave in amounts as small as an hour or less, and in practice could do so with little or no notice, disrupting workplaces that depend on a critical mix of staffing.

The measure will gut long-standing benefit packages that have been worked out cooperatively between employers and employees. For example, employers who now offer paid-time-off benefits – leave that can be taken for any reason – will be forced to allot some of those days to paid sick leave, reducing the number of discretionary leave days that could be taken for things such as vacation or personal matters.

While employers in the short term will need to shuffle benefit packages to pay for this mandate, the long-term result will be increased costs of goods and services.

A coalition of business groups called Ohioans to Protect Jobs and Fair Benefits is leading the effort to oppose the measure. The coalition includes PIA, the Ohio Council of Retail Merchants, Ohio Chamber of Commerce, Ohio Manufacturers’ Association, National Federation of Independent Business, Ohio Restaurant Association, Ohio Home Builders Association and Ohio Farm Bureau, among others. The group has formed a political action committee to fund a media effort to defeat the measure. A Web site, www.saveourjobsandbenefits.com, was recently established to provide more information on the proposal.

Earlier this year, PIA’s board of directors voted to formally oppose the sick leave proposal, which if enacted, would be detrimental to PIA members and Ohio’s entire business community – negatively impacting Ohio’s already struggling economy by discouraging new employers from locating businesses within the state and encouraging companies already here to look for less expensive states to operate in.

It is important to educate your family and peers about the ramifications of this proposal if passed. No other state in the country requires employers to offer paid sick leave. While the proposal sounds appealing, it will ultimately result in employers being forced to make difficult decisions to meet the requirements of the proposal, such as modifying other benefits already offered (such as health insurance) or making staff cuts. Additionally, if the issue passes, it will open up the door for more government mandates and interference.

For more information about this issue, contact PIA’s Public Affairs Team at (800) 555-1742 or by e-mail at publicaffairs@ohiopia.com.

Back to top



Reminder: PIA’s Publications Available Online
Did you know that PIA’s publications are available on our Web site, www.ohiopia.com? In fact, we have a Web page dedicated solely to our publications. Not only can you find articles from the latest editions of Professional Insurance Agents magazine, ProAction newsletter, PIA Connection magazine and Quick Update electronic newsletter, but you can also find archived issues of ProAction and articles from Professional Insurance Agents. To visit PIA's publications Web page, click here. To view archived issues of PIA’s monthly magazine and monthly newsletter you will need to use your member login and password. If you need assistance, please contact us at (800) 555-1742.

Back to top

Insurance Department Investigating Home Repair Contractors Suspected of Fraud
The Ohio Department of Insurance (ODI) recently announced they will be investigating home repair contractors believed to be committing insurance fraud, as well as exploring situations where it appears contractors are violating Ohio insurance laws. ODI is implementing new techniques to detect and investigate situations where it is believed home repair contractors have committed insurance fraud. The department further plans to take action against home repair contractors who, on a consumer’s behalf, assist in the negotiation or settlement of a personal property claim.

As part of ODI’s initiative, companies and organizations in the home repair industry will be provided with information about Ohio’s Public Adjuster statutes.

Educational information about this initiative (for consumers and contractors) is available on ODI’s Web site in their Avoiding Home Improvement Scams Online Toolkit. Click here to view this information.

ODI’s Fraud and Enforcement Division can be contacted at (800) 686-1522 if it is suspected a general contractor has committed fraud.

Back to top


Ohio Creates New Director of Insurance and Financial Development
State Representative Jim Raussen (R-Springdale) was recently appointed by the Ohio Department of Development as Ohio’s new director of insurance and financial development. This new position is responsible for creating and implementing policy for growing and strengthening Ohio insurance companies and financial institutions.

As director of insurance and financial development, Raussen will collaborate with Ohio’s university system, the Ohio Department of Insurance (ODI) and the Ohio Department of Commerce on workforce development efforts for Ohio’s insurance and financial industries. He is also charged with developing and implementing a strategic plan to grow and retain insurance companies within Ohio, as well as developing a strong workforce to support this expansion. He will report directly to Lieutenant Gov. Lee Fisher and will also provide updates and information to ODI.

Raussen, 37, was a member of the State Legislature since 2003 and served on the House Insurance, Health, Public Utilities and Economic Development committees during his tenure, and was chairman of the House Health Care Access and Affordability Committee.

He has more than 10 years experience in the property and casualty insurance industry with Progressive Insurance and American Financial Group. He also served two years as director of community relations for Rural/Metro, Inc., for Southwest Ohio and Northern Kentucky, and for four years as a township trustee.

PIA will be looking for opportunities to work with Raussen to address staffing and perpetuation concerns for agencies and carriers, as meeting the challenge for the industry not only affects all sectors of the industry, but will also require collaborative participation from industry, government and academia to really make a difference.

Back to top


Slight Changes to Home and Auto Insurance Rates in 2007
The average rates for the state’s top 10 auto insurers decreased for the third consecutive year, according to the Ohio Department of Insurance (ODI). The average rates for the state’s top 10 homeowners increased by 1.5 percent in 2007. Based on the most recent information available from the National Association of Insurance Commissioners (NAIC), auto insurance rates dropped $17.22 since 2006, taking the average auto expenditure down 2.6 percent to $645.09. Homeowners insurance averaged $535.10; a $7.91 increase from 2006 rates. From 2005-07, the average increase in homeowners insurance premiums was $4.10.

Ohio has the 13th lowest auto insurance and 6th lowest homeowners insurance average premiums in the country, according to the most recent figures from the NAIC.

Based on the rate activity thus far and industry data, ODI analysts expect the 2008 rate activity to differ from 2007. For auto insurance, the average rates will likely increase slightly, and for homeowners insurance, the average rates will likely increase in greater percentages similar to a few years ago.

Back to top


Have You Registered for the Agency Management and Profitability Conference (AMPC) Yet?
The 2008 Agency Management and Profitability Conference (AMPC) will be held October 2-3 at the Columbus Marriott Northwest. Don't miss this opportunity to network with colleagues, participate in top-notch education seminars, attend the Annual Business Meeting and Awards Ceremony--and more! This year's AMPC presenters include: Greg Arnold of Advanced Automation, Inc., Nancy Flynn of The ePolicy Institute and Edwin (Ed) L. Lamont, CIC, CRM of Lamont Consulting Group, Inc.

Even if you’re not able to join us for the entire AMPC, you can still attend the cocktail reception and Marketplace Exhibit Hall for just $20!

The cocktail reception begins at 5 p.m. followed by the Marketplace Exhibit Hall at 5:30 p.m. on Oct. 2 at the Columbus Marriott Northwest Hotel. Plan now to attend to connect with carriers, vendors, colleagues and other business partners.

Companies Exhibiting Include:

To view the AMPC agenda, download a registration form or to find out more information, click here.

For overnight accommodations, please contact Columbus Marriott Northwest at (800) 228-9290. Room reservations must be made by Sept. 10 to get the discounted room rate of $135. PIA cannot guarantee room availability after Sept. 10 and the price may go up after this date.

To request sponsorship and advertising information, e-mail Kelly@ohiopia.com.

Back to top


IMPACT Fundraising Critically Low In Important Election Year
PIA would like to thank those members who have contributed to IMPACT. To date, IMPACT has only raised about $17,000. At this point, we are $4,000 behind where we were at this time last year, a non-election year. It is up to you to make the decision to help PIA in its efforts to support qualified candidates. If only one person in each agency gave $20 to IMPACT, PIA could easily surpass our fundraising goal of $25,000. That is all it would take. Remember, the candidates who win are going to make changes to policies that may affect your livelihood and personal economics. Please help us elect those who will be best for you and the industry. It is especially crucial that PIA offers financial support to candidates who can help improve Ohio's economy - a necessary ingredient for agency growth to transpire and flourish.