PIA of Ohio, Inc.: QuickUpdate

In this issue:

Industry News Update
Supreme Court Gives Opponents of Senate Bill 117 Opportunity for Referendum; If Successful, Restoration of Insurance Companies’ Attorney-Client Privileges May Be Lost
Changes to New York’s Workers’ Comp Requirements May Affect Ohio Agents
PIA’s Company Relations Committee Visits Westfield Companies
Ohio Attorney General Marc Dann Files Lawsuit Against Several Insurers
Florida’s No-Fault Auto Insurance Law Set to Expire; Members Who Write Business in Florida May Be Affected
Ohio Casualty Merger Completed
IMPACT Contributors Will Be Recognized at PIA’s Annual Conference

Featured Benefits
PIA Members Have Access to a Variety of Insurance Plans Available through UNUM Life Insurance Company of America
Agency Ideas

Education Update
Do You Need to Know How Many CE Hours You Have?
Reality CE Schedule
CIC Schedule
CISR Schedule

Industry News Update

Supreme Court Gives Opponents of Senate Bill 117 Opportunity for Referendum; If Successful, Restoration of Insurance Companies’ Attorney-Client Privileges May Be Lost
Last month, the Ohio Supreme Court ruled in a 5-2 decision that Gov. Strickland had no authority to veto Senate Bill 117, the controversial lead paint liability measure which clarifies that cities can only bring actions against manufacturers of products, including those who made lead pigment paint, under the state’s products liability statutes, and allows non-economic damages to be awarded under the Consumer Sales Practices Act (CSPA), but caps them at $5,000. In addition, the bill also included language important to the insurance industry that addresses the Ohio Supreme Court ruling in 2001’s Boone v. Vanliner to allow all claims file materials created prior to the denial of coverage to be discoverable in a bad-faith claims case.

In a twist of events following their decision to overturn Gov. Strickland’s veto, the Supreme Court has decided to give opponents of Senate Bill 117 approximately two months to attempt to challenge the measure in a referendum. In a 4-3 opinion, justices said that voters have 90 days from Aug. 1 to pursue the ballot challenge by filing petitions with Secretary of State Jennifer Brunner. Aug. 1 was the date the court issued its decision striking down the governor’s veto of the bill. In response, a coalition of consumer advocates delivered an initial petition filing last Friday of about 1,800 signatures to the Secretary of State’s Office, who will verify the initial filing contains at least 1,000 valid signatures. If the coalition then successfully collects the required six percent of the total vote cast during the last gubernatorial election (241,366 signatures), the issue will be placed on the November 2008 ballot, however, until the coalition files the second round of petitions, the law remains in effect.

If successful, the referendum challenge could once again jeopardize the language contained in Senate Bill 117 which overturned the detrimental decision by the high court in 2001’s Boone v. Vanliner and restored insurance companies’ attorney-client privileges.

PIA will provide more information on the status of the referendum challenge as it becomes available.
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Changes to New York’s Workers’ Comp Requirements May Affect Ohio Agents
As mentioned in last month’s Quick Update, the state of New York recently made changes to their workers’ comp law, which could affect PIA members who offer workers’ comp to their clients. Beginning on Sept. 9, New York’s workers' compensation law now requires all out-of-state employers with employees working in New York to carry a full, statutory New York State (NYS) workers’ compensation insurance policy. An employer has a full, statutory NYS workers' compensation insurance policy when New York is listed in Item 3A on the Information Page of the employer's workers' compensation insurance policy.

Information about this change can be found on the NYS Workers' Compensation Board’s Web site here and also on PIA of Connecticut’s Web site here. To assist you with this change, PIA of Connecticut (PIACT) has also created a sample letter that you may use to notify your clients about this change, available here.

Members with questions regarding this new requirement should contact the NYS Workers’ Compensation Board's Bureau of Compliance at (866) 298-7830.
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PIA’s Company Relations Committee Visits Westfield Companies
Members of PIA’s Company Relations Committee met with senior-level executives from Westfield Companies to discuss the top issues concerning member agents. As mentioned in prior issues of Quick Update, PIA’s Company Relations Committee is conducting visits with carriers to enable members to express their concerns with company senior management and to get their view of the market. Committee chairman Terry Kelso and members of the committee met with Westfield’s Senior Executive of Property and Casualty Kent Daugherty, Senior Executives of Marketing Dave Critchfield and Pat Schiesswohl and Executive of Marketing Beth Wengerd.

During the meeting, Westfield’s leaders indicated they are focused on automation and service centers as part of their strategy to increase the company’s growth. Subsequently, an internal team has been investigating service centers and studying the competition. Centers that are developed are located geographically in order to provide services to agents.

A top issue for agents that has come up at several carrier visits, including this one, is marketing and field support. Westfield began adding more specialized individuals to the areas of marketing and field support a few years ago. The company does approach the commercial markets traditionally, with mid-markets receiving a lot of attention. Each state has its own sales manager and a shift from their past routine has occurred, with a minimum of one visit every two weeks now. Technical support is also available in the field. Westfield Estates, a new marketing program, was rolled out in March.

The professionalism of the PIA Insurance Company Satisfaction Survey is very much appreciated by Westfield, as demonstrated by their efforts to address areas of performance that do not meet the Westfield standard. For the first time in three years, Westfield conducted their own survey countrywide, soliciting 7,000 agents. According to Westfield, consistency and communication are keys to agents in this area.

PIA will continue to keep you updated as these meetings continue throughout the year.
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Ohio Attorney General Marc Dann Files Lawsuit Against Several Insurers
A lawsuit was recently filed in Cuyahoga County Common Pleas Court against insurance broker Marsh & McLennan by Ohio Attorney General Marc Dann. The lawsuit alleges that Marsh violated antitrust laws by planning a scheme that involved four major insurers offering customers fictitious “B quotes” to create the false impression that competitive bidding had produced the best possible price when no competitive bidding had actually taken place. The insurers named in the suit are American International Group, Inc., ACE Ltd., The Chubb Corporation and The Hartford Financial Services Group, Inc. The lawsuit asks the court to order the parties to not engage in such activity in the future and to return the money generated by the overcharges. The suit also asks the court to assess monetary damages.
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Florida’s No-Fault Auto Insurance Law Set to Expire; Members Who Write Business in Florida May Be Affected
It appears that Florida’s no-fault auto insurance law may expire on Oct. 1, despite the attempts of several groups who have been lobbying the state Legislature to enact an extension or a substitute for the law. Groups in favor of the law had requested the Legislature consider the issue during a special session scheduled for Sept. 18 that was to deal with the Florida state budget. However, the state’s legislative leadership recently announced that the special session would not be held on Sept. 18 because “the common denominator for productive special sessions is an initial agreement on a framework for action” and “while there has been tremendous progress, there is still work to be done.”

In response to the announcement of the postponed special session, two hospital groups gave Florida Gov. Charlie Crist a letter arguing that the looming expiration of the no-fault law qualifies as a topic for the special legislative session on the budget because of the financial impact involved.

According to Mark O’Connell, CEO of PIA of Florida, they have been working on the issue since before the regular legislative session began. O’Connell said that, “It is unfortunate that PIP [personal injury protection] may be allowed to go away without addressing any of its shortfalls, and as a result, the welfare of Florida drivers will be in serious jeopardy as they get caught between the proverbial rock and a legislative impasse." PIA of Florida believes that mass confusion will occur if the law expires and a tort system will in effect be created.

Some groups would like the no-fault law to expire because they believe it is fraud-riddled.

If no-fault does expire, drivers will no longer be required to carry personal injury protection, but will have to carry property damage liability coverage. Florida would be the only state without a requirement for bodily injury liability coverage.

PIA will provide more information on the status of the no-fault law as it becomes available.
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Ohio Casualty Merger Completed
Liberty Mutual Group’s acquisition of Ohio Casualty Corporation was finalized effective Aug. 24. The companies jointly announced on May 7 that they had entered into a definitive agreement. Their boards of directors, Ohio Casualty’s shareholders and the departments of insurance for the states of Ohio and Indiana had previously approved the transaction. Ohio Casualty is now a regional company within Liberty Mutual Group’s Agency Markets business unit with an operating territory that includes Delaware, Kentucky, Maryland, Ohio, Pennsylvania, Virginia, Washington D.C. and West Virginia. The specialty lines operations of Liberty Mutual Agency Markets and Ohio Casualty will be combined into the Specialty Products Group that will include surety, fidelity Bonds, excess casualty and umbrella. Following the acquisition, a realignment of geographic regions covered by Liberty Mutual Group’s Agency Markets companies has also occurred.
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IMPACT Contributors Will Be Recognized at PIA’s Annual Conference
With the first half of the year gone and several months remaining, IMPACT has made outstanding progress toward reaching its overall fundraising goal of $23,000. So far, IMPACT has had a very successful year with $22,005 raised.

Please help us reach our goal prior to this year’s annual conference next month. This year, PIA will recognize IMPACT contributors at its 2007 PIA of Ohio Agency Management and Profitability Conference (AMPC) on Oct. 4-5 in Columbus. If you have not made your contribution yet to IMPACT and would like to be recognized at AMPC, you can make your contribution online with a personal credit card by clicking here or you can call Carolyn Mowrey at (800) 555-1742 to make your contribution over the phone. Please remember that corporate contributions are prohibited by law.

This year’s AMPC will show you how to increase your agency’s efficiency and profitability through new technology and strategies. This year’s Annual Business Meeting will also feature Insurance Director Mary Jo Hudson, who will speak about her department’s regulatory priorities and initiatives affecting agents. The Annual Business Meeting will take place on Thursday, Oct. 4 from 11 a.m. – 12:30 p.m.
For more information about the AMPC, visit the links below.

AMPC brochure
AMPC registration form

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Featured Benefits

PIA Members Have Access to a Variety of Insurance Plans Available through UNUM Life Insurance Company of America

Term Life Insurance
Help provide for your family if the unthinkable should occur. The Basic Term Life Program offers coverage up to $50,000 with no medical underwriting when the employer pays 100 percent of premium and all employees are enrolled. Through the Voluntary Term Life Plan, PIA members and their employees can choose flexible face amounts of up to $300,000. Dependent coverage amounts are available up to $100,000 for spouses and $3,000 for children. The Voluntary Term Life Plan and the Dependent Term Life Plan are underwritten by Unimerica Insurance Company.
Short Term Disability
This plan can help replace up to 75 percent of your income for up to 30 months if you are unable to perform the material and substantial duties of your occupation. You may choose up to $1,500 per month.
Long Term Disability
(NOT MEDICALLY UNDERWRITTEN)
Consider how you would manage if a long-term disability reduced your earning power. If you become disabled this plan can help replace up to 60 percent of your lost income on the base plan and up to 100 percent in the event of a catastrophic disability. The base plan offers monthly benefit amounts from $200 to $8,000. The optional catastrophic disability plan can provide up to $3,200 per month. There is no medical underwriting, however, disability income benefits are subject to a pre-existing condition limitation.
Need Coverage During a Hospital Stay?
If you are in the hospital, PIA’s Hospital Indemnity Insurance Plan provides excellent protection up to $200 a day for employers, employees and their spouses and dependent children for coverage up to 500 days.
Business Overhead Expense
Business Overhead Expense is an important element in an individual’s disability insurance plan. BOE insurance helps keep your business active in the event you become disabled. It provides up to $10,000 in monthly benefits to help keep your operation in business. This program is underwritten by Unimerica Insurance Company.

To get started with any of these products, contact the plan administrator at (800) 336-4759 or visit their Web site at www.piatrust.com.

These benefits are offered through The Ohio PIA Service Corporation, a wholly-owned subsidiary of Professional Insurance Agents Association of Ohio, Inc.
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Agency Ideas
PIA members save on sales tools to grow their agencies.

Save 20 percent on a one year subscription to Agency Ideas (R) sales and marketing newsletter. Each issue contains ideas for effective prospecting, cross-selling and closing for personal and commercial accounts. Regular price for six issues is $108. PIA members pay only $86.
Save 25 percent on Cross-Sell Flip Charts (TM) for CSRs. Learn how to convert incoming calls into profitable sales. Regular price is $20 per chart. PIA members pay only $15 per chart.
Save $20 on the complete Personal Lines CSR Cross-Sell Program (TM). This package includes a 24-page Manager's Guidebook, Personal Lines Flip-Charts and Cross-Sell Calculator (TM) CD software. Regular price is $199. PIA members pay only $179.
Save on powerful producer software. Use Producer P&L (TM) to determine P&C agent compensation and bottom line profitability. Regular price is $149. PIA members pay only $129. Use Set & Track (TM) to establish and monitor prospecting and sales goals. Regular price is $249. PIA members pay only $229.

More great products are available at a discount to PIA members. To learn more, download the Agency Ideas catalog and order form. You can also place an order by calling (800) 724-1435 or by visiting www.agencyideas.com.

This benefit is offered through The Ohio PIA Service Corporation, a wholly-owned subsidiary of Professional Insurance Agents Association of Ohio, Inc.
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Education Update

Do You Need to Know How Many CE Hours You Have?
PIA has received several phone calls lately from agents inquiring about their CE hours. The links below may assist you in determining the number of CE hours you currently have.

The link below is to Sircon’s Web site. To find your current CE hours, click on the first option, Continuing Education Transcript Inquiry.
https://www.sircon.com/ComplianceExpress/NonSscrbEducation/index.jsp?nonSscrb=Y

If you do not know your license number, the link below for the Ohio Department of Insurance may assist you. Once you know your license number, you can use the above link for Sircon’s Web site to help you determine the current number of CE hours you have.
http://www.ohioinsurance.gov/ConsumServ/Ocs/agentloc.asp

If you need further instructions or assistance in obtaining your CE hours, please contact PIA at (800) 555-1742.
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Upcoming Reality CE Classes

Commercial Lines: Separating Fact from Fiction
This seminar will analyze coverage issues encountered when writing commercial property, business income, business auto and CGL coverages and endorsements.

About the instructor:
Keith Wilts, CIC, CPCU, a nationally-known instructor, conducts more than 160 training classes across the United States every year. He is a member of the National Faculty for the Society of Certified Insurance Counselors and is on the National Faculty for Advanced Coverage Seminars.
“Mr. Wilts was entertaining and very knowledgeable. I appreciated his sense of humor in a very technical subject.” - February Reality CE Commercial Lines attendee

Cleveland
October 23

Registration Fee:$99 PIA member/$109 non-member
CE Credit:Six hours (exam not required for CE credit)

To register online, click on the class date above.
To download a registration form, click here.

Identity Theft Endorsement: Who Stole Your Client’s Identity?
Are you looking for another way to add value for your clients? Identity theft is the fastest growing crime in the United States. If you or your clients become victims, it could take years to rebuild your credit. This Reality CE seminar will discuss what you, as an independent agent, need to know about identity theft, including the history and laws, as well as insurance issues and steps to minimize exposure and losses. Find the solutions for your clients and how to make a recovery when you or your clients have been victimized.

Columbus
October 30

Registration Fee:$79 member/$99 non-member
CE Credit: Four hours (exam not required for CE credit)
Level: Intermediate-level course

To register online, click on the class date above.
To download a registration form, click here.

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Upcoming CIC Classes

Cleveland
Commercial Casualty
October 24-26 - CLASS IS FULL

Cincinnati
Personal Lines
November 14-16

Registration Fee:$390 per person for regular institutes (add $20 if you need OH CE)
CE Credit: 20 hours for each institute (exam not required for CE credit)
Level:Advanced-level course

To register online, click on the class date above.
To download a registration form, click here.

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Upcoming CISR Classes

Cleveland
Personal Auto
September 20

Toledo
Agency Operations**
September 25

Dayton
Agency Operations**
October 4

Columbus
Personal Auto
October 16

Cincinnati
Advanced Learning*
October 23

Registration Fee:$155 per person (add $8 if you need OH CE)
CE Credit: Eight hours for each class (exam not required for CE credit)
Level: Intermediate-level course

*William T. Hold Advanced Learning Seminars are for CISR designation holders only.
** Approved for E&O credit. Contact PIA at (800) 555-1742 for details.

To register online, click on the class date above.
To download a registration form, click here.