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INSIDE Meet PIA National Executive Vice President Mike Becker » 7 Special Report: Small Business & Insurance » 12 Scary Thought: The Person Generating a Text also Liable for a Collision? » 17 PIA NE IA 2018 Conference » 24 Your Clients & Words & Phrases » 31

July 2018 | Published Monthly

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9-A-2026 Ed. 10-15

Did you know that PIA’s company council, The PIA Partnership, has conducted nationwide research about the insurance buying preferences of small business owners? The research is encouraging because it found that small business owners strongly prefer independent insurance agents as they make choices in today’s online world. However, the results also serve as a wake-up call that agents must take steps to continue to demonstrate their value and also be more engaged online. PIA and the companies belonging to The PIA Partnership have created a public website that helps agents understand PIA’s findings. PIA members also have access to a private website containing a series of strategies and tools to help them stay ahead of online competition in commercial lines. To access the newest PIA Partnership project, Small Business Insurance & The Internet — The Voice of the Commercial Lines Customer, visit us at www.pianet.com/voiceoftheclcustomer. If you are not a PIA member and want to access all of the tools available through this program, contact us for a membership application or visit us online at www.pianet.com/joinpia.

National Association of Professional Insurance Agents 400 N. Washington St., Alexandria, VA 22314-2353 www.pianet.com | membership@pianet.org | (703) 836-9340

Meet PIA National Executive Vice President Mike Becker | 7 That PIA National renewed the contract of Executive Vice President Mike Becker is not surprising. Tax Reform: More on the Way | 7 The tax reforms passed late last year in the Tax Cuts and Jobs Act are not enough, so the White House is going to push for more reforms by the end of summer. Employee Retention, Benefits & Job Satisfaction | 8 Employee retention, employee benefits and job satisfaction are linked. Senate Passes Farm Bill: PIA National Happy | 9 The National Association of Professional Insurance Agents (PIA) has praised the U.S. Senate’s passage of the Agriculture Improvement Act of 2018. Special Report: Small Business & Insurance | 12 The business of small business insurance is no mystery. Small businesses need insurance as badly — and in some cases more badly — than larger businesses and corporations. House Looks at Small Business Cyber Protection | 14 The U.S. House of Representatives has passed a bill — which will now go to the Senate — to help small businesses do battle against hackers.

or more — either backed or generated by trial lawyers. Insurance lobbyists dread dealing with them and the bills they support. The Value of Insurance to the Economy | 18 Once in a while, Weekly Industry News will share an article we find valuable to you — our members. Flood Insurance: We’re Still Waiting | 22 PIA National wants a solid flood insurance program in place. Your Clients & Words & Phrases | 31 Chubb wants to help you get more business. The world’s largest publicly traded P&C insurer says some words work for your clients and some don’t.

PIA NE IA EVENTS PIA NE IA 2018 Conference | 24 Professional Insurance Agents NE IA and The National Alliance Nebraska and Iowa CIC & CISR Designation | 29 Greater Metro Omaha Commitees Annual Scholarship Golf Outing | 30 Upcoming Events Calendar 2018 | 32

TOP STORIES

MEET PIA NATIONAL EXECUTIVE VICE PRESIDENT

MIKE BECKER

TAX REFORM MORE ON THE WAY The tax reforms passed late last year in the Tax Cuts and Jobs Act are not enough, so the White House is going to push for more reforms by the end of summer. Marc Short is the White House Director of Legislative Affairs. His team is working with House Ways and Means Committee Chairman Rep. Kevin Brady of Texas and with members of the Senate Finance Committee.

That PIA National renewed the contract of Executive Vice President Mike Becker is not surprising. He will head the organization until 2020. That’s not surprising. What is unusual is Becker’s age. He’s just 36. In an industry that is “old” by terms associated with most industries, that makes Becker an anomaly. There’s a lot more to love about your leader. It’s all in a nice story done by National Underwriter and posted on the publication’s website. It’s a fascinating article that includes gems about you — the PIA membership — that you will find most interesting. Here’s one: “What I have learned, I’ve learned from the first minute I was part of this organization — that the quality, the integrity, the compassion of our members and all those that make up this organization is at a level far superior to any other group of people I’ve ever interacted with.” There’s lots more. Check out a deep look at PIA National Executive V.P. Mike Becker by clicking here.

Extending the individual tax cuts and making them permanent is one of the goals. There are others but Short would not say what. Brady offered up a bit more information than Short. “There’s more that we’d like to do, and we’ll be unveiling that. We should never settle, but ask always how do we make our tax code more family friendly and pro-growth,” he said. That means — in addition to making the individual tax cuts permanent — finding ways to get families to save more money for retirement and to encourage businesses to innovate. Brady did not expand on what is being tossed around to encourage innovation in business or to get families to save. Source: The Hill

Source: PropertyCasualty360.com

July 2018 | Main Street Industry News | www.pianeia.com | 7

TOP STORIES

EMPLOYEE RETENTION, BENEFITS & JOB SATISFACTION

He noted 40% of respondents said they’d drop a wage increase to get an increase in work-life balance benefits. Close to 20% said they’d prefer more health benefits and would go for lower wages to get them. Health insurance continues to be the top cog in the wheel and 83% said it determines whether they’ll stay at a job or move on. Retirement savings is another critical component and 73% said it is a player in a decision whether to stay at a job or go to a new one. Fronstin said, “The challenge is how employers can continue to provide the strong employee benefits package that employees want and need, while still controlling the costs of these benefits, particularly healthcare.” He suggests that employers do more educating on how the benefits offered are beneficial. The study says just 52% understand the health benefits they are given and only 43% say they understand the non-health benefit package offered by their employer.

Employee retention, employee benefits and job satisfaction are linked. The Employee Benefit Research Institute’s (ERBI) recent 2017 Health and Workplace Benefits Survey said 80% of employees surveyed ranked benefits satisfaction as extremely high or very high also ranked their job satisfaction as very or extremely high. Close to 66% of those surveyed who ranked benefits satisfaction as extremely or very high said their morale is either excellent or very good. ERBI spokesman Paul Fronstin said, “It is important for employers to understand that benefits continue to be valued by employees. Health insurance, retirement plans, dental, vision and life insurance continue to be highly important when making job change decisions.”

MORE FROM THE STUDY 31% say their employer or the benefits company provide no education or advice on benefits Just 39% say their employer gives them information that helps them understand their health benefits Only 24% say their employer tells them how a health savings account works And only 28% say their employer offers education on how their retirement plan works and how to invest money in that plan

Fronstin said, “As employers weigh the future of benefits, they should consider that health insurance consistently remains one of the top benefits that employees consider in assessing a job change, with retirement savings plan also viewed as a critical benefit.” Source: Employee Benefit News

July 2018 | Main Street Industry News | www.pianeia.com | 8

TOP STORIES

SENATE PASSES FARM BILL PIA NATIONAL HAPPY

The National Association of Professional Insurance Agents (PIA) has praised the U.S. Senate’s passage of the Agriculture Improvement Act of 2018. It’s S. 3042 and is more popularly known as the 2018 Farm Bill. The bill passed in bipartisan manner 86-11. Grassroots advocacy from PIA members across the country helped ensure that the harmful amendments to cut crop insurance through imposing an Adjusted Gross Income (AGI) limit or placing a premium assistance cap on producers were not brought to the Senate floor for a vote. The White House — however — does want a cap on producer premium assistance. Now it is onto the conference committee to iron out the differences between the two bills. How the premium cap holds up in the conference committee is anybody’s guess.

PIA National Vice President of Government Relations Jon Gentile said, “PIA applauds Senate Agriculture Chairman Pat Roberts (RKS) and Ranking Member Debbie Stabenow (DMI) for championing a Farm Bill that recognizes the importance of crop insurance and respects the vital role played by independent insurance agents in the delivery of the federal crop insurance program.” The Senate bill runs $867 billion over fiveyears and comes just a week after a similar bill squeaked through the house and was passed by just two votes. The main difference between the two bills is: • The food stamp program • Farm subsidy caps • Conservation initiatives Roberts and Stabenow spent months working on a bill that avoids past fights to pass a farm bill.

July 2018 | Main Street Industry News | www.pianeia.com | 9

TOP STORIES Their bill pretty much keeps the status quo with the exception of an amendment put in the bill by Sen. Chuck Grassley of Iowa that says commodity support payments will not be given to people who aren’t actually working on the farm day-to-day.

The White House did not endorse the Senate bill. It does — however — like the reduction of the commodity support limit from $900,000 to $700,000 and wants a means test applied to the federal crop insurance program and — as noted earlier — a cap to premium subsidies.

The controversy in the House bill — that no Democrat voted for which is why it passed by two votes — has to do with a mandate that puts more strict work requirements on five to seven million of the 40 million food stamp — Supplemental Nutrition Assistance Program (SNAP) — recipients.

Also, as noted earlier the PIA opposes the cap.

The SNAP program accounts for over 75% of the farm bill’s spending. As the House bill stands some 400,000 recipients would lose their food stamps immediately. The Congressional Budget Office (CBO) notes many children would lose their free or reduced-price breakfast and lunch meals at school.

The Senate bill also includes an amendment to reauthorize the National Flood Insurance Program (NFIP) for six months beyond its July 31 expiration date. “While we would ideally prefer multi-year reauthorization of the NFIP, we are pleased that the Senate will not let the program lapse while they work out a long-term reauthorization plan,” Gentile said. Source: PIA National, Politico

But agents can’t be complacent! The Internet is here to stay and agents need to respond. The participating companies of The PIA Partnership have recently completed an extensive research project examining the perspective of small business owners as they make insurance choices and receive value added service in today’s online world. The research found that while choosing a professional independent agent continues to be their clear preference, small businesses are adapting to change and they want their agents to adapt with them PIA and The PIA Partnership are offering resources agents can use as they compete in today’s online environment. Central Insurance Cos.

Current PIA Partnership Encompass Insurance Erie Insurance Companies Include:

Hanover Insurance Group Liberty Mutual Insurance

MetLife Auto & Home Motorists Insurance Group National General Nationwide Independent Progressive Insurance

Progressive Insurance Selective Insurance Group State Auto The Hartford

July 2018 | Main Street Industry News | www.pianeia.com | 10

Available online at: VoiceOfTheCLCustomer.com

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  

     

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                              

  

   

TOP STORIES

SPECIAL REPORT

SMALL BUSINESS & INSURANCE “With risks evolving and becoming more complex, it’s more important than ever for small business owners to evaluate their insurance needs to help ensure they are properly protected. This presents a tremendous opportunity for independent agents to provide expert counsel to help assess small business owners’ risks, identify solutions, and guide them through the insurance buying process,” he said. The bottom-line of the report: less than 37% of small business owners feel they are adequately insured. The business of small business insurance is no mystery. Small businesses need insurance as badly — and in some cases more badly — than larger businesses and corporations. A report from The Hanover Insurance Group and Forbes Insights titled the 2018 Small Business Risk Report finds small business owners are very concerned with the state of business in 2018. Their concerns are legion: • Cyber • Employment practices liability • Crime and exposure to crime What they aren’t doing says The Hanover’s Michael Keene is taking care of their insurance needs and taking the time to assess exactly what insurance they need. He said this is a wonderful opportunity for independent insurance agents — like those members of the PIA Western Alliance — to help.

The survey says small business these days is facing a very challenging and changing landscape.

TOP RISKS Cyber/data breach

94%

Employment liability/crime

72%

Professional liability

41%

Top Two Risks - Break Down:

CYBER SECURITY RISK Cyber security risk

94%

Confident they are adequately insured

20%

Planning on expanding coverage for cyber risk

41%

EMPLOYMENT RELATED RISK Exposed to employment-related allegations

72%

Strong confidence they are adequately insured

20%

Planning to expand or obtain insurance for employment practices liability

59%

July 2018 | Main Street Industry News | www.pianeia.com | 12

TOP STORIES The study found these to be the increasing areas of risk to the small business owners queried:

RISK TO SMALL BUSINESS OWNERS Data breaches

30%

Loss of employees critical to operation

30%

Business interruption

28%

Cyber attacks

27%

Physical damage to company assets

19%

Employee dishonesty

19%

Safety/well-being of employees

18%

Fraud

16%

Other

11%

Lawsuits from current, former or prospective employees

Looking at insurance: • 33% are strongly confident of spending enough time exploring coverage options • Yet just 37% strongly believe they are adequately insured Here’s what Hanover and Forbes concluded. Only a third of small business owners spend enough time assessing their insurance needs or coverage options. They find that odd because: • Small business owners acknowledge the risks are growing and evolving • Yet just 57% have reviewed their insurance in the last year The why is unknown but there is agreement by small business owners: • Coverage is more important than price — or so say 82% • 33% say coverage is the top priority when selecting an insurance type • Unfortunately, just 21% say they check with experts like independent insurance agents to evaluate business risks and to guide decision-making

A new report from specialist insurance broker InsuranceBee in its first Annual Risk Survey supports the Hanover-Forbes report. It says 29% of the 1,000 small and medium-sized businesses (SMB) surveyed have no insurance. Worse, a huge percentage don't have a contingency plan at the ready to mitigate risk. Here’s what the survey found: • Most consider themselves risk takers • 93% say financial risk was the biggest concern when setting up the business • 47% say economic uncertainty kept them up at night once the business was set up • 27% say they put cash aside to mitigate risk but aren’t sure how much they really need Here’s what’s most surprising about the survey. A huge number have no: • • • •

Insurance at all No E&O No general liability No workers’ compensation

Those earning less than $50,000 a year and sole proprietors are the most likely to not have insurance. InsuranceBee’s senior advisor Maureen Brogie said, “Insurance policies are not ‘nice-tohaves’ — they’re essential for small businesses. Without insurance, if someone makes a claim against them, all the blood, sweat and tears that went into building their business could just go to waste. For most, if not all, this should be a risk that’s simply not worth taking.” Sources: hanover.com, Insurance Business America, PropertyCasualty360.com

July 2018 | Main Street Industry News | www.pianeia.com | 13

TOP STORIES

HOUSE LOOKS AT SMALL BUSINESS

CYBER PROTECTION The U.S. House of Representatives has passed a bill — which will now go to the Senate — to help small businesses do battle against hackers. The bill was generated in the House Small Business Committee and it orders the Small Business Administration (SBA) to develop a cyber counseling certification program to give cybersecurity training to employers and employees at small business development centers. The bill — if passed by the Senate and signed into law by the president — will require the SBA

to reimburse the development centers the cost associated with that training. However, the cost cannot top $350,000 in a year. This was a bipartisan effort by Ohio Republican Rep. Steve Chabot and Pennsylvania Democrat Rep. Dwight Evans. Idaho Republican Sen. Jim Risch — who chairs the Senate Small Business and Entrepreneurship Committee — said he’ll introduce this in the Senate. Source: The Hill

July 2018 | Main Street Industry News | www.pianeia.com | 14

TOP STORIES

PIA and The PIA Partnership Present:

New Cyber Topics Released Monthly

CYBER 101 Essential Information You and Your Clients Need to Know About Cyber

CYBER 101 is a toolbox of educational resources to help educate agents, CSRs, and their clients about the seven most common cyber risks faced by small and mid-sized businesses as well as the business practices and insurance coverages that can help reduce those risks. Topic-specific PIA member webinars, interactive claims examples, and customizable general cyber educational materials are available on the website.

Visit: www.pianet.com/pia-partnership/cyber101

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Workers’ compensation insurance and services for contractors and construction companies by people who understand the business. MidSouth Mutual has provided workers’ compensation insurance and associated services to contractors and construction firms since 2006. Today we serve clients across eleven states. We commit to deliver superior service to agency partners and clients. We provide sophisticated safety resources to support worksite safety. In the event of a claim, service is fair and fast. Learn more at www.midsouthmutual.com.

Alabama • Arkansas • Georgia • Indiana • Kentucky • Mississippi Missouri • Nebraska • North Carolina • Oklahoma • Tennessee

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PIA Market Access     

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TOP STORIES

SCARY THOUGHT

THE PERSON GENERATING A TEXT ALSO LIABLE FOR A COLLISION? Jordon Solway is the claims vice president of Travelers Canada. He delivered a chilling thought to Insurance Business America. Solway is an insurance legal expert and said someone sending a text could be held liable for damages if the person they’re texting is involved in a collision that is their fault. This applies if the person sending the text knows the person receiving the text is driving. “There’s an increasing public safety issue of operators of vehicles who are distracted while driving. And if you contribute in the same way as if you’re in the vehicle, and you interfere with their driving of the vehicle, you could be held responsible for that injured third party,” he said.

Solway bases his advice on a ruling in New Jersey in 2013 that held the texting person liable and he compares it to the bar owner or party host who know a person has been drinking heavily — or drugging — and yet lets them leave and get into a vehicle. “It’s analogous — you’re putting someone in a position where they could cause harm to themselves or a third party,” Solway said. As for why. He said the answer is obvious. “I think it’s a (consequence) unfortunately of living in a highly connected world where, if someone doesn’t respond immediately to an email or a text, your concern is they are ignoring you,” he said. Source: Insurance Business America

July 2018 | Main Street Industry News | www.pianeia.com | 17

TOP STORIES

AN INSURANCE NIGHTMARE?

LAWYER NUMBERS INCREASING IN THE U.S.

THE VALUE OF INSURANCE TO THE ECONOMY Once in a while, Weekly Industry News will share an article we find valuable to you — our members. This is one such article and is one from the Insurance Information Institute (I.I.I.). It’s definitely worth a few minutes of your time.

Every session of just about every legislature these days features an onerous bill — or two or more — either backed or generated by trial lawyers. Insurance lobbyists dread dealing with them and the bills they support. Usually they’re bad faith issues or something having to do with credit scoring. A new report from the American Bar Association (ABA) — the American Bar Association National Lawyer Population Survey — shows the number of licensed, active attorneys in the U.S. now numbers 1,338,678. That’s a 0.2% jump over last year and a 15% rise in the last 10-years. Iowa ranks 35th with 7,454 of them and Nebraska ranks 38th with 5,565. New York ranks first and the report’s tally pegs attorneys in the Empire State at 177,035. Texas is third, Florida fourth and Illinois is fifth. North Dakota has the fewest number at 1,694. Source: Insurance Journal

July 2018 | Main Street Industry News | www.pianeia.com | 18

While consumers understand insurance as protection against financial loss, the industry’s contribution to the economy goes much further. According to a new white paper from the Insurance Information Institute (I.I.I.), insurance also serves a wide variety of roles that preserve communities and promote overall economic growth. The white paper, How Insurance Drives Economic Growth, examines how the insurance industry’s extensive contributions benefit all aspects of the U.S. and global economy, especially within safety/security, economic/ financial stability and development. “The insurance industry truly is at the heart of the growth and progress of every modern economy,” says Sean Kevelighan, Chief Executive Officer of the Insurance Information Institute. “Most people realize that the insurance industry is the financial first responder – providing much needed recompense after a disaster. But the industry also plays a number of important roles, quietly, that are vitally important to a modern society.”

TOP STORIES

Here are a few examples from the paper that demonstrate the ways in which insurers and reinsurers act to drive economic growth: Financial First Responders: Insurers restore claimants and beneficiaries quickly and reliably. This lessens the costs of unexpected losses. There is also a ripple effect that benefits those not directly affected by a loss, including supporting businesses that repair damaged vehicles and homes. They, in turn, are helping the economy by paying taxes and keeping people employed. In 2017, the insurance industry paid roughly $1.5 trillion (an average of $125 billion per month) to help claimants and beneficiaries rebuild their lives, properties, and businesses while also getting access to medical care. Health insurers paid $589.9 billion; life/annuity insurers provided $590.3 billion; and property/casualty insurers paid $414.6 billion. Risk Mitigators: Insurers sponsor and promote knowledge and activities that save lives as well as protect and preserve property. They employ a wide variety of loss prevention personnel

(e.g., safety engineers and fire prevention specialists) to study ways to protect lives and property. On the property side, insurers have evaluated the effectiveness of municipalitiesâ€™ fire suppression systems and provided incentives to upgrade them. In fact, after Hurricane Charley hit Florida in 2004, modern building codes promoted by the Insurance Institute for Business and Home Safety and property insurers were found to reduce the cost of insured losses by 42 percent and the frequency of these losses by 60 percent. Partners in Social Policy: Insurance delivers significant social benefits by promoting the common good through auto and workers compensation insurance. For example, nearly every state has enacted a law that requires motorists to purchase auto liability insurance or show proof of financial responsibility to compensate accident victims. As a result of mandatory insurance, drivers are protected from the heavy burdens of financial troubles if accidents occur. In addition, all states have workers compensation laws, requiring workers to be covered for illnesses and injuries arising

July 2018 | Main Street Industry News | www.pianeia.com | 19

TOP STORIES out of their job, along with lost wages. In 2015, about 135.6 million employees had coverage, arming them with the peace of mind that they’ll be able to sustain themselves financially, even if their health hits an unexpected bump in the road. Community Builders: Insurers are among the largest investors of capital in the world, with more than $5.8 trillion in assets under management. Since these investments are essential to insurers’ ability to pay long-term claims, insurers’ investment portfolios often include private and municipal bonds that help finance the growth and prosperity of communities across the country. By supporting state and local governments through the buying and holding of municipal bonds, insurers help to lower borrowing costs that allow for greater investments, reduce tax rates for residents, and bolster job creation and economic growth. In the last decade, financing public works projects with municipal bonds vs. taxable debt (that would have had to pay higher interest) has saved $495 billion. Innovation Catalysts: Insurance allows innovators to safely take risks that drive our modern economy, and has acted as a critical driving force underwriting investments in technological breakthroughs, literally across centuries - from steam power to mass

production to aviation to automation and information networks to coming advancements in artificial intelligence, nanotechnology and beyond. The global nanotech market is expected to double in value in five years, from $39.2 billion in 2016 to $90.5 billion by 2021. More than 1,600 nano-influenced consumer products are already in the marketplace, and more are being developed, all with the support of insurance. Through these roles, insurance allows homeowners and small business owners to follow their dreams. In fact, as the white paper states, “Insurance is a necessary precondition for many economic activities that would not – or could not – take place otherwise. Without the guarantee of insurance (and reinsurance), most businesses could not operate as they do today, and construction projects could not go forward. Most consumers would not be perceived as good credit risks and could not borrow money from lending institutions.” Whether it’s day-to-day ups and downs, or catastrophic events, the insurance industry is committed to demonstrating unwavering resilience and will continue to support individual communities and the overall economy, no matter what lies ahead. Source: Insurance Information Institute

We’re proud to support the Professional Insurance Agents of Nebraska and Iowa.

#1 preferred business insurer* *Based on 2018 survey of business insurance buyers on preference of national carriers sold via independent agents. © 2018 Liberty Mutual Insurance. Insurance underwritten by Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries.

July 2018 | Main Street Industry News | www.pianeia.com | 20

TOP STORIES

52 MILLION 3,600 970 ACRES.

AGENTS.

CLAIMS PROFESSIONALS. WE’VE GOT THIS.

Your clients trust you with their livelihood. That’s why crop insurance agents trust RCIS. As one of the nation’s leading crop insurance providers, now part of Zurich North America, RCIS aims to deliver outstanding claims handling, experience and technology. Come grow with us. We’ve got this. Contact an RCIS field representative or visit RCIS.COM.

RCIC is an equal opportunity provider. The U.S. Department of Agriculture (USDA) prohibits discrimination against its customers, employees, and applicants for employment on the basis of race, color, national origin, age, disability, sex, gender identity, religion, reprisal, and where applicable, political beliefs, marital status, familial or parental status, sexual orientation, or all or part of an individual’s income is derived from any public assistance program, or protected genetic information in employment or in any program or activity conducted or funded by the Department. (Not all prohibited bases will apply to all programs and/or employment activities). Some products not available in all states or counties.This is intended as a general description of certain types of insurance and services available to qualified customers provided solely for informational purposes. Coverage is underwritten in all states by Rural Community Insurance Company, Anoka, MN except in Montana where hail coverage is underwritten by Tri-County Farmers Mutual Insurance Company, Malta, MT. Nothing herein should be construed as a solicitation, offer, advice, recommendation, or any other service with regard to any type of insurance product or services. Your policy is the contract that specifically and fully describes your coverage, terms and conditions. The description of the policy provisions gives a broad overview of coverages and does not revise or amend the policy. Coverage may vary by state. Coverages and rates are subject to individual insured meeting our underwriting qualifications and product availability in applicable states. RCIS is a registered trademark of Rural Community Insurance Company. © 2018 Rural Community Insurance Company. All rights reserved.

RCIS4061 – Main Street Industry News Half Page Ad – 7.5 x 4.75

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FLOOD INSURANCE

WE’RE STILL WAITING

PIA National wants a solid flood insurance program in place. The association says to do that major changes will be needed in the current National Flood Insurance Program (NFIP). PIA wants more privatization of flood insurance and the program’s insureds to be paying actuarily sound rates. The problem of flooding — especially on the nation’s coasts — is critical. That’s why the PIA has been pushing both the House and Senate to get on with the business of solving the growing crisis of flooding in the U.S. Here’s an example. The Union for Concerned Scientists issued a report saying millions of U.S. homes are at risk of chronic flooding. It says 311,000 homes in 165 to 180 communities are either “chronically inundated” now or will be in the next 15 to 20-years. By 2058 that figure will be 270 to 360 communities, and the endangered homes and businesses figure grows to 2.4 to 2.5 million. Rachel Cleetus — an economist for the group — said the loss to the nation’s economy could hit $1 trillion. “Unfortunately, in the years ahead, many coastal communities will face declining property values as risk perceptions catch up with reality. In contrast with previous housing market crashes, values of properties chronically inundated due to sea level rise are unlikely to recover and will only continue to go further underwater, literally and figuratively,” she said.

Of course with lower home values comes lower property taxes. That impacts school funding, road maintenance and construction and emergency services in all of these communities. Group spokeswoman Kristy Dahl said, “some smaller, more rural communities may see 30%, 50%, or even 70% of their property tax revenue at risk due to the number of chronically inundated homes.” Adding to the problem is a Federal Emergency Management Agency (FEMA) — who is charged with operating the NFIP and responding to flooding emergencies — that is super understaffed. Documents picked up by the Freedom of Information Act say the disasterresponse team is down 26%. Staffing shortages means personnel is shuffled, and shuffled workers often don’t have the experience needed to handle emergencies. FEMA — as expected — denies this is a problem and says it can — and will — respond adequately to all emergencies. Whether it can or not depends on point of view. Nonetheless, the PIA says it is time for Congress to move quickly on legislation to reauthorize the NFIP and to begin to solve the issues raised in this report. In a letter to Senate leadership, the PIA said, “We encourage the Senate to act soon on legislation, rather than risk the program lapsing after its July 31 deadline in the middle of hurricane season. Any reauthorization of the NFIP should contain improvements to the program but take care not to include provisions that would have unintended negative consequences.” The letter said. In that same letter, the PIA also noted it opposes any provision that would cut the WriteYour-Own (WYO) reimbursement rate without a strong protection for agent compensation. Sources: CNN, Insurance Journal, PIA National

July 2018 | Main Street Industry News | www.pianeia.com | 22

How does PIA help me promote my agency?

Let me count the ways. E

veryday PIA members across America promote their agencies using materials and strategies they get from PIA. Our PIA Branding Program is full of marketing materials they can customize and use in their local markets and beyond.

um s n co rs e e ag fly p t - y por p ne ndl u s O ie dia e fr m ial c o S

2. 3. Print advertisements

4. R

io co A mm n M n erc ar ua ial ke l P s tin IA g A G ge ui n de cy

P I A N AT I O N A L P I N N A C L E PA R T N E R S

Best of all, PIA provides these materials to PIA members for free, as part of their PIA membership. Itâ€™s just another benefit of being a PIA member. Visit the PIA Branding Program at www.piabrandingprogram.com. PIA would like to thank our Pinnacle Partners for supporting PIA members through their support of the PIA Branding Program.

Learn how the PIA Branding Program can help your agency at www.piabrandingprogram.com.

National Association of Professional Insurance Agents 400 N. Washington St. Alexandria, VA 22314-2353 1-800-PIA-6900 (1-800-742-6900) piabrandingprogram@pianet.org www.pianet.com

PIA NE IA EVENTS

69TH ANNUAL CONVENTION The Professional Insurance Agents of Nebraska Iowa celebrated their 69th Annual Convention on June 7-8, 2018 at the Lied Lodge & Conference Center in Nebraska City, NE.

PROFESSIONAL INSURANCE AGENTS

Nebraska & Iowa

July 2018 | Main Street Industry News | www.pianeia.com | 24

PIA NE IA EVENTS

Early the following morning, over 80 golfers teed off at Dodge Riverside Golf Club overlooking the banks of the Missouri River and beautiful views of the Omaha skyline. Exhibitors with generous swag conversed with PIA members on the golf holes. Diversified Insurance took fun pictures of the golfers and everyone had an entertaining time with the props.

July 2018 | Main Street Industry News | www.pianeia.com | 25

PIA NE IA EVENTS

The day on the course was followed by an evening of festivities at Annie’s Irish Pub featuring Blazin’ Pianos. Blazin’ Pianos captivated the audience with fast-paced, high-energy rock and roll improve as they took requests from the audience.

July 2018 | Main Street Industry News | www.pianeia.com | 26

PIA NE IA EVENTS

Attendees kicked off the final, yet full, day with Sam Bennett, CIC with “How to Turn Your Technical Knowledge into Dollars” and “Personal Lines and the Sharing Economy – I’m Gonna Uber to an Airbnb – What can Possibly Go Wrong?. During breaks a complimentary professional photo station was set up for convention participants to use for business and social media websites. Of course, between the two sessions, PIA members enjoyed the awards presented during the Achiever’s Luncheon. Sponsored by the PIA Trust, it began with an invocation provided by Mark Suhr and a generous lunch. The awards were then presented to Company of the Year, Agent of the Year and Marketing Rep of the Year, as well as the $1,000 Leadership Scholarship.

Jim Scheer, Speaker of the Legislature, fellow agent and PIA member spoke to the crowd during lunch about the upcoming legislature and the insurance industry in Nebraska.

PIA President Jeff Brehmer, of Smith Davis Insurance, was recognized for his contributions to PIA and was honored with a plaque noting his accomplishments.

New PIA Board members were installed and the new PIA President, Andrew Plummer of Plummer Insurance gave his inaugural address.

After 49 years in the insurance industry, Gary Baumann retired again! Thanks to all the members who stayed to toast our friend and gentleman.

July 2018 | Main Street Industry News | www.pianeia.com | 27

PIA NE IA EVENTS

PROFESSIONAL INSURANCE AGENTS NE IA AWARD WINNERS FOR 2016: All Awards were presented during the Achiever’s Luncheon as part of PIA’s 69th Annual Convention in Omaha, NE.

Agent of the Year – Steven Anson, Anson Insurance Services, O’Neil, NE.

Company of the Year – Farmers Mutual Insurance Company.

PIA Leadership Scholarship: Kyle Lindquist.

Marketing Representative of the Year – Rodney Ulmer, CPCU, AU of EMC Insurance Company.

This year’s winning candidate was Kyle Lindquist of Randolph, NE with Grandfather Timothy Lindquist of Town & Country Insurance being the member sponsor. Kyle has been accepted to Wayne State College and is seeking a Business Management degree and would then like to enter the insurance world following in his grandfather’s footsteps.

Plans are in the works for the 2019 PIANEIA Convention. Look for details soon! July 2018 | Main Street Industry News | www.pianeia.com | 28

CONGRATULATIONS FOR YOUR EARNED DESIGNATION The Professional Insurance Agents NE IA would like to congratulate everyone who has earned a designation from The National Alliance in 2017.

2018

CIC Designation Mr. Zachary David Stitz, CIC Holmes Murphy & Associates, LLC Waukee, IA

CISR Designation Ms. Amanda M. Lemke, CISR Midwestone Insurance Services Oskaloosa, IA Ms. Amanda L. Westerhold, CISR NCMIC - Professional Solutions Clive, IA

2018

11:00 am Registration 12:00 pm Shotgun 4-person scramble

GREATER METRO OMAHA COMMITTEES ANNUAL SCHOLARSHIP GOLF OUTING

402-392-1611 www.pianeia.com

Thursday, September 6th, 2018 Ashland, NE Help us Insure the Future Agent by Attending! Name________________________________________________________________________________________________ Agency/ Company Name_________________________________________________________________________________ Address_________________________________ City____________________________ State__________ Zip_____________ Phone __________________________________ Fax____________________________ E-mail ________________________ Please put me in a foursome with: 1. _________________________ 2. _______________________ 3. _________________________ 4. ____________________ Cost: m$95 Member m$100 Non Member (includes green fees, cart, refreshments on the course, prizes and dinner) Total enclosed $_________________________________________________________ Pay by: mCheck mVisa mMasterCard Credit Card Number______________________________________Exp.__________________________ VCode___________ Name on card (print)____________________________________________________________________________________

DINNER ONLY RESERVATIONS ON REVERSE SIDE OF SHEET Mail check and Reservation Form to: Professional Insurance Agents of NE IA, 920 S 107th Ave, Ste 305, Omaha, NE 68114 Questions? â€“ Please contact us at education@pianeia.com or 402-392-1611

July 2018 | Main Street Industry News | www.pianeia.com | 30

TOP STORIES

WORDS & PHRASES:

HOW TO SPEAK

TO YOUR CLIENTS Chubb wants to help you get more business. The world’s largest publicly traded P&C insurer says some words work for your clients and some don’t. Finding the ones that don’t is an art form.

Chubb found if you talk about “high net worth” or use the word “affluent” to describe them they may not be flattered. Even if the client is fairly wealthy, they may still view themselves as middle class.

AVOID THESE WORDS & PHRASES

INSTEAD SAY THIS SAY THIS

INSTEAD OF

Successful

Affluent

Accomplished

High Net Worth

Premium Insurer

High Net Worth

Better Experience

Better Coverage

PHRASES

To help you get to the right place with those doing business with you Chubb has created a resource center. The point is to help independent agents and financial advisors to find ways to engage with clients more effectively.

SAY THIS

INSTEAD OF

“When you're at your worst, we're at our best.”

“Do you have exposures you don't know about?”

“You deserve a company who will treat you with empathy and compassion.”

“Make sure your policy is written for you.”

"You’re responsive."

"You're through."

“We’ll identify your risks and exposures.”

“We’ll identify how to best protect you.”

“If something happens.”

“If a loss occurs.”

“Your needs may have changed.”

“Your home may not be insured to its full value.”

In other words — words. Or more specifically, your clients and prospects don’t speak insurance so you need to translate terms for them and put them into everyday language. To help you accomplish that Chubb partnered with the language strategy firm Maslansky + Partners. Their conclusion was to emphasize it’s not what you say that’s often the problem. It’s what is heard.

And never put down the competition by saying, “Other agents aren’t independent or free to recommend what they think is best.” Instead say, “I will tailor a comprehensive plan that prioritizes your needs, and I can advocate on your behalf.” Source: PropertyCasualty360.com

July 2018 | Main Street Industry News | www.pianeia.com | 31

PIA NE IA EVENTS

Upcoming Events Calendar 2018 For information and to register Click Here or call (402) 392-1611. Date

Class/Webinar

Where

When

July 11, 2018

CISR: Commercial Casualty 2

Davenport

Saint Ambrose University

July 17, 2018

Cyber Liability - the 21st Century Peril

NE/IA

Webinar: 12:00PM - 3:00PM

July 17, 2018

Scary CGL Exclusions

NE/IA

Webinar: 8:00AM - 11:00AM

Jul 18 - 20, 2018

CIC: Commercial Property Institute

West Des Moines

Holiday Inn Hotel & Suites

July 18, 2018

CISR: William T. Hold: Advanced Learning Seminar

Des Moines

Hilton Garden Inn Des Moines/Urbandale

July 19, 2018

Additional Insureds: The Quandry

NE/IA

Webinar: 12:00PM - 3:00PM

July 23, 2018

Your Agency Online: Communication Cure or E&O Plague?

NE/IA

Webinar: 12:00PM - 3:00PM

July 25, 2018

Street Level Ethics

NE/IA

Webinar: 12:00PM - 3:00PM

July 25, 2018

New Technologies, New Risks - Drones, Home and Ride-Sharing

NE/IA

Webinar: 8:00AM - 11:00AM

July 26, 2018

Home Business vs. Home Insurance

NE/IA

Webinar: 12:00PM - 3:00PM

July 31, 2018

Commercial Property Claims that Cause Problems

NE/IA

Webinar: 12:00PM - 3:00PM

July 31, 2018

Insuring the Building Project - Builders & Risk Installation Coverage

NE/IA

Webinar: 8:00AM - 11:00AM

August 1, 2018

FMO: E&O Reasons & Solutions (FREE CE FOR MEMBERS)

NE/IA

Webinar: 9:00AM - 12:00AM

August 8, 2018

Contractors, Contractors, Contractors

NE/IA

Webinar: 12:00PM - 3:00PM

August 8, 2018

CPSR: Systems, Operations & Procedures

Omaha

Paul Davis Restoration

August 9, 2018

Certificates of Insurance and Additional Insureds: NE/IA Making Sense of It

Webinar: 8:00AM - 11:00AM

August 14, 2018

A Walk Around the Farm: Farm Liability Considerations

NE/IA

Webinar: 12:00PM - 3:00PM

August 15, 2018

E&O: Reasons and Solutions

NE/IA

Webinar: 8:00AM - 11:00AM

August 22 - 24, 2018

CIC: Agency Management Institute

Lincoln

Marriott Courtyard

July 2018 | Main Street Industry News | www.pianeia.com | 32

PIA NE IA EVENTS

August 22, 2018

The New ISO Personal Auto Policy: A Look Backwards and a Look Forwards

NE/IA

Webinar: 12:00PM - 3:00PM

August 22, 2018

CISR: Insuring Personal Residential Property

Hiawatha

Kirkwood Linn Regional Center

August 28, 2018

Excess and Umbrella Fundamentals Plus

NE/IA

Webinar: 12:00PM - 3:00PM

August 28, 2018

CISR: Commercial Casualty 2

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

August 30, 2018

On Ethics: Data, Dilemmas and Knuckleheads

NE/IA

Webinar: 12:00PM - 3:00PM

September 6, 2018

Catastrophe: The Coverage Expertise You'll Need When It Matters Most

NE/IA

Webinar: 8:00AM - 11:00AM

September 6, 2018

Tricks to Fix: Closing Coverage Gaps in Home, Work and Auto

NE/IA

Webinar: 12:00PM - 3:00PM

September 12, 2018

CISR: Personal Lines Miscellaneous

Davenport

Saint Ambrose University

September 13, 2018

Street Level Ethics

NE/IA

Webinar: 12:00PM - 3:00PM

September 17, 2018

CPIA 2: Implement for Success

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

September 25, 2018

Home Business vs. Home Insurance

NE/IA

Webinar: 8:00AM - 11:00AM

September 26, 2018

CISR: Personal Lines Miscellaneous

Hiawatha

Kirkwood Linn Regional Center

September 27, 2018

Your Agency Online: Communication Cure or E&O Plague?

NE/IA

Webinar: 12:00PM - 3:00PM

October 1, 2018

Insuring the Building Project Builders & Risk Installation Coverage

NE/IA

Webinar: 12:00PM - 3:00PM

October 2, 2018

CISR: Insuring Commercial Property

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

October 3 - 5, 2018

CIC: Commercial Multiline Institute

Cedar Rapids

Cedar Rapids Marriott

October 15, 2018

Cyber Liability - the 21st Century Peril

NE/IA

Webinar: 12:00PM - 3:00PM

October 16, 2018

A Walk Around the Farm Farm Property Considerations

NE/IA

Webinar: 12:00PM - 3:00PM

October 16, 2018

E&O: Reasons and Solutions

NE/IA

Webinar: 8:00AM - 11:00AM

October 16, 2018

CPIA 2: Implement for Success

Omaha

Paul Davis Restoration

October 17, 2018

Commercial Property Claims that Cause Problems

NE/IA

Webinar: 12:00PM - 3:00PM

October 17, 2018

Scary CGL Exclusions

NE/IA

Webinar: 8:00AM - 11:00AM

October 17 - 19, 2018

CIC: Commercial Multiline Institute

Omaha

Omaha Marriott Hotel

October 23, 2018

Home Business vs. Home Insurance

NE/IA

Webinar: 12:00PM - 3:00PM

July 2018 | Main Street Industry News | www.pianeia.com | 33

PIA NE IA EVENTS

October 24, 2018

New Technologies, New Risks - Drones, Home and Ride-Sharing

NE/IA

Webinar: 12:00PM - 3:00PM

October 25, 2018

On Ethics: Data, Dilemmas and Knuckleheads

NE/IA

Webinar: 1:00PM - 4:00PM

October 25, 2018

CISR: Insuring Commercial Property

Davenport

Saint Ambrose University

November 6, 2018

CISR: Commercial Casualty 1

Hiawatha

Kirkwood Linn Regional Center

November 13, 2018

CPIA 3: Sustain Success

West Des Moines

LaMair - Mulock - Condon Insurance (LMC)

November 14, 2018

CISR: Dynamics of Service

Des Moines

Hilton Garden Inn Des Moines/Urbandale

November 14 - 16, 2018

CIC: Personal Lines Institute

West Des Moines

Holiday Inn Hotel & Suites

November 16, 2018

CPIA 3: Sustain Success

Omaha

Paul Davis Restoration

November 14, 2018

CISR: Dynamics of Service

Des Moines

Hilton Garden Inn Des Moines/Urbandale

November 14 - 16, 2018

CIC: Personal Lines Institute

West Des Moines

Holiday Inn Hotel & Suites

November 16, 2018

CPIA 3: Sustain Success

Omaha

Paul Davis Restoration

July 2018 | Main Street Industry News | www.pianeia.com | 34

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