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T H U R S D A Y , O C T O B E R 2 7 , 2 0 0 5
Flood Insurance Reform Act of 2004 Updates | NFIP Agent Co-Op Program | Safeco Provides Co-branded Ads to Agents | Disaster Planning Resource Available | Insurance Association of China Visits the Big "I" | Fund Contributions Top $300,000 | Industry News
G O V E R N M E N T A F F A I R S
Flood Insurance Reform Act of 2004 Updates
On June 30, 2004 President Bush signed the Flood Insurance Reform Act of 2004 (FIRA) into law. The Big "I" worked tirelessly on negotiating the educational provisions of this legislation because of its impact on agents’ responsibilities. The Big "I" lobbied for provisions that were finally put into effect in the Federal Register in September of 2005---15 months after the bill was signed into law.
The Big "I" played a direct role in shaping the training and education requirements and successfully had strong report language inserted into FIRA. Big "I"-supported language instructs FEMA to work with insurance agents, companies and state regulators to establish consistent federal and state training and education requirements. More importantly, the Big "I" included language directing FEMA to work to implement training requirements in states that already have continuing education processes in place. Before adding this language, the education provisions were too broad and would have given FEMA unlimited latitude to create any form of education it chose, possibly burdening agents with unnecessary requirements.
Summary of the Education Requirements as Published in the Federal Register:
• FEMA has chosen to work with the states to ensure that NFIP requirements are implemented through previously established licensing structures. FEMA intends to encourage states to both implement minimum flood insurance training standards as part of their overall licensing requirements and improve testing and training of agents selling flood policies.
• FEMA will assist, where necessary, states implementing flood insurance training programs for agents, including expertise regarding training programs’ content that provides agents with a proper understanding of the NFIP. This will include access to NFIP online and hard copy training modules, general NFIP materials and any other assistance on a state-by-state basis in order to ensure proper training protocol.
• Using the model act adopted by NCOIL (State Flood Disaster Mitigation and Relief Model Act), FEMA will actively work with state departments of insurance that do not already have an established flood insurance training program in place. The provisions of the model act will be distributed to these states as a reference point for adopting their own requirements.
• FEMA will provide incentives to insurance agents to pursue flood insurance training, such as: a partial reimbursement in advertising expenses when agents participating in the NFIP Agent Co-op Program use the NFIP pre-approved advertising templates; an additional 25% in co-op funds to any agent who completes a state-approved continuing education course on flood insurance in the past 12 months; and, agents who sign up for the NFIP Agent’s Leads Referral program will receive free leads generated through the NFIP marketing initiative. A system that give agents who complete additional flood insurance training priority in the distribution of leads is in the works.
• The rule also outlines the content that states should include in the update of their flood insurance training requirements.
The Big "I," in cooperation with some company partners, is developing an extensive training program for independent insurance agents based on the most recent versions of the Flood Insurance Training Manual (October 2005) that incorporates all updates. The course content, which is in development, will exceed all the required areas of content as defined in the Flood Insurance course content descriptions published in the Federal Register. Madelyn Flannagan, Big "I" vice president of education and research, is updating training manuals and online classes, putting the Big "I" well ahead of other associations. Upon acceptance by FEMA, the Big "I" will notify all state association education directors and education providers and will provide all state association with a complete package of information for classroom use to notify agents of the requirements, inclusive of student materials, CE course outlines, instructor materials and more during the next month.
For more information please contact Emily Crane at 800-221-7917; emily.crane@iiaba.net.
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B I G " I " F L O O D P R O G R A M
NFIP Agent Co-Op Program
The Big "I" Flood Program encourages Big "I" member agencies to familiarize themselves with the federal advertising resources available through the National Flood Insurance Program. The NFIP Co-Op Advertising Program, as well as the Agent Leads Program and FloodSmart newsletter subscriptions, are available to all agents. The program provides pre-approved, customizable ad templates or scripts for newspaper, magazines, radio and Yellow Pages advertising. There is no approval needed for the ad and the reimbursement process is streamlined once an agent registers to participate. The program pays up to 50% of the cost of media. Agents who complete state-approved continuing education courses are eligible for an additional 25% reimbursement—a total of 75% of the expense reimbursed. Agents can request pre-approval for $1,250 a month and up to $15,000 a year in reimbursement funds through the Agent Co-Op Program. Click here for more information about the Co-Op program, upcoming special incentives, and to see the many advertising options available. To learn more about how the Big "I" Flood Program can get your agency "thinking flood," click here.
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T R U S T E D C H O I C E ®
Safeco Provides Co-branded Ads to Agents
Safeco-appointed agencies participating in the Trusted Choice® program can take advantage of new Safeco-Trusted Choice® co-branded print ads to drive business their way. These agency tag-able ads include the Trusted Choice® logo. The ads are designed to help agencies that are seeking to grow with Safeco capitalize on Trusted Choice® national branding and advertising efforts.
"Safeco’s contribution to—and ongoing support of—the Trusted Choice® program is an indication of the commitment that Safeco Insurance has made to the independent agency distribution system," says Bill Norman, vice president of Safeco agency relationship management.
Safeco created an ad based on a tag-able ad originally developed by Trusted Choice®. The company revised the ad by adding their logo and modifying the text to reference Safeco. The other ad, created by Safeco, co-brands with Trusted Choice® by incorporating the logo. Click here to view the Safeco ad with the Trusted Choice logo and click here to view the Trusted Choice®-developed ad that Safeco co-branded. Safeco-appointed agencies can download the ad templates by going to the Safeco Now™ Marketing Toolkit. Click "Co-Branded Advertising," then "Trusted Choice®." The ads are available in several sizes, and versions were created in both English and Spanish. Click here to access valuable tips and information about how to buy and place print media that is available online here. If you need your agency username, click on the "Forget your password" link on the "Agents/Brokers" sign-in page.
For more information, contact Jeff Myers or Stacy Heatherington at 800-221-7917; jeff.myers@iiaba.net, stacy.heatherington@iiaba.net.
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B E S T P R A C T I C E S
Disaster Planning Resource Available
Do you have a disaster plan in place? Have you communicated it to your staff? Do they know what to do and where to turn if disaster puts your business in crisis? The Crisis Tool Group, which specializes in assisting organizations from local to multi-nationals in developing comprehensive, effective disaster plans, collaborated with the Big "I" to develop the "Best Practices of Crisis Management – A Step-by-Step Business Recovery Planner."
The Best Practices guide can help you develop your agency disaster plan. It includes a manual with complete step-by-step instructions on how to put the plan together while covering all the bases. All of the material can also be found on the accompanying CD. Just load the CD and let it walk you through creating and printing an action plan unique to your agency’s needs that you can share throughout your agency and with your business associates.
The time to start on this program is now. Save $50 on "Best Practices of Crisis Management – A Step-by-Step Business Recovery Planner" during the month of October. To order a copy today for only $49.95, click here for an order form. Want to learn even more about this critical planning tool and how to make it work in your agency? Attend the 2006 Big "I" National Legislative Conference & Convention, which will include a full day of Risk Management and Preparedness Plan Training on April 29, 2006. Join us there to develop or fine tune your agency disaster plan.
If you would like to know more about all of the innovative concepts that the Best Practices program can offer your agency, click here. For more information, contact Madelyn Flannagan at 800-221-7917; madelyn.flannagan@iiaba.net.
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I N T E R N A T I O N A L N E W S
Insurance Association of China Visits the Big "I"
Last week, representatives from the Insurance Association of China (IAC) visited the Big "I" headquarters on a whirlwind tour of the United States. Bin Xu, deputy secretary-general of the association, and several of his colleagues visited the Big "I" to receive advice and suggestions on improving China’s insurance law. Xu was very interested in hearing about regulation standards, standards of practice for agents, legislation and the structure of the U.S. insurance industry. He said that the IAC is constantly working to help China establish a balanced and healthy state for the insurance industry to grow and thrive. Big "I" CEO Bob Rusbuldt debriefed the Chinese agents on the structure of insurance in the United States. He discussed state regulation, the definitions and differences between independent agents and captive agents and historically important events for independent agents. Several members of the Big "I" senior leadership staff were on hand to discuss their areas of expertise. Wes Bissett explained several pending legislations matters, including TRIA. Madelyn Flannagan discussed agent education, specifically accreditations and certifications, and the Virtual University. Dave Evans and Xu discussed what licenses agents need to sell various products. Barbara Miller-Richards reviewed the Big "I" agent perpetuation programs (InVEST, Diversity Task Force and Young Agents). The Big "I" and IAC both look forward to working together to help the IAC establish a fair and stable insurance industry in China.
For more information contact Emily Crane at 800-221-7917; emily.crane@iiaba.net.
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K A T R I N A R E L I E F F U N D
Fund Contributions Top $300,000
Zurich is the latest carrier to contribute to the Big "I" Katrina Relief Fund. With the generous support of carriers, company partners, individuals, and state associations, the fund has collected more than $300,000 to date. Its goal is to assist those whose lives were tragically altered by Hurricane Katrina and its aftermath. All donations will help insurance industry colleagues, including independent agents, brokers, their employees and families in the impacted areas.
The Big "I" Katrina Relief Fund is now accepting applications for grants from affected agents. To download an application, click here. To read the Big "I" Katrina Relief Fund distribution guidelines, click here.
Make checks payable to "Big ‘I’ Katrina Relief Fund" and mail to:
Big "I" Katrina Relief Fund
c/o InsurBanc
10 Executive Drive
Farmington, CT 06032
If you prefer to contribute via credit card, please click here.
All funds contributed to the Big "I" Katrina Relief Fund are tax deductible as charitable contributions.
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