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September 16, 2009

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In this Issue

•  Latest Version of Producer Comp Disclosure Regulation Still Unacceptable 
•  Association Addresses Compensation Disclosure Concerns with Administration 
•  IIABNY, Fireman's Fund Team Up to Help Clarence Center Volunteer Fire Co.
•  Sign Up for Hideous Endorsements, Personal Auto Policy, Intellectual Property Webinars 
•  Webinar Covers National Flood Insurance Program Changes that Go into Effect Oct. 1 
•  Help Your Clients Be Prepared When Disaster Strikes

 Hot Links  Local Events | Education Calendar | E&O Reports |Capitol Reports | The Situation Room | Technology
Word on the Street Podcast | Ask Tim Podcast

Latest Version of Producer Comp Disclosure Regulation Still Unacceptable
The state Insurance Department issued last week its third draft of the proposed producer compensation disclosure regulation. Following a meeting with the governor’s staff and further review of the latest version, IIABNY has determined that it remains unacceptable in its present form.

A key objection involves a stipulation that agents and brokers be required to designate whether they represent the purchaser or the insurer.

Dick Poppa

"This is one item we cannot accept in any form," IIABNY President and CEO Dick Poppa, CAE, AAI, told National Underwriter magazine in a recent interview.

IIABNY is also concerned about new requirements for renewal policies and additional requirements connected to oral disclosures to customers.

"We still don’t believe that this regulatory action is necessary, but if there is going to be a regulation, then it needs to be clear and unambiguous so producers do not have to anguish over what is required and what is not," Poppa said. "It’s a little premature to talk about legal or other action, but we are keeping our options open. We expect to continue working with the Governor’s staff and the Insurance Department."

The proposed regulation is currently being reviewed by the Governor’s office before formal publication in the State Register.

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Association Addresses Compensation Disclosure Concerns with Administration
IIABNY cleared the air in a meeting last week with Gov. David Paterson’s staff regarding the association’s continuing concerns over the information producers would be required to disclose to their clients under the latest rule proposed by the state Insurance Department. For a full account of the meeting, go online to The Situation Room. 

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IIABNY, Fireman's Fund Team Up to Help Clarence Center Volunteer Fire Co.
IIABNY and Fireman’s Fund recently awarded a $7,500 grant from Fireman’s Fund Insurance Co. to help purchase specialized training equipment for the Clarence Center Volunteer Fire Co. The grant, which was presented Sept. 10, will be used for a state-of-the-art smoke generator enabling high-level training by simulating smoke conditions inside burning buildings.

	Clarence Center Volunteer Fire Co. Chief Dave Case, left, accepts an enlarged facsimile of the check donated from Fireman’s Fund. Pictured with Chief Case, from left, is IIABNY Chair-elect Dave Gelia, Lisa Cooke of Fireman’s Fund and member agent Joseph Floss, president of EMS Group-Floss Agency in East Amherst. To view more photos of the check presentation, go to IIABNY’s page on Facebook.

"We’re in the process of building a training facility, and the smoke generator will allow us to safely and effectively simulate real fire conditions throughout the building," said Clarence Center Fire Chief, David Case. "Ultimately, this will allow us to better protect and serve the Clarence Center community."

Since 2004, the Fireman’s Fund national philanthropic program has issued more than $21 million in grants to 1,100 fire departments nationwide. The program has directed more than 90 grants totaling more than $1.28 million to fire departments in the state of New York.

IIABNY, because of the amount of errors and omissions business it conducts with Fireman’s Fund, was contacted by the insurer and asked to participate in the grant program. The association invited nominations for the grant from its local association leaders, with IIAA of Western New York recommending CCVFC.

"These days firefighters are being asked to do more with fewer resources," said Dick Poppa, AAI, CAE, president and CEO of IIABNY. "Taking that into account and the fact these firefighters and the whole Clarence Center community had to endure the (Continental) Flight 3407 disaster, we’re glad to support this community in a meaningful way." The fire company was a first responder to the fatal commuter plane crash outside Buffalo that killed 49 people in February.

"Whether it be that misty Feb. 12th evening jet fuel explosion and inferno down the street," said IIABNY Chair-elect Dave Gelia, "or a night-time blaze in the city of Buffalo at a closed deli, one that also cost us the lives of two brave fire fighter heroes, Lt. Charles 'Chip' McCarthy and John Crook, this same miracle of bravery happens every time a firefighter, paid or volunteer, pulls up at a scene of fire, chaos and fear.

"While everyone else is running away from the carnage, firefighters are running toward and into the situation attempting to help and save…total strangers," continued Gelia, who is also executive vice president of the United Insurance Agency in Amherst. He represented IIABNY Sept. 10 at the check presentation ceremony held at the volunteer fire company’s station, where he delivered his remarks. 

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Sign Up for Hideous Endorsements, Personal Auto Policy, Intellectual Property Webinars
IIABA is offering a series of Webinars designed to provide training on a variety of topics important to independent agents. The Webinar "Hideous Endorsements" reviews a collection of egregious or unusual endorsements that can affect an insured’s coverage and the agent/broker’s obligations to identify, discuss and disclose the existence and impact on coverage with the insured.

"The Personal Auto Policy: Who Knew It Covered That Loss" Webinar will discuss various common auto risk exposures and how the standard ISO personal auto policy responds to them. Also included in the course will be liability issues and concerns, adding parties to the policy versus the  automatic coverage found in the policy, rental car exposures and the policy response and endorsements, using borrowed vehicles and adding new cars and physical damage coverages.

Finally, the Webinar "Intellectual Property – Who Has It and What Does It Mean" will explain why every business has intellectual property. Intellectual property is especially important to some commercial customers, such as software designers, who discuss this issue at length with agents. This Webinar will review the basics of intellectual property and provide the information agents need to discuss this exposure with customers.

Purchase a "seat" for $59 and present each Webinar conference-style for the entire agency staff. Go to the Big "I" Web site for more information about all the Webinars, including dates, times, the availability of continuing education credits and registration information. You can also e-mail IIABA for more information about the Webinar series. 

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Webinar Covers National Flood Insurance Program Changes that Go into Effect Oct. 1
A free Webinar, scheduled at 2 p.m. Sept. 29, will provide information about the National Flood Insurance Program changes that go into effect Oct. 1 and their impacts on agents and their policyholders. The topics include: rating and deductible changes, new building types, grandfathering details, underwriting forms and sources for additional agent information. If your agency writes flood insurance, this is a "can't-miss" Webinar for everyone in the office. Go online to register.

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Help Your Clients Be Prepared When Disaster Strikes
With wildfires raging in the West and hurricanes threatening the East coast, preparing for the worst is on the minds of agents and insureds alike. September has been designated National Preparedness Month by the Federal Emergency Management Agency and U.S. Department of Homeland Security, so IIABA has joined forces with the two agencies as a National Preparedness Month 2009 coalition member. Agents can help their customers prepare for the worst by providing them with a host of planning resources available at www.ready.gov. More resources, such as a Webinar and a calendar detailing the campaign’s goals and available materials, are also posted online.

The Big "I" Virtual University also has several resources to help with disaster planning, including an emergency preparedness guide for homes and families. Access the full VU Web site on emergency preparedness. Note: a member login is required for access to the VU site. E-mail Linda Mackey for more information from IIABA on disaster preparedness.

IIABNY also encourages its members to prepare a disaster emergency response and recovery plan and has brought together tools and resources to aid the development of your plan. Among the resources is the Disaster Recovery Tools section of the association’s Web site. Members are also eligible for a special discount if they sign up for Agility Recovery Solutions, IIABNY’s endorsed disaster recovery and business continuity solution. Agility has posted a special section of its Web site devoted to National Preparedness Month. The section includes information about the series of free educational Webinars Agility is hosting this month.

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