Florida Association of Insurance Agents

IN THIS ISSUE:

There are about two million rental cars in the United States. With summer coming our way, it may seem like, at times, two million customers call your agency asking the world famous question of, "Should I buy the coverage from the rental car firm?"

I'll be doing a two-hour webinar (or live class in your agency at your request) about this very issue just in time for the summer travel season. Over two hours, I'll show you what the contract you sign says and I assure you that you'll be shocked at what you agree to. I'll take a look at the coverages under the PAP and BAP, pointing out the gaps. Then I'll tell you about some "horror stories" relating to rental car situations. From there, I'll move on to the limited coverage provided by credit cards and finally to the "top ten list" of reasons that the "loss damage waiver" offered by the rental car firms may not be a total rip off.

If you have customers who rent cars (and you do), or if you ever rent a car (and you do), you need to attend this class. You can see a current list by looking at our "Events" page by clicking here and looking for the class titled, "Rental Cars—More Than Meets The Eye."

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Just a reminder...

Agency principals and managers now have a new tool at their disposal when it comes to providing newly-licensed employees with solid P&C training: the INS (Program in General Insurance) certification, offered by the American Institute for CPCU/IIA.

While anyone in the agency can take the course work, the INS certification is recommended for those who have been licensed for five years or less. Less technical in nature than the AAI designation, INS provides ideal training for those who want to obtain more substantial insurance education than found in pre-licensing courses. The courses cover insurance principles, practices, and policies in-depth.

Each segment of the courses is approved for Florida CE credit.

FAIA offers the courses in live classroom format only. Most classes are one day in length and are offered in four cities around Florida. Successful completion of an exam following each segment earns the INS certification. The following courses are required:

1. INS 21—Property and Liability Insurance Principles: What Insurance Is, Who Provides Insurance, How Insurance Is Regulated, Measuring the Financial Performance of Insurers, Marketing, Underwriting, Claims, Insurance Contracts, Property Loss Exposures and Policy Provisions, Liability Loss Exposures and Policy Provisions, and Risk Management. The course is divided into three segments taught over 1.5 days.
   
2. INS 22—Personal Insurance: Insurance and Society, Personal Auto Policy, Homeowners Insurance, Other Residential Insurance, Other Personal Property and Liability Insurance, Personal Loss Exposures and Financial Planning, Life Insurance, and Health and Disability Insurance. The course is divided into three segments with one full day per section.
   
3. INS 23—Commercial Insurance: Commercial Property, Business Income, Commercial Crime, Equipment Breakdown, Inland and Ocean Marine, Commercial General Liability, Commercial Auto, Businessowners, Farm, Workers' Compensation and Employers Liability, and Miscellaneous Coverages. The course is divided into three segments with one full day per section.

For complete information on the INS certification, click here.

For class dates and locations, or to register, click here.

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Recently, FAIA and IIABA hosted a series of webinars focused on changes made to the Certificate of Liability and Certificate of Property Insurance. As a result of these changes, one of the central questions that has been asked is "when do I have to use the new form?"

According to ACORD, the old form (01/2009 edition) can be used up to one year after the introduction of the new form. The new form was introduced September 2009, thus the prior edition can be used until through September 30, 2010. Therefore as of October 1, 2010, the 01/2009 Certificate of Liability and Certificate of Property forms cannot be used owing to ACORD's licensing agreement.

For more questions and answers involving the new editions of the certificates, please see IIABA's collection of "101 Questions and Answers About Certificates of Insurance."

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Management help, including sample job descriptions, training manuals, office organization, and hiring practices, is available on FAIA's website. Just click on the "Ops in a Box" logo on the left. While you're there, check out all the topics and learn how to run your agency better! This section is frequently updated as we discover new and better information. Remember, you'll need to log in; this valuable resource is for FAIA members only!

Lately, I've been receiving emails concerning the duties of the "agent-in-charge." As you remember, the agent-in-charge title was created because of the repeal of the primary agent law. Instead of a primary agent, each agency has to have a full-time designated licensed and appointed agent-in-charge at each location.

As far as the duties of the title of agent-in-charge, there are none. The agent-in-charge does not have any statutory duties and is not defined in the Florida Insurance Code. The designated agent in charge may be assigned to more than one agency location if one of those locations does not require licensure activity that requires an agent to be present. In other words, if the agency does not sell insurance while there is not an agent present then the agent-in-charge can be assigned to more than one location. Unfortunately, most agencies are in the business of selling insurance, so an agent-in-charge has to be physically present. Some agencies are only open for business when the agent-in-charge can be physically available. This helps the agent to be present at more than one location.

If an agency needs to replace the agent-in-charge, the agency has 30 days to notify the Department of Financial Services. This can be done through the department's online My Profile system. If the agency doesn't designate an agent-in-charge within 30 days, the agency cannot operate until an agent-in-charge is appointed. If you have any questions regarding this law—§626.747, F.S.—please feel free to contact me at jodom@faia.com.

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Many agents have called regarding a "watch list" of carriers that are experiencing financial woes right now; we do not have such a list. What we can provide is the latest financial data on any carrier doing business in Florida, through our partnership with SNL Financial, on our website under the heading Insurer Financial Data. We have updated the list of carriers with fourth quarter results to provide agents with a great overview of the carrier's current financial position. If you have an interest in a carrier that is not on the list we are following, please send me an email and we will be glad to provide financial data on that carrier for your review.

There has been a lot of press recently regarding several carriers, so I wanted to provide an update of what FAIA knows.

• Magnolia is still under administrative supervision and policies are being non-renewed. Please replace those policies with other carriers for coverage.
  
• Northern Capital has suspended new business and is exploring options on raising additional capital or merging with another carrier to continue servicing agents of Florida.
  
• HomeWise Insurance Company and HomeWise Management Company have entered into an agreement in principle to be acquired by 21st Century Holding Company based in Lauderdale Lakes, FL. The agreement also includes the rights to certain renewal policies from HomeWise Preferred Insurance Company. The transaction is expected to be concluded by June 1, 2010.
  
• Tower Hill Preferred and Hillcrest Insurance Company have agreed to merge to create one carrier—Tower Hill Preferred—with $30 million of statutory surplus. This carrier is working with the OIR to create a single rate plan and hope to complete the merger by June 1, 2010.
  

As always, when FAIA learns of additional carrier news, we will provide that information through our FAIA Community, along with eAlerts, rolling banners on our website, and other communications.

Speaking of FAIA's Community, you'll find blogs from key FAIA staff on topics as varied as the NFIP, national health care reform, FAIA's Convention, and Florida's property marketplace. My latest covers the sometimes frustration of working with Citizens and how best to, or not to, respond. Click here to sign in and read more.

And last but not least, Friday Morning Live! has some great topics over the next few months, including the entire month of May dedicated to hurricane preparedness. Please join Bill Perkins and me each Friday morning from 9:00–9:30 a.m. (EDT) with the latest and greatest from FAIA. You can sign up by clicking here, and you'll only have to do it once.

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I have previously written in my post about my daughter and her apartment complex burning to the ground. She lost everything she owned, but fortunately her Dad is an "insurance nerd" and she was well protected with an HO-4 policy.

The claim has been concluded and I think the whole experience is a great "billboard" for those who ask the question, "Why should I buy a renter's insurance policy?"

I've posted an article in our free Education Library about this, along with some great photos which make the point. I think it's a great sales tool to show a customer when the question comes up. To see the article, just click here and be sure to look at the last photo!

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by Melissa Champany, CCSR, API

When you were young, did you ever wonder what your parents meant about time "speeding up" as you got older? Doesn't it seem like they were right? In terms of physics, we all know that time doesn't stand still, nor does it move faster or slower; it keeps moving at the same pace as ever while our perception has changed.

With time in mind, it's your time to apply to the next Florida's Future Insurance Leaders (FFIL) series of classes. The FFIL program will prepare you to take the next step in your career and become the insurance leaders of tomorrow. This is an advanced leadership immersion program that includes mandatory attendance at various FAIA events, including, but not limited to, FAIA Board meetings, Legislative Fly-In, Convention, and Planning Session. Admission is available to any FAIA YAC member in good standing with a minimum of three years experience in the insurance industry. Click here for the application; contact Melissa Champany for more information.

As we all know,TIME FLIES WHEN YOU'RE HAVING FUN , and the YACs have plenty of that in store at FAIA's 2010 Convention and Education Symposium. First, we'll host a four-person scramble golf tournament on Wednesday at the Hawk's Landing golf course. This is open to all FAIA members, not just YAC. We have room for individual participants and foursomes. Proceeds from the golf tournament will benefit the Folds of Honor Foundation. That evening, we'll celebrate with the low scorers, the high scorers, and all those in between, at a reception from 6:00 to 8:00 p.m. On Thursday and Friday, we'll keep things hopping at our booth in the Exhibit Hall. Also, on Friday, we'll have our customary YAC invitation-only luncheon with guest speaker Major Ed Pulido from the Folds of Honor Foundation.

Please plan to attend FAIA's Convention and volunteer to help, if you can, by clicking here. While time hasn't run out to register, the early bird registration price will on May 28. Use the link above and save yourself some time and money by registering today! Be sure to thank our company sponsors, too. We couldn't do all this without them.

There's no time like the present to complete your YAC Executive Committee Nomination Form. We're looking for a few good YACs to take up the mantle of leadership for the 2010–2011 year. Forms are due by May 18, 2010. Don't hesitate and don't be late!

SmartStart4Kids is just around the corner and we need your time and talents. We need to mobilize the YAC platoons across the state and marshal our resources to help today's students—your future employees and clients—prepare for academic success. Please consider what organization(s) in your zone could benefit from a school supply drive. We'll be collecting items during the month of July. The YAC Events Task Force will meet soon and needs your input.

And, finally, do you find you don't have time to check the YAC homepage for all the news and events? Then, you're in luck. Log in and sign up for YAC news through FAIA's Community. When we blog or email from the Young Agents Council group page, you should receive an email. Best of all, this service is free to all FAIA members! Sign in today and start receiving your benefits.

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There are no enemy lines here you have to worry about. You'll learn from others' ideas throughout FAIA's 106th Anniversary Convention & Education Symposium. You'll gain insights from strategic communication that will help you become more valuable to your agency or company and better prepare you for the future on the insurance battlefield. Here is a preview of one of the many breakout sessions we have planned.

Joint Agency/Company Planning: Basic Training for Agents and Companies with FAIA Director of Education Tom Ashley, AAI, AIAM, AIP. Develop stronger partnerships with your carriers and make more money this year! This course will explain the use of the Best Practices Joint Agency/Company Planning Tool and how it can help independent agencies and their company partners develop stronger, more profitable relationships. Learn about the Agency Forecasting Calculator and Producer Projection Calculations, plus how to facilitate mutual problem solving, improve client service, increase retention, and more! This program was developed jointly by agents and companies and was the first product in IIABA's Best Practices series. This session has been approved by the DFS for two (2) hours of continuing education credits (intermediate) CE # 52347,CE9902—Generic–Life, General Lines, and Title. This session is sponsored by CNA Insurance Company.

Please click here to register for the Convention.

Please click here for a complete version of the online Convention brochure.

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DISCLAIMER All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the prior written permission of the Florida Association of Insurance Agents.

NOTE: FAIA is not in the business of giving legal advice. Whenever questions arise, agents are urged to seek the counsel of a competent attorney licensed in Florida and familiar with the Florida Insurance Code.

Please note that all coverage analysis done by FAIA is based on standard ISO forms. Many carriers in Florida file their own forms with the OIR, some of which are derivations of ISO and some that are unique. It is imperative that you carefully read your carriers' forms to make an informed decision about coverage questions.