|
Click here to view this email in your browser.
|
|
|
|
 |
|
Jan. 13th, 2023 - A publication of the Independent Insurance Agents & Brokers of California
|
|
|
|
|
|
|
|
 |
|
Jonathan Schreter
President
IIABCal
|
|
|
President's Message
Attacking 2023 Head On!
As California’s ongoing auto and homeowners’ insurance crisis deepens, a cloud of complacency has settled in the halls of the state capitol in Sacramento in the name of consumer protection. California Insurance Commissioner Ricardo Lara refuses to act, state lawmakers don’t know how to address these complicated issues, and insurance companies, though desperate for regulatory relief, tread lightly because the Commissioner has total authority over their rates.
IIABCal’s independence and freedom from these restrictions gives us the unique opportunity to proactively advocate for change. We’re going on the offensive!
IIABCal has hired a nationally prominent insurance law firm (Eversheds Sutherland) and one of the most highly respected insurance actuarial firms in the world (Milliman) to help us research and draft legislative proposals that would reopen the property insurance marketplace in California and expedite the prior approval rate process within the California Department of Insurance.
IIABCal has preliminarily identified a variety of measures that could better enable insurers to more effectively evaluate catastrophic wildfire risks, and we have great confidence in the legal experts we have retained to put together a working framework. But that expertise comes at a cost.
In coming weeks, you will be receiving communications from IIABCal with more details on our industry advocacy and a request for a commitment from each member to help us raise $150,000 in the first phase of our vitally important campaign to replenish the IIABCal Legal Defense Fund. Or you can make your contribution today!
We know this will not be easy, or fast, or inexpensive as we will be taking our fight directly to the Insurance Commissioner and so-called consumer groups that profit from the status quo. We are committed to working with our members and our insurance industry partners, in collaboration with other industries harmed by the unavailability and affordability of property insurance. It will take our combined time, talent, and treasure to be successful, but with your help, our goal of returning California to a vibrant insurance market is obtainable.
|
|
|
|
|
|
|
CEO Corner
The Advocate Behind The Advocacy
The California legislature reconvened on January 4, and IIABCal is ready with an aggressive advocacy agenda for the new year! Visit the IIABCal Advocacy webpage to stay abreast of all our advocacy alerts and communications. And please plan to attend the first Legislative Update of 2023 on Feb. 1st.
Speaking of our popular and informative “Legislative Updates,” I want to take this opportunity to recognize and celebrate SVP and General Counsel Steve Young’s 34th anniversary at IIABCal. Steve is an incredible asset to IIABCal and has truly seen it all. Thank you, Steve, for your unwavering commitment to the industry and for all you have done and will do!
|
|
 |
|
Jill Epstein
Chief Executive Officer
IIABCal
|
|
|
|
 |
|
IIABCal Senior Vice President and General Counsel Steve Young represents agents and brokers at regulatory hearings conducted by the California Department of Insurance and other state agencies, coordinates IIABCal's involvement in litigation affecting insurance producers, and provides legal support to the Association’s legislative advocates. From left top, Steve Young with IIABCal Past President Tim Manaka, CDI General Counsel Ken Schnoll, and Past Presidents Tabb Randolph and Todd Williams
|
|
|
|
|
IIABCal Advocacy
CDI Revises Notices on Broker-Agent License Numbers in Emails
In response to criticisms tendered by IIABCal and three other producer organizations, the California Department of Insurance (CDI) has issued a Revised Notice clarifying its position on a new law that requires brokers and agents to include their license numbers in emails that involve insurance transactions.
Effective Jan. 1, 2023, California Insurance Code Section 1725.5(c) requires producer license numbers to be included in all emails “… that involve an activity for which a license is required.” However, in a Nov. 14 Notice announcing the new requirement, CDI created significant confusion when it offered, as examples of emails that it said required license numbers, a variety of “clerical activities” that under longstanding California law may be performed by unlicensed persons. The Notice created the implication that licensing laws had been dramatically expanded.
On Dec. 22, CDI issued a revised Notice that addressed most of the concerns presented by IIABCal and the other groups. The revised Notice makes clear that the new law applies to non-resident, as well as resident, licensees, and expressly provides that messages involving clerical activities are not covered by the new law. In practical effect, that means the original Notice was repealed—although the Department didn’t make that explicitly clear. To read the full story, click here.
|
|
|
|
|
|
|
New Fraud Training Requirements Take Effect March 1
California insurance agents and brokers whose licenses renew (and persons who seek to become newly licensed) on or after March 1, 2023, are required to take at least one hour of new anti-fraud training as part of their continuing (or pre-licensing) education in ethics.
The California Department of Insurance (CDI) is preparing to issue a Notice to all CDI-approved education providers who offer ethics training courses requiring the Department’s Fraud Division one-hour fraud insurance training to be integrated into their existing 12-hour prelicensing and three-hour continuing education (CE) ethics training courses.
The Department will also have the one-hour of study on insurance fraud training available for agents and brokers who would like, or who need, to take the one-hour CE course to complete this training before their license renewal.
For more information, click here.
|
|
|
|
|
|
|
IIABCal Tells Story To National Audience
IIABCal SVP & General Counsel Steve Young told a nationwide audience of CNBC viewers why insurance companies are struggling in California as more policyholders are getting in accidents, while insurers haven’t been able to raise their rates in two years.
Joining Steve in the interview was Denni Ritter, American Property Casualty Insurance Association Vice President of Western Region State Government Relations, to provide an industry perspective on the market crisis and what must be done to correct it. Watch the full video.
|
|
|
|
|
|
|
2023 First Quarter Legislative Briefing
Wednesday, Feb. 1st, 2023 - 10 - 10:30 a.m.
Learn How Proposed Bills Might Impact Your Business
Legislative measures proposed in 2023 will likely have numerous ramifications on your business and your policyholders. Information is power, and the more you know about possible changes in the law, the better prepared you’ll be for whatever comes out of the California Legislature.
Join IIABCal Lobbyist John Norwood & General Counsel Steve Young for the Members-only Webinar Briefing on the 2023 California Legislature.
This short, fast-paced session will provide an insider's assessment of the major issues affecting California employers and the business of insurance that are most likely to garner significant legislative attention this year.
To register for the webinar, click here.
|
|
 |
|
John Norwood & Steve Young
IIABCal Advocates
|
|
|
|
|
|
|
Installation Celebration Big Hit With Members
Hundreds of agents and brokers, company representative and industry officials met for the IIABCal Installation Celebration at the Los Angeles Marriott, Burbank Hotel in November to celebrate the hiring of CEO Jill Epstein, the accomplishments of outgoing President Bob Teshima, and the installation of 2023 President Jonathan Schreter, the 2023 Executive Committee and Board of Directors.
During the event, IIABCal leaders outlined the association’s plan to address California's market crisis.
|
 |
|
Outgoing President Bob Teshima (left) & President Jonathan Schreter.
|
|
 |
|
UCLA Adjunct Professor Eric Sussman provided Installation keynote address.
|
|
Installation keynote speaker, Eric Sussman, Founding Partner of Clear Capital, LLC, and Adjunct Professor at UCLA, shared his economic insights and forecasted what agents and brokers should expect in 2023.
To view or download a copy of Sussman’s installation presentation, click here. To subscribe to the Clear Capital newsletter, click here.
To view or download photos of the Installation Celebration, click here.
|
|
|
|
|
|
|
Beloved Past President Bill Glascock Dies
IIABCal Past President & Ramsden-Sullivan Memorial Award Recipient Bill Glascock passed away Nov. 27, 2022, in Larkspur, California. He was 88.
Beloved by many, Bill possessed a calmness as he conducted the business of insurance for decades in Northern California and while leading IIABCal. Bill was IIABCal President in 1982-83 after serving on the Executive Committee, Board of Directors, and Personal Lines Committee. Bill also served several terms as President of IIPSC, the association for-profit Service Corp.
|
 |
|
Recognized For His Service
Bill was considered one of the best personal lines agents in his day, and his agency (Downs & Glascock) served as IIABCal’s broker of record for many years. In recognition of the caliber of service to the Independent Agency System, Bill received the prestigious Ramsden-Sullivan Memorial Award in 1991, the highest award IIABCal bestows on an individual.
“I had the honor of serving behind Bill in the chairs of the association's executive committee,” Past President George
|
|
 |
|
IIABCal Administrative Vice President Dick Poppa in 1985 with Rose & Bill Glascock.
|
|
Porter said. “Bill loved the association and our business. He always stood up for what he thought was right, he might disagree on a particular issue, but he always did so without rancor. Bill used to regale us with stories about going out fishing by himself under the Golden Gate toward the Farallon Islands. It was always fun to work with Bill, he was one of the nicest and sweetest men that I’ve ever met.”
The Ultimate Student
“He was my friend beginning in my early IIABCal days, and I stayed pretty close to him up to his passing,” Past President Jim Pollard said. “He loved salmon fishing, and he was the ultimate student of insurance and ethics.”
“His love of sailing, family, and his dogs were always near and dear to his heart, said his daughter, Ann Ryan. “ He will be remembered for his many years of service to the community. I know I speak for all his children in our appreciation for the sense of integrity he instilled in us.”
Plans for a celebration of Bill’s life in February are pending. In lieu of flowers, contributions can be made to the Alzheimer’s Association.
|
|
|
|
|
|
 |
|
When it comes to your agency’s professional liability, contact IIABCal's Mike Orrick to learn about the most respected and comprehensive insurance agents’ professional liability program in the business.
IIABCal offers a variety of Errors & Omissions products specifically geared towards today‘s independent insurance agency. We have provided reliable E&O for more than 40 years to California independent insurance agents and brokers.
IIABCal offers:
- Choice of multiple markets
- Highly rated carriers
- One-to-one customer service
- Guidance through the claims process in the event of a claim
- Loss control resources
Contact Mike Orrick at 925-426-3310 or morrick@iiabcal.org.
|
|
|
|
|
|
|
|
|
|
|
Member Question of the Month
How Do We Appeal a Workers’ Comp Code Misclassification?
Q. We suspect one of our workers’ compensation insurers is attempting, in a retroactive audit, to misclassify certain employees of one of our policyholders. The client operates a carnival, and the insurer is trying to assign merely back office clerical employees to the codes applied to the workers who are on the road, running the rides and attractions. What recourse do we have to challenge what we believe to be an error on the insurer’s part?
A. The California Insurance Code (CIC) provides several remedies for appealing classification and related decisions. Click here for the answer.
|
|
|
IIABCal’s “Member Question of the Month” features questions from agents & brokers.
IIABCal General Counsel Steve Young provides answers to your legal questions as part of your membership benefits.
Have a question? Email Steve Young at syoung@iiabcal.org.
|
|
|
|
|
|
|
Looking To Expand Business Relationships?
Registration Open For 2023 Blue Ribbon Conference
Registration for the Blue Ribbon Conference, April 30 - May 4, 2023, on the Big Island of Hawaii is now open!
Join more than 400 industry leaders for an exclusive opportunity to network with decision-makers and premier carriers, in addition to attending unique education sessions and lavish receptions. The conference - and the setting of the Westin Hapuna Beach Resort - can't be beat!
|
|
|
|
|
|
|
See You February 5th in Sacramento
|
|
|
|
|
panel discussion of challenges independent agents and brokers serving the agri-business insurance industry will face in 2023.
This can't-miss event brings together a range of insurers and brokers to discuss emerging industry challenges. There are still a few days left to register for this year's AgriCon, scheduled for February 5–7 in Sacramento, California.
To view the full AgriCon agenda and to register, click here.
|
|
|
|
|
|
|
Member Spotlight
The Ins & Outs of Trucking & Construction Business
IIABCal's newest Associate Member, Integrated Specialty Coverages, will provide an in-depth review of both the trucking and construction business in California for all IIABCal members, as well as discuss hot trends, hard classes to place, and review easy solutions.
The Ins & Outs of Trucking & Construction Business will be held Wed., Feb. 15, 2023 at 10 a.m.
|
|
 |
|
IIABCal is excited to announce its newest associate member, Integrated Specialty Coverages.
To attend its upcoming webinar, click here.
|
|
|
|
|
|
|
|
|
IIAB Sacramento Installs President
The IIAB Sacramento annual in December was highlighted by the installation of President Haley Andrews, a third-generation president following her grandfather, Robert Gaines (1962-63), and father, Ted Gaines (1993-94).
Also helping lead the association in the coming year are Brennen Cull, President-Elect; Mark Diele, Secretary-Treasurer; Heath Sheppard, incoming Director; Jeremy Parker, incoming Director; Joe Sequenzia, incoming Director; and, Rob McVicar, Past President.
Members and guests generously donated to the toy drive which benefited Blessings in a Backpack. In addition, a check was presented to representative Janice Davis.
The association said goodbye to executive director Rose Kaerth who turned the reins over to Shirley Rosenberg.
|
|
 |
|
Haley Andrews
President
IIAB Sacramento
|
|
|
|
|
|
|
IBA-SFV Names New Executive Director
It is with great excitement that IBA-SFV announces the hiring of new Executive Director Jeremy Marchal. “After a long, thorough search, we believe we have found the best person for the job," said Alon Ben-Nun, IBA-SFV Immediate Past President. "We are proud to welcome Jeremy to the family.”
Jeremy is an experienced executive administrator and event planner within organizations in fields ranging from Personal Development to premier Residential Treatment Services, while most recently he worked at Hoffman Brown Company in Sherman Oaks.
Originally from London, England, he graduated from Manhattan College, New York, with a BA in Communication Studies. Jeremy enjoys travel, gardening, and spending time with his dogs.
|
|
 |
|
Jeremy Marchal
Executive Director
IBA-SFV
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|