Uniform CE Gramm-Leach-Bliley was passed in 1999, one provision required states to streamline insurance regulation. If the states could not do it, the federal government would step in and take it over. The National Association of Insurance Commissioners decided a good starting point would be instituting uniform CE requirements throughout the country. Ten years later, we are still in the thick of it. Eventually, all agents will need 24 credits every two years with 3 of those credits in Ethics. Self study and on-line CE will be available in all states. Agents will give up their license number and use the National Producer Number assigned to them; Ohio is now in the process of switching to the new number. Another requirement will be the fingerprinting of all agents (my personal favorite). And, a license will renew in the month of the agent’s birth. Starting in 2010, Michigan is instituting this last requirement and the transition has been painful for many agents. The state has sent out transition details in cryptic emails. This week, in response to a deluge of complaints, the state announced they have changed the transition process to make it less painful. Confused Michigan agents will be able to verify their next renewal day on the Internet after January 4th. Simply go to www.michigan.gov/ofir then scroll down to the Featured Services menu and select the Insurance License Locater. Indiana agents enjoy the current peace and quiet; your day will come sooner than you think.
Wisconsin AutoWisconsin’s Democratic Governor, who is rumored to be returning to private law practice after his term expires, has given Wisconsin residents a parting gift in the form of major, major changes to the states auto insurance law. The provisions, which were buried in the budget bill, were designed to provide Wisconsin residents with “the best auto insurance in the country.” Now those residents who carry insurance will be forced to pay the bill for this gift as auto premiums increase substantially. In response, the legislature is looking at banning zip-code rating so that coverage will be more affordable for inner-city residents. A significant backlash, fueled by talk radio, is brewing. The goal is to overturn a portion of the new statute.
In the meantime, policyholders who want an explanation and perhaps a justification have been turning to their agents. Simply stating, “blame in on the trial attorneys,” benefits no one; we can to do better.
We will be discussing that issue in December at my public seminars in Wisconsin ; we will also look at the E&O aspects of the changes. I have written a Self-Study Lite book that will be approved for 3 credits within the next month (watch for it on the Website.) It reviews the statute changes, complete with my comments, and gives background on the issues such as stacking, reducing clauses, and compulsory insurance. I think it is a must-read for Wisconsin agents and some will want to use it for CE credit.
Chinese Drywall UpdateThe federal government is investigating the health hazards of Chinese drywall. The Consumer Products Safety Commission, Center for Disease Control, and the Environmental Protection Agency are all working on it. The initial report that came out recently says little but we can expect the results of a more definitive study later this month. In the meantime, the claims against the insurance industry continue to mount. The case of Lennar, a national builder, is just one example. It is spending over $40 million to correct construction defects related to the drywall installation in their new construction and seeking reimbursement from their insurance carrier. The claims under Homeowners policies are also coming in; many carriers are denying coverage and setting the policy up for non-renewal based on increase in hazard. It makes perfect sense to an underwriter but the consumer sees it as adding insult to injury.
Many agents erroneously believe the problem is found only in Southern states. While it is more prevalent there, companies in the Midwest are bracing for claims. Chinese drywall was used in the Midwest, particularly in Wisconsin and Minnesota, following winter storms. When temperatures and humidity are high, the defective drywall gives off fumes that reputedly corrode metal and can impact the health of occupants of the building. The danger in the Midwest may not surface until we get one of those hot, humid summers.
A Heartfelt Thank You
Many agents knew my kid brother Keith from the time he manned the phones in our office; he made a significant contribution to the success of this business over the years. Keith was diagnosed with terminal colon cancer the first of August and passed away November 4th at the age of 57. Our family was blessed with three months in which to say good bye and make peace with his leaving. I would like to thank those of you who sent cards, whispered regrets, or gave me a hug. My “family” is much bigger than I could have imagined. Thank you. Quote of the Month“Live as if you were to die tomorrow. Learn as if you were to live forever.”
Mahatma Gandhi Who We Are:InsuranceCe is brought to you by The Van Wyhe Group, an education firm coaching agents in ways to add value to the insurance transaction. Agents who master adding value attract business rather than chase it.
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November's featured course: Legal Responsibilities 3 credits--Only $15 An insurance agent walks a difficult line with legal responsibilities to both an insurance company and a client. Periodically, every agent should review the legal responsibilities of an agent in modern society. $5/credit
Michigan -- 3 Credits
Ohio -- 3 Credits
Wisconsin -- 3 Credits
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