Phyllis Van Wyhe
CPCU, CIC, CSP

The Van Wyhe Group

E-NewsLetter

Seminar CE:

OH . WI , and MI Agents

PO Box 4130
Waukesha, WI 53187
Phone (800)326-4741

Fax (800)476-2945

April 1, 2010

North of a Rock and South of a Hard Place
Life is easy for an agent who is never required to issue a certificate of insurance on a commercial account.  But for those agents who are not that blessed, life continues to get more complex.  The problem arises when the standard wording in a certificate does not meet the requirements of the contract your insured signed; if you do not revise the wording, he will lose the job and you may lose his business.  Let’s review what is at stake when an agent revises a certificate.  More than 20 states are now enforcing laws or administrative rules prohibiting certificate alterations labeling such actions as “fraudulent, coercive, or dishonest acts "with penalties that include fines and license suspension or revocation.  Many E&O policies do not cover intentional or fraudulent acts so an agent may be self-insured on the exposure.  And, the carrier may wash his hands of the problem simply stating it had never seen the certificate in question and the agent involved did not have the authority to issue it in the altered state.

If that is not enough to make you hesitate, the stakes are being raised.  Acord is implementing the newly revised Acord 24 (Property) and Acord 25 (Liability) certificates with an effective date of 9/2009.  Agents who see these new forms will smile at the streamlined, single-page format but may shutter at the revised wording.  Concerning cancellation of policies, the new certificates simply state “…should any of the above described policies be cancelled before the expiration date thereof, notice will be delivered in accordance with the policy provisions.”  The policy makes no commitment to notify a certificate holder of a pending cancellation.  Acord has also announced it will be withdrawing the use of the old forms and warned that it intends to enforce its copyright.  That includes a prohibition on using any old form after September 1, 2010 and on altering the new forms in any manner.  Before you change the wording on even one more insurance certificate, perhaps you should spend an hour with a good insurance attorney who understands and respects copyright law.  I think this issue of altering certificates has reached a tipping point; proceed with extreme caution.

Billboard on I-75:  
Every policy comes with an agent!   State Farm

Ohio’s Turn Now
Gradually we are moving toward standardization of agent’s licensing, including continuing education, throughout the country.  The federal standards, developed over a decade ago, mandate that an agent’s license will renew every two years in the agent’s birth month.  That renewal requires the completion of 24 credits of CE with at least 3 of those credits of Ethics.  A new National Producer Number (NPN) will replace the old agent’s license number and every agent will eventually be fingerprinted.  (I know a few agents who have already been fingerprinted, but that’s another story.)  In February, Ohio’s governor signed a bill that will take that state one step closer to the federal guidelines.  Currently Ohio agents need only 20 credits in two years; the new law requires 24 CE credits with 3 credits of Ethics.  Ohio replaced the old license number with the NPN some time ago but we have not been advised if the state is going to staggered renewal dates at this time.  When will these new requirements become effective for Ohio agents?  No one knows.  I have a feeling that providers and agents are going to be the last to find out. 

Quote of the Month

“…you better start swimmin’ or you’ll sink like a stone,

for the times they are a-changin’.”

Bob Dylan

Newsletter CE Winners
Winners will be announced each month in this newsletter and should contact Angela at angela@insurancece.com to redeem their winnings.  To win, you must be signed up for this newsletter.  Spread the word.
This month’s winners are:

Sally Brand @ Bud Jones Insurance , Lewiston, MI
Amy Johnson @ TIC Insurance, Rhinelander, WI
Rebecca Keyers in AAA Ohio  in Akron, OH

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.