Ohio Agents: Courses approved for new Ethics requirement.
Indiana Agents: Two new Self Study Lite courses approved.
Michigan Agents: Classroom CE coming in 2 weeks.
Wisconsin Agents: New 9 Credit Day Offered.
Agents Beware!
In May we all watched as tornados and excessive rainfall caused unprecedented flooding in Tennessee. Now a Nashville criminal defense attorney is investigating over 50 claims that insurance agents failed to properly advise customers about flood insurance for their homes. He stated that the agents involved include both independent agents and direct writers. He questions if the agents were properly trained and infers he may also be bringing insurance companies, particularly direct writers, into the suits. An attorney for a firm which handles litigation for insurance companies opined that if the claims do end up going to trial, judges may feel pressure to find liability because the damage is so extensive and agents do have E&O insurance. Please repeat after me, “This property policy I have written for you is very broad but one of the things it does not cover is damage due to flood and surface water. If you are interested in coverage for that, we can look at obtaining a flood policy.” Then repeat it again every time you write a property policy. Consider it self defense.
Catch 22
While offering flood insurance to the consuming public is an ethical and perhaps even a legal obligation for an agent, obtaining the coverage may be more challenging. Congress has failed to renew the flood program because it cannot agree on major program reforms and on how the $20 billion plus deficit in the program is to be handled. Congress has been temporarily extending coverage for a month or two at a time and the program has actually lapsed four times in less than a year. It lapsed again May 31; the reauthorization was buried in one of the stimulus extension bills that did not pass. As a result, a FEMA directive states that during this “hiatus period” no new or renewal policies are being processed. For details on how the mess is being handled go to http://www.fema.gov/pdf/nfip/w_10063.pdf . State Farm, the largest WYO company in the program, has had enough! It announced that it will stop administering federal flood insurance policies this fall. State Farm agents will still be able to write flood insurance but will have to write it directly through the government or with another WYO company. In a FEMA flood class I attended a few years ago, the instructor said an agent would be a fool to write the coverage direct as long as there is one WYO company still standing.
Oil & Water Do Mix
As another hurricane season gets underway, Gulf Coast residents are wondering if their flood policy will cover damage from oil driven ashore during a storm. Explaining that a mixture of oil and other pollutants in flood water is not unusual during a storm, a FEMA spokesperson confirmed coverage for damage it causes to building and contents. The General Property Form, used for commercial accounts, does limit coverage for damage caused by pollutants to $10,000; coverage under the Dwelling Form is limited only by policy limits. There would be no coverage for cleaning up the oil left in the yard and the additional cost due to special removal methods required by an ordinance is excluded. Not only do water and oil mix but the federal government is willing to pay for the damage it does if you were able to get a flood policy issued.
Covering Fido’s Heart Transplant
With $4000 hip replacements and $10,000 cancer treatments becoming common place for the “pampered pet” in our society, increasingly owners masters parents humans responsible for pets are turning to the purchase of health insurance for Fido or Fefe. But problems abound. Preexisting and hereditary conditions are excluded. Surcharges are often added to a policy after a claim. The expenses incurred for a serious ailment can exceed the annual maximum benefit. Worst of all are the run-away price increases with some plans costing $75 a month and more! Rumor has it, some are lobbying congress to include coverage for non-human family dependents under an expansion of the new federal health insurance program.
Quote of the Month
My mother drew a distinction between achievement and success. She said that 'achievement is the knowledge that you have studied and worked hard and done the best that is in you. Success is being praised by others, and that's nice, too, but not as important or satisfying. Always aim for achievement and forget about success.
Helen Hayes, US actress (1900 - 1993)
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. July's winners are: Randall Reidman @ American Family in Manitowoc, WI
Michelle Lindner @ Wolf Hulbert in Bingham Farms, MI
Dawn Davis @ Andres O'Neil & Lowe in Bryan, 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.
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