Regular Legislative Session Ends Early and
Special Session Starts Now

HB 619 was heard on the Senate the last week of the Regular Session, but several amendments were added on that completely gutted the bill to where, if passed, it would have been worse than the current law. Due to these amendments, Rep. Huval decided to just let the bill die. We want to thank Rep. Huval for carrying this bill and all the work he put into it, as well as our own President Lou Fey. We want to thank our members who provided personal testimony because unfortunately they lost loved ones due to distracted driving: Suzanne Salter, of LWCC and Brooke Bouy, of First Insurance Funding. We also want to thank all our members who contacted their legislators! We will continue our efforts toward making Louisiana a safer and better place to insure!

Be on the lookout for a final report of the Regular Session and the bills we were watching as well as their current status to be emailed to you, but for now if you want to check that out you can access it from our site on the Governmental Affairs tab or by clicking here.

FEMA: Don't Count on Feds Right After Hurricanes

At the annual Governor's Conference on Hurricanes in Florida, the Federal Emergency Management Agency (FEMA) warned local governments not to count on the federal government to step in immediately after a natural disaster. FEMA Administrator Brock Long stressed that federal agencies that offer disaster assistance were stretched thin after the 2017 hurricane season and wildfires.

"I'm asking you to consider pre-event management concepts," Long told officials, urging them to devise ways to provide food and water and essential services to their own communities. He urged local and state governments to strengthen their own capabilities to ensure communication systems and cleanup efforts.

With the start of the six-month Atlantic hurricane season, Long said FEMA isn't "going to back away" when disasters strike. But he said local and state capabilities need to be strengthened, such as signing deals with private water bottlers and debris haulers and hardening local communications systems. In terms of the National Flood Insurance Program (NFIP), Long said both its affordability and its solvency issues need to be addressed.

Upcoming PIA Events

06/28/2018 -- Northwest Chapter Meeting

07/11/2018 -- New Orleans Chapter Meeting

07/14/2018 -- PIA of Louisiana 75th Annual Convention

07/14/2018 -- PIA Convention Sponsorship
(Point Clear, AL)

07/15/2018 -- PIA of Louisiana 75th Annual Convention

07/16/2018 -- PIA of Louisiana 75th Annual Convention

08/08/2018 -- Baton Rouge Chapter Meeting

08/09/2018 -- 1752 Club Saints Kickoff Party
(Metairie, LA)

08/14/2018 -- North Shore Breakfast Chapter Meeting

08/21/2018 -- CPIA Update Class: Advanced Commercial Lines
(Baton Rouge)

More...

Virtual Exhibit Hall

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Virtual Exhibit Hall

Disaster Relief Center

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Disaster Relief Center

PIA Asks Tax Law Authors to Urge IRS
for Pass-Through Clarification

On May 14, PIA sent a letter to House Ways and Means Committee Chairman Kevin Brady (R-TX) and Senate Finance Committee Chairman Orrin Hatch (R-UT) requesting that they either work with the Internal Revenue Service (IRS) and the administration to ensure that owners of independent insurance agencies benefit from the maximum allowable pass-through deduction or include clarifying language in any technical bill that is passed by Congress. While the new law provides provisions that will result in savings for some pass-through entities, the benefit is limited by an income threshold and a categorical exclusion that may prevent some PIA members with pass-throughs from benefiting from the new deduction. Whether insurance agencies are excluded may remain unknown until the IRS issues regulations or guidance pertaining to the new law.

SC Gov Signs Insurance Data Security Bill

South Carolina Gov. Henry McMaster (R) signed the South Carolina Department of Insurance Data Security Bill into law. South Carolina will be the first in the nation to pass a cybersecurity bill that requires insurers to establish a strong and aggressive cybersecurity program to protect their companies and their consumers from a data breach. Officials say this law will be a model for other states to adopt as data security becomes an issue for every industry.

South Carolina Insurance Director Raymond G. Farmer chaired the National Association of Insurance Commissioners Cybersecurity (EX) Working Group that drafted the law. "South Carolina is now the first in the nation to pass a comprehensive data security insurance law," said Farmer. "This sets South Carolina apart and shows we are dedicated to keeping insurance information safe."

The law creates rules for insurers, agents and other licensed entities covering data security, investigation and notification of breach. This includes maintaining an information security program based on ongoing risk assessment, overseeing third-party service providers, investigating data breaches and notifying regulators of a cybersecurity event.

PIA Disappointed By Failure of Farm Bill in House

PIA is disappointed by the failure of the U.S. House of Representatives to pass a 5-year reauthorization of the Farm Bill, H.R. 2. On May 18, the bill failed by a vote of 198-213 on the House floor.

The Farm Bill was derailed by a dispute among Republican lawmakers over unrelated immigration issues.

"While the House may have failed to pass this bill, the door is still open to pass a Farm Bill before the September 30th deadline. The concern now lies in whether there will be enough time to do so, however, as Congress still has several big-ticket items on its agenda, such as reauthorizing the National Flood Insurance Program before its July 31st deadline, and it being an election year," Gentile said.

"PIA hopes that Congress can do what is right for rural America and pass a Farm Bill that protects crop insurance and recognizes the vital role played by independent insurance agents in the delivery of the federal crop insurance program."

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