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Information Security Program of the Insurance Data Security Law

During the 2020 session, the DOI passed this bill that is based upon the NAIC Cyber Security Model Act. The bill had previously been introduced by the DOI for several years over the PIA's objections. While each year the bill was deferred, this time we were able to meet with the DOI along with other interested parties to express our concerns. Through this meeting, we were able to have certain exemptions included in the bill, with the ultimate outcome being that the vast majority of our member agents are exempt.

Importantly, for those that are in compliance with this statute, whether exempt or not, the statute also includes a safe harbor, giving agents that comply with the statute a defense to Cyber liability claims, with a presumption that they are not negligent for a Cyber breach if they are in compliance with these requirements.

Just as important, and the reason for including it in this discussion of this year's legislation, is that the compliance deadline is August 1, 2021. While the bill is too complex to discuss here, those licensees who have fewer than twenty-five employees, less than five million dollars in gross annual revenue, or less than ten million dollars in year-end total assets are exempt from compliance with La. R.S. 22:2504.

There has also been some confusion surrounding the reporting requirements mandated by the bill. While the bill applies to all licensees, the reporting requirements under section I of the statute applies only to "each insurer domiciled in this state," not to insurance agents or other licensees.

To see the most recent copy of the bulletin sent out from DOI regarding this law, click here.

Upcoming PIA Events
08/04/2021 -- North Shore Chapter Breakfast with Nominations

08/05/2021 -- CPIA-1 Webinar

08/11/2021 -- Premium Finance CE Class @ 1 pm - 3pm
(Oak Lodge)

08/11/2021 -- BR Chapter Luncheon @ 11:30 AM
(Oak Lodge)

08/19/2021 -- Personal Lines Misc

08/24/2021 -- NO Chapter Charity Golf
(Loft 18)

09/01/2021 -- NO Chapter Meeting

09/09/2021 -- CPIA-2 Webinar

09/16/2021 -- North Shore Chapter Poker Crawl

09/21/2021 -- Agency Operations Webinar

Disaster Relief Center
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Disaster Relief Center

The Impact of the 2021 Louisiana Legislative Session
— By Louis G. Fey Jr. CPCU, CIC, CRM, AIC — BXS Insurance

The 2021 Louisiana Legislative Session was dominated by bills aimed at addressing concerns over alleged unfair claim practices stemming from the record five hurricanes that struck Louisiana in 2020. While most of the problems experienced by home and business owners were the result of the sheer volume and severity of the claims, coupled with a lack of qualified adjusters to handle them, some legislators seized upon the opportunity to strengthen Louisiana's already substantial unfair claim practice statutes. While there definitely have been some bad actors in handling some of these claims, the vast majority of the problems arose from a lack of qualified adjusters, and the penalties already in place are sufficient to address unfair acts.

Fortunately, PIA and the industry as a whole were able to defeat or water down these bills so that in the end there will be minimal impact upon our industry, with the biggest change being a 15-day requirement to provide a policyholder with the field adjuster's report upon request, an increase of the minimum bad faith penalty under RS:1892 by $1,500 (to $2,500) for claims resulting from declared disasters where there is a late payment, along with the standardization of the appraisal clause already found in most, if not all, property insurance policies.

While the list outlined here is far from complete, I believe these are the most significant, and you can see the complete list of bills PIA was watching here.


Updated NFIP and Mitigation Data Available for Louisiana

Use the FEMA Hazard Mitigation Flood Recovery Status site to view and download recovery data like the total number of NFIP policies by parish and NFIP-participating communities and how many NFIP flood claims your parish had from the 2020 hurricanes and the late May flooding.

Click here to view and download your data. Sign in as a guest for ease of use. The HM Recovery Spreadsheet will give you data from across the state. The Parish PDF Snapshot will give you a quick look at just your parish and the communities therein. Click here for more information about the Flood Recovery Portfolio.

FEMA CE Opportunities on Coming Changes to National
Flood Insurance Program

The National Flood Insurance Program (NFIP), through which many PIA members sell flood insurance, is administered by the Federal Emergency Management Agency (FEMA). As you may recall, FEMA is updating the NFIP's risk rating process through the implementation of a new methodology known as Risk Rating 2.0. FEMA has scheduled agent-specific training sessions. Please find below a schedule of July dates (and Save the dates for August).

Please note that each session is limited to 1500 attendees. If members find that their preferred session is full, please let us know so that we can encourage FEMA to provide additional opportunities beyond those listed here.

July 1 10 a.m. - noon Central Time REGISTER
July 7 10 a.m. - noon Central Time REGISTER
July 13 2 p.m. - 4 p.m. Central Time REGISTER
July 20 2 p.m. - 4 p.m. Central Time REGISTER
July 22 10 a.m. - noon Central Time REGISTER
July 29 2 p.m. - 4 p.m. Central Time REGISTER

SAVE THE DATE FOR UPCOMING SESSIONS: August 10, 12, 17, 19, 24, 26, and 31.

To register, please use the links above. These webinars are FREE to attend, but spaces are limited, so please register early.

Insurance agent continuing education course approval and credits vary by state. Please CLICK HERE for information about your state.

If you have any questions, please reach out to Lauren Pachman, PIA National's Counsel and Director of Regulatory Affairs, at Lpachman@pianational.org.

PIA Opposes Narrowing "Independent Contractor" Definition

PIA is raising concerns about the draft legislative text of the Unemployment Insurance Modernization Act, which is being championed by Senator Ron Wyden (D-OR), Chairman of the Senate Finance Committee, and addresses unemployment insurance reform. Specifically, the discussion draft would require states to use an "ABC test" to determine whether a worker is considered an independent contractor or an employee.

The ABC test would essentially create a presumption that all services performed by someone for pay constitute "employment," unless the employer can satisfy all three elements of the ABC test.

Using the ABC test, insurance agents who are independent contractors could be forced into "employee" status by virtue of their contractual relationship with the carriers they work with and their supervision by their carrier partners.

This change would upend the employment classification of independent agents and, by imposing federal law on our state-based insurance regulatory system, threaten the very existence of that system. PIA will continue to oppose any legislation that would substantially narrow the definition of independent contractors to the detriment of independent insurance agents.

Thanks to Our 2021 PIA Partners:
Capital Premium Financing Gulf States Insurance Co. LRA-SIF LUBA Workers' Comp
Maison Insurance Markel Specialty National General, an Allstate company SafePoint Insurance SageSure
Professional Insurance Agents of Louisiana
4021 W. E. Heck Ct., Building K • Baton Rouge, Louisiana 70816
(800) 349-3434 • (225) 766-7770 • (225) 766-1601 (fax)