PIA of Louisiana's 72nd Annual Convention
July 25-28, 2015 • Perdido Beach Resort
Orange Beach, AL
Watch PIA's 10-Year Anniversary of Hurricanes
Katrina and Rita Video
Review of 2015 Legislative Session
The 2015 Louisiana Regular Legislative Session came to a
close sine die on Thursday, June 11, 2015. While the 2015
legislative agenda was fairly quiet from an insurance
perspective, largely due to the emphasis placed on State
budget concerns, there were a number of notable bills that
passed with the support of the PIA of Louisiana.
HB215 (LaBas) was signed into law as Act 15. This act now allows
producers to respond to allegations of wrong doing prior to any
regulatory action. Insurance agents and producers can now respond
to such allegations and if able to "show cause" (as to why
regulatory action should not be taken), avoid regulatory action.
Previously, even if a producer was found to be innocent in such
actions, he or she would be required to disclose the regulatory
action on any application for licensing. This will provide
producers with a means to head off such actions that are based
upon unsupportable allegations.
SB172 (Morrish) Provides regulation of insurance for Transportation
Network Companies such as "UBER" and "LYFT". Previously there were
potential gaps in coverage due to the livery exclusions found in
most personal auto policies. After the issue was highlighted by
the Louisiana P&C Commission, senator Morrish spearheaded this
legislation, resulting in assurance that such "ride sharing"
arrangements are fully insured from the time the ride sharing
app. is turned on, until the passengers exit the vehicle.
HB673 (Huval) was with regard to the licensing of Insurance
Consultants. This issue was referred to the House Committee
on Insurance, where the PIA, in conjunction with the Department
of Insurance and other industry groups, will study the issue
with the intent of putting forth legislation next year.
The governor has until August 16 to sign, veto, or allow
legislative measures to pass without his signature.
Overall we feel that there were some very useful and
pro-industry legislative initiatives that have now become
law, or that have progressed, in part due to the support
of your PIA of Louisiana.
to find a summary of the bills PIA monitored
this session and the status of each at the close of the session.
The United State Supreme Court ruled last week to uphold the
availability of tax credits on the federal exchanges. Please
here a one-page summary of the opinion.
PIA Advocates for
Key Fixes to ACA Following Decision
Immediately after the Supreme Court's decision upholding subsidies
in the Affordable Care Act (ACA), PIA advocated for two key fixes
to the healthcare law. In an
interview with A.M. Best's BestNews,
PIA said Congress should pass two bills: one removing independent
agent compensation from the calculation of medical loss ratios
(MLRs); and the other repealing the 40% excise tax on so-called
"overly generous" employer-sponsored health plans, known as the
"Congress needs to fix this," said PIA National Executive Vice
President & CEO Mike Becker, referring to the MLR. "The current
interpretation of the MLR formula is hurting independent agents
and the individuals and small businesses they serve."
Regarding the Cadillac Tax, PIA National Director of Federal
Affairs Jon Gentile says it has to go. "PIA strongly supports
a repeal of the 'Cadillac Tax' because it will impact not just
high-benefit plans, but moderate-benefit plans, and it could
have an unequal impact based on the age, gender, family size
and geographic location," stated Gentile. On June 26, PIA was
joined by a coalition of 18 business groups, including the
American Benefits Council and the U.S. Chamber of Commerce,
in seeking a repeal of the tax.
Upcoming PIA Events
New Orleans Chapter Meeting
07/25/2015 -- PIA of Louisiana 72nd Annual Convention
YIPs Hospitality Suite
07/26/2015 -- PIA of Louisiana 72nd Annual Convention
07/27/2015 -- PIA of Louisiana 72nd Annual Convention
07/28/2015 -- PIA of Louisiana 72nd Annual Convention
08/04/2015 -- North Shore Chapter Meeting
08/12/2015 -- Baton Rouge Chapter Meeting
CISR William T Hold
CISR Dynamics of Service
PIA-endorsed MLR Bill Introduced
A bill that PIA strongly supports, the Access to Independent
Health Insurance Advisors Act (S.1661), was introduced in on
June 24 in the U.S. Senate. Sponsors Sens. Chris Coons (D-Del.)
and Johnny Isakson (R-Ga.) said the legislation that will ensure
health insurance agents and brokers can continue to provide
essential counseling and advocacy services to consumers looking
for the right health insurance coverage.
"Our priority should always be to protect consumers and small
businesses, ensuring they have access to the best possible
healthcare coverage," said Sen. Coons. "Our bipartisan bill
will fix a provision in the healthcare law that is currently
making it harder for independent agents and brokers to stay
in business and serve consumers."
S.1661 addresses a provision of the Affordable Care Act (ACA)
known as the medical loss ratio (MLR) that has had unintended
consequences for licensed independent agents and brokers and
their employees. Due to the Department of Health and Human
Services' (HHS) interpretation of the medical loss ratio
provisions in the health reform law, health insurance carriers
are required to treat agent and broker commissions as part of
their administrative costs. This, in turn, threatens the
ability of independent agents and brokers to stay in business
and serve the public.
PIA supports S. 1661 and companion legislation already
introduced in the House, H.R.
Federal Banking Regulators Issue Flood
On June 22, the Federal Reserve, the Farm Credit Administration,
the Federal Deposit Insurance Corporation (FDIC), the National
Credit Union Administration and the Office of the Comptroller
of the Currency finalized a joint final rule regarding loans
secured by properties located in special flood hazard areas.
The final rule implements provisions of the Homeowner Flood
Insurance Affordability Act of 2014 (HFIAA).
What It Means
to Agents: The rule generally requires regulated
lending institutions to escrow flood insurance premiums and
fees for loans secured by residential improved real estate or
mobile homes that are made, increased, extended or renewed on
or after January 1, 2016, unless the loan qualifies for a
The rule requires institutions to provide borrowers of
residential loans outstanding as of January 1, 2016, the
option to escrow flood insurance premiums and fees.
The rule includes a statutory exemption from the requirement
to purchase flood insurance for a structure that is a part
of a residential property if that structure is detached from
the primary residence and does not also serve as a residence.
However, lenders may nevertheless require flood insurance
on the detached structures to protect the collateral securing
This rule does not address the private flood insurance
provisions in the Biggert-Waters Act. The agencies plan to
address these provisions in a separate rulemaking. The rule
also implements provisions in the Biggert-Waters Flood
Insurance Reform Act of 2012 (the Biggert-Waters Act) relating
to the force placement of flood insurance. The text of the full
rule can be found
Natchitoches Parish Flood Maps
Become Final in July
New flood maps for Natchitoches Parish will become effective
early next month.
Local, state and federal officials encourage everyone to view
the maps before Monday, July 6, 2015 in order to understand
their flood risk and then consider buying flood insurance.
here for the entire story.
Thanks to Our 2015 PIA Partners:
American Strategic Insurance (ASI)
Capital Premium Financing
LUBA Workers' Comp
Stonetrust Commercial Ins. Co.