PIA of Louisiana's 73rd Annual Convention
July 9-12, 2016 • The Grand Hotel
Point Clear, AL
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PIA Legislative Update

We appreciate all those of you have participated in our grassroots efforts! Again, we experienced some nice successes this past week and below you can find a status of the bills that we were actively involved in:

HB 932 (Rep. Davis) is a PIA bill and the purpose of it is to reinstate the Louisiana insurance agents' Continuing Education exemption for attained age of 65 years and 15 years of continuous licensing. This bill, after passing on the House side, was passed in the Senate Insurance Committee. It now goes to the Senate floor.

HB 352 (Huval) PIA strongly opposed this bill that would require insurance producers and adjusters to retain records for 5 years. In its current form, the bill would require individual producers and adjusters to maintain all records; even if those records belong to the company they work for. Obviously, if a producer or adjuster leaves the company they work for, they can’t take records with them, and they would therefore be in violation. This bill was killed in the House Insurance Committee.

HB 935 (Rep. Hollis) is also a PIA bill that we worked with the Louisiana Department of Insurance to get introduced to clarify that insurers are required to notify insureds of any changes in coverage at renewal. While this requirement is outlined in the Louisiana Policyholders Bill of Rights, there is no direct statute on point. HB 935 will remove all ambiguity, and will make it clear that insurer must disclose any change in coverage when renewing a policy of insurance. This bill was voluntarily deferred.

HB 663 (Rep. Thibaut) Requires 6 months' notice to non-captive insurance producers prior to an insurance company terminating a producer appointment. As many of you have recently experienced, insurers have exited our state without adequate notice. This statute would prevent such abrupt exits and allow agents the time necessary to find alternative markets for clients. This bill, after passing on the House side was passed in the Senate Insurance Committee. It now goes to the Senate floor.

PIA-Endorsed Private Flood Bill Passes House

PIA is applauding the U.S. House of Representatives for passing a bill designed to encourage a private flood insurance market. The House passed the Flood Insurance Market Parity and Modernization Act (H.R. 2901), in a bipartisan voice vote on April 26. A recorded vote—expected to be a formality—was expected later in the evening.

"This legislation seeks to encourage the development of a private flood insurance market, with strong consumer protections being overseen by state insurance regulators," said PIA National Vice President of Government Relations Jon Gentile. "We thank the bill's sponsors Reps. Dennis Ross (R-FL) and Patrick Murphy (D-FL) for their leadership on this important issue." A companion bill, S. 1679, introduced by Senator Dean Heller (R-NV), awaits action in the Senate.

The bill will expand flood insurance options for consumers by clarifying the definition of a private flood insurance policy as that which provides flood insurance coverage issued by an insurance company that is licensed and approved by the state insurance regulator. "It ensures that private flood insurance can be used to satisfy the National Flood Insurance Program's (NFIP's) continuous coverage requirement, an essential aspect of ensuring policyholders are not penalized for moving from one policy to another," Gentile said.


Upcoming PIA Events
05/11/2016 -- CISR Agency Operations
(Baton Rouge, LA)

05/11/2016 -- Baton Rouge Chapter Meeting

05/12/2016 -- CISR Agency Operations
(Kenner, LA)

05/17/2016 -- Acadiana Chapter Meeting

05/18/2016 -- CPIA-3 Sustain Success
(Lafayette, LA)

06/07/2016 -- North Shore Chapter Meeting

06/07/2016 -- Northeast Chapter Meeting

06/08/2016 -- Northwest Chapter Meeting

06/08/2016 -- Baton Rouge Chapter Meeting

06/09/2016 -- North Shore Chapter Poker Run, CE, Trade Fair and Captain's Party

Virtual Exhibit Hall

Check out our
Virtual Exhibit Hall

ACA Premiums Expected to Rise Sharply

Many insurers have lost money in the Affordable Care Act (ACA) marketplaces, partly due to the fact that they set their premiums too low when the plans began in 2014. Now experts say insurers likely will seek substantial rate increases. Given that the ACA tax credits typically cushion the blow, it is difficult to gauge the ultimate impact of these impending rate hikes on consumers. Only 15 percent of enrollees through the ACA exchanges do not receive a tax credit, and experts note that not all will bear the full burden of price hikes due to their ability to shop around for the best deal.

"The market continues to react to the ACA, and we expect at least another year of increases (some well into the double digits) before rates start to stabilize," said Kevin Walters, a spokesperson for Tennessee Insurance Commissioner Julie Mix McPeak. The Obama administration has sought to get out in front of the coming ObamaCare premium hikes, in part by downplaying their likely impact. A report released by the Department of Health and Human Services (HHS) this month, for example, asserted that once the law's tax credits are factored in, the effects of premium increases on consumers would be modest.

UnitedHealth to Exit ACA in 22 States

UnitedHealth Group Inc. will leave the Affordable Care Act (ACA) health insurance marketplaces in at least 22 states to stem losses related to the law. The company has not listed the markets it is leaving, but confirmations of the withdrawals have been coming in from state regulators in the 34 states where the company sold plans for this year.

Bloomberg reports that UnitedHealth is withdrawing from the following states: Alabama, Arizona, Arkansas, Colorado, Connecticut, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Missouri, Nebraska, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Washington. New York and Nevada have confirmed that UnitedHealth will remain on their ACA exchanges for 2017, and the company has filed plans to participate in Virginia as well. UnitedHealth's intent for its ACA marketplace plans in the remaining nine states in which it was active remains unknown.

Thanks to Our 2016 PIA Partners:

American Strategic Insurance (ASI)

Capital Premium Financing

LUBA Workers' Comp

Markel FirstComp

Prime Rate Premium Finance Corporation

Stonetrust Commercial Ins. Co.