PIA of Louisiana's 71st Annual Convention
July 19-22, 2014 • The Grand Hotel, Point Clear, AL
 
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PIA Legislative Update

We want to thank all of you that have been contacting your legislators! We had a good week, killing some bad bills like HB 114 by Representative Connick, which would have extended the prescriptive period and HB 1218 by Representative Greene that would have required insurers show whether the insured has UM coverage on the auto ID card. On the tort reform front, HB 917 by Representative Ray Garofalo (R-Chalmette) hit a major setback on the House floor on Tuesday and is likely dead for this legislative session. Utilizing a highly unusual procedural move that has not been seen in at least a decade or more, HB 917, which sought to lower the monetary threshold for jury trials from $50,000 to $0 was tabled on a 51-49 vote. This tabling procedure did not even give the bill a hearing on the House floor due to its immediate stop on all further proceeding of the legislation at that time. To bring the legislation back up on the House floor would now require a 2/3 vote of the entire chamber. Please be on the lookout for other bills we need you to take action on!





June Revisions to NFIP Flood Insurance Manual

The latest revisions to the NFIP Flood Insurance Manual that will become effective on June 1, 2014, have now been posted by FEMA/NFIP.

w-14013 — This is the notice of the June 2014 Revisions to the NFIP Flood Insurance Manual incorporating the modifications that were issued in February. Please remember that in these changes, the National Flood Insurance Program (NFIP) is again modifying the definition of what constitutes a primary/principal residence for underwriting and rating purposes, but that the higher standard for that definition will still apply at the time of claim.

w-14006 — Note that this bulletin delays one of the original June 1instructions regarding duplicate policies.

w-14014 — Section 3 of the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370). This bulletin provides further underwriting clarification as to the nature of properties H.R. 3370 covers. It advises that effective May 1, 2014, the Federal Emergency Management Agency (FEMA) is requiring the WYO Companies and the Direct Servicing Agent to use the appropriate October 1, 2013, Pre-FIRM Rate Tables; and also provides a listing of exactly what properties will or will not qualify under this standard. This bulletin also thanks all for their continued cooperation as FEMA/NFIP continues to work-out the many further details of this new law.

However, this needs to be read in context with the previously issued bulletin w-14011, which provided the first set of underwriting guidance for H.R, 3370, and is discussed further in item #6.

Upcoming PIA Events
04/24/2014 -- Acadiana Crawfish Boil

04/29/2014 -- CPIA-1 Position for Success
(NorthShore)

05/01/2014 -- Baton Rouge Chapter Crawfish Boil

05/07/2014 -- PIA of New Orleans Crawfish Boil

05/08/2014 -- CISR Commercial Casualty-1
(Shreveport)

05/09/2014 -- CISR Commercial Casualty-1
(Lafayette)

05/13/2014 -- CISR Commercial Casualty-1
(New Orleans)

05/14/2014 -- Baton Rouge Chapter Meeting

05/14/2014 -- 1752 Club's Day at the Races
(Evangeline Downs)

05/14/2014 -- CISR Commercial Casualty - 1
(Baton Rouge)



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2013 Annual Convention
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FEMA/NFIP Issues Preliminary Overview
of H.R. 3370 Implementation

Federal officials are out with a preliminary overview of the implementation of the Homeowner Flood Insurance Affordability Act of 2014 (H.R. 3370), which was signed into law by President Obama on March 21, 2014. This law repeals and modifies certain provisions of the Biggert-Waters Flood Insurance Reform Act, which was enacted in 2012, and makes additional program changes to other aspects of the program not covered by that Act. Many provisions of the Biggert-Waters Flood Insurance Reform Act remain and are still being implemented.

FEMA/NFIP notes that "It is not possible for changes to happen immediately. While the new law does require some changes to be made retroactively, applying to certain policies written after July 6, 2012, other changes require establishment of new programs, processes, and procedures. This bulletin offers some details and notes that additional guidance on some issues will be issued in the months ahead. (See some of these in the previous item, #5).

The Flood Insurance Producers National Committee (FIPNC), chaired by PIA National President-elect Richie Clements and the Institute for Business and Home Safety (IBHS) (a group for WYOs), are continuing to work with FEMA/NFIP. We asked FEMA/NFIP to issue an outline as soon as possible which includes those matters already decided.

w-14011 Overview on the Homeowner Flood Insurance Affordability Act of 2014
(HR 3370) [4/3/14]




Bill to Extend TRIA Is Introduced in the Senate

A bipartisan bill (S. 2244) to reauthorize and extend the Terrorism Risk Insurance Act (TRIA) was introduced April 10 in the U.S. Senate by Sens. Charles Schumer (D-N.Y.) and Christopher Murphy (D-Conn.).

Under the proposed legislation, insurers' copays would be raised to 20 percent from 15 percent. In addition, the recoupment of federal payments will be mandatory if the insurance industry's aggregate compensation loss is less than $37.5 billion, up from the current sum of $27.5 billion. This increase would be phased in over a period of five years.

PIA lobbied for the creation of TRIA in 2002 and has since strongly supported each of its reauthorizations. The current reauthorization expires on December 31, 2014. During the just-completed PIA Federal Legislative Summit (FLS), PIA members from around the country met with their representatives and senators, emphasizing the importance of renewing TRIA. PIA agents from New York and Connecticut met with Sens. Schumer and Murphy.

"PIA strongly supports the reauthorization of TRIA, in a manner in which all companies, small and large, have an opportunity to participate," said PIA National Director of Federal Affairs Jon Gentile. "Failure to re-authorize TRIA in a timely fashion could have dire consequences on the nation's economy and ability to rebound from a terrorist attack."

PIA is concerned that any further changes to TRIA could lead to small and mid-sized carriers, the life blood of many markets, being shut out of the market, an outcome that would be detrimental to many communities.

S. 2244 is co-sponsored by Sens. Dean Heller (R-Nev.); Mark Kirk, (R-Ill.); and Mike Johanns (R-Neb.). Following its introduction, it was referred to the Senate Committee on Banking, Housing, and Urban Affairs.






Thanks to Our 2014 PIA Partners:
                     

Americas Insurance Company


American Strategic Insurance (ASI)


Capital Premium Financing


FirstComp

LCTA Workers' Comp

LUBA Workers' Comp

Prime Rate

Stonetrust Commercial Ins. Co.