Unfortunately, HB 372 was killed in Senate Judiciary A Committee yesterday. We appreciate all those of you that participated in our grassroots efforts for HB 372, the Omnibus Premium Reduction Act of 2019. As we reported earlier in our grassroots alerts, this committee is heavily weighted with trial attorneys, so we knew it would be near impossible to get this bill through this committee. However, based on testimony by the committee members, it was very obvious they felt the heat from their constituents, so kudos to our members for making those legislative contacts and passing on the important message of our state's need for tort reform through social media. Now we must make this an election issue. We ask that you continue to share LABI's push card on your social media and urge others to vote for pro-business candidates.

On a brighter note, HB 229, our PIA Distractive Driving bill, is still alive. We're still waiting for it to be heard on the House Floor. It's now scheduled for next week, on May 22. We'll keep you posted.

In a recent interview, Acting Federal Emergency Management Agency (FEMA) Administrator Pete Gaynor said Americans must assume more responsibility for protecting themselves from the rising toll of natural disasters. Ahead of the next hurricane season, Gaynor said the agency has made changes to better handle increasingly severe storms, and Congress has given FEMA the ability to spend more money preparing communities for disaster, which is more cost-effective than rebuilding afterward.

However, Gaynor said those changes won't be enough, noting, "We cannot be everything to everyone. This is a partnership." He added, "Our programs don't make you whole, and that's probably one thing that we need to say more often. We would like to be more direct with survivors about what their responsibility is." According to Gaynor, state and local officials also need to do more, starting with imposing tougher building codes.

The escalating threat from unstable weather means that more people should carry flood insurance, Gaynor said. After Hurricane Harvey struck Houston in August 2017, the average payout in emergency disaster assistance was about $4,000, he said. But for people with flood insurance, the average was $130,000.

The National Association of Insurance Commissioners (NAIC) is now exploring how innovative technologies will affect the insurance industry.

At the NAIC Spring Meeting in Orlando, the Big Data Working Group reviewed the regulatory framework for the rate-filing process to accommodate big data models and develop a set of best practices for reviewing these models that are used to justify rates for insurance. The NAIC also is working to address regulatory gaps with regard to the use of chatbots and artificial intelligence (AI) in the sale of insurance, which could lead to increased regulation down the road concerning how licensed insurance agents and brokers use chatbots and AI to sell, solicit, and negotiate insurance. Further, the NAIC is exploring changes to anti-rebating laws and their impact on innovation.

On Saturday, May 11, 2019, fifteen RMI students graduated and joined us as ULM RMI Alumni. Please join me in congratulating and welcoming our new RMI alumni to the industry!

Here is a graduation announcement which includes each new alum's post-graduation plans. If you're interested in learning more about a particular graduate and/or the program in general, please contact the PIA office.

PIA National has submitted comments on the issue of rebating and the current anti-rebating language contained in the National Association of Insurance Commissioners' (NAIC) Unfair Trade Practices Model Act (Model #880).

"…we are concerned that the model, which currently prohibits the giving of, essentially, 'anything of value whatsoever not specified in the policy' to a policyholder, is too restrictive," stated PIA National Counsel & Director of Regulatory Affairs Lauren Pachman, Esq., in a letter to North Dakota Insurance Commissioner and Chair of the NAIC Innovation and Technology (EX) Task Force Jon Godfread.

PIA recommends that language be added "recognizing and permitting the independent agent custom of offering, as a token of thanks, an inexpensive item, such as a product featuring the agency logo, to policyholders periodically and not necessarily concurrently with the signing or renewal of a policy."

The Hartford is dedicated to providing agents with extraordinary customer service, especially when helping agents rollover their flood book. The Hartford Flood program offers an easy enrollment process, dedicated transfer specialist along with hands on service from your local sales director, and special PIA preferred commissions.

The Hartford Flood program is available to PIA members and their policyholders in all 50 states, the District of Columbia and Puerto Rico. Register.

Other upcoming PIA webinars:

3 Ways to Synchronize Teamwork in Your Agency — May 15 at 2 PM ET

Floodbroker.com — June 12 20 at 2 PM ET

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