Weekly Dispatch: March 2, 2023

March 2, 2023

News

Is Gen Z forgoing an insurable milestone?

Once a rite of passage to freedom and independence, obtaining a driver’s license at age 16 was considered a general milestone. However, data compiled by the Federal Highway Department is indicating that Gen Zers are not feeling the same way about obtaining a driver’s license. Those individuals born between 1996-2012 have begun to shy away from getting their licenses and even are opting to divert reliance on cars entirely. Studies also have shown that Gen Zers trust and want advice about insurance from professional independent agents. So, those in the insurance industry need to take this growing trend into consideration when engaging with Gen Zers about their insurance needs. Remember, Gen Zers appreciate individuality, flexibility, ethics, and transparency, so keep these values in mind during your conversations with individuals from this generation.

Coastal insurance market update–2023

The catastrophic loss claims caused by severe weather over the last five years has been driving pricing for insurance. Professional insurance agents need to be up front and honest with their clients about what is going on in the coastal insurance marketplace. They know their clients see advertisements on TV from numerous insurance companies—however, not many of those companies write new business on the coast. Educating clients about the current state of the coastal insurance market is a great way to show the value of working with an independent insurance agent.

Conn.: Auto coverage and rate changes for Hyundai and Kia policies due to auto theft

The Connecticut Insurance Department issued a notice to insurance carriers regarding recent Hyundai and Kia theft issues, and the filings carriers must make with the CID before any change to auto insurance rates or underwriting rules. In recent weeks, the media has reported on the design flaws in certain Kia and Hyundai models that have resulted in scores of vehicle thefts across the country. The CID is aware that in some states, automobile insurers advised their agents and state insurance regulators of their intent to cease providing coverage or to increase rates for Hyundai and Kia vehicles owners.

Severe tornado-like thunderstorms devastate central N.J.

Most of central New Jersey experienced an unexpected storm, resulting in ripping winds that knocked down many trees last week. Some cars and homes also were affected. Mercer, Middlesex and Monmouth counties took the brunt of this tornado-like thunderstorm. This is a reminder that severe weather can happen anywhere at any time. It’s a good time to have conversations with your clients about their storm-related insurance coverages. PIA offers resources through its Storm Info Central and PIA Design & Print. For more information on Storm Info Central, email PIA’s Industry Resource Center. For more information on how PIA’s Design & Print can help you connect with your insureds as the winter continues, email Design & Print Account Manager Darel Cramer.

New York and Vermont request major disaster declarations from President Biden

Both New York Gov. Kathy Hochul and Vermont Gov. Phil Scott have requested major disaster declarations from President Joe Biden for the storms that affected various sections of New York state and Vermont in December.

Compliance

Regarding electronic policy delivery and their procedures

You may have sent thousands of documents electronically, but are you sure you did so correctly? While a federal law to address this issue passed in 2000, PIA Northeast fields many questions on this topic each year. Remember, prior to sending any insurance documents electronically, insurance agents are required to provide their insureds with a consent statement to acknowledge. The content of the consent statement needs to address the how, what and what-happens-when of electronic delivery. PIA members can find more on this topic by accessing Do you have a procedure for handling emails from your clients? in the PIA QuickSource library.

Advocacy

Flood insurance coverage bill introduced in Congress

Reps. Kathy Castor, D-Fla., and Blaine Luetkemeyer, R-Mo., reintroduced H.R.900, the Continuous Coverage for Flood Insurance Act. The bill, which is supported by PIA, would provide continuous coverage protection to policyholders who leave the National Flood Insurance Program to purchase a private flood policy and then need to return to the NFIP. The bill would allow consumers whose private-market flood policies are canceled in the middle of a policy year—through no fault of their own—to return to the NFIP and purchase a policy at their previous rate. Without continuous coverage, consumers with subsidized NFIP policies are effectively penalized with higher rates for attempting to return to the NFIP after leaving it for the private market.

Priority ‘bait and switch’ bill introduced in N.Y. Assembly

On Feb. 22, 2023, Assemblyman David Weprin, D-24, the new chair of the Assembly Insurance Committee, introduced A.4668, which would restrict the harmful “bait and switch” practice in personal auto insurance in the state Assembly. Bait and switch is the colloquial term used to describe when an insurance company verifies an insurance applicant’s driving history after the applicant has paid the premium on a personal auto policy. This is a PIANY legislative priority for the legislative session.

Technical

UPC in liquidation

An Order of Liquidation for United Property and Casualty Insurance Co., was entered on Feb. 27, 2023, by the Department of Financial Services of the State of Florida. The liquidation order states all United Property and Casualty Insurance Co. policies will be canceled at their normal expiration date of the policy, upon replacement or effective Wednesday, March 29, 2023, at 12:01 a.m., whichever is earlier. The bar date set for the receipt of claims and supporting evidence is Feb. 27, 2024, at 5 p.m. (EST). The proof of claim form will be available in the immediate future. Any claims received after this date will not be considered for payment. A policyholder FAQ is available. More information on insolvency is available to PIA members in the PIA QuickSource library, including: advice for agents and brokers; and suggestions for insurance producers; and producer responsibility. There also is state-specific advice for New Jersey and New York.

Educating insurance agents

N.Y.: New classes that meet the New York State Department of Financial Services’ new CE requirements are available online and in private on-site sessions.

Webinar: Sell PIA cyber insurance to your clients

You are invited to attend a PIA-member webinar that will discuss how to sell the PIA enhanced cyber insurance product to your clients. The webinar will be held Tuesday, March 14, 2023, starting at 2 p.m. Small- and mid-sized businesses are vulnerable to security threats. PIA and ABA Insurance Services have worked with Great American E&S Insurance Co. (rated “A+” by AM Best) to create a cyber insurance program tailor-made for your clients. During the webinar, you will receive an overview of the: PIA cyber insurance program, coverage highlights, submission process, and commission structure. There also will be a Q&A session. Register today.

Next week: Tri-state YIP offer webinar on E&O exposures

The Young Insurance Professionals in Connecticut, New Jersey and New York will host Cutting Edge E&O Exposures, on Friday, March 10, 2023, via Zoom, staring at 9 a.m. Join instructor Steve Lyon, CPCU, CIC, CRM, CRIS, AAI, ARM, AIS, MLIS, AFIS, TRIP, who will discuss significant errors-and-omissions coverage issues, and how to address them with your clients. Register today: Connecticut (3 PC); New Jersey (3 GEN); and New York (3 PC, BR, C1, C3, LA, LB, LSB).