Weekly Dispatch: March 7, 2024

March 7, 2024

News

Corporate Transparency Act takeaways for PIA members

The Corporate Transparency Act went into effect Jan. 1, 2024, which aims to make businesses more transparent by having them report who ultimately owns and operates them. Specially, the CTA mandates that business entities defined as “reporting companies” under the law must file reports with the Financial Crimes Enforcement Network disclosing information about their beneficial owners, which are the individuals who directly or indirectly own or control at least 25% of the ownership interests of the entity or exercise substantial control over it. In particular, two exemptions for insurance companies and producers are relevant for PIA members.

N.H: Disaster declaration granted for three counties

On Feb. 27, 2024, Gov. Chris Sununu announced that President Joe Biden granted his request for a major disaster declaration in response to a severe storm and flooding in the month of December that resulted in significant costs to local communities. Carroll, Coos and Grafton counties are included in the declaration. The Federal Emergency Management Agency completed a Preliminary Damage Assessment, finding that the statewide cost for response efforts related to this event totaled $2.6 million. The declaration allows communities in the three counties to move forward with seeking federal funding assistance.

NHID announces annuity transactions protections

The New Hampshire Insurance Department announced on Feb. 28, 2024, the adoption of the National Association of Insurance Commissioners’ revised Model 275 for Suitability in Annuity Transactions, marking a significant step toward bolstering consumer safeguards in the state’s insurance market. Key provisions of Model 275 include requirements related to care, disclosure, conflict of interest management, and documentation. New Hampshire reaffirms its commitment to prioritizing consumer interests and aligning with best practices established by other states and becomes the 42nd state to adopt this language.

N.Y.: Gov. Kathy Hochul propose plans to counter retail theft

The ongoing trend of organized retail theft is rippling across through the retail industry, contributing to store closures that have impacted communities far and wide. This upsurge in coordinated thefts, including smash-and-grab robberies and chronic shoplifting, is dealing a major blow to the financial health of retailers of all sizes. The impact goes beyond inventory loss; it is driving up insurance costs, eroding a sense of safety for employees and customers alike, and in some cases, making it financially untenable for businesses to remain open. In response to the complex challenges retail theft presents, Gov. Hochul’s 2025 Executive Budget includes three Article VII proposals aimed to tackle retail theft more effectively, targeting both its symptoms and causes.

N.Y.: New federal effort will assist SEDI businesses

Gov. Hochul announced that New York will participate in the Initiative for Inclusive Entrepreneurship, a federal effort led by the U.S. Department of Treasury to expand access to capital for socially and economically disadvantaged individual owned small businesses. Announced in October 2022 by Vice President Kamala Harris, the Initiative for Inclusive Entrepreneurship aims to help SEDI businesses and ensure equitable implementation of the U.S. Treasury’s $10 billion State Small Business Credit Initiative—of which New York state received more than $500 million.

N.Y.: State makes moves to shut down illegal cannabis market

On Feb. 28, 2024, Gov. Hochul was joined by representatives of New York’s legal cannabis retailers, including Conditional Adult-Use Retail Dispensary licensees, to announce the state’s steps forward in shutting down the illegal cannabis market. Unlicensed cannabis businesses have continued to open and operate throughout the state, often selling untested product and creating nuisances in communities. Further, these storefronts have stymied the growth of New York’s legal industry and the retailers operating therein. PIA Northeast offers various resources to help members stay updated on this budding issue.

Compliance

N.Y.: Cyber series: Compliance for Class A Companies

New York state’s cyber security regulation (23 NYCRR 500) introduced Class A companies, a new type of covered entities based on their manpower and revenue. To understand what Class A companies need to do stay in compliance, read the newest cyber series installment. Remember: You need to prove you were in compliance with New York state’s cyber security regulations for 2023 by Monday, April 15, 2024. If you are licensed in New York state, this compliance needs to be completed each year. Do you need help? PIA Northeast members can contact the PIA Industry Resource Center, which can offer step-by-step directions to make this process easier. Call (800) 424-4244 or email resourcecenter@pia.org.

Advocacy

PIA supports the bipartisan Freedom to Invest in Tomorrow’s Workforce Act

The Freedom to Invest in Tomorrow’s Workforce Act is a bipartisan bill sponsored by Sen. Amy Klobuchar, D-Minn., and Rep. Rob Wittman, R-Va., would expand expenses covered by flexible education investment accounts, or 529 plans, which are tax-exempt if used to pay for some educational expenses. PIA supports this bill, as it would include the coverage of professional training and credentialing programs, and make 529 more flexible for career changes. If made into law, this bill would make programs more accessible for agents, which would contribute to the overall health of the insurance industry.

Technical

How to make the most out of social media for your agency

Social media is vital for agencies as it is relatively easy to create an account and make content promoting your agency, its services and its products. Plus, most people have some form of social media that they use, from LinkedIn to TikTok. How do you increase your agency’s profile in crowded field and make lasting connections with your audience? PIA members can access Growing your marketing savvy in the digital age—five tips for using social media as a marketing tool in the PIA QuickSource library.

Conn.: 2022 HO program approved

The Insurance Services Office Inc. withdrew the 2022 Homeowners filing in Connecticut due to the Connecticut Insurance Department’s conflict with the cannabis provisions. Having resolved that conflict, the program has been approved effective Sunday, Sept. 1, 2024. There are many interesting enhancements and limitations, and many coverage holes that have been plugged. Included are 13 new forms, 130 revised forms and 11 withdrawn forms in this filing. For more information about the new program, PIA Northeast member can access ISO 2022 HO Program in the PIA QuickSource library.

Conn: New bulletin sets guidelines for AI use

On Feb. 28, 2024, the CID released a bulletin addressing insurers that use artificial intelligence. Bulletin No. MC-25 sets forth guidelines for insurers’ governance of the development, acquisition, and use of certain AI technologies and systems, and advises insurers of the type of information and documentation that the department may request in the context of market conduct investigations and examinations. Connecticut licensed insurers are urged to thoroughly review the CID’s bulletin to ensure alignment with the state’s regulatory expectations.

Vermont WC rates and loss costs do not change on April 1

The National Council on Compensation Insurance did not file new workers’ compensation rates and loss costs for 2024 because the actuarial analysis yielded little change from 2023. Consequently, continue to use the rates, loss costs and loss cost multipliers that were effective April 1, 2023: PIA members can access Vermont 2023 workers’ compensation rates, loss costs and 2023 loss-cost multipliers in the PIA QuickSource Library.

Educating insurance agents

Conn./N.J./N.Y.: How to know your customers’ needs

While insurance agents are many great things, like everyone else, they aren’t mind readers. When interacting with customers and prospects, they must rely on what information the client provides them. Then, agents must analyze what is given to them to determine what is pertinent so they can meet their clients’ needs. The webinar 2024 CPIA 2: Implement for Success, led by John Fear, CPIA, CISR, will provide attendees with the tools to provide solutions to their clients. This webinar will be held on Wednesday, March 13, 2024, from 8 a.m.-4 p.m. This course has been approved for continuing-education credits in Connecticut (2 LH, 5 PC), New Jersey (7 GEN) and New York (7 BR, C1, C3, LA, LB, LSB, PA, PC).

N.J.: Learn about new pay-to-play law changes

With the New Jersey Election Law Enforcement Commission 2024 filing deadline looming on the horizon (Monday, April 1, 2024), now is a good time to review the 2023 pay-to-play law changes. Although the Elections Transparency Act has simplified and streamlined New Jersey’s pay-to-play laws, government contractors still need to pay careful attention to the law and its requirements. Join Rebecca Moll Freed, Esq. of K&L Gates LLP, for this timely, high-level and interactive seminar on Thursday, March 14, 2024, at 11 a.m., to discuss the new law, open questions and recommendations for compliance. You can register for the Stay Between the Lines: N.J. Pay-to-Play Changes seminar here.

Events

Conn.: Meet your legislators at the 2024 Legislative Reception

If you’re looking for the opportunity to speak with Connecticut’s state legislators in an informal setting, then be sure to attend PIACT/CTYIP’s Legislative Reception. This reception will be held Tuesday, March 19, 2024, at the Legislative Office Building in Hartford, from 5–7 p.m. There, you and the state legislators will be able to discuss some of the most pressing issues facing the insurance industry over appetizers and cocktails. Register for the reception here.

Get your tickets for Connecticut Convention now, save 15%!

Time is running out to register for the Connecticut Convention at a discount. This convention will be hosted at the wonderful Foxwoods Resort Casino for two days—March 27-28, 2024. Attendees will have the chance to connect with their fellow professionals across the industry at multiple networking events, and hear from PIA National President Richard A. Savino, CIC, CPIA. You also will be able to earn up to six CE credits by attending courses hosted by PIACT’s Director of Government & Industry Affairs Bradford Lachut, Esq., and popular PIA instructor Steve Lyon, CPCU, CIC, CRM, AAI, ARM, AIS, CRIS, MLIS, AFIS, TRIP. Finally, stop by the sold-out trade show for new products and solutions for all your business needs. The discount ends Thursday, March 14, 2024. Register today for 15% off.