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PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016
Professional Insurance Agents Association of Virginia
& the District of Columbia, Inc.
8751 Park Central Drive, Suite 140
Richmond Virginia, 23227
www.piavadc.com │ [email protected]
Volume 79, No. 13
Welcome New Members
PIA of VA & DC would like to welcome the following new
members to the PIA Family:
Rebecca Brown, Brown’s
Insurance Agency, Inc.
Thomas C. Brown, Thomas C.
Brown Insurance Agency, Inc.
Christina Dimitriou, Brown’s
Insurance Agency, Inc.
Stacy Hall, HSH Insurance &
Safety Services
Dylan Kowal, Markel Specialty
Commercial
Jenny Oh, Corner Stone
Financial
Joshua Oh, Corner Stone
Financial
Harold Tracy, Utica National
Insurance Group
Marc A. Turner, HSH Insurance
& Safety Services
Chelsea Wiktorowski,
Centerville Insurance Agency
Teresa Wilson, HSH Insurance
& Safety Services
Marshall Wootten, Wootten
Insurance Agency, Inc.
Feature Articles
p3—E&O Risk Management Alert
p6-8—VA Regulatory Hot Tip
p12—Hobbyist Drones
P14—Agency Marketing Guide
p20—PIA Class Schedule
Association Executive’s Update
It’s been one hot summer. Too hot! So as I kick back with a cold
iced tea, I am able to reflect on my first year as your Association
Executive. And what a year it’s been!
You will be glad to hear that your Association is bigger and
stronger than it was a year ago with more members at every level.
Financially, we are enjoying a solid year with revenues and margin
exceeding budget.
Our 80th Annual Convention at Virginia Beach was a huge success
with over 400 attendees!
We have brought out new member benefits including a 401k MEP
and a payroll service with a 10% discount to membership.
We have partnered with Voldico, an organization who works closely
with agencies to give them access to markets, backroom support,
risk placement expertise and even loans to help them get up and
running or expand their business.
Our new officers and committees are in place. Our young
professionals on the YPC are planning several fun social events.
Our Education programs are going strong with thousands of agents
participating this year.
But despite this flurry of new activity we have remained true to our
mission statement –
“Providing legislative representation, quality
professional educational development and
superior membership services”
We are here to serve you and to represent you. We are your
resource for insurance and business related questions. Please call
me or my staff if you need assistance or answers.
Personally, I’m looking forward to the cooler weather of Fall,
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 2
Sept. 28-29—Ruble Graduate Seminar—Virginia Beach Sept. 28-Oct. 1—Commercial Property Institute—Virginia Beach Oct. 26-27—Ruble Graduate Seminar—Roanoke
Nov. 30-Dec. 3—Life & Health Institute—Richmond
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 3
E&O Risk Management Alert
By Mary LaPorte, CPCU, CIC, LIC, CPIA
Agent’s questions about Errors and Omissions, and
how E&O losses can be prevented.
Q: I am a Commercial Account Manager in a very busy agency. All of us
Account Managers are struggling to stay on top of our work, and it seems that
we are always behind. At first, we thought it was because we didn’t have enough people to do the
work, but our boss insists we are adequately staffed when compared to agencies of a similar size. So
we put our heads together to try to figure out where we are spending most of our time and were
surprised that we all came up with the same answer. It’s the producers! They are bringing in new
business for us to quote, complete applications, create submissions, etc. They rarely give us enough
information or the correct information to get a quote, and certainly not enough put a submission
together. We spend most of our time going back and forth to them trying to get missing information
so we can do our job. When we email them, they don’t get back to us, and we need permission to go
direct to the customer. Sometimes we “guess” at information so we can get the quote done and off
our desk, but point out to the producer that the quote was based on a certain assumption. We are
afraid that they don’t always pay attention to that so it could lead to misunderstandings with the
customer or the company. Do you have any suggestions as to how we can minimize errors and at the
same time re-train the producers?
- Rachel, Pennsylvania
A: Rachel, it might be asking a lot to re-train producers, but let’s break this problem down and come
up with some solutions. You don’t mention how the producers are presenting business for you to
quote, but it is not unusual for producers to send an email, drop a note on your desk, or perhaps
furnish a copy of the prospect’s current declarations page with scribbled notes on it. I want to stay
away from stereo-typing producers, but I think we can agree that many of them are not detail
oriented, even though they may be great at building relationships and making the sale. The trick is to
give them the tools they need so that they can easily put the information together required to obtain a
quote.
Consider developing a sheet for producers to complete for each line of business. On the sheet, clearly
indicate which fields are required in order to just get a quote. That way, the producer can decide if
they want to get the rest of the information later if all they need is a quick quote. For this to work,
management must get behind it and require that the sheets be completed for all quotes and
submissions. (No sheet, no quote!)
A simple way to do this is by creating a “kit” for each producer. The kit could be comprised of an
accordion-type folder with multiple color-coded folders inside, each including a supply of forms for
each line of business. This will make is easy for producers to quickly see which forms they need to
complete for the lines of business they need quoted. It will also help them understand which fields
they will have to complete in order to get a quote.
Having said all that, it should be noted that this system is very paper
dependent. It may work for agencies whose producers are not
extremely tech savvy. In many agencies today, producers frequently
quote their own business through carrier portals and complete
applications in the agency management system. The procedures and
cultures of agencies can vary dramatically. The producer “kit” could
also be provided digitally by creating fillable PDF forms or using
software designed for this purpose. There are apps that can be
customized for producers to use on tablets and submit the information
digitally to the account manager. The goal is to provide a streamlined
method of collecting and passing on information correctly and
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 4
Every agency wants to save money.
When you meet any one of the criteria listed below, a 5% credit is applied to your premium –
up to a maximum of 10% credit. There is no minimum premium threshold for an account to be
eligible for the credit, which will be applied after the application of any schedule rating modifiers.
The criteria must be met every year for the credit to be continued.
The criteria are:
1. Enactment of an annual exposure analysis program.
2. At least 60% of agency staff achieve recognized designations: CIC, CISR, CPIA, CPSR,
ACSR, CPCU.
3. Attendance at an approved E&O seminar within the last 15 months or within the first 30
days after inception date… including CIC Agency Management; CISR Agency Operations;
Dynamics of Service, PIA Insurance Services E&O Loss Prevention Seminar, CPIA 2 class or
several of our Webinars are now approved.
4. All required* staff attend a PIAVA/DC-conducted in-house E&O/Loss Prevention Seminar
including all internal CSR employees as well as the principle or office manager of the agency.
Qualification by agency size 1-3 staff size 1 principle/office manager or CSR
4-10 staff size 1 principle/office manager and 1 CSR
11-20 staff size 1 principle/office manager and 2 CSR
21+ 20% of staff
Call PIA Insurance Services, 804-264-2582 or e-mail [email protected]
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 5
RICHMOND:
Oct. 12 -
Oct. 13 - Handling School Risks
Dec. 8 - Measuring School Risks
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 6
Virginia Regulatory Hot Tip 2016-8
By Jason L. Savedoff, ASBC of RVA Advisors, PLLC
Trials and Tribulations (and a little advice) in Selling Your Insurance Agency
You Sell for a Living, So Why Not Sell Your Insurance Agency Yourself?
It seems pretty straightforward, right? You wake up one day, decide you’re ready
to exit your insurance agency, and set about finding a buyer. You probably already
have a few leads in mind. You’ll call them up, invite them to coffee, make a little small talk, and,
when the time is right, plant the seed. Later on you’ll follow up, gauge their interest and proceed as
you would with any of your clients. Odds are at least ONE of the folks you prospect you’ll eventually
close, right? You’re a well accomplished business owner and salesperson. Probably be out of there in
three months, maybe six, and with a cool half-a-mil in your checking account… right?
Hopefully to the vast bulk of folks reading this, the above scenario sounds far too good to be true,
because, for most small business owners, it’s not reality. The process of selling a business is long,
cumbersome, riddled with pitfalls, totally lacking in guarantees, and, statistically speaking, the sale of
your business will fail 8 out of 10 times. 1
Why Do So Few Businesses Successfully Transition?
There are a myriad of reasons why only 20% of all businesses for sale ever actually sell. Below I’ll
touch on three of the most common.
FSBO=Buyer (and Seller) Beware!
For Sale by Owner (FSBO) transactions are estimated to have less than a five percent chance of
reaching close, and that is primarily for one reason; the business owner has never completed the sale
of a business, and so is unfamiliar with the process. That lack of expertise is akin to driving a car
down a pothole-riddled dirt road in the middle of the night without any headlights… you’re going to hit
every rut on that entire road. If you do actually make it (the five percent of folks who do), you’ll feel
like you went ten rounds with the late great Muhammad Ali!
Another consideration in
FSBO transactions is that a
business owner is often
emotionally invested in her/
his business. This makes it
difficult to be objective in the
face of a buyer whose aim it
is to point out all of the flaws
in your business in order to
get a better price. Have you
ever noticed how the Realtor
selling your house wants you
out of the house while it’s
being shown? The reason is
that they don’t want you to
have an emotional response
to anything being said by a
prospective buyer. They
need you to remain as
objective and reasonable as
possible because they know
that emotions sink deals.
Financing? What
Financing?
Financing is the most prominent hurdle in any transaction. In the case of insurance agency financing
______________________
The author of this Regulatory Hot Tip, Jason L. Savedoff, ASBC of RVA Advisors, PLLC, endeavors to provide accurate and authoritative information about the subject matter covered as of the date of publication. However, the substantive information and
any statutory authority contained in this Hot Tip should be verified as they are subject to change with the passage of time. Mr. Savedoff provides this Hot Tip with the understanding that he is not rendering legal, accounting, or other professional advice or
counsel. If legal advice or other expert assistance is required, the services of a competent professional should be sought. RVA Advisors, PLLC is Richmond’s only Accredited Small Business
Consultancy. Its services include fractional CEO and COO engagements along with ad hoc consulting, coaching and business intermediary (brokerage) services. Prior to launching his consultancy the author worked in investment banking, insurance
and investments and commercial real estate and has started, operated and sold/franchised successful businesses across several industries.
JoAnne L. Nolte, who coordinates and oftentimes authors these Regulatory Hot Tips, is an attorney at The Nolte Law Firm, P.C., 1427 W. Main Street, Richmond, VA 23220. NolteLaw offers Solutions for Business—Large and Small; just call (804) 658-4518.
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 7
(Continued from page 6)
it’s made an even higher hurdle because very few commercial banks are
equipped to lend against a book of business. Banks, now as ever, want tangible
assets as collateral.
Traditionally, an insurance agent would have paid cash for an acquisition, with
some of the purchase price being held as a note by the seller. However, most
sellers in the current market prefer to exit the business with no strings attached,
and willingness to hold a note is often limited to small principals with short
terms.
More recently, alternative financiers have popped up that specialize in insurance
agency products, including acquisition funding.
While more expensive than bank lending, they
are able to collateralize an insurance agency’s
revenue stream and provide reasonably priced
funding with flexible terms. However, most
have a requirement of 20% cash down, which
cannot be borrowed funds. This means that for
a $500,000 acquisition a buyer will need at least
$100,000 in her/his checking account to procure
this type of funding. This puts these products
out of the reach of many looking to grow their
agencies.
To add to the complexity of the financing of
insurance agencies, some savvy buyers are now
attaching retention provisions to the final sale
price of an insurance agency. In practice, this
means that the seller will receive some lump
sum at closing and a future payment structure
based on retention of agency clients as of
closing. This requires the seller to have a
vested interest in the success of the buyer, as
those retention rates will directly, and often
severely, effect the total sale price owed the
seller.
Cooking the Books
“Just a little off the top and keep it full on the
bottom,” my grandfather used to instruct his
barber when I went with him to the shop as a
boy. Never mind that grandpa had a combined
total of about 50 hairs on his head, very few of
which were on top.
It turns out that the same strategy grandpa
employed to keep his hairdo looking its best is
the same strategy many business owners use to
manage their profit and loss (P&L) statement.
The “little off the top” refers to moneys received
that never flow through the business, but do
flow into the pocket of the business owner. The
“keeping it full on the bottom” means running
personal expenses through the business to
reduce net profit, and thus tax exposure.
While this sort of system will certainly help
reduce taxable income, it does so at the expense of the sellability of the business. Moreover, very few
financing entities are forgiving of tax returns that show significantly less profitability than the “real”
financials indicate. And since most financing entities look at at least three years of agency tax
returns, of sellers AND borrowing buyers, if one or both agencies don’t look squeaky clean it can spell
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 8
(Continued from page 7)
How Do We Increase the Chances of an Insurance Agency Selling?
The assemblage of a competent team of experienced advisors is key. A Business Intermediary is an
important first hire, and differs from a business broker in that a broker simply lists a business and
finds a buyer. An Intermediary plays the same role, but will also help you prepare your insurance
agency for sale the way a stager would ready a home. IDEALLY, your Intermediary would also have a
consulting certification from the Association of Accredited Small Business Consultants, or a comparable
body. These Intermediaries have been fully vetted and can bring a great deal of added value, which
translates to a higher sale price, better terms, and a faster transition.
For example, an insurance agency owner should be wary of any broker who does not provide a formal
valuation, appraisal or Broker’s Opinion of Value. The days of selling businesses by rule of thumb
should be a thing of the past (although, sadly, are not yet fully behind us). A valuation conducted by
a qualified Business Intermediary will incorporate a detailed cash flow analysis, an appraisal of real
estate and any business personal property and a
comparative analysis of the sales prices of other
agencies comparable to yours. The result will be a
valuation anchored in defensible research and is
much more credible to buyers and their financiers.
Other important hires are a CPA and attorney who
are familiar with small business transitions. Just
because your current CPA and attorney have been
Positions Wanted
Looking for a job? Let us know—we can help!
Nov. 16-19, 2016 – Principles of Risk
Register at www.scic.com
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 9
2016 NOVA CE EXPO
Just in Time
September 13 & 14, 2016
Lake Jackson VFD Hall
11310 Coles Drive
Manassas, VA
Need CE Credits? Get them all done here at this CE Expo!
Includes 3hrs each day of concurrent Life and Health CE!
3hrs L&R taught by BOI (counts for your Ethics requirement)
3hrs E&O—Utica discount approved
Networking with Exhibitors
Pick one or both days
The Agenda! Tuesday, September 13th Wednesday, September 14th
8am–11am ….. E&O – Cyber Liability 8am–11am … Common Problems – Ethics
11am–12pm .. Workers Comp 11am–12pm . Premium Finance
12pm–1pm …. Lunch on your own 12pm–1pm ... Lunch on your own
1pm–2pm ……. Workers Comp (continued) 1pm–2pm ….. Premium Finance (cont’d)
CONCURRENT SESSIONS: CONCURRENT SESSIONS:
2pm–5pm ……. The Risk in Retirement 2pm–5pm ….. Health Care Costs in
2pm–5pm ……. Hoarding Retirement*
2pm–5pm ….. Basic Underwriting for Agents
*This is a 2 part discussion on Medicare and long term care, with emphasis on long term care
and the insurance solutions.
NOTHING BEATS CLASSROOM EDUCATION! !
To register or for more information,
please contact Sheryl at [email protected] or 804-264-2582.
Register Today at
www.piavadc.com!
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 10
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 11
Insurance Plans Designed with PIA Members In Mind
Term Life LTD STD AD&D
Business Overheard Expense
Hospital Indemnity
Insurance Program Administered by Location Risk Services
TRUST PIA SERVICES GROUP INSURANCE FUND
www.piatrust.com (800) 336-4759
Help Build Your Family’s Financial
Future with PIA Trust
Insurance Plans
SAVE—THE—DATE PIA of VA & DC Annual Convention
June 25-27, 2017 │ Virginia Beach
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 12
from the National Association of Professional Insurance Agents
What You Need To Know
As the price of hobbyist drones decrease, there has been a noticeable uptick in their purchase as gifts. Whether you’re on the giving or receiving end of hobbyist drones’ increasing popularity, it’s important to be aware of hobbyist drone owners’ legal responsibilities and practical
considerations. For instance, drones can weigh more than 50 pounds, so if a drone falls from the sky, it can cause considerable property damage or bodily injury. Drones can crash for a variety of reasons, including operational error or mechanical problems. The resulting damage has the
potential to affect people, animals, and personal property on the ground. For these reasons, it makes sense to contact your local insurance agent
to evaluate whether you should insure your drone. Hobbyist drone use may be covered (subject to a standard deductible) under your existing homeowners’ or renters’ insurance policy; contact your insurance agent
to find out whether your drone is already covered. You may also want to inquire about whether coverage will be provided if your drone is lost, stolen, or damaged. If your drone damages your car, your auto policy
may provide coverage. It’s also essential to determine the availability of coverage pursuant to your existing policies for losses sustained by someone else if they and/or their property is damaged by your drone.
Privacy is also a big concern for those whose neighbors may be hobbyist
drone users. If your drone has a camera or is otherwise capable of data collection, talk to your insurance agent about whether you need coverage to address potential violations of the privacy of those around
you. Coverage may also depend on whether the privacy violation is deemed to have been intentional.
Talk to your agent to find out what coverage you may already have that would be applicable to losses related to your use of a hobbyist drone and to determine whether you need additional coverage (and, if so,
what that coverage ought to provide) for other types of potential losses.
Drone Regulation New owners of unmanned air vehicles, commonly known as drones, may not realize that even hobbyist drones that weigh more than 0.55 pounds
(250 grams) are now regulated by the Federal Aviation Administration (FAA), and hobbyist drones may also be regulated by state and local authorities. Hobbyist drone operators should follow local, state, and
federal laws and regulations to avoid unintentional criminal activity as
The FAA has
issued some basic Do’s and Don’ts for users of
hobbyist drones: Don’t fly higher
than 400 feet Avoid obstacles
and manned aircraft around you
Keep your drone
in your sight at
all times
Don’t fly within
five miles of an airport unless
you’ve communicated with the airport
and control tower beforehand
Avoid people or stadiums
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 13
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 14
Need Meeting
Space?
PIA Can Help!
Now
Renting!
Whether it’s space for a small gathering
or a large classroom setting of 100
people, the PIA has the right size room
for you.
Need bagels or pastries for breakfast, a
box lunch or even hors d’ouevres
for an afterhours event? Good news! We
have relationships with caterers who can
work with you to help make your event
successful. You also have the option
of bringing in your own food and
refreshments. Our staff is dedicated to
making your meeting a huge success.
For more information,
including availability,
please contact Carol at
call her at 804-264-2582.
PIA’s 2016 Agency Marketing Guide Now Available
The 2016 PIA Agency Marketing Guide recently mailed to PIA
members along with the most recent issue of PIA Connection
magazine. It is also available to PIA members online at
www.PIAAgencyMarketingGuide.com.
The 2016 PIA Agency Marketing Guide focuses on case studies of
independent insurance agents working in communities across
America. These agents have agreed to share their secrets to success
so that other agents can learn from their experiences. Agents looking
for practical advice on modern marketing strategies will find ideas for
new markets, imaginative sales techniques and hiring practices as
well as ways to leverage emerging technologies into more sales.
“Perhaps one of the more inspiring developments in independent
agency marketing is the joining of new and old marketing strategies,”
said PIA National President Robert W. Hansen Jr. “While all of the
agents in the 2016 PIA Agency Marketing Guide shared their
marketing success stories, many demonstrated how they use
technology to stay relevant in a changing marketplace. Others shared innovative, non-digital
marketing tactics that capitalize on the tried and true strengths that only living, breathing agents
possess. The most important thing you can do is pick an article and start reading. You are guaranteed
to learn something that can help you excel.”
Agents reading the 2016 PIA Agency Marketing Guide will learn about ways to leverage new markets
engines. We’ve also included a special section
on building an agency’s brand: what it means,
why it’s important and how to do it successfully
The 2016 PIA Agency Marketing Guide is the
latest offering from PIA’s award-winning PIA
Branding Program
(www.piabrandingprogram.com). Through the
PIA Branding Program, PIA provides its
members with marketing tools, including
consumer-friendly issue papers on timely topics,
social media support, and print and radio
advertisements in both English and Spanish.
Register at www.piavadc.com!
NOVA CE ExPO
Sept. 13 & 14, 2016
Lake Jackson Fire Hall • Manassas, VA
16 hours CE
Concurrent L&H Sessions
E&O and Ethics Included
PIA of VA & DC
Call: (804) 264-2582
Email: [email protected]
Visit: www.piavadc.com
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 15
Where Excellence Meets Convenience.
For 45 years, the Certified Insurance Counselors institutes have set the highest standard for insurance professionals. Now that same standard of education is available online. CIC Online is instructor-led and taught in an interactive, work-from-anywhere format, allowing the flexibility of online without sacrificing your educational experience.
September 28 & 29 – Virginia Beach
October 26 & 27 – Roanoke
Reserve your spot at the next Ruble Seminar at:
www.PIAVADC.com or (804) 264-2582
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 16
Central Promotes Lee to Regional Marketing Manager
The Central Insurance Companies has announced the promotion of David Lee to Regional
Marketing Manager in the companies’ Southeast Regional Office.
A graduate of the University of Georgia with a degree in Business Administration, Lee
joined Central in 2003 in the Claims department. He has since held positions in Personal
Lines, Commercial Lines Underwriter, and most recently as Marketing Manager for
Northwest/Southeast Georgia. As Regional Marketing Manager, Lee will be responsible for
the region’s marketing efforts and will directly supervise the marketing managers for Georgia,
Virginia, Tennessee, North Carolina, and South Carolina. Lee holds his Certified Property Casualty
Underwriter (CPCU) designation.
Central Insurance Companies was founded in Van Wert, Ohio in 1876, and writes more than 350,000
auto, home, and business policies in 20 states. Regional offices are located in Boston, Atlanta, Dallas,
and Van Wert. The Central Companies have combined assets of over $1 billion. Central’s A.M. Best
rating is A (Excellent).
Check us out and like us, we provide helpful articles and let you know what is happening at PIA. Every now and then
you might find some discounts!!!
www.facebook.com/piavadc
PIA of VA & DC
is on Facebook!
PIA of VA & DC
PIA’s CE Classes Available at Your Agency/Location;
Schedule Now! Requirements for “in-house” classes are that your agency provide a location that can accommodate around 25 people in classroom style seating; plus modest food and beverage service. All participants must be paid in advance—no refunds, and participants can include agents from your agency and from other agencies.
PIA will provide an instructor, a class coordinator and all instructional materials and equipment for any of its own CE classes at your location. Classes include E&O, Laws and
Regulations, CISR & CPIA designation programs, and more—ask us for a list of classes!
This PIA member
benefit:
Saves Money
Saves Time
Schedule PIA’s money- and time-saving in-house classes now.
Contact Sheryl today! [email protected] Ph: 804-264-2582
August 24th-25th
8 am - 5 pm
Richmond, VA
DYNAMICS
OF
SELLING
Register at www.scic.com
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 17
FAQ on the Department of Labor’s New Overtime Rule
Q: What is the Department of Labor’s (DOL) existing overtime
rule?
A: The Fair Labor Standards Act (FLSA) requires (1) salaried
employees (2) who are paid more than $23,660 annually and (3)
conduct specific job duties (professional, management, etc.) to be
exempt from receiving overtime pay for working more than 40 hours
per week. Periodically, the DOL revisits the overtime rule.
In 2015, the DOL proposed that the annual salary trigger for exemption
be raised. As part of the rulemaking process, PIA filed formal
comments with the DOL expressing our opposition to the change. PIA
members are small business owners, the majority of whom employ
primarily exempt employees. Because our members operate in small
towns and large cities, and because the experience and skill levels of employees vary, the salaries of
currently-exempt employees vary. This change will necessitate decreased flexibility among employers
and employees; salaried, exempt employees may become hourly, nonexempt employees; increased
administrative attention will be paid to the overtime hours worked by each non-exempt employee;
and employee autonomy, and likely morale, will be diminished.
Q: What’s changing and why?
A: Last week, the DOL issued its final rule changing the regulations surrounding the requirements for
employees to be paid for working overtime. The final rule raises from $23,660 to $47,476 the
annual salary trigger for employees to receive overtime pay for working more than 40 hours per week.
This change is an increase of 113 percent over the previous threshold.
Q: When does the new rule begin?
A: The new rule will become effective on Dec. 1.
Q: What will the new rule’s consequences be for employers?
A: This considerable increase could negatively impact independent agencies’ employees and put a
strain on the operation of their small businesses.
Q: Can employers do anything now to prepare for the change?
A: Employers can examine the system they currently have in place to determine whether they will be
affected by the change. Some options may include:
Changing salaried employees to hourly employees to avoid subjecting them to the rule
Classifying some employees as salaried and non-exempt, depending on the employee’s
salary, noting that some such employees (depending on salary) will be owed overtime for any
work performed over the 40-hour-per-week maximum
Prohibiting non-exempt employees from working overtime (however, if this policy is violated,
overtime must be paid)
Limiting the number of overtime hours worked by non-exempt employees
Looking for now-exempt employees who may not be exempt once the rule is implemented;
begin tracking the overtime hours of such employees now to get an expectation of how their
pay will change under the new rule
Have You Got an Agency to Sell? -or- Are You Looking to Buy an Agency?
Let’s Talk! Contact Kevin Kowar at [email protected].
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 18
Did you know that the PIA Newsletter is sent monthly to 180+ agency principals and
nearly a thousand agency employees?
If you want to target this group, you should advertise in our monthly newsletter. We can
put together a customized advertising program for you that is both effective and cost
efficient. For more information including pricing, please contact Carol at
Advertise in the PIA Newsletter
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 19
2016 CISR
Earn Your Designation –OR– Just Get CE Credits!
In a profession with few objective benchmarks, there is a credential that speaks volumes: the Certified Insurance Service Representative (CISR) designation. This designation is recognized nationwide as an important credential - one that benefits individuals, their agencies, and their customers. The CISR Program is
August
August 31 in Harrisonburg
Commercial Casualty II—BAP, WC, Excess
Liability (VA 7 PC)
September
Sept. 7 in Fredericksburg
Insuring Personal Auto Exposures (VA 7 PC)
Instructor: David Taylor
Sept. 8 in Richmond
Personal Lines—Misc. (VA 7 PC)
Instructor: Cole Tucker
Sept. 13 in Roanoke
Commercial Casualty I—CGL (VA 7 PC)
Instructor: Bob Rembecki
Sept. 20 in Chesapeake
Commercial Casualty II—BAP, WC, Excess
Liability (VA 7 PC)
Virginia Insurance P&C Pre-Licensing Training
Sept. 14-16, 2016 & Dec. 7-9, 2016
PIA Office—Richmond, VA
8:30 am—4:30 pm
$270 Members $295 Non-Members
To register or for more information,
please contact Sheryl at [email protected] or 804-264-2582.
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 20
2016 CLASS SCHEDULE (August—October)
DATE CLASS VA CE TIME (EST) LOCATION
Aug. 9 CISR—Commercial Casualty I—CGL,
Add’l Insureds
7 PC 8:00-3:45* Chantilly
Aug. 18 What is the New Buzz with L&R 3 LR 9:00-12:00 Richmond
Aug. 24-25 Dynamics of Selling
(register at www.scic.com)
8:00-5:00 Richmond
Aug. 31 CISR—Commercial Casualty II—BAP,
WC, Excess Liability
7 PC 8:00-3:45* Harrisonburg
Sept. 7 CISR—Insuring Personal Auto
Exposures
7 PC 8:00-3:45* Fredericksburg
Sept. 8 CISR—Personal Lines, Miscellaneous 7 PC 8:00-3:45* Richmond
Sept. 13 CISR—Commercial Casualty I—CGL,
Add’l Insureds
7 PC 8:00-3:45* Roanoke
Sept. 14-16 P&C Pre-Licensing n/a 8:30-4:30 Richmond
Sept. 19 1, 2, 3 of Ethics 3 ETH 9:30-12:30 Chesapeake
Sept. 19 1, 2, 3 of Ethics 3 ETH 1:30-4:30 Chesapeake
Sept. 20 CISR—Commercial Casualty II—BAP,
WC, Excess Liability
7 PC 8:00-3:45* Chesapeake
Sept. 21 CPIA 2—Implement for Success 5 OGI / 2 ETH 8:30-4:30 Richmond
Sept. 28-29 Ruble Graduate Seminar 16 CE Varies Virginia Beach
Sept. 29-
Oct. 1
CIC—Commercial Property 20 CE Varies Virginia Beach
Oct. 4 CISR—Elements of Risk Management 7 PC 8:00-3:45* Harrisonburg
Oct. 10 Flint/Water Mitigation
Situational Conundrums
Agent’s Responsibilities
E&O Managing your Risk
2 CE
2 ETH
1 L&R
2 OGI
8:00-5:00 Richmond
Oct. 11 CISR—Personal Lines, Miscellaneous 7 PC 8:00-3:45* Chantilly
Oct. 12 CSRM—Fundamentals of Risk
Management
7 PC 8:00-3:45* Richmond
Oct. 13 CSRM—Handling School Risks 7 PC 8:00-3:45* Richmond
Oct. 26-27 Ruble Graduate Seminar 16 CE Varies Roanoke *Classes held from 8:00-3:45 have an optional exam offered from 4:15-5:15.
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 21
PIA of VA & DC Webinar Schedule — August, 2016
* Approved for Utica’s E&O discount.
WEBINAR DATE TIME
(EST)
VA CE
HOURS
INSTRUCTOR COURSE
#
And the CHAOS Continues: The Evolving World of Contracts, Hold Harmless, Additional Insureds & Other Stuff
Aug. 8 1 - 4 pm 3 P&C Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS
214354
Ethics: Taking it to the Streets Aug. 11 2 - 5 pm 3 ETH Chris Amrhein, AAI 212598
The Ever-Evolving Affordable Care Act (ACA)
Aug. 15 1 - 4 pm 3 L&H Jerry Rhinehart, CIC, CLU, ChFC, RHU
212602
Contractors: Insuring the Liability Exposures
Aug. 16 1 - 4 pm 3 P&C Catherine Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS
212149
Annuities: Turning Assets Into Income
Aug. 17 9 am - 12 noon
3 L&H Karin Klaassen, CLU, LUTCF 212600
Top Twelve Coverage Countdown: Answers, Evaluations and Revelations
Aug. 17 1 - 4 pm 3 P&C Chris Amrhein, AAI 214260
Get in the Ring: Property Claims, Fights and Decisions
Aug. 18 1 - 4 pm 3 P&C David Viola, CIC 212599
Man vs. Machine: Cyber Exposures and Insurance Solutions
Aug. 23 9 am - 12 noon
3 P&C Jerry Hargrove, J.D., CIC, CPIA, SCLA, FCLA, PICS, LICS
214355
Commercial Property Claims that
Cause Problems
Aug. 23 3 - 5 pm 2 P&C Terry Tadlock, CIC, CPCU, CRIS 214264
Leases and Contracts Versus the Insurance Policy
Aug. 25 9 am - 12 noon
3 P&C Jim Harrison, J.D., CIC, CPCU, CLU, ChFC
214259
How to Be the Agent Advocate at Claim Time
Aug. 25 1 - 4 pm 3 P&C Chris Amrhein, AAI 214265
Personal Lines Complications: Because Simple is Just Too Darn Easy
Aug. 29 2 - 5 pm 3 P&C Kevin Amrhein, CIC 212604
Executive and Management Liability
Aug. 30 1 - 4 pm 3 P&C Catherine Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS
214263
Check Your CE Credits!
There are only 4 more months to get compliant
with your Continuing Education!
Go to www.sircon.com to check your CE hours.
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 22
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 23
Status of NCCI Filings — Virginia
Contact: David Benedict, State Relations
804-441-6178 │ [email protected]
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 24
Status of NCCI Filings — District of Columbia
Contact: David Benedict, State Relations
804-441-6178 │ [email protected]
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 25
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 26
PIA of VA & DC MEMBER BENEFITS—AUGUST, 2016 27
