Dec 2015 - Jan 2016        
IIAN Geared Up For Unicameral Session Starting January 6
New Big "I" Ambassadors In Action 
Members of IIAN's new "Big "I" Ambassadors" group have been contacting their Nebraska state senators since early November - developing working relationships and introducing senators to IIAN'S legislative priorities - in preparation for the 2016 Unicameal "short session".  The group was formed earlier this fall, as part of IIAN's new Legislative Advisory Council (LAC), chaired by  John Deardorff of Omaha.  LAC members meet quarterly by conference call to provide member feedback and support to IIAN's Legislative committee, chaired by  Bob Hoppe of Columbus, and IIAN Legislative Representative Jim Cavanaugh , throughout the year.  




IIAN's staff and Board of Directors would like to take the opportunity to thank you for your membership. We are so  glad to have you as part of the Big 'I' family and appreciate your support of your association!
 
We hope you, your organization, and your family have a healthy and prosperous 2016! Contact us any time for information and assistance (the IIAN office will be closed Jan. 1).

Certified Independent Contractor Bill
IIA N's Top Priority For 2016
IIAN's top issue for the 2015-16 legislative session, 
LB 276, was introduced last year by Business & Labor Committee Chairman Burke Harr of Omaha at IIAN's request, to address the growing problem of independent contractors who do not insure themselves for workers compensation, and the risk that they could be determined to be employees by the WC Court after an injury. 
    After a successful grassroots campaign by IIAN members last spring, LB 276 was advanced to General File (ready for first-round debate) unanimously by members of the Business & Labor Committee, with a  compromise amendment limiting the scope of the bill to construction work.  Since it was not named a "priority" bill last year, LB 276 was "carried over" to the 2016 "short" session, and IIAN is working to position it to move forward in 2016.
Why LB 276 is needed in Nebraska , and what's in the bill as amended. See what passed in 2015  , and list of bills carried over to 2016 session.
Highway Bill Restores Critical Crop Insurance Program Funds
Grassroots Action In October Overwhelming
The "Bipartisan Budget Act of 2015" that passed in October reopened the 2014 Farm Bill and cut the budget of the Federal Crop Insurance Program by $3 billion. As soon as the Big "I" learned of the budget reductions, IIABA launched an extensive grassroots campaign and worked with IIAN and its state associations to urge Congress to repeal the devastating funding cuts.  IIAN's Crop Insurance Task Force, chaired by  Todd Anderson , York, led the charge in Nebraska, inundating Nebraska's Congressional delegation with calls and e-mails.   The overwhelming grassroots push from Big "I" agents, in addition to lobbying on Capitol Hill, helped bolster negotiations to reverse the cuts and restore the funding in the Highway Bill, which was signed into law in early December.  Jen McPhillips, IIABA's Asst. Vice President of Federal Affairs, led the Big "I" lobbying effort on Capitol Hill,  and is the keynote luncheon speaker at IIAN'S Winter Conference, February 4 in Kearney.  See more conference information.
NAIC Changes Tone On Cybersecurity Consumer "Bill of Rights"
Agents Targeted To Provide Customers Identity Theft Protection 
On December 17, the National Association of Insurance Commissioines (NAIC) adopted its "Roadmap for Cybersecurity Consumer Protections" during a year-end business meeting.  This controversial document (originally framed as a "Cybersecurity Bill of Rights") was adopted by voice vote after its champions agreed to several last-minute revisions due to pressure from the Big "I" and other industry stakeholders - and made it clear that the document does not lock the NAIC and individual states into any particular future action.   
   The purported purpose of the document is to frame the impending development of an NAIC cybersecurity model state statute, and the Big "I" objected to the document for numerous reasons - most notably because it expressed support for requiring agents to provide customers with dubious identity theft protection services.  As the consideration of this "roadmap" approached earlier in December, IIABA and numerous state associations - including IIAN - urged regulators to take a comprehensive view of these issues and to recognize that IIABA and others would likely oppose state-level adoption of legislation that imposes a broad identity theft protection mandate on our members.
   Nebraska Insurance Director Bruce Ramge was one of only three state insurance commissioners to vote against the original "Bill of Rights" this fall.  Read NAIC Roadmap 
Nebraska Insurance Regulator Receives Prestigious National Award
Nebraska Department of Insurance (NDOI) Deputy Director and General Counsel, Christine Neighbors, has been awarded the Robert Dineen Award for Outstanding Service and Contribution to the State Regulation of Insurance. Neighbors received the award at the National Association of Insurance Commissioners ("NAIC") Fall National Meeting in National Harbor, Maryland.  "Christy is known nationally for her tremendous work with international insurance matters and has developed a great deal of respect for her work on the subject matter of insurance group supervision," said NDOI Director Bruce Ramge. "Nebraska's domestic insurance industry includes several large insurance groups. Christy's work benefits Nebraskans and the U.S. insurance industry."
Is The Insurance Industry Ready For The Onslaught Of 30,000 Drones?
By Jeremiah Gudding,IIAN Marketing Director
The drone world is exploding and consumers are finding new uses for them every day. Amazon has been exploring the idea of drone delivery service and photographers have been using them to capture amazing images for years. Farmers are starting to put them to work all over the United States checking pivots, crops and cattle and Insurance companies are using them to adjust claims. The possibilities are endless. Unfortunately, so is the potential for loss. Prices for drones continue to come down, which means more consumers will have access to them. Many of these will be young adults flying them for fun, with many getting one for Christmas. This often presents the question about whether or not your insurance will cover you if a loss occurs.  Of course, the answer is . . . it depends.  Click here to read more  with links to analyses of HO and CGL forms, along with the new FAA regulations which require drones purchased before December 21 to be registered by February 19, 2016.  Also, read Insurance Business America article on current state of the marketplace for drone coverage. 
Big "I" Responds To ACA-Related Regulatory Proposal
Earlier this month, the U.S. Department of Health and Human Services (HHS) released a wide-ranging proposal that would revise many regulations related to the administration of the Affordable Care Act (ACA).   In response to the proposed regulation, the Big "I" submitted a  lengthy comment letter  to the HHS outlining concerns regarding potential changes to the oversight of agents and brokers that operate within a federally facilitated exchange (FFE) such as Nebraska's, along with other issues.
    The HHS proposal would grant the federal agency broad new authority to immediately suspend an agent or broker's agreement and registration with an FFE in certain instances of suspected fraud or other abusive conduct. A health insurance agent or broker who loses the ability to sell exchange-based plans to customers could suffer profound impacts. Having access to the exchanges and the ability to enroll clients in qualified health plans is essential to the business of many health insurance professionals.
    The Big "I" agrees that bad actors who engage in criminal or fraudulent conduct should be removed from the insurance industry and punished, but this must occur with the appropriate measure of due process protections the U.S. Constitution requires and with deference to state insurance regulators.   The Big "I" also offered comments on a proposed expansion of the duties of navigators.
Nebraska Insurance Director Bruce Ramge also submitted a comment letter strongly objecting to the proposed regulation.
Big "I" 2015 Best Practices Study Released
Study Demonstrates Stability and Growth In The Independent Agency System
IIABA has released its 2015 Best Practices Study, which found modest declines in organic growth but steady profitability across the group of 196 Best Practices Agencies studied. Findings from the 2015 Best Practices Study include:
 
Service Staff Productivity: The study revealed that revenue per employee, perhaps the best overall metric of productivity, increased approximately 5% over the three-year period. Revenue per service staff member increased by approximately 6% in the commercial P&C line of business, and by approximately 1% in employee benefits. 
 
Productivity: New business per validated producer increased across all size firms for both commercial P&C and multi-line producers, growing by 5.5% and 5.0%, respectively, since 2012. 
 
* Producer Payroll & Perpetuation: The net investment in un-validated producer payroll (NUPP)-a measure of commitment to future growth by way of new producer pipeline development-has remained steady and healthy throughout the period, with an average NUPP of 1.8% for all firms. 
 
Profitability: Pro-forma profit margins-the actual profitability of an agency if non-reoccurring/extraordinary expenses and revenue, and excessive owner compensation and perks are normalized-remained strong. This was the case over the cycle period at approximately 26%, with smaller firms outperforming their larger peers once again in 2014, posting results of 30% vs. 22%, respectively.

More study details and links  to online order forms.
Research Suggests Gen Y Prefers The Independent Agent
By Matthew Nickerson, President, Safeco Insurance
A new day is dawning for the independent agent-and Safeco has the research to prove it.   Americans currently aged 19-35 - also known as millennials or Generation Y - constitute the only growing generation among U.S. adult consumers. By 2030, they will constitute more than one-third of adults in this country. And they will remain the largest generation until 2042.
    The needs and preferences of Gen Y will be important drivers in the insurance marketplace for the next 27 years-the rest of my career and most likely yours, too.   After growing up with digital devices and always-on connectivity, these "digital natives" are generally assumed to prefer online shopping over human contact. But do they really want to buy and manage insurance coverage with their thumbs?
    Only the independent agent offers ease, choice and advice-a unique combination with the power to attract today's consumers, especially Gen Y. 
In This Issue
You're Invited -
  Day at the Capitol
  January 15
All IIAN members are invited to the Capitol Building the morning of January 15 to learn firsthand about Big "I" issues, visit their senator's office, and have lunch with senators at the Governor's Mansion.   Featured speakers:  Jim Cavanaugh, IIAN Legislative Representative, Senator Burke Harr, Senator Bob Krist, and Nebraska Insurance Director Bruce Ramge.
It's a great way to "make a difference" in just one morning and we'll make it easy!
There's no cost for members - but you need to RSVP by January 8:
Call the IIAN office  with questions. 1-800-377-3985.
  

39th Annual IIAN Winter Conference
February 3-4, 2016
Holiday Inn, Kearney

13 CEUs*
Agribusiness Sessions
- AFIS Update Approved
Farm Property, Liability, Business Auto, Workers Comp, Umbrella
 
Dynamics of Service
- CISR Update Approved 
Personal Auto/Homeowners Challenges

Intro to Crop Insurance
- RMA MPCI Qualified

 
Trade Fair
Over 45 Exhibitors
Prime Rib Buffet

January 15 Discount Registration Deadline
Multiple Registration Discounts
Young Agents $99!

Agency/Company Personnel
Click Here To Register

Exhibitors/Sponsors
Click Here To Register

Hotel Reservation Deadline Jan 6
Call 308-237-9571
 
*approval pending

  
Welcome!
New Big "I" Members

These independent insurance agencies recently joined
IIAN & IIABA!

Albion
Schmadeke Insurance
Bryce Spann

Central City
Central Realty
Kevin Ohlman

Chappell
Federal Crop Agency
Chris Ray

Fremont
AgriSun Land Management
Cindy Sunderman

Kenesaw
Berg Insurance Agency
Keith Heier

Lincoln
Covenant Insurance Services
Brian Bradley

Omaha

Enlighten Agency
Greg VanderVorst

Retailers Insurance Group
John Treantos

Sellner Group
Mike Sellner

S utton
Eagle Pointe
Mike Johnson
 The Big "I" Blog 



Association Happenings & Things You Need To Know - Weekly Update From IIAN's Staff

Oh Crop!
By Nancy Robeson
Find out about the new 2-day Intro to Crop Insurance course being introduced at IIAN's Winter Conference - February 3 and 4, 2016.  It meets the RMA MPCI education requirement and is filed for
9 Crop/3 Ethics CEUs (approval pending) 

Something To Talk About! (Drones)
By Jeremiah Gudding
Jeremiah gives you links to analysis of HO and CGL coverages for drones, and new FAA regulations.

Let's Go To The BOP!
By Brenda Kaiser
Because homeowners policies do not cover (or provide very limited coverage) for businesses operated out of one's home, it is your responsibility to offer a stand-alone in-home business policy (BOP) to your clients that may qualify.  Brenda reviews features and benefits of IIAN's excellent market for Big "I" members.
IIAN Foundation Scholarships
March 1, 2015 Deadline

Six $1,000 - High School Scholarships
(including 3 for Lancaster/Adjacent Counties)
One $1,000 - College Scholarship

 
Download applications here.

  

IIAN Partners of the Month - Thank You! 
December                         January



Their support enables IIAN to present affordable, high-quality member programs.
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Independent Insurance Agents of Nebraska