Insurance Diversity Digest - Forging Ahead in a New Year and Honoring Dr. Martin Luther King, Jr.

Diversity Proponent

The start of every new year brings forth a renewed sense of optimism, and at the onset of 2021, this hope is also tempered with a collective realization that there is still much more work ahead of us.

On top of living through a global pandemic, distance learning, teleworking, endless video conferencing, widening income inequality, and some of the most prolific moments in presidential history, we must also grapple with an ongoing racial justice movement that continues to test the tenets of our democracy. The events of 2020, along with last week's egregious attempts to undermine the Constitution, revealed deep wounds of a republic wrought with systemic biases, and also made us keenly aware of elements that truly matter to us: human connections that dignify our existence, meaningful conversations that amplify our unique voices, and an insatiable desire to work towards creating a more equitable and inclusive future for all people.

Later this month, we will honor the life and legacy of Dr. Martin Luther King, Jr. For many of us, this occasion will be a cause for reflection. Nearly six decades since Dr. King delivered his "I Have a Dream Speech" on the steps of the Lincoln Memorial, we recognize that our nation still has yet to live up to the ideals upon which our country was founded. And this requires us to forge ahead to continue working towards building a future that places a greater value on the strength of our diverse experiences.

In the words of the late Supreme Court Justice Ruth Bader Ginsburg, “Fight for the things you care about, but do it in a way that will lead others to join you.” We hope that 2021 empowers you to forge ahead and stand up for the things that you care about in ways that will create widespread opportunities towards a more just society.

In Solidarity,

The Insurance Diversity Initiative Team

“If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do… you have to keep moving forward.”

– Dr. Martin Luther King, Jr.

2021 Martin Luther King Day of Service

MLK Day of Service

The Martin Luther King Jr. holiday on Jan. 18, 2021, is the 26th anniversary of the day of service that celebrates the Civil Rights leader's life and legacy. Observed each year on the third Monday in January as "a day on, not a day off," MLK Day...

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www.nationalservice.gov

IN THE COMMUNITY

RECOGNITION OF SERVICE AND INCOMING LEADERSHIP OF THE INSURANCE DIVERSITY TASK FORCE

December 02, 2020

On December 02, 2020 the Insurance Diversity Task Force (Task Force) held its last quarterly meeting of the year. The Task Force identifies and recommends actions to the Commissioner that will advance the diversity and equity goals of the Insurance Diversity Initiative. Each quarter, the Insurance Diversity Initiative and the Task Force host publicly-noticed meetings that provide insights on the progress of the Initiative on its Strategic Plan and brainstorm ideas to achieve goals set by the Strategic Plan.

December's meeting was bittersweet, in that the we bid adieu to Salvador Peinado, Jr. whose role as Chair for the past two years was key in guiding the work of the Task Force and helping to ensure that the voices and needs of the diverse communities that they represent are brought to the forefront. Peinado, Jr.'s chairmanship coupled with his five years of service to the Department has been a bridge to creating inroads within the insurance supplier & board diversity community.

“The Task Force’s 2020-21 strategic plan will continue to serve as a road map for governing board and supplier diversity,” said outgoing Chair Salvador Peinado, Jr., who joins software giant Autodesk as the Supplier Diversity Program Lead. “From increasing access and opportunities at the Department’s Diversity Summit year after year, providing recommendations to enhance the insurance diversity surveys, and convening the industry’s inaugural Governing Board Diversity Summit, the Task Force’s accomplishments not only impacted California, but became a model for the entire nation. Insurers from across the country are investing in supplier diversity programs to ensure that business owners in underserved communities have an opportunity to grow their businesses that will, in turn, generate wealth and create jobs. Thank you to my fellow Task Force members for their guidance, support and friendship. It’s been an honor and privilege to serve as a Task Force member and Chair under Commissioner Lara’s leadership.”

Peinado, Jr. is succeeded by (then) Vice Chair of the Task Force, Mark Morales who is Vice President of the Small Business Administration (SBA) loan division at City National Bank, specializing in SBA financing and loan programs for diverse owned businesses. Morales is also the co-owner of Charles Jacobsen, Inc. a certified LGBT business enterprise.

“I am excited and honored to lead as Chair of the Diversity Task Force,” said Morales. “Five years ago, I was appointed as the first LGBTQ+ representative and I witnessed the strides that the Task Force made, including expanding equitable opportunities and meaningful change for diverse business owners and board leaders all across California. The pandemic magnified the needs of our communities, and I look forward to meeting these challenges head on.”

Morales will be the first LGBTQ+ chair of the Task Force since its inception in 2012. Congratulations to Peinado, Jr. and Morales as they embark on their respective new roles. Thank you your commitment to serving the people of California.

SPOTLIGHT ON DIVERSITY

THE YEAR THAT CHANGED RESTAURANTS AND WHAT HAPPENS NEXT

Originally Published: December 1, 2020

Every January is California Restaurant Month, when destinations and restaurants across the state showcase the best of local cuisine. From special events and menus to pre fixe dinners and exclusive deals, California Restaurant Month participants bring to life the culinary experiences that make the Golden State the No. 1 food travel destination in the country. The pandemic has required restaurants to pivot, and pivot again multiple times. Bon Appetit magazine highlighted a number of restaurants and their employees in their Restaurant Diaries series and the impact of COVID-19.

The numbers are astounding. The food and beverage industry accounted for one in four jobs lost during the pandemic—more than any other sector of the economy. Without additional assistance, tens of thousands of bars and restaurants could shutter, taking up to 7 million jobs with them. That’s the barista who knows our order before we’re awake enough to ask for it, the busser whose smile improves a lousy day, and so many others behind the scenes. And yet, there’s hope. Restaurants have shown creativity and resilience, becoming movie theaters, drive-thrus, and grocers. The industry banded together to push the Restaurants Act through Congress, which, if passed, would offer a $120 billion life preserver. Chefs are doing backflips to feed communities in need while also looking to the future. What the industry will look like on the other side is unknown. But if these folks have their way—and if we, the diners, support them—it’ll be smarter, more nimble, and a heck of a lot more egalitarian.

Read the full article.

GOVERNING BOARD DIVERSITY SPOTLIGHT

BOARD PRACTICES QUARTERLY:

DIVERSITY, EQUITY & INCLUSION

Originally published: September 2020

The landmark events of 2020 surrounding systemic racism and racial equality have led many companies and their boards to consider their practices related to diversity, equity, and inclusion (DEI). For some, the events present an opportunity to reevaluate and enhance current practices; for others, they may prompt the exploration and implementation of actions and practices to advance DEI, within and outside of their organizations, for the first time.

This inaugural “Board Practices Quarterly” explores some ways in which companies and boards have responded to these recent events and other management- and board- focused practices pertaining to DEI. It presents findings based on an August 2020 survey of members, representing more than 200 companies, of the Society for Corporate Governance. We would expect the findings to evolve over time, particularly as they pertain not only to corporate governance, but also to a societal matter, where calls for action and change appear to be ongoing and growing.

Questions included in the survey:

What information does management provide to the board on company practices, strategy, and performance related to diversity and inclusion?
If your board directors/C-suite executives have elected to self-identify their race/ethnicity, please check the box that most closely approximates the percentage who belong to a racial or ethnic minority group.
Has your company and/or board taken— or do they intend to take—any actions in response to recent events surrounding racial inequality and inequity?

Read Deloitte's complete Board Practices Quarterly report

ANNOUNCEMENTS

COMMISSIONER LARA SPONSORED 2021 LAWS ENACTED

A number of new laws went into effect on January 1, 2021 that impact and protect California consumers. Most notable for the Insurance Diversity Initiative was the enactment of AB979. AB979, jointly authored by Assemblymembers Chris Holden, David Chiu, and Cristina Garcia, and strongly supported by the Commissioner, requires public companies with a principal executive office in California to include members from historically underrepresented communities on their boards of directors or incur financial penalties levied by the California Secretary of State. Additional bills sponsored or supported by the Commissioner and the Department include:

Senate Bill 872, authored by Senator Bill Dodd, removes barriers for future wildfire survivors to get critical insurance benefits and streamlines wildfire recovery processes for homeowners who suffer wildfire losses. The new law will require an advance payment for no less than four months of Additional Living Expenses (ALE) and no longer require an itemized inventory form for content claims, among other consumer protections. As of July 1, 2021, the law will expand ALE benefits, including for policyholders whose homes are rendered uninhabitable due to wildfire damage to essential infrastructure.
Senate Bill 1255, jointly authored by Senator Lena Gonzalez and the Senate Insurance Committee, remedies several issues identified by the Department and stakeholders to clarify and clean-up various technical Insurance Code sections. This new law also includes the Equal HIV Insurance Act which, starting January 1, 2023, will prohibit an insurance company from declining an application or enrollment request for coverage under a policy for life insurance or disability income insurance based solely on the applicant’s HIV status.
Senate Bill 855, authored by Senator Scott Wiener, requires health insurance companies to provide parity in coverage for mental health conditions, as well as substance use disorders, equal to coverage provided for other medical conditions. It will also require health insurance companies to adhere to the same standards of care that are followed by addiction and mental health care providers. Commissioner Lara issued a Notice to insurance companies last month to ensure they comply with the new law.

Read the full press release from the Department.

CALIFORNIA SMALL BUSINESS COVID-19 RELIEF GRANT PROGRAM APPLICATION DEADLINE EXTENDED

On November 30, 2020, Governor Newsom and the State Legislature announced the allocation of $500 million to the California Small Business COVID-19 Relief Grant Program to be administered by the California Office of the Small Business Advocate (CalOSBA) at the Governor's Office of Business and Economic Development. The program provides micro grants ranging from $5,000 to $25,000 to eligible small businesses and nonprofits impacted by COVID-19 and the related health and safety restrictions. Applications began being accepted on December 30, 2020 and upon receipt of numerous applications, the deadline was extended to January 13, 2021. Visit the California Small Business COVID-19 Relief Grant Program site for additional information, resources and updated deadlines.

UPCOMING CDI MEETINGS & TASK FORCE MEETINGS

This section of the newsletter contains all of the information regarding upcoming Commissioner TeleTownhalls and Insurance Diversity meetings. All meetings are open to the public.