The INSURANCE DATA SECURITY ACT (H 5200) is under consideration by the General Assembly. This legislation requires strict standards for the protection of customer's personal information. We urge agency principals and managers to read the bill and provide feedback to IIARI. This has been enacted in 11 states and under consideration in four more (including RI). The legislation is based on an NAIC "model act". The bill is being promoted by the DBR and our superintendent was instrumental in drafting the model act.
 
At the initial General Assembly hearing, IIARI voiced the following concerns:
 
  • the cost of technology requirements for small businesses.
  • agents are unable to attest to third-party service provider's adherence to the requirements (i.e., agency management providers, etc.).
  • existing comprehensive privacy laws are already in place.
  • lack of fairness of special insurance requirements.
Some of the bill requirements include:
 
  • "Implementation of an information security program. Commensurate with each insurance license, its size, and complexity, the nature, and scope of its activities, including its use of third-party service providers"
  • "Identify reasonably foreseeable internal or external threats" ... "including the security of information systems and nonpublic information that are accessible to, or held by, third-party service providers"
  • "Protect, by encryption or other means, all nonpublic information while being transmitted over an external network" or "stored on a laptop"
  • "Include audit trails within the information security program designed to detect and respond to cybersecurity events"
  • "A licensee shall require a third-party service provider to implement appropriate administrative, technical, and physical measures to protect and secure the information systems" of the third-party service providers.
  • "if the licensee learns that a cybersecurity event has or may have occurred in a system maintained by a third-party service provider the licensee will complete" certain steps "or confirm and document that the third-party service provider has completed those steps" 
  • "Identify the source of the cybersecurity event"
 
There is a limited exemption in the bill for agencies with 10 or fewer employees (including independent contractors) for the technology items noted above but many other parts of the bill apply to agencies of any size.
LETTER FROM A FELLOW AGENT - RHODE ISLAND FRAUD ALERT
TEMPORARY PLATES FOR UNISURED DRIVERS
On New Year’s Eve, a client was hit by a car with a temporary Texas license plate. The young, pregnant driver admitted she had no insurance. Most thankfully, no one was injured.

Since the client had no coverage on their van we followed up with the Texas DMV, as no plate is issued without proof of insurance.

After a brief investigation, we made contact with an investigator in Texas who admitted that these “dealers” have been operating online and selling temporary registrations online. Sometimes the information on the vehicle is accurate and sometimes it does match the car the plate is ultimately used on. The paper plates are only good for 60 days. 60 Days with no insurance, no taxes, and the car may never get legitimized.

Going further we contacted Providence Police Detective Ryan Maroney, who is working with Pepper Daigle of the US Department of Justice to catalog and track down the source of these illegitimate plates. Since New Year’s Eve, these plates have appeared on rental vehicles and other cars in and around Providence.

Detective Maroney asks anyone with information that might be helpful to the investigation to contact him at rmaroney@providenceri.gov.

He is working with the FBI and AIPSO special investigations unit to try to put an end to this fraud.

Insurance Fraud is not a victimless crime, my local small restaurant owner’s van is used to pick up fresh produce. A tough hit for a business in an industry already negatively impacted by COVID. Thanks for helping to watch out for all RI drivers.

Katharine Roberts, VP
EF Bishop Group
IIARI Agency Presents Engaging Marketing Videos at Big I ELEVATE
Located in MA, CT, and RI, the Lapointe Insurance Agency presented at the Big I ELEVATE conference last month showcasing their creative agency marketing videos. Using pop culture references like the Fully Insured House and The Fresh Prince of Deductibles the Lapointe Agency showed other Big I Agencies across the nation that web videos can be done effectively in-house with a bit of creativity and fun.
Rhode Island CPCU Scholarship Applications are Open
Each year, the Rhode Island CPCU Scholarship Fund offers you, your employees, and your immediate family members the opportunity to apply for scholarship grants ranging from $2,500 to $4,000. Over $395,000 has been awarded throughout the years.   

These grants are made possible by the generosity of the Rhode Island insurance community. Since 1994, the agency community alone has donated over $120,000 to the cause.
Interested in donating?
Donations by check can be made payable to the Rhode Island CPCU Scholarship Fund and mailed to Stefvan Drezek, c/o Amica Mutual Insurance, 50 Amica Way, Lincoln, RI 02865.  
Upcoming April Classes
Digital Extras
Insurance Industry Adding 20K Jobs During Pandemic

Levels of employment for the insurance industry are “holding up much stronger than the overall economy,” the leader of an insurance search firm said recently.
ACT Security Alert

We know from real data that independent agents (IAs) are a prime and focused target of cybercriminals. Over 12% of all breaches are now within the financial sector, and this is the focus is only growing.
Download the The Risky Chicks Podcast

Two millennial's take their stance on Insurance with a twist of pop-culture. With Katelyn Noschese & Abbie Brown of Wellesley, MA.





Thanks to our Diamond sponsor -
The Beacon Mutual Insurance Company.
Do you have some agency news to share? Please send agency news and changes to tdrowne@iiari.com. We'd love to hear from you.
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