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More on British Columbia's No Fault Auto Law
As a follow-up on British Columbia's new no fault law, IIABW members have been sharing examples of British Columbia residents getting into at-fault accidents in Washington State. Insurers are paying the claims through UM. Here is more information from the Insurance Information Institute on no fault insurance.
Washington already has the 5th highest uninsured motorist rate in the country (22%) without every visiting driver from British Columbia increasing that number. Without BC drivers, it is almost a one in four chance if your customer gets into an accident the other driver will not have any insurance. Add to that the drivers who are underinsured with the state minimums. The state minimums were set over 20 years ago and are inadequate considering the average auto claims in 2022 were: bodily injury ($23K), property damage ($5K), collision ($5K), and comprehensive ($2K).
Be sure to sell UM/UIM on your RLI personal umbrellas. Read the article, “Why you need to offer Excess UM/UIM to every client” and share this video with your customers.
More on CDI Notice on Agent Emails
The Big I of California is lobbying their insurance commissioner to clarify misleading statements contained in the department’s letter describing a new law that will require on 1/1/23 non-resident agents to include their CA license numbers in emails to customers. The CDI letter gives specific examples of activities that would require the license number being listed in emails even though some of the activities do not require an insurance license, including clerical activities.
Gov. Inslee presents $70B Budget
Gov. Inslee has released his 2023-25 budget and policy proposals with a significant focus on housing and homelessness. His $70B budget does not include new taxes, but it heavily draws down reserves to facilitate a 9.8% spending increase. The governor’s budget proposal is a starting point for lawmakers as they begin the legislative session on January 9.
5 Day Grace Period for Auto Premiums
IIABW has heard of carriers charging late fees on late pays who pay within 5 days of the date the payment is due. Be sure to remind those carriers of the 5 day grace period in RCW 48.18.140 (4)(a). “Periodic payment plans for private passenger automobile insurance shall allow a specific day of the month for a due date for payment of premiums. A late charge may not be required if payment is received within five days of the date payment is due.”
Member News
- Marsh McLennan Agency has acquired McDonald Zaring Insurance in Walla Walla which specializes in agri-business, wineries, financial institutions, health clinics and contractors.
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Ryan Specialty is purchasing Griffin Underwriting Services, which was founded in 1928 and has annual revenues of $23 million.
OIC Individual Market Health Plans of 2023
According to an OIC new report, in 2023 every Washington county will have at least two insurers offering health plans for sale in the individual market. The report includes a list of every county and the carriers and the number of plans available in them.
Impact of Cannabis Legalization on Auto Accidents
Actuarial research suggests that marijuana decriminalization is not associated with a notable increase in traffic accidents or accident severity. The study did not detect any statistically significant impacts of decriminalization in the U.S. and Canada on car accident fatality rates, insurance claim frequency or average cost per claim, particularly over the long term.
WA Pot Sales Decline
Since the first retail cannabis stores opened in 2014, Washington cannabis sales have grown from $180M in 2015 to $1.3B in 2022. Our state collected $509M in excise revenue this year. Retail sales recorded a 8% decline in 2022. The average consumer purchase of cannabis dropped $3 to $31.41 in 2022.
39 states have legalized cannabis for recreational or medical use. Only three states still treat cannabis as an illegal substance in all forms — Idaho, Kansas and Nebraska. Washington’s 37% excise tax rate is by far the largest – when combined with sales and local taxes it is 46%.
New Independent Contractor Rule
The U.S. Department of Labor is aiming to crack down on businesses that misclassify independent contractors with a new proposed rule. It will align the rule to the court’s current interpretation of the Fair Labor Standards Act and the “economic reality” test that includes how much control the worker has over their schedule and their employment, how permanent their employment is and how integral their work is to the company.
Free Training: Grow Your Business and Build Carrier Loyalty
This four-part training developed by the Big I helps developing agencies better position themselves for carrier appointments by showing them how to enhance their business operations, increase employee productivity, build carrier relationships, and establish agency goals.
Best Practices When Texting Clients
The federal Telephone Consumer Protection Act requires insurance agents to follow best practices. The Big I Agents Council for Technology (ACT) offers resources that can help agents comply with the legislation and help ensure agents fully document all text conversations they have with their clients for E & O purposes.
8 State Supreme Courts Rule With Insurers on COVID-19 BI Claims
The Ohio Supreme Court became the eighth state high court to rule that policyholders were not entitled to COVID-19 business interruption coverage. The others are Delaware, Iowa, Massachusetts, Oklahoma, South Carolina, Washington and Wisconsin. Vermont's Supreme Court is the only one to rule in policyholders’ favor on BI claims.
Agency E&O Premiums Up 3 Years in a Row
Agency errors and omissions premiums have risen on average for three years in a row, according to Insurance Journal’s annual Agency E&O survey. 71% of respondents saw an increase in their agency E&O renewal premium in 2022. In 2021 and 2020, 58% and 50% reported increases respectively.
E & O Coverage For Your Agency
The Big I Professional Liability Program can quote most policies off your renewal application and have access to multiple markets. For more information, contact Kimberly Ostling.
Weekly Winner of NFL Game Picking Contest
Congratulations to our most recent weekly winners: Taunya Paine of Gus Paine in Tacoma in week 14 and Dan Hoffman in week 15. Dan Hoffman is also running away with the overall season contest.
Insurance Carols Album
The Insurance Journal has created the first-ever insurance carols album. “Have a Claims Free New Year”, features 10 original tracks, with insurance-themed lyrics to the tune of your favorite Christmas carols. Listen to it on Youtube, Spotify, Apple Music, Amazon music or Pandora.
Market Access for Big I Members
10,000+ Big I member agencies nationwide look to Big I Markets to access our affluent homeowner and personal package programs, hundreds of bonds, commercial auto, commercial package policies, community bank package, cyber liability, flood insurance, habitational program, non-standard homeowner, real estate agents E&O, etc.
52K Homes in Risk of Wildfire in WA
According to Core Logic’s Wildfire Risk Report of 2022, Washington state ranks 11th nationally for most homes at risk of wildfire.
Industry Articles
35 Big I CE Webinars
IIABW has over 35 webinars offered regularly in 2023. Topics include: contractor coverages, insurance contracts, farm liability, named insureds, cyber/privacy, calculating business income, commercial property and COPE, ISO Homeowners changes, certificates of insurance, active shooter, trucking, cannabis, condos, sharing economy, claims, surety bonding, E & O risk management, business auto claims, builders risk.
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