in this issue >>>
-Insurance Day on the Hill
-IIAI/PAC and InsurPac
-We Want You - Volunteer Today!
-Big "I" Advocates for YOU
and more. . .
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Agent Newsletter|February 1, 2022 |
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Insurance Day on the Hill |
The Big “I” will once again be participating in Insurance Day on the Hill this year at the State Capitol. The date of the event is February 15, 2022. Things will unfortunately be a bit different this year. We will NOT be meeting at the association or taking a bus to the Capitol.
All members of the association are welcome to participate in this event. We plan on visiting with key legislators again this year but, at this time, do not know how many will be allowing large groups into their offices.
We would ask that if you plan to attend on February 15th please join us at the association booth in the rotunda at 9:30 a.m. The Governor has been invited to speak to everyone in attendance in the Capitol Rotunda at 10:00 a.m. If you do plan on joining us, please email your intention to Cindy Grim at Cindy@iiaiowa.org. If you have any questions regarding the event, please reach out to Tom O'Meara at 515-402-4032 or tom.omeara@iiaiowa.org.
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New FAQ and Sample Disclosure Form on Producer Health Insurance Compensation Disclosure Requirements |
After the requirements took effect, the Department of Labor (DOL) released Field Assistance Bulletin No. 2021-03, which provides further guidance and announces the DOL's temporary enforcement policy for group health plan service provider disclosures under ERISA section 408(b)(2)(B).
The Big “I" worked with outside counsel to produce a FAQ document and sample disclosure form, which includes the new guidance from DOL. In consultation with the Big “I" Government Affairs and Big “I" Office of General Counsel staff, these documents were prepared by Brad Campbell, a partner at the law firm of Faegre, Drinker, Biddle & Reath LLP and former Assistant Secretary of Labor for Employee Benefits.
Some of the most notable elements from the recent DOL guidance include:
- The bulletin suggests that agents and brokers will have flexibility in how they comply. It states that DOL will not consider a person to have failed to comply with the new requirements as long as the disclosures are made “using a good faith, reasonable interpretation of the law."
- The bulletin notes that a “significant goal" of the new rules is the disclosure of compensation received from sources other than the plan itself. DOL notes on numerous occasions that it is especially concerned with the disclosure of any fees that may be paid by an agent or broker to an entity for referring group health plan clients.
- The bulletin makes clear that the disclosure mandates apply to group health plans, regardless of size; self-insured group health plans; and limited-scope dental and vision plans. DOL also addressed questions concerning how an agent or broker might disclose compensation amounts that are not known at the time the disclosure is made, such as contingent compensation and certain forms of non-monetary compensation. The bulletin notes that the law provides “considerable flexibility" to those disclosing their compensation and expresses DOL's view that “disclosure of compensation in ranges may be reasonable in circumstances when the occurrence of future events or other features of the service arrangement could result in the [agent or broker's] compensation varying within a projected range." The use of such ranges to disclose compensation must be reasonable, however, and DOL notes its preference for “specific, rather than less specific compensation information."
- At least for now, DOL will not be developing a model form or providing specific directions on how these disclosure notices must be provided but additional guidance could be issued in the future.
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We hope you have received your 2022 PAC letters in the mail. The Big "I" has two political action committees (PACs); one for donating to state office holders and the other for Federal.
The donations you make are used to support candidates and elected officials who work with our organization on issues of great importance to your livelihood. Because most insurance is regulated at the State level it remains our main focus. Everything from auto insurance to workers' compensation issues are debated almost annually at the State Capitol - insurance specific issues along with regulatory laws remain front and center. Insurance is a heavily regulated industry, and specifically the marketing of insurance by agents is often in the "cross hairs" of plaintiff lawyers which adds to the dynamic of court decisions that can significantly impact your ability to make a living.
The IIAI/PAC uses the donations by supporting members of the Iowa legislature, along with the Governor who have worked in defense of the insurance issues of importance to Iowa's independent agent community. At the Federal level - if you sell crop insurance, health insurance or flood insurance you have a great deal at risk.
Our Federal PAC called InsurPac supports members of the U.S. House and Senate who work closely with us on the Federal issues of greatest concern to agents. We think donating to the 2 PACs is like buying career insurance - without a diligent effort by the Big "I" on your behalf, your career and the value of your book of business is at risk.
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UM/UIM coverage pays when your client is involved in an accident and the person who caused it either doesn't have any insurance or doesn't have enough insurance to pay for your client's injuries. It’s never safe to assume that other drivers have enough insurance to pay for your client’s injuries, so make sure the umbrella you offer them includes UM/UIM coverage. The RLI Personal Umbrella features: Limits up to $5M available ($1M in NM); Keep the current home/auto carrier; No age limit on drivers; Up to one DWI/DUI per household allowed; Simple, self-underwriting application; E-signature and credit card payment options; and Immediate coverage available in all 50 states and D.C. Learn more here.
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Interview with Chris Boggs on Workers' Comp Book |
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Chris Boggs, Big “I" executive director of risk management and education, was recently interviewed by AM Best about his book, “The Insurance Professional's Practical Guide to Workers' Compensation: From History through Audit."
In the episode of AM Best TV, “Author: Elements of Workers' Comp Date Back to the Early Days of Piracy," Boggs outlines how the book traces the history of workers comp and details the modern system and its operations within the statutory, contractual and juridical world in which the coverage exists. Watch the episode now.
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Our agent committee process helps plan, organize, recommend, formulate and brainstorm on how your Association can fulfill the needs of Iowa's independent agents.
What is involved? You will spend the day in West Des Moines meeting and brainstorming with fellow agents discussing issues assigned to the committee you will serve on.
If you have never served, please consider doing so. If you have in the past, we thank you for your leadership and hope you will consider serving again in 2022 and reach out to encourage a fellow agent to attend.
This year's meeting date will be determined soon. Please visit our website for more information including a list of committees from which to participate on. Thanks for your willingness to participate - it's your Big "I" - be a part of it.
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National Marketing Reimbursement Plan Returns for 2022 |
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Option 1 - The primary change for 2022 is that members who take advantage of Digital Cobranding (ie: social media ads, online ads, etc.) can now be reimbursed at 75% of cost instead of just 50%. These funds are available to all members, even those who used the Digital Marketing Incentive funds in 2021.
$750 maximum reimbursement. For Traditional Co-Branding reimbursed at 50% and $750 maximum per location lifetime reimbursement.
Option 2 – Digital Upgrades are available for $500 flat reimbursement when using an approved preferred vendor.
Option 3 – Advantage Subscription reimbursement of $125 – this is available for NEW Advantage subscribers ONLY.
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click image for link - discount applies to ABEN webcasts only
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The Big "I" Advocates for YOU |
Everyone knows about powerful Big "I" advocacy on Capitol Hill, but did you know about all the other ways the association advocates that benefit your agency every day? No, click and watch the video above!
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Do You Sponsor a Retirement Plan for Your Agency? |
There is a continuous stream of judicial and regulatory developments in the 401(k) plan world with many addressing the definition and duties of a plan fiduciary.
Many plan sponsors mistakenly believe that they are not a plan fiduciary or have outsourced that role to another party. In reality, while steps can be taken to mitigate fiduciary risk, no agency owner can eliminate that role entirely. The Department of Labor expects a plan fiduciary to perform responsibilities that include:
- Acting solely in the interest of plan participants and their beneficiaries with the exclusive purpose of providing benefits to them.
- Carrying out their duties prudently.
- Following the plan documents.
- Diversifying plan investments.
- Paying only reasonable plan expenses.
The Big “I” MEP 401(k) Plan, available exclusively to Big “I” members, has helped many agencies fulfill their fiduciary obligation by reviewing their plan expenses and educating them on the true cost of their plan. In addition, many were able to reduce their recordkeeping and investment expenses. Let us compare your plan to our and industry benchmarks! Don’t hide–thrive. Contact us today for a complimentary plan consultation. www.iiaba.net/Retirement
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Supreme Court Rejects COVID-19 Vaccine and Testing Mandate |
The U.S. Supreme Court voted to block the Biden administration from enforcing COVID-19 vaccine and testing requirements for large private companies with at least 100 employees. Meanwhile, the Supreme Court allowed a vaccine mandate to stand for medical facilities that take Medicare or Medicaid payments.
The court was divided in both cases at a time of escalating coronavirus infections driven by the omicron variant in a nation that leads the world with more than 855,000 COVID-19 deaths, according to Reuters.
In National Federation of Independent Business v. Occupational Safety and Health Administration, six of the nine Supreme Court justices granted a stay against the Occupational Safety and Health Administration's (OSHA) Emergency Temporary Standard (ETS), the COVID-19 order that would have applied to workplaces with at least 100 employees and affected some 84 million workers.
The court found that the ETS exceeds OSHA's statutory authority because it targets a public health risk and not a risk confined to workplaces. Justices Stephen Breyer, Elena Kagan and Sonia Sotomayor dissented.
“Although Congress has indisputably given OSHA the power to regulate occupational dangers, it has not given that agency the power to regulate public health more broadly," the court said.
While some large companies have relaxed requirements in response, the court's decision does not mean that employers are prohibited from requiring that some or all of their employees be vaccinated going forward. However employers approach safety protocols, they should continue to ensure they follow any applicable federal or state law requirements or exceptions, such as medical and religious belief accommodations.
While the nation's highest court said the private employer mandate exceeded OSHA's authority, the court, by a narrow 5-4 vote, found that the Department of Health and Human Services (HHS) did not exceed its authority with a vaccine mandate for healthcare workers issued in November 2021.
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Independent Insurance Agents of Iowa
4000 Westown Parkway, Suite 200
West Des Moines, IA 50266
515.223.6060 | 800.272.9312
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