the insurors of tennessee bulletin 1314

Every employer, including each Insuror member agency, must provide a written notice to all employees with information on the following:

The existence of the Federally Fa-1. cilitated Marketplace (FFM) and contact information for assistance,The potential availability of premi-2. um subsidies through the FFM, andThat if the employee purchases 3. health insurance through an ex-change, they will lose any employer contribution and that all or a portion of any contribution may be exclud-able from income for tax purposes.

Some additional information:

The Notice must be provided to all •existing employees (full and part-time) on or before October 1, 2013, and must be given to new hires within 14 days of their start date.The notice must be given regardless •of plan enrollment status or of part-time or full-time status. The notice must be provided in •writing in a manner calculated to be understood by the average employ-ee.Itmaybeprovidedbyfirst-classmail. Alternatively, it may be pro-vided electronically if the require-ments of the Department of Labor’s electronic disclosure safe harbor at 29 CFR 2520.104b-1(c) are met.

volume 13-14 • friday • july 26, 2013

Insurors of TennesseeWeb: www.insurors.orgPh: 615.385.1898 or 800.264.1898Fx: 615.385.9303E-mail: [email protected]

© 2013 Insurors of Tennessee. All rights reserved. For Members Only. of 4

bulletinYOUR ASSOCIATION NEWSLETTER

continued on page 2

certificates

ONLINE WEBCASTSAGENTS & BROKERS EDUCATION NETWORK

FULL SCHEDULE INSIDERegister online today!

insurors.aben.tv

All Employers Must Provide Notice of ACA

The Trusted Choice agents of Insurors of Tennessee can now say that they played a part in preserving the Civil War battle-fieldsofourgreat state.Tocommemo-rate the 150th anniversary of the Civil War (2011-2015), your As-sociation partnered with our na-tional Trusted Choice brand and the Tennessee Civil War Preser-vation Association (TCWPA) to sponsor the official State Ses-quicentennial License Plate.

The plate needed 1,000 orders to be approved for production, and that quota was met earlier this year. Now theplatedesignhasbeenfinalizedandproduction is about to begin.

Tennessee is rich in Civil War history, with more than 1,462 battles, at least one fought in each of our 95 counties, that brought destruction to the landscape. The TWCPA is a statewide organiza-tion that identifies and recognizesTen-nessee’smostimportantbattlefieldsitesand raises funds for their protection.

Trusted Choice Agents Help Preserve HistoryBy building a statewide community of preservationists and collaborating orga-nizationsandagencies,TCWPAcanef-fectively develop strategies and execute

plans to protect and interpret our state’s sites.

TCWPA fosters research to lo-cate sites and provides education programs and tours for its mem-bers and the public. TCWPA recognizes outstanding leadersin battlefield preservation. Pro-ceeds from the license plate will support Civil War Battlefield

Preservation in Tennessee and the Civil War Trails program.

You can explore Tennessee’s Civil War history through an interactive web-based map at http://tnmap.tn.gov/civilwar/

If you are interested in ordering a plate, send your name and e-mail address to [email protected] and they will contact you when plates are available at the vari-

continued on page 4

120th

annualconvention

8 4DAYS LEFT

ONLY

Bulletin Vol. 13-14 July 26, 2013


continued from page 1

Trusted Choice Agents Help Preserve History

http://www.insurors.org/Content/Navi-gationMenu/PDF12/070113ACA.pdf

The second Notice is for policyholders and generally states that Westport will provide coverage for damages caused by negligent acts of an insured while render-ing Professional Services. These services would include coverage for the sale of accident and health insurance, stop-loss coverage, and for insurance consulting. Read the memo at http://www.insurors.org/Content/NavigationMenu/PDF12/Westport3302336.pdf

We expect info to begin being released by HHS quickly over the next few weeks in preparation for the October 1 release date. As more info becomes available we will notify our members promptly.

ousCountyClerks’offices.Youcanalsovisit http://www.tcwpa.org for more in-formationontheplateor thebattlefieldpreservation.

Answers on Additional Insured EndorsementsOften members have questions regard-ing Blanket Additional Insured endorse-ment. Typically a General Contractor will request that everyone working on the job site be named as Additional In-sureds, a request that Insurers are usual-ly not willing to accommodate. So what do you do?

A quick consultation with Bill Wilson and the Virtual University leads to the following answer:

Be careful when dealing with the ISO CG 20 33 Blanket AI endorsement. There is case law that says that anyone listed as an AI who does not have a direct contract with the Named Insured does not have AI status. Usually the construction Contract is between the Named Insured contractor and the project owner, thereby excluding AI coverage for the architect, construc-tion manager and subcontractors.

View a VU article that outlines the problem at http://www.independenta-gent.com/Education/VU/Insurance/Commercial-Lines/CGL/Additional-In-sureds/FacultyBlanketAIUhOh.aspx

In2013 ISOmade significant revisionsto the AI endorsements in response to concerns raised by IIABA. Specifi-cally, ISO introduced a new blanket ad-ditional insured endorsement, CG 20 38 “Additional Insured – Owners, Lessees or Contractors – Automatic Status For Other Parties When Required In Written Construction Agreement.”

This new endorsement attempts to solve the problem of a lack of privity of con-

Westport Releases ACA E&O Implications InfoWestport Insurance Co. has recently weighed in on the ACA and its effect on policyholders. In two recent memos the E&O carrier has addressed issues to con-sider in business, as well as, how will the policy respond on a claim under ACA.

Inthefirstmemotitled“AffordableCareAct – For Insurance Agents, Procrasti-nation is NOT an Option,” the company poses some questions that Agents must be ready to answer if they are going to sell insurance on the Federally Facilitat-ed Marketplace. The memo notes that an Agent’s exposure to negligence claims will increase tremendously if the Agent doesnothavethespecializedknowledgeand expertise required to assist Employ-ers in becoming compliant with the health care regulations. Additionally, the memo provides links to info on the ACA and tax issues that might arise. Read the memo at

Labor Department Will Conduct WC Seminars The Tennessee Department of Labor and Workforce Development is holding a series of 14 seminars across the state to explain the Workers’ Compensation Reform Act of 2013.

The new law removes injured workers’ claims from state trial courts and in-stead creates a special panel of judges appointed by the governor to hear claims and appeals. It also increases the number ofweeksfordisabilitybenefitsfrom400to 450.

The 14 seminars are being put on by the Workers’ Compensation Division, the Tennessee Occupational Safety and Health Administration and the Tennes-see Chamber of Commerce.

The groups said the seminars are de-signed to educate employers about the the bill including ways to avoid work-place injuries and how to handle them if they occur.

They began on July 25th and run through August29th.Specificdates,infoandlo-cations can be found on the Department website at http://www.tn.gov/labor-wfd/wc_seminars2013.pdf

tract by adding the following category of additional insureds:

Any other person or organization you are required to add as an additional in-sured under the contract or agreement described in Paragraph 1 above.

View the endorsement at http://www.insurors.org/Content/NavigationMenu/PDF12/CG_20_38.pdf

In another article by VU, the authors re-view the new endorsement and identify some areas of concern regarding the CG 20 38. View it at http://www.indepen-dentagent.com/Education/VU/Insur-ance/Commercial-Lines/CGL/Addition-al-Insureds/2013AIChanges.aspx

Finally, consider the CG 20 26 in this situation. The CG 20 26 allows a con-tractor to name the individual AIs and coverage is not connected to a written contractual relationship nor privity in performing operations for those parties. This appears to be the best solution to the problem. View the endorsement at http://www.insurors.org/Content/Navi-gationMenu/PDF12/CG_20_26.pdf



The Agents & Brokers Education Network (ABEN) is a joint project of state insurance and brokers associations who want to provide high quality continuing education for independent insurance

agents, brought to you online via live streaming video.

UPCOMING COURSES

Professional Ethics in the Insurance Industry THURSDAY 8/1 2 pm EST 3 CE $60.00

E&O Risk Management: Meeting the Chal-lenge of Change presents Understanding Agent Duties

TUESDAY 8/6 1 pm EST 2 CE $48.00

National Flood Insurance Program: Basic Course WEDNESDAY 8/7 10am EST 2 CE $48.00

E&O Risk Management-An E&O Claim - 360 View -TN THURSDAY 8/8 10 am EST 2 CE $30.00

E&O Risk Management: Meeting the Chal-lenge of Change presents E&O Considerations of Agency Operations

WEDNESDAY 8/14 9 am EST 2 CE $48.00

Data Privacy Insurance FRIDAY 8/16 2:30 pm EST 2 CE $48.00

Hot Topics in Personal Lines TUESDAY 8/20 2 pm EST 2 CE $48.00

National Flood Insurance Program: Basic Course WEDNESDAY 8/21 10am EST 3 CE $72.00

Commercial Property Endorsements That Can Make You Money! THURSDAY 8/22 2 pm EST 2 CE $48.00

REGISTER NOW OR GET MORE INFORMATION FOR THESE COURSES AT INSURORS.ABEN.TV

120th

annualconvention

SPACE IS lIMITEd, REGISTER NOW OR VISIT WWW.INSURORS.ORG!

120th ANNUAL CONVENTION • OCTOBER 18-22, 2013



Two More Insurors Will Enter Ins. Hall of FameTwo more Insurors are set to be inducted as part of the 2013 class of the Robert E. Musto Tennessee Insurance Hall of Fame at MTSU. Former President Eldon B. “Jack” Thoma, II, and current CEO Charles T. “Chuck” Bidek, CPCU, will be introduced as the Hall’s newest mem-bers at a ceremony on Thursday, August 1st at 5:30 pm CST.

The induction will take place at the Em-bassy Suites in Murfreesboro. If you are interested in attending please contact Ashley Arnold at [email protected] or call 615.515.2606 by Tuesday, 7/30.

Make-A-Wish Facebook Campaign Begins Aug 1The Trusted Choice® campaign to raise money for Make-A-Wish while promot-ing the independent insurance agency brand with consumers will kick off on August 1st.

With each “share” from the Trusted Choice Facebook page throughout the month, Trusted Choice will donate $10 to Make-A-Wish. Trusted Choice is committed to donating a minimum of $100,000 and a maximum of $150,000 with this campaign.

All of the content posted by Trusted Choice throughout the month on the page can be shared and counted toward the campaign. Examples of Facebook content include photos from local events where Trusted Choice has supported Make-A-Wish, Trusted Choice consum-er content and coverage of the Trusted Choice chopper at the well-known Stur-gis Motorcycle Rally in South Dakota.

Agents can help support the campaign by sharing the content from the Trusted Choice Facebook page on their own Fa-cebook pages and encouraging members to do the same. By clicking “share” on one of Trusted Choice’s posts, the con-tent will become visible to your own friends and followers.

The official hashtag for the campaignis #TrustedChoiceShare. Tweet the link to the Trusted Choice Facebook page at http://www.facebook.com/trusted-choice and include #TrustedChoice-Share at the end.n For more info, review the campaign guide for agents and bro-kers at http://www.iamagazine.com/Media/NewsViews/2013/July_25/trust-ed-choice-facebook-campaign-to-be-gin-august-1/TC-MAW-August-Share-Campaign-Guide%202013.pdf

In 2012, the campaign reached 3.9 mil-lion unique consumers per week at its peak and raised $150,000 overall for Make-A-Wish.

Project CAP Will Host Marketing Webinar 7/31On Wednesday, July 31st at 1 pm CST, Project CAP will host a webinar on how insurance agencies can implement a content marketing strategy into their overall business plan, and use it to grow their reputation in the communities they serve. Register for the webinar today at http://bit.ly/12HTLjm

Fortunately, the Department of Labor has published draft model notices, which can be used by employers as written. The model notices may be found at: http://www.dol.gov/ebsa/healthreform/index.html or through the links below:

Notice to Employees of Coverage Op-tions

Technical Release 2013-02 - Guid-•ance on the notice under FLSA §18B and COBRA: http://www.dol.gov/ebsa/newsroom/tr13-02.htmlModel Notice for employers who of-•fer a health plan to some or all em-ployees: http://www.dol.gov/ebsa/pdf/FLSAwithplans.pdfModel Notice for employers who do •not offer a health plan: http://www.dol.gov/ebsa/pdf/FLSAwithout-plans.pdfCOBRA Model Election Notice: •http://www.dol.gov/ebsa/modelelec-tionnotice.doc

continued from page 1

All Employers Must Provide Notice of ACA

Register Your Agency For ACA Referral Listing Insurors of Tennessee has been asked to participate along with NAHU and NAI-FA in a Health Insurance Referral proj-ect. This is a purely voluntary referral project available to Members Only.

If you, or anyone in your agency, intend to becomecertified andplan to sell onthe Exchange or Marketplace in Tennes-see, please sign up as soon as possible. We will transmit your name, agency, e-mail, phone number, address and county to the group. If you would like to participate, please register online at http://www.insurors.org/source/Meetings/cMeetingFunc-tionDetail.cfm?section=PDS&product_major=ACA713&functionstartdisplayrow=1

In Memoriam - Hank Johnson of MadisonvilleInsurors member, Henry A. “Hank” Johnson, passed away on Wednesday, July 24th at the age of 82. He founded Johnson Insurance Agency in Madison-ville in 1963 and was active in the in-dustry for many years, even working up until the day before his passing. His son, J. Alan Johnson, continues his legacy at the agency.

Visitation will take place from 10 - 11:45 am EST on Saturday, July 27th at Biere-ley-Hale Chapel, 4650 Hwy 411 By-Pass, Madisonville. Funeral services will fol-low. In lieu offlowers,memorialsmaybe made to the First Baptist Church of Madisonville, American Heart Associa-tion or Tri County Center.

the insurors of tennessee bulletin 1314

Documents