W.Va. Commissioner Cline Tells Big ‘I’ about Fraud Unit’s status; group hears catastrophe tips
David Daniel gives tips about how independent agents can prepare for disasters.
The Insurance Commission’s status was discussed by Commissioner Jane Cline, and J. David Daniel, a member of the Big “I” executive committee gave tips about how independent insurance agents can prepare for hurricanes and other disasters during the Professional Independent Insurance Agents of West Virginia’s Big “I” day in Charleston, W.Va.
Cline described the status of the Insurance Commission, mentioning the Fraud Unit and the additional people brought
into the department due to changes made to the state’s worker’s compensation system and the formation of BrickStreet, which she now oversees.
While talking about the insurance fraud problem, Cline mentioned some complaints have involved in-state agents. She said the commission will work very hard to pursue those agents that have committed fraud. The Third-Party Complaint issue was discussed and according to Cline, the number of complaints filed and settled made seems to show that the system is working.
Prepare for catastrophes
“I’m proud to be a part of an industry that is helping to rebuild the lives of hundreds of thousands of people who were affected by the storms,” Daniel said. “With our help, New Orleans is coming back in some ways, but it has a long way to go.”
Daniel, president of Daniel and Eustis Insurance in Baton Rouge, La., said contributions
to the Big “I”‘s Katrina Relief Fund, such as those collected in PIIAWV’s silent auction, have greatly assisted many agency employees in trying to restore their homes and help clients.
“The industry has many issues that can be improved upon,” Daniel said. “Big ‘I’ is working with companies on a national level to make sure the industry is better prepared for the next catastrophe, wherever it may strike. To benefit customers, we are working to better streamline the claims process and to continue to improve the efficiency with which we handle claims.
“One of the lessons learned from Katrina is that our agencies need catastrophe plans so that we can be up and running to serve our customers in times of crisis,” Daniel said. “Agencies can be defined by how well they are able to respond when customers need them the most. We must be prepared by being mobile, and by having the technology that will allow us to operate no matter what happens and where we have to go.”
Daniel told some personal stories about employees from his agency after Katrina. He said one was stuck in her attic for days because of the rising floodwaters. He told of others who had to wade out their homes to escape the rising waters, and even gunshots.
Daniel illustrated what it can be like for our agency employees to endure a catastrophe, and then have to report to work to help others through that same event.
“Employees are our greatest asset and we need to be prepared to transport, house, and equip them if a major event strikes our agencies,” Daniel said. He discussed the need for agencies to offer clients flood insurance, and even excess flood insurance when needed. People need this coverage, but most insureds do not purchase flood insurance.
“For their own good, we need to have our customers make a conscious decision about this matter,” Daniel said. “If they choose not to purchase the coverage, then and we need to document our files to protect our agencies when a flood occurs. After Katrina, those agencies which had done this are glad that they did. It is my hope that agencies in West Virginia are preparing themselves with catastrophe plans, and that they are also offering their clients the necessary insurance coverages such as flood insurance, which will help them in their times of need.”
Steve Roberts, president of the West Virginia Chamber of Commerce talked about the condition of business coming into the state. Most of his research supported the formation of BrickStreet and the positive impact it will have in the future.
Mark Blankenship, RMS Strategies, provided information from the follow-up survey done in January. This was a request by the PIIA’s board of directors to see if the public actually perceived any improvements to the insurance climate in West Virginia. Blankenship’s data shows some gains, but we still have to work on our image.
Insight into the agent appointment process was provided by Greg Daniel, CEO of BrickStreet Mutual. He said there will be at least 45 to 60 agency appointments. He introduced the new marketing managers for Charleston and Wheeling areas. He said there are quite a few businesses that haven’t paid premiums to BrickStreet yet and notices are being issued explaining the ramifications of not obtaining their workers’ compensation coverage. Daniel said the owners of a business are specifically liable for worker’s injuries and are subject to some major fines from the Insurance Commission.
Frank Hartman, the keynote speaker, is West Virginia’s new Consumer Advocate appointed by the governor. Hartman stressed the need for open communication between his position and the agency force.