pima

ConnXions
Linking Ideas, Members & Expertise MIDYEAR MEEtIng 2011

Professional Insurance Marketing Association | www.pima-assn.org | Summer 2011

From the President

Outgoing Mayor Richard M. Daley ended his 22-year reign by declaring the week of May 9th PIMA Week in Chicago...well, not really, but it certainly SEEMED that way! A host of important PIMA initiatives took place over the course of four days here, and I want to share a summary of those activities with you. On Wednesday morning, a late spring thunderstorm was gathering energy. But natures innate majesty revving up for an impressive display couldnt compete with the energy generated INSIDE the Nathan Davis conference room at the AMAs headquarters. This was where the initial meeting of the PIMA Brand Task Force was in progress, and the level of brainstorming was ratcheted way up! The session was facilitated by Paul Meyer, co-President of Tecker Associates (the best in the Association org. dev. consulting business). Paul has an extensive background in both the for-andnot-for-profit worlds, including expertise in affinity programs as well as insurance and other benefits. Chairing the Task Force is Bill Tyson, a long time PIMA member and marketing strategist. Also on the team are Al Drowne, Senior VP of continued on page 3

Peak Into the Future!

We hope that you have registered for PIMAs MidYear Meeting & Trade Show from July 28-31 at The Broadmoor in Colorado Springs. Our Meeting Chairs, Sherri Lagana, Liberty Mutual; Dave Schaeffer, American Independent Marketing, Inc. and Mike Wise, WebWisedom have produced a forward-looking session that will challenge assumptions and assist you in envisioning new opportunities for business growth. Opening keynote speaker David Zach, is an internationally-recognized Futurist whose professional experiences include a role in environmental scanning and strategic planning at Northwestern Mutual. He has also taught Future Studies. He will lead a forward-facing tour of technology, economics, busi-

In This Issue

3 8 14

PIMA Legend Award Rhode Island Trusts LegaLink

ness, education, and society and related strategic trends affecting the insurance business. The future will be an Age of Measurement or an Age of Design. And the paradox of these two will be both very contentious and very innovative. It will also be an age where customers will be key players in the design of products and services and yes, even marketing. Customization of everything will come with just a few clicks. Have you thought abouthow to help people deal with the unlimited choices they now have and then help them be satisfied with the choices made? How underwriting can be automated? How to reach consumers who receive more than 3,000 messages per day? Now is the time to make some choices about what can be different about your organizations future. Much has been written about Multi Channel Marketing. According to the Internet
continued on page 5

pima ConnXions
Volume 37, Issue 2 ConnXions is published 3x annually by the Professional Insurance Marketing Association
35 East Wacker Drive, Suite 850 Chicago, IL 60601-2106 (817) 569-7462 (PIMA)

From the CEO

By Mona Buckley

Year End Audit

PIMA recently received our final accountants Year End Audit and results were consistent with Treasurer Ed Miltenbergers Report at the Annual Meetingwe had an extraordinarily good year, due in large part to the attendance success at the first new MidYear Meeting & Trade Show. To recap, for those not at the Annual Meeting Business Meeting, PIMAs annual Budget is in the $900K range; our year-end Net Operating Margin goal is less than 3%. We ended the year with a $49K surplus. (Our IRS Financial Reporting Form 990 and Audit are available to any member upon request.) As Denise, Ed and I then shared, PIMA has a six month Operating Reserve and our goal is not to grow thatbut to reinvest any excess Net Revenue in enhanced member services. This year, as Denises column notes, we are doing just that. In addition, the Exec. Comm. was able to engage Legal Counsel on our members behalf for a pressing and important Regulatory issue without hesitation (see below). Your support is what has ensured that PIMA has thrived during a tough two years for many associations, nationally. Thank you!

many Insurance Company members have Trusts in the state). After a couple of quick conference calls and a heads-up alert to members, PIMAs officers authorized a letter to the Rhode Island Department of Business Regulation. On April 26th I joined our temporarily-engaged lawyer (who works with several members in this area) at a public hearing at the Departments Administrative Officesalong with about a dozen reps. from various companies and trade associations (ACLI and AHIP most notably). The Departments staff shared that their primary goal was to gain a better understanding of the nature and size of the Trust business in the state, including the regulatory implications for them and any related admin. costs to handling consumer complaints. It was a cordial meeting. All present shared concerns/opposition to the Rules broader implications, as written, and a willingness to assist the Department in refinement. The Department invited additional written comment through June 10th and also noted that their administrative rule making process required posting and a datebut there was no urgency. Since that time, we have learned that implementation of the Rules is on-hold and the department is having internal discussions about next steps. Thanks go to your officers along with Jerry and Chris for quick response, dialogue and action. If you have any questions, please contact any of us. We hope to see you at the MidYear Meeting for another great program that should get you thinking and multiple networking opportunities.
Mona Buckley, CEO, mona@pima-assn.org 817-569-PIMA (7462)

www.pima-assn.org

Next Issue Deadline Date is September 9th, 2011

PIMA Communications Manager Kelly Wixson Kelly@pima-assn.org

Board of Directors
President, Denise Friday AMA Insurance Agency, Inc. President-Elect, Edwin Miltenberger, CLU, CEBS Gilsbar/CAAGS Treasurer, Samuel Fleet AmWINS Group Benefits Secretary, Daniel OBrien New York Life Imm. Past President (ex officio) James Gallagher USI Affinity CIR PIMA CEO (ex officio) Mona Buckley

Executive Committee

Directors
Allen Bress (2014) Merchants Benefit Administration Ron Clarke (2012) Affinion Group Cathy Colburn (2013) Affinitas Partners John Kelly (2013) Prudential Mark Kelsey (2014) Kelsey National Corporation/ healthinsurance.com Edward Klayman (2013) IMAC Sherri Lagana, CLU, ChFC (2012) Liberty Mutual Michael Mercer (2013) Transamerica Affinity Services Joan OSullivan (2012) Marsh Shannon Warner (2014) American General Life Michael Wise (2012) WebWisedom

RI Regulatory Matters
In addition to the activities Denise detailed,we had a media inquiry from Consumer Reports about sponsored insurance programs and met our goal of providing context and a response (when appropriate) in the Legislative & Regulatory area. In early April co-chairs of the Legislative & Regulatory Action GroupJerry Wickersham and Chris Carway alerted us to posted, proposed new Rules in Rhode Island related to Trusts. The Rule raised issues for the customers of many PIMA member organizations (some Agency and

pima ConnXions

From the President (continued from page 1)

AXIS, Shannon Warner, an American General Life Marketing Officer, Mike Wise, of WebWisedom, myself, and staff members Mona Buckley and Jeanne Sheehy. Also lending their expertise to the discussions that day were Executive Committee members Ed Miltenberger, Sam Fleet and Jim Gallagher, as well as Board Member/ Membership Committee Chair Cathy Colburn of Affinitas. The conversations were intense, provocative, always thoughtful, and future-focused. This initiative is a pivotal undertaking for PIMA, as we focus on our future and our brand as the reputation for relevance that youre awarded in the marketplace. In July, a formal presentation will involve the full Board to secure approval on next steps, including a formal brand marketing plan, an expanded Membership & Marketing communications strategy and plans. You will hear more as the year unfolds. An Executive Committee meeting was also held in Chicago that week to recap the status of current initiatives for the year, as well as other legislative and regulatory issues, such as the current situation on Rhode Island. See CEO Mona Buckleys column, and a letter PIMA sent, in this issue. In addition, on May 11th and 12th, Marketing Method Competition judging was conducted at the new home of our Association HQ/Association Management staff (Bostrom). Our 2011 judges Stephanie Johns-Chin (Chubb), Eric Rozencwaig (ABIS) and Cindy Warden (AMA Insurance Agency) spent two days evaluating approximately 40 entries across 11 categories to determine the best of the best. Results will be announced at PIMAs MidYear Meeting so dont miss your chance to see excellence unveiled in gorgeous Colorado Springs. Finally PIMA hosted the first offsite PIMA Agency CEOs Forum in Chicago on May 12th and 13th. Typically the Forum is scheduled as part of the formal conference agenda during the Annual and MidYear Meetings. However, this peer group sought more time together for this conclave, dedicated strictly to their issues, and it provided both time and opportunity for PIMA leaders to explore the topics that most concern them. Initial feedback from the participants indicated that this ancillary session, co-chaired by PIMA Board members Sam Fleet (President, AMWins) and Allen Bress (President, Merchants Benefit Administration) was well-received, and will continue in the future. A couple of other quick updates: Board Member John Kelly is hard at work on identifying quality providers to finalize the Leadership Program parameters that I first reported on at the Annual Meeting dinner. John is supported by his other committee/board members, Mark Kelsey, Eddie Klayman, Joan OSullivan and Ken Kelting. In addition, PIMA President-elect Ed Miltenberger will be polling PIMA leaders for topics of interest to serve as the framework for formal Benchmarking Surveys to be launched in 2012. PIMA is a vibrant organization that brings together the most influential leaders in the insurance/affinity benefits marketplace. I think its evident that much good work is underway to deliver on our implicit promise of delivering relevant and meaningful value to both current AND future members. One last reminderplease register today, if you havent, for the Mid-Year Meeting. Tri-Chairs Sherri Lagana, David Schaeffer and Mike Wise have put together a stellar, dont want-to-miss-it program! Come to Colorado to network with your peers, explore potential business opportunities, and build some new and lasting, relationships in an educational and convivial atmosphere! I hope to see you there!

PIMA Legend Award

The PIMA Legend Award was created in 1997 and is awarded, from time to time, to recognize members who have distinguished themselves by making an outstanding contribution in the creation, growth and evolution of the insurance direct marketing industry and to PIMA. Prior recipients include: David Dunn; Frank Cella & Don Lang; Marty McCarthy & Mike Fox; Gary Kirke & Bill Van Orsdel; Arch Parker; Jack Pearl and Al Wohlers.

How to Nominate
By August 1 send a written nomination to PIMA President Denise Friday at denise.friday@amainsure.com. This should include a detailed description of the contributions the nominee has made both to the industry and to PIMA. (Note: Prior nominees may be renominated.) An affirmative vote of the Executive Committee is needed to forward the recommendation to the Board. A two-thirds affirmative vote by the Board is needed to bestow the Legend Award. The Award, if bestowed, would be presented at the Annual Meeting.

The caped crusader had a uTiliTy belT. you have us.

At AmWINS Group Benefits our team can make you look like a hero to your clients. As a leading wholesale broker and group insurance administrator, we can provide you with the power to solve complex issues for your clients. And once youve saved the day, theyll think you deserve a mask, a cape and a cool nickname.
R E T I R E E B E N E F I TS | P H A R M AC Y B E N E F I TS | ACC I D E N T & H E A LT H TPA SERVICES | SMALL GROUP | STOP LOSS | UNDERWRITING SPECIAL INITIATIVES | ALTERNATIVE FUNDING

9515-AGB Mask_Cnxn.indd 1

1/24/11 5:23 PM

pima ConnXions

MidYear Meeting Overview (continued from page 1)

Advertising Bureau, well-executed multichannel campaigns generate a sales lift ranging from 7% to 34%. With the fatigue of single channel direct mail efforts, insurance direct marketers need to develop, orchestrate and deploy a series of multiple contact strategies, messages & offers. Bill Tyson will moderate a panel that will cover: Quantitative research findings on the subject; how the sales process changed? Gaining channel synergies Traditional single vs. multi-channel efforts (what works and what doesnt); Best practices including targeting, personalization & messaging both online and offline as well as leveraging automation and technology; how social media fits into the marketing mix; Success stories of improved acquisition, cross sell/up-sell and retention campaigns. Insurance 2020 The insurance industry is embarking on a grand reset of its business model-- and even its very identity. This reset is being driven by four primary forces: the post-financial crisis new normal that will have major impact on how & where insurance buyers go about their daily lives; competitive pressures that will challenge status quo business models; demographic pressures that will drive both a more finely grained segmentation of the market and greater customization of protection products offered; and finally, the consumerization of technology that will itself have profound implications, both for how the industry markets, sells, and services insurance buyers and for the upcoming (and dramatic) shift in the insurance work force. Ellen Carney of Forrester Research will examine the four mega forces that will shape the insurance industry over the next 10 years. Brian Sullivan, President of Risk Information Inc. and veteran insurance journalist & analyst has spent three decades tracking changes in the business environment that impact insurance and financial services industries. He will explore the state of the insurance market, taking a look at the new information flows that are transforming every aspect of insurance operations, the emergence of mobile computing, shifting demographics, developments in cross-selling, and more. He will guide us through the once-in-a-generation changes coming our wayand assess how enterprises of all types will have to adjust not just to survive, but to thrive. Also, PIMAs 2011 Marketing Methods Competition winners will be announced, including the Best of PIMA recipient, and entries displayed. And our Exhibitor Trade Show will showcase resources for your business. Just a couple of event sponsorships remaincall PIMA at 817-569-7462(PIMA).

Auto And Home insurAnce benefits to engAge And retAin your members.

Find out why were the #1 sponsored auto and Home benefits program in the industry. We know how focused you are on doing the right thing for your members. With Liberty Mutuals Auto and Home Benefits Program, they could enjoy exclusive group savings of up to $327 or more on insurance they need, while your association enjoys additional non-dues revenue.* Plus, well take care of the setup, management and marketing so you can focus on your membership.
To geT sTarTed conTacT sherri Lagana
Call

1.857.224.2407

CliCk

LibertyMutual.com/associations

auto

Home

*Figure based on a February 2011 national sample of auto policyholder savings when comparing their former premium with those of Liberty Mutuals group auto and home program. Individual premiums and savings will vary. Savings available where state laws and regulations allow, and may vary by state. To the extent permitted by law, applicants are individually underwritten; not all applicants may qualify. Coverage provided and underwritten by Liberty Mutual Insurance Company and its affiliates, 175 Berkeley Street, Boston, MA. 2011 Liberty Mutual Insurance Company. All rights reserved.

pima ConnXions

PIMA Webinar Co-Sponsorship

By Susan Hussar

PIMAs commitment to industry education through well-planned, well-attended and well-versed conferences is legendary. Over the past two years, we have taken that level of commitment one step further, by connecting members between our two conferencesvia Webinars. Were now ready to expand on that activity. Dozens of members (and others in their organizations) have participated in those educational Webinars, hosted through PIMA. Many have accessed the archives for replays. The goal in 2011-2012 is to expand the number of Webinars we offer to 3-4 from 2. In doing so, we hope that more member organizations can learn from PIMA peers, experts and industry leaders throughout the year.

Recently, the PIMA Board of Directors approved the criteria and process for sponsoring a Webinar. The events will be coordinated by and through PIMAs web vendor and will provide a vehicle for ensuring topnotch content and presentations. If you or your organization would like to co-sponsor a Webinar via PIMA, there is a new proposal form on the Websitesubmitted for content review by the Education Action Group. Key aspects: Present an informational vs. selfpromotional topic via a Webinar Program Proposal Form (see the website). Conduct a one-hour session that includes intros. and a Q & A session (program content to be guided by a member of our B:7.5 Education Action committee or Board). T:7.5
S:7.5

Be prepared to submit your materials 4 weeks before the webinar date to PIMA for content and preparation review. Co-sponsorship of a PIMA Webinar is $900 (50% of PIMAs costs). This includes receiving pre and post webinar promotion and acknowledgement along with the opportunity to introduce your organization to webinar attendees. PIMA hosts the technology & registration aspects of the event via our regular vendor. If interested, simply go to the PIMA website to obtain the PIMA Webinar Proposal/Request Form. Also, and very sincerely if you have ideas for Webinar topics for PIMA to pursue, please let myself or PIMA CEO Mona Buckley know.
Susan Hussar of The Hartford is PIMAs new Education Action Group Chair. Susan.hussar@thehartford.com

Expanded business requires improved methods.

Linus

B:5

S:5

T:5

MetLife Auto & Home can identify new opportunities to enhance your membership benets.

Our forward-thinking approach and experience as one of the nations leading* auto and home insurance providers ensure that we provide the right products to protect whats most important to your members.
Call Lance Dordick at 770-407-2416 for a review of your auto and home membership insurance program.
*Source: 2009 Group A&H Market Assessment & Competitive Landscape Review. MetLife Auto & Home is a brand of Metropolitan Property and Casualty Insurance Company and its afliates, Warwick, RI. [LC] Metropolitan Life Insurance Company, New York, NY 10166. 2011 MetLife, Inc. 2011 PNTS L0311165631[exp0214][All States]

HERE FOR YOU

YEAR AFTER YEAR

Group Membership Association

For over 55 years, New York Life has been serving the needs of association members and their families. Our exibility to tailor programs to meet your customers needs, backed by the highest possible ratings for nancial strength make New York Life indeed, the company you keep. We provide the broker, TPA and association communities with a diverse portfolio of products including Life, AD&D, Disability Income, Business Overhead Expense, Hospital Indemnity and more. ese programs are designed to meet the needs of Professional Associations, Union, Military, Alumni, Educational, Government, Employer groups and Financial institutions.

Talk to us today and see how Group Membership Association can help improve your customers insurance options and coverage.
Dan OBrien Vice President, Sales 914.846.3345 dobrien@nyl.com Gabe Cabrera Assistant Vice President, Sales 914.846.4057 gcabrera@nyl.com

THE COMPANY YOU KEEP.

www.newyorklife.com
Standard & Poors (AAA), A.M. Best (A++), Moodys (Aaa) and Fitch (AAA) for nancial strength. Source: Individual ird-Party Ratings Report (as of 1/25/11). New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 SMRU #00444572 CV (Exp.04/2013)

pima ConnXions

Thank You to 2011 Sponsors

Diamond
American General Life Companies AmWINS Group Benefits New York Life Transamerica Affinity Services

PIMA Response on R.I. trusts Issue

In April, the Health Insurance Commissioner for Rhode Island published a Public Notice of Proposed Rule-Making to address Insurance Issued to Trusts or Associations. Comments on the proposed regulation were due by April 26. Within the Purpose section of the proposed Regulation 16, it stated that the Office of the Health Insurance Commissioner had received complaints from consumers residing out of state who receive certificates of insurance issued to groups outside of Rhode Island and whose resident states claim that they do not have regulatory authority over the health insurance policy. The Office of the Health Insurance Commissioner felt that this created a regulatory vacuum. The proposed regulation was designed to remedy this problem by: 1. requiring every health insurer (as well as HMOs, dental service plans, life, etc.) issuing insurance through a Rhode Island trust or association to comply with the applicable insurance laws of the state where the insured person or group resides and 2. that all policy forms include a term providing that the insurance regulatory agency and courts of the jurisdiction in which the individual resides or the group is located, have jurisdiction over the individual or group health insurance coverage and health benefit plan as if such coverage or plan were issued directly to the insured. The proposed regulation, if adopted, will had an effective date of June 1, 2011.

Gold
Affinion Group AXIS Global Accident & Health Chubb Consumer Solutions The Hartford Liberty Mutual Prudential
April21,2011
April21,2011 ElizabethKelleherDwyer ElizabethKelleherDwyer StateofRhodeIslandandProvidencePlantations DepartmentofBusinessRegulation StateofRhodeIslandandProvidencePlantations OfficeoftheHealthInsuranceCommissioner 1511PontiacAvenue,Bldg.691 DepartmentofBusinessRegulation Cranston,RI02920 OfficeoftheHealthInsuranceCommissioner Re:ProposedRegulations16and117 1511PontiacAvenue,Bldg.691 DearMs.Dwyer: Cranston,RI02920 WearewritingonbehalfoftheProfessionalInsuranceMarketingAssociation (PIMA),anotforprofitmembershipassociationofapproximately110 organizations.Formorethan35years,PIMAhasservedastheleadingnational Re:ProposedRegulations16and117 organizationofagents,brokers,thirdpartyadministrators,insurancecompanies andotherbusinessesinvolvedinthedirectmarketingofinsuranceproductsto associations,employers,creditunionsandotheraffinitygroups.Wearewriting tourgetheRhodeIslandDepartmentofBusinessRegulationandOfficeofthe HealthInsuranceCommissioner(theAgencies)towithdrawproposed InsuranceRegulation117andproposedOfficeoftheHealthInsurance CommissionerRegulation16(theProposedRegulations).

DearMs.Dwyer:

Silver
Aon Gilsbar ING Association Sales KBM Marsh Consumer MetLife USI Affinity

WearewritingonbehalfoftheProfessionalInsuranceMarketingAssociation (PIMA),anotforprofitmembershipassociationofapproximately110 Forthepast50years,RhodeIslandhasservedastheleadingU.S.jurisdiction forgroupinsurancepoliciesissuedtotrustsandassociations.RhodeIslands organizations.Formorethan35years,PIMAhasservedastheleadingnational progressiveapproachtoregulatinggroupinsurancepoliciesissuedtotrustsand associationshasbenefitedconsumersthroughlowercostsassociatedwith organizationofagents,brokers,thirdpartyadministrators,insurancecompanies reducedadministrativeexpenses.Thishasallowedinsurancecompanies,agents andbrokerstomorequicklyandefficientlybringproductstomarketthatserve andotherbusinessesinvolvedinthedirectmarketingofinsuranceproductsto theneedsofconsumers.Thejointbuyingpowerofgrouptrustpolicyholders associations,employers,creditunionsandotheraffinitygroups.Wearewriting hasallowedthousandsofsmallemployersandassociationstoprovidequality insurancebenefitsforemployees,retireesandassociationmembersacross tourgetheRhodeIslandDepartmentofBusinessRegulationandOfficeofthe multiplestateswithacommonbenefitstructure. HealthInsuranceCommissioner(theAgencies)towithdrawproposed TheProposedRegulationsappeartobeintendedtoextendextraterritorial jurisdictionoverpoliciesissuedtoRhodeIslandtrustsbyrequiringthatsuch InsuranceRegulation117andproposedOfficeoftheHealthInsurance policies(i)meetthelawsofallstateswheregroupsarelocatedoranindividual insuredislocated,and(ii)includeaprovisionextendingjurisdictiontothe CommissionerRegulation16(theProposedRegulations). regulatoryagenciesandcourtsofsuchjurisdiction.
WhileweapplaudtheeffortsoftheAgenciestoimproveconsumerprotection Forthepast50years,RhodeIslandhasservedastheleadingU.S.jurisdiction measures,webelievetheProposedRegulationsareoverbroadandunnecessary asstateregulatorsandcourtsinotherjurisdictionsalreadypossessthe forgroupinsurancepoliciesissuedtotrustsandassociations.RhodeIslands authoritytooverseeinsuranceproductsissuedintheirstateseitherdirectly orunderatrustestablishedinanotherstate. progressiveapproachtoregulatinggroupinsurancepoliciesissuedtotrustsand associationshasbenefitedconsumersthroughlowercostsassociatedwith reducedadministrativeexpenses.Thishasallowedinsurancecompanies,agents andbrokerstomorequicklyandefficientlybringproductstomarketthatserve theneedsofconsumers.Thejointbuyingpowerofgrouptrustpolicyholders hasallowedthousandsofsmallemployersandassociationstoprovidequality insurancebenefitsforemployees,retireesandassociationmembersacross multiplestateswithacommonbenefitstructure.

Strategic Partners
Empire Meeting Solutions

TheProposedRegulationsappeartobeintendedtoextendextraterritorial jurisdictionoverpoliciesissuedtoRhodeIslandtrustsbyrequiringthatsuch policies(i)meetthelawsofallstateswheregroupsarelocatedoranindividual 230 E. Ohio Street, Suite 400 Chicago, Illinois 60611 Phone (817) 569-PIMA (7462) Fax (312) 644-8557 www.pima-assn.org insuredislocated,and(ii)includeaprovisionextendingjurisdictiontothe regulatoryagenciesandcourtsofsuchjurisdiction. WhileweapplaudtheeffortsoftheAgenciestoimproveconsumerprotection measures,webelievetheProposedRegulationsareoverbroadandunnecessary asstateregulatorsandcourtsinotherjurisdictionsalreadypossessthe authoritytooverseeinsuranceproductsissuedintheirstateseitherdirectly orunderatrustestablishedinanotherstate.

pima ConnXions
Moreover,itisnotcleartoushowtheProposedRegulationswillbeimplementedandenforced.Thislackofclaritywill likelycausesomecompaniestostopissuingpoliciestoRhodeIslandtrustsortomovethisbusinesstootherstateswith morefavorablelawsandregulations. Wearegreatlyconcernedthat,ifpromulgated,theProposedRegulationswillproduceseveralunintendedconsequences thatwillactuallybeharmfultoinsuranceconsumersaswellasRhodeIslandtaxpayers,employeesandbusinesses.We askthattheAgenciesconsiderthefollowingpotentialconsequencesoftheProposedRegulations: MarketimpactTheProposedRegulationsmaycausesomecompaniestowithdrawfromthissegmentofthe market,whichwillmakecoveragelessavailableforconsumers; IncreaseinthecostofcoverageInsuredscouldseeanincreaseintheirpremiumsbasedontheincreased administrativeexpensesforinsurers.Likewise,employerswouldseeanincreasedcomplexityoftheirhuman resourcefunctionsandotherrelatedcosts;and EconomicimpacttoRhodeIslandAsaleadingtruststate,numerousjobshavebeencreatedinRhodeIslandwith financialinstitutionsservicingthisbusiness.Thesejobsmaybeeliminatedormovedtootherstates.Additionally, theProposedRegulationswilllikelyresultindecreasedrevenuesforcertainRhodeIslandbusinessesandthustax revenuetotheState. Inthisdifficulteconomicclimate,theimpactoftheProposedRegulationscouldbedevastatingtomanyinsurance consumersnationally,notforprofitaffinityorganizations,employers,andtheStateofRhodeIsland.Asaresult,we encouragetheAgenciestocarefullyconsidertheseissuesbeforemovingforward. Inourview,thissegmentofthemarkethasfunctionedandservedtheinsurancebuyingpublicwellformorethan50 years.If,however,theAgenciesbelieveitisnecessarytoincreaseregulationinthisarea,wewouldstronglyencourage amuchmorenarrowandfocusedapproachandthatyouworkwiththeindustry,consumergroupsandotherregulators todirectlyaddresstheconsumerprotectionconcernsthatoriginallypromptedtheProposedRegulations. Sincerely, THEPROFESSIONALINSURANCEMARKETINGASSOCIATION DeniseS.Friday President MonaBuckley ChiefExecutiveOfficer

Better results. Guaranteed.

KBM Group designs, delivers, and manages integrated healthcare and insurance marketing solutions that help clients identify, acquire, and retain members and grow those valuable relationships. KBM Group brings a team of marketing professionals with experience to offer your business unparalleled expertise in direct marketing, brand strategy, creative, analytics, database, and online services. How can KBM Group guarantee better results for you? Call 800-673-1685 or visit www.kbmg.com to find out.

230 E. Ohio Street, Suite 400 Chicago, Illinois 60611 Phone (817) 569-PIMA (7462) Fax (312) 644-8557 www.pima-assn.org

PIMA2011.indd 1

4/29/11 4:46 PM

Let us help you reach your group insurance goals

With trusted partners, American General provides a variety of innovative solutions to meet your association and affinity group insurance needs.
Insurance that works
n n n

O ngoing product development C ost-effective coverage members need H igh service standards that will help ensure member satisfaction

A full spectrum of group products

n

L ife Insurance Term Life, Joint Term Life, 50-Plus Term Life, and 10-year and 20-year Level Term H ospital Accident and Hospital Indemnity D ental C ancer Recovery Plan O ther products available upon request

n n n

A ccidental Death & Dismemberment C atastrophic Medical Insurance D isability Short-term, Long-term, Business Overhead C omprehensive Accident

n n n n

For more information on how our solutions can meet your benefit needs, call 1-877-800-8691 or visit www.americangeneral.com/affinitybenefits.

better results, increased member satisfaction

Benefit Solutions, www.americangeneral.com/benefitsolutions, is a division of American General Life Companies. 2011. All rights reserved.

pima ConnXions

j Grapevine i
ji Ternian Insurance Group has introduced HealthBasic, a limited medical plan for small employers with as few as five lives. The plan features different levels of coverage for different classes of employees a mid-level plan for owners and two affordable limited medical plans for salaried and hourly employees. HealthBasic also meets small employers needs by offering hassle-free administration, a voluntary solution thats 100% employee-paid and usable benefits with first-dollar coverage and no deductibles. Ternian Insurance Group LLC., based in Phoenix, Arizona, is an independent insurance broker serving the employeebenefits brokerage and consultant community on a national basis. ji Next Generation Insurance Group (NGI) is now delivering its tuition insurance directly to Sallie Mae student loan borrowers. The insurance, provided as a new tuition insurance benefit within Sallie Maes Smart Option Student Loan, reimburses up to $5,000 of tuition, room, board and other covered fees not refunded by the school if a student is forced to withdraw for eligible medical reasons. This offering reflects NGIs mission to safeguard investments in education while educating students and young adults on lifestage risks. For more information, please contact PIMA Member Bill Suneson at bsuneson@nextgenins. com, or visit www.nextgenins.com/. ji Call for Committee Members! The PIMA Education Action Group is Looking for volunteers. One way to boost your PIMA experience is to serve on a committee. The Education Action Group is looking for volunteers who want to assist with the educational aspects of the PIMA experience, including conference & Webinar content. In addition, if interested in being a volunteer Meeting Chairs for an upcoming meeting, please contact Education Action Group Chair Susan Hussar at susan.hussar@thehartford.com or PIMA CEO Mona Buckley. (Note: we maintain a list of interested volunteer meeting chairs and rotate that opportunity by organization, length of member experience in PIMA and member type).

Offering our Rock Solid reputation for excellence and well over half a century of proven experience.
With more than 60 years of experience, The Prudential Insurance Company of America has the depth of knowledge and reputation of stability to match your goals, whether your organization is an association, affinity group or TPA. If youre offering life, disability, or long term care insuranceor a suite of coverages to your members, Prudentials proven underwriting and claims administration, as well as industry recognized marketing services, will exceed your expectations and offer real insurance solutions to your membership. We are eager to share with you the same breadth of knowledge and service we provide to all our clientsthose with whom we have decades of history, and those who recently embraced our expertise. Their enthusiastic acceptance of our services is the best endorsement we could offer.

Find out what Prudential can do for your organizationand the people who count on you. Call John Kelly at 1-985-624-5224. Well introduce you to a new way of protecting your members thats more than 60 years in the making.

Association/Affinity Services

Group coverages issued by The Prudential Insurance Company of America, Newark, NJ. Prudential and The Rock logo are registered service marks of The Prudential Insurance Company of America and its affiliates. 0176430 0176430-00001-00 Ed.12/10 5096

11

pima ConnXions

new Members
AGENCIES
Aegis Administrative Services, Inc Sam Cozzo, Marketing Director (VM) sc@aegisadmin.com Geri Ann Cangelosi, President gac@aegisadmin.com Carrier and Affinity Group Strategies, LLC Edwin J. Miltenberger, President (VM) emiltenberger@caags.com

Prospective Members
Edwards Angell Palmer & Dodge LLP Michael T. Griffin, Partner mgriffin@eapdlaw.com Los Angeles City Employees Association and LACEA Insurance Services John Hawkins, President & CEO jhawkins@cityemployeesclub.com ProLawInsurance Ron Weltmann, ron@prolawinsurance.com

Willis Michael P. Dangler, Natl Affinity/ Assn Practice Leader michael.dangler@willis.com CCM Insurance Services Michael Guglielmo, JD, CLU, RHU, ChFC, mike@ccminsuranceservices.com

ASSOCIATION/ AFFINITY MARKETS

LET OUR ABILITIES SUPPORT YOURS.

The Hartford has led the way with our Ability philosophy that focuses on what people of all abilities can do, while helping your business be more productive. And we deliver solutions through a set of capabilities that are focused on customer needs. Its why were No. 1 in new fully-insured disability sales.1 Because our abilities support yours. To learn more about The Hartfords products, contact:
Jim Larson 312.384.7629 Susan Hussar 703.642.4826 Greg Pihl 860.843.5890
THE HARTFORD IS THE OFFICIAL DISABILITY INSURANCE SPONSOR OF U.S. PARALYMPICS.
The Hartford is The Hartford Financial Services Group, Inc. and its subsidiaries, including issuing companies Hartford Life Insurance Company and Hartford Life and Accident Insurance Company. Policies sold in New York are underwritten by Hartford Life Insurance Company. Home Office of both companies is Simsbury, CT.
1

LIMRA 2010 new fully insured group life and disability sales. 36USC220506

4062 Printed in the U.S.A. 2011 The Hartford, Simsbury, CT 06089

12

I WANT EASY

Delivering The Human Side of Insurance

EASY PLANNING. EASY SOLUTIONS.

Ask us about Medicare solutions for 20112012!

Transamerica Affinity Services, Inc., part of Transamerica Life & Protection, offers benefit solution strategies designed with one thing in mindhelping you get what you want. Transamerica works with brokers, consultants, third party administrators and managing general underwriters to place supplemental life and health insurance products with groups such as employers, unions, associations, credit unions, government entities, travel agencies and other organizations.

For information call (800)

229-6565

Mike Mercer ext. 5346 Keith Schaub ext. 5298 Mark Zimmerly ext. 5312 John Zipp ext. 5330 or visit www.TransamericaAffinity.com
Transamerica Life & Protection is an operating division of Transamerica Life Insurance Company and its affiliated AEGON companies offering life and health insurance and financial products.

520 Park Avenue | Baltimore | MD 21201-4500

23199658

13

pima ConnXions

LegaLink
State Issues
California: SB 296, Chapter 575, Medical ID Cards. Effective 7/1/11, ID cards must include the health insured internet web site address. Effective 1/1/12, every health insurer that provides coverage for professional mental health services shall establish an interest web site that shall include or provide a link to the following information: (1) A telephone number that the insured or provider can call, during normal business hours, for assistance obtaining mental health benefits coverage information, including the extent to which benefits have been exhausted, in-network provider access information, and claims processing information. (2) A link to prescription drug formularies or instructions on how to obtain formulary information. (3) A detailed summary description of the process by which the insurer reviews and approves, modifies, or denies requests for health care services as described in Section 10123.135. (4) Lists of providers or instructions on how to obtain a provider list as required by Section 10133.1. (5) A detailed summary of the health insurers grievance process. (6) A detailed description of how the insured may request continuity of care as described in Section 10133.55. (7) Information concerning the right, and applicable procedure, of the insured to request an independent medical review pursuant to subdivision (i) of Section 10169. (b) Except as otherwise specified, the material described in subdivision (a) shall be updated at least quarterly. (c) The information described in subdivision (a) may be made available through a secured Internet Web site that is only accessible to the insured. (d) The material described in subdivision (a) shall also be made available to insureds in hard copy upon request. (e) Nothing in this article shall preclude an insurer from including additional information on its Internet Web site for applicants or insureds, including, but not limited to, the cost of procedures or services by health care providers in an insurers network. 14 (f) The department shall include on the departments Internet Web site, a link to the Internet Web site of each health insurer described in subdivision (a). (g) This section shall not apply to Medicare supplement insurance, Employee Assistance Programs, short-term limited duration health insurance, Champus-supplement insurance, or TRI-CARE supplement insurance, or to hospital indemnity, accident-only, and specified disease insurance. This section shall also not apply to specialized health insurance policies, except behavioral healthonly policies. (h) This section shall not apply to a health insurer that contracts with a specialized health care service plan, insurer, or other entity to cover professional mental health services for its insureds, provided that the health insurer provides a link on its Internet Web site to an Internet Web site operated by the specialized health care service plan, insurer, or other entity with which it contracts, and that plan, insurer, or other entity complies with this section or Section 1368.016 of the Health and Safety Code. Hawaii: SB 232 Civil Unions. Effective 1/1/12, act provides that a party to a Civil Union lawfully entered in the state of Hawaii shall have all the same rights, benefits, protections and responsibilities under the law as are granted to spouses. Illinois: SB 1716; Public Act 1513 Civil Unions. Effective 6/1/11, act provides that a party to a Civil Union is entitled to the same legal obligations, responsibilities, protection and benefits afforded by the law of Illinois to spouses. Maryland: Reg. 31.0315 Senior Designations. Effective 4/4/11, defines misleading use of a senior retiree credential or designation by advisors and insurance producers in connection with life and health insurance or annuities. New York: Reg. Emergency 199 (11 NY4 RR 225). Effective 3/25/11, Emergency regulation rule establishes standards and requirements for use of senior-specific certifications and designations in the sale of life insurance and annuities. Reg. 62 (11 N4C RR 52). Effective 3/30/11, establishes internal appeal procedure standards for long term care insurance.

Significant Proposed Legislation

Indiana: SB 514. If enacted, it would expand the coverage of the do not call list to include mail sent to consumers in Indiana through the United States mail soliciting the sale of consumer goods or services or a charitable contribution. Changes the name of the list to the do not contact list. Provides that a consumer may list either the consumers residential telephone number or the consumers mailing address, or both the consumers residential phone number and mailing address, in the do not contact list. Changes the name of the consumer protection division telephone solicitation fund to the do not contact fund. Repeals an obsolete definition. New York: NY has proposed a reorganization that would shift regulatory oversight of health insurance products (including long term care and disability income insurance) from the Department of Insurance to the Department of Health. Rhode Island: Use of Trusts The Rhode Island Insurance Division held a hearing on April 26, 2011 regarding Proposed Regulation 117 Insurance Issued to Trusts and Associations, which would require insurers that issue insurance through a Rhode Island trust to comply with applicable insurance laws of the state where the insured person or group resides. The proposed regulation also requires that the forms used in connection with insurance issued through a Rhode Island trust include a provision giving the regulatory agencies and courts in the state where the insured person or group resides jurisdiction. The regulation applies to individual and group insurers issuing policies through trusts in Rhode Island. PIMA was represented at the hearing by retained Counsel and CEO Mona Buckley, following up on a letter sent on behalf of PIMA earlier. At press time Rhode Island was backing off proceeding with the regulations at any time in the immediate future and was working with industry groups to gain more information about the current Trust business in the state. See the PIMA Presidents column for more information and/or the PIMA websites Leg. & Reg. page.
Compiled by members of the PIMA Legislative and Regulatory Action Group for the recent Annual Meeting.

Maximize your benets portfolio. Meet Max.

Tap into the potential of a popular voluntary benefit. VPI Pet Insurance can strengthen your portfolio and your bottom line. Highly requested voluntary benefit No cost to you or to your clients Employees receive a group discount Easy set-up No minimum enrollment
Upgrade your benets portfolio today. Contact us to start offering VPI Pet Insurance.

EFIT TARY BEN VOLUN

um No miniment. enrollm
VPI Pet Insurance The nations oldest and largest pet insurance provider petinsurance.com/PIMAnews 888-341-0779
Underwritten by Veterinary Pet Insurance Company (CA) Brea, CA, National Casualty Company (all other states), Madison, WI, an A+15 rated company. 2011 Veterinary Pet Insurance Company. Nationwide Insurance is a service mark of Nationwide Mutual Insurance Company. 11ADV1210_PIMAnews

No colsitents. to your c

Professional Insurance Marketing Association 35 E Wacker Drive, Suite 850 Chicago, IL 60601 www.pima-assn.org

Future Meetings
2011
MidYear Meeting & Tradeshow July 28-31 The Broadmoor Hotel and Resort Colorado Springs, CO

Weve Moved!
Please make a note that effective June 1st our new HQ/Mailing address is:

2012
Annual Meeting February 9-12 Hammock Beach Resort Palm Coast, FL MidYear Meeting & Tradeshow July 19-22 Eldorado Hotel Sante Fe, NM

35 E. Wacker Drive Suite 850 Chicago, IL 60601-2106

There will be no changes to our phone or fax numbers. Please forward to your respective accounting or other departments.

2013
Annual Meeting February 7-10 Hotel Del Coronado San Diego, CA