Meet the Future oF Your AgencY

PIA and the Partnership introduce our newest PIA member benefit:

reaching gen Y

This Year’s PIA August District Lobbying More Important Than Ever! page 7

PIA Reaction to White House Regulatory Reform Proposal...Capitol Hill Coming to Your Backyard This August...PIA Principles for Health Care Reform...PIA National President Ken Auerbach on Health Care Reform and Regulatory Reform...PIA National Launches New Online Store for PIA Logo Gear

June 2009 National Association of Professional Insurance Agents

From the President

2 June 2009www.pianet.com

Not too long ago, I had this frightening dream. Actually, it was a nightmare. I dreamt that Con-gress tried to create and fund a system of federal government insurance agencies in every state. It even prohibited any current insurance agent from being involved in the lines that these federal

insurance agencies would sell.Far-fetched? Yes. But when I woke up, the nightmare didn’t end because it was true.As preposterous as it sounds, this is exactly what Sen. Edward M. Kennedy (D-Mass.) is proposing as

part of his comprehensive health care “reform” bill:A “Navigators” program that would award grants to public and private entities to “conduct public education; distribute fair and impartial information regarding health plans; [and] assist with enrollment and provide in-formation.”

In short, these would be government-funded and operated insurance agencies or brokerages. You can read more about them on page three of this issue of PIA Connection.

That our nation’s system of health care — specifically, how we finance health care — needs to be improved is not a matter for debate. What is being debated is whether the federal government should assume an ongoing role in health insurance. PIA believes that Congress should build on the private health care delivery system, not seek to dismantle it.

According to the latest U.S. Census figures, of the 282 million Americans with health insurance, 201.7 million are covered by private health insurance and 80.3 million are covered by government health insurance. The private sector successfully covers more than two and a half times the number of our citizens than the government covers. That’s why we oppose the creation of government-funded insurance agencies or brokerages for health insurance that would displace private-sector professional insurance agents.

For years, state governments have prudently demanded a level of professional competence in guiding people with health insurance choices as evidenced by educational and licensing requirements. Now the feds seem prepared to throw out all of these standards by excluding the most knowledgeable professionals from this process. How is that supposed to help American consumers?

Having someone say, “I’m from the federal government, and I’m here to sell you health insurance” is not my idea of prudent health care reform.

On the subject of protecting state regulation of insurance, we got word in the past month that the Obama administra-tion’s recommendations on regulatory reform leave the state insurance regulatory system intact. The Treasury’s report does not endorse an optional federal charter. It focuses instead on creating a mechanism to address systemic risk to the financial system, concentrating on the areas PIA has been saying it needs to concentrate: banking, securities and capital markets.

Of concern is Treasury’s recommendation that a federal Office of National Insurance (ONI) be created. While we would like to believe the proposed ONI will not be used to advance federal insurance regulation, we have serious reserva-tions about creating a federal bureaucracy for insurance which could be used to begin to build a structure for full federal regulation of insurance. Rep. Paul Kanjorski (D-Pa.), who has proposed a similar Office of Insurance Information (OII), said recently, “I believe that only ostriches can now deny the need for establishing a federal insurance resource center and a basic federal insurance regulatory structure.” [our emphasis added]

In the days before the Obama Treasury’s recommendations were issued, PIA was invited by the White House to a piv-otal meeting with industry representatives. The June 4 meeting at the White House was held to get insurance industry input on regulatory reform. After the meeting, the Wall Street Journal reported that the Administration was caught off guard by the division on the issue of federal regulation of insurance. Subsequently, federal regulation was not proposed in the Treasury report.

PIA used its participation in that White House meeting well. Len Brevik, our CEO, spoke out most forcefully in support of state regulation of insurance and in opposition to federal regulation, while other groups were advocating an optional federal charter. Apparently, Administration officials concluded that there is no consensus within the industry on OFC, which happens to be true.

Having worked on Capitol Hill, I know that sometimes there is a tendency by some groups to soften their views or develop a case of organizational laryngitis at pivotal meetings such as these, in order to ensure that they get invited back. I am proud that PIA stood its ground in this setting and gratified that our forthright presentation of our views may have contributed to federal insurance regulation being excluded from the Treasury’s recommendations. Well done!

Kenneth R. Auerbach, Esq.President

June 2009 3www.pianet.com

A proposal to award grants to pub-lic and private entities to conduct public education, distribute infor-

mation and assist with health insurance en-rollment is ill-advised, according to PIA.

The proposal is part of the Affordable Health Choices Act introduced by Sen. Edward M. Kennedy (D-Mass.), chair-man of the Senate Committee on Health, Education, Labor & Pensions.

Section 3105 of the Kennedy bill says American Health Benefit Gateways would be created in every state, serving as a health insurance exchange. A “Naviga-tors” program would award grants to pub-lic and private entities to “conduct public education; distribute fair and impartial information regarding health plans; [and]

assist with enrollment and provide infor-mation that is culturally and linguistically appropriate for the population.”

The draft bill stipulates that both health insurance issuers and current inde-pendent insurance agents would be pro-hibited from participating in the Naviga-tors program.

“This proposal would give federal grants to groups with no background or exper-tise in health insurance the responsibility to advise businesses and individuals re-garding their health insurance decisions,” said PIA National President Kenneth R.

Auerbach, Esq. “In addition, it would specifically exclude licensed health insur-ance agents or brokers from participating, which makes no sense at all.”

“Consumers already turn to their local professional insurance agents to help them navigate the current maze of health insur-ance choices,” Auerbach said. “There’s no need to recreate that system. The Ken-nedy proposal would use taxpayers’ dol-lars to set up what are, in essence, federal insurance agencies for health insurance in every state, with the proviso that those with health insurance experience would be barred from being involved.”

Auerbach expressed concern that enti-ties receiving grants to act as health insur-ance “Navigators” could be community groups, labor unions, or other organiza-tions with no experience in health insur-ance and that might be biased in favor of a government-option in health insurance, with the potential to inappropriately steer people away from opting for private health insurance plans.

PIA believes that Congress should build on the private health care delivery system, not seek to dismantle it. PIA vehemently opposes the creation of government-fund-ed insurance agencies or brokerages for health care insurance that would displace professional insurance agents.

“It is our hope that this flawed section of Sen. Kennedy’s bill that creates feder-ally-backed insurance brokerages with no expertise in health insurance will be removed as the legislative process contin-ues,” said PIA Director of Federal Affairs Mike Becker.

PIA Joins Industry Health Care Coalition

PIA has joined industry colleagues in a coalition effort to shape health care reform. In addition to PIA, the coali-tion consists of the Council of Insurance Agents & Brokers (CIAB), the National Association of Insurance and Financial Advisors (NAIFA), the National Asso-ciation of Health Underwriters (NAHU) and IIABA.

Activities of the coalition consist of is-suing press releases, arranging for place-ment of op-ed articles, visits to congres-sional offices and grassroots actions. PIA has signed a letter that the coalition sent to Senate Finance Committee Chairman Max Baucus (MT) and Ranking Member Charles Grassley (IA) focusing on provi-sions of draft health care legislation of specific concern to agents and brokers. In addition, PIA is contributing to a joint coalition advertising fund.

“As the debate over health care reform moves into high gear on Capitol Hill, PIA’s focus will remain on ensuring that the in-terests of professional insurance agents are protected as proposals are considered,” said PIA National Government Affairs Committee Chairman Johnny Lee.

PIA’s “Capitol Hill in Your Backyard”

In August, this year’s annual PIA in-district lobbying month will have a two-pronged focus: advancing PIA’s position on health care legislation and continu-ing our opposition to federal regulation of insurance. Our strategy is to speak to Members of Congress during the August congressional recess, where they live: in their home districts.

Political Involvement and Advocacy Month — PIA Month — serves as an op-portunity for each PIA member to become more active in the politics that shape their lives, and to continue that involvement into the future. This year, involvement is even more important. What with health care reform proposals being seriously considered in Congress that would not only disadvantage Main Street insurance agents, but actually prohibit them from involvement in what Washington has in mind, your personal participation in PIA Month is imperative!

To find out more about getting in-volved, see the information on page seven of this issue of PIA Connection, or logon to PIA’s Grassroots Action Center at www.pianet.com/Grassroots/DLD.

PIA Opposes Kennedy Proposal to Create Health Insurance “Navigators”Plan Would Create Federally-Funded Insurance Brokerages, Ban Participation by Licensed Health Insurance Agents

The Kennedy propos-al would use taxpay-ers’ dollars to set up what are, in essence, federal insurance agencies for health insurance in every state.

PIA is pleased that the Obama administration’s Treasury re-port on regulatory reform released on June 17 leaves state regulation of insurance intact and does not propose federal

regulation.“PIA is pleased to see that the Administration’s regulatory re-

form proposals leave the state-based system of insurance regula-tion intact,” said PIA National Executive Vice President & CEO Leonard C. Brevik. “We are also pleased that the Administration did not endorse an optional federal charter and appears to rec-ognize the fact that the state system of insurance regulation has worked well to protect policyholders and carriers.”

Brevik added that the Treasury report recognizes that AIG is a financial services holding company, with insurance entities that were well regulated by the states and remain sound, and one non-insurance subsidiary that was poorly regulated by the federal Of-fice of Thrift Supervision (OTS) that created massive losses.

In our press statement, PIA expressed concern about one as-pect of Treasury’s recommendations. “We remain skeptical of the Administration’s proposed creation of an Office of National In-surance (ONI) which, as described, sounds similar to the Office of Insurance Information (OII) proposed by Rep. Paul Kanjorski (D-Pa.),” Brevik said. “While we would like to believe that the proposed Office of National Insurance (ONI) will not be used to advance federal insurance regulation, we have serious reservations about creating a federal bureaucracy for insurance.”

Overall, PIA views the Treasury report with optimism. Con-trast this Treasury report with the one issued just one year ago by then-Secretary Henry Paulson. Paulson had said it was necessary to “prepare” the insurance industry for assimilation and complete absorption into a unified federal system that regulates a single, integrated financial services industry, to include insurance offer-ings. In other words, under the Paulson plan Main Street agents would have ended up working for the banks.

PIA Supports State RegulationPIA’s unequivocal support for state regulation of insurance

may be paying dividends. In a pivotal meeting with industry rep-resentatives held on June 4 at the White House, the industry was divided on the issue of federal insurance regulation. Subsequent-ly, federal regulation was not proposed in the Treasury report. PIA participated in the White House meeting, with Len Brevik among those speaking most forcefully in support of state regula-tion of insurance and in opposition to federal regulation.

The Wall Street Journal said the Administration’s proposal “is a far cry from the federal regulation of the industry that some insurers had been seeking,” and noted:

The divide was on display at a recent meeting be-tween administration officials and representatives

from the insurance industry, where the lack of unity on the issue of regulation and the tension between competing interests appeared to take government officials off guard, according to at least two people present.

PIA’s strategy is to clearly state our position on core issues and use our “seat at the table” — at the White House or elsewhere — to advance our position. We don’t equivocate merely to please others, or to preserve our seat at the table.

The Republican minority on the U.S. House Financial Servic-es Committee outlined an alternative regulatory modernization plan. It includes no direct provisions for the insurance industry. The Republican plan is guided by three key principles: no more bailouts; getting the government out of picking winners and los-ers; and restoring market discipline to eliminate the expectation of a government rescue.

“Middle-class families are fed up with bailouts paid for by their tax dollars,” said House Republican Leader John Boehner (R-Ohio). “The plan outlined by Republicans today will lay the foundation for better market discipline and more confidence in our financial system. This common-sense plan will protect inves-tors, consumers, and taxpayers at a time when they need it most, and it puts those who make bad business decisions on notice: taxpayers cannot afford to pick up the tab any longer.”

OFC Supporters Redouble EffortsSince the Administration report was released, groups support-

ing a so-called optional federal charter have made clear that they will keep pushing for one. Foremost among the groups are the American Insurance Association (AIA), the Financial Services Roundtable (FSR), and the American Council of Life Insurers (ACLI). Of these, the Financial Services Roundtable is taking the lead.

Meanwhile, among carrier groups, the Property Casualty In-surers Association of America (PCI) and the National Association of Mutual Insurance Companies (NAMIC) line up with PIA’s position.

The threat of federal regulation of insurance hasn’t gone away simply because the Treasury Department’s report did not specifi-cally recommend it. If anything, the Treasury’s report galvanized supporters of federal regulation to redouble their efforts to at-tempt to advance their position as Congress crafts regulatory re-form legislation. That’s why supporters of state regulation must remain on guard.

While it is heartening to note that neither the Obama admin-istration’s nor the House Republicans’ regulatory reform plans proposes federal regulation of insurance, this is no time for PIA to let up on its efforts.

PIA Applauds Administration’s Decision to Leave State Regulation of Insurance Intact OFC Advocates Not Going Away; GOP Has a Plan

June 2009 5www.pianet.com

AmTrust North America An AmTrust Financial Company

Perspective

June 2009 7www.pianet.com

By Mike Becker Director of Federal Affairs PIA National

This year’s annual month-long na-tionwide grassroots lobbying cam-paign by PIA may be the most

important one ever when it comes to the success of your insurance agency!

Congress’ annual August recess is just around the corner. And it’s a good thing, because this Congressional break may be one of your last opportunities to meet with your Member of Congress before they take historic votes on insurance regu-lation and healthcare reform.

The stakes for agents could not be higher.

This fall, when your elected officials swipe their voting card and vote on whether or not to federally regulate in-surance, or to create a public healthcare option, they will be thinking of the years of persuasion they’ve been subjected to. And who’s at the top of the list? The most important and influential? You, as their constituent. You have more power than any paid lobbyist — but only if you use that power.

This August, it is critical that you take the opportunity to meet with your Mem-bers of Congress and tell them why state regulation works, why healthcare reform should be built upon the private market — and their votes can have detrimental effects on your business.

August Is PIA MonthDon’t let the term “August Recess”

fool you, as it’s a bit of a misnomer. Each August Members of Congress spend the month working in their districts. They hold town hall forums, attend commu-nity events, meet with their constituents,

and campaign for re-election.That’s why we designate August as Po-

litical Involvement and Advocacy Month, highlighted by District Lobbying Day. We like to call PIA’s annual nationwide grassroots campaign, “Capitol Hill in Your Backyard.”

This August, we encourage you to be-come a more locally and politically en-gaged citizen.

We ask each PIA member to make a special effort to engage their elected offi-cials, to promote PIA’s legislative agenda and solidify our relationships with law-makers who serve in Washington, DC.

Becoming more engaged doesn’t have to be time consuming. The possibilities are endless — just take a cue from some of your fellow PIA members and fly the US flag outside your home and agency, contribute to PIAPAC, or attend a local town hall meeting. The important thing is to get involved.

District Lobbying Day Is August 6

The late Speaker of the House Thom-as P. “Tip” O’Neill once uttered a basic truth about politics: All politics are local. So correct was his assertion that it has be-come one of the most famous truisms in politics, accepted as gospel by those of all political persuasions.

On August 5, we ask that you keep politics local by meeting with your Mem-ber of Congress. The goal is to get as many PIA members as possible to sched-ule appointments on or around August 5 to have a conversation with their elected officials or staff members in their offices. This is your chance to talk about issues that concern you as an independent agent and small businessperson. It’s important that PIA’s efforts on Capitol Hill must al-

ways be augmented by “back home” visits if we are to have maximum impact with federal lawmakers. It is critical that legis-lators hear about the consequences of pro-posed legislation from their constituents, on their local Main Streets.

Regardless of your previous lobbying experience, PIA will make sure that you are prepared for your meetings with your elected officials and staff. PIA will provide you with support through the PIA Na-tional website, www.PIANET.com. There you’ll learn how to go about setting up an appointment and what to say once you’re there. We’ll provide you with talking points and tips for making the most of your visit, plus thank you notes and a press release so you can let your community know that you are not just a Main Street agent, but an involved citizen as well.

For those who are unable to schedule an in-person visit, PIA National’s Online Grassroots Action Center will have a mes-sage you can easily personalize and send to your elected officials showing your support for issues of paramount concern to profes-sional independent insurance agents.

Get Started Now!Take the first step and log on to PIA

National’s website at www.PIANET.com or go directly to the District Lob-bying Day/PIA Month web page at www.pianet.com/Grassroots/DLD. There you’ll find information about the issues to cover and how to prepare for your meet-ing. Be sure to check the website often as it will be regularly updated with the most up-to-date information.

Have a question? Contact Mike Becker, PIA National’s director of federal affairs, at mikebe@pianet.org or (703) 518-1365.

This Year’s PIA August District Lobbying Is the Most Important Ever!Annual “Capitol Hill in Your Backyard” Advocacy Events Planned

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MEET THE FUTURE OF YOUR AGENCY

PIA and The Partnership introduce our newest PIA member benefit:

Reaching Gen YJune 2009 9

www.pianet.com

10 June 2009www.pianet.com

A well known and often quoted philosopher, Yogi Berra, offers us all an important observation we

would do well to keep in mind. He said, “The future ain’t what it used to be.”

Nowhere is this more apparent than in the current “Gen Y” age group. For those of us who are not a part of Gen Y, we know and experience that age group in differ-ent ways. They can be our children, the friends of our children, students, employ-ees and customers of our agency. From the agent’s perspective however, they can represent something very important: The future of your agency.

So how does an agent better under-stand the Gen Y age group, since, “the future ain’t what it used to be”? As earlier generations matured while in their 20s and 30s the world was a much different place than today’s world is for Gen Y. They are the best educated generation in history, they have high expectations, they are much more affluent and mobile and for most, technology is an important part of everyday life — especially the Internet.

Reaching, understanding and ulti-mately achieving success in developing Gen Y individuals as agency clients and customers is the goal of our newest PIA Partnership tool, Reaching Gen Y. The PIA National, working with insurance companies who participate in supporting our Partnership projects, has developed this new online tool — now available to PIA members.

Find Gen Y, and “Reaching Gen Y,” Online

Since Gen Y and the Internet are close-ly linked, the first part of this new tool can be accessed on the web at www.piageny.com. This is our “microsite.” It is designed not for Gen Y customers, but rather, its purpose is to convey to agents the main points from our complete tool without going into all of the details. We created this “microsite” as a “Gen Y friendly” ex-ample of how information can be con-veyed in an appealing and interesting

way using the Internet. You could think of this “microsite” as the equivalent of a tri-fold brochure an agency might mail to its customers. In this case, PIA National is presenting this “microsite” to you, our members

Our main Reaching Gen Y tool is lo-cated in a password protected section of the PIA National website at www.pianet.com/ThePartnership/ReachingGenY. To access the tool, you’ll need your PIA National username and password. If you need help accessing the site, online assis-tance is available.

The ResearchThe important thing to understand

about our new Reaching Gen Y online

Is Your Agency Reaching Gen Y?

R

“For me a website is like a storefront. One has a nice sign. It’s a nice looking building and it’s inviting. Whereas another one is more like a warehouse where someone threw up a cardboard sign written with a marking pen.”

--Gen Y focus group member

PIA Partnership Member Companies:

The Central Insurance CompaniesErie Insurance

HanoverHarleysville

The HartfordMetLife Auto & Home

Motorists Insurance GroupLiberty Mutual Agency Markets

ProgressiveState AutoTravelers

Zurich

tool is that it has been developed based on extensive focus group research we con-ducted with everyday Gen Y individuals from across the country. To help assure diversity, we conducted our research at professional focus group facilities in Richmond, Virginia, Indianapolis, Indi-ana, Little Rock, Arkansas and Portland, Oregon. While the geographic locations were diverse, what these individuals told us was remarkably consistent. And telling you what they’ve said is really what our new Reaching Gen Y tool is all about.

While some individuals in any age group will view their insurance as strictly a “commodity purchase,” what our research tells us is that Gen Y has a greater appre-ciation than most for what a professional independent agent has to offer, once that value proposition has been communicat-ed to them. As is frequently the case, it’s communication that’s the real challenge. To quote another observer of human behavior, “The problem with communi-cation is the illusion that it has been ac-complished. To effectively communicate, we must realize that we are all different in the way we perceive the world and use this understanding as a guide to our com-munication with others.”

What Will You Find in Reaching Gen Y?

Our new Reaching Gen Y online tool is organized into several major sections. First, our introduction explains The PIA Partnership and why our participating company partners believe this is an im-portant project for agents and companies to achieve shared success with Gen Y. We then describe our focus group research and the results we’ve received. Using these results, the tool then covers the impor-tance of the Gen Y age group, what they are looking for when it comes to insur-ance, how they will find what they’re look-ing for, how your agency will be found by them and finally, steps your agency can take to close the loop and make the con-nection with Gen Y individuals.

Communication Is the KeySo, how does Gen Y communicate? A

great deal of their communication uses technology and the Internet. While they may use e-mail, text messaging and social networking for their personal relation-ships, when it comes to insurance, our Gen Y research shows that they have a strong preference for person-to-person contact. In fact, when offered choices re-lating to how they would like to proceed when receiving a quote or subsequently making changes and receiving advice once they are policyholders, our focus group results are dramatic.

Once you have submitted your form online, how would you prefer to con-tinue?1. Receive an e-mail quote with a price

from only one insurance company. (3%)

2. Receive an e-mail quote from one insurance company along with an opportunity to speak with some-one on the phone and ask questions about coverages and cost. (20%)

3. Receive an e-mail quote with prices from several insurance companies. (7%)

4. Receive an e-mail quote with prices from several insurance companies along with an opportunity to speak with someone on the phone and ask questions about coverages and cost. (70%)

Your Website MattersSo given these Gen Y preferences, why

don’t agents write more business with them? What’s the problem? Again, it comes back to communication. Since Gen Y is “the Internet Generation” the missing link for most agents is that they don’t place enough importance on their own agency’s website — what it says about them and why a new customer would want to con-sider doing business with an agency in the first place. The Internet opens up a world

of choices for Gen Y individuals who use the web to explore that world. Most signif-icantly for agents, our research shows that Gen Y individuals view an agency’s website as a virtual extension of the agency itself. If the website is good, that speaks well of the agency. If the website is perceived badly, Gen Y individuals tend to steer clear of the agency. In fact, the following is a tran-scribed comment from a Gen Y individual during one of our focus groups:

“For me a website is like a store-front. One has a nice sign. It’s a nice looking building and it’s inviting. Whereas another one is more like a warehouse where someone threw up a cardboard sign written with a marking pen.”In response, agents need to ask them-

selves if they take their own agency web-sites seriously — because Gen Y does and will act accordingly in deciding whether or not to do business with them. An agency website needs to be more than a “glorified business card.” It needs to communicate what you have to offer, what you do for your customers and how you meet their needs. In a world of choices, they need to know why to continue and not just “hit the back button.”

Take the Next Step to Reaching Gen Y

When you access the PIA Partnership Reaching Gen Y online tool, you can find out more about how Gen Y (and really, customers in any age group) perceive web-sites, referrals, recommendations, methods of communication and other issues. And because of the importance of agency web-sites, PIA National is working with a na-tional service provider to offer agents low-cost customized agency websites based on the latest insurance consumer research.

For more information about how you, as an agent, can be effectively Reaching Gen Y visit The Partnership’s section of PIA National’s website at www.pianet.com or go directly to www.pianet.com/ThePartnership/ReachingGenY.

June 2009 11www.pianet.com

Is Your Agency Reaching Gen Y?

Reaching Gen Y

REACHING

How many Gen Y clients do you have as policyholders?

Gen Y individuals ARE the next generation. You can’t ignore them.

How does the Gen Y age group affect the value of your agency and your ability to perpetuate?

No matter how you look at it, not reaching Gen Y means lost opportunity.

Visit www.piageny.com to fi nd out more about our Reaching Gen Y online tool. Here’s what you’ll learn about:

Who is Gen Y?Is your agency reaching Gen Y?Insurance: What is Gen Y looking for?Insurance: How will Gen Y fi nd what they’re looking for?How will your agency be found?Closing the loop and making the connection.

UNDERSTANDING

The best way to understand what they are looking for is to ask them. Find out what they have to say.

How does Gen Y look for value in insurance? Their buying style may surprise you.

Put it all together and Gen Y becomes a huge opportunity for your agency.

Find out what steps you can take to reach this important age group.

This new online tool from the PIA can help! Many agencies are already successful in reaching Gen Y.

They seek out quality content and know it when they see it. Learn how this can work to your advantage.

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Build on private health care system, don’t dismantle it. PIA believes that the private health insurance system should form the basis of any health care reform. Congress should build on the private health care delivery system, not seek to dismantle it.

Improve existing government programs. Today, there are many federal and state programs for health and medical ben-efits for those who do not have coverage otherwise. These programs must do a far better job in working in a more harmoni-ous, coordinated and cost-effective fash-ion. Before adding new elements to the healthcare system, PIA believes problems with existing government programs need to be fixed.

Do not create a government-owned insurance agency or brokerage. The concept of a Health Care Exchange is being described by some advocates as an independent entity that would organize affordable health insurance options and offer them to businesses and individuals. This entity sounds like a government-op-erated insurance agency.

PIA vehemently opposes the creation of an exchange that would function as a government-owned insurance agency or brokerage. In addition, PIA would op-

pose granting to any corporation or en-tity, public or private, a federal contract to operate or administer such an exchange.

Preserve the role of independent agents and brokers. PIA believes that indepen-dent insurance agents and brokers play a key role in the sale and delivery of health insurance. The private sector’s ability to compete on an equal basis must be pre-served in any health care reform legisla-tion.

PIA opposes the proposal for a “Naviga-tors” program, which would conduct pub-lic education, distribute information and assist with health insurance enrollment. This proposal would give federal grants to groups with no background or expertise in health insurance, charging them with the responsibility to advise businesses and individuals regarding their health insur-ance decisions, while specifically exclud-ing licensed health insurance agents or brokers from participating.

Build upon successful state-based in-novations. The states are the laboratories of democracy and innovation. In ap-proaching health care reform, policymak-ers should look to the experiences of the many states that have experimented with possible solutions — to see what worked, and just as importantly, to avoid what has

not worked.

Do not tax employer-provided health care benefits. The crisis in health care is a crisis of affordability, especially for small businesses and individuals. Taxing employer-provided health care benefits would only exacerbate the problem by driving up costs and making coverage less affordable. It is not advisable to attempt to extend coverage to those who are unin-sured by making coverage less affordable for everybody.

Encourage cost controls, wellness. A re-formed health care system should encour-age cost control through greater efficien-cies such as electronic medical records. Cost savings should not be achieved by denying one type of reimbursement to fi-nance others, or by attempting to ration care. Employers should be provided with legal protections as well as tax and premi-um incentives for wellness programs.

Congress needs to forge the broadest possible consensus before enacting any reform legislation. Use of the budget rec-onciliation process to pass health care re-form carries the risk of having insufficient consensus to make reforms work. PIA believes that achieving the broadest pos-sible consensus for any reform proposal is critical to its chances for success.

PIA Principles for Health Care Reform

June 2009 15www.pianet.com

1. Build on and support the private health care system, don’t dismantle it

2. Improve existing government programs

3. Do not create a government-owned insurance agency or brokerage

4. Preserve the role of independent agents and brokers

5. Build upon successful state-based innovations

6. Do not tax employer-provided health care benefits

7. Encourage cost controls and wellness programs

8. Congress needs to forge the broadest possible consensus before enacting any reform legislation

PIA Connection Marketplace rates: $80/issue for 10 issues; $100/issue for 5 issues. To learn more and get a contract, or to inquire about display advertising, please contact Alexi Papandon at alexipa@pianet.org or 703-518-1353.

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PIA of Nebraska/Iowa, 920 South 107th Avenue, Suite 305, Omaha, NE 68114PHONE: (402) 392-1611 • FAX: (402) 392-2228e-mail: cathy@pianebraska.com • Web Site: www.pianeia.comNEw HAMPSHIrEPIA of New Hampshire, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.orgNEw JErSEYPIA New Jersey, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.orgNEw YorkPIA New York, P.O. Box 997, Glenmont NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.orgNorTH CAroLINAPIANC, 16976 Justice Branch Road, Littleton, NC 27850PHONE: (704) 892-4645 • (877) 337-4262 • FAX: (704) 892-4645e-mail: jim.kennedy@piaofnc.com • Web Site: www.piaofnc.comNorTH DAkoTAPIA of North Dakota1211 Memorial Hwy Holiday Park Office #6, Bismarck, ND 58504-5213PHONE: (701) 223-5025 • (800) 733-1050 ND&MN onlyFAX: (701) 223-9456 • e-mail: info@piand.com • Web Site: www.piand.comoHIoPIA of Ohio, Inc., 600 Cross Pointe Road, Gahanna, OH 43230PHONE: (614) 552-8000 • (800) 555-1742 • FAX: (614) 552-0115e-mail: ohpia@ohiopia.com • Web Site: www.ohiopia.comokLAHoMAPIA of Oklahoma, P.O. Box 12921, Oklahoma City, OK 73157PHONE: (405) 942-1119 • FAX: (405) 943-4380e-mail: bill@piaok.com • Web Site: www.piaok.comorEGoN/IDAHoPIA of Oregon/Idaho, 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (503) 287-7570 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.comPENNSYLvANIAInsurance Agents & Brokers of Pennsylvania P.O. Box 2023, Mechanicsburg, PA 17055-0763PHONE: (717) 795-9100 • FAX: (717) 795-8347e-mail: iab@iabgroup.com • Web Site: www.iabgroup.comPUErTo rICo & CArIBBEANPIA of Puerto Rico and the Caribbean IncPO Box 192389, San Juan, PR 00919-2389PHONE: (787) 792-7849 • FAX: (787) 792-4745e-mail: marcos@piaofpr.com • Web Site: www.piaofpr.comrHoDE ISLANDPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.comSoUTH CAroLINAPIA of South Carolina, PO Box 21367, Columbia, SC 29221-1367PHONE: (803) 772-0557 • (888) 742-6372 • FAX: (803) 772-0846e-mail: PIASC@piasc.net • Web Site: www.piasc.netSoUTH DAkoTAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.comTENNESSEEPIA of Tennessee Inc, 504 Autumn Springs Court Suite A-2, Franklin, TN 37067PHONE: (615) 771-1177 • FAX: (615) 771-3456e-mail: piatn@piatn.com • Web Site: www.piatn.comTEXASTexas Insurance Professionals, P. O. Box 90908, Austin, TX 78709-0908PHONE: (512) 301-0226 • FAX: (512) 301-0265e-mail: pia@piatx.org • Web Site: www.piatx.orgUTAHUtah Association of Independent Insurance Agents4885 S. 900 E., Suite 302, Salt Lake City, UT 84117PHONE: (801) 269-1200 • FAX: (801) 269-1265e-mail: stevebaugh@uaiia.org • Web Site: www.uaiia.orgvErMoNTVermont Insurance Agents Association, P.O. Box 1387, Montpelier, VT 05601PHONE: (802) 229-5884 • FAX: (802) 223-0868e-mail: rcoyle@viaa.org • Web Site: www.viaa.orgvIrGINIA/DCPIA Assn of Virginia & DC, 8751 Park Central Dr., Ste 140, Richmond, VA 23227PHONE: (804) 264-2582 • FAX: (804) 266-1075e-mail: dennis@piavadc.com • Web Site: www.piavadc.comwASHINGToN/ALASkAPIA of WA/AK, 3205 Northeast 78th Street, #104, Vancouver, WA 98665PHONE: (360) 571-7100 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.comwEST vIrGINIAPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.comwISCoNSINPIA of Wisconsin, Inc., 6401 Odana Road, Madison, WI 53719-1126PHONE: (608) 274-8188 • (800) 261-7429 • FAX: (608) 274-8195e-mail: rvonhaden@piaw.org • Web Site: www.piaw.orgwYoMINGAssoc. of Wyoming Ins. Agents, PO Box 799, Sundance, WY 82729-0799PHONE: (307) 283-2052 • FAX: (775) 796-3122e-mail: awia@vcn.com • Web Site: www.awia.com

affilia

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PIA of Alabama, 1276 Perry Hill Rd, Montgomery, AL 36109PHONE: (334) 244-7422 • FAX: (334) 244-9921e-mail: perry@piaal.com • Web Site: www.piaal.comArkANSASPIA of Arkansas Inc., 10 Corporate Hill Dr., Suite 130, Little Rock, AR 72205PHONE: (501) 225-1645 • FAX: (501) 225-2550e-mail: evp@piaar.com • Web Site: www.piaar.comCA/Nv/AZ/NMPIA Group, 3205 Northeast 78th St #104, Vancouver, WA 98665PHONE: (888) 246-4466 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.comCoLorADoPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.comCoNNECTICUTPIA of Connecticut, P.O. Box 997, Glenmont, NY 12077-0997PHONE: (800) 424-4244 • FAX: (518) 434-2342e-mail: pia@pia.org • Web Site: www.piaonline.orgDELAwArEInsurance Agents & Brokers of DelawareP.O. Box 2023, Mechanicsburg, PA 17055-0763PHONE: (717) 795-9100 • FAX: (717) 795-8347e-mail: iab@iabgroup.com • Web Site: www.iabgroup.comFLorIDAPIA of Florida, Inc., 1390 Timberlane Road, Tallahassee, FL 32312-1766PHONE: (850) 893-8245 • (800) 277-1171 FL only • FAX: (850) 893-8316e-mail: oconnell@piafl.org • Web Site: www.piafl.orgGEorGIAThe PIA of Georgia, Inc., 3805 Crestwood Pkwy NW #140, Duluth, GA 30096PHONE: (770) 921-7585 • FAX: (770) 921-7590e-mail: jerry@piaga.com • Web Site: www.piaga.comHAwAIIPIA of Hawaii, 146 Hekili St # 201A, Kailua, HI 96734-2835PHONE: (808) 261-9460 • FAX: (808) 262-5355e-mail: piahi@hawaiiantel.net • Web Site: www.piahawaii.comILLINoISPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.comINDIANAPIA of Indiana, 600 Cross Pointe Road, Gahanna, OH 43230PHONE: (614) 552-8000 • (800) 555-9742 • FAX: (614) 552-0115e-mail: inpia@indianapia.com • Web Site: www.indianapia.comkANSASKansas Association of PIA103 SE 10th Ave., Topeka, KS 66612PHONE: (785) 232-4143 • FAX: (785) 232-0272e-mail: pia@pia.kscoxmail.com • Web Site: www.KansasPIA.orgkENTUCkYPIA of Kentucky, P.O. Box 4205, Frankfort, KY 40604-4205PHONE: (502) 875-3888 • FAX: (502) 227-0839e-mail: clemay@piaky.org • Web Site: www.piaky.orgLoUISIANAPIA of Louisiana Inc., 8064 Summa Avenue, Suite C, Baton Rouge, LA 70809PHONE: (225) 766-7770 • (800) 349-3434 LA only • FAX: (225) 766-1601e-mail: jody@piaoflouisiana.com • Web Site: www.piaoflouisiana.comMAINEMaine Insurance Agents Association, 432 Western Avenue, Augusta, ME 04330PHONE: (207) 623-1875 • FAX: (207) 626-0275e-mail: bigime@aol.com • Web Site: www.maineagents.comMArYLANDInsurance Agents & Brokers of Maryland P.O. Box 2023, Mechanicsburg, PA 17055-0763PHONE: (717) 795-9100 • FAX: (717) 795-8347e-mail: iab@iabgroup.com • Web Site: www.iabgroup.comMASSACHUSETTSPHONE: (703) 836-9340 • FAX: (703) 836-1279e-mail: membership@pianet.org • Web Site: www.pianet.comMICHIGANThe Association of PIA, 4550 Cascade Road SE, Suite 205-B, Grand Rapids, MI 49546-3697PHONE: (616) 454-4461 • FAX: (616) 454-4491e-mail: inquiry@mipia.com • Web Site: www.mipia.comMINNESoTAPIA of Minnesota, 3600 Holly Lane N. #90, Plymouth, MN 55447PHONE: (763) 694-7070 • FAX: (800) 546-3428e-mail: gsather@piamn.com • Web Site: www.piamn.comMISSISSIPPIPIA Association of Mississippi, 4 River Bend Place, #115, Jackson, MS 39232PHONE: (601) 936-6474 • FAX: (601) 936-6477 • (800) 898-0136 MS onlye-mail: PIAofMS@aol.com • Web Site: www.piams.comMISSoUrIMissouri Association of Insurance AgentsP.O. Box 1785, Jefferson City, MO 65102-1785PHONE: 573-893-4301 • FAX: 573-893-3708e-mail: lcase@moagent.org • Web Site: www.missouriagent.orgMoNTANAPIA of Montana, 3205 NE 78th St Ste 104, Vancouver, WA 98665-0697PHONE: (888) 246-4466 • FAX: (360) 571-7600e-mail: piawest@piawest.com • Web Site: www.piawest.com

PresidentKenneth R. Auerbach, Esq. (NJ)kauerbach@e-kinsurance.com

President-ElectJon D. Spalding (MI)jdspalding@spaldinginsurance.com

vice President/TreasurerBrian T. Marino, CIC (FL)brian@familyinsuranceservices.com

Secretary/Assistant TreasurerFred Thomas, CIC (MT)fthomas@wsi-insurance.com

Immediate Past PresidentRobert P. Page (LA)cpageinsurance@aol.com

Executive vice PresidentLen Brevik (PIA National)lenbr@pianet.org

PIA National Image Committee ChairmanWayne Wehr (HI)waynew@servco.com

Publisher/Editor-in-ChiefTed Besesparistedbe@pianet.org

Managing Editor/AdvertisingAlexi Papandonalexipa@pianet.org

Government/regulatory Affairs Executive EditorPatricia A. Borowski, CPIW, CAEpatbo@pianet.org

Contributing EditorsMike BeckerDavid Eppstein

Production EditorLaurel Prucha Moranlaurel@blueroomstudio.com

PIA Connection is published ten times yearly by the National Association of Professional Insurance Agents.400 North Washington Street,Alexandria, Virginia 22314©2009 All rights reserved.

The information in this publication is gen-eral in nature and is not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situ-ation. Users are encouraged to consult with competent legal, financial, insur-ance, investment advisory and or other professional advisors concerning specific matters before making any decisions and we disclaim any responsibility for any decisions or actions by readers.

All PIA members receive PIA Connec-tion at the member subscription rate of $12.00 per year.Non-member subscriptions available at $24.00 per year ppd. For additional information on any of the subjects addressed in this publica-tion, please access the PIA National website at www.pianet.com

June 2009 19www.pianet.com

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PIA National has recently rede-signed its online store making it easier than ever to get clothes

and merchandise with the PIA “Local Agents Serving Main Street America” logo. The new store also features a

number of new items including:• theNikeDri-FITSportsShirt(moisturewickingstylesformen

and women available in a wide variety of sizes and colors)• theGlacierSoftShellJacket(fleecelining,waterproof,breath-

able styles for men and women available in a wide variety of sizes and colors)

• Ultra-SoftMicrofiberWindShirt(softnylonlining,availablein a variety of sizes and colors)

• Challenger Jacket (nylon shell, poly-filledbodywithheavy-weight fleece lining, available in a wide variety of sizes and colors)

Many other items including mugs, briefcases, license plate frames, oxfords, baseball hats and more are also available. Some items can be co-branded with your agency logo.

To visit PIA’s redesigned online store, please visit www.pianet.com/PIAOnlineStore.

PIA National Launches New Online Store for PIA Logo Gear

visit the PIA Main Street Store at www.PIANET.com or use the information below to act now.

visit www.PIANET.com for additional Member Benefits including the PIA Branding Program, reaching Gen Y, Guide to Successful Planning, Perpetuation Central, Agency Agreement review Service, PIA logos and more.

Insurance Productsn Errors and omissions InsuranceSolid E&O protection built around your unique needs. (800) 742-6900 Ext. 348

n Penn National Insurance Agent’s Umbrella ProgramComprehensive and affordable excess insurance protection includes E&O and Business Liability coverage with available endorsements for EPL and Personal Coverage. Call your local PIA affiliate or (800) 742-6900 Ext. 348

n The Insurance on-line Network (IoN)Easy-to-use, on-line, multi-carrier, term life quoting system. www.PIANET.com/ION

n Agency revenue ToolsEmployee worksite marketing using your appointed markets at regular commission rates. (703) 518-1363

n Catastrophe Major MedicalThe $2,000,000 Catastrophe Major Medi-cal Insurance Plan picks up where your basic coverage leaves off! (800) 503-9230; https://www.personal-plans.com/pia

n warranty SolutionsMarket a proven vehicle service contract program to auto dealerships. (800) 782-9753.

n Hartford Flood InsuranceEasy enrollment process, competitive commissions, advanced Internet services, plus a variety of programs and surplus lines. Call (860) 769-7313.

n Unimerica ProductsBasic, Voluntary and Dependent Term Life; Long Term Disability; Short Term Disabil-ity; ADD; Hospital Indemnity (800) 336-4759; www.piatrust.com

Financial Servicesn Bank of America Financial ProductsPersonal and business credit cards. www.pianet.com/BankofAmerica

“PIA Plus” Products/Discountsn PIA Logo wear & GearShirts, jackets, mugs and more with the PIA Main Street Logo featuring PIA’s new tagline, Local Agents Serving Main Street AmericaSM. www.pianet.com/PIAOnlineStore

n on-Line CE and Skills CoursesAvailable to agents in participating states at www.PIANET.com/Education For other educational programming, including designation programs, please contact your local PIA affiliate.

n Alamo Car rentalGet unlimited mileage and up to 20% off already low retail rates. 1-800-GO-ALAMO (1-800-462-5266) (I.D. # 93140)

n Central Licensing BureauSave time and money by using CLB for all your agency licensing needs. (501) 664-8044

n Consumer BrochuresAnswer clients’ questions with profession-al brochures from PIA. (703) 518-1381.

n Free SubscriptionPIA members, receive a free subscription to Rough Notes magazine at www.pianet.com/FreeSubscriptions

n Mines Press Calendar ProductsPersonalized calendars at member only prices. (800) 447-6788

n omnia Employee ProfilingSkills and personality testing. Contact Sean Neumeyer at (800) 525-7117 Ext. 1242.

n online Data Backup & recoveryBackup critical files to a secure, remote location through Courtesy Computers, the insurance agency specialists. www.pianet.com/courtesy

n rough Notes Agency onLineHelps identify risk exposures and provides detailed coverage analysis. Avail. to PIA members for $400 annually (reg. $1,699). Call 800-428-4384. Use your PIA member ID# above name on mailing label.

n Sircon’s Producer workbenchMeet your licensing and renewal needs quickly and easily on the web. PIA member-only 15% discount. Visit www.PIANET.com/Sircon

n United Parcel ServiceReceive reduced rates on many popular overnight and 2nd day air shipping op-tions. Call (800) 325-7000 or your local UPS representative and mention “Bid Code #CP990007896.”

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans

INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND

As a PIA Member* serving

Main Street America, you and

your employees have access

to a variety of high-quality,

competitively priced

insurance plans.

Plans available include:

Long Term Disability Short Term Disability Business Overhead Expense Accidental Death & Dismemberment

Basic Term Life** Voluntary Term Life Dependent Term Life Hospital Indemnity

PIA SERVICES GROUPINSURANCE FUND

For additional information, contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759.

Information also available on-line at www.piatrust.com.*PIA National membership, when required, must be current at all times.

**Only available if 100% employer paid and if the employer and 100% of the employees enroll. No medical underwriting necessary up to guaranteed issue limits.

Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable.Underwritten by Unimerica Insurance Company, Portland, ME. Administered by Lockton Risk Services.

PRSRT STANDARDU.S POSTAGE

PAIDPERMIT #593

MERRIFIELD, VA

400 N. Washington StreetAlexandria, VA 22314