LA Insurance Commissioner Makes Flood Announcement

I got this today. Quite a helpful reminder to insurance agents...

To: All Louisiana Producers
From: Commissioner Donelon
Re: Spring Flood Update

As the spring flood has moved into Louisiana, I am asking your assistance in communicating important information regarding the National Flood Insurance
Program (NFIP) to the citizens of Louisiana.

Please alert your clients with flood coverage that the NFIP may reimburse residents up to $1000 for preventative measures taken such as sandbags, supplies, and labor for property removed to safety. Insured property must be stored in a fully enclosed building and is covered for 45 consecutive days from the date it began being moved there. Residents should keep all receipts in order to receive reimbursement, and submit them to their claims adjuster. In preparation of filing a flood insurance claim, residents should have their insurance policy, inventory of their contents, all receipts, and photos of damaged items (if possible).

Please feel free to direct individuals with flood insurance questions to the NFIP at 1-866-751-3989 or other insurance questions to the Louisiana Department of Insurance (LDI) at 1-800-259-5300. Thank you for your assistance.

With best wishes and kindest personal regards, I remain

Very truly yours,
James J. Donelon
Commissioner of Insurance

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Renewal Results

A midwest bank came to me with concerns about their upcoming renewal. Their insurer was not enthusiastic, and their agent seemed resigned.

The bank's current insurance premiums were $88,000 for the bond, directors' and officers,' and cyber liability.

I poked and prodded the agent, who agreed to alternative quotes from another insurer. The initial renewal quote was $97,000 from the current insurer. I knew we could do better.

After negotiations, combined with gnashing of teeth and stomping about, the final quote was $65,900 with coverage far in excess of what the bank had before. The bond was increased from $2.5 million to $4 million. The D&O was increased from $2 million to $4 million. Coverage was streamlined, and the insurer was pushed to provide a three year policy. Many policy conditions were moved from benefiting the insurer to benefiting the bank.

A lackluster renewal with a higher premium was turned into a $23,000 premium reduction with exceptional insurance enhancements.

This is the work I do. I promise valuable results for all my clients.

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Workers' Compensation Classifications - Using The Clerical Code

Reader Question

Hi Mr. Simmonds,

I have a random question, which I'm not sure if you can answer or not. Our organization is a non profit that does pre-school, after school, and summer camp programs as well as helps out the community with a local food pantry.

We recently received our workmen comp. bill, and they now have the entire staff listed as code 8868 Daycare Provider. The broker claims the auditor used a classification that reads, "a day care operation must include clerical" and cannot be broken out seperately. Previously we had the office / clerical staff (located in a completely separate building) listed under it's own classification. From reading your material online, we (clerical / admin) should be coded as 8810. I would gather it would be the same as an organization such as the Boys & Girls Club. Am I wrong here?


My Reply:

I suggest you ask the agent for a copy of the complete definition of the classification the auditor is using - sometimes called the SCOPES definition.

That will tell you if you can use the clerical code or not. There are some codes that do not allow the standard exceptions of clerical, drivers, and sales.

Best of luck.

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