Ask PIA

Family Leave Act—who pays?

I would like a clarification of the Family and Medical Leave Act of 1993. Who pays for the employee’s medical coverage if the employee takes a leave under this federal act?

Management services for 401(k) plans

I think I saw something about a new law that lets insurance agents provide investment advice in connection with 401(k) plans. Can you give me the details? Does this have anything to do with Enron?

Captive insurers

Can PIA provide me with some information on captive insurance companies?

C.L.U.E. reports

Does a company using Comprehensive Loss Underwriting Exchange, a data bank maintained by LexisNexis, have to release a copy of the C.L.U.E. report to the agent of the client?

Bad check exposure

Is there any way to avoid liability for earned premium when my customer pays me with a bad check, and I have paid the company with an agency check?

Waive DOL overtime

Can my employees waive their right to overtime?

The mailbox rule

My client received a notice of cancellation for nonpayment and mailed the premium before the date of cancellation. If the payment isn’t received until after the date of cancellation, can the carrier cancel the policy?

DOL overtime—bonuses

I have an employee who makes $22,000 a year, but he receives a $3,000 bonus every year in December. Would this employee meet the overtime salary threshold?

Cut-throughs

What is a “cut through”? If an insurance company becomes insolvent, are the company’s reinsurers responsible to pay claims against it, whether or not a cut through is in place?

Lost policy

We have a client who is involved in a dispute with an insurance company over pollution coverage. The issue involves an old policy; our client no longer has the contract. The company long ago destroyed its records and is denying any coverage. The company is putting the burden of proof on the client to produce a policy. What are our client’s chances of collecting?

OSHA log form sources

How do we get OSHA log forms? What forms are needed?

Reformation of policy language

In a settlement agreement we saw recently, the company consented to a “reformation” of its policy. Specifically, the company stated that its renewal policy was improperly issued, and that its intent was to cover the loss in question. What does the term “reformation” mean in this context?

Subpoenas

I just received a subpoena in connection with policies placed on behalf of my client. What is it and how should I respond?

Fiduciary obligations

What are New Hampshire’s rules concerning the establishment of a premium trust account?

Statute of limitations in subrogation action

My client, ABC Swim Club, has a commercial general liability policy with Small Insurance Co. ABC had a swim meet at XYZ Swim Club who has a commercial general liability policy with Medium Insurance Co. A member of ABC injured herself while diving into XYZ’s pool. The injured member has sued XYZ, but not ABC. Medium has asked Small to share in the loss, claiming ABC did not supervise the member correctly. ABC’s officers want to know why Small has a reserve on the books if ABC has not been served suit by the member and the statute of limitations has expired? What do I tell them?

Waiver of subrogation vs. waiver of transfer of rights

If our insured is contractually required to name the other party as an additional insured on his policy, wouldn’t the request to also attach the Waiver of Transfer of Rights of Recovery Against Others to Us (CG 24 04) endorsement be redundant?

Is a “waiver of subrogation” the same as a “waiver of transfer of rights?” We have seen both terms used. Do they both mean that the insurer will not subrogate?

Disclosure of commission

As a result of Sarbanes-Oxley, we have to show our commission on either the rate schedule or declaration page. Really? Is it PIA's interpretation of Sarbanes-Oxley that the amount of commission to brokers has to be shown in the policy?

Rate filing

What is the process in New Hampshire to obtain a carrier’s rate filing?

W-9 IRS tax forms—request by policyholder

We have been asked by a client to provide a W-9 Form. What is this and why does the client need it?

Website accessibility

Does my website have to be accessible to people with disabilities?

Disruptive client—agency refusal to write coverage

What do you do with a client that you don’t want anymore? We have an insured that is very disruptive when he comes into the office to make a payment.

New Hampshire insurance advertising law

Where do I find the regulation that governs insurance policy advertising in the state of New Hampshire?

Disclosure of customer’s records—pending lawsuit

Do the Gramm-Leach-Bliley Act (GLBA) privacy rules that restrict the disclosure of nonpublic financial information prohibit me from sharing or disclosing a customer’s records in response to a lawsuit regardless of whether the customer has exercised his or her opt-out rights?

New Hampshire Limited Liability Act

What sort of fiduciary duty does a member of an LLC owe to the LLC?

Recreational drone registration

My client just bought a drone for each of her sons and herself. Does she have to register them and how does she go about doing so?

Raffle to current customers

Our agency wants to run a raffle to increase our visibility. We plan to reach out to our existing homeowners insurance customers and give away a cruise vacation package worth $1,000 if they allow us to quote their auto insurance. Is this permissible in New Jersey? What about other states in the Northeast?

Signatures on property/casualty applications

I recently got a notice from one of my companies that they will now accept property/casualty applications, even if they have not been signed by the applicant or the producer. I thought New Hampshire required a signature on all property/casualty applications. Is this allowed?

Exemptions from DOL overtime

How do I know if my employees are exempt from overtime?

DOL overtime—biweekly pay

Employees in my agency are on a biweekly pay schedule. If one of my employees who is eligible for overtime works over 40 hours in the first week of a pay period, can I have them work less in the second week in order to avoid paying overtime?

DOL overtime—outside-sales exemption

Will my producers qualify for the outside-sales exemption, even though many of them maintain office space at the agency?

Rebating—charitable exception

We are considering offering a donation to a children’s charity for every policy written or renewed through our agency. Can we legally do this without it being considered rebating?

Rebating—fair-market value

Would it be considered rebating if I gave out scratch-off lottery tickets, purchased for under $25, to prospective clients and one of the individuals won more than $25?

Rebating—gift cards

Can I give out gift cards to prospective clients for allowing my agency to quote their business?

Hemp and marijuana

What is the difference between hemp and marijuana under the 2018 Farm Bill?