Agents' Advocate Bulletin
Monday, November 13, 2017
PIA Agents’ Advocate bulletin
November 13, 2017
Raid SAIF To Pay Down PERS?
A Governor’s task force has considered options to address the Oregon Public Employee Retirement System’s (PERS) $25 billion unfunded actuarial liability (UAL). The task force produced a host of recommendations, ranging from liquidating real property owned by the state to privatizing state-run operations like OLCC.
Among the various proposals are concepts related to SAIF Corp. They include:
- Sweep a portion of SAIF’s suplus, up to $670 million;
- Change SAIF’s mission so that it produces revenue that could be dedidcated to PERS;
- Convert SAIF to a mutual company; or
- Sell SAIF to private insurers or investors.
You can read the full report at http://www.oregon.gov/gov/policy/Documents/6096_FINAL_Pers%20Task%20Force%20Report_2017-WEB.pdf. Comments related to SAIF are found on page 8 and appendix 3, page 23.
PIAO/I has joined a coalition to protect SAIF from any raids. Members of the coalition includes groups like Oregon Business & Industries, NFIB, contractors, homebuilders, loggers, farmers, truckers, some labor groups, etc. Please note that I am the only one from an agents’ association who is part of the coalition.
The coalition has drafted a letter to legislators which opposes these damaging SAIF proposals. Click here to read it. PIAO/I has given them our logo for inclusion. I will be meeting with state lawmakers about this issue. Our membership should be prepared to be active during the session.
In addition to the other arguments against using SAIF’s money to fund PERS UAL, agents are also concerned that in seeking to economize, agent commissions could be lowered.
More Education for Flood Insurance
I met with Rep. Jeff Reardon and the Insurance Division recently on his proposal to increase continuing education for insurance producers who sell NFIP flood insurance. PIAO/I will likely oppose this bill during the 2018 legislative session.
PAC Needs Help
We have invested time and money in the Insurance Education Program for new legislative candidates over the years. We use our PAC funds to donate to candidates who participate in that program. But we have received NO CONTRIBUTIONS to date this year to the PAC. If no one contributes, I will be forced to re-evaluate whether or not PIAO/I thinks this program is worthwhile. I genuinely believe it is, but you need to tell me so by writing a check to the Oregon PIA political action committee. See below.
Death of Bad Faith Bill Illustrates Value of PAC
HB 2858 was this session’s bad faith bill, which would have severly affected the insurance industry. The key “no” vote on the House committee was a new legislator, Rep. Janelle Bynum (Democrat/HD 51).
Rep. Bynum participated in PIAO/I’s Insurance Education Program for new candidates in the summer of 2016 at Stamm Stuart Bybee Insurance Agency in Gresham. We spoke to her about the issue of bad faith during that program. When HB 2858 arose in 2017, Mike Bybee testified against it.
Our Oregon PAC supports the Insurance Education Program. HB 2858 is a fine example of how valuable it can be. Our PAC relies on your contributions to make the program successful. Please donate today by sending a check to PIA Oregon PAC, Western Alliance, 3205 NE 78th St. Suite 104, Vancouver WA 98665.
PIAO/I Oregon Lobbyist
P.O. Box 1517
Wilsonville, OR 97070