1. Is Your Carrier Requiring You to Carry Cyber Liability???
2. Local Boone Resident Awarded the Order of the Long Leaf Pine
3. Did You Know?
4. Tax Reform & Independent Agents
5. Early Due Dates for W-2, W-3 and Form 1099-MISC

Employer sponsored Flexible Spending Accounts (FSAs) allow employees to set aside a portion of their earnings on a pre-tax basis to pay for certain qualified medical, dependent care, and other expenses. The IRS announced an increase to the maximum contribution limits for FSAs in 2018.  The individual medical participant contribution limit will be increased to $2,650 per plan year, which is a $50 increase over 2017.  For married couples, both spouses can elect the maximum contribution in their respective FSAs. The FSA limit is subject to an employer’s plan document. Therefore, employers who offer FSAs, can choose to offer the maximum medical contribution limit or a lower amount.   

Monty Dise, President
Asset Protection Group, Inc.
mdise@apgroupinc.com
804-423-7700

Danger season for W-2 phishing approaches

Cyber criminals are about to ramp up their efforts to steal employee W-2s. Just like other businesses, cyber criminals seek efficiency. If they can get just one member of your HR or finance staff to send W-2 forms, they can profit directly by filing fraudulent tax returns and stealing refunds.  As tax season begins, criminals race to file fraudulent returns before employees can file their legitimate ones.

The U.S. Senate passed its tax reform bill this weekend so the next step is for the Senate and House to work out the differences between the bills.

One of the major differences is how each bill addresses the taxation of pass-through businesses. The House and Senate proposals impose 25 percent and 20 percent tax rates on insurance agencies organized as C Corps, respectively. However, both bills would continue to tax pass-through services businesses at individual rates, with differing rates for some small businesses, using complicated formulas. Members can log in to the Big I government affairs taxes page for more details.

The Senate bill contains a more favorable rate for many Big I members. Throughout the process, the Big I has led a coalition of insurance industry organizations in sending letters to the House and Senate to express concerns about the bill's treatment of some small businesses.

Employers face a January 31, 2018, due date for filing 2017 Forms W-2 and W-3 with the Social Security Administration. This date applies to both electronic and paper filers. Form 1099-MISC is due to the IRS and individuals by January 31 when reporting non-employee compensation payments in box 7.

Penalties for failure to file correct information returns or furnish correct payee statements have increased and are now subject to inflationary adjustments. These increased penalties are effective for information returns required to be filed after December 31, 2015. 

Eligible educational institutions are required to report the total amount of payments received for qualified tuition and related expenses from all sources during the calendar year on Form 1098-T, Tuition Statement.

Announcement 2016-42 provides relief from penalties under Section 6721 and 6722 to 2017 Forms 1098-T. The IRS will not impose penalties on eligible education institutions that report the aggregate amount billed (instead of amount received) for qualified tuition and related expenses on 2017 Form 1098-T.

IIAV Chairman Doug Megill has appointed the 2017-18 Nominations Committee. The following members have agreed to serve:

Will Talley IV – Chairman – William H Talley & Son
Monty Dise – Asset Protection Group
Richard Farmar – Towne Insurance/BH Baird
Chuck Gibson – Bankers Insurance Fairfax
Pettus LeCompte – Straus Itzkowitz & LeCompte
Hunter Odom – Suffolk Insurance
John Watson – Hanckel Citizens Insurance
Dennis Winfree – Horizon Insurance
Bob Yergey – Towne Insurance
Doug Megill – Ex-officio – McLean Insurance Agency

The committee will be looking to fill a number of board positions along with one company representative position. Members interested in serving on the IIAV Board of Directors should send a letter of interest to Bob Bradshaw, IIAV, 8600 Mayland Drive, Richmond, VA 23294 or an email to Rbradshaw@iiav.com

BOONE, NC – Wayne Sumner, President of Jackson Sumner and Associates from Boone, North Caroline, was awarded by Gov. Roy Cooper the highly prestigious and honorable “Order of the Long Leaf Pine” award on December 4, at the company’s annual Christmas Party.

We have recently heard of a health carrier requiring agencies whom they do business with to carry Cyber Liability insurance. And of course, they are recommending you purchase this coverage through them.

Don’t forget, the IIAV in partnership with Beazley and Arlington Roe, offers Cyber Liability coverage for member agencies. Members get special pricing and binding coverage is as easy as 1, 2, 3. We have provided rate grids for agencies with revenues under 10M to easily determine your premium based on limits you choose:

As a Beazley Breach Response policyholder, you will have access to risk management policies and procedures, training and other tools. In addition, when you have a covered breach, they are ready to deliver a well-coordinated response.

For more detailed information, contact Linda Loving at lloving@iiav.com or 800-288-4428.

Chairman's Club:
Jackson-Sumner

Executive Club:
VFSC

President Club:
Donegal

Independent Club:
Alfa Alliance
Hanover Excess
Keystone Group
State Auto
Amerisafe
Central Ins Co

The number of allegations against men of power in the entertainment world and the rise of the #MeToo movement in response, has the nation’s attention on sexual harassment in the workplace.

No surprise that workplace discrimination claims are at an all-time high. A recent industry study indicates that only 1.2 percent of businesses have Employment Practices Liability Insurance (EPLI). This exposure presents an opportunity for agents to fill the coverage gap with EPLI coverage for their commercial clients while also helping mitigate Errors and Omissions (E&O) claims for the agency.

Does your agency carry EPLI coverage? IIAV can provide coverage for member agencies either with an endorsement to your Westport E&O policy or as a standalone EPLI policy. Our carriers are admitted and rated A+ by AMBest.

We offer a range of limits and coverages to meet your needs including comprehensive First and Third-Party coverage for wrongful acts including discrimination, harassment and retaliation. The pricing is affordable and EPLI coverage is needed more today than ever due to an increasingly litigious workplace.

Call IIAV at 804-747-9300 / 800-288-4428 and request a quote today.

“The beginning is the most important part of the work." ~Plato

2018 is a great year for continuing education, whether you need 16 or 24 hours to maintain your license, IIAV has new classes available this year as well as those need for designations!

Learning matters because there is so much you need to know.  And there is so much information out there, just waiting to be gleaned.  Take a look at our 2018 calendar, including the highlighted classes below. 

This is just the beginning of a year filled with learning.

In last month’s E & O Spotlight, Linda Loving pointed out that the statute of limitations for professional liability claims in Virginia is three years.  The Supreme Court of Virginia has decided several cases that stand for the proposition that E & O claims against insurance agents are potentially viable only if the allegation is that the agent violated an unwritten contract with the policyholder or putative policyholder. 

Isn’t this the space for Bob’s insightful comments?  Of course it is . . . . normally. But it is a brand-new year and by the time you are reading this, Bob will be immersed in hundreds upon hundreds of new bills introduced at Virginia’s General Assemble session. This one will be full of new twists and turns and you will be awfully happy to know that he and Joe Hudgins will be downtown covering our backsides. Stay tuned for Bob’s weekly and very thorough Legislative updates.