Welcome to the Young Agent's Advocate, an electronic newsletter published by the Professional Independent Insurance Agents of Illinois. If you are a young agent (under the age of 40), we invite you to join our young agents mailing list. Simply send an e-mail to Shannon Churchill that includes your name and agency, and we'll add you to our database.

Governor Unveils $32 Billion New Revenue Plan

In his March 7th State of the State/Budget Address, Governor Rod Blagojevich announced an ambitious proposal to raise $32 billion in new revenue by increasing business taxes ($6 billion), selling pension bonds ($16 billion), and leasing the state lottery ($10 billion). In his “Investing in Illinois’ Families” theme, the Governor promoted four major components of the budget proposal: tax fairness, healthcare, education, and pensions. (To read the Governor's budget address, visit www.illinois.gov).

Included in his proposal is a 1.8% gross receipts tax on services and .5% gross receipts tax on transfer of personal property, including construction. Some exemptions apply. Revenues raised from this tax would be used to fund the Governor’s proposed “Illinois Covered” stated funded health insurance pool. Funding would also be provided through a new 3% payroll tax on businesses with no wage limit. The payroll tax plan provides credits against tax for employer covered health insurance costs. Companies with ten or less employees would be exempt. The Illinois Department of Revenue will administer the tax, but it is unclear whether the tax will be based off of unemployment or withholding tax reporting. Legislative language to implement the plan is still in progress.

A synopsis of the Governor’s FY08 Budget and an analysis of the healthcare proposal is posted here:
www.votervoice.net/Files/PIIAI/Attachments/FY08%20Analysis.pdf

Compensation Disclosure Update – SB 1688 (Harmon)

SB 1688 seeks to impose the compensation disclosure requirements of the settlement agreement Aon signed with Attorney Generals Madigan, Spitzer and Blumenthal on every independent agent in Illinois. These include:

1. Disclosure to a customer in writing, of all quotes sought and all quotes received.
2. For each quote, disclosure of all compensation to be received from the insurer or third party, including profit sharing arrangements or estimates thereof.
3. Requirements to obtain written consent from each customer.
4. Disclosure of all compensation received or anticipated to be received for the placement, renewal, servicing of, or consultation on each policy to each customer at year end.
5. Prior notification to an insured before a producer may retain interest earned on premiums collected on behalf of insurers.

The PIIAI Government Affairs Advocacy Program has been in overdrive to defeat the proposed legislation. The deadline in the Senate for members to call their bills in Committee is Thursday, March 15th. SB 1688 has not been called for a vote in the Senate Insurance Committee, however Senator Harmon and lobbyists for Aon continue to work for passage of the bill.

To view a copy of the bill, our position paper and comments, visit: http://votervoice.net/groups/PIIAI/advocacy/?IssueID=9538&AdminPreview=True.

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Important Informational Legislative Update Scheduled

      Given the number of significant issues facing independent agents this year, an informational conference call has been scheduled on Tuesday, March 13th at 10:00 AM to update the membership on legislation currently in the General Assembly. To join the call on March 13th, those whose last name begins with A through K should dial (800) 944-8766 and enter participant code 24070. Those whose names begin with L through Z should dial (800) 791-2345 and enter participant code 19084.

Young Agent Participation Needed at Insurance Industry Legislative Day

With these pending legislative issues, it is imperative that we have a strong showing of independent agents at Insurance Industry Legislative Day in Springfield, March 20th. Registration opens at 10:30am at the President Abraham Lincoln Hotel (formerly the Renaissance). A first-time attendee orientation takes place at 10:45, followed by a luncheon program and break-out sessions. Participants will then head to the Capitol to visit with their legislators and attend a reception at the hotel that evening.

It is not too late to register. For more information, visit www.piiai.org/government/LegislativeDay.htm or call the PIIAI office at (800) 628-6436.

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Other Young Agents Events can be found on our website at www.piiai.org/youngagents and include the following:

Young Agents Needed for the Big “I” Legislative Conference & Convention

As the future of the industry we need to make our voices heard!  Sign up today to attend this conference April 25-27 in Washington, DC.  For more information contact Jennifer Jacobs at jjacobs@piiai.org or by phone at 1-800-628-6436 ext. 3013.

Young Agents Cardinal Baseball Game
Registrations are currently being accepted for the game on Saturday, May 5th. Don’t delay - Tickets are limited. Sign-up today! For more information click here.

Summer Internship Program
The summer program offers a pool of young talent available to participating agencies allowing the agencies to mold the future of the industry.  If you chose to hire an intern through this program, your agency will be responsible for compensation and guiding the student through an eight-week program that allows them to experience the independent agency system. If your agency is interested in participating in this program please go to the Internship website at http://www.piiai.org/internship/ and fill out the agency sign-up form.

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Thank you to our Young Agents Sponsors! 
Their financial contributions have enabled PIIAI to offer activities to young agents at substantial cost savings.
AAA Insurance, Allied Insurance, Allstate/Deerbrook/Encompass Insurance, Arlington/Roe & Company, Inc., Badger Mutual Ins. Company, Consumers Insurance Company, Erie Insurance Group, General Casualty Co., Grange Mutual Casualty Co., Grinnell Mutual Reinsurance Co., The Hanover Insurance Group, IMT Insurance Company, Insight Insurance Services, Inc., Interstate Risk Placement Inc., Iowa Mutual Insurance Company, OneBeacon Insurance, Pekin Insurance, Rain & Hail, LLC, Progressive, Rockford Mutual Insurance Company, Roush Insurance Services, Inc., W.A. Schickedanz Agency Inc., Society Insurance, Standard Mutual Insurance Company, United Fire Group, West Bend Mutual Insurance Co., Westfield Insurance Companies, J M Wilson, Zurich Small Business