Pub. 5 2016 Issue 3

l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s 6 R ecently we all received some rather unexpected news that Kansas Bankers Surety was closing down and so would not be renewing its insurance policies throughout the next year. While the timing was a surprise, we here at the KBA want you to know that we have positioned ourselves to be able to meet all of your insurance needs with other carriers. Herb has worked to create relationships with other respected insurance carriers and can provide you with all the options to ensure your insurance coverage will remain intact. There are a lot of questions regarding this issue. We have prepared a Q&A to address the most common questions. We here at the KBA want to thank you for your support of the Association as we know you have several choices when you place your insurance. I would simply ask that as you think about your future insurance needs, you CALL HERB FIRST. Q: I’ve received the letter from KBS and the email from KBA and I have questions about the bank’s insurance coverage going forward. What do I need to do? A: We encourage you to call Herb Iams first with any and all insurance questions. (KBA 785-232-3444, Herb’s cell 785-224-1835, e-mail hiams@ksbankers.com) With over 33 years of experience working with and assisting Kansas banks with their insurance needs, Herb has options and solutions from a wide variety of carriers to fit your needs. Q: Aren’t KBS and KBA Insurance the same thing? A: No. Kansas Bankers Surety is an insurance company that is a division of Berkshire Hathaway. KBS specialized in the writing of financial institution bonds for banks. KBA Insurance, Inc. is an insurance agency (wholly owned by the Kansas Bankers Association) that works directly with Kansas banks by representing companies that provide bonds and other coverages. KBS and KBA are separate companies. ( Please note – Herb works for the Kansas Bankers Association, not Kansas Bankers Surety Company.) Q: Does it really matter who I get my insurance through as long as I’m getting the best rate? A: Yes! The revenue generated by KBA Insurance helps fund many of the programs and services that KBA is able to provide to Kansas banks. In fact, about 40% of KBA’s budgeted income is from insurance revenue. This assists with sustaining and growing your KBA in areas such as government relations, member services, legal assistance and the member-driven work of so many committees. Q: Is my bank’s coverage being canceled? A: No, your coverage is NOT being “canceled.” KBS is renewing coverages effective from now through early June. All bonds and policies with effective dates after June 5, will soon be receiving non-renewal letters. It is important to note that your policies are being non-renewed to comply with a carrier’s exit from the market. Q: I keep hearing that my bank needs cyber coverage. Is that something KBA Insurance can help me with? A: Yes. KBA Insurance has markets, including Beazley, to provide cyber policies to Kansas banks. Call or email Herb Iams for additional information. Q: According to KBS, my policy doesn’t expire for several months. Why should I start worrying about it now? I’ve plenty of time, right? A: While you do have time before your policy expires, it is best if we can give underwriters at least 30 to 60 days to review your coverage needs. The more time you are able to give, the better your rates may be since they will have time to fully analyze your requirements. Do not wait until the last minute to make decisions about new coverage. Call Herb today! Q: I write my property/casualty insurance through KBA Insurance. Does this affect it as well? A: No it does not. This only affects Financial Institution Crime Bonds, Directors & Officers Liability policies, and miscellaneous supporting coverages that were written by Kansas Bankers Surety. Q: So, what is the bottom line? A: The bottom line is that KBA Insurance is here working for you, as we have been for decades. We have many carriers that want to write your policies. There are plenty of options available, and they will be competitive. Call Herb first so that he may explain these options and work with you to find the solution that best fits your bank’s needs. KBA LEADERS LEDGER By Chuck Stones