February 24, 2004

CompEdge Program Endorsement Terminated Alabama Insurance Management Services (AIMS), the for-profit subsidiary of Alabama Independent Insurance Agents, has terminated their endorsement of the CompEdge program written through USA Program Underwriters effective 2/20/04. The decision to terminate the agreement came as a recommendation from the AIIA Member Services Committee to the AIIA Executive Committee and was approved by the AIMS Board of Directors. CompEdge announced earlier in the month that they lost one of their primary workers compensation markets. "AIMS will not be entering into another sponsored workers’ compensation program," says AIMS President Arthur Williams, AIC, CIC. Policies written with the CompEdge program will be non-renewed and members with policies written through the program should plan to market the renewals with their other markets. If you have any questions, call Alison Ray King in the association office at (205) 326-4129.

ON THE HILL: Crop SRA Up For Renewal The Big “I” is calling members to action on the crop insurance program Standard Reinsurance Agreement (SRA), which is up for renewal for the 2005 crop insurance year. The SRA directs the terms and conditions under which federal crop insurance policies are sold to farmers. It appears the Risk Management Agency (RMA) is attempting to change the entire procedure from a negotiated agreement to a rule-making process – leaving companies no recourse when RMA chooses to change the terms for delivering the program. RMA recently released guidelines for discussing the SRA, which states that a trade association cannot negotiate any term of the proposed SRA with RMA or attend any individual negotiation meeting between the RMA and the company. As a result of RMA’s refusal to negotiate, the Big “I” now must call on Congress to intervene on our behalf. Within the proposal, RMA would extract 25 % of every company’s cumulative underwriting gain and place greater regulatory requirements on agents to deliver the program. There are also provisions that would make it more difficult for companies to deliver the program in high-risk areas. Additionally, an oversight provision states that companies, agents and loss adjusters will no longer own their own businesses if the Federal Crop Insurance Corporation (FCIC) determines that a party as not properly carried out its obligations. Most worrisome for the Big “I” is an attempt to deal with the Premium Discount Plan (PDP), an anticompetitive pilot program for the delivery of crop insurance that the Big “I” successfully fought off last year. The Big “I” and its members must work collectively as an association to stop these encroachments before property-casualty lines are infiltrated. Tell your Congressional members and staff at IIABA’s annual Legislative Conference April 21-23.

NCCI Revises WC Payroll Value Recently, NCCI issued revised "Advisory Miscellaneous Values" to be effective March 1, 2004. Among these values, the maximum weekly payroll attributable to executive officers remains at $2,300 per week, and the minimum payroll remains at $300 per week. These values did not change from the March 1, 2003, values. However, the set payroll amount for partners and sole proprietors for workers’ compensation rating purposes is increased to $45,600. (It was $44,100 as of March 1, 2003).

Date Set for 5th Annual Big I PAC Golf Tournament – This year’s Big I PAC Golf Tournament has been set for Tuesday, September 14th. Save the date so you don’t miss the fun! This is an election year, so make sure your local lawmakers are available September 14th to join the state’s largest group of industry opinion leaders on the greens at Prattville Country Club in Prattville, Ala.

MEMBER SERVICES: Big “I” Professional Liability Program Is Growing Last year was an excellent year for the national Big “I” Professional Liability Program, underwritten by Westport Insurance Corporation, with more member agents than ever finding solid E&O coverage for their agencies through their state association. The number of policyholders reached a 20-year high, growing by nearly 10 percent. Several reasons for the program growth include the quality service and experience of the state association, the financial stability of Westport and the extensive policy coverage. Additionally, several agents’ E&O carriers exited the marketplace resulting in more members choosing the AIMS/IIABA program through Westport to protect their businesses. For information about becoming part of the largest agents’ E&O program in the U.S. and Alabama, please contact Alison Ray King at aray@aiia.org or call (205) 326-4129.

EDUCATION OPPORTUNITIES

Time is running out to register for "The Great Insurance Time Machine" course. Mike Edwards, nationally recognized instructor and author of many articles on the Big I's Virtual University, teaches this class for 6 hours approved CE credit. Class will be a case study format including personal lines, and commercial lines, with a theme of errors and omissions loss prevention. Cost is $80 for association members. The course is being offered in Mobile on March 9, Montgomery on March 10, and in Birmingham on March 11.

EMPLOYMENT / AGENCY OPPORTUNITIES

Ø Seeking Agent – Position available for P&C agent. Starting salary depending on experience, plus benefits and bonus. Contact Linda at (205) 877-4412 or (800) 282-6242, ext. 4412. Fax resumes to (205) 414-2854.

Ø Seeking CSR – Collins Insurance Agency in Hoover needs a Commercial Lines CSR. Individual must be licensed and experienced in Commercial P&C. Please contact Mike Collins at (205) 979-5410.

Ø Seeking Agency for Purchase - Licensed insurance agent interested in purchasing or partnership with a multi-line independent insurance agency in Jefferson or Shelby County area. Please respond to 205-283-1063. All responses confidential.