October 20, 2004

AIIA Building on Schedule

AIIA’s new home is growing at speedy pace. Not only are the steel beams in place, you can actually see the general structure of the building. Along the far side, a wall is up; and along the top, we have cover. The curbs along the parking lot edges have been placed. Even the most skeptical of people are getting excited about the coming move to our new AIIA Headquarters! We hope you share in the excitement because this building is for you, our Big “I” members. For many years, we listened to your concerns about parking shortages, long lines for restrooms, and the need to create a meeting space worthy of sharing with you. Our education students, CISR and CIC participants will greatly benefit from the nearly 10,000 square foot classroom. The new office’s central location and easy access to Interstate 65 will help members across the state find AIIA with little effort.

We plan to be in our new home by Spring 2005! We thank the Long Range Planning Committee and the Building Committee for all of their hard work and dedication to make the Building for Tomorrow program a dream come true. Most importantly, we thank our members for their contributions, pledges and support. Please join us in welcoming the future and the success of the Alabama Big “I” – our Association and our fellow members can be proud of what we can accomplish as an industry group.

BIG “I” CONDEMNS ILLEGAL BID-RIGGING AND STEERING

Nation’s leading insurance association calls for disclosure, prosecution of guilty parties

During the past few days, there has been a great deal of media attention regarding the New York Attorney General’s lawsuit against international insurance broker Marsh & McLennan. The focus of the lawsuit accuses Marsh of (1) bid-rigging or bid-manipulation during the course of placing some clients’ insurance coverages and, (2) steering business to insurance carriers that pay Marsh favorable fees under Placement Service Agreements (PSAs) or market service agreements. In response to the news of the lawsuit filed Oct. 14, Big “I” CEO Robert A. Rusbuldt called for rigorous prosecution of any illegal activity. IIABA has condemned bid-rigging and steering, and has called for disclosure by brokers of placement service agreements. Independent agents, who are fielding questions from clients regarding their own specific relationships with their agents/brokers and insurance carriers, are feeling the impact of the publicity surrounding this issue.

“Rigging bids by providing clients with false or inflated quotes to eliminate true competition is illegal,” Rusbuldt says. “Executives engaged in such practices should be prosecuted to the fullest extent of the law. The few bad actors who engage in these unlawful practices betray the public’s trust and unfairly damage our industry’s reputation. We agree with Attorney General Spitzer that anyone proven guilty of such illegal activities should be brought to justice and punished.”

In order to ensure transparency in the marketplace, the Big “I” last week adopted a policy stating that brokers should disclose the existence of placement service agreements to their clients, describe the nature of such compensation agreements and advise clients that they can discuss the matter further and request additional information. IIABA has prepared a briefing for members and has adopted a policy regarding Broker Placement Service Agreements. Both of these documents are attached for your review and will be uploaded to the AIIA website this week.

“We must keep in mind that placement service agreements are legal under the insurance laws of all 50 states,” says Thomas B. Ahart, CPCU, AAI, president of Phillipsburg, N.J.-based Ahart, Frinzi & Smith Insurance Agency and an IIABA past president. “It is common practice in the industry for brokers to make a full disclosure of such agreements to their clients, which promotes transparency, preserves trust between brokers and clients and ensures that clients are fully informed about their brokers’ compensation agreements.”

While calling for full prosecution of anyone guilty of illegal business practices and supporting disclosure of placement services agreements, the Big “I” also noted that legal sales incentives should not be impeded. “In industries where there are commission payments, including the insurance industry as well as many other types of businesses, incentive compensation is one form of compensation used to reward sales excellence,” Rusbuldt says. “It is a commonly understood part of the American sales culture.”

More Alabama Counties Eligible for Disaster Relief

As of October 10th, federal officials added 14 Alabama counties to the list of counties eligible for Hurricane Ivan disaster relief. The new counties include Cleburne, Colbert, Cullman, Dale, DeKalb, Franklin, Lamar, Lawrence, Lee, Marion, Marshall, Pike, Tallapoosa and Winston, bringing the total number of eligible counties to 46. Please note that Cleburne is designated eligible for public assistance only. Under public assistance, the federal program reimburses state and local governments and certain private non-profits on a cost-share basis for debris removal and emergency protective measures.

EDUCATIONAL OPPORTUNITIES – Register Online at www.aiia.org - Click on Continuing Education

Ø Personal Lines Field Underwriting & Ethics- Hollywood Style! Presented by Infinity, course is approved for 6

hours of continuing education credit. Registration fee is $80.00 for members. Locations include Mobile on October 26th, Montgomery on October 27th and Birmingham on October 28.

Ø P&C Agents Licensing School – Course fee is $225.00 and includes all books and materials. In Mobile November 1-5 and in Birmingham November 15-19.

Upcoming AIIA Important Dates

Ø November 18th “I” Day – The 22nd Annual Insurance All Industry Day will be held at The Wynfrey Hotel in Hoover, Ala. Guest speakers include Insurance Commissioner Walter Bell, Regional Vice President of Auto Owners’ Insurance Drew Klasing, Eminent Scholar of Insurance & Risk Management at Troy State University Dr. Carol Jordan and Steadman Shealy. This event is approved for 3 hours of CE. Fee is $45.00 per person, includes lunch. I Day is presented by the North Alabama CPCU Chapter. Please contact Ivy Ingle for information c/o EMC Insurance, P.O. Box 1568, Birmingham, AL 35201.

Ø November 30^th AIIA Board of Directors Meeting AIIA Office, Birmingham

EMPLOYMENT / AGENCY OPPORTUNITIES

NOTICE ! In a few weeks, AIIA’s employment opportunities will move to the AIIA website due to popular demand for job postings. Please contact Alison Ray King at aray@aiia.org or 205-326-4129 for further information.

Ø Seeking Commercial Lines Producer: Full Service P&C Agency located in Auburn seeking Commercial Lines Producer. Call Steve Watson @ 800-704-0503 for more details.

Ø Seeking Personal Lines CSR: Established Montgomery agency looking to expand to Tuskegee area. Seeks honest dependable individual for personal lines customer service position. One or more years of insurance experience a plus. All inquires are confidential. Send all inquires to 906 S. Perry St. Ste. 100, Montgomery, AL or fax (334)-356-3638.

Ø Seeking VP: Weaver Insurance Group seeks proven leader w/ excellent sales, marketing, managerial skills to serve as Vice-President/Sales & Operations for agency side. Candidate must have proven talent in creative and entrepreneurial thinking, demonstrated skills in management, confidence in public speaking and experience in making presentations. CIC, CRM or CPCU certification is desired.

Ø AIG Seeks Agency Sales Manager. AIG Agency Auto seeks agency sales manager to establish new accounts, appoint new agents and manage independent agents to increase sales and territory profitability. Requirements include Bachelor’s degree or equivalent experience, 2 to 5 years of successful business experience in outside sales or account management, P&C experience. Apply online at www.aig.com/careers or fax resume to (770) 753-4623.

Ø If Relocating to Paradise Interests you… Thames Batre Mattei Beville & Ison is looking for the right person for Gulf Shores office. The CSR position requires P&C license with minimum of 2 years of Personal Lines Homeowners experience. For full details contact Phill Brown at 800-514-8132 or phill@tbmbi.com .

Ø SEEKING POSITION: Seeking full time employment with a company or agency that I can use my 5 years of experience with my P&C license. Please contact Crystal at (205) 559-3488 or crystalatpac@hotmail.com .

Ø Seeking PL CSR/ Producer: The Pinckard Agency, Montgomery, seeks experienced Personal Lines CSR / Producer. Please contact Celia Courson at (334) 244-7000.

Ø Seeking PL CSR: Birmingham area agency seeks Personal Lines CSR, must be licensed w/ 3 years experience. Knowledge of Travelers, Cincinnati, Auto Owners or AMS a plus. Good salary and benefits. Contact Sandra Franklin at (205) 956-0563 or send resume to Sandra@bandbins.net.

Ø Agency wanted: Looking to purchase local Birmingham P&C agency with current owner willing to stay and maintain management of agency. Call Kurt (205) 795-2545.

Ø Cobbs, Allen & Hall seeks permanent part-time employee with strong commercial lines background to conduct internal reviews to insure compliance with quality control and data entry procedures. Strong computer skills and knowledge of excel required. Knowledge of Personal Lines, Group Benefits, Applied a plus. Contact Anna Gaylor (205) 874-1251.