Mandatory Automobile Liability Insurance Becomes Law
On Friday, April 21st, AIIA faxed out a two-page summary detailing all aspects of the new Mandatory Automobile Liability Insurance Law.  If you did not receive the fax or you would like another copy, call our Fax-On-Demand line toll-free at (877) 669-1872 and request item #5000 or you can find it under Current News on www.aiia.org.  If you have any other questions, call AIIA at (205) 326-4129.

Gov. Siegelman Takes Wind Out Of HB705 & SB493
Governor Siegelman backtracked on his Finance Director, Henry Mabrey, who was seeking legislation that would take away the right from a contractor to choose his insurance and bonding carrier on all contracts dealing with education construction projects in the state.  Siegelman, who once supported the bill publicly, stated he had moved to a neutral position because of concerns raised by groups like AIIA, AGC, BCA and the ABC.  The Senatorial Sponsor, Zeb Little (D), Cullman, withdrew the bill from a scheduled public hearing after receiving word of Siegelman’s change of heart.  The Siegelman administration and industry leaders continue to meet and discuss the bill as this year’s legislative session winds down to a close.

AIIA Welcomes New Meeting Planner
AIIA got very lucky when it snagged Nancy Crowe as its new Meeting Planner.  Nancy, who started her new position last week, holds a Bachelor’s degree in both Liberal Arts and Social Sciences from Faulkner University and is a member of the American Society of Association Executives, the Professional Convention Management Association, the Alabama Council of Association Executives and the Alabama Society for Healthcare Education and Training.  Her professional experience includes employment with the Alabama Hospital Association and the Alabama Association of REALTORS.  Nancy and her husband, Lanie, have relocated to Birmingham where her two children, Lanie Crowe, II and Johanna Baker already reside.  Please join us in welcoming Nancy to the AIIA!

104th Annual Convention - VISION 2000 - Registration Underway
Registration for this year’s AIIA Annual Convention - VISION 2000 - in Sandestin, FL on June 11-13, 2000, is well underway!  Registration forms were mailed in March and we’re already on our way to having another record setting convention.  The three day convention will start off with a Board of Director’s meeting on Sunday morning, June11th.  Convention registrants will be able to pick up their registration packets at 3:00 that afternoon and the fun begins.  The night will be filled with the opening cocktail party, the Star Spectacular Dinner and will wrap-up with the Kid’s Crab Hunt and the Family Volleyball on the Beach.  Monday will start off with the Galaxy Trade Show which will run from 8:00 am to 12:00 noon followed by the Fishing, Golf and Tennis Tournaments.  Tuesday, June 13 will hold our General Session during which our new Officers will be sworn in and participants will earn 5 CE credits for attending our industry speaker’s seminar held by Mary Eisenhart, CPCU, ARM, Are, CIC, RPLU, CPIW.  Tuesday, the final day, will bring more fun-filled activities including Kid’s Beach Olympics, a Family Luncheon, Pool Party, Beach Volleyball and will wind-up with the closing Cocktail Party and Banquet during which we will have the Grand Prize Drawing, Awards Presentations and entertainment by Kelly Garver.  This will be an event to be remembered with lots of fun and networking opportunities.  If you have not already registered, you may do so online at www.aiia.org or call AIIA to get a form faxed to you at (205) 326-4129.  The cut-off for our Room Block at the Sandestin Hilton is May 11, 2000, so act quickly in order to get these preferred rates!  If you have any questions regarding the Trade Show or the Convention, please call Nancy Crowe at AIIA (205) 326-4129.  Look forward to seeing you there!

Industry First: IIAA Convenes Agency System Users to Push for ‘Agent-Friendly’ E-Commerce
For the first time in history, the top agent leadership of the largest agency management system user groups met last month to share common interests in technology.  The purpose of the summit was to discuss and reach agreement on issues of technology effecting independent insurance agents.  Among the participants were representatives from both AMS and Applied User Groups.  At the end of the day, they all agreed on the need to work together to help accomplish our collective goal of using new technology to make our distribution system the distribution system of choice for the insurance-buying public.

Condolences to the Family of Bill McGehee, III
AIIA sends their deepest sympathy to the family of Mr. Bill McGehee, III, CIC of Talladega Insurance Agency.  Mr. McGehee’s father, Billy McGehee, passed away on April 7, 2000.  Billy left his career as a pharmacist and moved to Talladega to enter the insurance business in 1950.  He retired just nine years ago when his son, Bill, purchased the agency.  AIIA sends it’s deepest condolences to the friends and family of Mr. McGehee.  He will be sorely missed.

Condolences to the Family of Janice Collier
Janice Collier will be sorely missed by her co-workers at Your Insurance Center, Inc. in Hamilton.  Collier, a licensed agent who had been in the insurance business for almost twenty years passed away on April 2, 2000.  She started her career in insurance with Walker Insurance Agency and came to work with Your Insurance Center as a CSR in 1995 after the birth of her daughter, Kayla.  She is survived by her daughter and her husband, Donald Collier.  AIIA sends it’s deepest condolences to Mrs. Colliers family and friends.

Big “I” Markets Topic of Recent Meeting
The Big “I” Markets Program and opportunities for cooperation between the American Association of Managing General Agents (AAMGA), the National Association of Professional Surplus Lines Offices (NAPSLO) and IIAA were discussed by leaders of the three associations at a recent meeting.  Big “I” Markets is an online service created by IIAA that will enable members to access specialty and niche coverages for their clients through an interactive Internet-based program.  IIAA leaders expressed a strong desire for AAMGA and NAPSLO members to participate in the program which will be launched soon.

IIAA Tells Senate That NARAB Proposal Unlikely To Be Enacted
The NARAB provision - designed to streamline the multi-state licensing process - that was included in the Financial Services Modernization Act enacted last November is the provision that requires the creation of the insurance agent-licensing clearinghouse if a majority of states do not enact licensing reciprocity by Nov. 12, 2002.  IIAA spokesman and past-president, Ronald A. Smith, CPCU testified to the Senate Banking Committee’s Securities Subcommittee that “IIAA is optimistic that the states will achieve the level of reform required by Congress and implement a licensing system that is in fact better than that offered by the NARAB provisions.”  Smith continued, “The threat of NARAB creates a strong incentive for the states to reinvent and streamline the multi-state licensing process.”

MS Enacts Mandatory Auto Liability
Mississippi Gov. Ronnie Musgrove has signed into law a bill enacting the state’s first mandatory automobile liability insurance requirements.  The law which will take effect Jan. 1, 2001 requires every motor vehicle operated in the state to have an insurance card in it verifying minimum coverage of 10/20/5.  A motorist without an insurance card will be fined $1,000 and suspension of driving privileges for one year or until the motorist shows proof of liability insurance in compliance with the required limits.

TN Agents Association Launches Eagle Agency
In a constant effort to enhance the value of membership, the Tennessee Big I is launching the Eagle Agency to expand market access.  The Eagle Agency, established by IIAA, is designed to offer competitive, standard market personal lines insurance products for members to sell to their clients, with no volume commitment.  This program was launched in Alabama about a year ago and has helped several AIIA members get access to markets they otherwise would not have due to an inability to meet high volume requirements.

May Educational Opportunities
May is the month for CISRs! All CISR classes are approved for 8 hours of CE credit!
May 2nd  CISR-Commercial Casualty Mobile 
May 4th  CISR-Commercial Casualty Huntsville
May 9th  CISR-Commercial Casualty Birmingham 
May 10th CISR-Commercial Casualty Montgomery
May 11th CISR-Commercial Casualty Tuscaloosa
The topics for CISR Advanced Lecture Series will be Business Owners and Commercial Inland Marine Coverages. We will conduct these seminars in Montgomery, Mobile and Tuscaloosa this month. Remember ALS is only open to CISR and CIC designees.
The only P&C Licensing School that will be offered until September 2000 will be held this month. We will be offering this 40 hour school in Huntsville May 15-19, 2000. Sign up today!
Don’t forget, you can register for any education opportunity online, www.aiia.org or call our office at (205) 326-4129 for any additional information.

Fountain, Parker Harbarger & Associates Holds Open House
FPH will be holding an open house on May 1, 2000 from 9:30 am - 5:00 pm to celebrate four exciting events - the Agency’s 79th Birthday (Founded in 1921), Fountain, Parker, Harbarger & Associates’ 10th Birthday, the Building’s 73rd Birthday (Built in 1927) and the opening of their newly renovated offices.  Congratulations on this celebratory day of accomplishments!

Employment / Agency Buyer Opportunities
*Personal Lines CSR wanted for local Birmingham agency.  Please fax resume to (205) 930-0450 to the attention of the Personal Lines Manager.
*Immediate opening for qualified, FT Sales Secretary for GuideOne Insurance.  Applicants should be proficient in MS Word, Windows 95, and Excel and exhibit good communication skills (written & oral), possess organizational skills, be self-directed and task oriented.  Good benefits and pleasant working conditions.  Please send resume to Ronnie Sullivan at rsullivan@guidemail.com or fax to (205) 987-5282.  For more info, call Ronnie Sullivan at (205) 987-0440 ext. 23.
*If you’re looking for a Buyer for a P&C Agency is the Birmingham metro area, call Charles Clodfelter at (205) 979-7778 or (205) 914-3634.  All calls are kept strictly confidential.

HB134, the revised mandatory automobile liability bill passed the Senate on April 18th.  The bill passed the House on February 10th by an impressive majority and the Senate on April 18th by a vote of  28-0.  Governor Siegelman has stated that he will sign this bill into law.  HB134 removes the requirement to provide 30 day notice of cancellation to the Department of Public Safety and has a number of new provisions as follows: 

Proof of insurance will be required when requested by an officer of the law in the form of an identification card, certificate of insurance, policy, binder, a valid rental agreement specifying insurance coverage, or a cash deposit with the State Treasurer in an amount not less than $50,000.  Proof is required regardless of whether you are the owner/operator or just the operator. Required limits of liability are 20/40/10 or 50CSL.

A random sample of 10% of all motor vehicle registrations will be drawn for insurance verification.  Those placed in “heavy rotation” for verification will include but are not limited to:

1. Those whose motor vehicle registrations have been suspended for non-compliance.
2. Those convicted of driving a non-owned vehicle without proof of insurance.
3. Those whose driving privileges have been suspended or revoked during the preceding four years.
4. Those within the past four years who have received a disposition of supervision by the courts 
    for non-compliance of the mandatory liability law.
5. Anyone involved in an accident without proper proof of liability coverage in force.

The random sample will identify individuals who are in violation of the law by direct admission by the individual or through the insurance carrier listed as providing the liability insurance.  In either case, the motor vehicle registration for the guilty party will be suspended 45 days after the date of the mailing unless the owner can furnish proof of liability insurance which was effective on the verification date. 

First time violators of the new law will have their motor vehicle registration suspended, pay a $100 reinstatement fee and must submit proof of liability insurance.  The insurance will have to remain in effect for a period of one year and their names will be furnished to the DPS for inclusion in the random sample of motor vehicle registrations.
 

Second time violators of the new law will be charged with a class B misdemeanor. Their motor vehicle registration suspended for four months, pay a $200 reinstatement fee and submit proof of insurance.  The insurance will have to remain in effect for a period of three years and their names will be furnished to the DPS for inclusion in the random sample of motor vehicle registrations.

A list of violators will also be made available no later than the 10th of each month to all vehicle registration officials authorized to issue license plates and those listed violators will be required to show proof of insurance to register or transfer registration for an automobile.

All vehicle owners registering for license plates will be required to affirm that they are in compliance with the liability insurance requirement. You will be able to register your tag by mail but must sign the affirmation that you are carrying liability insurance on your tag renewal notice. Those renewing by electronic means may continue to do so but must also affirm they are in compliance with the law by means determined by the DPS and probate offices using an electronic renewal process.

If it is determined that proof of insurance submitted is false, the department will suspend the owner’s vehicle registration for a period of six months.  After the six month suspension, payment of a $200 reinstatement fee and submission of proof of insurance, the registration will be reinstated.  Upon reinstatement, proof of insurance will be required by the Department of Public Safety for three years.

Law enforcement officials cannot stop a vehicle for the sole purpose of verifying the existence of an insurance policy but will request verification of insurance if you are stopped for any other reason.

Other penalties include the charge of a class C felony for those who alter, forge, or counterfeit an insurance card, makes, sells, or otherwise makes available an invalid or counterfeit insurance card, or other evidence of insurance.  A felony conviction carries a $500-$5000 fine and/or imprisonment for not less than one year and a day or not more than 10 years.

A class C Misdemeanor is charged for those operating a vehicle without liability insurance, fails or refuses to present proof of insurance when requested to do so by a law enforcement official, operates a vehicle under suspension for failure to carry insurance, displays evidence of insurance when none actually in is effect, or registers or attempts to register an uninsured vehicle. A misdemeanor conviction carries a fine of $500 for the first conviction and $1,000 for subsequent convictions and a suspension of the person’s drivers license for up to six months or both.

The law applies to both personal and commercial vehicles and contains new language requiring motor vehicle dealers, motor vehicle rebuilders, motor vehicle reconditioners and motor vehicle wholesalers to maintain blanket motor vehicle liability on all vehicles operated on Alabama highways, including those in their inventory. Evidence of liability insurance will be required to renew their business license.  Failure to provide evidence of liability insurance will result in denial of their application for their business license.

The new law becomes effective June 1, 2000 with regards to penalties for non-compliance and January 1, 2001 with regard to the various administrative requirements imposed on the state agencies who will administer the law, (i.e. probate offices). Individuals stopped by law enforcement officials for traffic violations and/or accidents will be required to show proof of liability insurance effective June 1, 2000, or suffer the penalties provided for by law.
 
 

The Siegelman Administration continues this week with their legislative plans to dismantle Alabama’s Competitive Bid Law. Legislation introduced in both the House and the Senate that would take away the right from a contractor to choose his insurance and bonding carrier on all contracts funded through the Alabama Public School and College Authority could see movement this week. The insurance industry and contractors where shocked last month when HB 705 and SB 493 where introduced amending Title 39 (Alabama’s Public Works Law) so that the awarding authority  - the State of Alabama - would be able to dictate to a contractor who his insurance and surety bond carrier would be on all public school work.

Senate Bill 493 will be considered by the Senate Economic Expansion and Trade Committee on Wednesday, April 12th at a 10:00 a.m. Public Hearing. We are asking all interested Agencies to have a representative at the State House on Wednesday so the Administration and Committee Members can see the level of opposition to the legislation. We are also asking AIIA members to call their State Senators, especially the members of the committee, to register your opposition.

Senate Economic Expansion and Trade Committee members are:
Chairman Senator Pat Lindsey, Butler    Vice Chairman Senator Gerald Dial, Lineville
Senator Charles Langford, Montgomery   Senator Zeb Little, Cullman
Senator Wendell Mitchell, Luvern    Senator Tom Butler, Huntsville
Senator Jabo Waggoner, Birmingham

Messages can be left for all of these Senate members by calling their Montgomery office at (334) 242-7800.

HB 705 was rushed out of the State Government Committee just before the Legislative Spring Break. The fight in the House is now with the House Rules Committee that decides what Legislation will be considered in what order by the full House. Members of the Rules Committee must be contacted and asked to keep this legislation off the House floor.

Members of the House Rules Committee are:
Chairman Jack Venable, Tallassee                         Joe Ford, Gadsden
Ron Johnson, Sylacauga                                         Barbara Boyd, Anniston
James Buskey, Mobile                                             Jim Carns, Birmingham
Bill Clark, Mobile                                                     Johnny Ford, Tuskegee
Ken Guin, Carbon Hill                                              Albert Hall, Gurley
Perry Hooper, Montgomery                                      Arthur Payne, Birmingham
J. E. Turner, Citronelle                                            Jimmy Warren, Castleberry
Skippy White, Brewton

House member messages can be delivered to (334) 242-7600.

The AIIA has been joined in this legislative battle by the Associated General Contractors, Business Council of Alabama, Associated Builders and Contractors, The National Federation of Independent Business, Alabama Road Builders Association and the National Association of Surety Bond Producers.