Alabama Legislative Session Holds No Surprises
The 2000 legislative session has held no big surprises so far for the insurance industry.  Very little insurance legislation that wasn’t anticipated has been introduced this session.
*House Bill 134 introduced by Rep. Mike Hubbard revising mandatory automobile insurance legislation, to no one’s surprise, quickly passed out of the House and now awaits Senate action. 

*Senate Bill 159 and House Bill 317 call for the removal of all references to the counter signature requirements on Property & Casualty policies.  Neither bill is in position now to be considered by the full House or Senate.

*A bit of controversy was stirred by Senate Bill 242 introduced by Senator Lowell Barron.  This bill would create a cabinet level position for a consumers’ insurance advocate.  This new position would have the ability to subpoena and actually establish a dual regulatory structure on the sales of insurance products in the state.  This bill will not be considered by the Senate Banking and Insurance Committee before March 1, 2000.  This is all the more reason for Independent Agents to join us on February 29th at our Legislative Conference in Montgomery. 

Legislative Conference Offers Opportunity to Meet Legislators
AIIA’s Annual Legislative Conference provides an excellent forum for Independent Agents to meet with legislators and discuss bills of importance to our industry.  The conference is being held at the Embassy Suites in Montgomery on February 29 - March 1st and will feature speakers from the Dept. of Insurance, Public Safety and Industrial Relations, as well as Attorney General Bill Pryor, Sen. George Clay, Rep. Mike Hubbard, and Bill O’Connor from the BCA.  In addition, we will have Supreme Court Justices Harold See and Champ Lyons, as well as Civil Appeals Court Judge John Crawley as our special guests.  This is the last call for registration, so get yours in right away.  You may register online at www.aiia.org.  For more information, contact Laura Barnett at AIIA (205) 326-4129.

AIIA Office Flooded With Calls
The AIIA office has recently been flooded with calls from members with concerns and complaints about delays in receiving agent and corporate licenses.  Sources in the Department of Insurance say the delays are due to inadequate staffing created by the hiring freeze on new state employees by Gov. Siegalman.  If you or your agency have experienced similar problems, please write to us at 2918 Clairmont Avenue, Birmingham, AL 35205 and give details of the problems you’ve experienced.  We intend to make the Governor’s office aware of the problems in hopes that he will issue an executive order to help free up the log jam.

Rackley Adds Travelers
Rackley Systems is proud to announce that they are adding Travelers to their list of companies supported by the commercial rating software.  Working in conjunction with the company, they have added Travelers Commercial Property and General Liability lines in the state of Alabama.  As Mark Stroop, Exec. V.P. of Rackley Systems, Inc. pointed out, “The relationships that we have forged with top carriers like Travelers have helped to place Rackley at the forefront of commercial rating.”  Henry Furtick of Travelers views Rackley Systems as the nation’s leading provider of desktop commercial rating applications and agrees that Rackley has proven to be both accurate and reliable.  Rackley Systems is dedicated to providing agents with the most comprehensive rating product on the market today.  With rating now in all 50 states and integration with most major management systems, Rackley is an industry leader committed to meeting the needs of its clients through the design and implementation of quality products backed by exceptional customer service.  For more information on the products and services offered by Rackley Systems call (800) 874-2616 ext. 144 email the sales dept at rsales@rackley.com.   You could also visit their web site at www.rackley.com

AIIA Continues to Seek Email Addresses
AIIA is making some headway in it’s effort to move towards email communications which will save a tremendous amount of time and money.  However, our list is not anywhere near complete.  If you would like to be added our list, please email your request to Kelly Hood at khood@aiia.org

March CE Opportunities
CISR Marathon week is just around the corner!  Please note each class is approved for 8 hours of CE.  Only those already holding the CISR designation may attend the Advanced Lecture Series. Remember sign up today, class size is limited.

March 6 - CISR-Agency Operations, Birmingham 
March 7 - CISR-Commercial Casualty, Birmingham 
March 8 - CISR-Personal Residential, Birmingham
March 9 - CISR-Commercial Property, Birmingham
March 10 - CISR-Advanced Lecture Series, Birmingham

March also brings two P&C Licensing Schools to be held in Mobile and Montgomery. And we will also offer E&O seminars in Montgomery and Huntsville during this month.  You may now register for any education class online, www.aiia.org. For any additional information call our office today at (205) 326-4129.

Nationwide Named Preferred Insurer for Sonic Automotive Customers
Sonic, which owns Tom Williams Automotive in Birmingham and is negotiating with other Alabama dealers, recently named Nationwide as its preferred automotive insurance provider.  Beginning February 1, 2000 the agreement makes all Sonic Automotive dealerships a one-stop location for customers purchasing automobiles and insurance.  Sonic Automotive owns and operates 106 dealerships countrywide and is the second-largest automotive retail group in the United States.

Joe Skipper Named ‘99 Citizen of the Year
Joe Skipper was recently named the 1999 Citizen of the Year by Jackson Civitan Club.  Skipper, with Skipper Insurance Agency in Jackson, AL, has long been involved in a number of civic organizations.  Presently he is serving as chairman of the Downtown Revitalization Committee of the Jackson Chamber of Commerce.  Skipper also currently serves on the Chamber Board and the Kimbell House Committee.  He has also served as chairman of the Chamber’s Education Committee and the Chamber of Commerce’s Fourth School Committee.  Skipper’s dedication to the community is outstanding and AIIA commends him on receiving this honor.  Congratulations!

IIAA Urges Repeal of Installment Sales Ban
IIAA hopes that legislation unveiled last week will overturn a recently enacted law that prohibits the use of the installment sales method by accrual-basis taxpayers.  The legislation was introduced by Reps. Wally Herger (R-CA), John Tanner (D-TN) and John Sweeney (R-NY) during a press conference on Capitol Hill in which IIAA participated.  The effect of the current installment sales ban forces sellers to pay all capital gains taxes up front instead of deferring the tax payments until the time the money actually is received in following years.  This proposal to overturn the ban is the second of its kind since Congress returned to Washington in January.  IIAA in a joint effort with NFIB, the U.S. Chamber of Commerce, Small Business Legislative Council and other small business groups is calling on Congress to overturn the ban which is decreasing the sales of thousands of small businesses, including independent agencies.

IIAA and ACLI Form Life Council
IIAA and the American Council of Life Insurers (ACLI) have joined forces, combining resources in order to form the Life Council, a coalition that will focus on promoting the legislative and regulatory agenda of life insurers and agents.  The agreement means the energy of IIAA’s state associations and a grassroots network of 300,000 agents, brokers and their employees, and a cadre of state association professionals and lobbyists in the state capitols can be combined with the weight of 400 member companies and network of lobbyists, attorneys, and legislative directors at the ACLI.

IIAA Board Adopts Commercial Lines Reform Policy
IIAA’s Board has approved a policy statement that endorses the role of the competitive marketplace as the most effective and efficient regulator of commercial lines rates, but allows state regulators to act in limited circumstances.  A regulator may intervene if a market or line of insurance is non-competitive or when a rate is excessive, inadequate, unfairly discriminatory, or unreasonably low resulting in diminished competition or a monopoly.  The policy is a general IIAA position and is not intended to supplant individual IIAA state association policies.  It is designed to provide guidance to state associations.  In the new policy, IIAA notes that “state insurance laws and regulations must continue to evolve if they are to best serve consumers in the future.”

2000 Alabama Legislative Session Underway
The 2000 legislative session cranked up this week.  Of interest to insurance agents are the following:
*House Bill 134, the revised mandatory automobile insurance legislation, passed out of committee.  The revised bill introduced by Rep. Mike Hubbard from Auburn would pose less of a paper burden on insurance companies and agents, as well as increasing  non-compliance penalties.  The bill has industrywide agreement.  Consideration in the House of Representatives could be as early as Tuesday, February 8th.

*Alabama State Senator Targets ALFA, Allstate and State Farm Credits - Lowell Barron, the highest-ranking Democrat in the State Senate, proposes to end tax benefits tied to P&C companies’ Alabama real-estate holdings.  For 1998, tax bills for Alfa were reduced by $7 million for one Alfa mutual company and more than $300,000 for another.  Tax expense was reduced by nearly $5 million for State Farm Mutual Auto Ins. Co. of Bloomington, IL and by nearly $1 million for Allstate Corp., Northbrook, IL which rank as the state’s first-and-third largest P&C insurers.  Alfa contends that the benefits are a reward for its commitment to Alabama.  Mr. Barron claims they are a “tax dodge.”  He suggests the more than $13 million in forgone revenue from the three insurers could go to help the state’s struggling farmers.  Alfa has hired Ryan deGraffenreid, a former state senator and longtime State Farm lobbyist, to help.

*It is anticipated that the American Insurance Association will seek passage of legislation to end the counter signature law.  More details will come your way when the bill is introduced.

Legislative Conference Is Just Around the Bend
The 13th Annual AIIA Legislative Conference being held at the Embassy Suites in Montgomery on February 29 - March 1st is creeping up on us.  Featured speakers will include those from the Dept. of Insurance, Public Safety and Industrial Relations, as well as Attorney General Bill Pryor, Sen. George Clay, Rep. Mike Hubbard, and Bill O’Connor from the BCA, this conference is sure to be a great one!  In addition, we will have Supreme Court Justices Harold See and Champ Lyons, as well as Civil Appeals Court Judge John Crawley as our special guests.  Registration forms are already out, so be sure to register right away.  You may also register online at www.aiia.org.  For more information, contact Laura Barnett at AIIA (205) 326-4129.

Justice Harold See Outraises Opponents
Justice Harold See raised more campaign money during 1999 for his campaign for the Republican nomination for chief justice than the four other contenders in the race combined.  “It’s clear that Alabamians want their next chief justice to be the best judge for the job, “ said Kelley McCullough, spokeswoman for See’s campaign.  “The widespread support from all across the state in this campaign report is a testament of the great respect Justice See has earned for his conservative record on the Alabama Supreme Court.”

Alabama Recognized at National Board Meeting
AIIA received special recognition at last week’s IIAA National Board meeting for their InsurPac fundraising efforts.  We were one of only fourteen states to reach our goal last year and one of only five states that has consistently met their goal over the last five years. We owe special thanks to AIIA InsurPac Chairman John Kirkpatrick and all of those who were generous enough to support this important cause.

AIIA Education Dept Honored
Alabama’s Education Department was honored at the National Education Convocation with the L.P. McCord award.  This is the 4th year that we have received the award for our membership category.  “We are honored to receive the award.  We are pleased to be able to continue to offer the high caliber of education for our members and hope to be able to continue to do so in the future,” said Vic McCarley, AIIA Director of Education.

New Fax on Demand System Up and Running
AIIA has a new Fax-on-Demand System with all updated documents available to all members.  To access, please call toll free (877) 669-1872 and request item #15751 which is a list of all documents available through the system.  This system is more cost efficient for AIIA and will allow you to receive your faxes quicker than calling our office.  Give it a try Today!

Upcoming Educational Opportunities
Your AIIA Education Department will be offering the following classes in February.
 February 8th  CISR-Agency Operations   Montgomery
 February 9th  CISR-Agency Operations   Mobile
 February 10th  CISR-Agency Operations   Sheffield
 February 15th  Errors & Omissions   Mobile
 February 16th  Errors & Omissions   Dothan
 February 18th  Errors & Omissions   Birmingham
All CISR classes are approved for 8 hours of CE credit. E&O classes are approved for 6 hours of continuing education.  Remember you can now register for education classes online, www.aiia.org or call our office at (205) 326-4129 for any additional information.

Local Boards Elects New Officers
The Independent Insurance Agents of Huntsville just announced new officers who are as follows: President Wayne Parker of Parker & Parker Ins/dba American Insurance, Vice President Michael Vance of Hundley, Batts & Assoc., Secretary/Treasurer Harry Hepler of Valley Insurance Planning. 
The Birmingham Independent Insurance Agents just announced new officer who are as follows: President Sergie Kampakis of Mikos/Kampakis Insurance Services, Vice President Raymond Best of R.L. Best Insurance Agency, Inc., Secretary/Treasurer Carol Kirby of Kirby Insurance Agency and President-Elect Marian Washburn of Insurance Place of Birmingham.
The Independent Insurance Agents of Mobile just announced new officers who are as follows: President James M. Paulk, Jr.  of Willis Corroon of Mobile, Inc Services, Vice President Allen Ladd of Thames, Batre, Mattei, Beville & Ison, Secretary/Treasurer Carl Schneider of Schneider Insurance Agency.

E&O and Your Independence
If you purchase your E&O insurance from one of your major carriers, consider this.  The increasingly litigious world has driven a wedge between many agents and their companies.  Statistics show that first party suits against agents by their own carriers are on the rise.  The inherent conflict of interest, not to mention being both plaintiff and defendant on the same suit, should make agents uneasy. If you think that by having a long-standing, successful relationship with one of your major carriers that you’ll be taken care of if an E&O claim arises, you should think again.  If you would like more information on the IIAA sponsored E&O program through A++ Westport and how it can help protect your most valued asset - your independence - call AIIA today at (205) 326-4129.

Consumer Credit Report White Paper
IIAA has made a ‘white paper’ available about Consumer Credit Reports.  The 23-page paper from IIAA is entitled The Independent Agent & Consumer Credit History in Personal Lines Underwriting.  The paper includes the following topics: Insurance Scoring, Credit Scoring, Reliability of Scores, Regulations, Agency Benefits, Agency Hazards & Exposures, Compliance with Federal & States Statutes, ERC, Loss Control Measures, and Recommendations for Companies.  To receive a copy, call Schonna McKinney at 770-458-0093 x107 or fax your request with your mailing address to her at 770-458-8007.

AIIA Members Included in 1999 Best Practices Study Update
According to Reagan & Associates, the following states participated and have data included in the 1999 Best Practices Study Update: The Starke Agency, Inc., Thompson Insurance, Inc., Thames Batre Mattei Beville & Ison, and McGriff, Seibels & Williams, Inc.  The Update is available on the we sites of both IIAA’s website at www.independentagent.com and on Reagan & Associates’ at www.reagan-assoc.com by clicking on the Research button. 

Cincinnati Sizzles
Independent agents and brokers ranked the Cincinnati Insurance Companies as the top writer for commercial P&C insurance for 1999, according to surveys by Crittenden’s Insurance Markets’ Property/Casualty Ratings.  Agents and brokers rated companies on accessibility, response, flexibility, timeliness, pricing, competence and payment.

Hartford Gains Fed OK To Operate Bank
The Hartford Financial Services Group has received approval from the Office of Thrit Supervision for a federal savings bank that will engage in trust activities on a national basis.  The Hartford Bank, which is expected to begin operations by mid-year, will offer both institutional and personal trust services, including charitable remainder trusts, irrevocable life insurance trusts and investment management accounts.  The carrier will reportedly offer the bank’s services through its traditional network of agents, brokers, and independent agents.

Employment Opportunities
Entry Level Producer - Opportunity to sell commercial lines for industry leader!  Base salary+ Lucrative Commission + Comprehensive Benefit Package -  All expenses paid -Advancement and growth potential.  Protected geographic territory.  Will sell premiums of $50K to $500K (workers comp, auto, property, general liability). For immediate consideration contact Tricia Mathes, Rowland Mountain & Associates, 404-325-2189, ext. 162 or email resume to tricia_mathes@rmasales.com.