106th Annual Convention Set for June 13-15, 2002
Make your plans now to join “Herb & Friends” at AIIA’s 106th Annual Convention and Trade Show at the Sandestin Hilton. Our theme this year is “Choice Adds Value.” Your choice to attend this year’s convention will add value to your business and your personal life as you re-acquaint with old friends and meet new ones. Emails, phone calls and letters can only do so much. There is nothing like a smile, a handshake, a pat on the back and hearing a friendly voice say, “It’s so good to see you.” In these hard times, it is more important than ever to hear how others are coping. You may find a solution to a problem you face or, even better, you may help someone else solve his or her problem. Be on the lookout for the convention brochure coming soon. There will be some additions to the program to add to the enjoyment for families. 

On the Hill: Information Solicited on Lack of Terror Cover
Lawmakers need specific information about the economic impact of unavailable or unaffordable terrorism insurance before they are likely to push ahead with legislation designed to provide a federal guarantee to cover losses stemming from terrorism, according to senior congressional staffers. The effort to gather information is complicated because businesses do not want to make public the fact that they lack such coverage. “Nobody in this country wants to admit ‘I don’t have terrorism coverage’,” said Alex Sternhall, staff director for the Senate Banking Committee’s Housing and Urban Affairs’ Securities and Investment Subcommittee. Wayne Abernathy, minority staff director for the Senate Banking Committee, recommended that those businesses that cannot get coverage contact their lawmakers – preferably when they return to their home districts – to let legislators know how the lack of coverage has had a direct effect on the local economy. He also suggested that businesses contact their regional Federal Reserve Banks – which prepare the so-called “beige books” on economic activity – to describe economic developments that have not taken place due to a lack of insurance. The House passed a terrorism insurance bill in November; no similar measure has been voted on in the Senate.

Market News: Agents and Agency Companies Increase Market Share
A study of year 2000 insurance marketplace results by IIAA finds that the agency system continues to grow market share in both commercial and personal lines. The study – IIAA Industry Market Share Report Calendar Year 2000 – also found that agency companies are once again proved they can distribute insurance just as effectively as companies using other distribution systems. “IIAA’s comparative study shows that the agency system is making considerable inroads into the commercial and personal lines marketplaces at the expense of the direct-writer and captive-agency insurers,” says IIAA CEO Bob Rusbuldt. “We continue to promote diversification into personal lines to position the agency system for the future and to serve as a new profit source for both agents and companies.” Reversing the trend of earlier years, commercial lines showed a growth of seven percent in direct written premium by independent agents and brokers to $145.9 billion, while personal lines grew 2.5 percent to $156.6 billion. Homeowners’ policies primarily fueled the growth in personal lines, expanding seven percent to $34.5 billion. Independent agents and brokers continued their domination of commercial lines, controlling 73.25 percent of this segment. Captive-agent writers lost nearly one percent of market share, falling to 25.29 percent.

IIAA’s National Legislative Conference, April 10-12
The insurance industry’s largest and most effective legislative gathering will be held at the Capital Hilton Hotel in downtown Washington D.C. Highlights will include an in-depth issues briefing session and appearances by numerous high-profile speakers including House Financial Services Committee Chairman Mike Oxley (R-Ohio). For registration information, go to www.independentagent.com to download forms, or call Tabitha Gass at (800) 221-7917.
Attention State Auto Agents: State Auto is offering 2000 extra points toward the Majestic Voyage Incentive Trip for registering and attending the National Legislative Conference. Proof of attendance is required, contact Robyn Harper for more information at (614) 464-5200. 

Big I Effort Leads to CHOICEPOINT Decision To End Sales of Agent-Owned Data
Following a January 9, 2002, meeting with IIAA officials, ChoicePoint backed down from their earlier practice of selling supposedly confidential information, such as expiration dates, to others in various data bases. The issue surfaced when a Big I agent bought a prospect list from ChoicePoint and realized that his clients were on that list – complete with proprietary information. The ChoicePoint decision, voiced January 14 in a letter to IIAA, promises to purge dates originating from independent agents. ChoicePoint offers direct marketing and consumer lead generation services to insurance companies and agents, among other services.

Attention Office Supply Managers!
BE OUR GUEST for BREAKFAST Friday, March 1, 2002, at 9:00 am at AIIA Headquarters! Join Office Depot Account Manager Mary Allen to find out how to save 3% off of every product purchase from Office Depot this program works. She will be on hand to show you how the program works, how to sign your office up and to show you how to save time when ordering office supplies. A product specialist will demonstrate the newest, innovative products. Door prizes and goodies will be given away! Seats are limited; please email Alison Ray at aray@aiia.org if interested. 

IIAA Adopts Policy Position on Insurance Regulation Reform
The IIAA Board of Directors approved an updated policy position on insurance regulation. It advocates use of federal tools to foster uniformity and strongly opposes direct federal oversight of insurance, now regulated at the state level. Some areas where a federal legislative framework can be helpful include producer licensing, privacy laws, speed-to-market, and uniform company solvency oversight. The Association rejects creation of a U.S. agency to regulate insurance such as the one envisioned by New York Senator Charles Schumer (D).

Burns & Wilcox Ltd. Announces Acquisition of Alabama-Based Van American Insurance Services, Inc.
Building on several successful acquisitions made during 2002 & 2001, and in support of its objective to remain the largest independent specialty insurance wholesaler and MGA in North America, Burns & Wilcox has acquired the Birmingham based MGA Van American Insurance Services, Inc. Fourteen Van American employees will be retained by Burns & Wilcox, and they will relocate to their existing office at 265 Riverchase Parkway, Suite 100; Birmingham, Ala., 35244. “The acquisition will allow us to diversify, adding a significant amount of Employment Practices Liability and transportation business to what we already have in the Southeast as well as expanding our personal lines offerings,” said Burns & Wilcox Chairman and President Alan Kaufman.

Trusted Choice Television Debut Coming Soon, March 11-15!
IIAA recently introduced the Trusted Choice marketing brand. The brand is designed to help agencies convey their value as trusted advisor to insurance consumers. The branding program will include national advertising and public relations, local marketing support and an informative Internet site. Through an aggressive marketing strategy, Trusted Choice agencies will communicate to consumers the unique value independent agencies offer: choice, customization and advocacy. Set your reminders to see Trusted Choice’s national advertisements that will run nationally March 11-15 during CNBC’s Hardball with Chris Matthews. All media will direct consumers to look for the Trusted Choice logo or visit www.TrustedChoice.com to find an agent through the program’s cutting-edge agency locator. 

Gold and Founder’s Club InsurPAC Recognition
Last year proved to be one of the most successful campaigns ever for InsurPAC, your national political action committee. Independent agents throughout the country collectively contributed $425,990 in 2001. An unprecedented total of 28 states met or exceeded their 2001 Goal, Alabama included. InsurPac sends a very special thank you to the following agents who chose to participate at the Founders Club level or higher: GOLD CLUB: Jerry Fowler, Elliot Free, Frank Millsaps; FOUNDER’S CLUB: Bob Arnold, Joseph Bennett, George Bentley, Rux Bentley, Mark F. Calhoun, Malcolm Dunaway; Joe E. Fuller, Quinton Hanson, Steve Hoggle, Joni Jo Holt, W. Mark Landers, Thomas W. Moore, Jim Murphree, C. King Pickett, Ron Scott, George W. Thompson, III, Arthur J. Williams, James A. Williams, Lisa Worley, Cecil Yarbrough.

AIIA and Infinity Announce the 2002 Antique Talladega “Mardi Gras Gala”
As part of Talladega Insurance Agency’s membership in the Infinity PASS Program (Providing Agents Service and Support), they have partnered with Infinity Insurance and AIIA to participate in this year’s MARDI GRAS GALA to be held in Talladega, Ala., on Saturday, February 9th. Participation includes entry into the Mardi Gras parade, and a reserved table at the evening dinner/gala. Infinity Insurance will provide moon pies, beads, and “quote cards” complete with agency information to be given away at the parade and dinner/gala. AIIA’s Director of Communications and Member Services Alison Ray will be in attendance should you like to meet her. Any interested agency may participate with Infinity in future community events through membership in Infinity’s PASS Program. Contact Todd Gober at (800) 782-2040, ext. 8131 for more information.
 

IIAA NEWS: President Ahart Addresses NAIC Commissioners
IIAA continues to support state insurance regulation and will be working closely with the National Association of Insurance Commissioners (NAIC) and other allies that support state regulation to modernize and streamline industry oversight, IIAA President Tom Ahart told state insurance regulators. “The IIAA supports state regulation. Nothing has changed in this regard, not even with the adoption of IIAA’s new pragmatic, middle-ground policy that aims to streamline and modernize the state regulatory system,” said Ahart. “Under the approach adopted by the Big ‘I’, which is also supported by other agent groups, Congress would play a role in achieving desired state reforms by utilizing the legislative tools at its disposal to bring about greater consistency across state lines and to enact needed reforms.” The approach could address a variety of issues that have been identified as areas in need of reform. Such a bill could address leading concerns as speed-to-market reform, agent and company licensing, market conduct exams, corporate governance, and many other areas. This approach does not require a one-size-fits-all response. Instead, it would allow the use of different legislative fixes on a tailored, issue-by-issue basis. Examples of how this approach might work include implementing reciprocity for agent licensing on a 50-state basis, using the NAIC model law as a guide; and limiting state reviews of rates and forms to 30 days to streamline the speed-to-market process for new insurance products. 

INDUSTRY NEWS: Progressive Survey Reveals What Auto Consumers Want From Their Agent
Consumers continue to expect an extremely high level of service from their insurance agent, according to a survey by Progressive Insurance, the country’s fourth-largest auto insurer and largest auto insurer through independent agents. Progressive surveyed auto insurance consumers across the country who purchased their policy from a local agent. Nearly all of them – 99% – said they want their agent to be responsive and available whenever needed. This overwhelming expectation for service was reflected throughout the survey results, which revealed that consumers want local availability, expert counsel and advice, the ability to handle all their insurance needs, and online access to their policy – all from their agent. Inside the numbers: 92% of respondents want their agent to have a local office where they can go for sales and services; 95% of the respondents said it was important their agent offers expert counsel; 92% said it is more important for their agent to handle all of their insurance needs; 75% of respondents expect their agent to call regularly to review insurance needs, while 45% want their agent to offer policy access via the Internet. 

Attention Office Supply Managers!
BE OUR GUEST for BREAKFAST Friday, March 1, 2002, at 9:00 am at AIIA Headquarters! Join Office Depot Account Manager Mary Allen to find out how to save 3% off of every product purchase from Office Depot. She will to demonstrate how the program works, how to sign your office up and how to save time when ordering office supplies. Door prizes and goodies will be given away! Seats are limited; please email Alison Ray at aray@aiia.org if interested.

AIIA Thanks our First STEP Sponsors!
The First STEP program (Sponsors Toward Enhancing Profitability) is your company’s first step to relationship building and to gaining exposure with independent agents in Alabama. Throughout the year, agents network, solve problems and generate ideas through AIIA’s many events. Every First STEP sponsor receives special recognition in The Alabama Independent, signage at all four conferences, a link on our website, direct communication with our membership and numerous other acknowledgments throughout the year, including discounts on booths at our Trade Show. If you have not signed up to be a First STEP sponsor, we will be contacting you about participating in this great opportunity to support your association while marketing your company to our agent members! Call Nancy Crowe to sign up at 205-326-4129!

THANK YOU SPONSORS!!
$10,000 PLATINUM – AIMS, Independent Finance, The Sheffield Fund, Rackley. 
$5,000 SILVER: National Security Fire & Casualty, Associated Insurance Administrators.
$2,500 BRONZE: Progressive, SAFECO, EMC Insurance, Small Business Underwriters, Covenant Management, Alabama Trucking Association WCSI Fund, Traveler’s Property/ Casualty Group.

Alabama Department of Insurance Seeks Information on Credit Scoring
The Alabama DOI issued letters and questionnaires to all Property and Casualty Insurers licensed in Alabama that required information on the use of credit information in rating. Questions concerned the use of consumer credit reports in rating insurance, how this information is used and what specific credit information is used. Also included were request for information about the credit-reporting agencies used, on whom the information was collected (all policy holders, selected sub-groups), and what information is disclosed to clients about the use of credit- or insurance-scoring. All information submitted in response to their bulletin in conjunction with a rate or rule filing will be classified as confidential and shall be kept under lock and key.

106th Annual Convention Set for June 13-15
Make your plans now to join “Herb & Friends” at AIIA’s 106th Annual Convention and Trade Show at the Sandestin Hilton. This year’s theme is “Choice Adds Value.” Your choice to attend this year’s convention will add value to your business and your personal life as you re-acquaint with old friends and meet new ones. In these hard times, it is more important than ever to hear how others are coping and managing their agencies and companies. You may find a solution to a problem you face or, even better, you may help someone else solve his or her problem. Be on the lookout for the convention brochure coming soon. There will be some additions to the program to add to the enjoyment for families.

Ohio Casualty Insurance and Summit Insurance Companies Join TrustedChoice
The Ohio Casualty Insurance Company and Summit Insurance Company (Rhode Island) are the newest partners in IIAA’s TrustedChoice branding initiative, which is set to debut its first television commercials later this month. “Ohio Casualty is a well-established and highly respected industry leader, and Summit Insurance is an up-and-coming new company with an exciting, vibrant vision for the future. Yet both companies bring to the partnership distinctive qualities that will enhance TrustedChoice in the eyes of consumers, agents and their company peers,” explains Ron Smith, agent chairman of IIAA’s Communications / Branding Task Force. “Both recognize that TrustedChoice will be a key factor to their future success.” 

AgentSecure Introduces Commercial Package Policies
AgentSecure, the Internet-based, commercial market access provider endorsed by AIIA and IIAA, now offers access to comprehensive Commercial Package Policies (CPP) for member agents. Customized packages can include commercial property, commercial general liability, business automobile, boiler and machinery, crime and inland marine among other coverages. With more than 200 business classes supported, many of the agents’ middle-market clients will find competitive programs to meet their needs. Member agents have access to a detailed CPP Class Risk Guide in the AgentSecure Agent Library. Top-rated, national carriers include Fireman’s Fund, The Hartford, AIG, and The St. Paul. More carriers will be added in the near future to cover more classes and products. The CPP program is a response to agents’ requests for items did not fit under the BOP classification limits. 

Mark Your Calendars For These Important Dates!
IIAA Legislative Conference, Washington, DC – April 10-12, 2002
AIIA 106th Annual Convention, Sandestin, FL – June 13-15, 2002
AIIA Young Agents Conference, Gulf Shores, AL – August 11-13, 2002
IIAA Annual Convention, New Orleans, LA – September 21-25, 2002
AIIA Small & Rural Conference, Birmingham, AL – October 22-23, 2002

Educational Opportunities – CISR – Agency Operations
This intermediate course details current agency operations with an emphasis on internal and external agency systems. 
This course is approved for 8 hours CE. Register online at www.aiia.org 
Tues. February 19 Embassy Suites Hotel – Montgomery, AL
Wed. February 20 Ramada Plaza  – Mobile, AL
Thurs. February 21 Ramada Inn – Sheffield, AL
Thurs. February 28 AIIA HQ – Birmingham, AL

Employment Opportunities
<CSR wanted. Commercial Lines Service Representative needed for independent insurance agency. Please call 205-823-2300 and ask for Michelle Hamm or Carolyn Head. 
<Seeking Agency to Purchase. Company representative with agency experience seeks agency perpetuation / purchase opportunity. All inquiries kept confidential. Resume provided upon requested. 205-529-8814.