Montgomery Agency Named Best in the Country

Six independent insurance agencies were named the best in the nation during the Second Annual Best Practices Symposium held last week. There was a winner for each revenue category and the 1.25 million- $2.5 million winner was AIIA Member, Thompson Insurance of Montgomery. George Thompson, CIC, of Thompson Insurance and AIIA Past President, was elated up on receiving the news. "Of course, I’m extremely proud of our accomplishment. I think we have a great agency and I have my entire staff to thank for that," said Thompson. His agency was selected from the Top 180 agencies whose were contained in the 1998 Best Practices Study. Congratulations on being the absolute "Best of the Best"!

Insurance Department Hid Money

The Birmingham News reported last week that the Alabama Department of Insurance hid money from failed insurance companies and bought luxury furniture and other questionable items, according to an examiner’s report that has been submitted to the Alabama Ethics Commission. The report issued by the Alabama Department of Examiners covers the activities of the Insurance Department from 1988 to 1998. The report outlines misuse of insurance company money, sweetheart deals to employees and their families, and improper or non-existent accounting procedures. Among the findings:

• The receivership division used accounting practices that hid improper use of money left behind by insolvent insurers.
• Numerous instances of "questionable spending" including $4,632 for designer leather furniture charged to the estates of the insolvent insurers. Smaller amounts went for alcoholic beverages, memberships to Montgomery area wholesale shopping outlets and parties and gifts for retiring employees.
• Sale of insurance company assets to Insurance Department employees and their families. The goods included cars and computers.
• The division’s standards for hiring and pay violated state policy. The division only had written employment applications for its two most senior employees.
• The receivership division awarded a former chief $2,293 in severance pay without the required court approval. The income was also never reported to the Internal Revenue Service nor the Alabama Department of Revenue.
• The division did not periodically audit insolvent insurers, leaving no information to track claims payment and disposal of assets.

AIIA Legislative Conference Will Host New Governor

The AIIA Legislative Conference in Montgomery, March 23-24 will host newly elected Governor Don Seigelman as one of its speakers. In addition to the Governor, attendees will have the opportunity to hear from Lt. Gov. Steve Windom and newly elected Speaker of the House, Seth Hammett. To receive a registration form for this conference, please call the AIIA Office at (205) 326-4129.

RealtySouth Launches Insurance Division

RealtySouth, the newly merged company of Johnson-Rast & Hays and Brigham-Williams Realtors, is launching an insurance division. RealtySouth Insurance Services is attempting to bring one stop shopping to the home buying business. They will also launch an initiative to write automobile policies in addition to homeowners insurance. This division adds to the already existing mortgage and title services that RealtySouth currently offers. RealtySouth is currently placing business with Chubb and CNA.

New Assignments in the State Legislature

The new committee assignments have been made and the following legislators are on the Banking and Insurance Committees:
 

Senate Banking & Insurance Committee	House Banking & Insurance Committee
Bobby Denton, Chair Larry Means Roger Bedford  Harri Anne Smith Rodger Smitherman George Clay  Tom Butler (Vice Chair Vacant)	Lesley Vance, Chair Mike Hill, Vice Chair James Buskey Steve Clouse Joe Ford Betty Carol Graham Albert Hall Jim Haney	Thad McClammy Johnny Mack Morrow Oliver Robinson William Thigpen Elwyn Thomas James Thomas Greg Wren

IIAA Offers Contract Review Online

The Big "I" Legal Advocacy Group reviews of the following insurance company contracts are now available online at www.independentagent.com: Allstate Insurance Company Agency Agreement, CGU Agency Agreement, Fireman’s Fund Commercial Insurance Profit sharing Agreement, Lake States Insurance Company Agency Agreement, Kemper Insurance Company Incentive Plus Contract, Reliance National Program Agency Agreement, Travelers Select Policyholder Service Center Agreement and Travelers Property Casualty Commercial Lines Performance Plus Agreement. To access, you need to go into the "Members Only" section and use your agency ID number, which can be obtained by contacting info@iiaa.org.

Underwriting Cycle is Dead According to A.M. Best

The U.S. property casualty industry’s underwriting cycle is a thing of the past, having been replaced by a "permanent down market" characterized by excess supply and weakened demand for traditional insurance products, according to A.M. Best Company. This was released in their recent report. Other predictions listed were:

• A sharp drop in the industry’s operating return on equity.
• Flat to declining personal auto premium rates.
• Increased emphasis on generating service fees.
• Limited financial and solvency impact on the industry from Y2K computer related problems, however, some companies will be saddled with heavy defense costs.

Member companies of American International Group (AIG) will be offering homeowners insurance in 30 states through InsWeb, a leading online insurance marketplace. State Farm is also currently offering homeowners through InsWeb. AIG currently provides quotes on personal automobile policies in 38 states via InsWeb.

New Producers

Do you have a new producer in your office? The Young Agents Committee has developed a new producer packet that contains information on many products and services, as well as promotions specifically aimed at Young Agents. To receive a packet, please call Alison Decker at the AIIA Office (205) 326-4129.

Welcome Aboard!

AIIA wishes to welcome their newest members and Associate members:

Alasure Insurance Agency, Southerland Insurance Agency, CNA Personal Insurance Company, MS Casualty Company, AmComp Insurance Company and Coastal Insurance Group.