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 just around the bend.  Featuring 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, 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.

Aspiring Politicos Attend IIAA Boot Camp
AIIA President Quinton Hanson, CIC with Associated Insurors and Rux Bentley, CIC with the Rux Carter Agency were among the twenty-five insurance professionals thinking of running for federal, state or local public office who attended the second IIAA/Future One Insurance Campaign Institute last week in Washington, D.C.  The “boot camp” is designed to arm agents and other industry professionals with the necessary skills to run a successful campaign for public office. “The campaign school was very educational and was an overall great experience.  The panel of political professionals was incredible!  It is a definite must for anyone who is thinking of running for office,” said Rux Bentley.  The day-and-a-half campaign school covered campaign research, message delivery and communicating with voters, paid media and campaign advertising and using e-mail and the Internet in a campaign. 

Alabama Reaches 1999 InsurPac Goals
Alabama was one of the sixteen states that reached or exceeded their goals last year for InsurPac contributions.  All total, over $335,000 was raised for InsurPac from independent agents all over the country.  Among the many generous contributors, we’d like to recognize several whose contribution level designated them Founders Club status: Mark Calhoun, CIC, John Duckworth, Jr. CIC, Malcolm Dunaway, CIC, Joe Fuller, Carol Hunt, John Kirkpatrick, CIC, Frank Millsaps, CIC, Patrick Owens, King Pickett, William T. Pugh, George Thompson, III, CIC, Arthur Williams, CIC, AIC, James A. Williams, Lisa Worley, CIC, ARM, and Cecil Yarbrough, CIC.  We salute AIIA InsurPac Chairman John Kirkpatrick for all of his hard work in making this happen.

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.

PIA Cancels Annual Meeting
The National Association of Professional Insurance Agents has canceled its annual meeting that had been planned for September 8-10, 2000 in New Orleans in an effort to better align itself with its members’ priorities.  According to the group, PIA has no plans to reinstate the convention in 2001 or subsequent years.

More States Reach Info Sharing Agreement With OCC
Insurance Departments from the District of Columbia, Illinois, Iowa and Mississippi recently joined 19 other states that have reached agreements with the Office of the Comptroller of the Currency (OCC) regarding information sharing.   Under the agreements, when a consumer complains about an insurance product sold by a national bank, the OCC will send a copy of the complaint to the appropriate state insurance department.  In addition, the states will forward a copy of any complaint they receive about national banks to the OCC.  The agreements effectively require the state and federal regulators to communicate on matters of common interest.

Reader’s Digest & AIG Form New Alliance
The Reader’s Digest Association announced last week the new alliance with member companies of American International Group (AIG).  The alliance stems from Reader’s Digest’s expansion into financial services as part of its growth strategy to leverage its brand, direct marketing expertise and consumer database.  Under the alliance, AIG companies will contact Reader’s Digest customers with the opportunity to buy automobile and homeowners insurance and home warranty products, as well as personal liability insurance.

Best Says Rate Increases Likely
According to A.M. Best Co., last year’s natural disasters will likely lead to insurance and reinsurance rate increases.  As a result of the compounding effect of the international catastrophes in 1999 ranging from earthquakes in Turkey, hurricanes in the United States and winter storms throughout northern Europe combined with the prediction of a continued rise in natural catastrophes, notable rate increases are expected to be seen.

Correction Notice
In the January 11, 2000 edition of the AIIA Newsline, we reported that The Counselors Academy of the Public Relations Society of America had recently named the Birmingham branch of Burns & Wilcox Ltd. the Branch of the Year for Division II and Bob Whitworth the Underwriter/Broker of the Year.  It was actually the home office of Burns & Wilcox that awarded the Alabama office the honors.  We apologize for any confusion this may have caused.

SAM’S Club and CISA Sign Two-year Extension
Consumer Insurance Services of America, Inc. (CISA) has signed a two-year contract extension of its marketing alliance with SAM’S Club.  The agreement calls for CISA to continue providing a wide range of products from its GROUPadvantage insurance program to the SAM’S Club consumer and commercial membership on an expanded basis and ultimately nationwide.  Consumer Insurance, the distribution division of Insurance Holdings of America, Inc. (IHA) currently has  GROUPadvantage kiosks, staffed by local independent insurance professionals, operating in 110 SAM’S Clubs in 10 states.  By early 2001, Consumer Insurance plans to have a GROUPadvantage kiosk offering property and casualty, commercial and life insurance products, as well as financial services, in every SAM’S Club.

IIAA White Paper on Financial Services Modernization Now Available
The White Paper analysis of the impact of the Financial Services Modernization Act on agents and state insurance regulation is now available to all Big ‘I’ members through the members-only area of www.independentagent.com or by calling IIAA’s Fax-on-Demand Service at (800) 282-9183 and selecting document #105.

Employment Opportunities
Montgomery Insurance Company has the following positions available.  Please send resumes to: Human Resources, P.O. Box 468, Montgomery, AL 36103.
    Experienced Underwriter - 10 Plus years experience quoting P&C and Workers Comp.
    Underwriter Assistant - AL P&C licence required and 1-2 years underwriting Workers Comp.
    Claims Adjuster - 1-3 years loss time experience and current AL Certification.
    Worker’s Comp Technical Assistant - Entry level clerical position answering multi-line phone,    data entry, filing & typing.
    Accounts Receivable Clerk - Accounting degree required plus 3-5 years general accounting skills, A/R and commission processing.

Birmingham area agency seeks Commercial Lines Agent - please call Bill Young at (800) 752-1172 for more information.

New Agency Software Now Available
The new version of MasterManager Agency Management Software can be viewed at www.mastermanager.com.  This version includes e-mail, speed scan and a backup program. 

Many Americans Unprepared for Disaster
A new survey by IIAA found that half of all Americans (including 30 % of those who had experienced and survived one) don’t believe they will be victims of a major natural disaster over the next 10 years and, therefore, are doing nothing to prepare for one. The survey also found that about one-third of Americans aren’t sure if they have the right insurance to protect themselves and their property in the event of a natural disaster.  Members can view the entire survey in the consumer area of www.independentagent.com or by calling (800) 282-9183 and selecting item #121.

Study Finds Agency Revenue Growth
A recent study by The Academy of Producer Insurance Studies of more than 470 agencies examining productivity standards, income and average expense averages, balance sheet ratios and agency profile information found that the nation’s successful independent agencies experienced an 8 percent annual average growth in revenues.  Among the new findings, 73 percent of agencies surveyed reported use of the Internet in some capacity.  In addition, they found that the average revenue per person is $82,267 and the average commission size of a commercial account is $761.  The survey “Growth and Performance Standards,” can be purchased for $39 by calling the Academy at (800)526-2777 or visit www.scic.com/alliance/academy
 
 

Alabama Agents Beware! 
You may become an integral part of an insurance con.  Here’s how it’s been working.  A person calls your agency and identifies himself as Pat Thomas (or another common name).  He wants to buy insurance liability only on his 1992 Malibu.  He says he is just in the process of moving to your city (he may or may not give you a local address).  About 10 days after coverage is bound, he calls to advise he was in an “at fault” accident on the East Coast.  The person hit (probably a woman and possibly a Sue or Cindy Hill) calls an hour later and volunteers pictures of the damaged vehicle and/or a location where the adjuster can inspect the vehicle (they stay away from any personal contact).  You report the loss.  The company pays the claim.  It’s a con and has been working recently in Birmingham.  The National Insurance Crime Bureau also reports the use of commercial mail boxes in Birmingham.  But, they could be on the move.  If you suspect anything, call Special Agent, Vern Foughty (515) 256-0989 at the NICB or email him at vfoughty@aol.com or fraud@comm6.state.ia.us

Insurance Industry Not Bit By Y2K Bug
“Year 2000 policyholders should not be concerned about receiving benefits under their insurance policies as the Year 2000 begins because of Y2K related problems,” said Jose Montemayor, Vice Chair of the NAIC Y2K Industry Preparedness Task Force.  The insurance industry reported no significant Year 2000 rollover problems, according to preliminary information from a National Association of Insurance Commissioners Year 2000 Rollover Survey.  Additionally, the National Association of Mutual Insurance Companies said the vast majority of its more than 1,200 member companies reported no Y2K related computer problems.  Less than 15 of the nearly 400 companies that responded to a NAMIC poll reported experiencing some minor problems.  Most of those problems were resolved by resetting a date.

MAIA Not To Continue Affiliation With PIA
At its December meeting, the Board of Directors of the Massachusetts Association of Insurance Agents (MAIA) voted not to continue the association’s affiliation with the National Association of Professional Insurance Agents (PIA) effective January 1, 2000.  MAIA will continue its affiliation with the Independent Insurance Agents of America (IIAA).  In commenting on the decision not to continue affiliation with PIA, MAIA President Bruce Cochrane, CIC, stated, “Since the consolidation of the PIA and IIA state associations in Massachusetts in 1992, MAIA has annually evaluated it national affiliations with PIA and IIAA.  However, when we conducted our evaluations this year, it became evident that the time, efforts and fiscal resources required to maintain MAIA’s affiliation with PIA, could be best utilized on behalf of MAIA members on the state level.  Unfortunately, the resources necessary to continue MAIA’s PIA affiliation could not be justified when weighed against the value received.”

IIA of Utah Merges with PIA of Utah
The Independent Insurance Agents of Utah (IIAU) has unanimously voted to merge with the Professional Insurance Agents of Utah (PIAU).  The new organization will be named the Utah Association of Independent Insurance Agents and will be nationally affiliated with both IIAA and PIA.  Fourteen past presidents of the two organizations joined IIAU’s agency members, officers and directors in attendance at the IIAU membership meeting.  The PIAU had previously voted favorably to merge.  The two offices will be combined immediately and merger details will be finalized during the first quarter of 2000.  Utah marks the 18th state in which the IIAA and PIA affiliates have merged.  Nine of those consolidated states represent both IIAA and PIA; nine are affiliated only with IIAA.  For more information, contact Steven Baugh at (801) 269-1200.

St. Paul Finds Buyer For Nonstandard Auto
The St. Paul Companies says it is selling its nonstandard auto insurance business to The Prudential for $200 million in cash. Under the terms of the agreement, Prudential will purchase the nonstandard auto insurance business marketed under the Victoria Financial and Titan Auto brands.  The purchase includes the legal entities Victoria, which offers nonstandard auto insurance in New York, and Titan Groups and their subsidiaries.  According to St. Paul executives, sale proceeds will be used for general corporate purposes, which may include strategic acquisitions, expansion of specialty product offerings and continuation of The St. Paul’s share repurchase program.  The transaction is expected to close in the second quarter of this year subject to regulatory approvals.

Mark Your Calendars!
Plans are already underway for the AIIA 2000 Legislative Conference to be held in Montgomery on February 29 - March 1, 2000.  Registration forms are going out this week, so be on the lookout for them.  For more information, call Laura Barnett at (205) 326-4129.

President Elect Fuller Becomes Grandpa
Congratulations to Joe Fuller on the arrival of his granddaughter Anna Lauren Carmichael!  She was born Monday, Jan. 10 & is doing great! 
Local Board Elects New Officers
The Independent Insurance Agents of Montgomery just announced new officers for the period January to December 2000.  The new officers are as follows: President Don Whitecotton of The Whitecotton Agency, Vice President James Barber of Turner/Scott, Carper, Aman, Secretary/Treasurer Caro West of Colonial Insurance Agency.  The board members are Don Harris of Aronov Insurance Agency, Tommy McQueen of Frederick Agency, Reuben Thornton of Thornton-Haas Agency and Carl Bruton of the Frederick Agency.

CISR Elects New Board Officers
The Society of CISR has announced the selection of new executive officers to its Board of Governors.  Selected as the Board’s new Vice Chairman was Mickie Edwards, CIC, CISR, AAI, CPIW and Vice President of Realty Insurance Agency, Inc. in Homewood.  Congratulations on this outstanding accomplishment!

Travelers Among Reliance Buyers
Reuters news service recently reported that Travelers Property Casualty Corp., St. Paul Co and one other unnamed insurance company are the most likely buyers of Reliance Group Holdings Inc.  According to unnamed sources cited by Reuters, it is believed the three companies have met with bankers Bear Stearns and Donaldson, Lufkin & Jenrette, which Reliance hired in November as strategic advisers to discuss a possible deal. The sources say they expect a sale of Reliance - or a large third party investment- to be announced before the end of the first quarter of 2000 in order to avoid a rating downgrade on concerns about the company’s debt and exposure to uncollectible reinsurance.

February CE Opportunities
-We have a few slots left in the CISR Personal Auto classes on January 13th  in Mobile and January 18th in Huntsville.
-Commercial Property will be the first CIC Institute offered in 2000. There are still openings left for this class to be held Feb. 2-4, 2000. Please note all participants must now present a valid photo ID before admission to any Society program. 
-We will also be offering CISR Agency Operations in Montgomery, Mobile and Sheffield on February 8,9 and 10 respectively. CISR courses are approved for 8 hours of CE credit. 
-Errors and Omissions will also be conducted on February 15, 16 and 18th respectively in Mobile, Dothan and Birmingham. Please check our website or call for more information on dates and location. 
-Our first ever school for Commercial Lines Producers has a few spots remaining. This will be ten days of intense classroom training by three top notch professionals. This class is open to members only and limited to 20 participants.
-Remember you can now register for education classes online, www.aiia.org. For any additional information call our office today at (205) 326-4129.

Burns & Wilcox Named Branch of the Year
The Counselors Academy of the Public Relations Society of America recently named the Birmingham branch of Burns & Wilcox Ltd. the Branch of the Year for Division II and Bob Whitworth the Underwriter/Broker of the Year.  Congratulations on this achievement!

Progressive Reports Losses
Progressive Corp. reported it would lose money on underwriting for the fourth quarter and that earnings would fall below analysts’ estimates.  The company will increase loss reserves by $33 million to cover losses.  Hurricane Irene caused a large percentage of those losses.  The company earned a profit in the fourth quarter of last year.

Big ‘I’ Focuses on Ohio Casualty Agreement
IIAA’s Legal Advocacy Group has completed its review of the Ohio Casualty Group Agency Bonus Agreement.  Some provisions of concern are that the agreement contains a minimum premium volume requirement, and the agent will not receive a profit share in a given calendar year if the agent has not written business with the company prior to April 1 of that year.  For a copy of the review, contact Cathy Spencer at (703) 706-5403 or visit the Legal Advocacy page in the Virtual Big ‘I’ Village at www.independentagent.com

IIAA Has Blueprint for Electronic Commerce
Recognizing the need for independent agents to grab the opportunities offered by e-commerce but also agents’ confusion about how to best use technology - IIAA’s Agents Council for Technology (ACT) created its “Blueprint for Electronic Commerce”.  This comprehensive guide to new online technology and marketing is designed to introduce agents to the latest development in Internet base agency automation and the opportunities of electronic commerce.  The free Blueprint is available from IIAA on their Web site at www.independentagent.com or call AIIA at (205) 326-4129 to request one.

IIAA and National African-American Insurance Association Join Forces
IIAA has announced that is 2000 convention will be held jointly with the annual meeting of the National African-American Insurance Association and that the NAAIA Board will participate in the next year’s IIAA National Legislative Conference.  NAAIA will join the Big ‘I’ for its 105th Annual Convention October 28-November 1 at the Marriott World Center in Orlando.  For more information on NAAIA, contact Jerald Tillman at tillmaj@nationwide.com or visit their website at www.naaia.org