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. 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 just 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 their problem. Be on the lookout for the convention brochure that will be mailed soon. There will be some additions to the program to add to the enjoyment for families. For entertainment, Jones & Company returns for Saturday afternoon’s Pool Party, and you will not want to miss “Big Daddy’s Band” at the Closing Banquet.

40 Insurance Companies, 8 HMO’s, and 4 Banks Failed in 2001
Despite the recession, only 40 insurance companies failed in 2001, a modest 5 percent increase over the 38 failures recorded in 2000, according to Weiss Ratings, Inc., a provider of ratings and analyses in the insurance industry. Property and Casualty companies represented a disproportionate 34 of the 40 insurance company failures, with the Reliance Group’s insolvency alone accounting for 12 of the P&C company failures. Conversely, the number of HMO failures declined for the second straight year, dropping 58 percent to 8 in 2001, from 19 in 2000. Likewise bank failures decreased by 43 percent from 7 to 4 in the same period. “The P&C insurers are the weakest right now. We saw P&C failures start to climb in 2000, and that trend has not changed,” commented Martin D. Weiss, Ph.D., chairman of Weiss Ratings. “Fortunately, the HMO industry appears to be stabilizing as companies return to profitability. And, despite an overall weakening in the banking industry, banks and thrifts are still generally well-capitalized thanks to the last 10 years of strong earnings.” 

Progressive, MetLife Auto & Home Join Trusted Choice
Now endorsed by AIIA’s Board of Directors! Progressive and MetLife Auto & Home are the newest company partners of Trusted Choice, the consumer marketing brand created by IIAA for independent agents. “Progressive is a powerhouse brand as well as a major agency company, so their commitment to Trusted Choice is very exciting,” says IIAA CEO bob Rusbuldt. “Together, we will communicate to consumers that the qualities they value most in an insurance provider - choice, customization and advocacy - can be found.” Ronald A. Smith, CPCU, chairman of IIAA’s Communications/ Branding Task Force comments, “Working together is the best opportunity we have to effect significant change in consumer perception and market share. Over time, when consumers think insurance, they will seek a Trusted Choice agency.” Other companies that have invested in the program are SAFECO, National Grange Mutual/Old Dominion Insurance, Encompass, Selective Insurance Group and The Hartford. Promotion of the new Trusted Choice brand will be accomplished through advertising, public relations, local agency marketing and an innovative web site. All forms of media will direct consumers to www.TrustedChoice.com, where they will find a cutting-edge agency locator and up-tp-date consumer information on insurance topics.

New, Quick Online Registration for Trusted Choice 
A, quick, new online registration for Trusted Choice, IIAA’s consumer marketing brand, is now available at www.TrustedChoce.com . The revised registration enables you to complete the initial sign-up in just four steps and takes about 10 minutes. Once complete, agencies receive full benefits of Trusted Choice membership, including access to the logo, Agency/Company Member site, Web Site Factory and more. The brand is designed to help agencies convey their value as trusted advisors to insurance consumers and to build market share. For more information or to sign up, visit the website at www.TrustedChoice.com . 

IIAA CEO Bob Rusbuldt Named Top Industry Leader
Insurance-Letter, a daily e-mail newsletter published by Insurance-Portal.com, has named IIAA CEO Bob Rusbuldt one of the “100 Most Powerful People in the Insurance Industry” for North America. The first annual list is subjective determination of the industry’s most prominent leaders. No rankings were offer -0 “avoiding moot concern over whether a person should be a ‘7’ or a ‘70’,” the article explains. Other industry leaders included in the list of 100 are: Ramani Ayer, The Hartford chairman and CEO; House Financial Services Committee Chairman Mike Oxley (R-Ohio); Sen. Paul Sarbanes, chairman of the Senate Banking Committee; NAIC President and Iowa Insurance Commissioner Therese Vaughan. 

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 help 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 at both of the day’s events should you like to meet her. Any interested agency may participate with Infinity in future events though membership in Infinity’s PASS Program. Please contact Todd Gober at 800-782-2040, ext. 8131 for more information. 

Infinity/Leader Insurance Introduces Industry-Specific Agency Training Program
Infinity/Leader Insurance, a member of Great American Insurance Group, recently offered a week-long series of training classes in Alabama as part of the PASS Program, (Providing Agents Service and Support). The PASS program is membership driven, designed to provide a multitude of value-added products and services to all registered members. One example of services offered through this program is a series of industry-specific training courses. According to Todd Gober, PASS training Director, “Feedback from our agents has been fantastic, and I think it indicates that we have developed something unique and special for them. The Microsoft Windows/Word class allowed agents to refine their computer skills while specifically using templates and forms for the insurance business. The Professional Field Underwriting class provided a wonderful forum to practice underwriting in the agency. Steve West of West Insurance Agency in Oxford, Ala., stated, “I attended the Professional Field Underwriting Class, and found the instructor and materials to be very professional, but also very interactive and enjoyable. Students are able to actively participate in class rather than sitting through a four-hour lecture.” Additional training classes offered through the PASS program include Introduction to Microsoft Excel and Professional Sales Skills. Infinity/Leader will continue to expand its course offerings and locations, and will begin offering evening classes in the near future. Questions, please call the PASS program hotline at (800) 782-2040, ext. 8442.

AgentSecure Kicks Off 2002 With Website Enhancements
AgentSecure, the Web-enabled, small commercial market access solution endorsed for smaller and rural agents by AIIA, recently make a number of enhancements to its Website. In order to help agents move more quickly through the online applications, a number of questions necessary to deliver a bondable quote now have default answers in place. Now, an agent must manually complete the question only if the default answer does not apply. In addition, application download speeds were increased an average 63 percent, due to recently applied compression technologies. AgentSecure’s dynamically generated application ensures that agents are only presented with those questions that apply to the specific type of business. This enables the agent to quickly and easily submit one application for consideration to multiple carriers. Members of the AgentSecure network recently received a detailed Appetite Guide, which outlines exactly what businesses AgentSecure can write. The AgentSecure website www.agentsecure.com lists business types ad classes in its Carrier Availability section - the Appetite Guide provides more insight into the breadth of markets served as well as any geography or industry distinctions. 

Employment Opportunities:
* WANTED: Experienced Personal Lines CSR Cincinnati and Applied Systems Experience beneficial. Send resumes to Paul Copper at 3016 7th Ave. S., Birmingham, AL 35233.

Legislative Conference Begins Next Tuesday, January 15th! 
The Alabama Legislature convenes on Tuesday, January 8, 2002. The time has come for insurance agents and lawmakers to come together to discuss your important issues you’d like to see our state government address. Don’t forget this year is an important election year with the governor’s race, the Lt. Governor’s race and re-elections in both the State House and Senate. AIIA’s Legislative Conference is your chance to affect the state legislative agenda and determine the state’s legislative climate after November’s elections. Legislative Chairman Jim Murphree has gathered numerous legislators to be quest speakers at the legislative conference; they will be to meet with you and listen to your interests. The tentative slate includes Insurance Commissioner David Parsons, Lt. Governor Steve Windom, Current Secretary of State Jim Bennett, State Treasurer Lucy Baxley, Rep. Greg Wren, Rep. Mike Hill, Sen. George Clay and Secretary of State candidate Steve Flowers.
Save a seat, register today! Registration is available in the October issue of AIIA’s magazine, The Alabama Independent or go to our website www.aiia.org and click on Meetings & Conventions to order online, or call AIIA’s toll free Fax-On-Demand at 1-877-669-1872 and request document # 4001, or call Nancy Crowe at 205-326-4129. On Site Registration will be available.
Legislative Conference Schedule:

Tuesday, January 15th   >   >   >   >   >   >   >   >    >    > Wednesday, January 16th
9:00 a.m. Registration     8:00 a.m.     Legislative Breakfast w/ Guest Speakers
9:30 a.m. Welcome
               Legislative Briefing
               Guest Speakers
               Presentation of the “Lawmaker of the Year” Award
11:30  Newcomer’s Caucus - “A Little Help Navigating the Hill!”
          Appointments with Representatives & Senators
5:00-7:00 p.m. Legislative Reception at the Hank Williams Museum, 118 Commerce Street

P&C Industry Registers Nine-Month Net Loss in Wake of 9-11
The U.S. property-casualty industry registered a $3.1 billion net loss following taxes through nine-months 2001 - its first-ever net loss following taxes through nine months. Reflecting the net loss and unrealized capital losses on investments, the industry’s surplus fell $35.5 billion, or 11.2 percent, to $281 billion at September 20, down from $317.4 billion at year-end 2000, according to Insurance Services Office Inc. (ISO) and the National Association of Independent Insurors (NAII). The net loss following taxes through nine-months 2001 resulted mainly from drastically higher underwriting losses as claims from the 9-11 terrorist attacks started to hit insurers’ bottom line. Other factors that contributed to the net loss include a 5.7 percent drop in net investment income, along with a 45.7 percent drop in realized capital gains. The industry also suffered a $41 million loss on other miscellaneous operations through nine-months 2001, after earning $583 million on such operations through nine-months 2000. 

DID YOU KNOW?!
Did you know that your new red 2002 AIIA Membership Directory contains a plethora of useful information? Under the GENERAL INFORMATION tab near the back of the book, you can find contact information - names, phone numbers, even email addresses - for the Alabama Department of Insurance and its numerous divisions as well as our national association, IIAA. Other insurance related entities include the Insurnace Services Offices (ISO), NCCI, Acord, the Alabama Automobile Assigned Risk Program, Alabama Insurance Guaranty Association, the Alabama Insurance Underwriting Association and the State of Alabama Department of Industrial Relations Workers Compensation Division. 

Trusted Choice Televison Debut Coming Soon
IIAA recently introduced the Trusted Choice marketing brand. The brand is designed to help agencies convey their value as trusted advisor to insurance consumers. Through an aggressive marketing strategy, Trusted Choice agencies will communicate to consumers the unique value independent agencies offer: choice, customization and advocacy. The branding program will include national advertising and public relations, local marketing support and an informative Internet site. 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. An aggressive marketing strategy has been developed to promote Trusted Choice to consumers. The first consumer television advertising will take place February 25 - March 24 in two pilot markets: Louisville, Ky. and Seattle/Tacoma, Wash. Trusted Choice commercials will appear several hundred times in the two regions during top-rated shows including West Wing, Law & Order, 60 Minutes, the Grammy’s CSI, Everybody Loves Raymond, Becker and more. In addition, ads will also run nationally March 11-15 during CNBC’s Hardball with Chris Matthews. Consumers want what you have to offer - choice, customization and advocacy - but they don’t know that you offer it. Trusted Choice will deliver your message. 

IIAA: Independent Agents Speak Out Regarding Terrorism
As Congress and insurance companies grapple with the availability of terrorism coverage for businesses, the Big “I” is educating consumers via national media opportunities. Several IIAA spokespeople have appeared in the national news supporting a federal reinsurance plan for acts of terrorism and explaining the challenges agents face as their clients encounter premium surges and non-renewals in the aftermath of September 11. Washington, D.C. State National Director Bill Simons was featured prominently last week on PBS’s Nightly Business Report, in a story that explained the new commercial insurance marketplace and speculated what lies ahead for insurance companies. Other recent high-profile IIAA media highlights include CNN’s Moneyline NewsHour, USA Today, CNBC’s Squawk Box, Newsday, CNNfn, Talk America Radio Network, and Bloomberg radio as well as numerous regional media outlets. IIAA also continues to maintain prominent representation within industry publications such as: National Underwriter, Rough Notes, Insurance Journal, Best Review and many others. 

Demand Growing for Property/Casualty Coverage
Despite increased underwriting competition, 2002 could be a good year for P&C insurers, according to industry observers. The 9-11 attacks have increased demand for coverage, offsetting the arrival of new competition that threatens to drive down rates. Long before 9-11, commercial line premiums were already rising, said Thomas Holzheu, senior economist at Swiss Re Economic Research & Consulting. P&C rates had been steadily rising through the first half of 2001. Since the terrorist attacks, there has been a sudden imbalance in P&C insurance supply and demand. “After 9-11, the world became a riskier place,” said Alan Zimmerman, research director at Fox-Pitt, Kelton, a unit of Swiss Re. “Companies have increased their dimensions of what their [property] losses could be.” This reverses the trend of the past 30 years, when corporations saw their risks as being primarily financial rather than physical, according to Zimmerman. As demand for insurance has soared, the industry’s capacity for risk has shrunk, making coverage more expensive. The higher P&C rates, however, have attracted fresh underwriting companies based in Bermuda, said Holzheu. Competition presented by this new money could limit the extent that P&C rates harden. 

Employment Opportunities:
* SEEKING EMPLOYMENT: Well–Experienced, Licensed Agent seeks Assistant CSR or Commercial Claims position in the Birmingham area. Please contact Priscilla P. Kemmerer at 800-960-4992, ext. 124, or (601) 863-312 or via email, Priscilla_Kemmerer@ajg.com for more information. 
* State Auto, a multi-line P&C insurer seeks experienced personal lines sales specialist for Central Alabama.  Incumbent must reside in Birmingham. Candidates should posses a four year college degree, direct sales experience and have a seasoned, professional understanding of personal lines products. Please forward resume and cover letter to Phil Crumley at 614-719-0549 fax, or to phil.crumley@stauto.com via email.