The Alabama Legislature has passed a new financial responsibility law requiring proof of motor vehicle liability insurance as a condition to register and obtain a license for an automobile. The vote in the House was 87-15 and the Senate 27-1.  The new law imposes the following requirements:

1. No one may register or obtain a tag for an automobile unless he/she presents a certificate issued by an insurance company or a binder issued by a licensed insurance agent of valid motor vehicle liability in the amount of 20/40/10 limits.

2. The certificate or binder must include information including the name and  address of the person to whom it is issued, the automobiles covered and their vehicle identification numbers.  Each person registering a vehicle must also sign an affidavit stating under penalty of perjury that they have a current and in force motor vehicle liability insurance policy.

3. The policy may not be canceled or annulled as to the liability by any agreement between the insurer after the occurrence of the injury or damage.  This will not prevent an insurer from canceling an insurance policy due to material misrepresentation by the insured.

4. Cancellation of an insurance policy shall not be valid unless a 30 day notice is given to the Director of the Department of Public Safety.  This will not apply when a policy is canceled due a material misrepresentation by the insured, or when an insured cancels one policy and replaces it with another.

5. Anyone issuing, alters, or forges a certificate stating a vehicle is covered for liability without proper authorization to do so will be punished by a fine of not more than $5,000, by imprisonment for not more than 12 months, or both.

6. The owner or operator of an automobile must keep proof or evidence of insurance in the automobile.  Failure to comply will constitute a misdemeanor and upon conviction, shall be subject to a fine of not more than $150.

 7. Every law enforcement officer in this state will request proof of liability insurance every time the presentation of a driver’s license is requested.  Failure to present proof will result in the loss of the driver’s license for 72 hours, during which time the citation issued to the driver shall serve as immunity from citations for failure to have a driver’s license.  If the driver is not the owner, the court may issue a citation to the owner for authorizing the operation of an automobile without proof of insurance.  If during the 72 hour period evidence of liability insurance can be produced, and this is the first offense, the license will be returned without payment of a fine and no record will be made with the Department of Public Safety.  Subsequent violations will result in a fine of $150 and the return of the driver’s license upon presentation of proof of insurance.

8. Any owner or any other person knowingly operates or knowingly authorizes another to operate an automobile without the required insurance shall be guilty of a misdemeanor and upon conviction shall be subject, in addition to the fine above in section 7, to a fine of not more than $500 for the first conviction.  Subsequent convictions shall be subject to a fine of not more than $1,000 or suspension of their driver’s license for a period of not more than six months, or both fine and suspension.

9. Additional rules and regulations will be drawn up by the Director of Public Safety.

10. This bill has an effective date of June 1, 2000.
 
 

We congratulate this years new Certified Insurance Counselor Designees: 
Kimberly Bates, CIC, Palomar Insurance, Montgomery, AL; 
George Baus, CIC, Fidelity & Deposit Co of Maryland, Mobile, AL;
Linda Bell, CIC, CISR, CPSR, Willis Corroon Corporation, Mobile, AL; 
illiam Blake, CIC, CPCU, ARM, Molton, Allen & Williams, Birmingham, AL;
Carol Bridges, CIC, Cooney, Rikard & Curtin, Birmingham, AL;
Phillip Brown, CIC, TBMBI, Mobile, AL;
Beth Douglas, CIC, Travelers Property & Casualty, Birmingham, AL;
Alice Drew, CIC, Southern Guaranty Insurance, Montgomery, AL;
Jackie Faircloth, CIC, Willis Corroon Corporation, Mobile, AL;
Pamela Fields, CIC, McGriff, Seibels & Williams, Birmingham, AL;
Susan Fleming, CIC, CISR, Harmon-Cone, Montgomery, AL;
Aleah Goode, CIC, Southern Guaranty Insurance, Montgomery, AL;
Becky Hamilton, CIC, CPCU, McGriff, Seibels & Williams, Birmingham, AL;
John Hill, CIC, Lumberman’s Underwriting Birmingham, AL;
Christine Kennedy, CIC, American Resources, Mobile, AL;
Jody A. Ketch, CIC, Insurance Planning Services, Inc., Anniston, AL;
Kathy W. King, CIC, Molton, Allen & Williams, Birmingham, AL;
Veronica Lee,  CIC, CISR, Cooney, Rikard & Curtin, Birmingham, AL;
Donna Leemon, CIC, JYC Insurance, Birmingham, AL;
Brad McMurray, CIC, Hilb, Rogal & Hamilton, Birmingham, AL;
Wilfred Nance, CIC U. S. Epperson Underwriting, Birmingham, AL;
Cynthia M. Rabren, CIC, CISR, Van American Insurance Services, Birmingham, AL;
Margaret Ann Smith, CIC, CISR, Brewton Insurance Agency, Brewton, AL;
Betty Vincent, CIC, CISR, The Starke Agency, Montgomery, AL;
Timothy Wilson, CIC, National Security Fire & Casualty, Elba, AL;
Sheryl Winslett, CIC, McGriff, Seibels & Williams, Birmingham, AL;
Also, our congratulations to our new CISR designees: 
Lisa Anderson, CISR, International Assurance, Mobile, AL;
Teresa H. Anthony, CISR, Southern Risk Services, Birmingham, AL;
Jane M. Baxley, CISR, San Buck, Inc. , Enterprise, AL;
Haldine D. Baxter, CISR, The Baxter Agency, Louisville, AL;
Ericka L. Bazor, CISR, American Equity Underwriters, Mobile, AL;
Rhonda M. Blair, CISR, Insurance Center of the SE, Dothan, AL;
Carlene B. Bonifay, CISR, Old Republic Surety, Birmingham, AL;
George J. Boohaker, CISR, O. M. Hughes Insurance, Inc., Birmingham, AL;
Kelli J. Caldwell, CISR, Gresham & Associates, Birmingham, AL;
Suzanne E. Corkren, CISR, Thompson Insurance, Montgomery, AL;
Joseph K. Drumwright, CISR, The Starke Agency , Montgomery, AL;
Mary K. Durant, CISR, Gulf Shores Insurance Agency, Gulf Shores, AL;
Linda M. Eberhart, CISR, Hilb, Rogal, & Hamilton, Fort Payne, AL;
Stephanie A. Estes, CISR, Fitts Agency, Tuscaloosa, AL;
Leigh A. Ferreri, CISR, Cooper/T. Smith Corporation, Mobile, AL;
Matthew T. Ferreri, CISR, American Resources Ins Co., Mobile, AL;
Holli V. Franklin, CISR, Ken Holt Insurance Agency, Bessemer, AL;
Judy D. Franklin, CISR, McGriff, Seibels & Williams, Birmingham, AL;
Susan J. Goodspeed, CISR, TBMBI, Mobile, AL;
Charlotte A. Graham, CISR, Jackson Insurance Agency, Birmingham, AL;
Laura B. Graham, CISR, Cobbs, Allen & Hall, Birmingham, AL,
Anna Truejoy Grimwood, CISR, Grimwood Insurance, Huntsville, AL;
J. Marie Hembree, CISR, Sedgwick of Alabama, Inc., Birmingham, AL;
Juanita M. Howell, CISR, Lyon Fry Cadden Insurance, Mobile, AL;
Mary Ann Hubbard, CISR, Colonial Insurance Agency, Montgomery, AL;
Maureen Hurley, CISR, Lynn, Fry, & Cadden, Mobile, AL;
Gloria L. Ingram, CISR, Sedgwick of Alabama, Inc., Birmingham, AL;
Leigh H. Jeffcoat, CISR, Pinckard Agency, Inc., Troy, AL;
Terry J. Jennings, CISR, Independent Insurance Agency, Pinson, AL;
Mary A. Johnson, CISR, Pinckard Agency, Inc., Troy, AL,
Janet R. Jones, CISR, Liberty Mutual Insurance, Birmingham, AL;
Darlene T. Jordan, CISR, Pinckard Agency, Inc., Troy, AL,
Valinda D. Kent, CISR, Community Insurance , Blountsville, AL;
Tammy D. Lawrence, CISR, Conney, Rikard & Curtin, Inc., Homewood, AL,
Trudy J. Loy, CISR, Guttery Insurance Agency, Piedmont, AL;
Theresa S. Lysck, CISR, Ebert Agency, Inc., Foley, AL;
Frances B. Machen, CISR, Ebert Agency, Inc., Foley, AL;
Judy G. McCarley, CISR, Vesta Insurance, Birmingham, AL;
Deborah E. McGinn, CISR, Bay Minnette, AL;
Bettie S. McLeod, CISR, TBMBI, Mobile, AL;
Lessie M. McNutt, CISR Rodgers, Carlton & Associates, Inc. Florence, AL;
Faye L. Mitcham, CISR Sedgwick of Alabama, Inc., Birmingham, AL;
William W. Mitchell, CISR, Diversified Insurance & Financial, Dothan, AL;
Sylvia R. Neely, CISR, Landers & Creel Insurance, Inc., Birmingham, AL;
Sherry L. Nolan, CISR, Malibu Insurance, Vestavia, AL;
Sandra R. Phillips, CISR, TBMBI, Mobile, AL;
Torina L. Price, CISR, W. H. Plott Agency, Inc., Tuscaloosa, AL;
Brenda G. Purcell, CISR, Red-Leach & Sons Gadsden, AL;
Wanda S. Quinn, CISR Landers & Creel Insurance, Inc., Birmingham, AL;
Patricia S. Rachel, CISR, Pinckard Agency, Inc., Troy, AL;
Denise R. Rager, CISR, The Insurance Center, Tuscaloosa, AL;
Sandra J. Redmon, CISR, Pinckard Agency, Inc., Troy, AL;
Carol C. Roberts, CISR, Sumter Insurance Agencies, Livingston, AL;
Louraine M. Roberts, CISR, Clark’s Insurance,  Talladega, AL;
Donna M. Robertson, CISR, Jackson Insurance Agency, Inc., Birmingham, AL;
Angie L. Rogers, CISR, TBMBI, Mobile, AL;
Teresa A. Rowell, CISR, The American Equity Underwriters, Mobile, AL;
Melissa D. Shearon, CISR, Cobbs, Allen, & Hall, Birmingham, AL;
Sondra J. Sherrill, CISR, Duckworth-Morris Agency, Inc., Tuscaloosa, AL;
Dawn W. Slaton, CISR, Sinclair-Lawrence, Muscle Shoals, AL;
Donna G. Stanfield, CISR, McGriff, Seibels, & Williams, Inc., Birmingham, AL;
Gail D. Stephens, CISR, Sevier, Fowlkes & Britt, Birmingham, AL;
Catherine D. Stocks, CISR, Associated Insurors Florence, AL;
Stella A. Strickland, CISR, Pinckard Agency, Inc., Troy, AL;
Patricia D. Taylor, CISR, J. R. Prewitt & Associates, Birmingham, AL;
Emily B. Thorington, CISR, Pritchett-Moore, Inc., Tuscaloosa, AL;
Jane S. Velasquez, CISR, Willis Corroon Corp/ Mobile, Mobile, AL;
Carla M. Vickery, CISR, McGriff, Seibels & Williams, Birmingham, AL;
Patricia D. Whitlock, CISR, Hueytown, AL;
Christina L. Williams, CISR, Insurance Center of the SE, Dothan, AL;
LaWanna S. Wishum, CISR, Alabama Home Builders Associates, Montgomery, AL;
Peggy P. Wood, CISR, Rux Carter Insurance Agency, Columbiana, AL;
Tamara L. Wyatt, CISR, Duckworth-Morris Agency, Inc., Tuscaloosa, AL.
Congratulations to all of our new insurance professionals!!

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Siegelman Exercises Executive Amendment on HB 60
After being overwhelmingly passed by the Alabama Legislature, Governor Don Siegalman, exercising an executive amendment, pushed a mandatory auto insurance bill HB 60 through on the last day of the session.  The new law imposes requirements including requiring proof of motor vehicle liability insurance in order to register or obtain a tag for an automobile.  The certificate of insurance must include information including the name and address of the person to whom it is issued, the automobiles covered and their vehicle identification numbers.  In addition, the liability portion of the policy may not be canceled or annulled by the insurer after the occurrence of an injury or damage except in the case of a material misrepresentation on behalf of the insured.  Call the AIIA office at (205)326-4129 for a press release with a more detailed analysis. 

Tort Reform Signed into Law
A collective sigh of relief was heard across the state when Gov. Siegelman signed into law the last of three pieces of legislation designed to curb lawsuit abuse in the state by limiting the amount permissible in punitive damage awards.  AIIA members are encouraged to call the AIIA office for a detailed analysis and press release about the new tort reform law and communicate this important information to insurance company officials and underwriters.

Allstate Accelerates Independent Agency Strategy
The Allstate Corporation recently announced the acquisition of the personal lines business of Chicago-based insurer CNA in an effort to help it reach its goal of becoming the leading provider of auto and homeowners insurance in the $45 billion independent agent market.  Allstate had agreed with CNA to acquire its personal lines auto and homeowners business in a transaction valued at $1.2 billion, a move that will increase Allstate’s total annual premium revenue from the independent agent channel to approximately $3 billion.  Allstate also announced the appointment of Bruce W. Marlow, 50, formerly Chief Operating Officer of The Progressive Corporation, to head its new independent agency initiative.

MISSION POSSIBLE Almost a Reality
The excitement is brimming with the convention just around the corner.  The majority of the AIIA staff with be in Sandestin setting up for the convention starting on Wednesday, June 16th, so if anyone still needs to register, please do so prior to Wednesday. We are expecting a spectacular turnout of about 500 agents and family members from around the state.  If you haven’t already, make plans to “Accept your Mission” and join us next week for the AIIA Annual Convention!

Young Agents Conference Registration Underway
Registration for the Young Agents Annual Conference being held August 19-21, 1999 at the Sandestin Bayside Resort is now underway.  This year’s meeting is entitled “Don’t Miss the Boat” and will feature Lee Goodman’s award winning presentation, “The Power of Settlementality, Negotiations for Insurance” as well as a presentation from Bill Wilson, the new IIAA Director of the Virtual University on “Presentations Skills in Insurance.” All young agents should have received their registration packets in the mail this week.  All members should receive their materials immediately following the convention next week, so be on the lookout!  This year’s conference promises to be one of the best focusing on presentation, negotiation and settlement skills for the future.  Sponsorship opportunities are currently available for a wide variety of events.  Call Kelly Hood at AIIA (205) 326-4129 for more details. 

Web-site Face lift
In an effort to increase name and logo recognition, the AIIA web-site has recently undergone a face lift.  This new age and technologically advanced look may qualify us for an award and is hoped to increase the number of hits we receive per day.  Please check out our new look at www.aiia.org and take advantage of this important informational and technical resource.

Young Agents Committee Seeks Volunteers
The Young Agents Committee is looking for volunteers to serve on their committee from the following counties: Perry, Dallas, Wilcox, Marengo, Sumter, Choctaw, Lawrence, Morgan and Winston.  If you are a Young Agent or know of one in any of these areas, please contact the AIIA for more information.

Beat the Summer Heat
AIIA is offering the following classes in July. Air conditioning will be provided.
July 7  E&O-Sheffield   July 20  CL Issues-Mobile
July 8  E&O-Tuscaloosa  July 21  CL Issues-Montgomery
July 13  E&O-Montgomery  July 22  CL Issues-Birmingham
July 15  E&O-Birmingham  July 23  CL Issues-Huntsville 
Call Lauren Mashburn at AIIA (205)326-4129 for more information.

Employment Opportunities
Nesbitt & Associates, Inc. in Birmingham has an opening for an experienced CSR in Commercial Auto/Transportation/Trucking.  Please send resume to P.O. Box 661255, Birmingham, AL 35266 or fax to (205)822-2087.

Also Bates Insurance Agency, Inc. in Irondale has a position available for a Personal Lines CSR.  Please send a resume to P.O. Box 55318, Birmingham, AL 35255

RLI Limit Expansion Approved
RLI’s filing to expand their personal umbrella limits to $5 million has been approved by the Alabama Department of Insurance and will be effective on July 1, 1999. This association endorsed program is open to all members in good standing. For more information on this product, call Tangy Richardson at the AIIA Office (205) 326-4129.

CSRs Seeking Employment in Birmingham
Local CSR and licensed agent with 12 years personal lines experience is seeking a position in the Birmingham area.  For more information, please call Ron Scott at AIIA (205)326-4129.

Local CSR with 3 years experience and desire to become a licensed agent is also looking for a position in Birmingham.  Please call Kelly Hood at AIIA (205)326-4129 for more information.

Travelers Refining Cross-Selling Strategies
After ‘Call Leveraging’ Program met limited success, Travelers is refining their strategies.  Admitting mistakes were made when they merged with Citibank last year, Travelers told New York’s independent agents it is taking “a step back” from its cross-selling program because “we learned our data processing isn’t good enough” to guarantee that the carrier is not marketing to its existing customers--customers brought to Travelers by independent agents.

Amerisure Earns ‘A’ Rating
Amerisure Insurance Company and its parent, Michigan Mutual Insurance Company, collectively known as Amerisure Companies have received an ‘A’ rating of ‘Excellent’ up from ‘A-’ by A.M. Best Company, the nation’s leading rating service for the insurance industry.  This improvement in rating was based on the group’s consistently solid operating performance, commitment to loss reserve adequacy and pricing standards, excellent capitalization and improved liquidity.  A.M. Best also acknowledges that they are making this upgrade in spite of the extremely competitive marketplace in which Amerisure operates.

MONTGOMERY, AL (June 7, 1999) -- The business community in Alabama sighed a collective sigh of relieve today as Governor Don Siegelman signed into law the last of three pieces of legislation designed to curb lawsuit abuse in the state. In a press conference attended by Siegelman, House Speaker Seth Hammett , members of the legislature and a large contingent from the business community, the Governor stated “Business will no longer suffer cruel and unusual economic punishment because of an error in judgement. This legislation will bring reason and balance and will help avoid outrageous judgements and unfair lawsuits.”

Today’s signing of Senate Bill 137 establishes the amount permissible in punitive damage awards. In non-physical injury cases the award for punitive damages is limited to three times compensatory damages or $500,000, whichever is greater. It also contains a separate cap for small businesses of $50,000 or 10 percent of net worth up to $200,000, whichever is greater. Small business is defined as a business having a net worth of $2,000,000 or less at the time of the occurrence that is the basis of the lawsuit. Governor Siegelman earlier signed into law Senate Bill 305 dealing with the issue of the current law of venue. Senate Bill 305 now governs all claims in all actions against corporations and insurance companies and limits venue to only three counties:

    1) In the county in which a substantial part of the omissions or events giving rise to the claim took place.

    2) In the county where the corporation’s primary place of business in this state is located.

    3) In the county in which the plaintiff resided at the time of the occurrence of which the plaintiff complains so long as the    corporation does business in that county by agent.

No longer will plaintiff lawyers be able to have proper venue in a county simply because a corporation or insurance company does business in a particular county.

Senate Bill 72 has done much to correct Alabama’s unfavorable nationwide reputation as a jurisdiction in which a class action could  be certified with ease. The new law codifies recent Supreme Court rulings to ensure that a defendant receives adequate time to answer the complaint, investigate the allegations, etc., prior to proceeding to class certification.

The passage of these three pieces of legislation and the signing into law by Governor Siegelman represent a new day in the overall judicial climate in this state. No longer will the term “TORT HELL” have any relevance to Alabama and its judicial landscape. Business can operate in an environment free of the fear of lawsuit abuse and courtrooms where plaintiff lawyers have the deck stacked against innocent parties. 

With the Alabama Supreme Court Elections of 1994, 1996 and 1998 the Alabama Supreme Court is no longer dominated by judicial activists supported by trial lawyers rewriting state law at a whim to favor a few large plaintiff law firms. The elections of Chief Justice Perry Hooper Sr., Justice Harold See, Justice Jean Brown and the re-election of Justice Gorman Houston have given this state a Supreme Court that will not re-write state law to benefit a few, but will interpret the law as passed by the legislature. The business community will not find itself in the same position it was in 1987 when sweeping tort reform passed the legislature only to be struck down one piece at a time by a trial lawyer backed Supreme Court.

Summaries of the three pieces of legislation making up the tort reform package along with the actual legislation will be included with this release.  For more information contact Ron Scott, Executive Vice President, Alabama Independent Insurance Agents , Inc. at (205) 326-4129.