State Farm Bank Now Open For Business
State Farm Insurance Company opened their Federal Savings Bank this past Saturday. The bank which was officially chartered in November, 1998 under the name State Farm Financial Services, FSB, will be generally called “State Farm Bank”. Its focus will be on consumer-oriented financial products that will complement State Farm’s existing personal lines insurance products. State Farm Bank will be a nontraditional financial institution and will not have branch offices. Customers will be serviced through their local agents and telephone, mail and internet communications. The bank will begin servicing customers in Illinois, then move to Missouri and plan to be in Arizona within two years. State Farm will offer deposit products, including savings accounts, certificates of deposit, money market accounts and checking accounts. Additionally, they will offer auto loans and leases, home equity loans and lines of credit, and home mortgages later this year. They will also offer ATM and credit card services.

On a related note, IIAA is getting very close to the announcement of their own federal savings bank, InsurBanc. Independent Agents will receive compensation for referrals and will be able to offer more of their clients one stop shopping services. Be watching for details about InsurBanc.

Auto Owners Stresses Their Commitment to Agents
In a recent letter from their CEO, Auto-Owners Insurance Company stated that it, “is 100 percent committed to the Independent Agency System...The strength of the Independent Agency System is dependent upon both agencies and companies working together as partners. Those companies in your agency who are 100 percent committed to you and have not lost faith in our distribution system should be the ones which you honor with your business. The more you help your true partners become successful, the more they can help you become successful. Why then would you want to do business with a company that is trying to put you out of business who is competing for your business.” 

Upcoming CIC Institutes
Please note that the upcoming CIC, Commercial Property Institute the first of June is FULL. We do however have a few openings left in the James K. Ruble Advanced Coverage Seminar. This class will be offered only to CIC designees who are members in good standing with the Society of CIC. It will be held June 28-30th, in Gulf Shores, AL. Commercial Casualty will be offered again in August, the 18-20th. This institute will be held in beautiful Pt. Clear, AL at The Grand Hotel. The cut off date for hotel reservations is July 19, 1999. Classes are filling up quickly, so please register early. Remember you can now register for education classes online, www.aiia.org. For any additional information call Lauren Mashburn at (205) 326-4129.

Convention Registration Still Available
You still have time to register for the upcoming annual convention. This year’s theme is MISSION POSSIBLE and will be held at the Sandestin Hilton June 17-19. Included in this year’s line-up is Keynote Speaker, Former Governor Albert Brewer, as well as, Steve Anderson, IIAA’s leading technology consultant. Also, don’t forget about the Trade Show. This year we expanded the show and sold out every last space. You won’t want to miss the opportunity to meet and hear from companies who are introducing new products and markets in Alabama. Call the AIIA Office for more information, (205) 326-4129.

Eagle Agency Information Still Available
 If you missed the recent meetings the Independent Insurance Agents of America held in Alabama regarding their new market access program, Eagle Agency, you can still get information. AIIA has packets available and will be glad to mail one to your office. If you have any questions, or would like an information packet, please call Kelly Hood at the AIIA Office (205) 326-4129.

Young Agents Sales Conference- Focus on Closing Sales
Do you have a young producer who could benefit from an intensive seminar on closing insurance sales? Then make plans to send them to the annual Young Agents Sales Conference, August 19-21 at the Sandestin Bayside Resort. This year’s meeting is entitled “Don’t Miss the Boat” and will feature Hugh 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.” The cost for the conference is only $150. Please watch your mail for registration forms, they will be coming out in mid-June.

RLI Expands Their Limits
RLI has filed to expand their umbrella limits to $5 million. This association endorsed program is open to all members in good standing. As soon as the new policy is approved by the Alabama Department of Insurance we will let you know. For more information on this product, call Tangy Richardson at the AIIA Office (205) 326-4129.

Small and Rural Agents Relocate Meeting
The Small and Rural Agents Committee met this week and have finalized plans for their upcoming conference. They will hold their meeting October 13-14 at the NEW Marriott on Highway 280 in Birmingham. Due to last year’s increased attendance we have been forced to move to a larger location. The conference will focus on automation issues and technologies available to help small agents compete.

Excalibur Foundation is Formed
The Excalibur Foundation is AIIA’s new educational foundation. The foundation is raising money to help perpetuate the independent agency system by providing scholarships to Alabama college students majoring in insurance. It is the hope of the foundation that through these scholarships we will help ensure that qualified young producers continue to enter our industry. To make a tax deductible donation to the foundation or for more information, please contact Kelly Hood at the AIIA Office (205) 326-4129.

AIIA Associate Member Named Alumnus of the Year
Tom Albrecht of The Barclay Agency in Montgomery was named School of Business Alumnus of the Year by Samford University. Albrecht is an active member of this association and CEO of The Barclay Agency. Congratulations Tom!

Applied Systems Interested in Banking Activities
Applied Systems recently sent out a survey to their customers to help determine how agents will be doing business in the future. One section asked, “Have you considered partnering with a bank to sell insurance to bank customers?” and “ Would you be interested in partnering with a bank to sell insurance to bank customers?” Applied Systems stated that are interested in knowing how agents perceive the Banks and Insurance issue.

Insurance Market Losses Look Good for Lloyd’s
Insurance market Lloyd’s of London announced that it expects losses for the 1998 and 1999 years to be much smaller than the disastrous losses of the early 1990s and would be easily covered by funds backing the market. 

SUV Liability is Up
Higher losses from Sports Utility Vehicles (SUV) mean higher rates for SUV drivers. According to the Highway Loss Data Institute, as you add weight to the vehicle to protect the passengers, you increase the damage potential in accidents. Insurance companies expect the rates to continue to increase as the popularity of these vehicles increase.
 
 

Important Changes for the Annual Convention

Please make a note that we have made the following changes to the annual convention that will take place June 17-19, 1999 at the Sandestin Hilton.

• Room rates at the Sandestin Hilton have been reduced from $211.50 per night to $200.50 per night. If you have already paid your deposit, the difference will be credited towards your final bill at check-out.
• There will be 2 hours of CE Credit given to participants attending the Y2K seminar with Steve Anderson on Saturday during the general session. 
• Independent Finance, AIIA’s new premium finance company, will give away a one year lease on a Volkswagen Bug as the Agents Grand Prize.
• THE ROOM RELEASE DATE IS MAY 16^th! You need to register today if you plan to reserve a room at the hotel.

ERC\Westport Introduces New E&O Policy 

ERC Errors and Omissions policies will now be written on Westport paper. Westport Insurance Company is a wholly owned subsidiary of ERC and will retain the company’s A++ rating. To celebrate the change there are filing a brand new policy. The new Westport policy will offer even more coverages including; catastrophe extra expense, premium financing activity, mutual funds (up to policy limits), subpoena reimbursement (up to $5,000), coverage for insurance education, and regulatory defense coverage up to $25,000. All of these new coverages are included in the policy which has been filed at the same rates as the existing ERC policy. Once the policy is approved, we will be able to write your renewals on the new policy. For more information on Errors and Omissions coverage through AIIA, call Carol Hunt at (205) 326-4129.

Mobile Agent Named Alabama CISR of the Year

Congratulations to Barbara Rutherford, CIC, CPIW, AU of Lyon, Fry, Cadden in Mobile. She has been named the Alabama CISR of the Year by the Society of CISR in Texas. Barbara will now compete on the national level for the CISR of the Year Award. 

Want More Commission?

Last Call to attend one of this year’s best seminars! Customer Service Representative Sales Skills Workshop will be held at the association office in Birmingham on Tuesday, May 11^th from 8:00 a.m.-5:00 p.m. If you are looking for a great sales skills workshop, this is it! You will learn goal setting, prospecting, handling client objections, and how to close the sale. CSR’s and producers will both benefit from this training. Technical knowledge is only half the battle, sales skills win the commission war. The course is only $199 for members, $100 less than offered nationally elsewhere. Call Lauren Mashburn at 205-326-4129 to reserve your place today.

Progressive Launches Statewide Initiative to Save Children’s Lives

Progressive Insurance Company, in conjunction with Alabama Safe Kids, has launched a new statewide initiative to ensure that car safety seats are properly installed in every car with a child passenger. Part of their commitment includes conducting car safety seat clinics across the state and they are looking for agent volunteers to help with the project. Seminars will be conducted in Montgomery (May 19), Huntsville (June 5), Birmingham (June 12), and Mobile (June 12). Volunteers will be on hand to check car seat and talk to parents about car seat safety. If you would like more information or would like to volunteer, please contact Michelle Dotson with Progressive at (205)414-3748.

Birmingham Agents Open New Branch of J. Smith Lanier

Birmingham insurance agents Alvin Bresler and Gloria Ingram will open the newest branch of J. Smith Lanier & Company in Birmingham. The new group will be known as Bresler & Associates\J. Smith Lanier and their offices will be located at 1900 International Park Drive.

Trucking Insurance Specialists Sought

A company specializing in marketing a hazardous material transportation insurance program will be offering their initial product in the south, southeast, southwest and mid-west. They are searching for the true transportation specialist with the staff and experience to handle large and complex accounts on a day to day basis. For more information on this potential market, please contact Ron Scott at the AIIA Office (205) 326-4129.

NALU Changes Name

The National Association of Life Underwriters has decided to embrace the future of the financial and insurance market and change their name to reflect that new field. The new name for the organization will be the National Association of Insurance and Financial Advisors. 

Alabama Agency Named to State Auto Inner Circle

State Auto Insurance Company has selected their newest class of agents for the prestigious Inner Circle Award. This year Hamilton, Riggs & King in Decatur has been selected. Congratulations on your accomplishment!

Did You Know?

• The Montgomery Local Association will be holding a golf tournament and social on May 20 at the Arrowhead Golf and Country Club. Please call Georgia Dougherty at (334)244-0004 for more information.
• The Young Agents Conference is approaching. Please make sure your young producers have marked down the dates. This exciting sales seminar will be held August 19-21 at the Sandestin Bayside Resort.
• The Small and Rural Agents Conference is set for October 13-14, 1999 in Birmingham. 

Insured losses from the killer tornadoes that ripped through Oklahoma and Kansas earlier this week could exceed $500 million, according to the Insurance Information Institute.

RLI Umbrella Sales Soar

RLI reports that the sales of the personal umbrella policy are soaring due in part to the recent underwriting changes. The definition of "youthful driver" has been lowered to age 22 and these drivers now can qualify with one driving incident on their record. If you need more information on this policy please call Tangy Richardson at the AIIA Office (205) 326-4129.

Positions Available

Office Manager\CSR needed in a prominent Personal Lines Agency in North Shelby County. Alabama insurance license required. Please mail resumes to 364 Hillandell Drive, Birmingham, AL 35244.

Personal Lines CSR needed. Excellent pay and good benefits. Send resume to PO Box 55318, Birmingham, AL 35255.