Alabama Insurance Guaranty Association Not Covering All Worker's Comp Claims
A recent revision in the Alabama insurance code has redefined the definition of a covered claim. The law previously was written to provide a cap of $150,000 on all covered claims except workers' compensation. Those losses were not subject to the cap. The new definition of a "covered claim" under Title 27-42-5(4) of the insurance code now totally exempts "any first party claims by an insured whose net worth exceeds twenty-five million ($25,000,000) dollars on December 31 of the year prior to the year in which the insurer becomes an insolvent insurer; provided that an insured's new worth on that date shall be deemed to include the aggregate net worth of the insured and all of its subsidiaries as calculated on a consolidated basis." Simply said, if your insured has a net worth of $25 million as of December 31st of last year, any pending claims with an insolvent insurer will not be considered a "covered claim" based on the new definition. This new definition will most certainly be challenged as it favors one class of insureds over another.

Alabama Meets InsurPAC Goal
InsurPAC, IIAA's political action committee, has eclipsed more than $410,000 in contributions thus far in 2001, making this one of its most successful fund-raising campaigns ever. To date, 26 states have surpassed 2001 fund-raising goals. Alabama is among those states. Alabama is also among 38 states that have 100 percent participation from their leadership - defined as state national director, state executive, president, InsurPAC chairperson, and Young Agents chairperson. These accomplishments are truly commendable. AY thanks you for your support. Congratulations!

Victor McCarley, CIC, Named to Society of CISR Board of Governors
Congratulations to AIIA's Director of Education and Technical Affairs Vic McCarley on the unanimous approval by CISR Board and CIC Executive Committee to serve on the Society of CISR's national Board of Governors. The first and only licensee representative ever elected, Vic will represent AIIA and the state of Alabama for a six-year term. "Once the National Agent of the Year, a former agent and now head of one of the top education programs in the nation, Vic will bring a unique perspective to the board," says Society of CISR President Mark Rolland, CIC, CISR. "Society of CISR is proud to have someone of Vic's caliber represent CISR nationally; he sees the big picture and will be able to look at CISR on a national scope," adds Rolland.

15th Annual Legislative Conference is Coming January 15-16, 2002!
Campaign season and Election year are near! The purpose of the Legislative Conference is to provide an atmosphere for company representatives and agents to network among state lawmakers. Your presence can affect the direction of the state's legislative agenda and campaign outcomes. Make plans now to attend this year's Legislative Reception to be held at the Hank Williams Museum! Located at 118 Commerce Street, it is across the street from the Montgomery Convention Center and within walking distance of the Embassy Suites Hotel. You won't want to miss this evening of good food and good fellowship with our invited Legislative guests. We expect a record turnout for this reception to be held in this unique museum dedicated to the world renown musician. Take advantage of a great price break on the registration fee and bring several from your office. You can find a registration form here or in the October issue of The Alabama Independent that can be printed and faxed back to Nancy Crowe at 205-326-3086. 

Don't forget to make hotel reservations, if you need a room. Hotel cut off date is December 15, 2001. With the Governor's race, the Lt. Governor's race and re-elections taking place in the State House and Senate, independent agents possibly face changes to the laws and regulations regarding our pro-business focus. AIIA and your Legislative Committee are once again bringing the political arena to you. With numerous speakers and a legislative reception, we set aside times for you to speak to legislators about your interests and have a good time at the same time! The conference is your chance to speak up and be heard by state political leaders and candidates.

Citing Uncertainty of Market, NAIC Stresses Urgency of Federal Action
In letters to Treasury Secretary Paul - O'Neill and Congressional leaders, National Association of Insurance Commissioners (NAIC) President and Kansas Insurance Commissioner Kathleen Sebelius stressed the need for federal action to ensure that the nation's insurance-buying public can secure coverage against the risk of future terrorist acts. The NAIC and its members have been working closely to develop a mechanism for appropriate role for the government. And, as Sebelius noted, NAIC members are grateful for the speed with which Congress is addressing the issue. However, "insurers are now issuing notices of non-renewal and filing across-the-board property/casualty exclusions for terrorism risk," Sebelius said. "These policy exclusions hold real consequences for the insurance-buying public in communities untouched by terrorist acts and related losses. This is occurring nationally, and state regulators are considering ways to ensure consumers remain protected without requiring insurers to assume unmanageable risks." The House of Representatives could vote on legislation to aid insurers soon, but a companion effort in the Senate remains at an impasse. IIAA is supporting the house effort and is calling on Congress to address the terrorism reinsurance issue before year's end.

EMC Insurance Launches New Brand Identity
EMC Insurance Companies unveiled an updated corporate logo, new brand identity and enhanced marketing philosophy on October 29, 2001. Company leaders say the move will better position the 90 year-old firm for the economic challenges and opportunities that lie ahead. The new initiative - called Count on EMC - is the result of an extensive marketing and research project involving customers, independent insurance agents and EMC executives. The goal of the Count on EMC program is to enhance accountability, efficiency and customer service, but also to offer reliability and stability in an ever-changing marketplace. "If we continue to be an insurance company with a safe and stable reputation, driven by customer satisfaction, we will succeed and be counted on as the years go by," says EMC president and CEO Bruce Kelley. "EMC has been counted on as a property and casualty insurance provider for 90 years, and we want to continue that tradition by making our service second to none so when people think of us, they know they can Count on EMC, its products, service and people." EMC markets exclusively through independent insurance agencies, many of which have represented EMC for more than 50 years.

Local Independent Agencies Bought by EBSCO
Birmingham's EBSCO has acquired S.S. Nesbitt & CO. and the R.A. Brown Insurance Agency. The Brown Agency, which handled EBSCO's insurance needs on a national level, will merge into S.S. Nesbitt & Co., which will serve both EBSCO and other Brown Agency customers. Steve Nesbitt will serve as general manager of this new EBSCO division. "A company the size of EBSCO offers a great deal of opportunity for our company. They have a lot of contacts who may be good prospects for us," says Nesbitt. Forbes magazine recently ranked EBSCO at No. 179 as one of the nation's largest private companies. Last year's posted revenues were estimated at $1.4 billion. Bill Lyle, Selina Simpson and Margaret Ann Pyburn were also named vice-presidents of the new division.

Employment Opportunities
Do you have a combination of life insurance and information technology experience? Would you like the opportunity to do a good mixture of "hands-on" technical work and train other technology team members? Stable, well-respected company in Birmingham is searching for a Technology Trainer/Networking Specialist to join their expanding team! Candidate will do 50% training of IT staff on insurance software applications and 50% hands-on work, consisting of installations, configurations, upgrades and maintenance. Position requires 40% travel. Ideally, candidate needs 3 years in the life insurance industry and be familiar with contract and policy management insurance software applications. Experience working with NT environment, SQL and router experience is helpful. Send resumes to laurie@ascentconsulting.com today!

Four State Agencies Make Best Practices List
Four agencies have been included for the year 2001 as part of an elite group of independent insurance agencies around the United States participating in the Independent Insurance of America (IIAA) "Best Practices" Study Group. The agencies are, McGriff, Seibels & Williams, Inc. of Birmingham; Thames, Batre, Mattei, Beville & Ison of Mobile; The Starke Agency, Inc. of Montgomery; and Thompson Insurance, Inc. also of Montgomery. Over 800 independent agencies throughout the U.S. were nominated to take part in the annual study. Only 180 agencies qualified for inclusion in the group; that is, the top thirty in each of six revenue groups. These agencies were nominated by either an IIAA affiliated state association or an insurance company and qualified based on their outstanding customer services, growth, stability and financial management. The Best Practices Study was initiated by IIAA's Commission to Enhance Agency Value in 1993 as a foundation for efforts to improve agency performance. The annual survey and study of leading independent insurance agencies documents the business practices of these "best" agencies and urges others to adopt similar practices.

Agency Information and Your Privacy
As you probably well know, AIIA has flooded your fax machine with requests for information regarding your agency or company. This information has been requested so that we can accurately serve your needs and interests. Please be sure that this information stays within our group. AIIA does not sell or distribute any information regarding your agency. We respect your privacy and have refused numerous requests for your agency's information. Please take time to fill out and return your membership profile and convention survey if you have not already done so.

15th Annual Legislative Conference is Coming!
Campaign season and Election year are near! The purpose of the Legislative Conference is to provide an atmosphere for company representatives and agents to network among state lawmakers. Your presence can affect the direction of the state's legislative agenda and campaign outcomes. Make plans now to attend this year's Legislative Reception to be held at the Hank Williams Museum! Located at 118 Commerce Street, it is across the street from the Montgomery Convention Center and within walking distance of the Embassy Suites Hotel. You won't want to miss this evening of good food and good fellowship with our invited Legislative guests. We expect a record turnout for this reception to be held in this unique museum dedicated to the world renown musician. Take advantage of a great price break on the registration fee and bring several from your office. You can find a registration form here or in the October issue of The Alabama Independent that can be printed and faxed back to Nancy Crowe at 205-326-3086. 

Don't forget to make hotel reservations, if you need a room. Hotel cut off date is December 15, 2001. With the Governor's race, the Lt. Governor's race and re-elections taking place in the State House and Senate, independent agents possibly face changes to the laws and regulations regarding our pro-business focus. AIIA and your Legislative Committee are once again bringing the political arena to you. With numerous speakers and a legislative reception, we set aside times for you to speak to legislators about your interests and have a good time at the same time! The conference is your chance to speak up and be heard by state political leaders and candidates.

S & P Says U.S. Insurers Sound After WTC Attacks
The attacks on the World Trade Center are not likely to push U.S. insurance companies into bankruptcy if losses do not exceed $50 billion, says Standard & Poor's. With losses spread among 60 companies worldwide, and with new capital pouring into the industry, widespread ratings downgrades are also unlikely, S&P said in a conference call. "We still believe most rating actions we're going to take will be limited to one to two notches, if we take any," said Mark Puccia, a managing director in S&P's financial services rating group. "Firms are starting to raise substantial amounts of capital in the capital markets, which is going to mitigate many rating issues we have with these companies." S&P said its company-by-company count so far has pegged losses at $22 billion, but that number is certain to go higher. Liability coverages and business interruption costs could add $5 billion to $20 billion to the total, and it may be years before those costs are resolved, S&P said.

IIAA Announces 2002 National Executive Committee
New Jersey agent Tom Ahart, CPCU, AAI, was inaugurated as IIAA President at the Hawaii InfoXchange. Cloyce Anders and Louise "Bebe" Canter were installed to key executive positions, and Alex Soto was added to the Executive Committee. Ahart, of Phillipsburg, N.J., becomes the association's 97th president. Ahart, President of Ahart, Frinzi & Smith, was elected to the Executive Committee in September 1996. Bill Hofmann, partner in Provider Insurance Group, Inc., with offices in Belmont, Brookline and Needham, Mass., and Woonsocket, R.I., remains on the Executive Committee as Immediate Past-President. Anders, President of VFIS of North Carolina in Raleigh; C.H. Stith, Inc. in New Bern, N.C.; and Bayboro, N.C.- based Pamlico Insurance Services; and Canter, Senior Vice Presidnet of Patterson/Smith Associates, Falls Church, Va., were named President-Elect and Vice President, respectively. Soto, of Miami, Fla.-based InSourse, Inc., previously was the Florida representative IIAA's Board of State Directors and Chairman of the Communications Committee immediately prior to his election to the Executive Committee. A native of Havana, Cuba, Soto has been an independent insurance agent for more than 20 years.

In his inaugural address, Ahart said independent agents must be willing to change to meet today's market challenges. He said agents need the tools to change, and that IIAA provides these tools via numerous programs. "If we all stay in the status quo we never go anywhere except backwards,: said the new IIAA leader. "Everything surrounding us is about to change. We need to look for change and we need to get Young Agents involved and give them the power to make decisions." He also endorsed IIAA's new consumer marketing brand Trusted Choice. "We don't want to believe the research because it's change - but we need to embrace the Trusted Choice branding program," he stressed. The national independent agent branding campaign will allow participating agents to take advantage of an effort to brand themselves as trusted advisors. The campaign will include local marketing and an Internet search engine that will allow consumers to find a local Trusted Choice agent who can best take care of their insurance needs.

Remaining 2001 Education Classes
As 2001 comes to a close and the Holiday Season draws near, AIIA is hosting the last few classes of the year until 2002. The 2002 education calendar is available here and have been mailed out to our membership. 

Agents Errors & Omissions Loss Prevention
Approved for 6 hours CE credit and is approved for the Westport program.
 

Employment Opportunities
Experienced Commercial Lines CSR needed immediately at the Witherington Insurance Group in Troy, Alabama. Please call Dot Howard or John Witherington at 1-800-239-1477.