Committee Day Big Success
This year’s Committee Day held this past Wednesday was a big success with over 60 member agents from 7 different committees in attendance to discuss current issues facing AIIA.  During the lunch break, we featured special guests Supreme Court Justice candidate Roy Moore, Court of Civil Appeals candidate Glenn Murdock and Alabama Rep. Greg Wren who discussed this year’s campaigns and strategies.

Mickie Edwards, CISR, CIC, CPIW, AAI , chairperson of the Education Committee reported that, “We are tremendously proud of the success of the AIIA Education Department and the Education Director Vic McCarley, CIC.  It is an honor for the program to be recognized again this year by receiving the L.P. McCord Award for the fifth time.  The committee reviewed the upcoming 2001 schedule of classes which will offer a new Life & Health Licensing School and reviewed the success of the Continuing Education on Video program which continues to be very successful for AIIA.”

Jim Murphree, chairman of the Legislative Committee noted that, “Our committee continues to have excellent input from all participants.  We are anticipating a full agenda for the upcoming legislative session and are working closely in a positive direction with the Insurance Department on the Model Licensure Bill which we believe will create a more level playing field for agents and improve consumer protections.”

John Dark, chairman of the Member Services Committee expressed that “The committee is reviewing two proposals for an office supply program which we believe would be beneficial to our membership.  We are still ironing out the details of the different programs, but will be making a recommendation for endorsement soon.  We heard from SBU’s Dave Coley who addressed problems that our membership had experienced with service.  He assured us that they are working hard on improving their internal training and service standards and look forward to continuing their partnership with AIIA.  Finally, we heard from LTC Associates’ Joe Paul Abbott on our recently endorsed Long Term Care Program.  He emphasized that there is a tremendous need to increase licensing with the company and improve participation on behalf of the board and the membership as a whole.”  In summary, John said, “ We look forward to bringing new programs to the membership throughout the coming year.”

Stan Kasuba, CIC chairman of the CIC Committee noted that “With the exception of one, all of the CIC seminars have exceeded attendance expectations and the speaker evaluations have been very good.  The committee recognizes that the CIC and CISR programs continue to be a real success story for the AIIA.”

Nancy Milton, CIC, CPIW, chairperson of the Commercial Lines Committee said, “I was delighted to see so many people at the meeting.   We formed an ad hoc committee to set some guidelines on deregulation and will present them to the Legislative Committee for action.  We discussed the ‘changing’ market, PEO's , service centers, lifetime bonds and the Southern Agent's Conference. An ineligible driver agreement was discussed and because it makes the producer a party to the warranty, we feel it must be changed.  One of the committee members agreed to write to the insurance company and have this endorsement changed.  All in all it was one of the most productive meetings I have attended.  I look forward to a very busy year!!”

John Kelley, CPCU, CLU, chairman of the Associate Member Advisory Committee reported “The committee received Associate Member concerns and submitted suggestions to improve the convention and sponsorship programs.  We also discussed AIIA’s plan to implement an internet market access program.  There seemed to be quite a bit of interest in the program and we are anxious to get more information as the plans solidify.”

Guidelines to Credit Scoring Now on Fax-On-Demand
Credit Scoring is not something new to the industry but has become a cause of concern for Independent Insurance Agents as of late.  Our competitors have used this tool for many years having determined that the better the credit score, the better the risk.  The Fair Credit Reporting Act (FCRA) passed in 1970 established some rules for individuals ordering credit scores. First, it only applies to individuals, not entities such as Corporations, partnerships, etc. Second, it doesn't apply when all of the information used to make an acceptance decision comes directly from the client. Third, it established some financial penalties for failure to obtain and give the proper documentation to the individual whose credit is subject to
scrutiny.  The potential client's written permission needs to be obtained by the agent when checking someone’s credit score.  Failure to do so can result in fines, punitive damages, attorney's fees and court costs.  As to information available on the subject, the IIAA’s legal division has a white paper on the subject which includes sample permission forms and the documentation that should be transmitted to the rejected client. For the white paper, call IIAA’s legal division at (800) 221-7917.  For a more detailed analysis on Fair Credit Reporting Guidelines, call our Fax-On-Demand system toll free at (877) 669-1872 and request item #6017.

2001 Education Calendar On It’s Way
The 2001 Education Calendar is now in production and should be in your mailbox the week prior to Thanksgiving, so be on the lookout!  The new year will host two exciting new programs including a Life & Health Licensing Course and a New Producer School targeting Sales and Commercial Lines components.  For more information on upcoming classes, call AIIA at (205) 326-4129.

State Auto and Meridian Mutual Announce Merger Agreement
State Auto Financial Corporation and Meridian Insurance Group jointly announced this week that their principal stockholders have agreed to merge the two mutual companies.  The combined companies will be the 48th largest property/casualty insurance group in the U.S. The merger is conditioned upon approval by regulators, MIGI shareholders and the policyholders of both mutual companies.

SAFECO Expects Earnings Sharply Lower
SAFECO Corp has announced that it expects third-quarter earnings to be sharply below projections due to higher-than-expected underwriting losses in its large commercial and homeowners lines.  The company said it expects operating earnings between 5 and 10 cents a share which is similar to the company’s performance in each of the first two quarters of the year.

GA Agent Gets Travelers Contract Through Eagle Agency Program
A small agency in Georgia recently became the state’s first Eagle Agent to receive a direct contract with Travelers.  The IIAA Eagle Agency Program provides qualifying members access to personal lines products through Travelers and the Chubb Group. Once participating agencies reach the program’s minimum volume requirements, they are awarded a direct contract with the respective company.  Currently Alabama has over 25 agencies participating in the Eagle Agency program.  It’s only a matter of time before one of our own agents ‘graduates’ from the program and gets a direct contract. We look forward to recognizing their accomplishment!  For more information or to apply for the program contact P J Peters with IIAA at (800) 221-7917 or pjpeters@iiaa.net.

Get Out And Vote!
Election day is just around the corner and we’d like to encourage everyone to make your voice known in this year’s election!  In addition to the ever important Presidential election, we also have the Alabama Judicial Seats up for grabs.  Let’s make sure that we put pro-business candidates on the bench!  AIIA has mailed and faxed out a voter guide, but if you don’t have it handy and need another, call AIIA at (205) 326-4129 for a copy.  Employers, please remember to allow time off for your employees to go to the polls on November 7th! 

IIAA Convention On the Web
For those of you who cannot make it to Orlando for the IIAA Convention, visit the web site at www.independentagent.com for live video coverage of this premiere industry event.  The Web broadcast goes live at 7:30 p.m. EST on Sunday, Oct 29th and continues through the closing general session.  Quicktime is required to access the live broadcasts which can be downloaded free via http://www.apple.com/quicktime/download/.  For more information contact Madelyn Flannagan at (800) 221-7917 or mflannagan@iiaa.net.
 
 

Small & Rural Conference Offers Info Exchange & C.E. Opportunity
It’s not too late to register for this year’s S&R Conference, A Plan For Today & Tomorrow on October 18-19, 2000 at The Birmingham Marriott on Hwy 280!  You will be brought up-to-date on what legislative issues are currently facing our industry and what we can expect.  You will also get an overview of Scoring and the Fair Credit Reporting Act. There will be four Round-Table Discussions you will want to attend including Long Term Care; Agency Evaluation: How to value, How to enhance, What is true worth of  your business; Good, the Bad & the Ugly, Mandatory Insurance; and finally Multiple Offices:  How to Manage. 

This year we have two dynamite programs for you.  On Wednesday, Dawn C. Kohl, J.D., will be presenting “Perpetuate or Sell”!  So many times as an agency owner, we have thought of what we will ultimately do with our agency.  You are not alone.  This program is designed to give you options you have available.  Why is it important to plan to perpetuate?  What is your agency worth?  How you can tie mergers, clusters, and/or buy-sell agreements to your perpetuation plan.  What factors are used to determine the agency value?  All this and more will be answered in this most requested seminar.  Don’t miss your opportunity to hear this one!

If you’re looking for C.E. - You’ve found it!  On Thursday, Jack Fries of Fries and Fries Consulting will present “Maximizing Your Sales and Income From Your Existing Personal Lines Customers.”  Jack is a nationally known speaker and conducts seminars which make agents more effective by using the tools they already have.  Not only is Jack able to bring something you can use in your every day tasks, but he is also entertaining at the same time.  He has received excellent evaluations everywhere he goes!  You will not want to miss this seminar which will earn participants 4 C.E. hours! You may register for this seminar separately if you would like to attend only this portion of the conference.

Call Nancy Crowe at AIIA (205) 326-4129 to register today.  To make reservations at the Marriott, call (205) 968-3775 and mention that you are with the AIIA Small & Rural Group. 

Hartford Actions Confound Alabama Agents
In a letter dated September 1, 2000, Hartford notified many Alabama agents that the company was temporarily suspending their authority to send new property submissions (homeowners and dwelling fire) effective September 8, 2000 for the remainder of 2000.  They cited the balance of the book as the problem.  There was no advance notice given for the suspension.  In fact, if an agent had bound business, had a check on their desk and had written the coverage already with Hartford, the company would not honor the quote and would not let the agent place the coverage with them.  AIIA is looking into the matter and will keep you updated on new developments.

Educational Opportunities 
If you missed the first two CISR courses this month - NEVER FEAR!  We have three more opportunities for you to attend a CISR course this year!  But don’t delay, CISR - Insuring Commercial Property Exposures will be offered in Tuscaloosa on October 19th, in Sheffield on October 24th and in Birmingham on October 26th.  These are the last CISR courses for this year, so register today!

Also, our last CIC course of the year, CIC - Life & Health,  is being offered in Birmingham on November 1-3.  This is just the opportunity you’ve been looking for to get your C.E. units in before the rush of the holidays begins.  Call Lauren Mashburn at AIIA (205) 326-4129 to register or you may register online at www.aiia.org.

IIAA Applauds NAIC Action on Licensing Model
IIAA is applauding a National Association of Insurance Commissioners’ (NAIC) decision to clarify the intent and impact of the Producer Licensing Model Act.  IIAA was the lone industry group opposed to the inclusion of Section 4(b)8 in the Producer Licensing Model Act.  IIAA felt the original proposal would have created ambiguity in the application of the proposed law and could have unintentionally allowed unlicensed individuals to sell, solicit or negotiate insurance policies, offer advice or make recommendations to some policyholders.  AIIA anticipates an Alabama version of this law to be introduced in the 2001 legislative session.

IIAA Convention & InfoXchange Quickly Approaching
Only a few weeks remain for you to take advantage of the opportunity to mix business and pleasure by bringing your family to Orlando for the 105th Annual IIAA Convention & InfoXchange and Disney’s Magic Kingdom.  Bring the whole family and turn a business trip into a fun vacation for all.  Register online at www.independentagent.com or call (800) 296-0578 and select option #2501.  For more info, call IIAA at (800) 221-7917.

CNA Pledges to Independent Agents
CNA Personal Insurance recently changed its name to Encompass and pledged to sell only through independent insurance agents.  Ernest Lausier, president of Encompass, signed a brand pledge during a nationwide celebration to unveil the new brand.  “We have pledged to sell only through independent agents.  We help independent agents do what they do best - recommend the coverage that best fits their customers’ needs.   We want to be the market leader, the carrier of choice among independent agents,” Lausier said.

Committee Day Not Far Away
Committee Day has been set for October 25th at the AIIA office in Birmingham.  The Commercial Lines, Education, Legislative and Member Services committees will meet from 10-11:30 and the Associate Member Advisory, CIC and Personal Lines committees will meet from 12:30-2.  If you have issues which you would like discussed, please submit them to the AIIA office.  Chairmen - please coordinate with your AIIA staff liaison on your agenda and any handouts.

E-Signature Law Took Effect October 1
A new federal law makes digital “e-signatures” the legal equivalent of pen and paper signatures beginning October 1st. Analysts seem to agree the effect could be no less than revolutionary to the insurance industry.  “The passage of federal legislation giving e-signatures legal validity was crucial in giving insurers and their customers the assurance they need to confidently conduct business online,” said John Savercool, vice president of federal affairs for AIA. “The new law will spur the growth of online insurance transactions and enable companies to offer their customers greater convenience and more competitive services for both commercial and personal lines.”

Chubb Named Top Pick Homeowners Insurance 
Worth Magazine’s Readers Choice Survey names the Chubb Group of Insurance Companies best in homeowners insurance for a second year in a row.  The magazine cites Chubb’s Masterpiece (R) policy as catering “to people who want to make sure they’ll be able to duplicate exactly what they’ve lost.  Chubb is one of only eight repeat winners on the second annual list.

White Mountains Acquires CGU’s U.S. P & C Operations.
Late last month, GCU announced that White Mountains Insurance Group would be purchasing the CGU U.S. P & C operations.  Robert Gowdy, CGU’s U.S. President & CEO, says, ”This new ownership is just what we hoped for - a 100% commitment to both the independent agent distribution channel and to the U.S. property/casualty marketplace.”  The sale is anticipated to be completed with 120 days, subject to regulatory approval.

Employment Opportunities
Underwriting Assistant - Personal lines underwriting experience required.  Rating knowledge and heavy data entry.  Must have good written and verbal communication skills.  Excellent benefits.  Fax confidential resume with salary requirements to (334) 277-5275 or mail to Human Resources, The Gulf Agency, P.O. Box 235008, Montgomery, AL 36123.  Equal Opportunity Employer.

Malibu Insurance Services, Inc. has the following positions available: Personal Lines CSR, Commercial Lines Underwriter/Rater CSR and Receptionist with multi-line experience and cheerful voice.  Fax resumes to (205) 978-7060.