AIIA Receives IIAA's L.P. McCord National Education Award
IIAA honored key state associations committed to education and a dedicated independent agent who continues to stregthen the independent agency system, announced IIAA President Bill Hoffmann. The L.P. McCord National Education Award and the Matthew A. Cantoni, Jr. Techical and Risk Management Award were presented during IIAA's National Board of Directors meeting help immediately prior to the Hawaii InfoXchange thaking place Oct. 27-30 at the Sheraton Waikiki in Honolulu.

The L.P. McCord National Education Award is annually presented to the state association that has provided its members with the best opportunity to broaden their knowledge of the insurance profession, judged according to innovation, single-best seminar, and non-seminar education services. In the category of "Less than 250 Members," the honor went to the Independent Insurance Agents of New Mexico. In the "250-460 Members" category, the award was presented to two associations, the Alabama Independent Insurance Agents, Inc. and Independent Insurance Agents & Brokers of Washington. The "More than 1000 Members" category was bestowed on the Massachusetts Association of Insurance Agents. Please join us in saying, "Congratulations, Vic McCarley and Lauren Mashburn!"
The Matthew A. Cantoni, Jr. Technical and Risk Management Award, given annually to an individual or state association that has significantly contributed to IIAA's Technical Affairs Committee and makes a difference in his or her community, was presented to Karen Regan, CPCU, ARM, AAI, CIC of Little Rock, Ark. Regan, past chairperson for IIAA's Consumer and Technical Affairs Committee, continues to be an advocate for independent agents. Regan performed a critical role for IIAA and the Insurance Services Office on form changes, particuarly with those dealing with pollution exclusions.

Trusted Choice: Excitement Mounts for Trusted Choice!
It is our pleasure to announce two very exciting developments for the Trusted Choice branding initiative:

1. The first phase of www.TrustedChoice.com is complete, and IIAA member agencies may now register for the program online. The 9-step sign-up process takes about 20 minutes and will involve inputting information about your agency for use in the new Trusted Choice agency locator; this will enable us to direct consumers to the Trusted Choice agency that best fits their needs. Over the next two months, we will be completing the consumer phase of the site, with plans to "go live" in January
2. Four insurance companies have signed on as Founding Sponsors of Trusted Choice: Encompass Insurance, The Hartford, National Grange Mutual/Old Dominion and Safeco. These companies are demonstrating a real commitment to independent agents, and we greatly appreciate their leadership and partnership. We strongly encourage all IIAA member agencies to sign up for Trusted Choice and to talk with your companies about supporting this valuable brand. Together we can better communicate our value to consumers and drive them to our channel. In the comming months, we will be sharing more detaild information with you about this program, but we wanted you to be the first to hear about these exciting developments.

IIAA Calls for Passage of Remedy to Terrorism Reinsurance
The issue of terrorism reinsurance is so vital to the future of American business - large and small alike - and to the health of the nation's economy that it need's Washington's immediate attention, says IIAA President-elect Tom Ahart. "Without a backstop for acts of terrorism, most insurance companies have two options: leave markets or charge significantly higher premiums. The specter of either option has dire ramifications for many business owners and agents and brokers who have a large book of commercial policies," says Ahart. The potential impact on the independent agents and brokers, who write 75 percent of all commercial lines policies in the United States, and their business clients is a major concern to IIAA, say Ahart. The urgency for government action became apparent in the weeks following the Sept. 11 terrorist attack when many domestic and foreign reinsurance companies stated that they would no longer offer coverage to primary insurance companies for terrorism-caused losses when new contracts go into effect on Jan. 1.

In testimony submitted on Capitol Hill, IIAA strongly urged Congress to pass legislation to remedy the availability of terrorism reinsurance in the wake of the Sept. 11 tragedies. "Without a layer of reinsurance protection, most insurance companies warn that they cannot support repeated terror claims and will leave markets, exclude terrorism coverage or charge higher premiums that could make insurance coverage unaffordable and largely unavailable for many business owners," said IIAA CEO Bob Rusbuldt. The industry has been very clear that it can handle the $40 billion to $50 billion in losses from the first terror attacks. But looking prospectively, the industry cannot and should not be expected to provide coverage for an uncertain number of attacks in the future - that cannot be scientifically modeled - without the establishment of a governmental mechanism that can provide a backstop to ensure that the industry will be able to continue offering coverage for damages caused by terrorism. By establishing such a backstop, the industry will be able to restore coverage for the millions of businesses that will otherwise be unable to renew their current insurance policies and will be able to restore the confidence customers rely upon in securing their needs through all insurance policies, explained Rusbuldt.

Updates to AIIA's Fax-on-Demand / Education
AIIA has uploaded 2002 class schedules, course listings, self-study information and registration forms to our Fax-on-Demand system. Just a phone call away! Call toll-free 1-877-669-1872 and follow the voice prompts to select your document number and to imput your fax number. Document will be faxed in just a few moments.

Here's what's new:
 

Employment Opportunities

Commercial Lines P&C Customer Service Representative needed in Pelham/Alabaster area. Two years prior experience is required and must hold agents or service representative license. Send resume, with references, to: The Insurance Store, Inc., P.O. Box 947, Alabaster, AL 35007, or call 663-2905 to schedule an appointment for interwiew.

Experienced CSR Seeks Position. Licensed P&C with 4 years total CSR experience, 3 in insurance industry, and was the only CSR in office, therefore handling all office management, files, claims, payments, etc. Anywhere between Birmingham and Pell City would be great. Please call Teresa at (205) 640-7956.

IIAA Backing Terrorism Reinsurance Pool Proposal

IIAA is supporting a proposal to create a $10 billion, government-backed reinsurance pool that would make the U.S. Treasury the "insurer-of-last-resort" for damages caused by future acts of terrorism. Although the insurance industry can handle claims arising from the first attacks, the fear in the industry, the Bush Administration and Congressional lawmakers is that a subsequent attack could severely deplete industry capitalization and reserves and threaten the viability of a large number of insurers. Already, many reinsurance companies have indicated that when contracts come up for renewal on Jan.1 they will not extend reinsurance coverage of terrorist acts. Without reinsurance protection for these acts, insurance companies have two options: leave risky markets entirely or charge significantly higher premiums for policies. Either option has dire ramifications, primarily on commercial lines insurers and agents and brokers who write a large book of commercial business. To fill the gap and to provide stability to the U.S. economy and the insurance industry, IIAA, insurers and company trade groups are working on a draft proposal that will provide crucial reinsurance protection for terrorists acts to primary insurers. The concept largely mirrors the IIAA-backed natural disaster reform bill - the Homeowners Availability Act (H.R. 21) - in that it establishes the U.S. Treasury as the final reinsurance backdrop. Under the proposal Congress would set up a state-charted Homeland Security Mutual Reinsurance Co., a mutual reinsurer that would itself be reinsured by the U.S. government. Primary insurers, who chose to participate, would continue to offer policies that include coverage for damage from terror attacks, but the portion of the premium assigned to terror risk would be forwarded to Homeland. That company would then amass the forwarded premiums and use the money to pay reinsurance claims in the event of future terrorist destruction. The draft proposal is largely similar to a terrorism reinsurance mechanism- Pool Re -established by the British government after a string of Irish Republican Army terrorist attacks in the early 90s. Insurers cite a plan used since last decade in Britain, in which insurers pool their resources for a layer of reinsurance, and rely on the government to cover losses when the pool is tapped out.
Senator Shelby to get Top GOP Spot on Banking Panel
The seniority-driven structure on committees of the U.S. Senate means Sen. Richard Shelby, R-Ala., will move into the top Republican spot on the banking panel when Sen. Phil Gramm, R- Texas, retires next year. Gramm is not seeking reelection. Shelby would either become the ranking minority member or chairman, depending on which political party controls the Senate after the 2002 elections. Shelby is also a member of the panel's three subcommittees on financial institutions, securities and investments and housing and transportation. 
Credit Scoring Issues? Your examples needed!
Recent discussions with the Alabama Department of Insurance have resulted in the need for this office to be able to cite cases of non-renewal of personal lines policies or any problems due to excess credit scoring. If you have an example of underwriting problems with companies due to credit scoring standards, please relay these occurrences to Ron Scott at the Association Office either by e-mail at rscott@aiia.org or phone at (205) 326-4129. A follow-up meeting with the DOI will be scheduled once we have examples of credit scoring abuses in hand. 
NAIC to Hold Summit to Discuss Terrorist Attacks
The National Association of Insurance Commissioners (NAIC) will hold a summit on October 22-24, 2001, to discuss in greater depth the insurance issues related to the recent attacks. The summit will be held at the Omni Shoreham Hotel in Washington, D.C., and will involve regulators, industry representatives, Congressional members and key insurance department staff. "The recovery and rebuilding process will be difficult, and it will require partnership among insurers and all financial services regulators," stated NAIC President and Kansas Insurance Commissioner Kathleen Sebelius. "This summit provides an opportunity for us to focus our energies on helping the nation recover from this tragedy." 
Reliance Insurance in Liquidation
Reliance Insurance Company has been placed in liquidation, Pennsylvania Insurance Commissioner M. Diane Koken announced this last week. Koken said Commonwealth Court approved the Pennsylvania Insurance Department's liquidation petition October 4. The order applies to all the former subsidiaries that were merged into Reliance Insurance Company. Those include: Reliance National Indemnity Company, Reliance National Insurance Company, United Pacific Insurance Company, Reliance Direct Company, Reliance Surety Company, Reliance Universal Insurance Company, United Pacific Company of New York, and Reliance Insurance Company of Illinois. On September 28, Reliance completed financial statements that showed is total admitted assets of March 31 were $8.8 billion. Total liabilities were approximately $9.9 billion, leaving the company in a negative surplus position of $1.1 billion. A Pennsylvania-domiciled company, Reliance was licensed to write business in all states, although it stopped writing most new or renewal business in June 2000. Reliance Insurance Company's business consisted primarily of workers' compensation, commercial auto, commercial liability and personal auto coverage. Pennsylvania regulators took control of the company May 29 under an order of rehabilitation. 
AIIA Web Site Under Construction, Update Coming Soon!
As you may have noticed, AIIA's website, www.aiia.org, is overdue for an update. Please pardon our progress as we begin revitalizing the site. As always, you can still register for educational courses. We apologize for any inconveniences this may cause. 
Make Plans to Attend IIAA's Hawaii InfoXchange
Honolulu, is the host city for IIAA's 2001 InfoXchange. More than 2,000 insurance professionals are expected at the Sheraton Waikiki October 27-30 to discuss industry issues, share new business ideas, develop professional relationships and access training on the latest technologies. The annual meeting will include the launch of IIAA's new marketing brand, Trusted Choice, plus a wide variety of technology workshops, innovative continuing education classes, new Best 
Practices opportunities, a series of prominent speakers, one of the largest exhibit halls in the insurance industry, the Young Agent Leadership Conference and many other exciting features. Republican political commentator Laura Ingraham; Democratic strategist Paul Begala; Ken Blanchard, author of One Minute Manager; and Insurance Learning System President Russ Granger are just a few of the notable presenters. Registration forms are available online atwww.independentagent.com, by calling (800) 221-7917 or through IIAA's fax-on-demand service at (800) 296-0578, option 4010. 
Global Insurers' Updated Losses from WTC Attack
American International Group Inc. on Tuesday raised its estimate of losses from the destruction of the World Trade Center to $800 million from $500 million, joining a list of insurers upping their loss estimates. Below is a shortened list of global insurers / reinsurers that have exposure to claims related to the destruction of the World Trade Center, with their estimates for the amount thee expect to pay out. The total cost to the worldwide insurance industry of the attacks was initially put at about $10-15 billion, but has been creeping higher. Analysts currently estimate the loss to be $40 billion or more, making it the costliest catastrophe ever. 
 

AIG	U.S.	$800 million
Chubb	U.S.	$600 million
CNA Financial	U.S.	$200 million-$350 million
Hannover Re	Germany	$367 million
Munich Re	Germany	$1.95 billion
Swiss Re	Switzerland	$1.25 billion

AIIA NEWSLINE's Employment Opportunities

This year's Small & Rural Agents Conference will be held October 10-11 at the Mountain Brook Inn in Birmingham. You will be brought up-to-date on what the latest legislative issues are facing our industry and what we can expect. This year's educational programs will carry a total of 10 hours of CEUs: 1) Homeowners 2000 Program - 6 hours taught by David Thompson, and 2) Environmental Issues - 4 hours taught by Chris Bunbury. The Homeowners' 2000 Program is the most up-to-date program available. Chris Bunbury, an Environmental Strategist and President of Environmental Risk Managers, Inc., (ERMI), began as a commercial insurance agent who was able to observe and learn both the environmental risk produced by business and the opportunities that can arise from proactive environmental management. "The only constant in the environmental business is change," says Bunbury. There will also be two round-table discussions to choose from: National IIAA Membership & Services, or Company/Agency Relationships: Understanding Each Other. Registration and conference information can be faxed to you, please call Nita Blankenship or Nancy Crowe at (205) 326-4129.

RELIEF FUND: America's Survivor Relief Fund Exceeds $186,000 in The Past Week

Contributions to America's Survivor Relief Fund, created IIAA and the Independent Insurance Agents Association of New York (IIAANY), have surpassed $186,000 in just two weeks. One hundred percent of the money raised by America's Survivor Relief Fund will go directly to aiding victims and survivors of individuals killed in September 11 tragedies. America's Survivor Relief Fund is now accepting credit card contributions online, in addition to donations by electronic funds transfer (EFT), credit card by phone, or check through the mail. To make a contribution via credit card, call InsurBanc toll free at 1-866-467-2262. To contribute by check, send a check made payable to America's Survivor Relief Fund, to America's Survivor Relief Fund, c/o InsurBanc, P.O. Box 615, Farmington, Conn. 06034.

A.M. Best Plans to Conference Call to Discuss the State of the Industry and Rating Implications following attacks

On Tuesday, October 2, 2001, at 10:00 a.m. EDT, A.M. Best Co. will conduct a conference all to discuss and comment on the state of the insurance industry and related rating implications following the terrorist attacks of September 11. To participate, please call (800) 288-8976 in the United States, and enter conference ID code number 605907. The conference will begin promptly at 10:00 a.m., and the participants are asked to call at least 10 minutes prior to register. 

Credit Scoring Issues?

Recent discussions with the Alabama Department of Insurance have resulted in the need for this office to be able to cite cases of non-renewal of personal lines policies or any problems due to excess credit scoring. If you have an example of underwriting problems with companies due to credit scoring standards, please relay these occurrences to Ron Scott at the Association Office either by e-mail at rscott@aiia.org or phone at (205) 326-4129. A follow-up meeting with the DOI will be scheduled once we have examples of credit scoring abuses in hand. 

NAIC to Hold Summit to Discuss Terrorist Attacks

The National Association of Insurance Commissioners (NAIC) will hold a summit on October 22-24, 2001, to discuss in greater depth the insurance issues related to the recent attacks. The summit will be held at the Omni Shoreham Hotel in Washington, D.C., and will involve regulators, industry representatives, Congressional members and key insurance department staff. "The recovery and rebuilding process will be difficult, and it will require partnership among insurers and all financial services regulators," stated NAIC President and Kansas Insurance Commissioner Kathleen Sebelius. "This summit provides an opportunity for us to focus our energies on helping the nation recover from this tragedy." 

Hawaii InfoXchange: Healing Hands
As the industry's leading insurance association, IIAA continues to play a key role in addressing the issues that have been raised in the aftermath of the terrorist attacks, but we also are moving forward. After careful consideration, the Big "I" is heeding the President's call to resume normal business activities, and the association's leaders decided that moving forward with the scheduled events was the most appropriate way to proceed. Barring any unforseen event, IIAA will go ahead with this month's Hawaii's InfoXchange as well as with meetings of IIAA's Executive Committee and National Board of State Directors. The tragic events of September 11 have touched us all, but in the end, the unmatched spirit of the American people will prevail. So IIAA would like to remind you that there is still time to register for IIAA's Hawaii InfoXchange, October 27-31, at the Sheraton Waikiki in Honolulu, where our theme of "Grow your Business... Secure your Future" never seemed more appropriate. The InfoXchange will be a valuable step for your agency, a boost to the insurance industry and a healing hand on America's economy. You have the opportunity to learn cutting-edge business strategies from One Minute Manager author Ken Blanchard, see Republican political commentator Laura Ingraham and Clinton White House Senior Advisor Paul Begala battle in a political war of wits, meet Hall of Fame baseball legend Lou Brock, study at IIAA's Sales School with Pro-Ed founder Russ Granger. Registration forms are available online atwww.independentagent.com, by calling (800) 221-7917 or through IIAA's fax-on-demand service at (800) 296-0578, option 4010. 

Houton Joins IIAA's Government Affairs Operation

Robert Houton is the newest member of IIAA's government affairs operation, having joined the staff as a lobbyist and grassroots specialist, announces IIAA Senior Vice President of Federal Government Affairs Maria Berthoud. As IIAA's new Washington representative and grassroots coordinator, Houton will lobby members of Congress and congressional staff on several issues important to insurance agents and brokers such as legal reform, crop insurance, high-tech issues and life/pension/tax issues. In addition, he will manage the Association's extensive grassroots contact network and coordinate legislative and regulatory alert communications to the agents and brokers who are actively involved in the political and legislative process in their communities. Before joining IIAA, Houton was manager of grassroots and political affairs for the Building Owners and Managers Association (BOMA) International.

Report Says Top Insurers Embracing Web for Communication
Top U.S. insurers are turning to the Web to reduce communication costs with both agents and policyholders, says a new report titled "U.S. Insurnace & the Web: An Overview" published by Celent Communications. Thirty-eight percent of the top 100 property/casualty carriers and 54 percent of the top 100 life/health carriers have already implemented some type of Web-based agent extranet. While the Web many not lead to a disruptive revolution in insurance sales, effective use of the Web for customer and agent communications is a critically important evolution for insurance carriers, the report says. The report is available from Celent Communications at www.celent.com.

Continuing Education Opportunities: Agent License School
Spaces are still available for all remaining License Schools. These are the last available dates through February 2002. P&C Agent Licensing Schools will be taught following the schedule below. This course satisfies the Alabama Department of Insurance's 40 hour pre-qualification requirement. The cost, which includes the state approved text books is $220 for AIIA members, and $285 for non-members. Please call Lauren Mashburn at (205) 326-4129 or register online at www.aiia.org.October 8^th - 12^th at the AIIA office in Birmingham, AL 

November 12^th - 16^th at the Four Points Sheraton - Airport in Huntsville, AL
 

Continuing Education Opportunities: CISR - Insuring Commercial Property Exposures

This intermediate level course details commercial property exposures and coverage options. This course is approved for 8 hours of continuing education credit and is one part of the five part series leading to the CISR professional designation. Lunch is provided with the registration fee. 

October 2^nd at the Four Points Sheraton in Huntsville

October 4th at the Bryant Conference Center in Tuscaloosa

October 16^th at AIIA office in Birmingham

October 18^th at the Ramada Plaza, Beltline Highway, Mobile

October 24^th at Courtyard by Marriott in Dothan

October 25^th at The Governor's House Hotel in Montgomery