Financial Services Conference Report On Hold
Even though there was agreement on the Financial Services Modernization Act (S.900), the legislative language writing for the many compromises reached during the reform measure’s journey is delaying its progress.  It is expected to be voted on in the House by Nov 10th  and the Senate by next week.  Then it is expected to go to the President for signing before Thanksgiving.  IIAA is supporting the conference report because it contains provisions that will lay the foundation for functional state insurance regulation.  These provisions include safe harbor protections from federal preemption for state laws, insurance licensing requirements for all providers of insurance, (i.e. national banks), insurance consumer protections, and many more measures that will limit the Office of the Comptroller of the Currency’s (OCC) ability to preempt state laws and level the competitive playing field for independent agents.

Big “I” Meets with Progressive About Rewrite Program
Jeff Yates, IIAA’s CEO of Industry & State Relations, met with Dan Lewis of Progressive Insurance Company this week to discuss Progressive’s customer-requested rewrite program.   The issue at hand is the use of agent-owned customer information by Progressive following policy lapses or policyholder-requested cancellations.  The company’s new process allows rewriting canceled policies on behalf of the original agent using agent-provided information when requested by the policyholder.  However, if the customer refuses a rewrite with the original agent and a referral agent, Progressive rewrites direct using the agent-provided (owned) information and compensates the original agent ($50.00) for the information. Progressive’s agency contract prohibits its use for the purpose of solicitation, so the definition of solicitation becomes the crux of the issue as well.  IIAA is concerned that the current policy may unfavorably impact agents’ ownership of expirations.  At this time, Progressive has temporarily discontinued the practice until agent concerns can be addressed. 

In a related story in Ohio, Mayfield’s Progressive Insurance has patented a plan using onboard sensors to track policy holders.  The sensors send a regular report on speed, location, use of seatbelts and signaling before turning to company computers for analysis.  Officials at progressive say the “black boxes” have already been placed in several-hundred policy holders’ cars and may help them to offer cheaper auto insurance.

SAFECO To Increase Rates
A problem familiar to many agents - mounting personal auto losses - is taking its toll on insurance companies.  Safeco is joining a growing number of carriers that are raising rates in personal and commercial lines.  With operating earnings expected to be substantially lower than projected, the carrier plans to tighten underwriting, cut expenses and raise rates. 

SAM’S Club Now Offers Insurance
SAM’S Club is now offering the GROUPadvantage Business Insurance Program to its Elite Members.  The program offers Property & Casualty, Commercial Auto, Workers’ Compensation & an Umbrella to businesses and Financial Planning & Long Term Care to individuals and families.

J.R. Prewitt & Associates Make the News
The firm’s celebration of its 25th anniversary recently was featured in The Birmingham Post Herald.  Such recognition of an independent agent is excellent PR for the independent agency system as a whole.  Jack Prewitt has grown his agency from a one-room downtown office to a family business with his sons, Johnny and  Andy Prewitt and his daughter, Kathy Tyner.  The firms now has 31 employees and its own office building on Birmingham’s Southside.  The Prewitts say that building good relationships is the key to their success and the reason why they have thrived for 25 years.  Congratulations on all of your success!

Local Agent Receives Award
Becky Hamilton of McGriff, Seibels and Williams in Birmingham was recently chosen by the Alabama State Council as the Insurance Woman of the Year.  Congratulations on this outstanding accomplishment!

Cal-Surance Discontinues E&O Program
Cal-Surance recently announced that they are discontinuing their E&O program for property casualty agents. This is just another example of carriers who come and go in the E&O market and an excellent reason for agents to look at the IIAA endorsed E&O Program with ERC.  The national endorsement prevents ERC from pulling out of the state and AIIA has an in-house underwriter for convenient support and administration.  For more information on the ERC E&O Program, call AIIA at (205) 326-4129.

Here’s An Offer You Can’t Refuse!
Free CE Hours! Yes, Register today for one of two Free Flood Seminars and receive four hours of CE in the process.  AIIA, in association with The Gulf Agency, is presenting “Flood! Flood! Flood!” on November 9th in Huntsville at the Airport Sheraton and November 10th in Montgomery at the Embassy Suites.  Both Seminars start at 8:00 and end at noon.  Breakfast and door prizes will be on the agenda as well!  Space is limited to the first 50 agent members who register so call Lauren Mashburn at AIIA today at (205) 326-4129. 

Last Agents License School This Year!
The last license school this year will be held at the Bryant Conference Center in Tuscaloosa, November 10, 11, 12, 15, &16 from 8:00-5:00 daily.  We are short of participants so call Lauren Mashburn at AIIA (205) 326-4129 to register.  The cost is $215 for member agencies and $275 for non-members. 

Final E&O Seminars
Arm yourself with the knowledge you need to avoid E&O nightmares by attending an E&O Seminar. The final seminars of the year will be held on November 30th  in Birmingham, and December 2nd and 7th in Montgomery and Tuscaloosa respectively. Call Lauren Mashburn at AIIA (205) 326-4129 to register.

Insurers To Pay More Than $2 Billion
According to estimates by the Insurance Services Office (ISO), insurance companies will pay $2.1 billion for claims resulting from seven natural disasters in the third quarter of this year.  The 831,000 claims from homeowners, businesses and auto owners were from victims of severe storms, including Hurricane Floyd.  This year’s third quarter’s catastrophe losses were the fifth-highest for a third quarter since castastrophe record keeping began 50 years ago.

Premium Financing Qualifies You to Win
Every time you place a contract with Independent Finance, your name is entered into a drawing to win AIIA’s Green Christmas Give-a-way. The drawing for $2500 and one night at the Winfrey Hotel, compliments of AIIA, will be held December 15th, so start placing as many contracts as possible to get your name in the drawing.  For more information, call AIIA at (205) 326-4129. 

State Farm To Expand Banking Services
Only four months after opening to customers in St. Louis and Central Illinois, State Farm Bank is beginning to expand into the rest of Missouri and Illinois offering a variety of services including savings accounts, CDs, money market accounts and checking accounts, as well as auto loans and leases, home equity loans and lines of credit and home mortgages.  The expansion is scheduled to be completed by the spring of 2000.  On a related note, InsurBanc is anticipating immediate approval of their application and expects to begin operations in early 2000.

Southern Agents Conference Reminder
Mark your calendars for the Southern Agents Conference to be held in Atlanta on December 10-12.  Call Laura Barnett at AIIA for more information at (205) 326-4129.

AIIA Education Dept Receives Award at IIAA Convention
The AIIA Education Department received national recognition for excellence by the Independent Insurance Agents of America (IIAA) at the recent IIAA National Convention in Las Vegas. The AIIA Education Department was awarded the prestigious "L.P. McCord Education Award" which honors the best Education Department in each membership category. Victor McCarley, AIIA Director of Education & Technical Affairs, accepted the award presented by IIAA President Bill Greenwood for the association membership category of 250 to 600 members.  "We are pleased that our efforts on behalf of our members have been recognized by the National Association" said McCarley.  "We hope to continue to provide the same high quality education to our members in the future." Congratulations to Victor McCarley and Lauren Mashburn, AIIA Education Coordinator, for this outstanding award!

IIAA Convention A Huge Success
Nearly 2,500 insurance professionals filled the halls of Caesars Palace for the recent national convention which featured the unveiling of the Big "I" Virtual Village, a standing-room-only government affairs panel, two dynamic speakers and a host of exciting technology announcements. The high points of the event include outgoing IIAA President Bill Greenwood's address emphasizing the importance of e-commerce and the incoming President Bill Houston's inaugural address citing his goals for the future.  In addition, the new Executive Committee was installed and IIAA announced its partnership with insure.com, the leading provider of online insurance news and information.  For more information on the agreement, dial (800) 282-9183 and select fax-on-demand option #087 or visit www.independentagent.com.

Members in the News
The CPCU Designees named for the series September 1998 to June 1999 include Charles Cranford, Jr. of McGriff Seibels & Williams, Mark Higgins of Southern Guaranty Insurance Co., Forrest Fitts of the Fitts Agency, Inc. and Thomas Bonhaus of Pritchett-Moore Inc.  In other news, David Hobbs has been appointed Executive Vice President of commercial lines for the insurance agency brokerage firm of Hilb, Rogal and Hamilton and Wendy Cooley and Becky Flynn have formed Cooley and Flynn Insurance Inc. Congratulations to all of you on your accomplishments!

Jury Finds for Policy Holders in State Farm Suit
In a lawsuit against State Farm accusing the company of requiring the use of inferior parts to repair damaged vehicles, a jury in Illinois just awarded $456 million to policy holders.  The company said it would appeal, calling the decision a setback for its customers.  An insurance industry group said consumers might be the ultimate losers since non-original equipment parts cut repair bills by about $800 million a year.  State Farm spokesman Dave Hurst called the development a "major setback," adding "If the verdict is allowed to stand it will mean a move toward a parts monopoly for the automakers and higher repair costs, as well as higher insurance costs."

NALU Changes Its Name
The National Association of Life Underwriters' national board has voted to change the organization's name to the National Association of Insurance and Financial Advisors (NAIFA).

Upcoming Educational Opportunities
The last CISR course that will be offered this year is the Commercial Property Course which will be offered in several locations across the state during October. Don't miss these final opportunities - Sign up today, class space is limited.  Keep in mind that you can register online for education classes at www.aiia.org.  For additional information, call Lauren Mashburn at AIIA (205)326-4129.

VESTA CEO To Speak At Birmingham Agents Conference
Norman Gayle, CEO & President of VESTA will be the keynote speaker at the Birmingham Independent Insurance Agents Conference luncheon to be held Tuesday, October 26, at The Club.  Tickets went on sale the first of October.  For more information, call Cynthia Moss or Laura Barnett at AIIA (205)326-4129.

Wanted: Agents Running for Political Office in 2000
For the second year, IIAA will sponsor an intense campaign boot camp which will be held during Jan. 12-14, 2000 at the St. Regis Hotel in Washington, DC.  The training sessions, lodging, meals and incidentals will be provided free of charge to the candidates accepted for the program.  The campaign institute, which is non-partisan and funded by corporate interests, seeks agents who have a strong business orientation, regardless of party affiliation.  The training campaign is comprehensive and covers campaign organization, grassroots campaigning, fund raising, direct mail, media advertising, media relations and campaign research.

Allstate to use CNA Brand
Allstate has created a new organization, CNA Personal Insurance, to manage the personal lines business it acquired from CNA as a separate independent business unit.  The new business unit will continue to sell CNA personal lines products through independent agents licensed to sell CNA products.  CNA Personal Insurance will sell CNA personal lines insurance under its current CNA brand name.  "The formation of CNA Personal Insurance is a key part of Allstate's new initiative to become the leading provider of personal lines insurance in the $45 billion independent agent market," said Bruce Marlow, president of Allstate's Independent Agency Markets.  The $1.2 billion acquisition of CNA's personal lines business makes Allstate the nation's third largest provider of personal lines insurance through independent agents.

St. Paul Closes Personal Lines Sale
The St. Paul Companies relaunched its core primary insurance business on October 3, 1999 restyling itself as an international, business-oriented insurer, following the sale of its personal lines business.  St. Paul said the sale of its personal lines business to MetLife was a strategic move to focus its property-liability insurance operations on business and professional lines.  St. Paul is underlining the new focus with a $20 million corporate brand campaign, including TV advertisements launched earlier this month.  The sale of its personal lines business - worth about $1.2 billion in premiums per year - mean St. Paul's core property-liability operations, including reinsurance, now produce premiums of about $5.6 billion per year.

Employment Opportunities
Recently reorganized agency has several positions available in Hamilton, Huntsville and Demopolis for experienced commercial lines producers. Please fax a resume to (205) 403-0501 to the attention of Anthony Maulucci.
Local Agency needs office manager.  Must have commercial lines experience.  Excellent opportunity.  Send resume to P.O. Box 55318, Birmingham, AL 35255.  All inquiries confidential.