Business Moves

Bank of Albuquerque

The Bank of Albuquerque will be the custodian of more than $380 million in deposits from about 1,400 insurance companies doing business in New Mexico.

The bank has been awarded a one-year contract, beginning July 1, to oversee the deposits, the state Public Regulation Commission said.

The deposits help to ensure insurance companies can pay creditors and policyholders.

The bank will be paid an annual custodial fee of 0.165 percent of all deposits, or about $650,000 a year, under the contract with the commission’s Insurance Division.

The current contract is held by Santa Fe, N.M.-based Century Bank.

The Insurance Division had changed the Century Bank contract in 2005 to allow the bank to charge higher fees than allowed by state rules.

The division later changed the contract to comply with the rules.

At one point, Century Bank was receiving an annual fee of 0.25 percent, or more than $900,000 a year. The rate was reduced to 0.2 percent, and Century Bank later refunded some $180,000 in excess fees.

“Under this commission, the ‘backdoor’ to the Insurance Division is now closed,” said Jason Marks, commission vice chairman.

The Century Bank contract also proved controversial because the bank gave nearly $130,000 over three years to Con Alma Health Foundation Inc.

Con Alma is a nonprofit organization that former state Superintendent of Insurance Eric Serna helped found. Serna resigned last year as Con Alma’s board president and retired from his state job.

The state attorney general’s office is still investigating Serna, a spokesman said.

The Bank of Albuquerque submitted the lowest bid for the contract, beating out Century Bank and Wells Fargo.

An evaluation committee consisting of representatives of the commission and the state treasurer’s office recommended that state Treasurer James Lewis award the new contract to Bank of Albuquerque.

“I am satisfied the selection process for the custodial bank was open, fully competitive and transparent to the citizens of New Mexico and the insurance industry,” Lewis said.

Ben R. Lujan, commission chairman, said the commission and the treasurer’s office are working to “strengthen the integrity of the Insurance Division and to restore public faith in the bidding process.”

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Woodruff-Sawyer, Insurance Educational Association

The Insurance Educational Association has presented its Roger L. Smith Excellence in Education Award to San Francisco-based broker Woodruff-Sawyer & Co. The award is presented annually at the National Association of Insurance Women spring luncheon celebrating National NAIW Week.

Candidates for the award are judged on:

•An organization that is a recognized, high profile leader in the insurance or financial services arena;

•One that demonstrates a consistent commitment to the training and development of its staff;

•One that supports education through grants, partnerships, board memberships, community activity and/or other tangible indications of such support; and

•One that has made a significant contribution in insurance or related fields in one or more of the following areas: education, research and legislation

In presenting the award to Woodruff-Sawyer Chairman Doug Morton, Roy Little, IEA’s president, noted that the company achieved top rankings in all categories of excellence. Little congratulated Morton and all employees on meeting the extraordinary standards deserving of the award.

Unigard Insurers, QBE Insurance Group

Washington’s Office of the Insurance Commissioner has approved the sale of three Bellevue, Wash.-based property and casualty insurance companies to an Australian holding company. Officials said Unigard Insurance Co., Unigard Indemnity Co., and Unigard Pacific Insurance Co., will continue operations from the group’s Bellevue offices.

In May, QBE Insurance Group Ltd., an Australian corporation, and its subsidiary, QBE Holdings Inc. of Delaware, filed a request to purchase Unigard Insurance Co., Unigard Indemnity Co., and Unigard Pacific Insurance Co. The three companies are wholly owned subsidiaries of Winterthur US Holdings Inc., a subsidiary of AXA, a French holding company.

Bristol West

Bristol West Holdings Inc. of Davie, Fla., announced that it has begun writing private passenger automobile insurance in Utah. With the addition of Utah, Bristol West now writes insurances in 25 states.

Jeffrey J. Dailey, Bristol West’s CEO, said Utah is the 33rd largest auto insurance market in the United States.

Bristol West writes insurance exclusively through agents and brokers, and indicated it is seeking agents to distribute its products in Utah.

IBA West, LIG Marine Managers

Insurance Brokers and Agents of the West (IBA West) and LIG Marine Managers have formed a partnership to provide IBA West member agents marine and longshore insurance coverage.

IBA West member agents will have a dedicated portal for to submit workers’ compensation/longshore and maritime employer liability accounts. Additional benefits include accounts being reserved pending a full submission, receiving an indication of the premium on most accounts plus having a LIG underwriter assigned to help them through the process. The Web site includes additional tools to assist members in determining if the account is longshore or maritime and the information that should be included with a submission.