Declarations

October 23, 2006

Toe to toe with the gecko
“GEICO is an incredible opponent for local independent agents. We simply decided to compare ourselves with the largest insurance marketer in the United States. With over one hundred companies to offer our clients, we know what we have to offer is superior.”

–Texas independent insurance agent Al Boenker of the Al Boenker Insurance Agency. Boenker’s latest advertising campaign puts him up against the gecko, making fun of the GEICO marketing icon, and giving consumers a reason to call him instead of GEICO. The ads include Boenker comparing notes with a gecko-costumed actor and the two picking on each other in the spots. The spots can be viewed at www.thanksal.com, as well as on other sites, such as Google Video, YouTube and Yahoo Video.

Clear, but not that clear
“Clearly there is uniform agreement that we need to do something to eliminate this problem.”

–Louisiana House Republican caucus chief, Rep. Jim Tucker, explaining that while state lawmakers are in favor of a relief plan for the Louisiana Citizens Property Insurance Corp., agreeing on a way to structure it is another matter. Republican lawmakers say Gov. Kathleen Blanco’s plan to bail out the insurer of last resort creates unnecessary debt; state Treasurer John Kennedy said there’s enough existing state money to cover the bailout costs; and higher education and health groups are expected to object to tapping into tobacco settlement dollars that currently fund their programs.

Citizens borrowed $1 billion to pay off claims after hurricanes Katrina and Rita. To pay off the debt Citizens is assessing private insurance companies a regular fee they can pass onto all their Louisiana customers but Blanco and state lawmakers want to reduce the impact of the assessments on homeowners and businesses.

Blanco proposes using part of an expected budget surplus and one-third of a $150 million state emergency fund to provide short-term relief for Citizens – and to send refund checks to cover a one-time 15 percent insurance premium surcharge assessed on policyholders. To cover the rest of Citizens’ debt, Blanco proposes selling the 40 percent remainder of the state’s share of the national tobacco settlement, which involves selling bonds to investors and creating more state debt.

Promoting healthier businesses and citizens
“One of the major factors in health care and business costs is the alarming percentage of citizens without health insurance. By increasing the numbers of Oklahomans with adequate health insurance, we can produce healthier businesses and healthier citizens.”

–Oklahoma Gov. Brad Henry, commenting on the expansion of a voluntary program, in which the state covers 60 percent of the costs, employers pay 25 percent and employees are asked to pay 15 percent. Henry recently signed Oklahoma Health Care Authority rules that expand eligibility for the program from businesses with 25 or fewer employees to businesses with up to 50 workers. The program was a key part of the governor’s health care agenda in 2004. He signed a bill earlier this year expanding the program.

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Insurance Journal Magazine October 23, 2006
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