Progressive Paloverde, the Progressive Group’s direct distribution company, and Progressive Security, the agent distribution company, are amending their rate filings to resolve the dispute with Independent Insurance Agents and Brokers of Louisiana (IIABL) at the Louisiana Insurance Rating Commission (LIRC).
These revisions address the concerns of IIABL members in a positive manner. In July 2003, Paloverde filed initial rates and rules for a new direct distribution program. IIABL expressed concerns that customers of agents selling the Security product would not receive some new rating rule advantages included in the Paloverde filing. IIABL filed a written complaint with the LIRC objecting to the Paloverde filing, which was finally approved at the September 2003 LIRC hearing.
IIABL continued to express agents’ concerns that their customers should receive the same benefits as those in the Paloverde filing. At the January 2004 hearing, the LIRC asked representatives of Paloverde to meet with IIABL and try to resolve the conflict.
On Feb. 3, 2004, representatives of Paloverde and Security met with the IIABL Executive Committee. Paloverde was represented by Scott Ziegler and Dave Williams. Security was represented by Tim Madden. IIABL was represented by Wayne Cunningham (president), Craig Thomson (president-elect), Lee Schilling (secretary-treasurer), David Daniel (state national director), Joe O’Connor (past president), John Smestad (technical affairs), Jeff Mohr (executive committee member) and Jeff Albright (IIABL CEO).
After extensive negotiations, Paloverde, Security, and IIABL agreed to a three-part compromise. First, Paloverde agreed to remove from their program the Low Payout Accident Waiver and 25 percent Discount For Minors When Parents Have Been Insured for 24+ Months. Second, Security agreed to add the Discount for Students 100+ Miles From Home to the agents program. Third, Paloverde convinced IIABL that the Prior Limits of Insurance and Driver Points By coverage rules did not create a disadvantage for Security agent customers, and IIABL removed their objections to these issues.
Although individual rates with the Paloverde direct program will be different from the Security agent program, overall, the programs are very comparable. In addition, Security plans a major revision to the agent program next year, which will provide additional benefits to agent customers.
Paloverde and IIABL met at the LIRC offices on February 18 and signed an agreement on the compromise, which states, ” … The parties support the two amendments to the Paloverde filing that address the concerns of agents. Mr. Albright and his Board, Progressive, and the Department are aware of the details of this amended filing and find it to be legal, nondiscriminatory and in the best interest of the public.”
IIABL would like to thank Scott Ziegler and Dave Williams of Paloverde for addressing the concerns of IIABL members, and Tim Madden of Security for enhancing the agent program and bringing the parties together to resolve the dispute.
Editor’s note: This article originally appeared in the February 2004 edition of the IIABL newsletter, Louisiana Agent. It is reprinted here
with permission.
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