News Briefs

ALABAMA

AIIA Conference, Educational Sessions

The Alabama Independent Insurance Agents has scheduled five upcoming seminars in Mobile, Birming-ham and Huntsville.

Oct. 19, Small and Rural Agents Conference, two topics, “Agency Ethics and E&O Risk Management” and “Am I Covered When I Rent a Car?” 7:30 a.m. to 4 p.m., AIIA headquarters in Birmingham. AIIA is expecting many exhibitors; attendees can speak with company and services reps.

Oct. 26, Insuring Community Banks, 9 a.m. to noon, at the AIIA headquarters in Birmingham. Topic: How to leverage Big “I” markets to write all lines of insurance for community banks through St. Paul Travelers. A community bank policy can generate premium up to six figures at 15 percent commission to be a lucrative part of any agency. Speaker: Mark Horton, St. Paul Travelers director of Community Banks will present the course.

Nov. 18, “Extreme Customer Service,” and “Breath of a Salesman,” presented by Infinity Insurance, 8 a.m. to 3 p.m., Huntsville, location to be announced.

Register online at www.aiia.org or call Kimberly Kay or Nita Blankenship at (205) 326-4129. Discount hotel reservations can be made with the Hilton Garden Inn by calling (205) 314-0274 and mentioning AIIA. Participants in courses will receive CE credit.

FLORIDA

FBI Notified of Bribery Allegations

Citizens Property Insurance has alerted the FBI that its former chief operating officer may have solicited bribes from companies doing business with the state-run insurer. Sources close to the investigation told The Miami Herald that attorney Marco Jimenez notified federal investigators about the allegations against R. Paul Hulsebusch, who resigned from the agency after the charges surfaced.

“In an abundance of caution, we wanted to make sure that we got to the bottom of the allegations and allowed the internal investigators the authority to involve law enforcement as they deem necessary,” Justin Glover, Citizens’ spokesman said.

Citizens hired Jimenez, a former U.S. attorney in Miami, and forensic accounting firm Lewis B. Freeman & Partners of Miami after Florida Chief Financial Officer Tom Gallagher ordered a criminal investigation.

Documents obtained by the Herald show Hulsebusch, along with two other Citizens executives, planned to form two companies to do business with Citizens while still employed by the agency, in violation of Citizens’ conflict of interest policy. The other executives, Jessica Buss and Corey Neal, resigned in August.

GEORGIA

Crawford Expanding Adjuster Training

Crawford Catastrophe Services, through Crawford & Company’s continuing education facility, Crawford University, has escalated adjuster recruiting and added training classes. More than 100 individuals are participating in basic adjuster training. Upon completion of training, these adjusters will be immediately deployed to assist the industry in addressing client requirements associated specifically with Hurricanes Katrina and Rita as well as other catastrophic events.

Donations to Help Katrina Victims

Eighty-five agents, agencies and company partner members of the Professional Insurance Agents of Georgia donated more than $23,000 to help the American Red Cross and the Salvation Army meet the needs of individuals hit by Hurricane Katrina.

On Sept. 21 Kimberley J. Stufflet, PIA of Georgia president, presented the association’s second donation, a check for $12,800 to the Salvation Army and American Red Cross. The second check supplements one presented to the organizations on Sept. 14 totaling $8,647.

IIAG Educational Events

The Independent Insurance Agents of Georgia have a series of educational events in October and November to enable agents to meet continuing education requirements.

A new Georgia Insurance Department rule, enacted last year, requires Georgia insurance agents to renew their licenses Nov. 1, instead of the previously staggered dates. Even though Nov. 1 is the renewal deadline, as in the past, agents have until Dec. 31 to meet their CE requirements.

The Ted Carleton Education Foundation, which operates the education program, has of instructor-led and on-line classes which have been offered since January and continue through the end of the year.

“A Blue Print for Gaining Traction With Prospects,” presented by Mark Satterfield, will be a key event during the Oct. 20-21 second annual Ted Carleton Sales Symposium sponsored by the IIAG Young Agents Committee in Tucker, Ga. The event will feature nine hours CE, including ethics.

The symposium will include an ethics seminar by Infinity University, Oct. 20 reception, and Oct. 21 continental breakfast. For information log on to www.iiag.org or call IIAG at (770) 458-0093 ext. 102.

IIAG has structured its AAI program differently. Agents seeking an AAI designation can take three segments on three consecutive days, for nine days during the year. The first two modules have already been held, the third will take place Oct. 26 to 28 in Doraville, Ga. “AAI 83, Agency Operations and Sales Management,” will be presented at IIAG’s main office. Each day represents seven hours of CE credits for licensed P/C agents.

The October series will be taught by Jim Bryan, the retired president of a large, successful independent agency in Georgia. Bryan has a tremendous “real-world” experience, with more than 25 years of insurance production and management experience.

Paul Saye, IIAG education coordinator, said that with new regulations taking effect this year, the benefits of having the prestigious AAI designation are now compelling. Information on the program is available from Saye at 800.878.6487 x104 or psaye@iiag.org.

100 Stations Air T-C Ad Promo

The Trusted Choice national television advertising campaign ended Sept. 25, but as of Sept. 26, more than 100 radio stations across Georgia began to air Trusted Choice radio commercials. According to an Independent Insurance Agents of Georgia spokesperson, the radio commercials will continue through Nov. 6.

Through an IIABA grant, IIAG purchased 24-plus spots through Georgia News Network, a network of more than 100 affiliate radio stations covering 154 out of Georgia’s 159 counties and includes Braves Radio 640GST in Atlanta. More than 2,400 spots will be broadcast in six weeks. A complete listing of station affiliates can be downloaded at: http://ga.iiaa.org/gnn.pdf or e-mail cminardi@iiag.org.

KENTUCKY

Ky., AIK Comp Reach Agreement

The rehabilitation of failed workers’ compensation self-insured group AIK Comp has taken a step toward resolution in Frankfort, Ky., under a tentative agreement reached through court-ordered mediation. At issue had been the plan of reorganization and the method used to arrive at member
assessments.

Some of the involved parties, including rehabilitator Glenn Jennings and attorneys from five of the law firms who represent a large number of group members, appeared in Franklin Circuit Court to present the tentative plan to Judge William L. Graham.

MISSISSIPPI

Katrina Claims Approach 500,000

Almost half a million insurance claims have been submitted by policyholders whose property was damaged by Hurricane Katrina in Mississippi, Alabama and Louisiana, according to George Dale, Mississippi Insurance Commissioner.

“The insurance industry has just been overwhelmed by this storm,” Dale told the Jackson, Miss., Clarion-Ledger, adding the number of claims will keep rising. “There are thousands of policy-owners who had losses. But there are only hundreds of adjusters. And you have to adjust every claim.”

Of the more than 400,000 claims filed in the three states, more than 80 percent, 328,001 were filed with State Farm, according to Susan Lamey, a spokeswoman for the company.

In Mississippi, State Farm has received 113,763 claims. Of those, 88,029 were for home damage and 25,734 for automobiles, Lamey said.

In Louisiana 163,595 homeowner claims were filed and 50,643 automobile claims submitted, she said.

State Farm has more than 3,000 adjusters inspecting property.

Allstate has 2,800 working Louisiana and Mississippi.

Oregon Mutual Helps Miss. Farm Bureau

Oregon Mutual Insurance is donating the time and expertise of its property adjusters to help the Mississippi Farm Bureau handle the thousands of insurance claims related to Hurricane Katrina.

“We are stepping up to the plate to help with disaster relief efforts,” said Michael Keyes, the president of Oregon Mutual told the Salem Statesman-Journal.

In addition to providing personnel, Oregon Mutual has made a commitment to match employee donations to the American Red Cross as much as $1,000 per person.

Oregon Mutual Insurance is a 111-year-old mutual insurer based in McMinnville, Oregon. The company writes property and liability insurance in Oregon, Washington, Idaho and California.

NORTH CAROLINA

Hearings on 9.6 Percent Auto Rate Hike North Carolina Insurance Commis-sioner Jim Long opened hearings in Raleigh, N.C., on a request to raise auto insurance rates by 9.6 percent.

The current annual premium for a driver of a 2004 Ford Taurus in Winston-Salem who drives 10 miles to and from work and does not have any insurance points on his record is $875.92, according to the N.C. Department of Insurance.

Long, who presides over the hearings, will decide what, if any, rate change is warranted. The N.C. Rate Bureau, an independent group that represents auto insurance companies in the state, can appeal his decision through the courts.

Companies can raise rates while awaiting the results of its appeal process. But if the bureau loses its appeals, companies must refund the money to policyholders.

Hearings usually take five to six weeks, Chrissy Pearson, an insurance department spokeswoman told the Winston-Salem Journal.

N.C. Falls to Fifth Lowest Auto Insurance Rates in Nation

Insurance Commissioner Jim Long has announced in Raleigh, N.C., that the state now ranks as having the fifth lowest auto insurance rates in the nation, an improvement of three places over last year’s ranking as the eighth lowest. States bordering North Carolina rank as follows: Tennessee, 11th; Virginia, 13th; South Carolina, 26th; and Georgia, 27th.

The rankings are obtained from a report by the National Association of Insurance Commissioners, which compares the costs of personal automobile insurance in all 50 states and the District of Columbia, based on 2003 data.

Rate decreases have been ordered by Long in 10 of the last 20 rate requests. In five other years, the commissioner decided upon a zero percent change in rates,
keeping them level instead of allowing an increase.

The 2005 auto rate filing from the North Carolina Rate Bureau, which represents the insurance companies, requested an 11.5 percent increase in rates, later reduced to a 9.6 percent requested increase.

Because the Department of Insurance and the Bureau could not negotiate a settlement in this case, Long, serving as the hearing officer, initiated hearings to determine the rate (see previous brief).

North Carolina continues to be the most populous state to enjoy a spot in the top 10 lowest states to rank in the NAIC’s report. Other states with low auto insurance rates have a significantly less dense population than North Carolina, which contributes to their lower rates.

SOUTH CAROLINA

Supreme Court Denies Coverage

The South Carolina Supreme Court
has issued its decision in the case of L-J, Inc. v. Bituminous Fire and Marine Insurance Co.

The court decided that faulty workmanship can not be considered an accidental event or “occurrence” under the provisions contained in a commercial general liability policy.

“PCI agrees with the South Carolina Supreme Court’s decision that faulty
workmanship is not caused by accident” Robert J. Hurns, counsel for the Property Casualty Insurers Association of America, which filed an amicus brief in the case, commented after the verdict was announced.

Bituminous Fire and Marine Insurance Co. brought the underlying declaratory judgment action seeking a determination as to whether a CGL policy issued to L-J Inc. covered damage caused by the faulty workmanship of L-J Inc. and its subcontractors on a road construction project.

Topics Auto Agencies Claims Louisiana Georgia Hurricane North Carolina Property Mississippi Training Development Oregon South Carolina