Following Governor Bill Graves' recent signing of H.B. 2081, Insurance Commissioner Kathleen Sebelius is advocating a new competitive rating system for some types of insurance.
With the enactment of this law, Kansas will move from a government-controlled prior approval rating system for property and casualty insurance to the file and use system which allows the competitive marketplace to determine rates. This law effectively deregulates most types of commercial insurance purchased by businesses in
Kansas.
This file and use rating law preserves the right of the insurance commissioner to intervene if the commissioner determines that the market is not competitive. In fact, the new law allows the department of insurance to better protect policyholders and consumers by focusing on the fairness and amount of competition in the insurance market and spend less time reviewing cost data.
Missouri
MAIA launches earthquake task force
One of MAIA's key goals for 1997 was to form an earthquake task force to study possible solutions for the earthquake coverage problem in southeast Missouri. That task force held its first meeting in late April, under the direction of MAIA President Charlie Brown.
As a long-term solution, the task force recommended investigating the possible creation of a state reinsurance pool which would provide a financial backstop to insurers in the event of a major earthquake. In order to do so, the task force decided that it needed the input of direct writers.
As originally established, the MAIA Earthquake Task Force includes independent agents from southeast and eastern Missouri, and representatives from insurance companies that write homeowners and dwelling fire coverage, reinsurance markets, excess and surplus lines markets, and the Missouri Department of Insurance.
Arkansas
Tennessee group purchases Colonia's PAP business
Graward General Companies, Inc., of Nashville, Tennessee, has entered into an agreement to purchase the personal automobile insurance business of Colonia Underwriters Insurance Company, of Ft. Smith. The acquisition will make Graward General the second largest writer of non-standard automobile insurance in Arkansas.
Graward General acquired the facilities and staff of Colonia's Ft. Smith office and will continue to service business at that location. For the remainder of 1997, new non-standard automobile business will continue to be written with Colonia. Newly written business, as well as run-off business, will be transferred to Generali--U.S. Branch, of New York, New York, through a 100% quota share reinsurance agreement.
Graward General Companies, Inc., is a managing general agency which writes private passenger automobile insurance business in 10 states through approximately 2,300 independent insurance agencies. All of Graward General's private passenger automobile insurance business is underwritten by Generali--U.S. Branch, rated A:XV by the A.M. Best Company.
Nebraska
IIAN convention scheduled
The 90th Annual IIAN Convention will be held October 2-3, 1997, at the Cornhusker Hotel in Lincoln.
The two-day format provides maximum programming in the least amount of time. Classes in E&O Commercial Lines and E&O Agency Management have been approved for three hours of Ethics continuing education credit and qualify for the IIAN E&O Loss Control credit.
The keynote speaker will be Robert Ian, a magician, hypnotist, mentalist and motivator, and author of Expanding the Power of Your Mind. Emphasizing that the key to managing change is clear communication, through the use of a highly interactive format and group discussions, he will help agents learn to translate vague ideas into specific action steps.
Dan Nulty, CPCU, CIC, will present "Business Income Coverages," covering topics ranging from the purpose of time element coverage to the various business income endorsements and steps to determine how much business income insurance to buy.
Rick Morgan, one of the nation's leading independent agency automation consultants, will present two seminars during which he will discuss automation and what it means to an agency, and how to survive the demo process once you decide to automate your agency.
Jack Fries' "Best Practices Leadership" seminar, will focus on the handbook, The Five Practices of Highly Effective Leaders. By describing how some of the most effective leaders instigate change for improvement, the seminar will provide the basis agents need to make positive and profitable change.
For registration information contact the IIAN by phone at (402) 476-2951. *