Governor Pete Wilson has signed a measure, SB 1329, that rewrites the rules of the road for teen drivers who turn 16 on or after July 1, 1998. The bill institutes "graduated" driver's licensing standards for teenagers and places California in line with 20 other states and countries that have enacted similar statutes. SB 1329 does the following:
* Requires drivers younger than 18 to hold an instruction permit for six months, compared with the current 30-day requirement.
* Mandates that parents certify in writing that they have spent at least 50 hours, of which at least 10 hours must be at night, driving with their teenagers before the teens can receive a license.
* Prohibits during the first six months of licensure teens who are 16 or 17 from driving with other teens as passengers unless an adult (at least 25 years old) is present in the vehicle.
* Prohibits during the first year of licensure teens from driving between midnight and 5 a.m. unless the trip is necessary for work, school, family or medical reasons.
The provisions of SB 1329 will be enforced by police only if a driver is stopped for another violation. Teens not in compliance with the law could face fines of as much as $50 or be required to perform as many as 24 hours of community service.
Oregon
WC premium reductions announced
Oregon Governor John Kitzhaber announced that Oregon employers will receive an average reduction of 15.6% in the pure premium rate they will pay for workers compensation insurance in 1998.
The new premium rate, which goes into effect January 1, 1998, translates to savings of more than $112 million on employers' workers compensation bills for the year.
Oregon's national ranking in workers compensation costs has improved from the sixth most expensive in the nation in 1986 to 34th in 1996.
Montana
State Farm simplifies homeowners, adjusts rates
State Farm Fire and Casualty introduced a revised and simplified homeowners insurance policy for customers in Montana. At the same time, the price of homeowners insurance sold by State Farm in the state increased an average of three-tenths of 1%.
Under this new program, policyholders will be offered several different coverages and options; premiums will be figured accordingly.
Additionally, State Farm introduced a utilities rating plan that replaces the new home discount. Discounts are increased if the utilities in a customer's home aren't more than nine years old or if the home's utilities have been completely renovated with new wiring, plumbing and heating/cooling systems within the past nine years. Policyholders will be charged extra if their home's utility system is 40 years old or older.
Ronan agent honored
Robin Nelson, CIC, AAI, CPIW, was named the IIAM Agent of the Year at the IIAM's convention held in Kalispell. This award is presented to an individual from an IIAM member agency for outstanding contributions to the improvement of the association.
Nelson followed her father, C.A. (Bill) Bishop, 1967-1968 IIAM past president, into an insurance career. After working in her father's agency as a high school student, she graduated from the University of Montana, dabbled a bit in other business fields, and then returned to the insurance industry, working at first with Larry Larson & Associates, in Missoula.
In 1983 Nelson returned to the family agency as manager of the two-person Ronan office. Today that office is a five-person operation.
Nelson became active in the IIAM and served as chairperson for the Young Agents Council. She was appointed to the IIAM board and in 1994 was elected as IIAM vice president. Later as president, she served as the head of IIAM Management Team made up of the elected officers of IIAM, PRIM and MIEF. She has led the association during a time of change and has encouraged the other leadership to work for the common good of the membership.
California
Farmers merges with Zurich
Los Angeles-based Farmers Group of Insurance Cos. announced a merger involving London-based B.A.T. Industries PLC, parent of Farmers, and Zurich Insurance. The resulting entity will be known as Zurich Financial Services Group, which will become the third largest property/casualty insurance group in the United States.
The Wall Street Journal reported that the B.A.T.-Zurich coupling would be owned by Zurich shareholders (55%) through a Swiss operating company and by a B.A.T.-connected British holding company (45%). Rolf Hueppi, chairman of Zurich, will become chairman and chief executive officer of the new company, which will be based in Zurich, according to the Journal.
A Zurich-B.A.T. merger could have major ramifications for Farmers agents. In June, Zurich bought Scudder, Stevens & Clark, a mutual fund manager. The Journal speculated that Farmers' sales network is a "likely distribution vehicle for Scudder financial products." *
©COPYRIGHT: The Rough Notes Magazine, 1997