According to the Weekly Bulletin, published by PIA Insurance Services, Progressive, the fifth largest auto insurer in the U.S., opened a new California subsidiary September 1. Progressive Marathon Insurance Company is designed to be competitive on preferred risks and will be sold through independent agents, on the Internet and via Progressive's toll-free line. Agents will not be able to place business with both Progressive West and Progressive Marathon. Agents who qualify for the new program (and whom Progressive will refer to as their Vanguard producers) will be asked to choose between the two Progressive companies, according to the Weekly Bulletin.
Progressive has established the following eligibility standards for Vanguard producers:
* Underwriting accuracy as determined by violation/disclosure accuracy rate with Progressive.
* A limit on number of nonstandard markets.
* Compliance with Progressive's "information technology vision."
* Minimum volume commitment of 10 new applications per month for Progressive Marathon.
Vanguard producers will receive 12% commission for new business and 8% on renewal. They are also eligible for a contingency program that will pay as much as 4% more of renewal commission based on growth and profitability.
Information on how to become a Vanguard producer is available from Progressive territory sales managers.
Arizona
Tucson agent honored by NAIW
Linda Beeson, CPCU, ARM, CPIW, an account executive for Drachman Leed Insurance, Inc., received the Insurance Professional of the Year Award presented by the National Association of Insurance Women. The award is given to the NAIW member who makes the most outstanding contribution to the association and the industry during the year. Beeson is a member of the Tucson Association of Insurance Women.
California
Management team buys giant San Diego firm
The Robert F. Driver Co., Inc., headquartered in San Diego, has announced the purchase of the company by an internal management buy-out team. Nine senior management members initiated a buy-out of the employee stock ownership plan (ESOP), and all privately held shares, through a tender offer that was consummated during the summer.
According to Driver CEO Tom Corbett, the new ownership's vision includes the creation of a diversified, vertically integrated financial services company with a core emphasis in the insurance industry. National expansion plans are also part of the new ownership's vision.
The Robert F. Driver Co., Inc., employs more than 225 people and generates more than $425 million in annual premiums and fees.
CEA authorizes study of effectiveness of retrofitting
The California Earthquake Authority has ear-marked $90,000 for a study of homes damaged by the Northridge Earthquake of 1994 and the Loma Prieta Earthquake of 1989. The purpose of the study is to determine how effective retrofitting residences is in mitigating earthquake damage.
Two University of California-Berkeley researchers will analyze claims, property damage reports and other data supplied by several of the major residential property carriers in the state.
Results of the study are due next summer. The CEA hopes the results will provide evidence of the benefits of retrofitting as a loss mitigation tool. What's more, the study may serve as an actuarial basis for more significant quake insurance premium discounts for home owners who retrofit. The residential retrofit program, sponsored by the CEA, is currently confined to three counties (Humboldt, Santa Clara and Ventura) the CEA believes. The 5% credit now being offered does not offer enough incentive to most home owners to retrofit.
Hawaii
New auto market available
RLI is adding personal auto to the residential and personal umbrella insurance that the insurer already provides in the state. An RLI spokesman says the auto coverage rates are competitive, especially when auto insurance is purchased as a package with RLI residential insurance.
For additional information about RLI's product offerings, contact Tom Jackson, RLI Communications Specialist, by phone at (309) 692-1000, ext. 347 or via e-mail at tjackson@rlicorp.com.
North Dakota
State's regulatory filings being handled online
The North Dakota Insurance Department is one of 16 states that is online with the NAIC's System for Electronic Rates & Form Filings (SERFF). SERFF is a nationwide software system designed to streamline the process of submitting regulatory filings. (See the related story on page 30.) Insurance companies can obtain state approval for new products or rates electronically--over the Internet or private data network-- via SERFF. *
©COPYRIGHT: The Rough Notes Magazine, 1998