Palmer & Cay, Inc., a regional broker based in Savannah, Georgia, has acquired Powell-Walton-Milward, Inc., of Lexington, Kentucky, one of the state's oldest and largest independent insurance brokerage firms. Powell-Walton-Milward will continue to operate under its own name with no change in management or staff planned.
Palmer & Cay now will be ranked among the 20 largest brokers in North America, according to John E. Cay, III, chairman and chief executive officer.
Powell-Walton-Milward has more than 11,000 clients in central Kentucky and the surrounding region. The family-owned firm employs 80 associates in its downtown Lexington office and is the direct business descendant of America's first independent insurance agency, the Thomas Wallace Agency, which was established in 1807.
Powell-Walton-Milward principals will become shareholders of the privately owned Palmer & Cay.
As a part of the Palmer & Cay organization, Powell-Walton-Milward's clients will have access to an expanded range of national and international support services. Palmer & Cay's corporate resources include self-insured claims administration, retirement and pension plan services, actuarial consulting, and international brokerage services.
Palmer & Cay now will employ 560 associates in 21
offices including Atlanta, GA; Baltimore, MD; Charleston, SC; Charlotte, NC; Dallas, TX; Jacksonville and Palm Beach, FL; Knoxville, TN; Richmond, VA; and Washington, D.C.
Virginia
AIA lauds '99 Virginia legislative session results
The 1999 Virginia legislative session was a very productive and successful one for property/casualty insurers, according to the American Insurance Association. Despite the short, 45-day session, insurers were able to achieve most of their legislative goals in the areas of insurance deregulation, workers compensation reform and the transfer of structured settlements.
An AIA-initiated measure designed to deregulate workers compensation large deductible plans for large risks was unanimously passed by both the House and the Senate this session. "SB 1015 enables large risks to design insurance programs tailor-made for their specific needs, instead of being forced to buy cookie-cutter coverage," said Taylor Cosby, AIA vice president, mid-Atlantic region.
Allowing large risks to negotiate directly with insurance carriers to purchase only the levels of service and insurance protection required for their operations should save them significant amounts of premium," Cosby said. "This increased flexibility also will serve to increase competition in the workers compensation insurance marketplace, which benefits both businesses and insurers," he added.
Large risks are defined in the legislation as those generating at least $250,000 in annual workers compensation premiums, which is down from the current law's level of $500,000. The bill will exempt from certain rating requirements large deductible plans that include a per-accident deductible of at least $100,000.
A number of other key workers compensation measures were acted on this session, as well. HB 2046, which would have expanded the number of doctors on workers compensation physician panels from three to five, was defeated. "Finding five physicians qualified to treat workers can be difficult in certain parts of Virginia, particularly in some of the more rural areas," Cosby explained.
Another bill pertaining to physician panels was supported by AIA and passed by the legislature. "HB 2067 will allow employers of insurers to include chiropractors on the physician panels furnished to injured employees, if they choose to do so," said Cosby.
A new issue of great importance to AIA this year was the transfer of structured settlements. HB 1992, an AIA-sponsored measure that requires court approval of all factoring transactions involving the transfer of structured settlements, was approved by the legislature.
Cosby noted that many of the bills sponsored by the Virginia Business Coalition on Workers' Compensation, of which AIA is a Steering Committee member, were approved by the legislature this session. "The key element in most of these bills is that they provide insurers and employers with more flexibility," Cosby said.
"For example, HB 3132 will permit the Workers' Compensation Commission to exercise some discretion in waiving the late payment penalty in certain instances. Also relating to payments, HB 2271 will suspend payment of a workers compensation award pending the outcome of an appeal from the decision of the Court of Appeals to the Supreme Court."
Finally, HB 3131 requires that injured workers' medical reports be shared with workers compensation insurers. "It is virtually impossible for insurers to ensure that injured employees get the medical care they need and the other help they require in order to return to work unless the insurer has the opportunity to review the appropriate medical records," Cosby said. *
©COPYRIGHT: The Rough Notes Magazine, 1999