SOUTHEAST REGIONAL NEWS
Effective January 1, the state's new Producer Licensing Law merges the licenses of agents and brokers into a new license called an "insurance producer license." Insurance producers may now charge a fee to consumers for their services as an insurance producer, which previously would have been in violation of the Alabama Trade Practices Law.
The Trade Practices Law prohibited agents from collecting any charge for insurance other than as specified in the policy and in accordance with the rating filed with the insurance commissioner by the insurer. An insurance broker, who may also be licensed as an insurance agent, was permitted to be compensated directly by the consumer for the broker's services in placing the consumer's insurance but, when acting as a broker, could not share in the placing of the agent's commission.
Also effective January 1 was a change to the Trade Practices Law, which now permits producers to charge and collect certain administrative fees as approved by the commissioner of insurance for the processing of property and casualty insurance applications. A statement from the commissioner of insurance's office noted that certain producers may also engage in the practice of providing financial planning advice.
Georgia
State Farm settles car suit
In a move that affects as many as 700,000 Georgia policyholders, State Farm Insurance Company has agreed to settle a class-action lawsuit that will pay about $100 million for the lost value of the policyholders' cars that have been repaired after crashes. The $100 million will pay for diminished car values in accident claims filed since December 1993. Also, the company agreed to pay Georgia policyholders for diminished car values in future claims, a payout that could add $100 million during the next six years, the Atlanta Journal-Constitution reported. In the class-action suit filed in Georgia two years ago, policyholders claimed their vehicles were worth less after a wreck, regardless of how well they were repaired. State Farm had argued that properly repaired cars were not worth less. "We settled this to avoid the uncertainty of future litigation,'' said Phil Supple, State Farm spokesman. "We disagree with the allegations and believe the cars can be repaired to pre-loss condition.''
North Carolina
New senior citizens law goes into effect
Effective January 1, a new law allows insurance companies to require its 55 or older insureds to successfully complete a motor vehicle accident prevention course in order to obtain any auto insurance discounts. According to Gregory LaCost, counsel for the National Association of Independent Insurers (NAII), the new law "is admirable and effective," but he called North Carolina insurance laws "a decrepit system" which needs to be overhauled.
Florida
Workers comp wages increase
The Division of Workers' Compensation has announced that the 2002 statewide average weekly wage is $594. This new amount represents an increase of 4% over last year's statewide average weekly wage of $571. Disability payments under Florida's workers compensation law limits recovery to 66 2/3 of the employee's average weekly wage subject to the state's average weekly wage. Florida law requires that the maximum weekly compensation for disability claims be calculated annually, and this new limit is applicable for losses occurring on or after January 1, 2002.
Agency receives Governor's Award
Leonard Turesky and his company, Van Ameringen's Insurance and Financial Services in Boca Raton, have been honored with the Governor's Community Investment Award for 2001. Given by Governor Jeb Bush, the award recognizes Turesky for his work in supporting juvenile justice programs. Turesky has served three terms as chairman of Together Against Gangs, Inc. (TAG), and currently serves as TAG's chair emeritus. His other current positions include vice chairman of the Florida Department of Juvenile Justice, Circuit 15, and chairman of its operations and legislative committees. In addition, Turesky serves on the Palm Beach County school board's task force for safe schools, the Multi Agency Gang Task Force, and the board of the Florida Business Partners for Juvenile Justice, Inc.
South Carolina
DOI invites input on coastal issues
Dean Kruger, the South Carolina Department of Insurance director of rates and forms, has announced that the DOI's P&C Division will set up an e-mail exchange with agents who wish to provide input on coastal property insurance issues and be updated on new property market developments. Kruger stated: "A dialogue with insurance agents is key to resolving the problem of coastal property insurance availability ... The goal of this process is to speed
up the information gathering and distribution process." For more information, agents may e-mail Kruger at dkruger@doi.state.sc.us. *