SOUTHWEST REGIONAL NEWS
In February, the Texas Department of Insurance approved the first batch of mold exclusion endorsements for commercial property and liability policies, with more likely to follow as companies file for approval. The property endorsements can be expected to amend the ISO commercial property policy to provide (1) an absolute exclusion of mold damage, remediation and testing, or (2) coverage limitations for mold damage, remediation and testing (such as $25,000) with an additional sub-limit for testing ($5,000), or (3) coverage limitations (as described above) with the option of purchasing additional limits. The liability endorsements generally can be expected to apply mainly to contractors.
In late 2001, Texas Insurance Commissioner Jose Montemayor restructured the state's residential property policies to stress consumer choice on mold-related insurance coverage while helping Texas avoid a residential property insurance availability and affordability crisis. The order retains coverage for removal of mold related to certain water damage that is covered by residential property policies, including the most commonly purchased HO-B Homeowners Policy. But it eliminates coverage for some procedures, such as testing, treating, containing or disposing of mold beyond that necessary to repair or replace property that is physically damaged by water. According to Montemayor, such procedures have contributed to unexpected and dramatic premium increases. Policyholders have the option, however, to purchase additional coverage that includes those procedures.
Insurers must offer applicants all levels of coverage in addition to the coverage in the basic policy. Montemayor's order also eliminates "stacking" of claims within the same policy year, a process that has allowed some homeowners to collect more than 100% of their policy limits by filing several separate mold-related claims. Under the order, which still leaves Texas with more mold coverage than other states, insurers could begin offering the new coverage as early as January 1, 2002, but no later than January 1, 2003.
Oklahoma
Association plans meeting
The Oklahoma Young Agents Annual Leadership Conference will be held June 21-23, at the Shangri-La Resort in Afton. For more information, visit the Independent Insurance Agents of Oklahoma (IIAO) Web site (www.iiaok.com) or call (405) 840-4426.
Missouri
Association plans meetings
The young agents of the Missouri Association of Insurance Agents (MAIA) will host a conference June 2-4 at the Country Club Hotel and Spa, Lake of the Ozarks. The MAIA will hold its annual convention July 18-20 at Tan-Tar-A Resort, Lake of the Ozarks. For more information, contact MAIA at (573) 893-4301.
Louisiana
The Independent Insurance Agents of Louisiana (IIAL) will hold its annual convention June 19-23 in Destin, Florida. For more information, contact IIAL at (225) 819-8007.
Colorado
State Farm raises rates
Effective February 1, State Farm Mutual Automobile Insurance Company raised its overall rate level an average of 11.5%. The majority of this rate increase is the result of a 50% jump in premiums for personal injury protection coverage, which primarily pays for medical treatment by physicians, chiropractors and other providers resulting from a car crash. According to State Farm, liability coverage is going up by a lesser extent.
Iowa
Vaughan serves as NAIC president
Iowa Insurance Commissioner Terri Vaughan is serving as 2002 president of the National Association of Insurance Commissioners (NAIC). She has been commissioner of the Iowa Insurance Division since August 1994. Prior to that appointment, Vaughan served as director of the Insurance Center at Drake University, and as a consultant with Tillinghast, a Towers Perrin Company.
State insurance industry grows
According to the Independent Insurance Agents of Iowa (IIAO), 11,300 (net) new jobs have been added to the state's insurance industry in the past 14 years. In 1988, Iowa's total insurance industry employment was 28,800, compared to 40,100 in June 2001. This represents more than a 39% increase for the industry as compared to an increase of the total labor force in the state of just 5.6% during that time period.
Association plans meeting
The Independent Insurance Agents of Iowa (IIAO) will hold its annual convention May 15-16 at
the Holiday Inn University Park in Des Moines. Chris Wallace, a senior correspondent for ABC's "Prime Time Thursday," and frequent host of "Nightline," will speak at the meeting. For more information, contact IIAO at (515) 223-6060. *