Business Moves

Republic, American Vehicle

Dallas-based Republic Companies Group Inc. announced an agreement in principal with American Vehicle Insurance Company, a wholly-owned subsidiary of 21st Century Holding Company, an insurance holding company.

The agreement, subject to certain conditions, will enable American Vehicle to underwrite general liability business and other commercial lines in various states through member companies of The Republic Group. Republic operates primarily in Texas, Louisiana, Oklahoma and New Mexico.

Texas Mutual, Texas Star Network

Texas Department of Insurance certified Texas Mutual Insurance Company’s Texas Star Network on March 29. The company was to begin offering the network option to eligible workers’ compensation policyholders with operations in network service areas on April 3.

Eligible employers who choose a policy with the network option will benefit from the network system’s focus on occupational medicine. Most will also receive a network premium discount of 12 percent.

Texas Mutual partnered with Concentra to form the Texas Star Network option in response to House Bill 7. The bill, passed by the Texas Legislature in 2005, is designed to improve quality of care, control health care costs in the workers’ compensation system, and help injured workers return to productive employment. One high-profile provision of the bill allows insurance carriers to contract with or establish networks.

A TDI spokesperson said 19 companies have applied for network certification. Texas Star is the first to be certified by TDI.

Injured workers who are covered by Texas Mutual’s network and live in a network service area will select their treating doctor from the network’s list of occupational health care providers. Texas Star Network case managers will work with injured workers, employers and health care providers to facilitate appropriate and cost-effective health care and return-to-work. For more information visit texasmutual.com.

The Hanover, Connections Auto

The Hanover Insurance Group, Worcester, Mass., launched Connections Auto in Louisiana, expanding the auto product into ten states: Louisiana, Connecticut, Florida, Illinois, Indiana, Maine, Michigan, New York, Tennessee and Virginia.

The company said that with Connections Auto, The Hanover agents can quote and issue new business for 95 percent of the market, accommodating a broad spectrum of customers for all phases of their lives. Risks are tiered by objective and verifiable criteria.

Hanover also said the product is supported by strong, local management, a responsive service team dedicated to first-call resolution, and a streamlined, single platform point-of-sale application, making it easier and faster to use.

“Information obtained from customer applications is evaluated in real time,” said Marita Zuraitis, president of The Hanover’s property and casualty companies. “Risks are quoted quickly and accurately, with tremendous differentiation based on each driver’s individual characteristics and other factors, and new business policies are issued in a straight-through issuance process.”

The Hanover introduced new auto insurance discounts in combination with Connections Auto, including a discount for policies paid in full on the first installment, and a homeowners discount, even if the homeowners policy is with another carrier or the insured is not living in the insured residence.

Bass Underwriters

Bass Underwriters’ Texas office introduced a new online program to assist agents in placing small artisan contractors, including those working on home construction.

The company said the program allows the agent to generate a quote in a few minutes while visiting with the applicant. If the price is acceptable, the agent completes an online application, which is submitted to Bass for approval. Once approved, the agent is in a position to bind the coverage. Certificates of insurance and the completed application are immediately available for signature.

Bass is actively seeking new agent appointments in Texas; this program is one of many facilities available to appointed agents. Contact Wes Bowers or Fred Lusk at the Frisco, Texas, office. Local contact information can be found online at www.bassunderwriters.com.

Bass Underwriters has offices in Florida, California, Georgia, Louisiana and New York, in addition to Texas.

Combined Group

The Combined Group, headquartered in Carrollton, Texas, launched a new online tool to help agents efficiently make binding offers for commercial automobile business. The Automatic Commercial Auto Application pre-fills application blanks with pre-stored data for agents who use The Combined Group’s QuoteExpress quoting and binding system.

Michael Hardin, executive vice president of Marketing, said the combination of a soft market and decreasing commission scales requires commercial insurance agents to become more operationally efficient. The QuoteExpress service was created to give field agents a process that saves time and money, while improving service to clients. According to the company, the system returns data on multiple carriers, enabling agents to select the carrier best for their client. Then agents request a binder by submitting the completed application form generated by QuoteExpress. Agents also receive a completed form for their own internal use.

The process takes place online in a few minutes. Time saved in completing and submitting the application alone saves up to 15 minutes for each transaction.

QuoteExpress also provides the same Single Entry Multiple Company Interface (SEMCI) service for business owner’s package and workers’ compensation insurance plans.

The Doctors Company

California-based medical malpractice insurance provider, The Doctors Company, reported that premiums for new and renewing policyholders in Texas would drop by an average of 18 percent beginning April 1, 2006, for new policyholders and July 1, 2006, for renewals.

The company said Texas physicians will see premium reductions ranging from 10 to 45.8 percent depending upon location of practice, area of specialty and coverage limits. This is the second rate decrease announced within the past year by The Doctors Company, which has also introduced a generous multi-year dividend program for Texas members.

The Doctors Company reduced rates by an average of 14 percent in early 2005; combined with the latest decrease, the company’s policyholders in Texas have seen premiums drop by an average of nearly one-third since 2003. The company noted that its decrease includes significant premium reductions for critical specialties, such as obstetrics and gynecology, and neurosurgery.