News Briefs

ALABAMA

Ala. Commissioner Asks Carriers for 60 Day Grace Period

Alabama Insu-rance Commissioner Walter Bell has asked all carriers to provide a 60-day grace period for customers who have claims related to Hurricane Katrina to prevent the cancellation of policies from late payments.

GE Insurance Suspends Cancellations

Alabama, Louisiana and Mississippi Big “I” associations have been informed that the Big “I” Professional Liability Program provided by GE Insurance Solutions and underwritten by Westport Insurance Corp. suspended all cancellations and non-renewals on insurance agency professional liability policies issued after Aug. 19.

The moratorium is in effect until Oct. 31. No AIIA member in the Westport program will have the policy lapse until at least Nov. 1. Premium charges for policy extensions will be on a pro rata basis. All state laws will be followed and each policyholder will receive appropriate notice with specifics directly from Westport. In addition, GEIS parent General Electric donated $1 million to relief efforts through the Red Cross.

Other Alabama insurers offering suspended billing and grade periods for payments from Alabama customers affected by Hurricane Katrina include: AFLAC, ALFA, Allstate, Farmers, Nationwide and State Farm are instituting plans; and Blue Cross Blue Shield has suspended billings statewide.

AIIA Launches Hurricane Katrina ‘Blog’

Alabama Independent Insurance Agents have launched a Hurricane Katrina “blog” where information commentary or thoughts about the hurricane can be posted. AIIA created the blog to present all information the association is receiving about hurricanes, claims and related information.

A quick recent check of the blog showed claims information and contact phone numbers, and a report about non-working claims and service numbers.

The blog is at http://www.aiia.org/hurricaneblog.html. Comments and information go to AIIA to be posted.

GEORGIA

PIA of Ga. Donations to Katrina Victims Total More Than $23,000

Eighty-five agents, agencies and company partner members of the Professional Insurance Agents of Georgia have donated more than $23,000 to help the American Red Cross and the Salvation Army meet the needs of individual hit by Hurricane Katrina.

On Sept. 21 Kimberley J. Stufflet, PIA of Georgia president, presented the association’s second donation, a check for $12,800 to the Salvation Army and American Red Cross.

The second check supplements one presented to the organizations on Sept. 14 totaling $8,647.

Stufflet advised there is still time for anyone interested in donating to this worthy cause to send the organization checks payable to either the American Red Cross or the Salvation Army.

“As long as the contributions continue, we will continue to deliver your donations each week,” Stufflet said.

Within days after Hurricane Katrina devastated New Orleans, the Independent Insurance Agents and Brokers of America had established a Katrina Relief Fund.

“We didn’t wait,” Hagler said. “But with the relief fund established by InsurBanc and IIABA, members can make tax deductible contributions on line. The key is to send the help our friends need without delay.”

David Lewis, IIAG president, emphasized this relief is targeted to Big “I” members and their employees.

“I have spoken with agents from the stricken areas,” Lewis said. “Some of our colleagues are homeless and without offices. They are dealing with the same problems as every other hurricane victim, but they continue to take care of their insureds. We are helping take care of them. We are family. They would do the same for us.”

Since 1898 IIAG has been in the business of helping independent insurance agents, Hagler said.

KENTUCKY

Judge Upholds Joint, Several Liability

Franklin Circuit Court Judge William L. Graham has ruled in Frankfort, Ky., that members of the failed workers’ compensation self-insured group AIK Comp are liable for the deficit in its fund.

The ruling affirms the enforcement by regulators of “joint and several liability” among members of self-insured groups. It also ensures continued payments for claims of injured workers.

“This is a major victory for the injured workers who rely on this fund,” explained Glenn Jennings, AIK Comp rehabilitator and executive director of the Kentucky Office of Insurance. “The goal of the rehabilitation always has been to ensure adequate funds exist to pay injured worker claims in a timely manner at the lowest possible cost to AIK Comp members. Now that this obstacle has been overcome, we can move forward to explore ways to achieve that goal.”

The order finds that accusations of fraud and misrepresentation by third parties do not release members from their obligations under the joint and several liability agreements.

AIK Comp entered into voluntary rehabilitation on Aug. 5, 2004. In November 2004, the rehabilitator assessed members for a $58.5 million deficit. In late 2004, the fund was forced to quit writing new business due to litigation over the assessments and uncertainty in the market. The deficit is now $97.3 million and AIK Comp has taken legal action against those members who have not paid the assessment amount. KOI is an agency of
the Environmental and Public Protection Cabinet.

MISSISSIPPI

SouthGroup Online in Jackson

“After Hurricane Katrina, it looked as if a bomb had exploded in Hattiesburg, Miss.,” Gray Montgomery, of SouthGroup Insurance Services told Insurance Journal.

SouthGroup, headquartered in Jackson, Miss., and has a dozen offices across Mississippi, specializing in insurance and risk management products.

“Trees, power lines, and debris were scattered all over the place,” Montgomery said. “The roads were a mess and one was lucky to be able to drive. Homes were damaged, some beyond repair.”

Montgomery said the progress that has been made is unbelievable.

“Ignore the CNN’s and other liberal media that says everything is moving too slow,” Montgomery explained.

“The local, state and federal governments are working extremely well to together. Phone lines are up and we now have power and drinkable water. There are no words that can describe the generosity of this great nation.”