Hal Brown, an insurance broker with Mareovich, O'Shea & Coghlin in San Francisco, has declared his intention to enter the race for California insurance commissioner. The Weekly Bulletin published by PIA Insurance Services, quoted democrat Brown as saying: "I want to get rid of (Chuck) Quackenbush and restore integrity and fairness to the Department of Insurance." Brown is currently Marin County supervisor.
Brown will confront Quackenbush on the "huge deficiencies in coverage in health care and auto insurance" for starters. He also wants to reduce rates for auto and earthquake coverages.
Hal Brown is a cousin of former California Governor Jerry Brown.
Wyoming
AIA exec calls for remedies to state's fraud problem
A comprehensive approach must be taken immediately to stem Wyoming's growing fraud problem, according to Mark W. Skinner, assistant vice president of the American Insurance Association. Skinner made his remarks before the Joint Judiciary Interim Committee of the Wyoming legislature.
He observed that "by some accounts insurance fraud is costing Wyoming families over $1,600 per year." He called upon the legislature to initiate anti-fraud legislation that would cover all types of insurance and all forms of insurance fraud. Because fraud involves misconduct and irresponsibility by all major players in the insurance system, Skinner said the remedies should be comprehensive as well. Criminal, civil and regulatory tools must be available to address the problem. "AIA fully supports statutory immunity for insurers which will allow the exchange of fraud case information among insurers."
Skinner also discussed the need for license revocation in cases where licensed professionals (doctors, lawyers, and other professionals) are convicted in insurance fraud schemes. "AIA fully advocates the immediate revocation of any professional license upon conviction as well as the notification of the licensing bureaus in other states."
AIA is recommending the strengthening of criminal and civil penalties. In civil cases, he said, victims should be paid all profits and any money deceptively obtained through a fraud scheme plus reimbursement for their legal fees.
In closing, Skinner commended Wyoming Insurance Commissioner John McBride for "initiating efforts toward a self-executing anti-fraud law."
California
IBA West offers new EQ coverage
The IBA West Service Corp. has introduced a new stand-alone earthquake program available on an exclusive basis to IBA West members. The program was developed in partnership with Pacific Select Insurance Company, headquartered in Walnut Creek, California.
The program consists of five products tailored to meet the specific protection requirements of residential property owners in the state. The policies are stand-alone and may be written only in conjunction with a homeowners or standard dwelling fire policy.
The products include:
* Premier EQ Protector Comprehensive coverage for home owners. Ten percent deductible.
* Equity Protector Designed for home owners interested in protecting the equity in their home. Limits are a fixed amount of blanket insurance. Insuring the full replacement value of the dwelling is not required. Deductible options include: 5%, 7.5%, and 10%.
* Security EQ Protector Referred to as a mini-policy, this product is for property owners whose primary concern is protecting the dwelling. Limited other coverages are available. A 15% deductible applies.
* Security Supplement Provides supplemental coverage for earthquake mini-policies sold by other carriers.
* Security Gap A "deductible buy-back" policy offered in conjunction with earthquake mini-policies. It offers lower deductibles of 5% or 7.5%, which saves out-of-pocket expenses after a loss.
Additional information is available from IBA West's service center: (800) 772-8998 or Pacific Select by calling (800) 774-1012 or visiting their Web site: www.PacificSelect.com.
Montana
Great Falls agent honored
The Independent Insurance Agents of Montana (IIAM) presented Thomas A. Grau, CPCU, of the Century Agency/Montana International Insurance in Great Falls, the Distinguished Service Award at the IIAM annual convention. The Distinguished Service Award honors an agent, or non-agent, who has made significant contributions to the insurance profession in Montana.
A 30-year veteran of the insurance industry, Grau has been active on the association on the regional, state and national level. On the state level, his involvements include being Technical Affairs Chairman, and on the IIAM board of directors. He was IIAM vice president, later served as president, and has served as State National Director since 1991.
On the national level, Grau served on the IIAA Technical Affairs Committee. He now chairs the IIAA's Finance Committee. *
©COPYRIGHT: The Rough Notes Magazine, 1998