The Independent Insurance Agents of America presented the Maurice G. Herndon Award to the Professional Independent Insurance Agents of Illinois (PIIAI) in recognition of the state association's efforts to secure passage of legislation regulating sales of insurance by banks. The award was presented at the IIAA's annual National Legislative Conference.
The legislation passed in Illinois affirms the state's authority to regulate bank's insurance activities and establishes safeguards for such activities. "The accord the Illinois agents worked out with their bank counterparts is a common-sense, balanced approach to the integration of banking and insurance in that state," said IIAA President Bud Wilson.
"And now the Illinois law is being touted and, more importantly, used as a 'safe harbor' in federal legislation that modernizes the financial services industry and creates a fair regulatory system as the lines between financial providers continues to blur even more," said Wilson. "The current financial services reform proposal in the House would prohibit the Comptroller of the Currency from preempting other state laws and regulations that are similar to those in the Illinois statute."
The award from IIAA also commended the PIIAI for its continued high level of participation in IIAA's government affairs program.
Minnesota, Wisconsin
Hartford cuts auto rates
The Hartford has reduced automobile insurance rates in Minnesota by an average of 6.1% and in Wisconsin by an average of 3.2%. The Hartford also has expanded efforts to attract more Minnesota and Wisconsin auto insurance customers. The rate reduction is for The Hartford's customers who purchase auto insurance through independent agents.
Individual premium changes may vary depending on the policy coverage and other factors that influence insurance premiums.
The Hartford will pass savings on to the customer through "Hartford Premier," a new super-preferred pricing tier for the company's very best customers. Among other criteria, Wisconsin drivers must have more than nine years of driving experience and clean driving records.
Michigan, Minnesota
State Farm lowers auto rates in two states
State Farm Mutual Auto Insurance Company lowered its overall auto rate level in Michigan and Minnesota. The rate cut in Michigan, effective April 1, averages 3% overall, with premiums dropping for liability, property and personal injury protection. Rates for collision and comprehensive coverage will not change.
State Farm also introduced a good student discount in Michigan by which students age 25 and younger who meet grade requirements can save 10%.
In Minnesota the company reduced its overall auto rates by .2%, effective May 1. Premiums for collision coverage will rise on average; premiums for comprehensive coverage and personal injury protection will rise for some drivers and go down for others.
State Farm's last previous auto rate change in Minnesota was a .7% reduction a year ago; in Michigan the last previous change was a .8% drop in October of last year.
Ohio
State Farm raises homeowners rates
State Farm Fire and Casualty Company raised homeowners rates an average of 4.1% in Ohio, effective March 1 for new customers and May 1 for renewals. State Farm is the largest homeowners insurer in the state, with about 645,000 policies.
Company news
Chubb opens office in Grand Rapids, Michigan
The Chubb Group of Insurance Companies announced that it is establishing a field office in Grand Rapids, Michigan. The expansion is a result of the growth Chubb has experienced in Michigan and the economic vitality in the region. Initially, the office will employ three people.
Len Dyer, newly appointed underwriting leader for the Grand Rapids office, said, "We have high expectations for accelerated growth. There is a strong entrepreneurial spirit in Western Michigan, and we want to be a part of it." Dyer also cited the high quality and strength of the independent insurance agents in the region as a factor in selecting the Grand Rapids area as the site of the new office.
Chubb will be developing its commercial and personal insurance business from this office. In particular, it sees growth opportunities in the service and manufacturing sectors, such as metal workers, plastic workers, wholesalers and electronics companies. The Grand Rapids office is the newest in Chubb's global network, bringing its worldwide total of branch offices to 111.
The office will be located at 161 Ottawa NW, Suite 506, Grand Rapids, MI 49503-2799. The phone number is (888) 900-3404.
Member insurers of the Chubb Group of Insurance Companies provide property and casualty insurance worldwide through 5,000 independent agents and brokers. Chubb's global network includes branches and affiliates throughout North American, Europe, Latin America, Asia, and Australia. *
©COPYRIGHT: The Rough Notes Magazine, 1998