SOUTHWEST REGIONAL NEWS
Citing unfavorable trends of collision, uninsured motorist and property damage liability claims, Texas Insurance Commissioner Jose Montemayor approved an increase for private passenger automobile benchmark rates, effective December 2001. While benchmark rates will increase by a statewide average of 5.3%, not all drivers may experience such a change in their auto policies.
The average benchmark rate increase approved by Montemayor is below that recommended by the insurance industry (6.9%), state administrative law judges (5.8%) and a consulting actuary who proposed a 5.7% increase on behalf of TDI staff. The state's Office of Public Insurance Counsel recommended increases averaging 5.1%.
A National Association of Insurance Commissioners study, released last May, indicates that Texas' average annual expenditure for car insurance in 1999 ranked 19th in the nation even though Texas is the second most populous state and has three of the nation's 10 largest cities.
On the other hand, benchmark rates for bodily injury liability insurance, a state-required coverage, and for comprehensive insurance, are coming down. Montemayor reduced benchmark rates by 6.7% for bodily injury liability and by 1.8% for comprehensive.
Separately, Montemayor raised rates for personal auto coverages provided through the Texas Automobile Insurance Plan Association (TAIPA), sometimes known as the "assigned risk plan," by 9.2%. The plan provides basic liability insurance required by Texas law, plus uninsured/underinsured motorist and personal injury protection (PIP) coverage, for Texans whom insurance companies won't cover voluntarily. Fewer than 0.3% of Texas' insured vehicles are covered by policies obtained through TAIPA.
Information about how the benchmark system works, rate changes by type of auto coverage and localized examples of new benchmark rates are available on TDI's Web site (www.tdi.state.tx.us).
Area news
Young Agent committees win award
For their joint efforts in coordinating a Regional YAC Conference last year, the Young Agents Committees from Oklahoma,Missouri and Kansas were recognized with the 2001 Out-standing State Committee Project at the IIAA InfoXchange in October.
The three Committees have begun planning their next Regional Conference, which will be in 2003.
Conferences planned
The Missouri Association of Independent Agents will hold its Small Agents Conference, March 14-15, in Columbia. (Contact MAIA at (800) 617-3658 for more information.) The Kansas Association of Insurance Agents will sponsor the 2002 Rural & Small Agents Conference, January 29-31, in Salina (Contact KAIA at (800) 229-7048 for more information). Also, the Independent Insurance Agents of Iowa, Inc., will hold its Rural/Small Town Agency Conference, January 23-24, in Des Moines (Contact IIAI at (800) 272-9312 for more information).
Missouri
Harter named national PIA president
Steven Harter, CIC, owner of Select Risk Management Services in Ava, is serving as the 2002 president of the National Association of Professional Insurance Agents (PIA). He represented Missouri on the board of directors of the National PIA from 1995-2001. Harter served as 1986-1987 president of the Missouri Association of Insurance Agents and was a member of the association's board of directors from 1981 - 1988, and again from 1992 - 2001. He was a founding member of the Missouri Agents Education Foundation and served as its chairman from 1995-2001. In the insurance business since 1968, Harter has received many state awards.
Oklahoma
Keeton elected president
Gerald Keeton, CIC, is serving as president of the Independent Insurance Agents of Oklahoma (IIAO). He has been an independent agent since 1973, and is currently a principal at Associated Insurance Agents, Inc., based in Oklahoma City. Throughout the years, Keeton has served on a variety of IIAO committees.
Insurance Dept. gets high marks
The National Association of Insurance Commissioners (NAIC) gave high ratings to the Oklahoma Insurance Department in a review last fall of its financial evaluations of state-based insurance companies. The NAIC accredits the financial reviews of state insurance departments to ensure that consumers are being protected from unsound insurance companies. The Oklahoma Insurance Department received a 3.95 out of a possible 4.0.
Louisiana
State Farm adjusts rates
State Farm Mutual Automobile Insurance Company raised its overall rate level an average of 6.5% effective October 15, 2001. This is State Farm's first overall rate increase in the state since January 1997. Premiums for liability and medical payments coverages increased the most. From 1997-2001, State Farm's overall rates in Louisiana declined by 10.6%. In addition, State Farm has returned $38.8 million in dividends to its Louisiana customers since June 1998.
Brown & Brown acquires agency
A subsidiary of Florida-based Brown & Brown has acquired Bynum, Grace & Joffrion, in Baton Rouge. Bynum, Grace & Joffrion, with annualized revenues of approximately $2.5 million, has focused on commercial and personal lines insurance, as well as niche programs for professional groups. Kenneth Juban, president of Bynum, Grace & Joffrion, and his staff will continue to operate as a freestanding Brown & Brown office, at their current location. *