NORTHEAST REGIONAL NEWS
Seeking "to create a stable and competitive market," a new trade organization is urging state lawmakers to reform New Jersey's auto insurance laws and regulations. The Coalition for Auto Insurance Competition, a New Jersey-based group open to businesses, associations and consumers, cited the state's regulation of auto insurance as the culprit behind limited competition. The Coalition claims the current environment discourages insurance companies from doing business in New Jersey, setting the stage for a capital reserve shortage.
The group was formed by insurance industry trade associations (American Insurance Association, Insurance Council of New Jersey, National Association of Independent Insurers) and member companies. Other participants include the New Jersey Retail Merchants Association, New Jersey Food Council, Citizens for a Sound Economy, Independent Insurance Agents of New Jersey and the National Association of Mutual Insurance Companies. The latest figures show that New Jersey has 47% fewer companies selling auto insurance than Illinois and more than a third fewer than neighboring New York and Pennsylvania. More than 20 auto insurance companies have left New Jersey in the past 10 years.
One positive step toward auto reform, according to the National Association of Independent Insurers (NAII), was the state Appellate Court's recent decision to uphold the pre-certification medical guidelines of the Auto Insurance Cost Reduction Act of 1998 (AICRA). AICRA established programs and protocols to eliminate unnecessary medical treatment and testing, which contributed significantly to New Jersey's high auto insurance premiums.
Area news
The following organizations are hosting meetings in the next few months:
* Young Agents Committee of the Independent Insurance Agents of Connecticut (IIAC): May 15 at the Foxwoods Resort Casino. IIAC annual meeting and installation
of officers is June 13 at the
Saint Clements Castle. Call IIAC at (860) 463-1950 for more information.
* Independent Insurance Agents Association of New York (IIAANY): May 16-17, at the Hyatt Regency Hotel in Rochester. For more information, contact Chris Lipes at (800) 962-7950, ext. 229.
* Professional Insurance Agents (PIA) of New Jersey and New York: June 9-11 at Bally's Park Place in Atlantic City. For more information, go to www.piaonline.org.
* Professional Insurance Agents (PIA) of New Hampshire: May 22 at the Marriott Courtyard and Grappone Conference Center in Concord. For more information, go to www.piaonline.org.
* Independent Insurance Agents of Pennsylvania (IIAP): May 6-8 at the Seven Springs Mountain Resort in Champion.
* Independent Insurance Agents of Rhode Island (IIARI): June 24 at the Potowomut Country Club. For more information, call IIARI at (401) 732-2400.
PIA group wins award
The Professional Insurance Agents (PIA) of Connecticut, New Hampshire, New York and New Jersey association has been awarded the 2001 Association Excellence Award. The award, presented by the Empire State Society of Association Executives (ESSAE), was given to ESSAE members who contributed their services and efforts toward relief and recovery after September 11. Besides setting up a link for members to contribute to the United Way's September 11 fund, the four-state PIA organization joined an industry-wide effort to provide information to those with insurance questions stemming from the attacks, helped organize a hotline response service and volunteered to assist at a mid-town Manhattan site.
Vermont
Captive business is booming
In 2001, Vermont surpassed the 500-mark in captive licensing, ending the year with 527 captives. Thirty-eight captives were licensed during that year alone, according to Vermont's Department of Banking, Insurance, Securities and Health Care Administration. Governor Howard Dean, MD, pointed to "Vermont's stable regulatory environment, accessible government officials, and world-class professional support services" as the reason why the state is so attractive to companies.
With premium volume now approaching $5 billion, the state reports that new captives include the nation's leading mining equipment manufacturer, a leading drug manufacturer and four hospital groups. New licenses were also issued to the Pepsi Bottling Group, the Kroger Co., A.G. Edwards, Inc., Goldman Sachs Group, American Century Companies, Gannett Co., Wendy's International, and Rotary International.
Additional information can be found at www.VermontCaptive.com.
Pennsylvania
Associations merge
The Independent Insurance Agents of Pennsylvania (IIAP) and the Professional Insurance Agents (PIA) of Pennsylvania have agreed to merge their memberships. According to Chuck Schaaf, chairman of the board of the PIA of Pennsylvania, Maryland and Delaware, "Our members have clearly told us that they want a single organization to represent their interests in Pennsylvania," and that the move will better serve independent P-C agents throughout the state. The new organization will maintain affiliations with both the Independent Insurance Agents of America and the National Association of Professional Insurance Agents. The merger will not affect the PIA of Maryland and Delaware. *