SOUTHWEST REGIONAL NEWS
Earlier this year, Insurance Commissioner Jose Montemayor approved rules to enable insurers to offer automobile insurance plans that would allow insurance companies to charge drivers by the number of miles driven. "Anything that may lower auto insurance rates as well as make a dent in the number of uninsured drivers on the road is good for Texans," said Commissioner Montemayor.
The rules allow drivers to purchase a certain number of miles, depending on how many miles they typically drive. Insurers may audit the mileage of a covered auto at any time by checking the odometer, or using some other method to determine whether coverage is in effect. Drivers can purchase additional mileage for additional premium.
If the specified mileage is exceeded prior to the policy's expiration date, coverage for that auto terminates. A driver may get a refund or credit applied to the renewal policy for any unused mileage. Proponents of the plan say older drivers, women, lower income drivers, households with more cars than drivers, and commuters will all benefit from the new auto insurance policy.
Arkansas
Meetings planned
PIA of Arkansas (PIAAR) will hold its annual convention June 5-7, at the Best Western Inn of the Ozarks in Eureka Springs. For more information, contact PIAAR at (501) 225-1645. The Independent Insurance Agents of Arkansas will hold its annual convention June 13-17, in Branson. For more information, contact IIAAR at (800) 221-3132.
Texas
Annual convention set
The Independent Insurance Agents of Texas (IIAT) will hold its annual convention June 13-14, at the Westin Galleria Hotel in Houston. For more information or to register, go to www.iiat.org.
Kansas
New workers comp forms designed
The Kansas Division of Workers Compensation no longer accepts old or incomplete employer reports of accident forms. Employers can download the new accident forms at the division's Web site (www.hr.state.ks.us/wc/html/wc.htm), or contact the division at (800) 332-0353. Currently, the completed forms must either be mailed or faxed, but online reports are being developed. The division has also initiated enforcement of $250 fines for employers who fail to report accidents to the state within 28 days of the accident, as required by law.
Iowa
Commercial lines terrorism exclusion approved
Effective Jan. 1, 2002, the Iowa Insurance Division approved filings by ISO that allow for an optional endorsement which applies only when total property damage from
a terrorism incident exceeds
$25 million based on all losses sustained by all persons and entities affected by the act. The liability endorsement excludes losses where more than 50 persons sustain serious bodily injury from the act of terrorism.
Court rules on UIM case
In February, the Iowa Supreme Court affirmed the Scott County District Court ruling in Preferred Risk Insurance Company vs. Cooper 00-542. In that case, the Supreme Court concluded that both spouses had to sign the written declination in order for it to be in effect. The court also concluded that the dollar amount of coverage to be provided when the written declination has not been properly effectuated is the limit of the policy, not the minimum coverage required by law.
Louisiana
Association plans meeting
The Independent Insurance Agents of Louisiana (IIAL) will hold its annual convention June 19-23, in Destin, Florida. For more information, contact IIAL at (225) 819-8007.
Missouri
New workers comp bulletins available
Earlier this year, the Missouri Department of Insurance published two new workers comp bulletins-- Bulletin 02-01 and Bulletin 02-02. Bulletin 02-01 includes previous guidelines (released in 1992 and 1993) for deductible workers compensation policies and liberalizes the department's previous guidelines.
Bulletin 02-02 deals with workers compensation schedule rating credits, advising work comp insurers not to use schedule credits "as the convenient pricing (or marketing) tool of first resort. ... Should an insurer identify the need for an overall increase in premium, its response should be to file amended rates with the Department, not to remove previously authorized credits without apparent justification." For more information on these bulletins, go to www.insurance.state.mo.us/laws/bulletin/02-01.htm and www.insurance.state.mo.us/laws/bulletin/02-02.htm. *