VISTA OPENS TRANSPORATION UNIT
Wholesale insurance broker Vista Insurance Partners launched a new division designed to meet the needs of the transportation and commercial automobile industries. With a special expertise in long haul and intermediate haul trucking, the nationwide division will have brokerage, binding authorities and reinsurance facilities. David Love, executive vice president and national director of transportation and commercial automobile for Vista, will lead the new division. Previously Love was regional manager of CNA Motor Transport Specialist Unit and has more than 16 years as an underwriter and manager with CNA and its subsidiaries. Creation of the new division follows Vista's recent expansion into the Southeastern U.S. with the opening of an office in North Palm Beach, Fla. The company said it plans to continue its growth by attracting high impact professionals, representing carriers and working with agents needing placements for middle-market companies and those with complex nationwide risks. The San Antonio-based company has offices in Texas, Oklahoma, Tennessee, and Florida.
REPUBLIC CONTRIBUTES TO FUND
The Republic group of insurance companies, headquartered in Dallas, presented local Red Cross officials with a check for $118, 826 on Dec. 18. The contribution was the result of fundraising efforts by Republic and more than 500 Republic agents in Texas, Oklahoma, Louisiana, Colorado and New Mexico. Republic contributed $50,000 towards matching gifts from their agents. The money will go to the Red Cross' Liberty Fund, designated specifically to help the families affected by the Sept. 11 attacks. Republic also pledged a 50 percent match to the American Red Cross of all employee contributions to the United Way, which totaled $41,551. The total contribution to the American Red Cross by Republic, their employees and agents designated specifically for relief and aid to the Sept. 11 victims and families will be $160,377.
HAMMES FEATURED AT IIAT SEMINAR
More than 350 of the state's most progressive and influential agency principals and managers will gather for the Independent Insurance Agents of Texas' Joe Vincent Management Seminar on Feb. 3-5 at the Renaissance Austin Hotel. One of the country's top management conferences for independent agents, the seminar is named in honor of longtime IIAT member and past president Joe E. Vincent. The 2002 seminar features a six-hour "Agency Management Clinic" with Carol Hammes of The Middleton Group. The clinic will provide an opportunity for agents to evaluate the strengths and weaknesses of their agencies and learn how professional consultants assess agency performance (6 CE credits). Space for this session is limited, and is available on a first-come, first-served basis. The conference kicks into gear on Feb. 4 with the conference's general session, "The Winds of Change," a presentation by Will Miller, PhD, a psychotherapist, ordained minister and professional comedian. Attendees will gain insight into market trends with "Your Future Is Optional," presented by a panel composed of a bank agency, an Internet aggregator, a top MGA and an agency network (1 CE credit). During "Online Insurance Services" on Feb. 4, seven of the best companies to demonstrate their services in 20 minute sessions. After the presentations, agents will be able to visit with company representatives to discuss costs and functions. In addition, this year's Joe Vincent Management Seminar once again features workshops designed to meet the diverse needs of independent agents. Registration fees for the Joe Vincent Seminar are: $225 for IIAT member agents; $195 for additional attendees from member agencies; $175 for first-time attendees from member agencies; and $330 for non-members. Call IIAT at (800) 880-7428 to register or look under Member Activities at www.iiat.org for complete details.
EEOC SUES, AllSTATE DISAPPOINTED
The Allstate Corporation has expressed its displeasure with the Equal Opportunity Commission's (EEOC's) lawsuit against its Allstate Insurance Company subsidiary over an agency system reorganization. The EEOC sued Northbrook, Ill. based Allstate because of its use of a release that conditions certain financial benefits, including the opportunity to participate in Allstate's most successful agency program, on the signing of the release. Under its reorganization plan Allstate decided to switch its 15,200-member sales force from regular employees to independent contractors. To stay on as contractors, the agents were required to sign a release that they would not sue Allstate, and by June all but 6,400 of the agents had chosen to become contractors, according to the New York Times. The EEOC contends that the release constitutes retaliation under federal employment laws. The suit also alleges that the company engaged in age discrimination against its agents. Allstate denied the charges. Stating, "Allstate values its positive relationship with the EEOC and believes that we are both committed to the same goals of equal opportunity and work force diversity," Rick Cohen, president of Allstate Property and Casualty added that the company's new business model and agency program provides an economic advantage for agents. He said the program reorganization was designed to "meet the increasing demands of our customers, jump-start growth and make it possible for every agent to share in the success of the company." He also noted that the structure of the agency program resembles that of many of the company's major competitors.
ARK. EXECS. CHARGED IN FRANKEL CASE
Arkansas Insurance Commissioner Mike Pickens and Pulaski County Prosecuting Attorney Larry Jegley announced three insurance agents have been charged in connection with Martin Frankel's alleged theft of $200 million from several insurance companies in the South. Tennessee residents Gary Atnip, Billy D. Williams, and Wade A. Willis, all officers of the Franklin American Life Insurance Co. based in Tennessee and the parent company of Old Southwest Insurance Co. of Jacksonville, Ark, aresuspected of having transferred Old Southwest funds without the permission of the Arkansas Insurance Commissioner, a violation of Arkansas Insurance Code Sec. 23-69-134. According to regulators six days following Franklin American's acquisition of Old Southwest, the three defendants signed paperwork to transfer $5.3 million from Old Southwest's Arkansas bank to a Tennessee bank, leaving only $19,175 in the company's account. The money was transferred the same day from the Tennessee bank to one in New York City, and then to an overseas account, according to prosecutors. Prosecutors contend that the defendants' actions illegally removed the insurer's deposits from Arkansas without permission from state regulators, and resulted in Old Southwest's insolvency. Marty Nevrla, Director of the Arkansas Insurance Fraud Investigation Division, said the investigation and the charges are part of a larger federal investigation. The felony charges filed in this case carry a maximum term of five years imprisonment, and a maximum fine of $10,000, if a conviction is obtained. According to Best Wire, Atnip faces federal charges in Connecticut, where he is accused of conspiring with Frankel to conceal Frankel's control of Thunor Trust, the entity the latter used to control the insurers. Atnip acted as the CFO for the companies Frankel controlled. Atnip is also accused of concealing Frankel's secret ownership of brokerage LNS Inc., where all the insurance assets were sent. Frankel pleaded not guilty to stealing $200 million from several insurance companies. Besides criminal charges, he faces a civil suit filed by the U.S. Securities and Exchange Commission, which attempts to recoup the funds he allegedly stole from a handful of insurers, including Franklin Protective Life Insurance Co., Family Guaranty Life Insurance Co. and First National Life Insurance Company of America.
CANTER ELECTED VP OF IIAA
Louise C. Canter, senior vice president and partner of Patterson//Smith Associates, was elected vice president of the Independent Insurance Agents of America, becoming the first woman in IIAA's 105-year history to be voted to its top leadership panel. Canter has been involved with the association on every level, having served the Metropolitan Washington Association of Independent Insurance Agents in many capacities, including state national director and president. In addition, Canter also served as chairman of the Southern Agents Conference and member of the IIAA Large Agents Committee.
