AMER. NAT'L LOWERS INCOME REPORT

Texas-based American National Insurance Company revised its previously reported second quarter 2002 net income from $20,983,000 to $6,075,000. The company stated that the revision resulted from a reclassification between unrealized and realized losses on securities and did not have any impact on book value per share or gain from operations. American National now reports realized investment losses, net of tax, of $21,490,000 for the second quarter of 2002 as compared with the $6,582,000 loss reported for the quarter on July 23. The major elements of these losses resulted from both stock and bond investments in issues of Conseco, Worldcom, Global Crossing and Teleglobe.

This revision in reporting had no impact on the previously reported gain from operations of $27,565,000 for the second quarter.

BIG WORKERS' COMP AWARD IN OK.

A Mayes County, Okla., District Court jury ordered Transwood Inc., a national trucking company headquartered in Omaha, Neb., to pay its Pryor, Okla. office assistant/part-time driver $2.176 million in a wrongful termination suit that she filed on behalf of her late husband. The award is the largest civil verdict in Mayes County history. According to the law firm of Holden & McKenna, the case stemmed from a workers' compensation claim filed against Transwood by the plaintiff's husband. The plaintiff, Paula J. Breedlove, claimed Transwood fired her late husband, Billy Breedlove, and attempted to destroy his professional reputation after Mr. Breedlove filed a workers' comp claim with the company after suffering a work-related injury. Mr. Breedlove had been a truck driver working out of Transwood's Pryor terminal and Mrs. Breedlove is employed at the same facility as an office assistant/part-time driver. Mr. Breedlove subsequently died of cancer. The case is expected to be appealed.

MORE BIG MONEY

The Texas Oil and Gas Association (TxOGA) workers' compensation purchasing group received $14,485 in dividends from Texas Mutual Insurance Company. The group dividend is the third earned by TxOGA since it partnered with Texas Mutual in 1995. Texas Mutual said the dividends are tied to TxOGA's excellent safety efforts. A group's volume and loss ratio are key components in determining whether it qualifies for a dividend. The greater the group's volume and the lower its overall group loss ratio is, the higher its dividend percentage will be. TxOGA members are eligible for group dividends and general dividends that Texas Mutual has paid to select longtime policyholders the past three years. Although state law prohibits insurance companies from guaranteeing future dividends, Lauber said that Texas Mutual's philosophy is to reward its top groups when money is available. Texas Mutual pays group dividends in three stages over a period of 42 months. The recent dividend represents the third stage of the group dividend process.

LOUISIANA OFFERS NEW RATE GUIDES

Louisiana Acting Commissioner of Insurance J. Robert Wooley announced the compilation of new rate comparison guides for auto and homeowners insurance, which are available free of charge. "Both the auto and the homeowners guides give rate examples from more than 20 insurance companies in all areas of the state," Wooley stated. "Whether a person needs rates for an 18-year-old single male, a 30-year-old married female, a retired 65-year-old or someone in between, the auto guide provides an example of rates different individuals can expect to pay. The homeowners guide offers approximate rates for new and older homes all across Louisiana with values ranging from $60,000 to $200,000." Wooley noted that while the guides contain information on cost comparison, consumers should consider other factors—such as whether the company pays claims in a timely manner—before buying insurance from a particular company. He added that the Department of Insurance "can provide information on the national rating of each company and the number of complaints, if any, that have been filed against each company or agent."

GROUP SEEKS AFFORDABLE INS.

The Texas Coalition for Affordable Insurance Solutions has been created as a proactive alliance of insurance providers and trade organizations committed to working with legislators, regulators, consumers and others to find public policy solutions that will improve insurance affordability and accessibility in Texas. Beaman Floyd, director of TCAIS, said the coalition promotes a healthy, competitive market so Texans can get the best price possible for their insurance coverage and service. The group wants legislative and regulatory action related to insurance to be based on public policy principles that: Promote healthy competition, so Texans can get the best price possible for their insurance coverage; Provide greater choice of policy options, so Texans can choose insurance coverage that meets their needs and fits their budgets; and Prevent fraud and claims abuse, so Texans don't pay higher prices for their insurance because of others who are taking advantage of the system. TCAIS is creating a resource network, including a new Web site, (www.TCAIS.org), with information on the legislative and regulatory issues affecting insurance policyholders in the Lone Star State.

COURT UPHOLDS BROWN CONVICTION

A federal appeals court recently upheld the felony conviction of suspended Louisiana Insurance Commissioner Jim Brown but, according to the New Orleans Times-Picayune, Brown is vowing to continue the fight to clear his name. The 5th U.S. Circuit Court of Appeals upheld Brown's October 2000 conviction for lying to an FBI agent when he was interviewed about the state's settlement with a failed insurance company. Although sentenced to six months in prison at the time, Brown has been free during the appeal process. Federal prosecutors are reportedly now itching to have Brown in jail; he would be assigned to a minimum-security prison. Brown has been suspended since his convicted but he has indicated he has no plans to resign from office, and believes there is no requirement to do so until his appeals are exhausted.

FUN AT THE RACES

The horses are ready, are you? Independent Agents of Tarrant County is hosting its annual Picnic Under the Lone Star on Oct. 9 at Lone Star Park in Grand Prairie. The tickets are $20.00 each and include a reserved seat in the East Trackside Patio, Barbecue Buffet Dinner, Daily Program, Parking Pass, cash bar and all taxes and gratuities. Reservations and payment must be received by noon in the IIATC office on September 17th. Early registration is encouraged as the group has a limited number of tickets and if past race nights are any indication, the event will sell out.