Okla. Online License Renewals:
Insurance agents are now able to renew their licenses via the Oklahoma Insurance Department Web site at www.oid.state.ok.us. Until the online service was made available, insurance agents were required to renew their licenses in person or through the mail. In addition to renewing licenses, agents can check their continuing education hours on the site. Initial licensing must still be done in person, in part because of education and testing requirements provided for by law. The cost of renewing a license online is slightly more than in person. The statutory fee for renewals is $60, and the added fee for using the Internet is $2.40.
Super Bowl Fever'
For some, Houston is the place to be on Feb. 1, 2004, when the Super Bowl comes to town. As such, many Houstonians may succumb to the temptation to make money off of football fans by renting their homes to out-of-town Bowl goers. One question these potential landlords may ask is: Will their homeowners policy stand behind property or liability claims resulting from a temporary rental situation? According to the Independent Insurance Agents of Texas, in most cases it will. In a recent Texas Agent Personal Lines Report, the IIAT explained: "The property section of the homeowner policy covers the dwelling on the residence premises and property while on the residence premises. There are no exclusions in the property section related to rental of the dwelling or personal property on the premises." Still the IIAT recognized that "the definition of residence premises, which requires the insured to reside on the premises," may present a potential cause for concern. However, the association commented that "leaving the premises for a short period of time to stay in a hotel or someplace else does not imply that the insured has stopped residing there; otherwise homeowners coverage would be in jeopardy every time an insured went on an extended vacation." It noted that "one major coverage exception in the property section relates to 'other structures' on the premises, such as a guest house. Such other structures are not covered if 'wholly rented to any person.'" It pointed out, too, that the "ISO homeowners policy excludes coverage on other structures rented to any person not a tenant of the dwelling." Agents, the IIAT said, should therefore counsel clients who ask about coverage for Super Bowl rentals "not to rent out a guest house or any structure on the premises other than the main dwelling." As for liability, according to the IIAT the "liability section of the homeowners policy excludes liability arising out of the rental of any part of any premises by an insured, but the exclusion does not apply to the rental on an occasional basis if used only as a residence."
New Auto Rating Symbols:
Texas Insurance Commissioner José Montemayor has adopted Commissioner's Order No. 03-0942, containing new and/or adjusted 2002 and 2003 model private passenger automobile physical damage rating symbols for the Texas Automobile Rules and Rating Manual. The new and/or adjusted symbols for the Manual's Symbols and Identification Section reflect data compiled on damageability, reparability, and other relevant loss factors for the listed 2002 and 2003 model vehicles. The amendments become effective Dec. 9, 2003
Down to Two in Louisiana:
The Oct. 4, 2003 Louisiana primaries whittled the field of candidates for insurance commissioner down to two. According to the New Orleans Times Picayune, incumbent Robert Wooley will face former legislative auditor Dan Kyle in the Nov. 15 runoff election. Four other challengers were eliminated in the primary vote. Wooley, a Democrat, snagged the most votes. His campaign has stressed his aggressive program of cracking down on fraud in the industry. He is endorsed by New Orleans Mayor Ray Nagin and U.S. Sen. John Breaux, D-La. Kyle, a Republican, has been critical of Wooley's connections to the insurance industry. He has reportedly alleged that the three commissioners before Wooley were sent to prison in part because of corruption stemming from ties to the industry. Kyle is endorsed by Gov. Foster and U.S. Rep. David Vitter, R-Metairie.
Perhaps a Softening Market:
Richard Kerr, chairman and CEO of MarketScout, maintains that the property and casualty insurance market is softening. "As a result, business owners will have more free capital for investing. A 10 percent composite reduction in insurance premiums will have a positive impact on the economy as these premium reductions could literally put billions of dollars into the pockets of business owners," Kerr said. He based his opinion on "submissions and pricing models developed from MarketScout's database of over 60 'A'-rated insurance companies and 48,000 insurance professionals." He noted that September had a composite rate increase of 12 percent adding, "September reflects the greatest reduction in the composite rate in three years." Kerr predicted that the market softening will continue as long as the industry is not hit with a "major cataclysmic event or discovery of drastic under reserving methods."
Texas Young Agents Honored:
The Independent Insurance Agents of Texas' Young Agents Committee was recognized by the Independent Insurance Agents and Brokers at the IIABA Conference and InfoXchange in Las Vegas, for the Texas group's work on a state committee project. Specifically the national award recognized the Texas Young Agent Committee for its promotional work on the Trusted Choice branding campaign over the past year. Approximately 150 Texas agencies signed up for Trusted Choice last year as a result of the committee's efforts. Over 60 agencies signed up on a single day. The IIAT Texas Young Agents will hold their 4th Annual Young Agents Retreat in Austin Nov. 6 and 7. Registration is available online at www.iiat.org or by calling (800) 880-7428. For more information, contact Paul Martin at pmart@iiat.org.
Home, Auto Credit Hearings:
The Texas Department of Insurance will hold a public hearing on Oct. 22, 2003 to address issues related to homeowners and auto insurance, and the use of credit information in certain personal lines insurance. The hearing begins at 9:30 a.m. First to be considered will be Docket No. 2572, which concerns residential property insurance or personal automobile insurance and allowable rate differences for rating territories that subdivide a county. Docket No. 2573, which addresses the use of credit information or credit scoring in certain personal lines of insurance, is second on the agenda. The commissioner will consider proposed sections to the Insurance Code that require disclosure by an insurer or its agents to its customers concerning whether credit information will be obtained and used as part of an insurance credit scoring process. They also specify how an insurer may vary its rates due solely to credit scoring.
