CALIF. AGENT FEES UP 10% IN 2004:

The California Department of Insurance sent out a notice a few weeks ago reminding all insurance licensees that they will be ringing in the New Year with a 10 percent fee increase, the American Agents Alliance said in its newsletter. In the memo, the CDI stated: "under California law, the Department is authorized to increase the fees contained in the Insurance Code to provide sufficient revenue to fund the appropriation authorized by the annual Budget Act. This action was initiated to allow the CDI to balance revenues and expenditures in Fiscal Year 2004-05 and to allow the Department to continue its efforts to improve licensing services to producers and insurers." Some examples of the fee increases: Fire/casualty broker-agent license and renewal will increase from $65 to $72 annually, a notice of appointment and termination of appointment will now cost insurers $24, up from $22, and a personal lines broker-agent will pay $72 a year instead of the $65 he or she now pays. For a complete list of fee increases, visit the Department's Web site at http://www.insurance.ca.gov.

QUAKE INSURED LOSSES PEGGED AT $40-$60MIL:

The earthquake that struck California's central coast on Dec. 22 could generate insurance claims of between $40 million and $60 million. The initial shockwave, registering 6.5 on the Richter scale, was followed by nine aftershocks of at least 4.0 in the following three hours, according to the U.S. Geological Survey. While no claims data was reported as of Dec. 23, the Newark, Calif.-based Risk Management Solutions said insurers would feel a "moderate" impact from the claim. That hit could translate into mid-eight figure claims totals, according to RMS, which pointed out that levels of insurance and underinsurance in areas where the quake hit, primarily agricultural centers, were hard to predict. Researchers reported that 41 to 60 buildings in the downtown Paso Robles area, located 24 miles from the quake's epicenter, were damaged or destroyed.

NAPSLO MID-YEAR SET FOR SCOTTSDALE:

The 2004 NAPSLO Mid-Year Educational Workshop is set for Feb. 5-8 at the Marriott Camelback Inn Resort in Scottsdale, Ariz. Workshop programs include an examination of Errors & Omissions coverage, a current review of the globalization of the industry, and a look at the market economy. In addition, the Derek Hughes/NAPSLO Educational Foundation has planned a golf outing on Feb. 6. Friday's programs will cover Errors & Omissions, utilizing a panel of experts to examine ways to limit future E&O claims. The panel will also look at the current state of E&O coverage and discuss how to find coverage. On Saturday, a panel will examine the impact of globalization on the insurance industry and the current status of the market. In addition, economist Don Reynolds will speak on current financial trends, the overall status of the economy, and what it means to the industry. For more information, visit http://www.napslo.org.

IDAHO OFFERS ONLINE IN-STATE PRODUCER LICENSE RENEWAL SERVICE:

After nearly two years since it began offering online license renewals to out of state insurance producers, the Idaho Department of Insurance is now extending the same convenience to in-state producers. Those who use the service at http://www.doi.state.id.us receive a $15 discount off of the regular $80 renewal fee, which is paid using Visa or MasterCard through the state's secure

payment portal. Insurance producers operating within Idaho's borders are required to provide proof of continuing education credits with their renewals. The new service features an online form in which resident producers can submit their continuing education course numbers and completion dates electronically. The entire renewal process takes about 15 minutes and users cannot renew online more than six weeks before or 45 days after a license's renewal date. For more details, contact Joanne Adair, Idaho Department of Insurance Licensing Supervisor, at (208) 334-4341.

WASH. STATE LEADERS AIM TO CONTROL MED-MAL INSURANCE PREMIUMS:

Washington Gov. Gary Locke, House Speaker Frank Chopp, Senate Democratic Leader Lisa Brown and state Insurance Commissioner Mike Kreidler recently unveiled a proposal to help improve the safety of medical patients and control the cost of medical malpractice insurance for doctors. "We want patients to be safer and the medical community to continue offering their services," Locke said. "The steps we are proposing will go a long way toward reaching both objectives." The proposal would achieve three things: Increase patient safety; assure that physicians and hospitals can get the insurance they need and stabilize their insurance rates; and improve the civil justice system while protecting the constitutional rights of patients. The package, which will be part of the governor's supplemental budget proposal to the Legislature, includes a Medicaid reimbursement rate increase for doctors. This would help obstetricians and family practitioners who deliver babies cover their rising cost for this care, including increased malpractice premiums, and ensure these critical delivery services remain available across the state. The Medicaid increase would permit the state to claim federal matching funds, target assistance to doctors that serve the most Medicaid clients, and benefit rural providers, who are more dependent on Medicaid revenues. The proposal would improve access to care among low-income families and allow hospitals and medical groups to share quality-improvement techniques, giving health professionals the opportunity to learn from each other about how best to protect patients. It would also allow the state to establish a Patients' Compensation Fund, which would cover excessive malpractice award costs for health professionals, while ensuring that people with significant medical injuries receive compensation for their losses. Additionally, the proposal would direct the state to fully investigate physicians with excessive malpractice judgments and provide additional funding for the Department of Health to cover the cost of malpractice insurance for retired physicians willing to volunteer in clinics.

NAMIC REPORT DETAILS STATE TORT REFORM EFFORTS:

A report detailing state legislative efforts to reform the U.S. civil justice system was recently released by the National Association of Mutual Insurance Companies (NAMIC). The report, part of a NAMIC series regarding state laws and legislative trends, furnishes a summary of recent individual state tort reform laws, describes the laws' net effects, details noteworthy points, and provides a hyperlink to the actual law. "Arranged by issue and by state, the report provides compliance officers, advocates, regulators and government affairs managers a comprehensive picture of legislative tort reform activity in the states," Peter Bisbecos, NAMIC director of legal and regulatory affairs, said. These areas for reform were identified by the American Tort Reform Association (ATRA) and the American Legislative Exchange Council. NAMIC is a member of both. The report focuses on multiple tort reform issues, including: Appeal bonds, jury service, class actions, non-economic damages, collateral source rule, prejudgment interest rates, common sense scientific, evidence product liability, intrastate forum shopping, private attorney, retention, joint and several liability, and punitive damages. Key findings of the report include: a total of 174 tort reform laws have been enacted by states in recent years; the majority of the reform laws passed address five key areas of tort reform: Joint and several liability (35 states), collateral source rules and product liability (25 states each), non-economic damages (21 states), and punitive damages (18 states); the least commonly enacted tort reform measures are those that address common sense scientific evidence (1 state), intrastate forum shopping (2 states), jury service requirements (3 states), government contracts with private attorneys (5 states), and class action (7 states). In 2003, new tort reform laws addressing appeal bonds, private attorney retention, class actions, the collateral source rule, intrastate forum shopping and jury service were enacted in 15 states; tort reform bills introduced in 16 states during 2003 addressing joint and several liability, product liability, punitive damages, and prejudgment interest rates will be carried over for further consideration in 2004; states that have passed the most tort reform laws include: Colorado (9), Texas (8), Louisiana and Florida (7), North Dakota, Georgia and Michigan (6), Alaska, Arkansas, Idaho, Missouri, Montana and Ohio (5); states that have passed the fewest tort reform laws: Illinois, Delaware, Maryland, Massachusetts, Pennsylvania, Rhode Island, Tennessee, Vermont and Wyoming, one each, and South Carolina with none; Jurisdictions cited by ATRA as magnets for litigation: Alameda County, California; Los Angeles County, California; San Francisco County, California; Madison County, Illinois; Orleans Parish, Louisiana; Mississippi's 22nd Judicial District; St. Louis, Missouri; Jefferson County, Texas; Starr County, Texas; Hampton County, South Carolina; West Virginia and certain counties in Alabama. The full report can be obtained at http://www.namic.org/reports/tortreform/.