News Briefs

ALABAMA

60-Day Notice Required

The Alabama Hurricane Issues Task Force headed by Walter A. Bell, Insurance Commis-sioner, has recommended a new regulation that would force insurers to give 60 days notice to policyholders whose insurance will be changed or canceled, and concluded that Alabama’s insurance regulations and laws need to be changed.

The task force, in cooperation with the Alabama Independent Insurance Agents, released a five-page list of wind damage insurers and local agents willing to offer coastal coverage.

Members agreed that the state’s insurance laws and regulations need to be updated to better protect consumers without scaring away insurers.

AssuranceAmerica Enters Auto Market

AssuranceAmerica Corp. has expanded into Alabama’s auto insurance market with sales of its first auto insurance policies in the state. The Atlanta-based company is represented by more than 300 independent agents and markets auto policies in Alabama, Florida, Georgia and South Carolina.

AssuranceAmerica focuses on the specialty automobile insurance marketplace. Its principal operating subsidiaries are TrustWay Insurance Agencies, which sell personal automobile insurance policies through its 32 retail agencies, AssuranceAmerica Managing General Agency and AssuranceAmerica Insurance Co.

FLORIDA

DOI Refuses Cincinnati’s Rate Request

Cincinnati Insurance Co.’s request to increase homeowners insurance policy rates by as much as 40 percent was denied in early July by Florida Insurance Commis-sioner Kevin Mc-Carty, who said the company failed to justify the increase. The Florida Office of Insurance Regulation held public hearings in Sarasota, Fla., during which more than 100 of Cincinnati’s 5,800 policyholders voiced their objection to the increase. The company may request an administrative hearing, arbitration, or modify its filing, according to a state press release.

In a related request, OIR said Allstate Floridian was justified in requesting a 9.9 percent average rate increase. Allstate convinced OIR that it needed the increase to cover its purchase of private reinsurance for the 2005 hurricane season. It also indicated the additional 18 percent increase is necessary to build up its capital to pay hurricane claims.

Boca Raton Condo Developer Says ‘No’ to Hurricane Shutters

Banyan Lakes, a condominium developer in Boca Raton, Fla., an area well known for upscale housing, has banned condo owners from placing hurricane shutters on the outside their windows, residents can put them inside the windows if they are not visible to passers-by. BH Management of Des Moines, Iowa purchased what was formerly a 300-unit building last fall and began converting the apartments into condominiums.

PIA Publishes ‘Legislative Report’

The Professional Insurance Agents of Florida has completed its 2005 Legislative Report summarizing the provisions of recent legislation passed in the spring sessions of the Florida Legislature and has scheduled meetings to describe to members how the new laws will effect them.

Meetings will focus on new rules and regulations and will be provided at no charge to members. Meetings are scheduled Sept. 19 in Tampa, Sept. 20 in Orlando, Sept. 21 in Miami, and Sept. 27 in Pensacola. The meetings are scheduled in conjunction with the Independent Insurance Agents of Dade County, the Latin American Association of Insurance Agencies and the National Association of Professional Allstate Agents. More information is available at www.piafl.org.

KENTUCKY

Insurance Trust Needs Letter of Credit

The Kentucky School Boards Insurance Trust Workers’ Compensation Fund, one of the seven workers’ compensation self-insured groups doing business in Kentucky has been ordered to provide a $6.5 million letter of credit to the Kentucky Office of Insurance (KOI) to serve as additional security for payments of the fund’s liabilities and claims.

KSBIT began a plan of remediation in May 2003, when it was regulated by the Office of Workers’ Claims (OWC). As of Dec. 31, 2004, KSBIT reported an audited deficit balance of about $5 million.

In addition to the letter of credit, the KOI order requires KSBIT to provide written affirmation of the joint and a several liability agreement from each member and a plan for eliminating the deficit. The order states that an assessment of members may be ordered if the fund does not make satisfactory progress.

KSBIT provides workers’ compensation coverage for about 100 school districts in the state.

MISSISSIPPI

Biloxi Covers Its Bets With Business Interruption Insurance

If a storm or hurricane hits Biloxi, Miss., and closes area casinos, the city will have all bets covered. The city, which obtains $20 million a year or about one-third of its annual operating revenue by taxing nine casinos, has decided to buy business interruption insurance. The Biloxi City Council unanimously approved the purchase, which will cost about $100,000 a year.

The proposal to buy insurance was
proposed by Mayor A.J. Holloway, who pointed out that income from the nine casinos operating in the city provide a third of its annual operating revenue.

NORTH CAROLINA

4,627 Recovery Program Applications

North Carolina Gov. Mike Easley has announced more than 4,600 applications for individual assistance were filed as part of the Operation Brighter Day hurricane recovery program.

The program began taking applications on April 22 and concluded on June 17.

Hurricane victims were encouraged to submit one application to cover all available individual assistance programs at Recovery Application Centers (RACs).

WEST VIRGINIA

Rate Decreases Approved

The West Virginia Insurance Commission has approved Government Employees Insurance Co.’s (GEICO’s) rate filing. GEICO requested approval for a 1.9 percent rate decrease for its private passenger automobile insurance customers, beginning with those policies that renew after the new rates took effect July 8.