Utah Independent Insurance Agents Electronic Newsletter

Thanks to our 2009 Associate Members: Acuity, Advanced Restoration, LLC, American Mining Insurance Co., Austin Mutual Insurance Co., Auto-Owners Insurance Co., Bear River Mutual Insurance Co., BELFOR, Burns & Wilcox, LTD, Capital Premium Financing, Inc., CNA Insurance, CSE (Civil Service Employees) Insurance Co., Colonial General Insurance Co., Colorado Casualty, Continental Western Group, Cresta Insurance, LLC, Dairyland Auto, EMC Insurance Companies, Encompass/Allstate, Employers, Germantown Mutual Insurance Co., Kemper, Legacy Insurance Services, Inc., Magna Carta Companies, MetLife Auto & Home, Mountain States Insurance Group, MULTICO Rating Systems, Inc., Mutual of Enumclaw, National American Insurance Company, Networked Insurance Agents, Pennsylvania Lumbermens Mutual Insurance Co., Philadelphia Insurance, Premium Financing Specialists, Professional Lines Underwriting Specialists, Inc., Risk Placement Services, Sagamore Insurance Company, Santa Fe Auto Insurance Co., State Auto Insurance, Statewide Insurance Corp., Surplus Lines Association of Utah, Swett & Crawford, Total Restoration, Inc., Transwestern General Agency, UCA General Insurance, Utah Business Insurance Company, Utah Disaster Kleenup and Western National Insurance Group.

1. 2009 UAIIA Convention
2. Living The Brand
3. Third AIG Bailout?
4. Women Drivers!
5. Utah License Reinstatements
6. Insurance Agent Bank Robber
7. Uninsured Drivers
8. Flyers with Newsletter
9. Important Legislative Conference
10. Reduce Your E&O Exposure

1. 2009 UAIIA Convention Just in case you didn’t receive our recent email about the 2009 Convention at the Zermatt Resort on June 11th – 13th, here’s some more information. As usual, we have great speakers, entertainment, continuing education, a trade show, golf, good food and an awards banquet. Go to our website at www.uaiia.org and click on the convention button. Scroll down for links to our registration forms and further information. In addition to Eric Alexander our keynote speaker and Ryan Hamilton, our entertainment, we will have our national association’s highest-ranking volunteer, Utah’s own Brett Nilsson who is currently the Chairman of IIABA. Also, we will have our national association’s highest-ranking staff person, Bob Rusbuldt, President and CEO of IIABA.
Don’t forget that we’ll also have Free Day Friday again this year which means free trade show, luncheon and continuing education on Friday, June 12th for anyone in the valley that would like to come up for the day.
What’s not to like? There is something for everybody. We hope you’ll plan on attending. Why don’t you take the time to fill out a registration form today.

2. Living The Brand Don’t break the bank marketing your agency—get your $500 Trusted Choice reimbursement.
Trusted Choice has a new marketing reimbursement program for members. Agencies that use the Trusted Choice logo on their business cards, brochures, Website and other collateral in 2009 are eligible for up to $500 to offset the cost. Apply for your reimbursement today and reap the benefits of “living the brand”. For further information, go to www.trustedchoice.com/mrp.

3. Third AIG Bailout? American International Group, Inc., rescued twice last year by the U.S. government, is asking for more aid and bracing for a fourth-quarter loss of roughly $60 billion, a source familiar with the matter said. It would be the biggest loss in one quarter in corporate history.
The $60 billion would exceed Time Warner’s $54 billion single-quarter loss in 2002 and dwarf the $24.5 billion loss AIG posted in the third quarter, when the government increased its rescue package for the insurer to about $150 billion.
CNBC, which first reported AIG’s discussions, said the losses to be announced next Monday were due to writedowns on commercial real estate and other assets. It said the insurer’s board will meet next Sunday to work out an agreement with the government. (From Insurance Journal)

4. Women Drivers! We hear people say that at times, but according to Quality Planning, a subsidiary of the Insurance Services Office (ISO), Male drivers are cited for reckless driving 3.41 times more than women, women are far more observant of traffic laws than men, and that the laws violated more frequently by men are those laws designed to safeguard people and property.
The survey also said men were 3.09 times more likely to be cited for driving under the influence, 3.08 times more likely for failure to wear a seatbelt, 1.75 times more likely for speeding, 1.54 times more likely for failure to yield and 1.53 times more for a stop sign violation. In summary, women are on average less aggressive and more law-abiding drivers—attributes that also translate to fewer accidents.

5. Utah License Reinstatements All insurance licensees can now reinstate a lapsed license electronically if it has been less than one year since the inactivation date. Resident licensees can reinstate by going to Sircon’s site at http://www.sircon.com/resource/layout.jsp?page=utahLps&type=utah. Non-resident licensees can reinstate on Sircon’s or NIPR’s site (http://www.nipr.com/).
Note that appointments and associations are not automatically reactivated when a license is reinstated. All appointments and associations must be re-established.
Continuing education (CE) requirements must be met when submitting a reinstatement on-line. If the system still lists the CE compliance as pending, the individual should review their CE transcript and contact the providers of courses that do not appear there. The provider will need to upload the associated course roster. Once the roster upload has been processed by the system, the producer will be able to submit the reinstatement application.
An insurance licensee whose license expired more than one year ago will need to submit a new license application and satisfy the licensing requirements of a first-time licensee. Anyone having problems with this process should feel free to contact the department for assistance at 801-538-3855.

6. Insurance Agent Bank Robber A part-time insurance agent was arrested in his Rockefeller Center office and charged with pulling off a knifepoint bank robbery in the suburbs of New York and making his getaway in a luxury sport utility vehicle, police said.
Edward Solomon, 71, was accused of stealing $5,900 from a bank in a Peekskill shopping center Jan 16th. Solomon used a knife to force an employee to let him into the teller area, where he rifled through the cash registers. He had retired two years ago as an agent for Prudential Financial, Inc., but was allowed by Prudential to continue working with his established clients.

7. Uninsured Drivers Approximately one in six drivers across the U.S. may be driving uninsured by 2010, according to a recent study from Insurance Research Council (IRC).
Although the estimated percentage of uninsured motorists decreased nationally, from 14.9 percent in 2003 to 13.8 percent in 2007, the research group says the recent economic downturn is expected to trigger a sharp rise in the uninsured motorist rate.
The magnitude of the uninsured motorists problem varied widely from state to state. In 2007, the states with the highest uninsured driver estimates were New Mexico (29%), Alabama (26%), Oklahoma (24%), and Florida (23%).
The five states with the lowest uninsured driver estimates were Massachusetts (1%), Maine (4%), North Dakota (5%), New York (5%), and Vermont (6 %). Utah comes in at 8%.
The IRC estimates the uninsured driver population using a ratio of insurance claims made by individuals who were injured by uninsured drivers to claims made by individuals who were injured by insured drivers.



8. Flyers with Newsletter Watch for the flyers with the paper version of our newsletter. A.M. Best is offering their Key Rating Guide for 20% off of their normal price and CIC is offering a Life and Health Institute in Salt Lake City on March 4 – 7th.
Also, CPCU is offering an ethics course on March 18th. For further information, contact Cathy Hampton at 801-715-7033.

9. Important Legislative Conference There are many important national issues to be discussed at the upcoming Big “I” Legislative Conference & Convention. You should consider attending and joining our Utah contingent as we visit our legislators in Washington D.C. April 30th to May 1st. Some of the issues that will be discussed are: insurance regulation, agent licensing reform, natural catastrophes, health insurance distribution and taxes. We have been able to find direct flights to D.C. for as little as $200 roundtrip.
The Big “I” knows the economy is on everyone’s mind and will address challenges and opportunities head-on at the general session. Stephen Dubner, rogue economist and co-author of the New York Times bestseller Freakonomics, will show you how economics is the study of incentives, or how people get what they want or need when others want or need the same thing. The state of the insurance industry and the association will also be addressed by Big “I” Chairman Brett Nilsson and by a CEO panel. The panel will consist of CEOs from The Hartford, Liberty Mutual, Progressive and State Auto. For further information go to: www.independentagent.com and click on the events link.

10. Reduce Your E&O Exposure The Big “I” recently endorsed Swiss Re’s new Agency Shield Program for their Insurance Agency Errors and Omissions (E&O) policyholders. The agency Shield Program is a value added loss control service and self-assessment program specifically designed for insurance agencies.
The Agency Shield Program is focused on reducing E&O claims costs by making it possible for an agency to do a comprehensive review and evaluation of the agency’s processes, procedures and guidelines. The procedures analysis featured in the Agency Shield Program enables easy implementation of standardized processes to help avoid future E&O claims. The program is affordable, easy for the average agency to implement and there is a real incentive with the premium credit to complete it. For further information contact UAIIA at 801-269-1200.