A U G U S T 2 0 0 5
Session By Shelley Arnold, CPCU,
AU, ARM, AAI
O THE 2005 GENERAL
ASSEMBLY HAS COMPLETED
BACK IN 2006. WE NEED
THEIR WORK FOR THE YEAR. TO BE PROACTIVE IN OUR
P THIS LEGISLATIVE SESSION MAY ATTEMPTS TO EDUCATE OUR
HAVE LEFT PRODUCERS WITH LEGISLATORS ON ISSUES
A SLIGHT SCRATCH, BUT FOR CRITICAL TO OUR INDUSTRY.
E THE MOST PART, UNHARMED. WE LOOK TO YOU FOR
T MANY, INCLUDING MARVIN
MANDEL, IIAM’S LEGISLATIVE
SUPPORT. WE NEED YOU
TO CONTACT LEGISLATORS,
LOBBYIST, ARE PREDICTING A EDUCATE CONSUMERS AND
D BIG INCREASE IN ACTIVITY IN CONTRIBUTE TO YOUR PACS.
THE 2006 SESSION. MANY OF SO HERE IS THE SKINNY!
THE BILLS THAT DIDN’T QUITE (con’t on page 6 )
MAKE IT IN 2005 WILL BE
in this issue . . .
AUTO INJURY CLAIMS BOAT MARKET TERRORISM INSURANCE
t a b l e o f c o n t e n t s
Columbus American G.M. Pusey & Associates, New Associate Member:
Insurance Agency, Inc. Inc. State Auto Insurance
WELCOME 7206 Good Luck Rd. 12101 Salt Point Rd. Company
Lanham, MD. 20706 Bishopville, MD. 21813 518 E. Broad St.
301-552-1342 302-436-0882 Columbus, Ohio 63215
301-552-9730 302-436-0887 614-464-5000
Columbus Okpali, Principal George Pusey, Principal 614-719-0311
Rob Gritton, Marketing
IIAM OFFICERS 2005-2006
12 Stephen Earll Chairman of the Board
Denise Carnes, CPCU President
Thomas C. Lowe, CPCU State National Director
Heather Parker, ACSR President-Elect
Berry Brown Vice President
Angela Ferguson Director-At-Large
Act” Shelley Arnold, CPCU, AAI Executive Vice President
THE MARYLAND MESSENGER INDEPENDENT AGENTS OF MARYLAND, INC.
Editor: Shelley Arnold, CPCU, AU, ARM, AAI
Graphic Designer: Laurie Hare
Advertising: Info @ www.iiamd.org
The Maryland Messenger is a monthly publication published for the exclusive use of regular and
associate members of the Independent Insurance Agents of Maryland. Publication of any article, let-
ter to the editor or advertisement in the Maryland Messenger should not be deemed an endorse-
ment by IIAM of the opinions expressed or products advertised. Questions and comments should
be directed to the editor, Shelley Arnold.
Editorial Office, IIAM, 2408 Peppermill Drive, Suite A, Glen Burnie, MD 21061
phone 410.766.0600 • fax 410.766.0993 • email firstname.lastname@example.org • www.iiamd.org
president’s m e s s a g e
Denise Carnes, CPCU
It’s summer, many are enjoying IIAM also has on-line continuing education
vacations, and various family courses. There is an on-line flood course
activities and it just seems available. Don’t forget that flood insurance
to be the prefect time to continuing education is mandatory for those
bring up the fun topic Agents selling Homeowners Insurance. Along
of “continuing with flood, IIAM has filed and received approval
education. ”We on 15 additional on-line programs which range
may be taking it a from 1 to 7 credit hours.
little easier than
usual but your I encourage you to checkout our Association’s
Association website for any and all educational issues. The
is hard at work offering a website is full of useful information and not just
variety of courses guaranteed to about education either.
increase your knowledge and fulfill those nasty
continuing education requirements. Just in case you don’t know it, the website
address is www.iiamd.org
In August, there are three classroom offerings
that provide 6 credits each. Speaking from
experience, the August 30th class, Best Practices
Errors and Omissions Loss Control, is a terrific
class. I encourage everyone to take this one at
September, October, November & December
also have various classroom courses sure to
interest those needing C.E. for renewals in the
(con’t from cover) We have added a two hour flood six bills were passed this past session
seminar to our on-line continuing relating to youthful drivers.
HB56-(Chapter 521) education offerings. If you are
The Social Security Number Privacy interested in taking the on-line class HB617-(Chapter 563)
Act. It is intended to curb the go to http://vu.iiaa.org/LMS/User/ The Life Insurance Freedom to
frequency of ‘identity theft’. A login.aspx?ReturnUrl=%2flms%2fde- Travel Act passed. This bill prohibits
person (which includes businesses) fault.aspx. The flood c.e. bill that an insurance carrier from refusing
may not post, print on a card passed last year required producers to insure an individual based on
(credit, medical, etc.), require writing flood to obtain the credits. It the individual’s past lawful travel
someone to transmit over the was broadened this year to include experiences. The bill was apparently
Internet (unless through a secure, all producers writing homeowners. the result of some carriers refusing
encrypted connection), or use one’s to write individuals who have
number to access the Internet, one’s HB393-(Chapter 542) traveled to the Middle East over
social security number (unless relates to minors with provisional the past several years.
required by state or federal law). The driving licenses. It prohibits the minor
bill does have one drawback, primari- from transporting other minors, HB1081-(Chapter 415)
ly you, as an individual, must request, unless they are a member of the Extends the bill that passed last year
in writing, to stop the use of your same household, or if there is regarding spousal immunity and limits
individual social security number. another driver in the vehicle that is of automobile insurance to apply to
over 21. It is a secondary moving parent-child immunity. The right of
HB160-(Chapter 33) violation and is in effect from the action may not be restricted by the
passed with flying colors. This bill issuance of the provisional until the doctrine of parent-child immunity or
requires licensed producers who 151st day. SB50/HB394- by any insurance policy provisions, up
write homeowners in the State to (Chapter 544) also relates to to the limits of motor vehicle liability
obtain continuing education hours in minors. It prohibits minors under a coverage or uninsured motor vehicle
flood. It is our understanding, provisional learners’ permit to use a coverage. This provision previously
producers will be required to obtain wireless communication device. A read ‘mandatory minimum limits
two (2) hours of flood related c.e. by similar bill has been introduced for required of §17-103.
2006. In order to assist our agents, the past several years, one which (con’t on page 7)
we have held five free flood seminars. would apply to all drivers. A total of
(con’t from page 6) Designee’ to file notices. This portion of effective dates after January 1, 2005.
HB1281-(Chapter 599) Maryland law, 19-406 relates to notices. The provisions found in the initial §24-
Extends the termination date for This legislation added non-renewal to 214, which allowed insureds to go
financial assistance as a result of the current cancellation provisions and directly to the Society and providing
Hurricane Isabel. All claims must be requires that in either case, cancellation those physicians that go direct a 4%
received by the Department of Housing or non-renewal (with the exception of rebate were eliminated. Surviving that
by 9/30/05 and may be considered for non-payment of premium), the Workers cut, however, the Society may not pay a
assistance until 5/31/06. Compensation Commission’s Designee commission at a rate higher than 5%.
receives a notice. It also eliminates the This provision initially applied to all
SB43-(Chapter 242) Task potential to have notices rescinded due providers of medical malpractice liability,
Force to Study Identity Theft (passed to grammatical, typographical or other but was amended to apply to the
last year, this legislation changes the errors and even erroneous information, Society only. It remains effective from
required participants of the Task Force). if in the absence of that information, the 1/11/05 through 12/31/09.
policy would still have been cancelled or (con’t on page 8)
SB61-(Chapter 108) non-renewed. This bill also changes
certified mail to certificate of mail.
Trailers & Semi-trailers-Registration-
Changed weight and fees for certain
types of semi-trailers.
SB85-(Chapter 115) Makes signature per MD
it clear that MAIF employees are state Constitution - Chapter 1)
employees with respect to the Maryland Maryland Patients’ Access to Quality
Tort Claims Act. Health Care Act of 2004-Corrective
Provisions. This bill thankfully, removed
many of the provisions that IIAM PASSED:
117) provides that the Commissioner objected to in the initial offering.
SHALL order an insurer, under a Specifically, SB836 repealed the
personal automobile policy, to pay provisions initially passed in §19-104.1
and adding §19-801 through 19-808, the HB160-(Chapter 33)
attorney fees if the insured must attend
a hearing and the Commissioner finds ‘Maryland Health Care Provider Rate HB393-(Chapter 542)
Stabilization Fund’. It also repealed and
that the insurer did not state an actual HB617-(Chapter 563)
reason for an increase in premium, amended §24-211, which requires that if
Med Mutual files for a rate increase of HB1081-(Chapter 415)
cancellation, non-renewal or reduction
in coverage (not in accordance with 7.5% or more and their surplus is more HB1281-(Chapter 599)
§27-501, the insurer’s filed rating plan than 500% of its authorized control SB43-(Chapter 242
level risk based capital, the
or underwriting standards, or the lawful
Commissioner may determine whether
terms and conditions of the policy).
the Society’s surplus is excessive and SB85-(Chapter 115)
SB128-(Chapter 285) after a hearing, may in fact order the SB97/HB265- (Chapter 117)
rates to be re-filed. The legislation
relates to Workers Compensation and SB128-(Chapter 285)
capped increases for medical malprac-
methods of cancellation and non- SB836-(Became Law without
tice premiums at 5% for policies with
renewal. It identifies a ‘Commission’s Governor's signat u re per MD
Constitution - Chapter 1)ter
One of the disturbing factors of the origi- emergency legislation because of the
nal bill, which remained, is the establish- ‘Medical Malpractice’ crisis….when did
2005 LEGISLATIVE ment of the ‘People’s Council’. The Homeowners sneak in? The ‘Council’ will,
People’s Council has been established to if they find that consumers are affected,
CON’T FROM PAGE 7
evaluate all medical professional liability appear before the Commissioner and the
and homeowners matters pending before courts if necessary, on behalf of the
the Commission. Their charge is to consumer. They will also review any
determine if the interests of insurance proposed rate increases of 10% or more
consumers are affected. I understand that and determine if they are inadequate,
HB2 was introduced and passed as unfairly discriminatory or excessive an
will appear before the Commissioner on
behalf of consumers, regarding the rate
filings. The ‘make-up’ of the Counsel will
be appointed by the Maryland Attorney
General and will consist of persons that
have been admitted to practice law in the
State. Another example that proves my
theory, ‘lawyers know everything about
everything, now actuary science! By the
way, after the ‘People’s Council’ was
established, the legislators thought they
should determine a way to fund the new
division and HB882 was introduced.
Unfortunately, the bill received an ‘unfavor-
able report’ from House Economic Matters.
WAY TO GO GUYS!
AND NOW, WHAT DIDN'T
MAKE THE GRADE . . .
(con’t on page 9)
AUGUST 200 5: 8
W H AT D I D N ’ T M A K E T H E G R A D E ?
(con’t from page 8) insurer. The insured’s signature is HB1280-This was ‘our’ bill. We
required on the statement. It defines introduced this bill on behalf of our
HB64/SB437- This bill would additional/optional coverage as a membership and the problems that many
have required insurers or an insurance coverage or service that covers the of our members have voiced when
producer to provide written annual structures, contents, property, or dealing with mortgage companies and
statements that provide a summary activities on property that is available banks that require their insureds to
of coverage. The bill was introduced for purchase in connection with a insure for ‘full loan value’ without
last year (HB1071) and failed, which standard homeowners policy. This bill is consideration of ‘true replacement cost’.
appeared to be happening this year certain to reappear. Your comments will §12-124 addresses the issue, but only
as well. The Senate bill received an be beneficial. with respects to a ‘first’ mortgage or
unfavorable report from Senate Finance, deed of trust. Most of the infractions seen
but after the fact, amendments were HB117, which would have required by agents are with re-financing, etc.
introduced and the Senate bill passed with insurers that write HO in Maryland to Besides, most mortgage companies aren’t
a vote of 46-0. The House version provide coverage for losses that result paying one bit of attention to the law.
of the bill did receive a favorable report from mold or mold remediation received IIAM has prepared information to assist
with house amendments and a vote of an ‘unfavorable report’ from the House your insureds in filing complaints when
136-0. Fortunately, the two chambers Economic Matters Committee. §12-124 has been violated. Please go to
could not agree on the amendments http://www.iiamd.org/
and the matter has been sent to a HB158 didn’t make the grade either. Loan%20vs.%20RC%20paper.PDF for a
conference committee consisting of This bill was introduced at the request of copy of that information. IIAM would also
Senators Astle, Hafer and Kelley. I IAM the MIA. It would clarify situations where request your assistance. We will be
has opposed this bill from the beginning an insurer moves an insured from one re-introducing this bill in the 2006
because of the additional responsibilities carrier to an affiliated carrier. Problems session. Please contact your legislators
placed on producers. I am certain that have surfaced where carriers use this now and let them know of the problems.
this bill had something to do with Isabel practice to write an insured as ‘new’ Keep in mind that not one legislator on
and Homeowners not aware of the fact instead of the ‘renewal’ it should be. the House Economic Matters Committee
that the HO policy does not provide voted for this bill. Please send any and all
flood coverage. I was positive that HO HB540-This bill was 23 pages long complaints to our office. We are tracking
policies were still delivered with the and affected several different parts of the violations. The banking lobby informed
warning that the policy did not provide insurance code, most dealing with notice the legislators last year that they have no
flood. There are adequate disclaimers provisions for cancellation and non- reports of complaints. We will prepare
that would make it clear that the renewal. It provided carriers with a 30 written statements for the legislators.
summary is not part of the contract and day ‘free look’ period for new business
that the insured should read their policy, binders (personal automobile, homeown- SB872- Would have authorized the
however, it also provides that the ers and commercial property and Maryland Automobile Insurance Fund to
producer that sells or negotiates home- casualty). The bill also clarified the 45 day provide directly or indirectly for the
owners shall provide an applicant, at notice with respects to premium financing of premiums charged on policies
the time of the application for increases. It was unsuccessful this year, issued by the Fund; and authorized the
homeowner’s insurance, a written but I would think it would resurface Fund to accept premiums on
statement that lists all additional/ during the 2006 session. an installment basis. 2005:9
optional coverages available from the
St. Paul Travelers writes more farm and ranch business
AGRIBUSINESS through independent agents than any other carrier. As
the premier provider of agricultural insurance, we have a
broad appetite for entities that grow crops or raise live-
stock. We have the underwriting expertise to handle
large complex agricultural businesses and the automation
to be a low cost provider to small farming operations.
We have a broad appetite in the agricultural field to
include gentleman farms, equine, row croppers and a
variety of other farming operations. We offer a wide
range of coverage, including Automobile, Property,
General Liability and Excess, tailored to protect each
farming operation. Additional endorsements to meet
RECENTLY WE MET WITH THE your individual customer¤™s needs are also available.
These include enhanced pollutant, extra expense and busi-
ness income, disruption of farming operation and foreign
LEADERSHIP OF ST. PAUL
objects in machinery coverage endorsements; the latter
of which is excluded in most standard farm policies.
For additional information on insuring
DIVISION. THEY EXPRESSED A your customers growing business, feel
free to contact:
STRONG INTEREST IN FURTHER
Tammy Matsey, Account Executive
DEVELOPING THEIR BUSINESS IN 804-330-6633
Becky Carpenter, Account Manager
COMMENTS FROM ST. PAUL 804-330-6630
TRAVELERS, ALONG WITH
Carl Miller, Regional Vice President
CONTACT INFORMATION, ARE
LOOKING FOR A
NATIONAL MARINE UNDERWRITERS, INC. (NMU), IN
ANNAPOLIS, MD HAS JUST WHAT YOU ARE LOOKING FOR.
NMU IS A LOCAL AGENT AND MEMBER OF IIAMD. BOATS ARE
ALL NMU DOES SO YOU DON’T HAVE TO WORRY ABOUT
EXPOSING THE REMAINDER OF YOUR ACCOUNT. TO GET
SIGNED UP SIMPLY CALL OUR TOLL FREE NUMBER 800-
BOATINSURANCE (800-262-8476) AND REQUEST A BROKER
KIT. THERE ARE NO MINIMUM PREMIUM OR POLICY REQUIRE-
MENTS. WE ARE HERE TO HELP YOU COVER YOUR CUSTOMERS.
Boats up to 64’ in length and $400,000 in value are accepted into the primary program.
Coverage for larger vessels, higher valued vessels, and personal watercraft can be secured
through other markets by NMU. Quotes can be completed on the phone or real-time on
the Internet at www.nmu.com. A normal quote can be completed in as little as 5 minutes.
Once the initial quote is completed and accepted by the customer NMU does the rest of
the work. We issue the policy, bill the customer, collect the premium, service the
account and renew the policy. You can sit back, relax and collect your commission on
new and renewal policies. If a claim were to occur a sister company of NMU’s,
International Loss Management, would be involved in the claims process.
The policies are written on admitted A+ paper in all states, excluding Alaska and Hawaii.
The policy is an all risk agreed value policy. Liability limits up to $500,000 are available.
Other included coverages are: personal effects, medical payments, towing, and uninsured
boaters. The navigational area includes inland and coastal waters of the US and coverage
can be increased to allow for navigation to the Bahamas and Caribbean for qualified boats.
NMU can write many risks that other markets are not interested in including many high
performance boats. Coverage for six passenger charter vessels is also available.
If you have any questions or would like to sign up please call John
Beachley at 800-262-8467.
Auto MALVERN, Pa.— Auto injury claimants from four states seek different types
of medical treatment, even though they report similar injuries. A new study of
Injury insurance claims by the Insurance Research Council(IRC) examined auto injury
claiming behavior in California, Illinois, Texas, and Washington. Comparing
Medical auto injury claims from these four tort states, IRC finds that California
claimants go to chiropractors most often, Illinois claimants are most likely to
Treatment see an emergency room physician, and Washington claimants are most likely
to go to general practitioners, as well as alternative medical providers, such
Differs by as massage therapists. From 1997 to 2002, per-claimant medical expenses
increased the most in Texas, compared with the other three states.
State The recently released IRC study, Analysis of Auto Injury Insurance Claims in Four
by Risa Pitman Tort States, examines detailed information from auto injury claims that closed
with payment in 4 states with similar auto insurance regulations: California, Illinois,
Texas, and Washington. The analysis reveals the following differences and
similarities among bodily injury liability (BI) claims in these 4 states:
•• In each of the four states, neck or back sprains were the most serious
injury for at least seven in ten BI claimants and at least three-quarters suffered
no disability from the accident.
•• In California, 57 percent of BI claimants went to a chiropractor compared
with 28 percent in Illinois, 43 percent in Texas, and 46 percent in Washington.
•• More than half (53 percent) of California BI claimants’ medical fees came
from chiropractors, compared with 26 percent in Illinois, and 44 percent in
both Texas and Washington.
•• From 1997 to 2002, average claimed medical expenses increased by 39
percent in Texas, compared with 25 percent in California, 24 percent in
Illinois, and 9 percent in Washington. Over this same time period, medical
cost inflation was 22 percent, according to the CPI.
(con’t on page 18)
INDUSTRY LEADERS WILL EXAMINE MAJOR
INDUSTRY ISSUES DURING SEPTEMBER EVENT
BIG “I” ALEXANDRIA, Va., July 26, 2005—Five top insurance industry leaders will
participate in a CEO panel discussion during the opening session of the
Independent Insurance Agents & Brokers of America’s (Big “I”) Convention
ANNOUNCES in New York, announces Big “I” CEO Robert A. Rusbuldt.
CEOs participating as panelists for the discussion are: Frederick H. Eppinger,
CEO, Allmerica Financial Corp.; Robert J. Joyce, chairman and CEO, Westfield
CEO PANEL Group; Charles M. Kavitzky, president and CEO, Fireman’s Fund; Axel P.
Lehmann, CEO, Zurich North America Commercial; and William J. Mullaney,
president, MetLife Auto & Home.
Thousands of independent insurance agents, brokers and other insurance
professionals are expected to attend the Association’s premier event, which
will be held Sept. 10 through 12 at the Hilton New York & Towers in
YORK New York City.
Rusbuldt will moderate the discussion, which will tackle major issues affecting
CONVENTION the independent agency system and the insurance industry. Panelists are expect-
ed to discuss current challenges facing the insurance industry, federal and state
legislative and regulatory issues, market trends, technology initiatives, industry
diversity activities, the future of the independent agency system and more.
“Once again, we have an excellent panel this year, comprised of a great cross
section of industry leaders who are vitally important to independent agents
and brokers,” Rusbuldt says. “These leaders will provide an expert and insider
look at the future of the independent agency system and the property/casualty
industry as a whole. Our members are greatly looking forward to hearing
these movers and shakers share their insights with us in New York.”
The Big “I” Convention will feature nationally recognized speakers, such as
“America’s Mayor,” Rudy Giuliani, who revitalized New York City during his
tenure (1993-2001) and inspired his city—and the nation—to come together
and move forward in the wake of the Sept. 11, 2001, terrorist attacks.
The convention also features insightful continuing-education workshops, numer-
ous networking events and the largest trade show in the insurance industry.
Online registration for the Big “I” Convention is also available at the website.
For more information about the Big “I” Convention, contact the Convention
AUGUST 2005:14 and Meetings Department at (800) 221-7917.
For more information about the
Big “I” Professional Liability
Program, please contact
Wanda Spargos at 410-766-0600.
quality BIG “I” B E L I E V E S T R E A S U RY A NA LYS I S
R E F L E C T S N E E D F O R F E D E R A L RO L E I N
T E R RO R I S M I N S U R A N C E
A sso c iatio n disagr ees w it h a number o f r epo r t ’s spe cific s but w ill w o r k
fo r feder al backst o p
WASHINGTON, D.C., -The Independent Insurance Agents & Brokers of America
(Big “I”) expressed both cautious optimism and concern over Administration
comments regarding a federal backstop for terrorism insurance.
The Terrorism Risk Insurance Act (TRIA) is set to expire Dec. 31, and Congress
has been waiting for the results of a Treasury Department study before deciding
whether to renew it. The Treasury analysis was released today.
The Big “I” commends the Administration for issuing the comments on time and is
cautiously optimistic yet concerned about the statement’s tone, in which the
Administration laid down parameters within which renewed legislation should fall.
“We applaud the Administration and Congress for putting TRIA in place after the
horrific attacks of 9/11 in order to stabilize the insurance market before the worst
effects of the availability and affordability crisis further injured our economy,” says
Charles E. Symington Jr., Big “I” senior vice president for government affairs and
federal relations. “President Bush and Congress were correct in supporting a fed-
eral backstop for terrorism insurance when it was first proposed, and we look
forward to continuing our work with policymakers as they grapple with this very
important issue once again with expiration of the current TRIA program looming.”
“Agents and brokers serve as valuable professional trusted advisors between
consumers and insurers, and we believe that the Administration’s comments
suggest that there is an appropriate federal role to ensure a workable insurance
marketplace in the event of terrorism losses,” Symington adds. “However, some
of the Treasury conclusions may be more wishful thinking than business reality.
We must ensure that we have markets for our business customers.”
With the risk of catastrophic attacks on U.S. soil still very real, and the capability
of both insurers and reinsurers to offer comprehensive terrorism coverage for an
uninsurable risk still very limited, the Big “I” continues to push for the extension of
a federal backstop by Congress.
The Big “I” has consistently supported the continuation of the current terrorism
insurance backstop or a modified one, and it has noted in testimony before
(co n’t o n page 17)
( co n’t fr o m page 16)
Congress that action is needed as soon as possible, since businesses and
insurers are starting to make decisions that impact operations beyond
the expiration of TRIA.
The Big “I” also notes that the availability and affordability of terrorism
insurance is a business customer problem throughout the nation. In fact,
take-up rates under TRIA have continued to grow across the country,
and IIABA members have seen terrorism coverage purchased by a
variety of interests, from small towns in Mississippi to small and large
businesses in New York City. IIABA does not want its business
customers to be in a position of having insurers exclude terrorism
coverage, or having insurers stop writing certain commercial coverages
T H E B I G ‘ I’ A N D
altogether in some states that do not allow exclusions for terrorism
coverage. IIABA’s focus is on its customers, and it knows that many of
I N S U R A N C E AG E N T S
its business customers need this coverage.
A N D B RO K E R S H O P E
T H AT P O L I C Y M A K E R S
W I L L D R AW O N T H E “The Big ‘I’ and our 300,000 insurance agents and brokers hope that
EXPERIENCES OF THE policymakers will draw on the experiences of the current program in
C U R R E N T P RO G R A M crafting a mechanism that will better serve consumers and protect our
IN CRAFTING A economic security, and we urge members of Congress to move forward
M E C H A N I S M T H AT now and pass legislation to ensure a federal backstop for acts of
W I L L B E T T E R S E RV E terrorism,” says Brendan Reilly, Big “I” director of federal government
CONSUMERS AND affairs. The Big “I” acknowledges the thorough work of the Treasury
P ROT E C T O U R
Department in issuing its study.
E C O N O M I C S E C U R I T Y,
A N D W E U RG E
“While we disagree with a number of the conclusions in the report, we
believe the Treasury Department’s analysis indicates that there is a role
C O N G R E S S TO M OV E
F O RWA R D N OW A N D for the federal government to play in the terrorism insurance market-
PA S S L E G I S L AT I O N TO place to ensure the availability of adequate levels of insurance to allow
ENSURE A FEDERAL businesses across America to continue operating and growing, and
BAC K S TO P F O R AC T S preserving jobs in the process. We agree that TRIA has been effective
O F T E R RO R I S M . in stabilizing the insurance marketplace following 9-11 and urge the
Administration and Congress to extend a federal backstop promptly as
the marketplace has not fully recovered,” Symington says.
(con’t from page 13)
Similar patterns emerged in first-party medical
payments (MP) claims in California and Illinois, along
with personal injury protection (PIP) claims in Texas
In all four states, average BI payments exceeded claimed
economic losses, reflecting auto insurance
payments for general damages, sometimes referred
to as pain and suffering. In 2002, claimed economic
losses, mainly consisting of medical expenses, were high-
est in Illinois and California BI claims,
averaging $5,506 and $5,409 respectively. The
corresponding average insurance payments to BI
claimants were $7,850 in Illinois and $7,830 in
AUTO INJURY CLAIMANTS FROM FOUR STATES
SEEK DIFFERENT TYPES OF MEDICAL TREATMENT
California. In comparison with these two states, Texas
TEXAS claimants averaged lower reported economic losses
($4,483) and BI payments ($5,768). Washington BI
IILINOIS claimants’ economic losses averaged $3,833, the
lowest of the four states. However, average BI
CALIFORNIA payments were $7,594 in Washington, near the levels in
Illinois and California. “Auto insurance claimants often
WASHINGTON seek different types of medical treatment for the same
types of injuries, and this apparently varies by the state
in which the accident occurs,” explained Elizabeth A.
Sprinkel, senior vice president of the IRC. “Regardless
of treatment type, however, insurers’ BI payments
exceeded claimed expenses on average in each of these
For more detailed information on the study’s
methodology and findings, contact Elizabeth Sprinkel by
phone at (610) 644-2212, ext. 7568; by fax at (610)
640-5388; or by e-mail at email@example.com. Or visit
IRC’s Web site at www.ircweb.org. Copies of the study
are available at $100 each in the U.S. ($115
elsewhere) postpaid from the Insurance Research
Council, 718 Providence Rd., Malvern, Pa. 19355-0725.
Phone: (610) 644-2212, ext. 7569.
AUGUST 2005:18 Fax: (610) 640-5388.
August 10 September 20
Miscellaneous Commercial Lines Market Conduct & Maryland Law
9:00 a.m.- 4:00 p.m. 9:00 a.m.-12:00 p.m.
Susan Reese Shelley Arnold
6 hrs. c.e. 3 hrs. c.e.
August 17Commercial General Liability September 21
9:00 a.m.- 4:00 p.m. Personal Automobile
Trish Hanneman 9:00 a.m.-4:00 p.m.
6 hrs. c.e. Joe Conroy
6 hrs. c.e.
Best Practices Errors & Omissions Loss Control September 26-30
9:00 a.m.- 4:00 p.m. Pre-Licensing
Stanley Lipshultz Registration Deadline:
6 hrs. c.e. 9-5-05
8:30 a.m. - 4:30 p.m.
September 7-8 Joe Conroy
P/C Cram Course** 00 hrs. c.e.
8:30 a.m .- 4:30 p.m.
Joe Conroy AUGUST 2005:19
0 hrs. c.e.**
T i d bits
Since the Gramm-Leach-Bliley Act Tom Walden, community bank
NEW D&O/COMPANY of 1999, community banks have specialist, Insurance Alliance in
LIABILITY POLICY FOR
ventured into activities well beyond Houston, Texas. "Non-erosion of
the traditional banking arena. John their limit of liability is key."
Wells, director of Progressive's
Changing Banking Environment
Professional Liability Group said: "I'm in constant discussions with
Leads To Increased Need for
"Bankers are concerned about not bankers regarding new subsidiaries
only depositor and lender liability, but and services they are offering," said
are looking for broad coverage for all Walden. "The new Progressive
MAYFIELD VILLAGE, Ohio, -In
their professional services. They also product provides me the flexibility to
response to the increasing complexity
now understand that a significant select coverages currently needed for
of community banking, Progressive
number of lawsuits are coming from these services, while providing broad
Casualty Insurance Company
third parties, which are not typically coverage for new services that may
(Progressive), underwriter for the
covered under the policies in the be contemplated in the future. And at
ABA-sponsored insurance program,
market today." the end of the day, I can reassure the
has released a new D&O/Company
bankers that their personal coverage
Liability Policy for Financial
The policy continues to provide a is not compromised."
Institutions. The new policy allows
special "non-erosion" feature that
bankers to protect the directors,
ensures that limits are available to The policy has been approved in
officers and the bank itself against
protect directors' and officers' per- most states, and is available through
exposures arising from the many
sonal liability, even if claims are paid independent agents. For more
services they now provide, under
for suits against the bank itself. "As information, contact Judi Kovach at
either a broad-form contract or on
coverage for the bank itself is expand- (800)274-5222, or visit
an individual named peril basis.
ed, bankers want to know that their www.banks.progressive.com.
own personal liability is covered," said
Beginning July 16th, DC police officers will be handing out $300.00 tickets to those unable to show proof of insurance.
Motorists in DC must be able to show proof of automobile insurance following an accident, during a routine traffic
stop and even at 'checkpoints'. Make sure your insured has their automobile card and that they carry it at all times.
SPECIAL EVENT INSURANCE
The summer months are full of all kinds of special events, and that means a marketing
opportunity for you. The litigious nature of our society has made it increasingly necessary for
organizations of all kinds to require and need insurance to provide protection during their
special events, hence the need for event liability insurance. While weddings and receptions are
a common source of event liability sales, the following are events largely associated with the
summer months that you may not realize present an opportunity for you to insure:
Sidewalk sales; craft shows, antique shows, concerts, picnics, livestock shows, and street fairs.
For a comprehensive list of events that you can insure on Big "I" Markets, visit
So seek out event sponsors and let them know that they need to insure their events, and that
you can do it for them. Then cross sell the sponsors for their auto, home, life, etc.! Now that
would be special.
B I G “ I ” P E R S O N AL U M B R E L LA R AT E D A + !
On June 28th, 2005, RLI Group, RLI Insurance Company
and RLI Indemnity all received "Superior" ratings from
A.M. Best and their Best Ratings service. Those of you
writing RLI personal umbrella (PUP) and in-home
business through the Big "I" endorsed relationship with
RLI should take note of this affirmation of their claims
paying ability. PUPs are perhaps one of the most important
policies you sell to have a strong financial resume from the
covering insurer. For more information you can go to our
website at www.iiamd.org and to Insurance Programs,
where you will find an RLI PUP application and rate sheet,
as well as a BOP application, which can be rated on-line.
So hurry up and make sure all of your clients have an
umbrella, lest something go wrong at one of their summer
special events and they find themselves being sued.
Big “I” HAILS
of ‘Health Act’
LEGISLATION WILL IMPROVE ACCESS TO MEDICAL CARE , REDUCE EXCESSIVE LIABILITY BURDEN
WASHINGTON, D.C., - ”The Independent Insurance Agents & Brokers of America (the Big “I”)
hailed the House of Representatives passage of a medical liability reform bill as a great step forward
in legal reform.
H.R. 5, the Help Efficient, Accessible, Low-Cost Timely Healthcare (HEALTH) Act, sponsored by
Rep. Phil Gingrey (R-Ga.), includes a number of provisions that will reduce the excessive liability
burden on physicians and, in the process, increase consumer access to quality medical care. Leading
· Three-year statute of limitations
· $250,000 limit on noneconomic damages
· Allowance for courts to restrict payment of attorney fees
· Limitations on punitive damages to “malicious intent” or “failure to avoid
· Limitations on liability for manufacturers, distributors, suppliers and
providers of medical products that comply with Food and Drug
Administration (FDA) standards.
(co n’t o n page 23)
IIAJC Maryland Qualifier Joe Rice, Chris
O'Neil and Klley
Manders. Joe is the
The IIAJC Maryland qualifier was held on July 7, 2005. son of Joe Rice of
This year's male qualifier, out of a field of 18, and J.E. Rice Insurance in
our represenatative at the National Tournament is
Mark Hammond, a 17 year old from Ijamsville,
Maryland. The female qualifier is Jessica Unger, a 17
year old from Bethesda. Jessica played in the Virginia
tournament. We congratulate both golfers and wish Mark Hammond, male
qualifier with Steve
them luck at the Nationals. We would also like to
Earll, Chairman of
express our sincere thanks to Steve Earll, Chairman, Maryland's IIAJC.
for his continued efforts to make this a wonderful
tournament for our youth.
(co n’t fro m page 22)
“We are very pleased this bill has passed the House of
Representatives,” says Charles E. Symington Jr., Big “I” senior
vice president of government affairs and federal relations. “It
puts into place common-sense legal standards that will reduce
the financial burden on physicians. This ultimately will be good
for consumers, who have been hit with rapidly rising costs for
quality medical care. The out-of-control medical liability system GRAPHIC DESIGN
has been a major component in these rising costs.”
Please call Laurie
“With the possibility of being sued at the drop of a hat, not only or email me at
have medical costs skyrocketed, but many doctors have retired lauriehare'()!@
or gone out of business because they can’t afford their premi-
discuss your ideas
ums,” says Brendan Reilly, Big “I” director of federal government for BROCHURES*
affairs. “This has been particularly true in specialized fields like
obstetrics, to the degree that in many parts of this country, it INVITATIONS* ETC!
has become excessively difficult for patients to find doctors for
certain medical needs. H.R. 5 is a pro-patient bill that will reduce
costs and help good doctors remain in business, and we urge the
Senate to pass it as well.”