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AAIS staff specialists are reviewing a
proposal by U.S. Sen. Tim Johnson (D-SD) and U.S. Sen. John Sununu
(R-NH) to create a federal insurance charter that would allow life and
property/casualty carriers to operate nationwide under the supervision
of a federal regulator. While enactment of the law is far from assured,
AAIS will be planning its response to any new mandates or conditions
arising from it.
Gregory Heidrich, senior vice president for the
Property Casualty Insurers Association of America (PCI), said in
comments at the recent
AAIS Annual Conference that the PCI detects some
support for federal chartering among insurers that have previously
opposed the concept.
Johnson and Sununu say they introduced the proposal
because they believe many unnecessary barriers and redundancies still
exist in the state-based regulatory system. However, the introduction of
a dual state and federal regulatory system, as exists in banking, would
have profound impact on the property/casualty insurance market beyond
regulatory compliance.
As proposed, the act says little about rate and
form regulation. One provision states that national insurers would still
be subject to state laws mandating participation in advisory or
statistical organizations. Two other provisions state that national
insurers would not be required by state or federal law to use "any particular rate, rating element, price, or form."
James Sullivan, president and CEO of Co-Operative
Insurance Companies, Middlebury, Vt., was elected AAIS chairman at the
recent AAIS Annual Conference, held in Sarasota, Fla.
Sullivan succeeds Kenneth Stover, executive vice
president of Western National Insurance Group, Edina, Minn., who remains
on the AAIS board of directors. Succeeding Sullivan as AAIS vice
chairman is Darin Kath, president and COO of Jewelers Mutual Ins. Co.,
Neenah, Wis.
More details on the AAIS board are available in a
press release.
A report on the presentations at the AAIS Annual
Conference is also available, as is an online
conference evaluation
form. AAIS is seeking input from all of its members, whether they attend
the conference or not, regarding what they want most from industry
meetings.
AAIS affiliates that use the AAISdirect
Internet service have free online access to the residential
property valuation service provided by
e2Value, Inc.,
Stamford, Conn. The service provides systematic valuation procedures for
a wide range of residential property, including high value homes,
modular and kit homes, condos and co-ops, alterations and additions, and
more.
Access to the service will be available through May 9, 2006 to any company that uses AAISdirect for
any AAIS line of insurance program.
This is the second joint initiative between AAIS and
e2Value. Currently, carriers affiliated for AAIS farm programs have
access to e2Value's Farm & Ranch Estimator property valuation service
through AAISdirect.
For information on affiliating with AAIS or using
AAISdirect, contact Rick Maka, director of marketing, at
rickm@AAISonline.com or by
calling 800-564-AAIS.
Insurers writing fire coverage in Oklahoma have until
May 7, 2006 to inform the Oklahoma Insurance Department, in writing, of
the steps they are taking to determine if insureds are paying their dues
for protection by rural fire departments.
In a recent
bulletin, the department reminds
carriers that they are prohibited by statute from offering a special or
reduced rate to anyone who owns property in a rural fire protection
district, or in an area protected by a rural fire department, if they
fail or refuse to pay appropriate dues or subscription payments for fire
protection.
The department adds that applications for insurance
that covers fire should ask applicants with property in within a rural
fire protection district or in an area protected by a rural fire
department if they have paid their appropriate dues or subscription
payments. Carriers that have not already done so are directed to amend
their applications accordingly by May 7, and to inform the department of
any other steps they have taken to promote payment of rural fire
dues.
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