October 10, 2007 INDIANAPOLIS – Hoosiers who own a 1992 Oldsmobile Cutlass may want to invest in some additional anti-theft devices, based on a study naming that car the most-stolen automobile in Indiana. The National Insurance Crime Bureau’s (NICB) 2006 Hot Wheels list, released this week, ranks the top ten most stolen cars in the nation and each state. The study also indicates Indiana is one of only 16 states to see an increase in auto thefts in 2006. The number of thefts in Indiana rose from 21,744 to 21,866 – an increase of one-half percent. While it’s not a major increase, the number of thefts nationally dropped 3.4 percent. “This is a sign that Hoosiers need to take better care of their vehicles,” Insurance Institute of Indiana President Steve Williams said. “We aren’t hitting the panic button here, but if thefts in Indiana continue to rise while the rest of the nation falls, that could have an impact on auto insurance premiums.” The FBI estimates the average value of a stolen vehicle is $6,649. Using that figure, auto theft caused more than $145 million in losses last year. Nationwide, there were 1,192,809 motor vehicle thefts – a $7.9 billion loss. The ’92 Cutlass was the most commonly stolen vehicle in Indiana, but that make and model did not make the nationwide list. The 1995 Honda Civic was the most-stolen vehicle in the country last year. Indiana United States Rank Vehicle Rank Vehicle 1 1992 Oldsmobile Cutlass 1. 1995 Honda Civic 2 1989 Chevrolet Full Size 1500 Pickup 2. 1991 Honda Accord 3 1993 Ford Taurus 3. 1989 Toyota Camry 4 1997 Chevrolet Cavalier 4. 1997 Ford F-150 Series Pickup 5 1991 Chevrolet Caprice 5. 2005 Dodge Ram Pickup 6 2004 Pontiac Grand Am 6. 1994 Chevrolet C/K 1500 Pickup 7 1997 Ford F150 Series 7. 1994 Nissan Sentra 8 1991 Chevrolet Blazer 8. 1994 Dodge Caravan 9 1990 Buick Lesabre 9. 1994 Saturn SL 10 1997 Pontiac Grand Prix 10. 1990 Acura Integra “Vehicle thieves are opportunistic criminals,” Williams said, “so Hoosiers can do a lot to protect themselves against theft. This is a very preventable crime.” Drivers can protect their vehicles in a variety of ways. The Insurance Institute of Indiana and the NICB recommend a “layered approach” to minimizing your risk. 1. Common Sense – Remove keys from ignition, lock your doors, close your windows, park in well-lit areas 2. Warning Devices – Audible alarms, steering wheel locks, brake locks, theft deterrent decals, VIN etching, etc. 3. Immobilizing Devices (devices that prevent hot-wiring) – Smart keys, fuse cut-offs, kill switches, ignition disablers, etc. The Insurance Institute of Indiana is an insurance trade association representing insurance companies doing business in Indiana. Visit us on the web at www.insuranceinstitute.org. -30- 10/10/2007 12:00:00 AM July 11, 2007 INDIANAPOLIS – Insurance and fraud groups are inviting insurance professionals to a half-day Insurance Fraud Seminar on Tuesday, Aug. 28, at the Indiana Government Center. The event is being hosted by the Insurance Institute of Indiana, the Indiana Chapter of the National Society of Professional Insurance Investigators (NSPII), the Indiana Chapter of the International Association of Special Investigation Units (IASIU), and the Indiana Department of Insurance. The Insurance Institute will welcome guests at 11:00 a.m., and lunch will be served at 11:30 a.m. Indiana Insurance Commissioner Jim Atterholt will address the group at noon. The Seminar will continue with presentations regarding surveillance, methamphetamines and property claims, red flags in medical examinations, origin and cause fire examinations, and good faith claims handling. Insurance fraud is a serious problem in Indiana and throughout the United States, costing Americans billions of dollars. The Coalition Against Insurance Fraud estimates more than $80 billion of insurance fraud takes place each year. This translates into higher insurance premiums and increased costs for running a business, owning a home, or driving a car. The Insurance Institute of Indiana, NSPII, IASIU, and the Indiana Department of Insurance believe education is a key component in reducing fraud and saving consumers money. The Insurance Institute has applied for attendees to receive 3 hours of CE, CLE and CPCU credit for this event. Cost of attending is $55 for registrations postmarked on or before July 26, and $65 for registrations postmarked after July 26. An agenda and registration forms can be found online at www.insuranceinstitute.org/fraudseminar.pdf. For more information on attending the 2007 Insurance Fraud Seminar, please contact Jon Zarich at jmz@insuranceinstitute.org. The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org. -30- 7/11/2007 12:00:00 AM Jay Kenworthy, June 6, 2007 INDIANAPOLIS – The Executive Committee of the Insurance Institute of Indiana has promoted Marty Wood to the position of Vice President, effective immediately. Wood, formerly the Institute’s Assistant Vice President of Government Affairs, fills the position for the first time since the 2003-04 fiscal year. “We take the position of Vice President very seriously,” Institute President Steve Williams said. “Marty’s professional growth has been significant. He has a highly developed political sense and is a fine lobbyist. I rely on him and trust his judgment.” Marty Wood first joined the Insurance Institute staff in 2001 as the Director of Media Relations. He served in that capacity until 2005, when he was promoted to AVP of Government Affairs. Before working at the Institute, Marty worked in the Indiana House of Representatives, where he served as a Legislative Assistant, Public Information Officer, and Communications and Media Director between 1993 and 2001. Marty is the Institute’s lobbyist responsible for commercial lines, health, taxation and budget issues. Among other issues, he has played a key role in the deregulation of commercial insurance rates (2006) and forms (2007) and the elimination of Most Favored Nation clauses in health provider contracts (2007). Institute Chairman of the Board Joe Yeager (Indiana Insurance) says Marty has been vital to many industry successes in recent years. “Marty has demonstrated a firm grasp on industry issues and a unique ability to convey those issues to government officials,” Yeager said. “He is a valuable part of this organization and this promotion is well-deserved.” He graduated from Ball State University in 1993 with a B.S. in political science. He is a member of the Government Affairs Society and the Indiana Society of Association Executives. The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org. -30- 6/6/2007 12:00:00 AM April 30, 2007 INDIANAPOLIS – A bill to ban municipalities in Indiana from charging accident response fees (House Enrolled Act 1274) flew through the Indiana General Assembly Saturday. Pending Governor Mitch Daniels’ signature, this prohibition is the first of its kind in the nation. Several vendors across the country are touting these fees to cities and towns as a solution to police funding woes. The vendors convince the local governing body to pass an ordinance allowing insurance companies to be billed when police come out to investigate a traffic accident. Because most insurance policies in Indiana do not cover these fees, the bill is passed on to the citizen, who is surprised with a bill ranging anywhere from $200-$500. In Indiana, the towns of Cumberland, in Marion County, and Griffith, in Lake County, have adopted these ordinances. Several others, including Huntington, Indianapolis and Merrillville have rejected these fees. “Hoosiers pay property taxes and other taxes to pay for these basic services,” Insurance Institute President Steve Williams said. “These vendors push some towns to bill their citizens again. This is not appropriate.” Insurance companies have voiced fear that such fees would encourage people to leave the scene of an accident. “An accident victim who is afraid of seeing a $400 police bill may leave the scene of an accident,” Williams said. “Any ordinance that encourages this behavior is bad public policy. The legislature has recognized this and addressed it strongly in HEA 1274.” The ordinances that the private vendors are convincing municipalities to pass also bring up several ancillary issues. First and foremost, they ask law enforcement officers to determine fault at the scene of the accident so the town can bill the at-fault driver. However, this violates the Constitutional right to due process that includes a trial by jury. Several communities in Indiana have rejected a push to enact accident response fees, paving the way for this legislation. Several other states, however, have seen dozens of cities, towns and counties passing these ordinances. Pennsylvania is considering a ban, but has met some resistance. The Indiana General Assembly, however, passed the bill with only one vote against it the entire legislative session. The final version of the bill passed the House of Representatives 93-1, and the Senate 47-0. Representative Ron Herrell (D-Kokomo) authored the bill, and Senator Richard Bray (R-Martinsville) was the Senate sponsor. “This is going to be a big benefit to the citizens of Indiana,” Representative Herrell said. “They will no longer have to pay these exorbitant fees simply to have accidents investigated. Our law enforcement officers are paid by taxpayer dollars, and they shouldn’t have to pay extra fees.” House Enrolled Act 1274 also contains a section designed to keep the cost of crash reports in check. Under the law, Hoosiers can view reports at no charge, but must pay a fee to make a copy. The bill caps the fee at $8. In some parts of the state, law enforcement agencies have charged as much as $25 per report. The Indiana State Police currently have a contract allowing a $12 charge for accident reports. This legislation does not affect that contract. The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org. -30- 4/30/2007 12:00:00 AM April 24, 2007 INDIANAPOLIS – The Indianapolis metropolitan area ranks 50th in the nation for vehicle thefts per capita, according to data released today by the National Insurance Crime Bureau (NICB). Of 361 Metropolitan Statistical Areas ranked, Lafayette was Indiana’s best at 296th. The NICB’s Hot Spots report uses Metropolitan Statistical Areas (MSAs) as designated by the federal Office of Management and Budget. MSAs may include areas surrounding a specific city. Rankings are determined by vehicle thefts per 100,000 inhabitants. Indiana cities are ranked as follows: 50. Indianapolis-Carmel 74. Chicago (includes Jasper, Lake, Porter and Newton counties in Indiana) 77. Louisville (includes Clark, Floyd, Harrison and Washington counties) 111. Terre Haute 135. South Bend-Mishawaka 136. Elkhart-Goshen 139. Michigan City-LaPorte 177. Cincinnati (includes Dearborn, Franklin and Ohio counties) 207. Columbus 212. Fort Wayne 226. Kokomo 263. Muncie 274. Evansville 277. Anderson 287. Bloomington 296. Lafayette Preliminary data shows a 2.3 percent decrease in auto thefts nationwide in 2006 compared to 2005. Indiana’s trend is similar, with a 2.4 percent decline. “Hoosiers enjoy lower auto insurance premiums than much of the country,” Insurance Institute President Steve Williams said. “One of the contributing factors is the low rate of car theft. A good way to keep premiums low is to protect your vehicle from criminals.” Hoosiers can protect their vehicles in a variety of ways. The Insurance Institute of Indiana and the NICB recommend a “layered approach” to minimizing your risk. 1. Common Sense – Remove keys from ignition, lock your doors, close your windows, park in well-lit areas 2. Warning Devices – Audible alarms, steering wheel locks, brake locks, theft deterrent decals, VIN etching, etc. 3. Immobilizing Devices (devices that prevent hot-wiring) – Smart keys, fuse cut-offs, kill switches, ignition disablers, etc. Nationally, Las Vegas rated as this year’s NICB “Number One Hot Spot”. The Nevada city had nearly 22,500 vehicle thefts, or 1,312 per every 100,000 residents. The Indianapolis MSA had only 500 thefts per 100,000 residents. All but two of the top 20 cities are western cities. Detroit (16th) and Myrtle Beach, SC (19th) were the only cities in the eastern portion of the United States ranked in the top 20. Indianapolis, Chicago, Cincinnati, Fort Wayne, Muncie, Evansville, Bloomington and Lafayette all saw a decline in per capita thefts in 2006. Michigan City-LaPorte experienced the sharpest increase. Their position worsened from 204th in 2005 to 139th in 2006. The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org. -30- 4/24/2007 12:00:00 AM Jan. 17, 2007 INDIANAPOLIS – In a year where coastal states endured no major tropical storms, Indiana saw more property damage due to large weather events than any other state in 2006, according to statistical firm ISO. Indiana residents filed nearly 335,000 insurance claims and suffered about $1.5 billion in property damage due to major events – known as catastrophe, or “cat” events. While there were eight major events in Indiana in 2006, the April 14 hail storm was by far the largest. That storm caused $1.3 billion dollars in damage and led to 282,500 claims being filed. The next largest storm to hit Indiana last year was on April 2 and 3. This “Final Four Storm” famously caused massive amounts of damage to the Regents Bank Building in downtown Indianapolis. By comparison, that catastrophe caused only $60 million in property damage. Institute President Steve Williams says it remains to be seen how this bad weather year will affect future premiums. “Insurance premiums have been falling in Indiana for years, and we are in good position relative to the rest of the country,” Williams said. “Companies take a lot of variables into consideration when setting rates. It’s difficult to say what 2006 will do to prices.” Williams emphasized that Indiana currently ranks 11th in average auto premiums and 22nd in homeowners premiums. Hoosiers should not expect to see massive rate hikes like some are experiencing in the coastal states. The catastrophe events of 2005 – including Hurricanes Katrina and Rita – caused record losses in those states. This year’s catastrophe costs fell dramatically, as shown below. Year Insured Loss ($) # of Events 1997 $2.6 billion 25 1998 $10.1 billion 37 1999 $8.3 billion 27 2000 $4.6 billion 24 2001 $26.5 billion 20 2002 $5.9 billion 25 2003 $12.9 billion 21 2004 $27.5 billion 22 2005 $61.9 billion 24 2006 $8.8 billion 33 Total $169.3 billion 258 Source: ISO Indiana’s catastrophe losses paled in comparison to the top losses of 2005. Below is a chart of the state’s with the most losses in the last two years. 2006 Catastrophe Losses State Loss ($) Indiana $1.5 billion Missouri $878 million Tennessee $873 million Texas $688 million Kansas $601 million 2005 Catastrophe Losses State Loss ($) Louisiana $27.2 billion Mississippi $12.2 billion Florida $9.9 billion Texas $2.9 billion Alabama $1.5 billion Source: ISO The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org. -30- 1/17/2007 12:00:00 AM January 1, 2007 INDIANAPOLIS – The Indiana House Insurance Committee took the first step toward a more favorable insurance tax climate by unanimously passing a premium tax reduction. The panel voted 11-0 to phase down the state’s premium tax from 1.3 percent of premiums written to 1.0 percent over three years. House Bill 1250, authored by Insurance Committee Chairman Craig Fry (D-Mishawaka) and co-authored by Ranking Minority Member Mike Ripley (R-Monroe), is an effort by the Indiana Economic Development Corporation to encourage companies to bring jobs to Indiana. Insurance Institute of Indiana President Steve Williams testified that this bill would make Indiana’s premium tax among the lowest in the nation. This would eliminate any retaliatory penalties Indiana domestics pay to write business in other states. “This is a fantastic financial incentive for insurers to bring their business, their employees and their investments to Indiana,” Williams said. “Lowering the premium tax and minimizing the retaliatory taxes is no small thing.” Currently, the insurance industry provides jobs to 56,000 Hoosiers. Insurance employees in the state earn an average of $54,000 a year – more than 150 percent of the state’s average income. “Indiana is actively recruiting insurance companies to this state,” said Mike Chrysler, the IEDC’s Director of Insurance Initiatives. “We are exploring all aspects of the taxation and regulatory environment.” Due to the retaliatory nature of premium taxes, Indiana’s option to pay corporate income tax, and the economic development benefits of the tax reduction, the state would lose very little revenue and the amount of jobs created would cancel any losses. A 2006 Purdue University study showed that the lower tax would cost the state about $5.2 million. However, additional jobs and economic activity spurred by the tax cut would make the net gain $4.7 million. “I believe this state is serious about job creation,” Williams said. “This is a great way to encourage job growth in the insurance industry.” Principal testimony in favor of the measure was provided by the IEDC, Insurance Commissioner Jim Atterholt, the Association of Indiana Life Insurance Companies, and the Insurance Institute of Indiana. Other industry groups and national trades provided supporting testimony. The bill will now be sent to the House Ways and Means Committee. The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org. -30- 1/1/2007 12:00:00 AM Dec. 18, 2006 INDIANAPOLIS – The Insurance Institute of Indiana, the National Association of Mutual Insurance Companies (NAMIC), and the Property Casualty Insurers Association of America (PCI) have filed a joint amicus curiae brief on a case that sets a dangerous precedent for future emotional distress claims. The trade associations filed the brief today with the Indiana Supreme Court in State Farm Mutual Automobile Insurance Company v. Jakupko (No. 29A02-0603-CV-207). In the case, Richard Jakupko, his wife and two children were involved in a crash that resulted in spinal cord fractures and mental injuries to Mr. Jakupko. State Farm paid the plaintiffs $1 million under the umbrella policy and $100,000 under the automobile policy for under-insured motorist (UIM) coverage. The plaintiff’s UIM limit was $100,000 per person and $300,000 per accident. The plaintiffs brought action against State Farm for the additional $200,000 they believed was available under the UIM coverage, claiming Mr. Jakupko’s family witnessed his injuries and suffered emotional distress that led to physical problems such as inability to sleep, loss of appetite, and fatigue. The court ruled that the physical manifestations of emotional distress constitute bodily injuries that are covered in the defendant’s policy. “While we certainly sympathize with the Jakupko family, the policy in question simply does not cover this kind of claim,” Insurance Institute president Stephen Williams said. “We believe the court overreached in this instance.” “There is no precedent in Indiana for the appellate court’s ruling,” NAMIC’s Regulatory Affairs Counsel Marsha Harrison stated. “This decision could open insurers up to lawsuits expanding the connection this court made.” PCI counsel Robert Hurns added, “The impact of this ruling is broader than this single case, as it has the potential to be damaging to insurers writing business in Indiana. This case could dramatically increase costs by expanding coverage beyond what the contract states." The Indiana Supreme Court has not set a date for arguments in this case. Institute members and subscribers can read the brief by visiting the Amicus page of the web site at http://www.insuranceinstitute.org/members/amicus_curiae_briefs/ The Insurance Institute of Indiana is a non-profit trade association representing 24 insurance companies and their subsidiaries in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. NAMIC is a full-service national trade association serving the property/casualty insurance industry with more than 1,400 member companies that underwrite more than 40 percent of the property/casualty insurance premium in the United States. PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write $173.6 billion in annual premium, 39.1 percent of the nation’s property/casualty insurance. -30- Visit us on the web at www.insuranceinstitute.org 12/18/2006 12:00:00 AM Oct. 10, 2006 Contact: Jay Kenworthy (317) 464-2452 jdk@insuranceinstitute.org INDIANAPOLIS – The Insurance Institute of Indiana is reminding consumers affected by the April 14, 2006 hail storm that some insurance policies have a six-month deadline for filing claims. For some policy-holders, that could mean October 14 is the last day to file claims resulting from the hail storm, which was the most destructive event in Indiana this year. Some insurers allow up to one year to file claims, so consumers should check with their agents regarding the details of their policy. “The insurance industry is here to help out in these situations,” Institute President Steve Williams said. “It’s always unfortunate when policy-holders let deadlines pass without filing a claim.” Many insurance companies have a six-month statute of limitations for storm-related claims. “Our claims force is working diligently and our agents are assisting with the claims reporting process so that are we able to continue to provide exceptional customer service and to respond to customers’ claims as soon as possible,” said Eric Smith, Regional Vice President for Nationwide Insurance and an Institute Board Member. The Good Friday hail storm, which brought damage to six states from Kansas to Indiana, has been the costliest outbreak of severe weather in the country this year. More than 222,000 insurance claims have been filed in the six states relating to the storm, and more than $800 million has been – or will be – paid out. That accounts for nearly 60 percent of total property damage costs in the first quarter of 2006. The total number of Indiana claims related to this incident is not available at this time. The Insurance Institute of Indiana is a non-profit trade association representing insurance companies in the state of Indiana. Its ultimate purpose is to create and maintain a business, legislative and public awareness climate in Indiana that promotes the continued success of the insurance segment in the free enterprise system. Visit us on the web at www.insuranceinstitute.org. -30- 10/10/2006 12:00:00 AM Sept. 15, 2006 INDIANAPOLIS – The Insurance Institute of Indiana has hired two new staff members as it prepares for the 2007 legislative session. Jon Zarich has been hired as the Institute’s new Government Affairs Coordinator. He will be the principal lobbyist for personal lines and health issues, coordinate the annual Defense Seminar, and staff the Personal Line and Claims committees. Zarich, a 2004 graduate of Indiana University, previously worked as a Legislative Assistant in the Indiana House of Representatives and staffed the House Insurance Committee. He worked for Progressive Insurance for six months after graduation. Zarich is currently attending law school at Indiana University-Indianapolis, with an expected graduation date of 2010. Jay Kenworthy, the former Deputy Communications Director for the Indiana Senate Republican Caucus, has been named the Institute’s Communications Coordinator. Kenworthy will take all media calls and requests, create the Institute’s publications, maintain the web site and coordinate the Insurance Grassroots Network. Kenworthy graduated from Ball State University with a B.S. in journalism in 2004. He had worked on the Senate Majority Communications staff since his graduation. While in college, Kenworthy also worked as a reporter for The Star Press (Muncie). Insurance Institute of Indiana President Stephen Williams says he is excited about the new additions to the staff. “I’m happy to bring in young minds that will bring a fresh perspective to the Institute,” Williams said. “Jay and Jon will help us serve our members and remain the lead voice for insurance in the state of Indiana.” Coincidentally, Zarich and Kenworthy both served as session interns for the Senate Majority Caucus during the 2004 legislative session. Zarich started with the Institute Aug. 14, and Kenworthy started Sept. 6. -30- 9/15/2006 12:00:00 AM October 27, 2005 INDIANAPOLIS – The Indiana Supreme Court today ruled that insurance policies are not obligated to compensate damaged property for decline in value of the property after adequate repairs have been made. The insurance industry views the ruling as a major clarification of the ambiguity and confusion that has surrounded the diminished value issue for years. The Insurance Institute of Indiana participated in the case by submitting an Amicus Curiae brief, prepared by the law firm of Bose McKinney & Evans, arguing that the language in the policy in question clearly states that diminished value is not included as a “loss”. The class action suit, Allgood v. Meridian Security Insurance Company, was brought by a policyholder who claimed Meridian Insurance should have reimbursed her for the decline of value of her repaired car as a result of it having been damaged. The trial court ruled in favor of the insurance company, but the Indiana Court of Appeals reversed the decision. The Indiana Supreme Court denied transfer on October 27, finding “that an insurance policy that provides coverage for loss limited to the lesser of the actual cash value or the amount necessary to repair or replace the property with other property of like kind and quality does not obligate the insurer to compensate for diminution in value of the property after adequate repairs have been made.” Insurance Institute President Stephen A. Williams called the decision a critical victory in upholding the integrity of insurance contracts. “The class action suit sought to redefine the meaning of the language in a policy” Williams said. “The plaintiffs were seeking a tort based solution to a matter that should clearly be based on the coverage provided within the scope of the insurance policy. “This will provide insurers with a level of security in the language they use in a particular contract,” Williams continued. “It should be clear to insurers doing business in Indiana that the integrity of the language in their policies is being honored.” All five justices voted to affirm the trial court’s dismissal of the case. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 10/27/2005 12:00:00 AM September 27, 2005 INDIANAPOLIS – Insurance Institute of Indiana President Stephen A. Williams has announced the organization has promoted two employees. Marty Wood was named Assistant Vice President of Government Affairs and Kristen Hamilton has been named Operations Manager. Wood is being promoted from the position of Director of Government Affairs. He will continue his duties as the Institute’s lobbyist responsible for commercial lines, life and taxation issues. In addition to his lobbying activities, he handles the association’s media relations activities and staffs the Institute’s internal Legislative Steering, Commercial Lines, Life, Taxation and Communications committees. Hamilton, who has been with the Institute for four years, was previously the association’s Administrative Assistant. In her new capacity she will serve as the executive assistant to the President. In addition, she is responsible for all website operations, handles accounts payable/receivable and will staff the Institute’s internal Information Technology Committee. Williams said the promotions of both employees were well deserved and demonstrates their value to the Institute. “Marty's performance has been exemplary.” Williams said. “He has been an outstanding advocate for the Institute's member companies on commercial, taxation and worker's compensation issues. He possesses a keen understanding of the political lay of the land. His counsel is consistently sound and most appreciated. “Kristen has outstanding skills that will benefit the Institute through her expanded responsibilities,” Williams continued. “Her organizational skills and extensive knowledge of all Institute operations is exemplary.” Williams also announced the Institute has hired Bridgette Norvell to the position of Administrative Assistant. Norvell’s first day with the Institute was Tuesday, September 6. Norvell, who lives in Shelbyville, will be primarily responsible for the administrative functions of the Institute. That will include management of the association’s events including the annual meeting, defense seminar, Franklin Society gala and legislative reception. Prior to her employment with the Institute, Norvell handled accounts payable/receivable for Brookfield Sand and Gravel. She graduated with an administrative assistant degree from the Indiana Business College in June. In September, she will receive her degree in business management. In September, 2006 she intends to graduate with a degree in criminal justice, and in December will receive a degree in legal assistance. “The Institute determined that bringing on additional administrative support would greatly enhance the efficiency of the association,” Williams said. “After a thorough interview process, Bridgette Norvell was clearly a well-qualified and excellent fit for the Institute. Hamilton and Wood’s promotions were effective July 1. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 9/27/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Kevin Schiferl, an attorney with the law firm of Locke Reynolds, LLP, received special recognition by the Insurance Institute of Indiana for assistance provided to the association’s activities over the past year. An Award of Recognition is presented whenever an individual, outside the association’s membership, provides assistance directly contributing to the Institute’s success. Schiferl was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. During the course of the last year, Schiferl assisted the Institute on legislation dealing with seat belt defense. When the Indiana Trial Lawyers Association successfully amended the bill with language prohibiting the failure of wearing a seat belt to be considered in determining fault, Schiferl was quick to note the effect could be to completely erode the gains made in the Supreme Court ruling on Kocher v. Getz. In that case, the Supreme Court found that an individual’s failure to mitigate damages prior to an incident occurring constitutes fault. After the legislation passed the Indiana General Assembly, Schiferl helped the Institute in preparing a campaign to have the bill vetoed by Governor Mitch Daniels. The case presented was compelling enough to gain the Governor’s veto. Institute President Stephen A. Williams noted assistance from outside groups and individuals is essential to the success of the organization. “Kevin Schiferl’s assistance on the seat belt defense legislation was a key reason the bill was vetoed by the Governor,” Williams said. “Kevin’s expertise and, perhaps more importantly, his passion for the issue, helped explain the negative ramifications of the Indiana Trial Lawyers Association’s attempts to negate the Indiana Supreme Court decision in Kocher v. Getz.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Mark McKinzie, an attorney with the law firm of Riley Bennett & Egloff, LLP, received special recognition by the Insurance Institute of Indiana for assistance provided to the association’s activities over the past year. An Award of Recognition is presented whenever an individual, outside the association’s membership, provides assistance directly contributing to the Institute’s success. McKinzie was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. During the course of the last year, McKinzie assisted the Institute in combating the recent development of municipalities placing surcharges on insurance carriers for police accident investigations. He was directly responsible for the successful fight against such an ordinance in Mount Vernon, Indiana. He provided a legal brief outlining the insurance industry’s opposition to the issue, and the brief has been used in fighting the issue in other municipalities across the state. Institute President Stephen A. Williams noted assistance from outside groups and individuals is essential to the success of the organization. “Mark McKinzie has long been active with the operation of the Institute,” Williams said. “However, since he joined the firm of Riley Bennett & Egloff, the Institute has been a beneficiary of his expertise on several occasions. Particularly this past year on the municipal surcharge issue.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Bob Clemens, an attorney with the law firm of Bose McKinney & Evans, LLP, received special recognition by the Insurance Institute of Indiana for assistance provided to the association’s activities over the past year. An Award of Recognition is presented whenever an individual, outside the association’s membership, provides assistance directly contributing to the Institute’s success. Clemens was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. During the course of the last year, Clemens assisted the Institute by regularly notifying the association when onerous court cases were appearing before the Indiana Supreme Court and Court of Appeals. No less than five recent court cases were brought to the Institute’s attention for potential amicus briefs by Clemens and his colleagues at Bose McKinney & Evans. Institute President Stephen A. Williams noted assistance from outside groups and individuals is essential to the success of the organization. “Bob Clemens advice and comments on Appellate and Supreme Court decisions have proven a valuable tool in ensuring a better insurance climate in Indiana,” Williams said. “Bob is ever vigilant and the Insurance Institute is grateful for his assistance.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Bill Pool, an employee with Chubb Group of Insurance Companies, received special recognition by the Insurance Institute of Indiana for his activities as a member of the Institute’s Legislative Steering Committee. The Excellence Award is presented to Institute committee members who demonstrate an extremely high level of commitment in the activities of the association. The award is only provided when it has been determined a committee member has gone above and beyond the typical level of activism. Pool was one of only four committee members honored for the past year. He was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Pool was honored for being a constant resource for the Institute staff. He proactively helped in the development of various Institute issues, and was quickly responsive to staff requests for assistance on legislative matters. During the 2005 legislative session, Pool demonstrated a willingness to meet with legislators on issues, and provided testimony in legislative committees. His knowledge and work on difficult tort issues was especially helpful. Institute President Stephen A. Williams said the active involvement of committee members is the key to making the Institute a truly member driven organization. “The committee process is volunteerism in its truest form,” Williams said. “While all Institute committee members are committed to the success of the organization, the effort of Bill Pool was outstanding.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Scott Figgins, an employee with Brotherhood Mutual Insurance Company, received special recognition by the Insurance Institute of Indiana for his activities as a member of the Institute’s Claims Committee. The Excellence Award is presented to Institute committee members who demonstrate an extremely high level of commitment in the activities of the association. The award is only provided when it has been determined a committee member has gone above and beyond the typical level of activism. Figgins was one of only four committee members honored for the past year. He was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Figgins was honored for his work on the issue of premises liability for churches. He dedicated a significant amount of time working with legislators and testifying in committees, which ultimately led to the passage of the legislation. Institute President Stephen A. Williams said the active involvement of committee members is the key to making the Institute a truly member driven organization. “The committee process is volunteerism in its truest form,” Williams said. “While all Institute committee members are committed to the success of the organization, the effort of Scott Figgins was outstanding.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Bill Carmichael, President of American Surety Company, received special recognition by the Insurance Institute of Indiana for his activities as a member of the Institute’s Membership Development and Services Committee. The Excellence Award is presented to Institute committee members who demonstrate an extremely high level of commitment in the activities of the association. The award is only provided when it has been determined a committee member has gone above and beyond the typical level of activism. Carmichael was one of only four committee members honored for the past year. He was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Carmichael was honored for working with the Institute staff in membership recruitment efforts. He helped to identify, contact and successfully recruit the Institute’s newest member, International Fidelity/Allegheny Casualty Company. Institute President Stephen A. Williams said the active involvement of committee members is the key to making the Institute a truly member driven organization. “The committee process is volunteerism in its truest form,” Williams said. “While all Institute committee members are committed to the success of the organization, the effort of Bill Carmichael was outstanding.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Rick Ainsworth, an employee with Indiana Farm Bureau Insurance Company, received special recognition by the Insurance Institute of Indiana for his activities as a member of the Institute’s Claims Committee. The Excellence Award is presented to Institute committee members who demonstrate an extremely high level of commitment in the activities of the association. The award is only provided when it has been determined a committee member has gone above and beyond the typical level of activism. Ainsworth was one of only four committee members honored for the past year. He was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Ainsworth was honored for being a key player in the Institute’s effort to defeat a particularly onerous legislative proposal. His efforts to defeat a bill amending Indiana’s salvage title code involved meetings with proponents and legislators. Institute President Stephen A. Williams said the active involvement of committee members is the key to making the Institute a truly member driven organization. “The committee process is volunteerism in its truest form,” Williams said. “While all Institute committee members are committed to the success of the organization, the effort of Rick Ainsworth was outstanding.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Gene Walda, an employee with Indiana Farmers Mutual Insurance Company, received special recognition by the Insurance Institute of Indiana for his participation in the Institute’s Grassroots Network. Walda was one of only seven honorees from the nearly 1000 members of the Insurance Grassroots Network. He was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers, at the Institute’s June 1, 2005 annual meeting. Each year, outstanding Grassroots Network members are recognized by the Institute for their efforts directed at contacting their state legislators on insurance legislation pending in the Indiana General Assembly. Members of the network provide grassroots support through letter writing, telephone calls and Statehouse visits. During the 2005 legislative session, grassroots network members were asked to contact state legislators on topics ranging from uninsured/underinsured motorist mandated offers to health insurance medical waivers. In all, more than 700 messages were provided to legislators on matters concerning the insurance industry. Institute President Stephen A. Williams said the Insurance Grassroots Network is a critical component in the Institute’s government affairs effort. “The employees of insurance companies doing business in Indiana are the backbone of the industry,” Williams said. “The willingness of Gene Walda to make personal contacts with his representatives gives rise to the significance of the issues.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Cindy Ratekin, Gary Spaulding and Kent Williams, employees with State Auto Insurance, received special recognition by the Insurance Institute of Indiana for their participation in the Institute’s Grassroots Network. Ratekin, Spaulding and Williams were three of only seven honorees from the nearly 1000 members of the Insurance Grassroots Network. They were presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Each year, outstanding Grassroots Network members are recognized by the Institute for their efforts directed at contacting their state legislators on insurance legislation pending in the Indiana General Assembly. Members of the network provide grassroots support through letter writing, telephone calls and Statehouse visits. During the 2005 legislative session, grassroots network members were asked to contact state legislators on topics ranging from uninsured/underinsured motorist mandated offers to health insurance medical waivers. In all, more than 700 messages were provided to legislators on matters concerning the insurance industry. Institute President Stephen A. Williams said the Insurance Grassroots Network is a critical component in the Institute’s government affairs effort. “The employees of insurance companies doing business in Indiana are the backbone of the industry,” Williams said. “The willingness of Cindy Ratekin, Gary Spaulding and Kent Williams to make personal contacts with their representatives gives rise to the significance of the issues.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Karen Pettyjohn, an employee with Nationwide Insurance Company, received special recognition by the Insurance Institute of Indiana for her participation in the Institute’s Grassroots Network. Pettyjohn was one of only seven honorees from the nearly 1000 members of the Insurance Grassroots Network. She was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Each year, outstanding Grassroots Network members are recognized by the Institute for their efforts directed at contacting their state legislators on insurance legislation pending in the Indiana General Assembly. Members of the network provide grassroots support through letter writing, telephone calls and Statehouse visits. During the 2005 legislative session, grassroots network members were asked to contact state legislators on topics ranging from uninsured/underinsured motorist mandated offers to health insurance medical waivers. In all, more than 700 messages were provided to legislators on matters concerning the insurance industry. Institute President Stephen A. Williams said the Insurance Grassroots Network is a critical component in the Institute’s government affairs effort. “The employees of insurance companies doing business in Indiana are the backbone of the industry,” Williams said. “The willingness of Karen Pettyjohn to make personal contacts with her representatives gives rise to the significance of the issues.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Don Cook, an employee with Indiana Farm Bureau Insurance Company, received special recognition by the Insurance Institute of Indiana for his participation in the Institute’s Grassroots Network. Cook was one of only seven honorees from the nearly 1000 members of the Insurance Grassroots Network. He was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Each year, outstanding Grassroots Network members are recognized by the Institute for their efforts directed at contacting their state legislators on insurance legislation pending in the Indiana General Assembly. Members of the network provide grassroots support through letter writing, telephone calls and Statehouse visits. During the 2005 legislative session, grassroots network members were asked to contact state legislators on topics ranging from uninsured/underinsured motorist mandated offers to health insurance medical waivers. In all, more than 700 messages were provided to legislators on matters concerning the insurance industry. Institute President Stephen A. Williams said the Insurance Grassroots Network is a critical component in the Institute’s government affairs effort. “The employees of insurance companies doing business in Indiana are the backbone of the industry,” Williams said. “The willingness of Don Cook to make personal contacts with his representatives gives rise to the significance of the issues.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – Rick Adams, an employee with SAFECO Corporation, received special recognition by the Insurance Institute of Indiana for his participation in the Institute’s Grassroots Network. Adams was one of only seven honorees from the nearly 1000 members of the Insurance Grassroots Network. He was presented the award by Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the Institute’s June 1, 2005 annual meeting. Each year, outstanding Grassroots Network members are recognized by the Institute for their efforts directed at contacting their state legislators on insurance legislation pending in the Indiana General Assembly. Members of the network provide grassroots support through letter writing, telephone calls and Statehouse visits. During the 2005 legislative session, grassroots network members were asked to contact state legislators on topics ranging from uninsured/underinsured motorist mandated offers to health insurance medical waivers. In all, more than 700 messages were provided to legislators on matters concerning the insurance industry. Institute President Stephen A. Williams said the Insurance Grassroots Network is a critical component in the Institute’s government affairs effort. “The employees of insurance companies doing business in Indiana are the backbone of the industry,” Williams said. “The willingness of Rick Adams to make personal contacts with his representatives gives rise to the significance of the issues.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – For the second time in five years, Indiana Farmers Mutual Insurance Company has been recognized by the Insurance Institute of Indiana as the Institute’s Grassroots Network Company of the Year. The Grassroots Network includes almost 1,000 volunteers, including roughly 150 from Indiana Farmers. Institute Chair and Indiana Farmer’s President/CEO Dan Stone accepted the award at the association’s June 1, 2005 annual meeting. Each year, the Institute recognizes an outstanding Grassroots Network company for their employee efforts directed at contacting their state legislators on insurance legislation pending in the Indiana General Assembly. The company of the year is awarded to the company attaining the highest level of involvement and effectiveness. Institute President Stephen A. Williams acknowledged Indiana Farmers as a regular contender for the award, and commended the activity of their employees. “Indiana Farmers has long been one of the Institute’s most active members,” Williams said. “Their employees continue to play an active role in many facets of the organization.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM June 20, 2005 INDIANAPOLIS – State Farm Insurance Companies was the first recipient of the Insurance Institute of Indiana’s Membership Engagement (M.E.) Award. The M.E. Award was created to honor the Institute member company that most actively embraces their role in the organization for the previous year. Jack Watts, State Farm Vice President Operations, accepted the award from Institute Chair Dan Stone, President/CEO of Indiana Farmers Mutual Insurance Company, at the association’s June 1, 2005 annual meeting. Over the past year, State Farm regularly contacted the Institute staff when significant issues arose within the industry or the media. The company’s employees serving on Institute committees were active participants and engaged in the committee decision-making process. State Farm initiated a successful campaign over the year to encourage their agents to contribute to the Insurance Political Action Committee. Additionally, the company continued their annual practice of sending a large contingent of employees to the statehouse to meet with Indiana lawmakers. Institute President Stephen A. Williams applauded State Farm on being honored with the M.E. Award. “State Farm has dedicated an immense amount of time, energy and resources in helping to advance and protect the insurance industry in Indiana through its membership with the Institute,” Williams said. “While the Institute experienced a high level of involvement from all members this past year, State Farm is truly worthy of receiving the first ever M.E. Award.” The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 6/20/2005 12:00:00 AM January 17, 2005 INDIANAPOLIS – The Insurance Institute of Indiana received word the city of Mount Vernon, Indiana has agreed to indefinitely table a proposed ordinance calling for a surcharge, on insurers of “at fault” drivers, for accident investigations by city police officers. City attorney, Scott Funkhauser informed the Institute of the city council’s decision. The Institute first became aware of the proposed ordinance in early December. On December 27, Institute Assistant Vice President of Government Affairs, Mike Chrysler, testified before the Mount Vernon City Council to ask for reconsideration of the proposal. He suggested the ordinance would be in violation of Indiana’s premium tax statute prohibiting municipalities from imposing any license fee or tax upon an insurance company. At the meeting, Funkhauser maintained his initial interpretation that the ordinance was not in violation of the statute. However, the council agreed to give the Institute time to provide further arguments. The defense firm of Riley, Bennett & Egloff, LLP agreed to volunteer their service to assist in deflecting the proposal. Attorney Mark McKinzie drafted and provided a response to the proposal, outlining the unconstitutionality of the ordinance. McKinzie noted the following regarding the proposed ordinance: Specifically, the proposal is: <ul><li>unconstitutional because it allows a law enforcement officer to make an administrative adjudication, which usurps the role of the judicial process and which results in the taking of property (i.e., money), without due process of law (in Indiana constitutional terms, “due course of law”);</li> <li>void and unenforceable because passing this ordinance would constitute an unauthorized, ultra vires act of Mt. Vernon’s City Council;</li> <li>arbitrary and capricious because of a lack of a rational basis for the proposed remedy advanced by the ordinance and the fiscal problem faced by the City of Mt. Vernon; and</li> <li>contrary to public policy, because it provides for the arbitrary assessment of a fee for the services of a public servant who voluntarily undertakes an automobile accident investigation and unilaterally decides to what extent or degree the investigation is carried out.</li></ul> On Monday, January 17, McKinzie received word from Funkhauser that he agreed with the statements and that the council tabled the ordinance indefinitely. Institute President Stephen A. Williams said the outcome was critical because such an ordinance could have set a bad precedent for other municipalities. “As various municipalities struggle with budget problems, they are searching for any means to obtain fiscal relief for the services they must provide,” Williams said. “However, this is one area where cities and towns have no legal basis to assess fees. “We know other municipalities have considered looking at these very type of surcharges,” Williams continued. “Therefore, we will make sure the association representing Indiana cities and towns understand why such a proposal should not be pursued.” Indiana municipalities are represented by the Association of Cities and Towns. The Institute will be providing the association with a copy of the response crafted by Riley, Bennett & Egloff. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 1/17/2005 12:00:00 AM August 10, 2004 The Star’s Andrea Neal recently wrote a column detailing the problems of uninsured motorists on Indiana roads. As Ms. Neal noted, this problem affects many law-abiding drivers on a regular basis. The problem with the law designed to identify uninsured motorists has been in the enforcement. As the article noted, the State Police have just now processed 300,000 accident reports from the past three years. Only now, do the State Police and Bureau of Motor Vehicles appear prepared to adequately enforce this common sense approach to identifying violators. Once the law we currently have is being utilized as it was intended, lawmakers will be better equipped to determine whether or not the punishment of offenders is sufficient enough to force compliance. The statement that offenders are likely to comply with the law because of a fear of getting caught is only partially correct. It is likely the real means to deter violation of the Financial Responsibility Law will rest in making the financial penalties stiffer than securing financial responsibility in the first place. If it is cheaper for these violators to pay a fine than purchase insurance, it is pretty clear what many will do. Another means other states have utilized to encourage compliance is the enactment of “no pay, no play.” This concept prohibits financial responsibility offenders from recovering anything more than compensatory damages when involved in an accident. They could recover medical bills or other actual losses, but could not seek punitive damages, or awards for pain and suffering. If such drivers are unwilling to protect the motoring public by maintaining insurance coverage, why should they enjoy the ability to recover beyond their actual injuries? The problem with the creation of a database to identify whenever a policy is canceled is that the vast majority of canceled policies are by law-abiding citizens who are simply changing companies. The government would be spending considerable time and money to identify people who are complying with the law, not those who are in violation. In addition, the states which have created such databases have experience significant difficulties in coordinating their database with those of the insurance companies across the country. By the time the information is gathered, months have passed and the violator has already secured and canceled a new policy for the state to track. Indiana is fortunate to have some of the lowest insurance rates in the country. That has helped to keep the uninsured population to around 12 percent, which is lower than the national average. However, 12 percent is still high, and we suggest stricter enforcement of the current law will help to address the problem. Steve Williams, President Insurance Institute of Indiana 8/10/2004 12:00:00 AM July 22, 2004 <b>Contact:</b> Marty Wood (317) 464-2455 <a href="mailto:mpw@insuranceinstitute.org">mpw@insuranceinstitute.org</a> <b>INDIANAPOLIS</b> – Insurance Institute of Indiana President Stephen A. Williams has announced that Institute employee Mike Chrysler has been promoted to the position of Assistant Vice President of Government Affairs. Chrysler had served as Director of Personal Lines and Director of Government Affairs prior to the promotion. Chrysler is the Institute’s lobbyist responsible for personal lines, health and tort issues. In addition to his lobbying duties, he handles matters regarding the Indiana Grassroots Network and the Indiana Political Action Committee. He also writes <i>Insurance Insight</i>, a monthly publication distributed to member companies and legislators. Chrysler began his employment with the Institute in 1998 as the Assistant Director of Media Relations. He moved into government affairs in 1999. Prior to being hired by the Institute, he worked from 1997 to 1998 in the media department of the Indiana Senate Republican caucus. Williams commended Chrysler’s development as a government affairs representative, and said his promotion will benefit the entire organization. “Mike has become a well-respected lobbyist within the Indiana General Assembly,” Williams said. “His ability to convey the Institute’s position to legislators is a benefit to the entire industry. “Mike has positioned himself as someone that Republicans and Democrats alike can trust to provide accurate and meaningful information,” Williams continued. “His promotion is a reflection of the hard work he has demonstrated since coming to work for the Institute.” Chrysler’s promotion was effective July 1, 2004. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 7/22/2004 12:00:00 AM July 7, 2004 <b>Contact:</b> Marty Wood (317) 464-2455 <a href="mailto:mpw@insuranceinstitute.org">mpw@insuranceinstitute.org</a> <b>INDIANAPOLIS</b> – The Board of Directors of the Insurance Institute of Indiana have selected a new executive team to lead the association for the next two years. The new executives took office at the Institute’s annual meeting on Wednesday, June 16. Elected as the Chairman of the Board is Daniel Stone of Indiana Farmers Mutual Insurance Company. Stone is the President and CEO of Indiana Farmers. He served as the Institute’s Vice-Chairman for the past two years behind outgoing Chairman John Wolf, President of the ILM Group. Wolf’s tenure as chairman was term limited at two years. The Vice-Chairman of the Board is Joseph Yeager of Indiana Insurance Company. Yeager is Senior Vice President of Marketing for Indiana Insurance. He previously served as Secretary/Treasurer of the organization. His vacancy from that position opened the door for the election of new Secretary/Treasurer William Carmichael. Carmichael is the President of American Surety Company. Insurance Institute of Indiana President Stephen Williams said he expects the new executive committee to continue the pattern of strong leadership the organization has enjoyed since its inception in 1947. “I fully anticipate Dan Stone will pick up right where John Wolf left off as Chairman of the Institute,” Williams said. “He truly appreciates that the member companies of the Insurance Institute of Indiana are the leaders of the industry in this state. Having Joe Yeager and Bill Carmichael join him as the top executives of the organization sets the stage for, what should be, two strong years.” Also elected to the executive committee of the Insurance Institute are: John Wolf, President, ILM Group; Jerry Canada, Executive Vice President & CEO, Indiana Farm Bureau Insurance Company; Elizabeth Riczko, President of Insurance Operation, Ohio Casualty Group; and Jack Watts, Vice President Operations, State Farm Insurance Companies. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- 7/7/2004 12:00:00 AM June 3, 2004 <b>Contact:</b> Marty Wood (317) 464-2455 <a href="mailto:mpw@insuranceinstitute.org">mpw@insuranceinstitute.org</a> <b>INDIANAPOLIS</b> – The Insurance Institute of Indiana received word that Indiana Attorney General Steve Carter has issued an opinion declaring a Department of Insurance bulletin regarding insurer use of credit oversteps its authority. According to the opinion, “Bulletin 123 places restrictions on insurers that were not intended by the General Assembly when it adopted P.L. 201-2003.” The bulletin in question, Department of Insurance Bulletin 123, was issued by Commissioner Sally McCarty in response to the enactment of Public Law 201 in 2003. The law prohibits insurers from denying, canceling or non-renewing personal insurance policies based solely on credit information. It also prohibits insurers from basing renewal rates solely on credit information. The definition of solely came into question when Bulletin 123 was issued interpreting the statute to mean, “an insurer may not deny, cancel, decline to renew or increase a renewal rate due to a credit score unless at least one other rating factor has changed.” Insurance Institute of Indiana President Stephen Williams said requiring other factors to change was never part of the consideration by the legislature. “It was clearly the intention of the legislature to restrict the sole use of credit by insurers,” said Williams. “However, the legislature only wanted to require insurers to consider at least one other factor, not require a change in that other factor.” The Institute first approached Commissioner McCarty to reconsider the interpretation expressed in the bulletin. When the Commissioner stated her intention to stand behind the interpretation, the Institute approached one of the legislators involved with crafting the law. Williams asked State Representative Mike Ripley (R-Monroe) to seek an opinion from the Attorney General on Bulletin 123. Ripley agreed to submit the request. In his request, Ripley contended the bulletin places restrictions on insurers that were not intended by the General Assembly. The Attorney General’s opinion, released this week, was consistent with the interpretation of Ripley and the Insurance Institute. The opinion states, “After a review of at least one other rating factor, the insurer may make the business decision it deems appropriate whether the credit score is the only demonstrable change in the calculation or not.” Williams said the insurance industry has been “forthright” in their efforts in dealing with the issue of credit. He said he hopes the Department of Insurance will be the same with the Attorney General opinion on the bulletin. “It is up to the Commissioner to respect the legal opinion of the state’s elected attorney,” Williams said. “The insurance industry, particularly member companies of the Institute, has made a good-faith effort to create an acceptable law. Now, in light of the Attorney General’s opinion, we hope the Commissioner will accept the legislature’s clear intent.” The Insurance Institute enrolled the assistance of the National Association of Mutual Insurance Companies (NAMIC), American Insurance Association (AIA) and Property Casualty Insurers Association of America (PCIAA) in addressing Bulletin 123 and seeking the Attorney General’s opinion. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health, life and reinsurance companies doing business in Indiana. -30- 6/3/2004 12:00:00 AM July 15, 2004 <b>Contact:</b> Marty Wood (317) 464-2455 <a href="mailto:mpw@insuranceinstitute.org">mpw@insuranceinstitute.org</a> <b>INDIANAPOLIS </b>– As the heavy rains and flooding experienced by Central Indiana in July and September 2003 proved, even those who may not live near water can be impacted by flooding. Floods can reach catastrophic levels at amazing speed, and by the time it does, it may be too late for many individuals. Floods are the most common natural disaster, annually causing about $1 billion in property damage. In 2003, flooding is estimated to have caused more than $100 million in damage just in Indiana. One of the most important actions homeowners can take to prepare for a flood is to purchase a flood insurance policy. Buildings in flood hazard areas have a 26 percent chance of being flooded during a typical 30-year mortgage. Most homeowners policies do not cover flood damage. However, a flood insurance policy can be obtained through a homeowners insurance provider if the local community is eligible under the National Flood Insurance Program. The average cost of a flood policy is about $360 per year. Most flood insurance is written through the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency (FEMA). Insurance companies sell and service policies through an arrangement with FEMA. Many homeowners make the mistake of waiting until a flood is imminent to buy a policy. A flood insurance policy normally takes 30 days from the date of purchase to go into effect. For more information about the NFIP and flood insurance, contact your insurance agent. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health, life and reinsurance companies doing business in Indiana. -30- Consider these startling facts from the Insurance Institute:<ul><li>Floods and flash floods kill more people in the United States than any other natural disaster. <li>Property damage from flooding now totals more than $1 billion each year in the United States. <li>90 percent of all U.S. natural disasters involve flooding. <li>Approximately one in four flood disasters occur in areas with a low to moderate risk of flooding.</li></ul> <b>Tips to Prepare for a flood:</b> <ul> <li>Collect emergency building supplies if you live in a flood-prone area - plywood, plastic sheeting, lumber, nails, hammer, saw, pry bar, shovels and sandbags.</li> <li>Create an evacuation plan for your family. Choose a family meeting place along with an alternative location.</li> <li>Purchase a weather alert radio.</li> <li>Inventory all of your personal property, including furnishings, clothing and valuables. Keep this list, your insurance policies and photographs of your home in a safe location outside your home.</li> <li>Consider installing check valves in your plumbing to prevent flood water backup.</li> <li>Move valuables—such as papers, furs, jewelry and clothing—to upper floors or higher elevations.</li> <li>Bring outdoor possessions—such as lawn furniture, grills and trash cans—inside, or tie them down securely.</li> <li>Secure shelves and water heaters to nearby walls.</li> <li>Raise electrical system components.</li> <li>Use water-resistant building materials in areas below base flood elevation.</li> <li>Leave the basement or lower floors unfinished if they’re below base flood elevation.</li> <li>Install flood shields or built-up barriers for basement windows and doors. The top of shields and barriers should extend above base flood elevation.</li> <li>Install and maintain a sump pump system if you have below grade floors.</li> <li>Landscape with native plants and vegetation which resist soil erosion.</li></ul> <b>Flood Survival Tips:</b> <ul><li>Listen to radio or TV broadcasts for emergency information and evacuate immediately if told to do so.</li> <li>Never walk or drive through rushing flood waters. Even six inches of moving water is dangerous.</li> <li>Avoid flood waters, storm drains and sewers. Move to higher ground.</li> <li>Keep children and pets away from flood water.</li> <li>Watch out for snakes and small animals that may seek shelter in your home.</li> <li>Stay away from downed power and electrical wires.</li> <li>Never enter buildings surrounded by flood waters.</li> <li>Clean your home. Throw out any foods that may have come in contact with flood waters, even canned goods.</li> <li>Have damaged septic tanks, cesspools, pits and leaching systems serviced as soon as possible.</li> <b>September 22, 2004</b> <b>Contact:</b> Marty Wood (317) 464-2455 <a href="mailto:mpw@insuranceinstitute.org">mpw@insuranceinstitute.org</a> <b>INDIANAPOLIS</b> – With the school year in full swing, it is important to take the necessary precautions in regard to teen driving. Motor vehicle crashes are the leading cause of death among 15- to 20-year-olds, according to the U.S. Department of Transportation. The Insurance Institute of Indiana paints an even more startling picture, Hoosier teen-age motor vehicle crash fatalities are well above the national average – 18.4 percent in Indiana versus 11.8 percent for the U.S. average, almost 56 percent higher. Parents should take the following important steps to take to avoid bodily injury and financial harm to their teenage driver: <b>Tips to Keep Your Teenage Driver Safe:</b> Provided by the National Highway Traffic Safety Administration <b>Don’t rely completely on driver’s education:</b> High school driver education is an important and convenient way to learn driving skills, but it doesn’t produce safer drivers. Poor driving skills are not always to blame for teens’ crashes. Their attitudes and decision-making skills matter more. Be aware of this and know that training and education do not change teenage tendencies. <b>Restrict night driving:</b> Most fatal crashes among young drivers happen between 9 p.m. and midnight. In order to keep your teenager safe, consider not allowing him or her to drive after 9 p.m. Not only does nighttime driving require more skill, but the activities teens wish to attend after 9 p.m. are generally recreational and cause distractions to the young driver. <b>Restrict passengers:</b> Teen passengers in the vehicle can cause a distraction, which creates a great risk for the beginning driver. Because young drivers often transport their friends, there's a teen passenger problem as well as a teen driver problem. Almost two of every three teen passenger deaths (62 percent) occur in crashes with a teen driver. While night driving with passengers is particularly lethal, many fatal crashes with teen passengers occur during the day. The best policy is to restrict teen passengers, especially groups of teens, all the time. <b>Supervise practice driving:</b> Take an active role in helping your teenager learn how to drive. Schedule practice sessions in a variety of situations. Plan to have these practice sessions until you are completely comfortable that your teenager is prepared to be a safe driver. <b>Require safety belt use:</b> Don’t assume that your teenager wears a seatbelt when you are not in the car. Teenagers often skip wearing their seatbelt when they drive alone or when driving with peers. Remember that belt use is lower among teenagers than adults. <b>Prohibit driving after drinking:</b> Make it clear that underage drinking is illegal and highly dangerous, especially when driving. Even small amounts of alcohol can impair teens. <b>Choose vehicles for safety, not image:</b> Teenagers should drive vehicles that will reduce their risk having of an accident. Also, look for vehicles that offer protection if they do crash. Avoid vehicles with performance images that may encourage speeding. Avoid trucks and sport SUVs – the smaller ones, especially, are more prone to roll over. The Insurance Institute of Indiana is a non-profit state trade association representing property/casualty, health and life companies doing business in Indiana. -30- For Immediate Release Contact: Jay Kenworthy September 19, 2007 (317) 464-2452 jdk@insuranceinstitute.org INDIANAPOLIS – The Insurance Institute of Indiana is applauding Hoosiers for buckling up at a higher rate than ever before and crediting the Indiana General Assembly for recognizing the importance of seat belts. The Indiana Criminal Justice Institute’s (ICJI) “Click It or Ticket” surveys in May found 87.9 percent of drivers and passengers are buckling up. That figure represents a 3.6 percent increase over 2006 numbers. According to the National Highway Traffic Safety Administration (NHTSA), 82 percent of drivers and passengers nationally wear seat belts. “We credit Hoosiers for making safety a higher priority,” Insurance Institute President Steve Williams said. “Wearing a seatbelt is a small step that can make a world of difference if you are involved in an accident.” According to NHTSA, proper use of a lap/shoulder belt reduces the risk of fatalities in cars by 45 percent and moderate- to critical-injury by 50 percent. In trucks and SUVs, the reduced risk jumps to 60 percent for fatalities and 65 percent for injury. The Insurance Institute said the Indiana General Assembly’s work to increase belt use deserves recognition. Senator Tom Wyss (R-Fort Wayne) and Representative Peggy Welch (D-Bloomington) have been among the top safety advocates in the legislature. Both were sponsors of House Enrolled Act 1237, which closed a loophole in Indiana’s seat belt law by requiring seat belt use in trucks and rear seats of all vehicles. “Those two and a number of others have been leaders on highway safety issues for years,” Williams said. “From primary enforcement laws, to child restraint systems, to seat belts in trucks, those legislators have taken the necessary steps to ensure Hoosiers stay safe on the road.” “I’ve always felt the primary responsibility of government officials is working to improve the health and safety of the citizens they represent,” Senator Wyss said. “Seat belts have been proven to save lives. We can’t tell you whose life will be saved next, but we know it will happen and that some family somewhere will be spared the same grief so many others have experienced in the past.” The insurance industry was particularly pleased with the rise in pickup truck occupants using seat belts. Although the new law was not in effect at the time of the survey – the law went into effect July 1, while the observational survey occurred in May – belt use in pickup trucks rose 20 percent from 2006. Last year, use was at 54 percent, compared to 65 percent this year. The Insurance Institute of Indiana is an insurance trade association representing insurance companies doing business in Indiana. Visit us on the web at www.insuranceinstitute.org. -30-