February 13, 2003
Two
Banks Receive Approval to Offer Insurance; Arbella's Sale of Allied Approved
Dean Cooperative Bank of Franklin and Medway Cooperative Bank of Medway
have received approval from the Massachusetts Division of Banks to offer
insurance products through arrangements with third parties. The Division
of Banks has also approved the purchase of Allied American Insurance Agency,
Inc. by Eastern Bank. Arbella Mutual Insurance Company has owned Allied
American since the mid 1990’s.
Dean Cooperative Bank is a state-chartered cooperative bank with its main office in Franklin and three branch offices. It has received approval from the Division of Banks to enter an arrangement with Baystate Financial Services Agency, an affiliate of Baystate Financial Services, to sell insurance products. Baystate was established in 1901 as a general agency of New England Life Insurance Company.
According to the bank’s plan of operation, it will initially offer
the following insurance products: term and whole life insurance, variable
and fixed-rate annuities, accident and health insurance, long-term care
and long-term disability insurance, and employee benefits. The plan also
states that “in the future, the Bank may enter into an arrangement
with a suitable partner to provide property and casualty insurance, including
homeowners and automobile insurance.” Any subsequent insurance arrangement
made by the bank would require the Division of Bank’s approval.
Medway Cooperative Bank is
a state-chartered cooperative bank headquartered in Medway, has received
approval from the Division of Banks to enter into a networking relationship
with Infinex Insurance Agency to offer insurance products. Infinex Insurance
Agency is an affiliate of Infinex Investments. Infinex is owned by a number
of banks located in Massachusetts and Connecticut.
According to the bank’s plan of operation, it will offer life insurance
and accident and health insurance only.
Eastern Bank, a state-chartered
stock savings bank with its main office in Lynn and operating 46 branches,
has received approval from the Division of Banks to expand its insurance
sales activities through the acquisition of the assets of Allied American
Insurance Agency. In 1999, Eastern Bank received approval from the Division
of Banks to engage in insurance sales activities through relationships
with Allied American, IFS Agencies an affiliate of Independent Financial
Market Group (IFMG), and Ohio Indemnity Co. IFMG is now a subsidiary of
Sun Life Financial Services. The bank will continue its relationship with
IFS and Ohio Casualty.
Eastern Bank has also formed a wholly-owned direct subsidiary, Eastern
Insurance Services, LLC, the sole purpose of which will be to act as an
operating subsidiary to own and control Allied American.
Allied American is headquartered in Natick, Massachusetts and operates
20 branch offices, of which 18 are located in Massachusetts and one each
in Vermont and Connecticut. Allied American was founded in 1935 as a subsidiary
of the former American Mutual Insurance Company. Over the last ten years,
Allied American has acquired Mahoney & Wright Insurance Agency, Carlin
Insurance and Lumber Mutual Insurance Company’s book of business.
Under its new ownership, Allied American will continue to offer property-casualty,
life and employee benefits insurance products. According to the bank’s
plan of operation, insurance sales activities will generally take place
off the bank’s premises. However, the plan also notes that the agency
“may conduct such activities or co-locate offices on bank premises
in the future.”
Should you have any questions regarding the bank-insurance sales activities reported in this article or any other bank-insurance arrangement, please contact Frank Mancini at the MAIA offices by calling (800) 972-9312 or (508) 628-5452 or by email at fmancini@massagent.com. MAIA has the plans of operation of all banks that have received approval to engage in insurance sales on file at the MAIA offices.
MAIA Grassroots Momentum
Online with CapWiz
Your association’s Government Affairs team works in advocating on
your behalf up on Beacon Hill, and when necessary on Capitol Hill in Washington.
To bolster our commitment of being the strongest and most effective political
lobbying force for independent insurance producers, we’ve added a
new Legislative Action Center to the Government Affairs section of MAIA’s
website, www.massagent.com to catapult our advocacy efforts with CapWiz,
the nation’s premier online political action tool.
CapWiz, we believe, will be the single most effective way for
you, our members, to help your association further the legislative agenda.
It will give you the latest information on insurance issues that impact
independent insurance producers, locate your state senators and state
representatives, as well as members of the congressional delegation, and
help you draft an email or letter that lets your legislator know how you
feel on key issues. Just click on the “Government Affairs” button
on the association’s website to see this exciting new feature.
Once there, just enter your zip code in the box under “Elected Officials
in Massachusetts,” press “Go,” and you’ll see your
state representative and state senator. Get more detailed information
by clicking on their names: contact information, background information
and committee assignments. Special alerts will be posted in the section
when events warrant your immediate action.
“The decisions made by our state legislators are incredibly important
to MAIA, but are of particular importance to our members’ livelihoods.
Legislation can put you out of business faster than your competition,”
said Dan Foley, Jr., Director of Government Affairs. Continued Foley,
“An effective grassroots organization that enables our members to
take action on key legislative issues is a very important part of our
work and a key to our success on Beacon Hill.”
So why wait! Visit CapWiz on the Government Affairs section of
the website today. Refer to it frequently for the latest legislative information
as bills are introduced.
By staying informed and in touch with your state legislators, you are helping us be your Voice and Advocate on Beacon Hill. If you have any questions or need further information, please don’t hesitate to contact Dan Foley at the MAIA offices by calling 800-972-9312 or 508-628-5452 or by email at dfoley@massagent.com.
by Dan Foley, Jr., Esq.
Director of Government Affairs & General Counsel
Mother Not Liable for Son's Role in
Car Accident
Superior Court Judge Charles J. Hely allowed a mother’s motion for
summary judgment and held that a mother of an adult child cannot be held
liable for the negligence of her son in a case where he was alleged to
have caused a fatal car accident. The deceased child’s estate, in
citing the Restatement of Torts, claims that the mother of the driver
was liable for negligent entrustment for giving her son a car when she
knew of his bad driving record. In this case, Kinder, administratix v.
Caplan, et al, the judge rejected the plaintiff’s argument and instead
relied upon the decisions of other states that rejected the theory as
well.
The facts in this case are that the defendant’s mother, in August
1998, gave a car as a gift to her son. The defendant, prior to receiving
the car, allegedly had a number of motor vehicle violations and license
suspensions. In January 1999, when the defendant was 21, he was involved
in a car accident in which Timothy Kinder was killed.
According to Judge Hely, a plaintiff seeking to hold another liable for
negligent entrustment must show that “the defendant owned or controlled
the motor vehicle concerned, and that the defendant gave the driver per-mission
to operate the vehicle.” In this case, the judge found that the defendant
did not “own or control the vehicle” that was driven by her
21 year old son.
In disagreeing with the plaintiff’s argument relative to the Restatement of Torts, the judge cited in a footnote a 1980 Appeals Court case, Kunkel v. Alger stating that “Massachusetts law does not follow the Restatement on at least one important element of negligent entrustment.”He further stated that “Massachusetts law requires the owner of the vehicle to have actual knowledge of the driver’s incompetence.”
Bits & Pieces . . .
School for Producer
Development Coming to Plymouth
MAIA and the National Alliance for Insurance Education & Research
have announced that the eighth annual School for Producer Development
will be held from June 8-27, 2003 at the Radisson Plymouth Harbor Hotel
in Plymouth, MA.
The School for Producer Development was created to address the needs
of the insurance industry for quality, well-trained professionals. The
School is targeted at recent college graduates and newcomers to the insurance
profession. “Its primary purpose is the education and training of
young men and women seeking to prepare themselves for a career in the
field of insurance,” said MAIA Executive Vice President Frank Mancini.
The School provides students the opportunity to explore the industry
as a whole, but the core of its curriculum will be centered on commercial
lines - risk analysis, coverage and the sale and service of commercial
accounts. Students participating in the program will examine the sale
and service requirements of commercial insurance, and major emphasis will
be placed upon the practical and professional application of commercial
insurance in the “real world.”
“Our goal is to educate and graduate people who can sell and service
commercial accounts from an experienced and educated perspective that
goes far beyond on-the-job training,” said Dr. William T. Hold, President
of The National Alliance for Insurance Education & Research.
For additional information about the School for Producer Development, contact either Heather Kramer at MAIA by phone at (800) 972-9312 or (508) 628-5452 by fax at (508) 628-5443 or contact Heather by email at hkramer@massagent.com or Bill Toll at the National Alliance by phone at (800) 633-2165 by fax at (512) 343-2162 or contact Bill by email at btoll@scic.com.
Division of Insurance
Begins Licensing Verification
Notices to Licensees Who Hold Agent Appointments
Only in February 2003
The Division of Insurance (the Division) is preparing to convert all active
agent and broker licensees to producer licenses in May 2003. The way in
which a license is converted to a producer license will depend on a number
of factors, including the types of active licenses a person currently
holds. For example, if a licensee has agent appointments, but does not
hold a broker’s license, the Division will issue that individual
a Transitional Producer License in order to keep current appointments
active and to allow for new appointments. In April 2003, the Division
will send Transitional Producer Renewal Applications to these individuals
who are licensed only as agents.
However, before the Division can send these agents a Transitional Producer
Renewal Application, they must verify, and if necessary, update their
personal and licensing data. During the first week of February, agent-only
licensees will be sent a Licensing Data Verification Report that lists
this information.
If you receive a Licensing Data Verification Report, it is very important
that you complete the form and return it to the Division in a timely manner.
Please do the following:
- Read all information carefully.
- Fill in any missing data on the front or back of the form.
- Correct any errors on the front or back of the form.
- If you are a Massachusetts resident and a veteran, you are exempt from licensing fees. If the form incorrectly lists you as “N” under this field, please make the correction and send us a copy of your DD-214 form. We cannot correct the exempt status without a copy of this document.
- Verify active company appointments. Check “Y” if a listed appointment is active. Check “N” if the appointment is inactive.
- Sign, date and return the form to the Division within 10 business
days. The address is: Division of Insurance, One South Station, 5th
floor, Boston, MA 02110.
If you determine that any of the listed appointments are inactive, you should contact the company immediately and request they terminate the appointment from their records. Please note, if you mark an appointment as "N", the Division will also cancel this appointment from our records. Remember, individual with brokers licenses won't receive a Verification Form.
DOI News . . . 2003
Rate Deviations Approved-SDIP Reminder
The Division of Insurance has approved the private passenger auto insurance
deviations filed by insurance companies. The companies and their deviations
include: Amica-6% for Step 9; Electric-5% for Step 9; Fireman's Fund-10%
for Step 9; National Grange-2% for Step 9; and Premier-2% for Step 9 and
7% Multi-Car Discount.
Since the 2003 rate decision included a change in the per-step value
from 7 to 7.5% for Collision and Comprehensive, the “Ways to Save”
booklet, which was approved prior to the rate decision, reflects the old
values. Uniform Printing has new brochures with the correct values available,
but companies are not required to reprint the brochures. A new SDIP chart
suitable for printing straight from your browser has been posted on the
Divisions website at:
http://www.state.ma.us/doi/Consumer/WaysToSave_SDIP.html
Speaker Finneran Addresses MAIA Board of Directors
The MAIA Board of Directors had the distinct pleasure of having Speaker
of the House Thomas M. Finneran address its February meeting. Speaker
Finneran’s presentation was centered upon the financial crisis facing
Massachusetts. He entitled his remarks “No Ordinary Time.”
Speaker Finneran noted in his remarks that, not since the Great Depression,
have we faced such a bleak economic environment. The Speaker reviewed
for the Board all of the factors that have occurred over the last few
years that have had an impact on our current financial crisis. He discussed
the recent world events-9/11,Iraq, N. Korea, the Mid-East-and their impact
upon the world economy and the stock market. He remarked that the bubble
burst, resulting in the revenue collapse.
The state is also faced with rising health care costs,adding to the state’s
financial problems. Over the next several months the legislature, must
grapple first with balancing the FY’03 budget with further cuts as
well as deal with a $3 billion dollar budget gap for FY’04.
Speaker Finneran then took questions from members of the board.
 "No Ordinary Time" was the theme of the Speaker's remarks to the MAIABoard. |
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The Massachusetts Agent
Donna M. McKenna, Editor
dmckenna@massagent.com
Copyright© 2003 - Massachusetts Association of Insurance Agents