executive vice president perspective Continuous Progress In the last issue of The Anchor, I posed the question about minimum automobile limits and questioned the adequacy of state mandated limits. Much to my surprise a couple of readers responded to the article and asked additional questions. Here’s a look at one of those questions. How do we compare to other states? Having researched limit profiles on a state-by-state basis, some interesting results were found. Of no particular surprise, the median limits for all 50 states and the District of Columbia is 25/50/10 (Rhode Island is 25/50/25). We are one of 27 states that have a $25k bodily injury (BI) limit with only five other states with higher BI limits than us. On the BI per occurrence front we are one of 26 states with limits of $50k per occurrence with again only five states with higher limits. Finally for property damage (PD) I found that we are one of ten states with $25k PD limits and only Texas with a higher limit at $30k. So where are we now? There appears to be no outpouring of consumer or industry interest in modifying the current state minimum automobile limits. In fact, without a broad based consumer initiative I would say it’s probably unlikely we will see amendments offered to raise minimum limits even though it is in the public’s best interest to do so. Commoditization of auto insurance will continue and be driven at least partially by consumers opting for what are clearly inadequate limits. Make sure your policyholders carry adequate UIM coverage to combat a sea of underinsured motorists that roam the streets and highways! Mark A. Male Executive Vice President
As we wrap up 2014, here’s a quick overview of the past year. IIABA View As an organization, Rhode Island maintains a viable presence at the national association, IIABA, as our national director, Bob Slocum, heads Project INvest, a critically important committee as the Association countrywide looks to bring more young people into the business. With an aging population of agency principals, the importance of INvest continues to increase and Bob has been asked to take the lead in this area. Bob and I also serve on working groups of the IIABA Planning Committee. There are three working groups and Rhode Island is represented on two of three! I continue as a member on the formal IIABA Planning Committee and also serve as chair of the Co-Branded Website Task Force. In all, 36 states participate in a shared web platform that minimizes our expense in maintaining a web presence which includes the ability to handle online purchases. CONTINUED ON PAGE 12
The Anchor 10 Fourth Quarter, 2013