KFBIAA President Mickey Sirls

I’m Mickey Sirls, President of KFBIAA, and this is an historic post.  It’s the first time I have been able to let every member that is interested see what is going on.

This month’s theme is:  “What doesn’t kill you will make you stronger.”

The May Insurance Board Meeting was dominated by the changes in policies and rates.  At first glance, agents may assume things didn’t go very well, but with a closer look you’ll see it could have been a lot worse.

Let’s remember the company has lost tons of money and we’re looking at our reserves falling below $800 million.  So, like every state around us, we have to do something to stem the tide.  North Carolina, Tennessee and Georgia, to name a few, are cancelling thousands of policies.  North Carolina alone cancelled 50,000 where the client had losses.  That option was brought up by our Insurance Management, but declined by Federation Management.  To me, approving that option would have been a “worst case” scenario.  So instead of cancelling the policies, we have a few increases and discounts that look to go in place later this year, and in 2013.

December 1, 2012:

  • Homeowners: 14.6% increase
  • Mobile home:  12.0% increase

January 1, 2013:

  • Commercial:  13.4% increase
  • Dwelling Fire:  27.6% increase
  • Umbrella:  14.0% increase
  • Farm Owners:  11.1%
  • Earthquake:  25% increase with 20% deductible (which we already have)

Yes, that looks tough.  But there are some things we have been asking for that came out of this too.

  1. You’ve just received the ACV Roof Endorsement via e-mail.
  2. In July we will have a 5 day extension of bills, and they will cancel the morning of the 6th day if not paid.
  3. In 2013 we will charge a fee for reinstatements, and for cold checks.
  4. Starting in 2013 you will be able to rate houses on the different style of roofs they have
  5. Adjusters will re-inspect roofs that have been paid for.
  6. The amount of insurance to qualify for HO programs will be raised.
  7. Rewrites, in a revised form, are coming back.
  8. Autos won’t lose the amount of discounts they are getting if they don’t have, or lost property.
  9. New property reinstatements we will use property insurance score and clue to determine if we can write, and what discounts they will get.
  10. Property will require 360 degree Dwelling Cost Estimator.
  11. Property will require insurance to value.
  12. Property insured under $1000 requires $500 deductible + 1% wind and hail deductible; over $100,000 require $1000 deductible + 1% wind and hail deductible.
  13. If property is in a declared over-exposed area, it will require 1% wind and hail deductible

One last thing – I’d like to give a shout out to Scott Travis, Alex Barnett, Kelly Thurman and David Chappell, who spoke up for the agents in this meeting.

Check on the Hot Topics for anything new and I will report back to you in June.

Thanks and Good luck!


  1. Kenny Rambo says

    Thanks for the update.

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