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NAPAA – HELPING YOU HELP YOUR CUSTOMERS PET Health Insurance Endorsed and approved by NAPAA: How many times have your customers asked about pet insurance Now Allstate agents and their customers qualify for NAPAA’s 5% Association Discount at PetPlan USA. To obtain the 5% discount, please mention or enter discount promotion code SPD20013 when you visit NAPAAUSA.org, Agency Resources, Consumer Center or when you call 1.866.467.3875 Allstate Insurance Faces $60 Million Lawsuit after Restructuring June 25, 2008, Canadian Employment Law Today Allstate Canada’s attempts to cut costs by consolidating offices has left it facing a $60 million class-action lawsuit from some of its former agents. On July 24, 2007, the insurance company announced it would be moving its 450 agents from 256 neighbourhood offices across Canada into 100 larger offices, beginning in May 2008. Most agents weren’t pleased, particularly senior agents, some of whom ran the neighbourhood offices as their own businesses, handling the hiring of staff and management of finances. However, under the consolidation, the 100 new offices will be owned and run by Allstate. The consolidation also outlined significant changes to the contract terms of the agents, including taking away sales commissions on policy renewals. Allstate said it would guarantee agents’ level of pay for two years, but most didn’t bite as the changes would result in overall pay cuts for many, some by as much as 50 per cent. Agents tried to discuss the situation with the company but it wouldn’t budge from its position. More than 70 agents have since quit, though Allstate told the Toronto Star it had hired sufficient replacements. When some tried to continue working with clients as independent brokers, Allstate sued them for breaching non-compete agreements they had signed. However, in March, the Ontario Superior Court of Justice found the agreements weren’t valid, considering the way Allstate and changed their contract terms and ruled the company couldn’t enforce them. On May 20, three agents, Mark Cassels of Hamilton, along with Esther Kafka and Ken Patel of Windsor, launched a class action lawsuit on behalf of all the agents for making “substantive material changes to the employment contract terms with all of its sales agents,” which was a breach of contract and the Employment Standards Act. They also claimed Allstate’s guarantee of their level of income for two years was unlikely to be borne out. The case hasn’t been heard yet, but in the March decision that struck down the non-compete agreements, the court said there was a good chance Allstate will be found to have repudiated its employment contracts with the changes.
Allstate Comments on California Homeowners Rate Ruling July 10, 2008, Company Press Release [Excerpt] Allstate Senior Corporate Relations Manager Peter DeMarco today issued the following statement regarding the California Department of Insurance's order to lower Allstate's homeowners rates in California by 28.5%: "While we are disappointed in this order, we respect the authority of the Department and will comply. We are reviewing the order in detail and communicating with the Department about the process for adjusting the rates of our 850,000 homeowners policyholders in the state. Californians can continue to rely on more than 1,300 Allstate agents to help them with insurance and retirement needs." Buy Ink and Toner at Special Prices From Rhinotek - The only Ink and Toner Vendor approved by NAPAA Rhinotek and NAPAA have reached an agreement which includes special pricing on Ink and Toner for all Allstate agents. For more information call 1.800.695.7446 Florida Supreme Court Declines Jurisdiction in Allstate Matter June 20, 2008, By Brent Kallestad, Associated Press [Excerpt] The Florida Supreme Court declined Wednesday to grant Allstate Corp. an injunction to force Florida insurance regulators to let the company write new car insurance and other policies in the state. The company sought the action after the Office of Insurance Regulation ordered it to stop writing the policies for failing to comply with requests for documents on its business practices. However, Allstate since turned over most of the documents and was allowed to resume its entire line of business in Florida. The company had turned to the Supreme Court after the 1st District Court of Appeal rejected its effort for an injunction last month. "The Supreme Court's decision reassures Floridians that the office has full access to insurers' books and records and upholds the office's actions in its efforts to protect consumers,'' state Insurance Commissioner Kevin McCarty said June 18. Allstate officials did not immediately return phone messages for comment on the court's decision. If the high court accepted the case it could have effected Allstate's scheduled September hearing before the Department of Administrative Hearings, said Ed Domansky, spokesman for the Office of Insurance Regulation. The scheduled weeklong hearing involves the alleged failure of Allstate's 10 Florida companies to comply with the document request, falsely asserting trade secrets and the false certification of its September 2007 rate filing. BEWARE… Identity theft takes place every 3.1 seconds in the United States Protect yourself from Identity theft with NAMESAFE TM NAPAA members and their customers receive a 15% discount off the price of enrollment ($99/year is reduced to $84/year). Use code NAPAA15 at www.NAMESAFE.com The price of enrollment includes all legal support, prosecution support, and a $1 million service guarantee. Make sure you are protected with NAMESAFE TM
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