Auto Insurance Companies To Face Multi-Million-Dollar Lawsuit; National Auto Agents Alliance Takes Action.Business Editors CLEARWATER Clearwater, city, United States Clearwater, residential and resort city (1990 pop. 98,784), seat of Pinellas co., W central Fla., on the Pinellas peninsula, between Clearwater Bay and the Gulf of Mexico; inc. 1891. , Fla.--(BUSINESS WIRE)--June 5, 2001 A multi-million-dollar class-action lawsuit lawsuit: see procedure; tort. has been authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: by the Board of Directors of the National Auto Agents Alliance (NAAA NAAA National Association of Arab Americans NAAA National Aircraft Appraisers Association NAAA National Agricultural Aviation Association NAAA National Auto Auction Association NAAA National Aboriginal Achievement Awards NAAA National Alarm Association of America ) against several insurers. The Auto Agents Alliance questions the legality le·gal·i·ty n. pl. le·gal·i·ties 1. The state or quality of being legal; lawfulness. 2. Adherence to or observance of the law. 3. A requirement enjoined by law. Often used in the plural. of insurers reducing agent's compensation expenses without reducing charges to consumers. The NAAA action comes in the wake of continuing slashes in agent compensation of 25 to 100 percent in some states, eliminating the agent's ability to provide quality service contracted to policyholders. Subsequent to receiving approval of rates based on anticipated expense factors, some insurance companies have been reducing agent re·duc·ing agent n. A substance that chemically reduces other substances, especially by donating an electron or electrons. compensation expenses sharply without obtaining prior regulatory approval or passing on these reductions to the consumer. The National Auto Agents Alliance, representing thousands of agents and millions of policyholders across the U.S., believes that consumers suffer when their agents are financially unable to provide quality service for which the consumer paid. NAAA President, James W. Holthaus, stated: "It is unfortunate that we have been forced to take this action but feel this is the right direction to take for both our member independent agents and the consumers they represent." The National Auto Agents, formed in 1995, is a trade group representing independent auto insurance agents in 18 states. For more information contact Art Mastera, Executive Director, at 877/367-6223 or by email at ajmastera@bigfoot.com. |
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