in this issue
Mercury Talks to sr22 alliance
about Acquisition
CDI Recovers 13 Million for
2007 Wildfire Survivors
Sell Additional Lines to
Increase Agency Revenues
Husband and Wife Arrested for
Auto Insurance Fraud
Local Meeting Calendar
sr22 alliance board members
Debra Jackson, President & CEO
Ken May, Vice President
Ramon Altamirano, CFO
Jerry Conrey, Secretary
Richard Paul Aguilar
Cliff Cottam
Bud Dandurand
Toni Damberger
Marilyn Daura
Charlie Garrison
Patty Lares
Roger Stone
Joe Waked
association executives
David Nielson, CIC, Executive Director
david@agentssr22 alliance.com
Mike D’Arelli, Executive Vice President
mike@agentssr22 alliance.com
legislative advocate
Kevin Pedrotti
JK Pedrotti Governmental Relations
Page 1
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Pg. 6
Pg. 9 When news broke last week that
Mercury General Corporation
had entered into a definitive
agreement with Aon Corporation
for the purchase of Auto Insurance
Specialists - one of California’s
largest independent brokerages,
it comes as no surprise that a few
eyebrows were raised in suspicion
about Mercury’s true intentions.
Almost immediately, rumors swirled
through out the insurance community
that the acquisition signaled
Mercury’s desire to go direct. Critics
of the acquisition questioned why
Mercury, one of the strongest
proponents of the independent
agent/broker distribution channel,
now wants to compete against their
own agency force. Some even went
so far as to insinuate that Mercury’s
new brokerage would be able to
offer their products at a lower rate
than other appointed agencies –
sparking outrage by some appointed
producers.
While the acquisition of AIS by
Mercury isn’t short on controversy, we
had a chance to sit down with Bruce
Norman, Senior Vice President of
Mercury General Corporation, who
explained that their motivation was
far less unscrupulous.
“Let me start the conversation by
stating that we did not seek out this
acquisition”, said Bruce Norman, “We
had no interest in going to this side
of the business. However when we
were informed by Aon that it planned
to sell AIS, we couldn’t ignore the
fact that a significant portion of our
California business is written by this
brokerage.”
AIS is currently Mercury’s largest
independent broker producing over
$400 million of direct premiums
written, which represented 14%
of the company’s direct premiums
written during 2007. If that large
book of business ended up in the
hands of a direct writer who rolled it
into their program, it could have had
a negative impact on both Mercury
and its producers. It’s speculated
that Mercury would have had to
compensate for the loss by raising
its rates - making Mercury products
less competitive and more difficult to
sell.
“We initially looked at the possibility
of making AIS an employee owned
organization but were unsuccessful
in raising enough capital”, said Bruce
Norman. “With that in mind, we had
little choice but to green-light the
acquisition.”
Continued on Page 3
mercury Talks to
The sr22 alliance
About AIS Acquisition

Mercury to Acquire AIS - Continued
Mr. Norman went on to say that they were very concerned
about how their agency force would react to the news.
To quell some of the rumors and speculation, Mercury
sent a communication piece to all of their producers
announcing the acquisition and their motivation behind
the purchase. “It was important to us that all of our
producers know exactly how we came to this decision,”
said Mr. Norman. “We also wanted to keep the lines of
communication open should any of our producers have
questions.”
When asked to comment on the rumors that Mercury
plans to go direct and that AIS will be able to sell
Mercury products at a discounted rate, he replied,
“Mercury is 100% committed to independent agent
distribution model and has no plans to go direct. As
far as AIS is concerned, they will continue to operate
as they always have. They will remain on the same
commission schedule prior to the acquisition and will
be subject to the same underwriting rules and rates as
any other Mercury agent.”
The purchase price of the transaction is $120 million
plus a potential earn out of up to $34.7 million, payable
during the two-year period following the transaction
closing date. The transaction is expected to close in
the first quarter of 2009.
For more information about Mercury Insurance Group
or this acquisition, please visit them on the web at www.
mercuryinsurance.com. 
Commissioner Poizner
Announces Nearly $13
Million Recovered for
2007 Wildfire Survivors
SACRAMENTO ― On the eve of the one-year
anniversary of the October 2007 wildfires, Insurance
Commissioner Steve Poizner today announced that
the Department of Insurance has recovered more than
$12.7 million from insurance companies by standing
up for consumers who had been shortchanged.
“I am pleased that the Department’s aggressive
action on behalf of consumers has resulted in $12.7
million back in the pockets of wildfire survivors,” said
Commissioner Poizner. “Insurers understand that
I simply will not allow them to give consumers the
runaround. I have personally called the CEOs of major
insurance companies to make sure that individual claims
are paid out quickly. I will continue to put pressure on
any insurer not playing by the rules, and if they still
refuse to honor their agreements with fire survivors, I
will take appropriate action to enforce the law.”
To date, the Department of Insurance has recovered
$12.7 million for 2007 wildfire survivors statewide.
That includes:
* $9 million for San Diego consumers
* $1.9 million for Lake Tahoe/Angora wildfire survivors
* $1.3 million for San Bernardino residents
CDI was able to recover these funds for consumers
that notified the Department of their problems and
suspected unfair treatment by their insurer. CDI has
received 549 consumer complaints since the fires
broke out almost one year ago.
Of the 549 complaints received from consumers, 106
have involved underinsurance allegations. CDI has
recovered more than $3.8 million for consumers who
had complaints stemming from underinsurance issues.
That includes nearly $2.6 million for San Diego wildfire
survivors and nearly $1.2 million for Lake Tahoe/Angora
wildfire survivors.
“I also want to remind wildfire survivors struggling
with their insurance company who haven’t contacted
the Department that we are here to help,” continued
Commissioner Poizner. “I urge anyone having difficulty
with their insurance company to contact the CDI
Consumer Hotline at 800-927-HELP.”
Page 3
Millions Recovered from Wildfire - Continued
As a result of the 2007 wildfires, nearly 39,000 claims
were filed. To date, nearly 80 percent, or 30,000 claims
have been closed after consumers have received
payment from their insurance company. The fires
caused $2.3 billion in losses.
Since the 2007 fires broke out, Commissioner Poizner
has been taking action on behalf of consumers
including:
* The Commissioner hosted a series of town hall-style
Insurance Recovery Forums to assist fire survivors
with their recoveries.
* Commissioner Poizner also brought CEOs and top
executives of leading insurance companies together
to announce voluntary claims handling reforms,
which have helped to expedite recovery for wildfire
survivors.
* The Commissioner also cut through the red tape
and enabled survivors to be paid expediently when he
declared an Insurance Emergency that allowed out-ofstate
adjusters to come to California and assist in the
claims-paying process.
* Commissioner Poizner personally called the CEOs
of the major homeowners insurance companies in the
state to make sure that they were paying claims quickly
to help get fire survivors back on their feet quickly.
Please visit the Department of Insurance Web site at www.
insurance.ca.gov. Non media inquiries should be directed
to the Consumer Hotline at 800.927.HELP. Callers from out
of state, please dial 213.897.8921. 
Page 4
Mexican Insurance...
...the American Way!™
Sell Additional Lines
To increase Insurance
Agency Revenues
By Stuart Ganis, CEO Ganis Consulting
Agencies that sell nothing but Auto Insurance are going
to have a difficult time over the next few years if they
don’t diversify their product offering. Brokers who are too
dependent on Broker Fees or that sell one product (Auto)
will have a difficult time competing if they’re not already.
As a fellow Broker who charged Broker Fees, I agree that
this is very frustrating. I can also tell you that a handful
of Brokers ruined the ability to charge Broker Fees by
overcharging and not providing proper service. We can
discuss the pros and cons of Broker Fees for weeks
but it’s not going to help you replace the revenue you’re
eventually going to lose.
How can you replace your Broker Fee revenue?
Increase your commissions. How do you increase your
commissions? Sell additional products.
You can be assured at renewal, most of your policyholders
will be online or on the phone obtaining quotes from your
competitors. It’s important to take a proactive approach
to your renewals to make sure they renew. This means
shopping your renewals and making sure your client has
appropriate coverages at the lowest rate you have to offer.
A phone call reminder, letter or email will do wonders for
your retention.
I recall reading research from State Farm years ago
that explained how the typical auto client stays with an
agency for 9 months. If you add one line of business this
increases to 2 years. Add an umbrella policy and they’re
yours for 4-5 years. You get the idea here – the more lines
of business a client has with your agency, the longer they
stay.
We’ve heard agents say, it’s not worth their time to sell a
motorcycle policy and make a $15.00 commission when
they can be working on something else. We’ve even
heard agents say that by selling HO insurance with the
same carrier as the auto the discount makes it a wash
and they’re “reducing their commissions” by selling the
additional line.
What agents have to realize is that by selling the additional
line you’re not only looking at the short term benefit
(additional commission 99% of the time) but the long term
benefit (retention, retention, retention!)
As you set your 2009 goals, put training and selling
additional products at the top of your list. If your staff isn’t
selling homeowners, renters, condo, motorcycle, dirt bike,
boats, floaters, dwelling fire, motor home, camper, Health
or other coverages, chances are they don’t know how.
Take the time to learn how to sell all of these products.
Diversify your agency. You increase the chances of
insuring your prospects by offering additional products.
If you continue to rely heavily on broker fee income, you
may be scrambling to pay your bills, laying off staff and
regretting not learning these other lines of business. Take
a proactive approach to making money and running your
agency, not a reactive one. 
Ganis Consulting is a Los Angeles
Based insurance consultancy that
specializes in selling insurance
agencies and brokerages. Contact
them at www.ganisco.com or email
stuart@ganisco.com
Page 5
San Carlos Husband and
Wife Arrested for Auto
Insurance Fraud
SAN CARLOS ― Today Insurance Commissioner
Steve Poizner announced the arrests of a San Carlos
husband and wife for allegedly fraudulent insurance
claims made in connection to a 2006 automobile
accident. Sabrina Mendez, 40, and Salvador Mendez-
Mora, 31, were arrested this morning on felony
insurance fraud charges and failure to provide workers’
compensation insurance, a misdemeanor.
The case, which is being prosecuted by the San Mateo
County District Attorney’s Office, is the result of a joint
investigation by California Department of Insurance’s
Fraud Division (CDI) and the San Mateo County District
Attorney’s Office.
“Insurance fraud may seem victimless, but it is not
because California’s consumers foot the bill,” stated
Commissioner Poizner. “Even in these hard economic
times, the lesson remains the same - do not commit
insurance fraud.”
Mendez reported to her insurer, the California State
Automobile Association (CSAA), that on October 12,
2006, she was involved in an accident while driving
her 2005 Dodge Dakota truck through the Foodville
Market parking lot in San Carlos. According to Mendez,
in the vehicle with her were her husband, their fourmonth
old son, and a day-laborer. Both Mendez and
Mendez-Mora sought chiropractic care following the
collision. The couple submitted claims for their medical
treatment, replacement of a child safety seat, repair of
the truck and vehicle rental during the repair period.
A subsequent investigation determined that Mendez-
Mora was actually driving at the time of accident. He
does not have a current California drivers license and
is an excluded driver on Mendez’s CSAA policy.
The investigation further revealed that the truck was
used for Mendez-Mora’s business, Sal’s Landscaping,
and that he did not have workers’ compensation
insurance for his business.
Please visit the Department of Insurance Web site at www.
insurance.ca.gov. Non media inquiries should be directed to
the Consumer Hotline at 800.927.HELP. Callers from out of
state, please dial 213.897.8921. 
Page 6
Do you need to grow your business? Are you searching
for competitive, preferred markets? Would you like to
obtain your own direct appointments? Then look no further.
The sr22 alliance Gateway™ is your gateway to becoming a
full-service, preferred insurance producer.
The sr22 alliance Gateway™ program provides sr22 alliance
members with access to a myriad of critical markets while
providing you with the training needed to take your career
to the next level.
sr22 alliance Gateway™ Features:
* No Fees to Join
* Free Live Training, Mentoring, & Support
* Preferred, Standard, and Non-Standard Markets
* Personal & Commercial Lines Available
* Competitive Commission Schedule
Access Quality Insurers Including:
What participants have said about The sr22 alliance Gateway™:
“The sr22 alliance Gateway program is a must-attend program if
you want your agency to leap to the world of the preferred
market. The program provides tools, teaches and assists
your agency in obtaining preferred clients for a more stable
book of business.”
-Greg, So. California
“Finally, a producer association is placing the long-term
success of its members ahead of its own. Thank you
sr22 alliance for giving me the knowledge and tools to succeed
as a preferred producer.”
-Mike, No. California
“The information shared in the sr22 alliance Gateway program
has been superb, and invaluable. I cannot wait to see
where this agency will be in a year! You were so open and
willing to answer every question. It is clear your true desire
is for each of us to succeed. I really appreciate all that
the sr22 alliance is doing for our business and we plan to pay it
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-Theresa, So. California
sr22 alliance
GATEWAY
Call (866) 497-9222 to Register
We Want You
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Page 7
sr22 alliance gateway
application
Business Name:
Primary Business Address:
Mailing Address (if different from above):
Year Established: Number of Locations:
Type of Business Entity: Sole Proprietor Corporation Partnership LLC
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fax form to (916) 283-9479
The sr22 alliance Gateway™ program provides sr22 alliance members with access to a variety of quality Preferred and
Non-Standard Personal and Commercial Lines Markets. Participation is free to sr22 alliance Members but space is
limited. Complete the application today to secure your spot in the next sr22 alliance Gateway™ training seminar.
San Diego Metro
Topic:
MexiPass International Insurance Services will be
sponsoring a special 1 hour CE course entitled, “Selling
Insurance for Americans in Mexico”. The first 20 members
to R.S.V.P. get in FREE.
When:
November 11, 2008
6:30 - 8:30 PM
Location:
Andre’s Restaurant
1235 Morena Blvd. San Diego, CA
San Jose
Topic:
Craig Hulse from INB Insurance Services Corporation will
be giving a presentation entitled “Insurance Lead Ideas that
Agents Can Use to Generate New Business”.
When:
Novemwber 21, 2008
7:30 AM
Location:
Campus Insurance
4340 Stevens Creek Blvd. San Jose, CA
Santa Clarita
Topic:
MexiPass International Insurance Services will be sponsoring
a special 1 hour CE Course entitled, “International Kidnap
and Extortion Insurance”. The first 20 members to R.S.V.P.
get in FREE.
When:
November 12, 2008
6:30 - 8:30 PM
Location:
Coco’s Restaurant
24930 Pico Canyon Rd.,Stevenson Ranch, CA
Downey
Topic:
Dennis Pollman from Pollman’s Classic Car Insurance will
be giving a presentation entitled “Worry Free Insurance
Without Roadblocks”.
When:
November 13, 2008
6:30 - 8:30 PM
Location:
Coco’s Restaurant
11510 East South St. Cerritos, CA
Orange County
Topic:
MexiPass International Insurance Services will be
sponsoring a special 1 hour CE Course entitled, “Selling
Mexican Auto Insurance”. The first 20 members to R.S.V.P.
get in FREE.
When:
November 20,2008
6:30 - 8:30 PM
Location:
El Torito’s
2020 E Ball Rd. Anahiem, CA
Rancho Cucamonga
Topic:
Dennis Pollman from Pollman’s Classic Car Insurance will
be giving a presentation entitled “Worry Free Insurance
Without Roadblocks”.
When:
November 19, 2008
6:30 - 9:00 PM
Location:
The Old Spaghetti Factory
11896 Foothill Blvd. Rancho Cucamonga, CA
local meeting calendar
Page 9
Due to the holiday season, many local meetings will go dark during November.
Register for Local Meetings at www.agentssr22 alliance.com
Make Checks Payable To:
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mail or fax this form to (916) 283-9479
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