Agents Object to Allstate Ads in Ohio Bureau of Motor Vehicle Mailings

February 7, 2006

Ohio Governor Bob Taft has asked a state agency to look into a contract that allows an insurance company to advertise in thousands of vehicle registration renewal notices sent to drivers, according to the Associated Press.

Illinois-based Allstate Corp.'s advertisements included in the Bureau of Motor Vehicles mailings have been questioned by some that believe the ads might be taken as a state endorsement of the company over other insurance agents.

The Professional Insurance Agents Association of Ohio, an organization representing thousands of state insurers, complained in a letter to Taft last month that only Allstatewas included in the mailings.

Taft describe the situation as "very troubling" adding that his inclination is that there should not be ads from a major insurer in the mailings.

Ohio has a contract with Massachusetts-based Imagitas Inc. to mail the renewal notices after soliciting ads for them. The company has sent 3 million renewals with advertisements since the program began in October, according to bureau spokesman Fred Stratmann. The program has yielded $1.2 million to help defray mailing costs.

George Haenszel, executive vice president of the insurance trade group said that it has nothing to do with Allstate but that the trade agent group believes it is highly inappropriate for a state agency that enforces insurance law to carry an advertisement for an insurance company.''

A spokesperson for Imagitas said the company has not received complaints in other states where it includes insurance ads in mailings for motor vehicle agencies. She said the mailings include a disclaimer that the bureau is not endorsing the companies advertised.

A Taft spokesman said the governor doesn't object to contract but wants the agency to look into the matter.

http://www.insurancejournal.com/news/midwest/2006/02/07/65114.htm

We can make the worm turn!!!