Conservative Refocus News

By Kim Stallings and Barry Secrest

Alfa Alliance Insurance Corporation is pulling out of the states of North Carolina and Tennessee. 

Initially, surprise notices had been mailed out to agencies that simply stated " as of ...the agency will no longer represent Alfa Alliance..," in addition to unconfirmed reports that some few cancellations had actually been mailed out to insured customers mid-contract with no explanation.

This left both many agents and their customers confused, since no formal notices had been forthcoming, as to whether they had actually been "fired" by the company for no stated cause or for other mysterious reasons.

According to existing company information, Alfa Alliance will continue to underwrite policies in Virginia where it maintains a viable presence.

On the main Alfa website, formerly, there was no mention made of their withdrawal from North Carolina (and Tennessee, as it later turned out), so potential customers and current insureds had no way to be informed.  Within the Agent's Only portion of the site, there was only the following small note within a larger, semi-related text:

"Agency principals can now access a variety of reports specific to your agency’s efforts to re-market your AAIC policyholders due to our withdrawal from North Carolina and Tennessee."

When an Agency memo was forwarded to Alfa requesting clarification on certain insured cancellation issues, a staff underwriter responded that agents had been notified via registered letter, and also through an email blast, that Alfa Alliance was pulling out of the state.

On Monday, December the 12th, Alfa Alliance finally did send out formal notices to their agency staffs in the form of an email with detailed instructions indicating how Alfa planned to proceed with the withdrawal.

Alfa Insurance, not to be confused with Alfa Alliance, is listed as an affiliate company and is Located in Montgomery, Alabama, founded in 1946.  The company acquired Virginia Mutual, which became Alfa Alliance in 2006, and began doing business in North Carolina in 2007 when the conversion was complete.  Boasting a focus on "personal and small business insurance needs," the company's "About Us" section still claims close to $35 million in coverage in force throughout twelve states: "Alabama, Mississippi, Georgia and additional products are marketed in Texas, Missouri, Indiana, Ohio, Virginia, Tennessee, Arkansas, Kentucky and North Carolina."

 Alfa Alliance has indicated that policies in effect on or after 3/15 of 2012 will be receiving notices of non-renewal approximately 60 days in advance of each policy expiration date. If you are a customer of Alfa Alliance and you would like to keep your current agent, you should contact your Alfa agent well  prior to your non-renewal date in order to find out what other alternatives may exist for the replacement of your insurance coverage.

For more information about Alfa insurance and its affiliate companies, please click on this link.