HISTORY OF THE INDEPENDENT INSURANCE AGENTS OF
AUSTIN
A statewide association of insurance agents existed in Texas prior to
1900. 0. H. Millican of Austin was State President in 1908 and 1909. The
Austin Association was organized in 1926 with A. H. Osborn as president.
The name used was Austin Insurance Exchange. This new group was
incorporated as of October 19, 1928, and adopted its first by-laws in May,
1931.
Dues when C. A. Schutze, Sr. joined the association in 1934 were $15.00 per
year for the local and $10.00 per year for the State. However, membership in
the State association was not a requirement for membership in the local
organization.
Original purpose of the organization as expressed in the bylaws was that of "mutual
help and protection of its members in their work and service". Education
was a number one priority. However, the focus was on stock company agents
versus mutual agents. No mutual companies could be represented by member agencies.
In the beginning and for a number of years the legislative arena had to do with
opposing "flexible" (now known as "open") rating.
This was almost a biennial battle between the agents and company groups.
A significant practice early in the development of local insurance agent associations
was the handling of public insurance business. This was generally done through
"placement boards". By having public business handled in this
fashion everyone benefited. Placement of insurance for cities and counties
was taken out of politics. Public officials avoided the harassment of a number
of agents seeking the public business, and the possibility of an incompetent
agent ending up with the public business was reduced. A very strong placement
board was being operated in San Antonio. Austin also adopted the concept,
though not all local political bodies participated.
Mutual agents might have complained about being "cut out" of the
commissions on public business, but they had no active Austin Association and by
Texas law, Governmental agencies could not become "member" in mutual
associations and thus not buy insurance from mutual companies.
In the early years of the association, as Austin and Travis County grew, the
commissions from public business encouraged agents to become members. In the
1950's it was decided that the commission income should be used for
the public benefit instead of being distributed to the individual members
for their own use. Dues were increased to exceed the annual distribution of
commissions. The funds so generated were then available to support the
driver education programs in the public schools, traffic safety, arson
prevention and other similar activities.
In 1957, Drex Foreman, who had been Executive Director of the State Association
for thirty years, with offices in Fort Worth, retired. Forrest S. Pearson, who
was very active at the State level, suggested to C. A. Schutze, Jr., then local
president, that our local association make a proposal to the State Association
that it relocate in Austin. Austin offered to pay a part of the salary of one
of the State Association staff who could serve as a part-time secretary for the
local group. The offer was accepted and the State Association moved to 1010
Brazos with Claude Webster as Executive Director.
Following a court case which involved the New Orleans agents' association and
possible antitrust complications, the by-laws of the association were amended
to remove the requirement that agents represent only stock companies. In the
1940's, the association had changed its name from Austin Insurance Exchange to
the Austin Association of Insurance Agents. In the 1980's, after the
establishment of "Big I" as a recognized symbol, the name was
again changed, this time to the Independent Insurance Agents of Austin.
With the growth of Austin, a new era had begun. |