If Earl Horton were an entertainer, he would probably be known as the hardest working man in show business. Luckily his interest lies in Florida's insurance industry, where his reach and influence spans from being an executive in a top agency outward to a host of public service positions. In addition to being the executive vice president of the Clearwater-based Bouchard Insurance Agency, he serves as the current chairman of the Florida Association of Insurance Agents. If that wasn't enough, in 2005, then House Speaker Allen Bense appointed Horton as a member of the Citizens Property Insurance Corporation board of governors.

As FAIA President Jeff Grady said at the association's recent 103rd Annual Convention and Education Symposium, “We are fortunate to have this guy. He is a great communicator and we should all be thankful for him.”

At the convention's opening session, Grady and Horton talked about a number of issues ranging from the current political environment to the future of Citizens and the role of FAIA. One of the first questions fielded by Horton was how he became involved in FAIA, and how he rose to the position of chairman. “You have to show up,” he said. “You can sit on the sidelines and watch the game or get in and play.”

He said his favorite thing about FAIA is that its activities and goals are driven by the membership and not the staff. Speaking to the hundreds of agents in attendance, Horton pointed out the invaluable role the association can play in an agent's business, especially new agents who are trying to establish their agencies and play a role in their community. Among other things, he noted that the association's resources in providing the latest information on agency management technology, networking opportunities, and the many ways to further an agent's education. Another plus, he said, is the association's commitment to being in constant touch with association members through newsletters and e-mail contacts. All of those things combined, he said, have increased the reach of the association so that it is a major force in representing agents' interests throughout the state.

“As an association, we are more influential in other areas including legislation, regulatory issues, and Citizens,” Horton said.

Citizens remains a top concern for agents, especially when it comes to commissions. In 2005, there was a move by the Citizens' board to reduce agents' commissions to five percent on all policies. At the time, the insurer had around 800,000 policies in force, and by lowering the commissions, the board calculated it could save around $50 million. Not surprisingly, the proposition set off a heated controversy that was later settled in the agents' favor. In 2005, the insurer paid out some $132 million in total commissions. In Citizens' 2007 planning budget, it estimated it would pay out commissions ranging from $238 million in 2006 to $357 million this year. That number, however, is likely to vary depending on the insurer's growth and the cap on the insurer's rates enacted by the legislature earlier this year.

Grady noted that in the past there was a lot of tension between FAIA and Citizens. He said having Horton on the board helped because agents were no longer “on the outside of the window looking in.” Having said that, he predicted that Citizens is due to grow, especially when it starts offering commercial coverage in September. Horton agreed, but was quick to point out that Citizens does operate under some misconceptions. Unlike private insurers, he said, Citizens is a reactive organization that is essentially controlled by regulators and lawmakers. As he put it, “nothing happens by itself.”

A Political Decision

Recently, one of FAIA's more complex decisions involved who to support in the race for chief financial officer. The association has a long history of being involved in state campaigns at both the legislative and Cabinet level. In fact, the FAIA political action committee task force is one track to raise $1 million to support political candidates around the state.

Traditionally, agents tend to be a conservative group who lean toward supporting Republican candidates. In the race for CFO, however, the association faced a decision of supporting a Democratic candidate in Alex Sink. The CFO spot is important since the person is responsible for regulating agent activities. Also, as a member of the Financial Services Commission, the CFO plays a major role in overseeing the market, making policy, and implementing rules. In supporting Sink, the association would be supporting the only Democrat in the Cabinet who would be in the minority.

Horton noted that it was a decision that had to be made by the FAIA board, which faced the difficult decision of choosing whether to support her or not. “It was a case of, 'Should we or shouldn't we?'” he said. “If we make the wrong decision, we have to live with it for the next four or eight years.” In the end, he said, much of the decision to throw the association's support behind her was based on her chances of being elected, a position he jokingly attributed to Grady. But Horton was quick to praise Sink for her sensitivity to agents' issues.

Grady said that Sink has been supportive, but pointed out the overwhelming fact that so far Governor Charlie Crist is dominating the property debate as demonstrated by the latest legislation passed by lawmakers. “I've never seen a governor with a popularity rating of 77 percent,” he said. “That's hard to top and she is in the backseat to the governor.” He pointed out, however, that it is early in Crist's administration and Sink's time will come, an opinion shared by Horton.

“She is the right person,” he said. “She needs to be right and Crist may need to make a few mistakes.”

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