But after we got that business, which was the next year, we needed to go to a $50,000 bond. So that was the other complaint.
The biggest violation looked like a purely technical one, on the face of it.
"That was the whole premise of revoking our license," Gaddis lamented, "which they did. One very nice thing: the executive offices of the department of insurance faxed out the intent to revoke our license-and my license personally-to every independent agent in the state of Illinois. They all got that copy, including methey were nice enough to send me one-before I got the legal notice at home, which was sent by registered mail. So everybody in the entire state knew that they had gotten what they wanted."
The bank still felt it had done nothing wrong. But for political reasons, the bank didn't fight the Illinois examiners. "We were going to have a hearing," said Gaddis. "We were going to go to a hearing because we wanted to vindicate ourselves. We really had not done anything that we thought or interpreted was wrong. But they decided that instead of going to a hearing-which would not be politically correct, anywhere, or for anyone-it would be easier to settle it. So they ended up settling it."
Enduring five months of agony
But the episode was not without cost. "The problem is that it cost us five months of agony," Gaddis revealed. "It didn't hurt us, really, as far as customers. Because they were long-time customers, and they knew us, and they stayed with us. So we didn't lose any customers. But I can't say if we lost some potential new customers or not."
Then, it was all over. "So, the department of insurance has now gone away," Gaddis concluded. "They're going to leave us alone. And just to make sure of that, AMCORE has changed the ownership of the agency to Alito State Bank, as of July 1, 1998. So we no longer are under national bank regulations."
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ACQUIRING AN AGENCY? ASK TOUGH
QUESTIONS!
ome banks, eager to get into the insurance business, buy S agencies that aren't appropriate for them, and they regret it later when the business doesn't work. Those banks didn't ask the tough questions, according to bank consultant Robert W. Reagan, president and CEO (chief executive officer) of Reagan & Associates.
And look at performance levels, as well. What kind of levels of productivity, profitability, and growth are going to be important Of course, you can't even ask these questions if you haven't thought through the kind of agency your bank needs-in detail.
to you?'