Re: [AISdiscuss] Re: AIS Finances

[gormleygreenery@aol.com]

The "Plank/Aitken" letter in January clearly outlined the problems as well as the steps taken at the Fall Board meeting.  I truly believe that the majority of the Affiliates understand the problem (as opposed to the nay-sayers who contend that the Affiliates constantly say "we don't use the insurance") and are willing to contribute but you must specifically ask or it won't happen.
 
I strongly urged Jeanne to address a letter to all RVPs and thru them to the Affiliates, again stating the problem and specifically asking for contributions this year and perhaps annually (given updates on the situation) earmarked for the insurance costs. .  You should also specifically tap the Sections for contributions, especially those who have Convention/Tours of their own.   Include a "over time" breakdown of the coverages, brokers, companies and costs since the inception of the program (that is the most frequent criticism I hear concerning the issue-what was the actual cost/increase?).  I recall hearing the stats but never have seen them in writing.  
 
Many of the RVPs agreed at the Spring Board meetings to go back to the Regions to instigate a contribution at that level.  Region 18 voted at their Spring meeting at the Convention to contribute $1,000.  Some Regions have no funds that they can contribute-others have a healthy surplus and with 24 Regions, there can be a considerable resource to help with the "premium" problem.  However, most Regions will not have another meeting until Fall and they need to have their "facts/ducks/proposals" in order to go to the Board.  Few are equipped by structure to handle interim business. 
 
Cost-containment by eliminating an employee benefit cannot be compared with not carrying basic liability (including defense of claims) insurance for an organization with the public exposure that AIS has.  
As an ex-insurance professional, if AIS has no liability coverage, I would severely limit my participation to worker-bee only, no decision/financial involvement responsibility at all.  I no longer maintain my insurance broker?s license for the same reason-no employer provided E&O insurance!  The risk to my personal assets is too great to even consider.  
 
 
Rita Gormley, RVP and Committee Chair with no vote
Gormley Greenery
Cedar Hill, MO
 
 
-----Original Message-----
From: CEMahan@aol.com
To: aisdiscuss@aisboard.org; AISdiscuss@aisboard.org
Sent: Thu, 9 Jun 2005 06:48:35 EDT
Subject: [AISdiscuss] Re: AIS Finances


Dear friends:
 
During most of the long history of AIS it had no insurance program. When  the 
AIS insurance program started, it made sense because the insurance was so  
inexpensive at the national level. The cost of the insurance program is no  
longer inexpensive. It is now threatening the existence of AIS. Of course local  

societies like the program--everyone likes things that are "free." 

When a company is confronted with soaring cost, it either has to reprice  its 
product or eliminate the item that is theatening its existence. Many  
companies have had to decrease or eliminate their health coverage of employees  
because of the soaring cost of medical insurance. AIS has repriced its product  
(increased dues), but that is only one more factor that will lead to greater  
membership decline. 
 
I do not like to have to write this, but the current AIS insurance cost is  
going to sink AIS if something radical is not done. Raising the dues again is  
not a rational option. Dipping into the life membership reserves is also not 
an  option. The cost of insurance is not going to go down; it is only going up. 
It  is my suggestion that the Board seriously consider converting the 
insurance  program from one that provides the insurance to one that provides the  

information on how local societies and sections can purchase  insurance.  
 
 Clarence

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