[AISdiscuss] 2006 Spring Insurance Report

[SAMMYGIZ@aol.com]

Hello all,

I know the issue of insurance will be brought up once again and there  will
most likely be a great bit of discussion concerning the cost of the policy  we
have.  I thought I would copy my report here and send it out to  digest and if
any of you have some specific questions or comments after you  could send
them to me.  If I am able to provide an answer before Gerry and  I leave for
Portland on May 20, I will.  I am sure there will be many  comments that will
come
up at the meeting but I felt this would provide everyone  with an opportunity
to think over the situation and perhaps even offer a  suggestion or two.

Michelle Snyder




AIS INSURANCE
SPRING, 2006 REPORT
MICHELLE SNYDER - CHAIR  PERSON
Earlier in the year many people voiced their opinions  concerning the high
cost of insurance for the AIS, particularly the cost of the  liability
insurance
coverage.  Questions were asked such as how many affiliates avail themselves
of the  policy each year; would just covering the AIS at its national
convention be the  way to go and letting the affiliates fend for themselves;
could
coverage only be  afforded to those clubs that contribute something to the
premium; could we just  cancel the coverage and broll the diceb.
In my fall 2005 report, I provided the board with  information gleaned from
the survey I did of the approximately 183  affiliates.  Of the 147 responses I
received, approximately 35% said they were required to show proof of
insurance.  Seven clubs said they  carried outside coverage; however, it is
now my
understanding that most, if not  all of these clubs, have dropped their
coverage
and now rely solely on the AIS  insurance policy.  I asked if the  clubs
would be willing to make a contribution toward the insurance policy and I
received a definite yes from only 60 of the clubs.  At the time of my survey,
51 of
the club  presidents hadn't discussed the matter with their board and could
not
give me a  response.  Another 8 clubs answered  maybe and I got a no from 15
clubs because either the club was too small or they  felt they didn't need to
contribute since they did not use the AIS  policy.
I believe that a club thinking they do not need the  policy (having to get
certificates of insurance) is the greatest misconception  held by our
affiliates.  Even though  a club may not be required to show proof of
insurance when
holding their  sale/show or meeting, they are STILL PROTECTEDAND SO ARE WE.
If a
person not affiliated with the club  is injured or sustains property damage,
I can guarantee that they will seek  remedy from both the club and AIS, as the
parent organization.  bClaimants always go for the deep  pocketsb.
I spoke to our broker and there is no way they would  cover only a certain
number of clubs.  Since each affiliate is technically a member of AIS we, as
the
parent  organization, would be held vicariously libel for any injury or
property damage  that occurred at an AIS sanctioned event.  Any venue where
the
club holds it  meeting, sale or show, regardless of size, would have a waiver
of
subrogation in  place that basically states their insurance would be secondary
in the case of  something happening and our insurance would be primary.
I do not believe there is an easy solution to this  problem.  However, here a
few  possibilities for the board to consider:
Each of the 24 regions contributes $500 annually.  How they raise the
money would be up the regions.  That would bring in  $12,000.
Each club contributes $100.  If we only have 183  affiliates,
that would mean $18,300.
Each club  contribute a percentage accordingly to its number of members,
such  as:
1 b 25 members                                               $25.00
25 b 50 members                                             $50.00
50 b 75 members                                             $100.00
75 members and above                                   $125.00
Since I don't know how many members are in each club I  cannot give a
definite amount as to how much this would bring in.
I am highly opposed to canceling the liability insurance  policy and
brolling
the diceb.  Even  though no claim has ever been presented against the AIS,
it
would only take one  to seriously impact our ability to continue operations.

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