Insurance Musings

Don't be a Scrooge!

2011-11-25T10:00:00.006-05:00

"At the ominous word 'liberality', Scrooge frowned, and
shook his head, and handed the credentials back." -- A Christmas Carol

On Black Friday last year, I posted the many ways you could donate to The Library. The ways haven't changed, though the various wishlists have had additions of subtractions. I mentioned in another post that after several years of having it on the wishlist, we were the lucky recipients of a lap top. We also had several individuals step forward in the past year to adopt books (we showed off the re-furbished History of Insurance in Philadelphia at this week's Annual Meeting). In case you wanted to donate to a charity as you shopped on amazon, or you wanted to make sure to get a donation in to one of your favorite charities before the end of the year, we thought we'd publish the three main ways to donate in one easy to find place!

The Annual Fund is where general monetary donations throughout the year go. The money is spent on up-keep of the library as well as focusing on one or two projects for the year. Companies and individuals who donate to the annual fund get their name published in our newsletter (we're a non-profit so your donation may also be eligible for a tax deduction -- we're not tax experts though). This year, a portion of the money went toward cleaning the library and putting finishing touches on rooms that had been damaged in the flood. If you take any classes from the library, you'll notice the basement classrooms have been spruced up!

Another way of supporting the library and its collection is through the "Adopt A Book Program" which provides for preservation of our historical publications and documents. The money donated goes toward a specific item --you can read some background about the books and look at them online in their tattered state to pick which one you want to adopt. We make sure a personalized book plate is put in the front of books, when requested, so users know whose generosity ensured future use of the material. The book plate can be donated in honor of someone in case you want to buy it as a gift for someone else. Your recipient can come into the library any time they want and admire the book-binder's handiwork and their name emblazoned on the inside cover.

Finally, the library has an Amazon Wishlist. While you're completing your other shopping on amazon, you can click over and skim the list. If anything catches your fancy, you can simply add it to your cart with the rest of your purchase and Amazon should know to send it to us. You'll notice there are items on the list for general office upkeep. We're currently using the 2004 version of Quicken and would love to upgrade to a more recent version. As you would expect, the rest of the list is filled out with books. Many of these books have been requested by patrons or are for very specialized areas of insurance interest but aren't in our budget. If you find something that falls within your particular area of interest, we'd love it if you'd donate it to our library so we could share it with many more people.

We are very grateful for all the ways in which our membership supports us, without your generosity we would not be able to offer the services we do!

Annual Meeting

2011-11-22T11:56:00.014-05:00

The library had its annual meeting today and welcomed a new trustee, Patrick Quinn of Quinn Group Insurance, to the board.

Patrick Quinn and Frederick N. Nowell, III

Three awards were presented at the meeting as well. Sara Hua of Ironshore earned The Frank W. Humphrey Award. Joe Sciacca, her instructor, presented the award after a heartfelt speech about all of Sara's hard work. Her acceptance speech almost brought the group to tears!

Sarah Hua and Joseph Sciacca

Marc Cleary presented The Barbara W. Thornton Award to his colleague and student, Samantha Frank of Liberty Mutual. She spoke highly of Marc in her acceptance speech mentioning his excellent track record in preparing her for the national examinations.

Marc Cleary & Samantha Frank

Finally, Marc Cleary received an award as a teacher of excellence, for the above average passing ratio of students in his classes. It is the highest level of award from The Institutes, and Marc seemed both surprised and very pleased to be the recipient! He commented that it's the students who do so well, he merely encourages them to take the tests. "You can't pass unless you try."

We are very proud of all three award winners and pleased that they could attend the meeting this morning!

Auto Insurance Codes

2011-11-16T10:00:00.000-05:00

We realize that not everyone has taken the time to explore the resources we've posted on our website, so we thought we might highlight some here on our blog.

From time to time, we get calls asking for the name of a company based on a company code. While we're more than happy to answer these calls, we do have links on our website to the Massachusetts, New York and New Jersey insurance company codes. While there may be other states that use auto insurance company codes, these are the three we get asked for most frequently.

These codes are codes that are assigned by the department of motor vehicles (or, in Massachusetts, by the Commonwealth Auto Reinsurers). They should not be confused with the National Association of Insurance Commissioners codes or with the codes that A. M. Best assigns companies. For one thing, the NAIC and AM Best assign company codes to more than just auto Insurance Companies.

If you're interested in finding the company name associated with an NAIC code, you can go to their consumer information source and look it up. You can also find out information on the company's financials and consumer complaints. If you're interested in recent Annual Statements, you can find that information there as well.

For A. M. Best Company Codes, you can go to the Company and Rating Search section of their website and look up a company by their A. M. Best Number (or by the NAIC number if you care to). Not only will it tell you the company name, but it will also provide you with contact information and, if you're a subscriber, related articles.

We hope that this information makes your research easier!

Insurance Library Annual Meeting

2011-11-14T10:00:00.000-05:00

This year's Insurance Library Association's Annual Meeting will be held on Tuesday, November 22, 2011. The meeting is open to all of our members (member companies may send a representative). If you'd like to attend the meeting or assign a proxy, you can email Jean Lucey, or fill out the form found here.

11-11-11

2011-11-11T11:11:00.001-05:00

Unlike Memorial Day, Veterans Day is designed to honor all of those in our armed services, not just those who died in service.

Though Veterans Day is a U.S. National Holiday, Britain celebrates Remembrance Day on the same day (both holidays began to honor the Signing of the Armistice at the end of World War I). We thought you might be interested in this link to Lloyd's During World War 1. Not only does it provide information on the many ways that Lloyd's was involved in the war effort (and honors those who lost their lives), but it has examples of telegrams sent shortly after the Armistice was signed.

Onward & Upward

2011-11-09T10:30:00.003-05:00

Sandra Glaser Parrillo, 2011 Insurance Professional of the Year Award Winner

Donald F. Vose, President of the Board of Trustees for The Insurance Library Association of Boston

I'm afraid this blog languished while we worked on the Education Fair in September and the Insurance Professional of the Year Event in October. November is suddenly upon us and we're shocked at how quickly our annual meeting is approaching.

I mentioned last year that after The Insurance Professional of the Year Award Ceremony it often feels like a new year around here (perhaps it's no coincidence that our event occurs in the same season as Rosh Hashanah). So I'm sure you'll pardon us as we reflect a little.

A lot has happened in the last year:

1. We've worked harder on maintaining our website and blog. We've started a LinkedIn profile for the library and we're exploring ways to make our library even more available electronically.

2. We've added more items to our adopt a book program, and to our wishlist (and we finally got the laptop we'd put on there several years ago!).

3. We held our first ever Education Fair (with a lot of support), and had our 10th Insurance Professional of the Year Award Ceremony (which included a lot of firsts as well).

4. We put on our first ever (though, not last) silent auction during the social hour at The Award Ceremony -- thanks to a lot of support for that, we raised about $6,300 for the library!

Some staff changes include:

1. Our Director, Jean Lucey, changing her schedule to working three days a week.

2. Our "other" Jean, Jean Osborne, increasing her hours to three days a week (we don't ever want to be short a Jean).

3. Meagan completing another two CPCU tests on her way toward earning the designation.

It really does feel like a whirlwind, but we are glad that you were here for the ride!

Dropping In

2011-09-23T10:23:00.002-04:00

In light of the satellite expected to fall to earth, there's an interesting article on slate about insurance coverage for falling satellites: http://www.slate.com/id/2304426/

Board?

2011-08-31T10:30:00.004-04:00

We're overwhelmed with preparations for two big events this fall. The first is our Education Fair,scheduled for Thursday September 8th. We'd love it if you stopped by the Library to explore some of our course offerings, get education counseling or just to take a look at some of our spruced up classrooms. We'll have refreshments and drawings for some great prizes as well as insurance-related items free for the taking!

We're also working on preparing printed invitations for The 10th Annual Insurance Professional of the Year Award Ceremony printed this week so that we can mail them out next week. We have 26 tables already reserved, leaving 9 still available (if you're interested, you should probably act soon!).

Since we’re so busy and I’m finally making a blog entry, you might think I would be popping in to discuss hurricane-related subjects-- a lively wind vs. water debate, perhaps. You'd be wrong though. I saw something interesting on the web and thought I would share it here for those who are interested. This spring, I wrote on earthquakes and one of the earthquakes mentioned was the one in New Zealand which damaged Christchurch Cathedral.

They've come up with a unique solution for an interim church. They're creating a cardboard cathedral. The architect has built similar structures in Japan, following their earthquake. You can read more about the solution here, here and here. I think (though I might be misunderstanding the model) that they'll even have stained glass windows. It's not a cheap solution, but it is supposed to last for a decade, at which point they hope to have a suitable replacement.

For those of you disappointed we didn't talk about hurricanes this time, I leave you with a link to this article. It reminds me of a scene from Low and Behold, an independent film dealing with claims adjusters in post-katrina New Orleans. There's a point in the movie where the main character attends a claims adjuster conference and the leader says:

I used to lay in bed at night and pray to God that he would bring a natural disaster on this country, a disaster so large as to bring massive property damage. No one would get hurt or die. But it would yield the largest claims the industry had ever seen.

The director said that he'd actually heard this speech given when he was training to be a claims adjuster but that no one believed him. Perhaps he wasn't making it up. . .

Still disappointed? How about this article from the New York Times which mentions:

While insurers have typically covered about half of the total losses in past storms, they might end up covering less than 40 percent of the costs associated with Hurricane Irene, according to an analysis by the Kinetic Analysis Corporation.

Tin, That's All?

2011-07-21T11:00:00.003-04:00

The first year I started at the library was also the first year the library hosted The Insurance Professional of the Year Award Ceremony (for a history of the award please refer to this post). It's with much pride that we've reached the 10th anniversary of this award!

It turns out that classically 10th anniversaries aren't anything particularly special (they're not golden, or silver, just tin or aluminum). It is a notable achievement for the library, though. This year is the first year that a person from the greater New England area has been selected to receive the award. It is also the first year the award has been given to a woman.

The Library is happy to announce that this year's winner is Sandra G. Parrillo, CPCU, President and CEO of The Providence Mutual of Providence, Rhode Island and its subsidiary Providence Plantations Insurance Company. Ms. Parrillo is very active in the insurance industry nationally, including in her role as Director and Chairman of The National Association of Mutual Insurance Companies (NAMIC), as well as in her local community. A brief biography may be found on our website.

If you'd like to join the library in a letter of congratulations to Ms. Parillo, you're welcome to "sign" a letter which will be printed in the October 14th, 2011 edition of The Standard by going to our website. You can also register now for a seat or a table for the October 21, 2011 event at the same time, if you'd like. The options are listed on the left side of the ecommerce section of our website under the title: Insurance Professional of the Year Award Ceremony Reservations. We will be sending out an official email announcement about the event next week followed by printed invitations sometime next month. We thank all of you for the continued support which has made the past ten years possible!

Back to the (Marriage) Future

2011-06-27T10:00:00.005-04:00

The last real blog post here discussed wedding insurance. In the course of another research project, I came across an interesting letter from the Department of Insurance in Lansing, MI dated April 9, 1931. The letter discussed speculation in marriage futures.

You have submitted to this Department a Specimen of a Contract. . . which
certificate has the form of an insurance policy. . . .The object of the
corporation, as expressed in its articles, are 'to encourage marital relations
by aiding prospective candidates for matrimony, to provide funds therefor and to
enter into contracts in relationship to the same in the state of Michigan, and
elsewhere in the United States of America and the Dominion of Canada.'

You request an opinion from this Department as to whether the proposed
contract is an insurance policy and therefore subject to the jurisdiction of the Insurance Department.

The marriage speculation insurance appears to have been set up like a fraternal benefit society. Members paid in and then received funds for their wedding once they got married. Unlike Fraternals though, the marriage contracts didn't seem to meet the criteria of insurance.

The Michigan Division's letter goes on to describe the definition of insurance citing case law and Couch on Insurance. It also makes clear that marriage "insurance" is not new, there was a case in Alabama on marriage insurance which found such a contract void (in this case the contract paid more the longer you postponed your wedding). Similar cases had the same findings in Pennsylvania, Indiana and Maine.

If you are interested in seeing the letter in full, please feel free to contact the library. We also have some information on the history of fraternal benefit societies in general.

Falling Off the Wagon

2011-06-21T10:49:00.002-04:00

Dear readers (if there are any left). I am so sorry I've failed to write for so long. There are lots of things currently in the works here at the library (stay tuned for updated information on the Insurance Professional of the Year Award Ceremony and an Education Fair!) and I got distracted from my commitment to keep this blog current.

Back when I made the commitment, I had said sometimes the blog posts would be light and merely mention some articles we found interesting. I should have at least kept up posting those light posts because when you stop blogging for awhile there's a pressure to come back with something big.

I have a post that was started back in May on wedding insurance, but other than that, I think we'll have to be content with light content. I promise something more researched by the end of summer though (any suggestions on areas of interest?).

As always, thank you for your continued support, of the library and this blog!

Get Me (and the Caterer) to the Church on Time

2011-05-04T14:28:00.007-04:00

Photo: Hugo Burnand/Clarence House
Found on The Telegraph Website

I know I'm (really) late to the party, but with William and Kate's wedding still on everyone's mind, and being three weddings into a seven weddings season myself, I thought it would be an appropriate time to discuss wedding insurance.

Clearly Lloyds thought so too since on April 26th they offered a somewhat humorous, but informative article on wedding insurance in light of the royal wedding. Closer to home, the Massacusetts Division of Insurance provides a consumer guide for wedding insurance.

Back in 2009, Rough Notes Magazine provided an outline of what wedding insurance covers. They mention more information could be found in their PF&M publication, which the library does have access to, if you're interested in more detailed research.

The Insurance Information Institute also offers helpful advice on wedding insurance on their website. They mention that you might not need all the coverage available in a stand alone wedding contract and to check with your credit cards and homeowners or other insurance to see what coverage would be available there.

If you're confused about what other insurance you already have which might be able to provide similar coverages to a stand alone wedding insurance contract, your insurance agent should be able to explain your coverages and what options are available.

Not Another Brick in the Wall

2011-04-20T11:00:00.001-04:00

I have to admit, I'm a little proud of the title of this blog post, mostly because I think of it as a double entendre. I plan on announcing an educational opportunity for you, specifically one that has to do with construction!

Next week you, dear readers, have the opportunity to attend a Builders Risk and Insurance Seminar or Nuts and Bolts of Contractual Liability (or both). These seminars are being lead by Donald S. Malecki and Greg Deimling of Malecki Deimling Nielander & Associates, LLC.

Donald Malecki may be well known at our library for his Additional Insured Book, but he's literally (co-) written the book on Builder's Risk. He is a prolific writer and one need only take a look at some samples from Malecki On Insurance (or order a subscription to see it all) to realize how important his contribution to insurance is. Both Mr. Malecki & Mr. Deimling were major contributors to the MCS-90 book a comprehensive text with no equal.

In addition to his insurance expertise, I will always think of Mr. Deimling as a super-hero because of his help in averting disaster one year when he joined us in stuffing almost 400 name tags before our big event. I mention this so you get a peek at their character as well. I consider Don Malecki and Greg Deimling insurance Superstars, in the best possible sense. Not only are they leading consultants working on analyzing and interpreting the confusing world of insurance, but they're approachable and eager to share their expertise. I sincerely hope you get a chance to attend next week's seminars; not only so you get to witness insurance greatness, but because of the invaluable knowledge you'll take away.

Plate Movement

2011-03-29T10:15:00.004-04:00

That's not exactly the kind of plate movement I plan on discussing today. As I mentioned last week, I planned on writing a post on earthquakes before I got interrupted by another snow storm. Luckily, because of the lag time before posting far more people have written on the topic of earthquakes and I can provide you with links for further reading. Just like the 2001 "summer of the shark" 2010 could have been called "the year of earthquakes." The number of earthquakes in 2010 (and so far in 2011) does not seem to be above average. You can look at earthquake data for the last decade from the U. S. Geological Survey for confirmation. According to the June, 2010 Reactions Magazine article, The $1trn Exposure "The number of earthquakes this year [2010] has been normal but the casualties and insured losses have not. Risk Modellers are asking where the next Mega quake could strike." UPDATE: This sentiment was re-affirmed today by the Wall Street Journal article: Swiss Re Expects Quakes to Become Deadlier, Costlier. The article goes on to provide some forecasting of the most vulnerable regions world wide. The region in Japan they thought most likely to cause severe damage (and casualties) was not the one where the current earthquake has hit. Wired Magazine e discusses this error in their article Japan Quake Epicenter Was in Unexpected Location. I believe if you asked the average person where they think the next big US-based earthquake would be, they would respond California. They wouldn't necessarily be wrong. Cascadia is listed as a "most vulnerable area" in the Reactions article cited above. Los Angeles is listed as a U.S. Megadisaster threat for earthquakes on an informative map that Risk Management Magazine published in March of 2010 (for more from this map, feel free to contact us, or stop by the library to take a look). George Santayana would be disappointed in those responses though, especially in this, the bicentennial year of the New Madrid earthquakes. According to Risk Management Magazine's Risk Atlas mentioned above, "recent research suggests that the [New Madrid] fault line may be more stable than ever, but FEMA has said that a 7.7 magnitude quake here could lead to 'the highest economic losses due to a natural disaster in the United States." The fault line affects Alabama, Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee but when it quaked in 1811 and 1812 it affected states even farther away. BestWeek, in a February 28, 2011 article said: "The area along the Mississippi River is no longer a sparsely populated area with the occasional log cabin. If a series of three major earthquakes were to strike that area today, it could cost an estimated $79 billion in insured property losses, according to AIR Worldwide." The article is accompanied by a colorful loss map illustrating the losses in millions for the New Madrid Seismic Zone. Of course, insured losses are different than total losses; this is especially true in the United States where flood and earthquake insurance are not included in the standard homeowners or commercial property policies. BestWeek published another article in their February 28, 2011 issue titled Costly Quake Covers Limit U.S. Policies. The article points out that 90% of the homeowners in New Zealand (the site of two earthquakes in the last six months) have earthquake insurance. New Zealanders attending a meeting on earthquake insurance, were shocked to find out that 90% of Californians do not have earthquake coverage. According to Advisen's front page news on Monday, The Wall Street Journal published an article examining coverage in the United States for major disasters like those in Japan. The article, entitled: Disaster Insurance: How Well Are You Covered, addresses some of the same concerns as those mentioned in the BestWeek article. Risk Management Magazine has an article in the March, 2010 edition titled After Haiti: The Future of Disasters. They end their article with this: "Catastrophes are just as possible domestically as they are abroad. The longer we go without taking the necessary steps to increase preparedness, the sooner we will have to stop calling these natural disasters and start calling them man-made catastrophes." Perhaps that's a bit sensational, but it does get across the point that natural disasters, especially earthquakes, require preparation on our part. The library stands ready to answer more in-depth questions about earthquake insurance, both for consumers and those in the industry. We have access to any of the articles mentioned in this blog post as well as statistical information on earthquake insurance and groups writing such insurance in various states. We even have some (though not a lot) of information on earthquake and other natural disaster forecasting. Please feel free to contact us if you're interested in any specific information.

Snow Business, Like No Business I Know

2011-03-21T14:08:00.004-04:00

It's snowing again here in Boston and, according to weather.com, it could snow again on the 27th. I don't usually complain about cold weather because I grew up in Alaska and I prefer the cold to the sweltering heat and humidity Boston can throw at you, but I am tired of winter. I left Alaska for a reason.

I planned on writing a blog post on earthquake risk in the United States, but I can't think of anything other than snow at this point. It's old news but in case you missed it AIR Worldwide announced in early February that the snowstorms which took place on February 1st and 2nd were projected to cost 1.4 Billion dollars. It was one of the largest storms across the country since the 1950s. The snow storm back in February wasn't as disastrous for us as the, infamous in these parts, "blizzard of '78." Estimated losses for that blizzard were about $350 million more than the losses AIR is projecting for this year's storm. In case you were interested in some background and visuals on the blizzard of '78, the National Oceanic and Atmospheric Administration put together a power point presentation for the 30th anniversary.

Clearly, today's snow flurries here in Boston don't compare with others we've faced even this winter, but I'm tired of snow. Isn't it time we should be facing risks from rain? I can't believe I just typed that since we just passed the 1 year mark for the flood The Library had in its basement which destroyed a number of valuable items. It required a week of 12+ hour days to save what historical items we could and we're still reminded of the flood daily as we look at the recovered items still waiting to be scanned.

On the other hand, it might be exciting to test the three new sump pumps we had put in after last year's extreme rain. I suppose I'll have to wait for those April showers, but what happened to the lamb March was supposed to go out like?

Six Degrees of Separation

2011-03-01T10:15:00.003-05:00

I missed my posts the last two weeks. The past week was such a blur it's been hard to catch up. I was hoping that one of the presidents had worked as an insurance agent or company man before taking on the mantle of leadership for our country so I could post on that; unfortunately, I found no evidence to that effect. Instead, I offer you a recent request and how it ended up interrelated (in my mind) with other recent topics we've discussed.

I was asked if insurance companies were allowed to use credit scores when giving homeowners insurance rates in Massachusetts. The following answer is posted on the Massachusetts Division of Insurance website under FAQ for homeowners insurance in response to a question that is NOT the same, but I think the answer still applies: "Unlike Massachusetts' auto insurance market, the homeowner insurance market is not take-all-comers. Insurers may decide to non-renew your policy or decline offering a policy as long as they do not base their decision on specific criteria outlined in our insurance laws (M.G.L. Ch. 175, section 4C)."

As far as credit reporting, Chapter 93 Section 51 seems to imply it can be used for insurance generally (see subsection 3 (iii)) and Chapter 93 Section 62 outlines other ways that the information can be used in insurance. Just to be sure that credit scoring wasn't considered unfair, I also checked the Massachusetts “UNFAIR METHODS OF COMPETITION AND UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN THE BUSINESS OF INSURANCE”regulation which does not mention the use of credit scores at all. You, dear readers, may remember this law from our mention of it back in our insurance rebating post. While all of those laws indicate that credit scores can be used for homeowners insurance, currently credit scoring is not allowable in Massachusetts auto insurance rating, according to regulation 211 CMR 79.

The use of credit scores for insurance rating is not a topic without controversy. I almost mentioned what a hot topic credit scoring for insurance rates was in our post on redlining. People have suggested that using credit scores is the newest form of discrimination. You can read a recent Rough Notes article, "Remain Calm All is Well" on it. That is not the first article on the topic though, Independent Agent, for example, had an article back in May of 2002.

The National Conference of Insurance Legislators (NCOIL) created a model act in 2002 "regarding use of Credit Information in Personal Insurance." It was last updated in 2009. As of 2007, 26 states had adopted the law. The model appears to allow the use of credit scores but:

prohibits an insurer from refusing to insure an applicant, insured, or other individual seeking insurance coverage because the person’s insurance score fails to meet or exceed a minimum numeric threshold, unless one or more other applicable underwriting factors independent of credit information are considered.

Massachusetts was not one of the adopters of the model, despite (or perhaps because of) the fact that this topic has cropped up almost every year in the last decade (we have The Standard and MassAgent articles to prove it). Massachusetts appears to still allow the use of credit scores in homeowners insurance, though, as we mentioned above it's prohibited it in the use of auto insurance rating.

The Massachusetts Attorney General's office as recently as the fall of 2010 was attempting to strengthen the anti-credit scoring regulations. They issued this report on it in December of 2009. Finally, I am not sure about the documentation of the claim, but according to autoinsurance.org, there are currently 46 states in which an auto insurer can look at your credit score and use it as a factor in rating, Massachusetts is one of the four states in which this is not legal.

As I learned researching a different request this week, Massachusetts has had unique auto insurance regulations almost since the dawn of auto regulation. According to Donald Hillman in his 1980 publication: Strategic Study in Support of Competitive Automobile Insurance Rating in Massachusetts, "In 1925, Massachusetts, after four years of legislative study, adopted the first compulsory auto insurance law in the nation. It was to be the only compulsory auto insurance law in the United States for the next 32 years." He goes on to discuss how Massachusetts introduced no-fault auto liability insurance in 1970:

This first-in-the-nation law radically changed the manner in which bodily injury claims were adjusted and paid. The no-fault law is the one example of undeniably successful lawmaking in the area of auto insurance in Massachusetts -- claims were reduced and premiums for bodily injury coverages fell accordingly.

Massachusetts's current stance on the use of credit scoring in auto insurance appears in keeping with its pattern of being in the minority (dare I say forefront) of auto insurance regulation.

2011-02-11T10:30:00.001-05:00

I mentioned in last week's post that I planned on discussing advertising in this week's post. I thought it would be appropriate because it would be following Super Bowl Sunday. While my husband appreciates the game, I tend to prefer the commercials in between. You'd think I'd know then that there are rarely insurance related commercials aired during the Super Bowl, but I didn't. After watching the entire three and a half hour show and not seeing a single insurance commercial, I turned to our library's journal index to answer some questions. What I found was fascinating.

It turns out (according to various articles from BestWeek in the last few years) that national insurance companies haven't advertised in the Super Bowl since 2007, and even then I believe it was only Nationwide who advertised. They had started a fairly new "life comes at you fast" campaign and premiered a new ad featuring Kevin Federline.

I did not take any marketing or sales courses in college so a lot of the considerations discussed in the articles had never crossed my mind before. Apparently some insurance companies aren't willing to spend the money for a super bowl ad because they're afraid they'll get lost in the shuffle of all the other ads. Other companies find that their branding is working so well, they simply don't need to spend the extra money. Usually the companies that do decide to advertise in the superbowl are, like Nationwide, looking to launch a new brand.

According to a January 2006 Best's Review article (A Brand New Approach: A Legend in Its Time) on Auto Insurance branding, "In the world of advertising, the insurance industry traditionally has had a low profile, said William Pitt, senior advisor with HawkPartners, a Boston-based marketing consultancy. "

Mr. Pitt cites GEICO and Aflac as being different than other insurance companies who don't use consistant branding. It's certainly true that GEICO and Aflac have quite a following. You can buy a stuffed duck that quacks "AFLAC!" In 2007, there was a short lived dramedy based on the GEICO cavemen and currently you can get GEICO ringtones as well as other gecko gear. Since GEICO has three different campaigns running simultaneously, I'm not sure that can still be called "consistent branding." Regardless, it looks like those two companies aren't alone anymore.

Auto Insurance Report wrote an article in their August 24, 2009 edition entitled: "Going with the 'Flo' Progressive Makes Progress Toward Profitable Growth." In the article they say:

And count us as a skeptic won over regarding the company's advertising campaign. With the now-ubiquitous 'Flo' burrowing into the nation's consciousness, it appears the marketing is finally working. . . While we're not ready to annoint Progressive as a member of the league of Extraordinary Insurance Advertising Gentlemen, which includes GEICO, Allstate, State Farm, esurance and a few others, Progressive is no longer at the very back of the pack.

In fact, Flo has become so popular, Progressive even has a section of their website dedicated to showing fans how to dress like her, right down to the "tricked out name tag."

Allstate has also followed the humorous spokes-person trend. As of June, 2010, they started a "mayhem campaign" You can read more about it in The New York Times. There are a number of ads (they even focused a whole series on football -- just not the Super Bowl) but below, you'll see the one where Mayhem is introduced.

While we are not trying to endorse any particular insurance company, we hope that you found this post somewhat entertaining. We do have far more data on advertising and insurance companies, including some information on the use of social media, advertising expenditures by insurer and how independent insurance agents can "combat the GEICO Effect." Please feel free to email or stop by the library to see what we have to offer on this, and other topics.

All the News That's Fit to Link

2011-02-04T10:30:00.004-05:00

We wanted to draw your attention to an interesting article in the New York Times today. It discusses concerns of the Tuscon Survivors about the cost of their medical treatment.

In other current events, there are a few articles and blog posts out there on Travel insurance in light of the events in Egypt. A Wall Street Journal Blog posted a reminder about civil unrest exclusions in travel insurance on February first. The Seattle Times had an article on how policies vary on canceling and re-booking trips to Egypt on the second. Also on the second, the Budget Travel blog posted about how much travel insurance can help in a situation like Egypt's. The most recent article we found on the topic is actually dated tomorrow (it's from Australia). The Australian is reporting that an insurance company is insisting it is still safe to fly into Egypt (and thus is denying travel insurance claims).

Next week, we'll be back to discuss insurance ads (seems appropriate after super bowl Sunday)!

Redlining

2011-01-28T10:20:00.002-05:00

Last week I promised a post somewhat related to Martin Luther King jr. and the Civil Rights Movement. There is so much information available on the topic I had in mind that it's been hard to provide a concise and insightful post on it. I suppose that's a great argument for why you should be a member of the library -- then you could borrow all of our resources and become an expert on the subject yourself!

When I tried to come up with an insurance topic related to the holiday, the first one that came to mind was Redlining. According to the IRMI Glossary of Insurance and Risk Management Terms it is:

An underwriting practice involving the rejection of a risk based solely on geographical location. This practice is prohibited under the laws of most states as it tends to be discriminatory to minorities.

The practice of redlining began in the 1930s though the term wasn't used until the 1960s (if wikipedia can be believed). It literally refers to the red lines that used to be drawn on maps used for property loans. Below you can see an example of a similar map of Philadelphia:

If you click on the map, you will be transferred to the UPenn website on redlining where you can click on different locations on the map and zoom in to see what it says (this is all courtesy of the Free Library of Philadelphia Map Collection). The insurance industry adopted a similar stance to that of banks and as a result it was difficult to get insurance in certain urban areas. In 1968 the President's National Advisory Panel on Insurance in Riot Affected Areas examined the ill effect that not providing affordable insurance just based on locality was having on communities. A 1979 publication entitled Insurance Redlining: Fact Not Fiction, describes the issue by saying:"The problem of insurance unavailability is not one that randomly affects isolated individuals but rather strikes at residents of older urban communities. Insurance unavailability threatens the viability of entire communities."

The result of the 1968 examination was the establishment of Fair Access to Insurance Requirements or FAIR plans. As Gregory D. Squires says in Insurance Redlining: Disinvestment, Reinvestment, and the Evolving Role of Financial Institutions, "I have often referred to the issue of insurance redlining as the ugly duckling of the fair housing movement." The Fair plans established in the early 70s required inspection of properties to determine their risk level and provided minimal standards of insurance for hard to place risks.

In the years that followed that initial study, many states also adopted anti-redlining legislation. "The State of Missouri enacted one of the earliest antiredlining laws" in 1977, according to Insurance Redlining: Fact not Fiction. The National Association of Insurance Commissioners added an antiredlining section to their recommended Unfair Trade Practices Act in 1978. Their reasoning, explained in the 1978 NAIC proceedings was that

It is the position of the NAIC that the insurance industry has been perceived
to be redlining, and the perception can only be altered by implementing such
practices as stating exact reasons for rejections, cancellations and
nonrenewals. The insurance industry should also abandon underwriting
"short-cuts" such as refusing to accept an application solely because the
applicant was refused coverage by another carrier.

While I would like to report that the threat of redlining has been completely eradicated, there have been well publicized cases regarding redlining filed by the NAACP as recently as the 90s. Still, I hope that Martin Luther King would be proud of the progress that has been made.

If you'd like more information on the history of redlining, we have the items cited in this post, as well as Regulatory Challenge Business Principles Versus Social Pressures (an analysis of property and casualty insurance regulation) by Conning and Company; Problem of Property Insurance In Urban America, a Hearing Before the Subcommittee on Housing and Urban Affairs; Full Insurance Availability: Department of Housing and Urban Development and Fairness and Balance in Residential Property Insurance: A National Survey of Homeowners Attitudes. We've also got journal articles discussing redlining.

What Are You Doing For Others?

2011-01-17T10:15:00.001-05:00

We hope that you're out volunteering in honor of Martin Luther King Jr. Day. We'll just assume that's where you are and that's why you won't have time to read a blog post today anyway. We promise an MLK appropriate post by the end of the week.

Insurance Rebating

2011-01-11T10:15:00.005-05:00

I have mentioned before that I like sales. I brave the crowds on the day after Thanksgiving, I Google coupon codes before buying anything online and I cut upc codes off boxes and send away for my manufacturers rebates. There's one kind of rebate I don't take advantage of though, and that's insurance rebating; it's illegal.

Recently, we were asked what the definition of rebating is in Massachusetts. The International Risk Management Institute (IRMI) has a general definition in their Glossary of Insurance and Risk Management Terms. As far as I know there isn't an exact definition in the Massachusetts code. There are guidelines to help determine whether something is rebating. For example, the law doesn't address allowing customers to pay their premium via credit card although they may get airline miles or other incentives from their credit card company by doing so. As the incentive is not being offered by the agent, but by the credit card company, this may well not be considered rebating. The law doesn't specifically say that you can't offer Red Sox tickets to customers who go with a particular insurance company, but you can't. It's considered a special inducement which is prohibited. If a specific issue arises in this context, an opinion can be requested from the Massachusetts Division of Insurance.

Chapter 176D entitled: UNFAIR METHODS OF COMPETITION AND UNFAIR AND DECEPTIVE ACTS AND PRACTICES IN THE BUSINESS OF INSURANCE covers this topic. Specifically section 3 subsection 8:

Rebates: Except as otherwise expressly provided by law, knowingly permitting or offering to make or making any insurance contract, including but not limited to a contract for life insurance, life annuity or accident and health insurance, or agreement as to such contract other than as plainly expressed in the insurance contract issued thereon, or paying or allowing, or giving or offering to pay, allow, or give, directly or indirectly, as inducement to such insurance or annuity any rebate of premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract; or giving, or selling, or purchasing or offering to give, sell, or purchase as inducement to such insurance contract, or annuity or in connection therewith, any stocks, bonds, or other securities of any insurance company or other corporation, association, or partnership, or any dividends or profits accrued thereon, or anything of value whatsoever not specified in the contract.

Massachusetts was the first state to enact an anti-rebating law (it was promulgated in 1887, coincidentally the same year our library started). The current Massachusetts law is based on the National Association of Insurance Commissioners model "Unfair Trade Practices Act." Massachusetts is not the only state to have adopted an anti-rebating stance. At one point, every state had an anti-rebating law (according to the 1946 NAIC Proceedings). Currently, most states still have insurance anti-rebating laws.

Some states have looked at the constitutionality and effect of the laws, especially since a number of consumer groups have questioned their use. Thus far, the only two states that I can find without anti-rebating laws are California (in 1988 a vote for proposition 103 repealed the anti-rebating law they had previously) and Florida repealed theirs in the 1980's when their courts ruled it unconstitutional.

Back in 2006 Massachusetts had an informational Hearing on "marketing practices" but doesn't appear to have followed up with a bulletin or significant change to their law. More recently, New York felt that their anti-rebating law was not descriptive enough and in 2009 they issued a circular letter "to provide guidance and clarification to licensed insurance agents and brokers (collectively, “insurance producers”) as to what kinds of services (often referred to as “value-added” services) may be provided to insureds or potential insureds without running afoul of the rebating and inducement provisions set forth in the New York Insurance Law." Insurance anti-rebating laws continue to be a topic of interest and if anything groundbreaking happens regarding them, we'll try and post an updated blog post on them.

Truth is Better than Fiction

2010-12-29T10:15:00.001-05:00

In this case, the truth is the library has started an insurance fiction collection. The University of Connecticut School of Law is already ahead of us in this respect, but we're starting to play catch up. Our Director, Jean Lucey, has wanted to start a fiction section since Sue Grafton's mystery series starring Kinsey Milhone, former investigator for California Fidelity Insurance, came out. Last Christmas she got her wish when all of the "alphabet series" was added to the collection (U is for Undertow had just been published).

This year, a few more books were added to the collection including, The Pale Green Horse, Horse Sense, Bet Your Life and Bringing Back Eight: A Novel about Medical Malpractice on Trial. We've also added our first dvd to the collection, Memento. We encourage you to come in and read or check out some of our newest additions.

If you have suggestions for the fiction section, we welcome your feedback (either via a comment on this blog post or email). We also welcome donations either to our fiction section or to our general collection. If you're looking for ideas on books that we're especially interested in, please peruse our amazon wish list.

The Whole Pie

2010-12-21T10:15:00.001-05:00

The Massachusetts Attorney General publishes a Report on Professional Solicitations for Charities annually. This year's report has caused a stir (at least in the Boston Globe) since it reports that charities received only 43% of the money that was raised; the rest went to the professional fundraisers.

Last year New York's Attorney General brought a case against four professional fundraising telemarketers who employed deceptive and unfair tactics. These deceptive tactics included in some cases lying about how much of the money the charity would receive. It turned out, on average, these professional fundraisers were keeping 76% of the money they raised.

All is not lost though, there are various ways that one can determine the amount a charity will receive. Sometimes this information is right on the charity's website. You can also ask for the information from the telemarketer in writing. Finally, checking to see if the fundraiser is a member of the Association of Fundraising Professionals can help. This association has a code of ethics to which they ascribe.

Another way to determine generally how much of the money you give to a charity goes toward furthering their mission is to check a website like Charity Navigator. It will give you and idea of the charity's organizational efficiency, organizational capacity as well as an income statement usually including how much the ceo is paid.

We thought that this might be a timely post considering the recent series of Boston Globe articles on the topic. We want to assure you that our library does not use professional fundraisers. As we mentioned in a past post, we are a non-profit and there are a number of ways that you can donate to the library before the end of the year. The most direct way is probably through our annual fund, which you can donate to by clicking here.

Burning Interest in Punitive Damages

2010-12-15T10:52:00.008-05:00

In Massachusetts yesterday a jury awarded 71 million dollars when they found a tobacco company liable for the death of Marie Evans. The full story can be found in the Boston Globe, among other places. It turns out that the tobacco company in question, "Lorillard had never lost a case brought by an individual before yesterday" While the tobacco company is appealing the case, there is speculation that more cases may follow as a result of this one.

Apparently "the verdict sets up a second phase of deliberations in which the jury could also award Evans’s estate and family punitive damages, which often are a multiple of the amounts awarded in the compensatory phase." Insurance coverage for punitive damages is actually an interesting topic. By interesting, I mean it is a topic that is worthy of many articles full of discussion as well as a few books. Clearly we don't have the space to explore all of the ramifications here in a little blog post, but a section from The Thomson West Publication: Punitive Damages Law and Practice by John J. Kircher and Christine M. Wiseman sheds some light on how convoluted a topic it is.

The question of insurance coverage for punitive damages continues to plague the courts, insurers, and insureds. The trend appears to favor finding coverage, but the decisions have not persuasively decided the issue. In fact, they have more recently enhanced the controversy by positing additional arguments both in support of and in opposition to coverage. (pp 7-38-7-39)

They go on to discuss the reasoning behind punitive damages and explore whether insurance coverage hinders those motives:

In most jurisdictions, punitive damages are intended to be awarded not to compensate the injured, but to punish the wrongdoer and to deter the wrongdoer and others from similar egregious conduct. Once it is determined that punitive damages are covered by the policy terms, courts then face the issue whether coverage would frustrate the public policy involved in the punishment and deterrence considerations of the punitive damages. (pp 7-42-7-43)

If you're interested in more information on punitive damages or products liability, please feel free to email the library with your specific question or stop by and check out our collection.

Vertically Challenged

2010-12-09T10:15:00.001-05:00

We noticed in the stats section of our blog, that some people had happened upon our blog using the search terms "vertical liability." Turns out we're third from the top on the Google search for that term because of our brief post on products liability where we mentioned that we had vertical files with subject information.

Unfortunately, I am not sure exactly what the searchers were looking for. The term vertical liability is not, as far as I know, standard language in insurance. One possibility for what might be of interest is supply-chain liability. In other words, what is the liability for the person up or down the chain if there's been a loss at some point in the chain. While I am sure we could provide more information on the topic, if pressed, it seems like the best plan is to try and avoid losses like this in the first place. As it says on the Risk and Insurance Management Society website: "supply chain management can stop supplier issues from becoming your own." To this end, Risk Management Magazine published an article in their April edition titled: How Spend Analysis Can Reduce Supply Chain Risk: Domino effect They also had a great article in August of 2008 entitled: Understanding Supply Chain Risk which included helpful flow charts.

Another possible topic of interest might have been vertical exhaustion of limits which has to do with the interaction of primary policies and excess or umbrella insurance policies. Vertical exhaustion of limits is described in a July 2002 article in Defense Counsel Journal as such: "vertical exhaustion allows an insured to seek coverage from an excess insurer as long as the insurance policies immediately beneath that excess policy, as identified in the excess policy's declaration page, have been exhausted, regardless of whether other primary insurance may apply." It turns out that vertical exhaustion of limits is actually somewhat controversial. Most case law appears to support horizontal exhaustion of limits, which requires exhausting the limits of ALL primary insurance which might apply before an insured can turn to his excess policies. The Defense Counsel Journal article described above and entitled Excess-Primary Insurer Obligations and the Rights of The Insured by Thomas M. Hamilton and Troy A. Stark addresses this issue quite well. For more up to date information on the topic, you might try getting your hands on a Donald Malecki article from the December 2008 edition of Malecki on Insurance entitled Horizontal Versus Vertical Exhaustion of Limits (found in a subscribers forum issue). He provides case law from 2007 and 2008 on the topic as well as his expert opinion.

While we'll continue to look at the stats for possible areas of interest, we also welcome suggestions for future blog posts. You can email the library or post a comment!

More Holiday Fire Talk

2010-11-30T10:15:00.004-05:00

We were sort of a killjoy when it came to Thanksgiving. We're back to talk about Chanukah which starts this week (sundown on the 1st if I read my calendar right). You're probably thinking we'll harp on how dangerous frying food is, or how having 9 candles burning near wrapping paper is a definite no-no. You'd be wrong though. What we have to talk about today is only tangentially related to Chanukah.

Recently I was looking at the definition of fire in an insurance glossary (Rupp's Insurance and Risk Management Glossary, 2nd edition for those of you who don't follow the link). I thought it was very interesting that the glossary differentiated between friendly fire and hostile fire especially since I had really only heard the term friendly fire in regard to war.

In insurance terms, Chanukah candles would epitomize friendly fire. They are set intentionally for beneficial purposes and (it is hoped) remain within their intended confines. Insurance does not cover friendly fire unless it spreads to unintended materials (in other words, becomes hostile).

If you are yearning for more information on fire definitions, you'd probably like to know that most fires caused by modern Chanukah celebrations would be considered "class a fires," fires involving solid combustibles and best put out using water or class a fire extinguishers. Had the oil lamp at the original Chanukah spread beyond the proper confines, it would have been a "class b fire," a type of fire involving flammable liquids (oil) and requiring carbon dioxide or a class b fire extinguisher to put out.

My foray into the insurance glossary section of our collection led me to an 1886 book called Harris's Technical Fire Insurance Dictionary. As you may know, our library began in 1887 as a fire insurance library (we didn't add casualty insurance to our collection until 1920 and it wasn't until the 1970s that we broadened our collection to include life and health insurance). This means, that the book was part of our very early collection housed in this room:

(taken from the 1923 edition of The Insurance Index)

And carefully watched over by a librarian following these rules:

A larger version of this can be found by following this link.

Harris's Technical Fire Insurance Dictionary has many interesting entries. The preface states:

This book, comprising in a condensed form many notes and observations made by the Author during a long and very busy experience as Surveyor, Inspector and Branch Secretary, has been written mainly with the view of drawing attention of Fire Insurance Officials and Agents to important points connected with matters of survey, and general practice and to the many dangers arising not only during processes of manufacture, but also from the crowded character of risks; from spontaneous combustion; and from other sources too numerous to mention.

Yes, all of that is one sentence, and also the first paragraph of the preface! I love that it includes this phrase: "comprising in a condensed form. . ." leaving me to wonder what a fully expanded form would look like.

My favorite entry in the book though, is the following:

FIRES, Refreshments at: Bills for expenses of this kind require very careful scrutiny, and in no case should they be paid when refreshments have been given away indiscriminately, or without proper authority. In no case where publicans throw open their houses should any payment be authorised by the Agent. See also FIRES, Assistance At.

If you are as charmed by this book as I am or there's someone on your holiday list who you think might be taken with it, feel free to contact us about the possibility of adopting the book as part of our "adopt a book" program. While the book is not in terrible shape, it could use some loving care to bring it back to its former glory.

Black Friday

2010-11-26T10:11:00.008-05:00

While I am one of those "shop through the year for holiday gifts" people, I admit I also get up to face the throngs on Black Friday. I would hate to be six days into those 8 crazy nights or stuck on December 23rd (yes, I celebrate both holidays) praying to the postal gods that the shipment will make it in the (st.) nick of time time.

Because today is such a huge shopping day for so many people, I thought it would be an appropriate time to let you know how you could remember the library while doing your holiday shopping. We have three main options for gifts to the library.

The Annual Fund is where general monetary donations throughout the year go. The money is spent on up-keep of the library as well as focusing on one or two projects for the year. Companies and individuals who donate to the annual fund get their name published in our newsletter (we're a non-profit so your donation may also be eligible for a tax deduction -- we're not tax experts though). This spring, the library had a flood so a good portion of the Annual Fund money was spent helping us recover.

Another way of supporting the library and its collection is through the "Adopt A Book Program" which provides for preservation of our historical publications and documents. The money donated goes toward a specific item --you can read some background about the books and look at them online in their tattered state to pick which one you want to adopt. We make sure a personalized book plate is put in the front, so users know whose generosity ensured future use of the material. The book plate can be donated in honor of someone in case you want to buy it as a gift for someone else. Your recipient can come into the library any time they want and admire the book-binder's handiwork and their name emblazoned on the inside cover.

Finally, the library has an Amazon Wishlist. While you're completing your other shopping on amazon, you can click over and skim the list. If anything catches your fancy, you can simply add it to your cart with the rest of your purchase and Amazon should know to send it to us. You'll notice there are items on the list for general office upkeep. We're currently using the 2004 version of Quicken and would love to upgrade to the 2011 version. We also have a laptop computer on the list. Our instructors muddle along on our current one which hasn't been replaced in a number of years and no longer has a working CD-Rom drive. As you would expect, the rest of the list is filled out with books. Many of these books have been requested by patrons or are for very specialized areas of insurance interest but aren't in our budget. If you find something that falls within your particular area of interest, we'd love it if you'd donate it to our library so we could share it with many more people.

We appreciate the many ways in which individuals and companies show their support for the library and hope that this information makes that support easier.

If You Can't Stand the Heat. . .

2010-11-18T10:15:00.005-05:00

Not to be a debbie downer, but according to the National Fire Protection Association, "Thanksgiving is the peak day for home cooking fires." They have been proclaiming this on their website since at least 2006 (prior to that it appears that they warned of cooking fires in general during the holidays). The U.S. Fire Administration has some interesting facts posted on their website regarding home cooking fires. These facts were gleaned from a co-sponsored study with the NFPA. Highlights of the list are:

Males face a disproportionate risk of cooking fire injury relative to the amount of cooking they do.

Unattended cooking is the single leading factor contributing to cooking fires.

Many other cooking fires begin because combustibles are too close to cooking heat sources.

More than half of the home cooking injuries occur when people try to fight the fire themselves.

Thanksgiving is still a week away so hopefully, you can follow some of these tips to prevent a home cooking fire and injuries. The NFPA has a handy printable sheet of tips for home cooking fire safety. And this helpful one page document on Thanksgiving Safety Procedures:

The Home Safety Council also has a convenient list of ways to prevent fires and fire injuries. Most of the fire safety tips are pretty common sense.

Watch food at all times when you're cooking.

Don't leave the house if you've got something in the oven or simmering.

Don't cook when you're drowsy.

Wear clothes that are close fitting so they don't accidentally ignite.

Remove any combustible items from around the stove (eg: don't leave oven mitts near any burners).

Keep your cooking area clean. Do not let grease build up on the range top, toaster oven or in the oven.

Keep a lid handy to slide over a pan to smother a fire that might start.

If you know what kind of fire you're dealing with, you can try to stop it (bearing in mind that more injuries occur when people try to fight the fires).

Grease Fires:

Should you have a grease fire on your stove top, smother the fire by sliding a lid over the pan and turn off the stove top. Leave the pan covered until the pan cools completely (opening the pan to check on it allows oxygen in which can re-ignite the fire).

Never put water on a grease fire or use a multipurpose fire extinguisher on a pan fire, as it can spray or shoot burning grease around the kitchen, actually spreading the fire.

Never attempt to carry a flaming pan across the kitchen.

Oven Fires:

Turn off the heat and keep the oven door closed.

Never open the door until the fire is completely out (allowing oxygen in can re-ignite the fire).

Microwave Fires:

If you have a fire in your microwave, turn it off immediately and keep the door closed.

If you can safely reach the outlet unplug the microwave oven.

Never open the door until the fire is completely out (allowing oxygen in can re-ignite the fire).

Have the microwave oven checked and/or serviced before being used again.

This is by no means an exhaustive list of cooking fire information. While we are not experts on fire safety, we have tried to compile some of the basic information here and provide you with sources (NFPA, The U.S. Fire Administration and the Home Safety Council) that can further your research into this topic. Remember, the most important advice regarding fighting kitchen fires is, When in doubt, just get out! Close the door behind you and call the fire department from outside.

We here at the library hope you have a happy and safe Thanksgiving holiday!

Annual Meeting Recap

2010-11-17T13:00:00.001-05:00

This year's annual meeting was fairly eventful. We said a sad farewell to several of our trustees. Trusting that they'll remain stalwart library supporters.

Paula Gold Vice President and Chief Regulatory Counsel for Plymouth Rock Assurance, has been replaced by Charles (Chuck) C. Hewitt, III Executive Vice President of Guy Carpenter.

John Donohue CEO of Arbella has been replaced by Jim Hyatt, also of Arbella. In June, Jim Hyatt became the Vice President of their personal lines group.

Philip J. Edmundson, CEO and Chairman of William Gallagher Associates, who was brought on as an associate treasurer mid-term 1989 and then as a full board member as of the November 1989 meeting, also passed the torch. Patrick J. Veale, President of WGA, has taken Phil's place (he brought up some excellent points during the meeting and we're eager to see what other ideas he brings to the board).

Though his term was not up, Josiah D. Hatch, president of H. R. Hatch Insurance Agency, has stepped down. He was a special appointment to The Board in December of 1995. The Board voted to make him a Trustee Emeritus for all of his hard and exceedingly productive work over the past 15 years. A new Trustee will be appointed to fill Josiah's place.

Other changes to the board included the election of a new Board President, Donald F. Vose Vice President of The Andover Companies. He seems eager to become familiar with all of the committees and has already sat on an education committee meeting.

A good portion of the meeting was also devoted to discussing the many Massachusetts and New Hampshire insurance continuing education classes which the library provides and the future of those classes. This included highlighting our foray into webinars with "Coverage Review of the Business Auto Policy" slated to start in January. See our website for current and upcoming class listings!

The Frank W. Humphrey Award

2010-11-16T14:23:00.008-05:00

The Frank W. Humphrey Golden Anniversary Award was established by Maurice H. Saval (after whom our education arm is named) in honor of Frank W. Humphrey, his mentor. Mr. Humphrey was at the agency Boit Dalton & Church, later Frank B. Hall & Company and now Aon Risk Services of Massachusetts. The prize was first awarded to commemorate Mr. Humphrey’s 50th year in the insurance business and is intended to be a special tribute to his contribution to our industry by his guidance and assistance to young people entering the business.

The winner each year is chosen from among those students who have successfully completed the course in Property and Liability Insurance Principles taught by Joe Sciacca. The student with the highest grade on the national exam that year earns the award. The presentation each year takes place during the Library's Annual Meeting.

This year's winner was Michelle Mozzicato from Crum & Forster. Michelle Mozzicato has worked at Crum & Forster Insurance for the past 11 years. She began her career with C&F as an Executive Assistant, and held that title for nine years. She was promoted to an Operations Supervisor in 2008, and most recently promoted to Operations Manager in 2009.

Prior to Crum & Forster Michelle was an Executive Assistant at BankBoston for 14 years. Michelle is married with two teenage boys, and resides in Stoneham, MA.

The picture below of Joe congratulating Michelle was taken by her husband at this year's meeting. You can expect more information on the annual meeting in tomorrow's blog post!

Joseph Sciacca & Michelle Mozzicato

A Review of Library Reference and Research Services

2010-11-09T10:15:00.003-05:00

We are poised and prepared to help with your reference and research questions in the field of insurance. Often we are asked what the difference is between a reference question and research. While we've answered this question in several member newsletters over the years, we thought it would be good to discuss it one more time.

“Reference” inquiries are those which are readily answered and do not require us to set aside time beyond 15 minutes or so. They are generally quickly addressed through reference books or our journals index and–if we’re lucky–are questions we’ve answered for someone else before and remember! Most consumer questions would fall into this category, but a number of member questions are considered reference as well.

“Research” inquiries, on the other hand, are not so straightforward --these may involve somewhat arcane or historical subjects. Research is differentiated from reference by the scope or nature of the inquiry, the time required to do the work, and the intricacy of the subject. These requests require a librarian’s commitment of time and call for us to apply our thinking skills to formulate a plan of attack.

Any request being used for business purposes (as opposed to a consumer or student inquiry) by a non-member automatically incurs the research charge. On the other hand, library members may ask a variety of reference questions without incurring any charges beyond the normal document delivery fees. When we tip into the research mode, though, we charge members $80/hour and non-members $110/hour. An added benefit to membership is that research requests from members are completed before any non-member research is undertaken and they can pay the research fee after the work is completed, while non-members must pay up front.

We hope that this clears up some of the confusion regarding reference vs. research! For more information on other member benefits, you can go here.

We'll Trade

2010-11-05T09:00:00.000-04:00

We'd like to take this opportunity to share with you some teaser photos from The Insurance Professional of the Year Award Ceremony (all photographs courtesy of Emily Photography). In exchange for the pictures, we'd love to get 1,000 words (we'll settle for your two cents -- we are a non-profit after all).

As mentioned in our most recent newsletter, we're interested in people's memories and reactions to this year's event. Any suggestions for next year's event would also be welcome including recommendations for possible nominees (though we can't promise that they'll win). Please post your responses in the comments section below!

Michael J. Sabbagh, 2010 Insurance Professional of the Year Award Winner

Name Tags

Acceptance Speech

Presentation of the Portrait (provided each year by Commonwealth Auto Reinsurers)

Award Winners Past and Present

(from left to right)

Daniel J. Johnston, 2006 winner

William F. Hofmann, III, 2002 winner

David J. Lane, 2004 winner

Richard W. Brewer, 2009 winner

Michael J. Sabbagh, 2010 winner

John K. Golembeski, 2007 winner

Ralph "Buddy" Iannaco, 2005 winner

John B. Connors, 2003 winner

Not pictured: Ronald Mariano, 2008 winner

Annual Meeting

2010-11-01T10:15:00.002-04:00

Following close on the heels of the Insurance Professional of the Year Award Ceremony every year is the Annual Meeting of the Association. This year the Annual Meeting has been scheduled for Tuesday, November 16, 2010. All members of the Insurance Library are encouraged to attend (as an incentive there is a light breakfast served at 8:00am) and hear about current initiatives at the library, take a look at the library budget, and hear about new library business.

If you are a member and are unable to attend, please feel free to fill out the proxy form found here.

We hope to see you in a couple of weeks!

Products Liability Vertical File

2010-10-27T09:18:00.003-04:00

Look two posts in one week! Remember when I said we might pop in with something brief but of interest? Here we are. The library has a number of "subject files" in our collection. These are hard copy files where we put news clippings, brochures, pamphlets etc. on various subjects related to insurance.

Today, The New York Times had an article that will likely end up in our products liability file. They also had this lovely graphic showing big settlements in drug cases:

Source: New York Times 10-27-10

New Year's Resolution

2010-10-25T09:23:00.004-04:00

When you're in school you follow the academic calendar, with the year starting in September. When you're in business your year starts with the new fiscal year. Here at the library, it's not official, but I feel like the year starts again after The Insurance Professional of the Year Award Ceremony is over (I might be the only one here who feels that way).

We just completed another busy start to our fall season and had a very successful (we think) event on Friday. So I feel it is time to make some new resolutions about our coming year. I vow that the library blog will no longer sit sadly neglected. We will attempt to post at least once a week, if not more.

While I cannot promise that each post will be long and descriptive, we would like to see this space be a place where we discuss current happenings at the library and in the insurance field as a whole. It might be that we just pop in and mention a great article in the New York Times that describes Insurance Exchanges (with a helpful image for clients); that we announce that the library has started an insurance fiction section (we have the entire set of Sue Grafton's Kinsey Millhone Mysteries); or we might ask you to respond with suggestions/comments on events and offerings from the library.

Did You Miss Us?

2010-01-14T16:33:00.007-05:00

The blog went on a short sabbatical last month. Between holiday closings and staff vacations, the library was busy just keeping up with requests!

Speaking of requests, The Library gets a number of interesting requests each year. We highlight some of the requests in our newsletters each quarter and provide a number of them online in our Q & A section of the website. But did you know that the library was featured in Star Magazine December 29, 1987? That's right, On the Front cover is "Jeane Dixon Predicts for 1988" and Bruce Willis and Demi Moore were hot honeymooners (not to mention Michael and Bubbles, and Charles and Di) and inside is an article entitled Wild & Wacky Insurance Claims for which we provided the fodder.

This week an instructor was asked what type of policy insured Liberace's hands and Bette Grabel's legs. He replied that it was a surplus lines policy, probably a disability policy in particular. Slate.com discussed just that three years ago when Mariah Carrey also apparently insured her legs.

Perhaps, considering all that's gone on in Haiti in the past week or so, you think this blog post is full of fluff? Maybe you'd like answers to more pressing questions? Are you wondering about insured losses in Haiti? According to a National Underwriter article citing AXCO Insurance Information Services, Haiti is "one of the smallest markets in the Americas with a total non-life premium income of just under $20 million." To put that number in perspective, total non-life direct premiums earned in the state with the lowest dpe,Vermont, is 1,094,361,000 (according to the NAIC 2008 Market Share Report by State and Countrywide) or nearly 55% more.

Insurance Journal has an article that does bring some hope to the situation, at least as far as re-building efforts. Haiti is a member of The Caribbean Catastrophe Risk Insurance Facility (CCRIF) and it appears they will give about 8 million dollars to Haiti after a 14 day waiting period so they can hurry the process of rebuilding along. National Underwriter cites Eqecat as saying the property damage is in the hundreds of millions.

Every little bit does help, though and those in the insurance industry have not neglected Haiti. According to another article by the National Underwriter, many companies have sent donations to a number of relief organizations over the last week. The Insurance Industry Charitable Foundation, gives details on at least four of the donations. The CPCU Society has also set up a matching program for individual CPCUs and Chapters of up to $25,000 for the Clinton/Bush Haiti fund.

If you'd like to contribute to help Haiti, there are many organizations out there ranging from rebuilding projects, to health and human welfare organizations, far too many to list. The FBI issued some guidlines to make sure you donate to reputable organizations.

Nonprofit

2009-11-04T13:53:00.007-05:00

While the library has always been a nonprofit organization, the last year or so has been non-profitable for many across all business sectors. At a national meeting of insurance educators, it was revealed that most of the schools experienced a 20% or more drop in enrollment. This was attributed to employers being less willing or able to pay for education and employees, unsure if they will still have a job, not being willing to pay for the education and hope for reimbursement when they've completed it.

We have had several individuals and firms drop their memberships, despite how much more cost-effective it is to leverage the library's many subscriptions instead of having to subscribe to them separately. One member told us that they had not renewed their membership "for budgetary reasons, i.e. the evil geniuses / scoundrels of Wall Street negatively affected our business."

The library, too, has directly felt the effects of the market decline. We rely on memberships, class enrollments, and endowments to fund the provision of our services. Those endowments are invested and when the market dipped, so did our accounts.

Despite the poor economic atmosphere, the library still manages to provide services at the same level to our students, members and to the public. We have maintained a full course schedule, giving member discounts to those who are unemployed and maintaining the high standards for which we're known.

In the face of budget constraints, the library still maintains subscriptions to most of the leading insurance publications, and we've continued our commitment to preserving our historical collection (this is especially assisted by generous donors who support our adopt a book program and amazon wish list)

Consumers are more hesitant than ever when choosing an insurance company and the library is more than happy to help them through the maze of available information. When appropriate, we point them in the direction of the Division of Insurance, and The NAIC consumer information source (which provides consumer complaint information) to help them make insurer choices. We also assist them with Financial Stability Ratings so they can gauge what companies are likely to stay in business in the future and be financially able to pay claims.

This week we've had several new people and organizations join the library; twelve class sessions have met; and the stock market has improved. Clearly, this is all great news for the library, and we like to think bodes well for the economy in general. As an organization that has weathered The Great Depression and now what could be referred to as a Dysthymic Economy, we plan to stick around, no matter what the outlook, for quite some time.

On a completely separate note, we wanted to include one last picture from our big event --it's my personal favorite from all eight years, we hope you enjoy it too.

In This Case, You'll Have to Settle for 1,000 Words

2009-10-26T11:47:00.006-04:00

We're new to this blogging thing, and have only had a digital camera for the last six months. . . these are the excuses we're using for why we forgot to take pictures at Friday's wine and cheese reception for the Society of Risk Management Consultants. It may also be because we were too swept up in the fun; multiple tours were given of our facility, and there was plenty of lively discussion of insurance related issues, not to mention a fair amount of wine and cheese consumption.

We did promise pictures though, and we always deliver on our promises. We've managed to post the pictures for the Insurance Professional of the Year Award Ceremony earlier than we planned. If you're interested in taking a look at all of the pictures, please just click over to our shutterfly site. The library will continue the tradition started last year and make a photo book that will be available for perusal at next year's event (we don't have an exact date yet, but it will be sometime next fall, stay tuned for more information).

The sponsor board which was located outside of the entrance to the event. These
generous sponsors help make the event possible.

The Award, it's hard to see the beautiful dupioni silk matting and the hand
lettering in this picture, but trust us, it's gorgeous.

The award winners past and present (not pictured are Ronald Mariano and John B. Conners).

The awarding of the award, by president of The Library's Board of Trustees, K. Douglas Briggs.

Each year, CAR has generously donated a portrait of the winner which is hung in the library for a year and then given to the award winner. Above, Ralph "Buddy" Iannaco, president of Commonwealth Automobile Reinsurers and 2005 Insurance Professional of the Year Award winner is presenting Richard W. Brewer with his portrait.

Again, more pictures are available on the shutterfly site we've created.

A Whirlwind

2009-10-19T13:26:00.005-04:00

Perhaps you've noticed the library hasn't posted lately? The annual Insurance Professional of the Year Award Ceremony took up so much of our time it was hard to stay on top of our research requests etc. let alone keep up with the blog.

The event was great (if we do say so ourselves). The winner was a popular choice and the speeches given were heartfelt and inspiring. Today, we're still playing catch up with some of our requests from Friday, but over all the schedule is back to normal. We should be able to post a link to pictures of the event in the next couple of weeks.

Meanwhile, we're looking at a lovely bouquet of flowers kindly sent to us from the award winner (thank you) and working on planning a tour of the library and reception for the Society of Risk Management Consultants on Friday (more pictures to follow from that next week).

Moving Right Along

2009-09-15T11:55:00.003-04:00

As mentioned in our previous post, The Insurance Library Association of Boston's Insurance Person of the Year Award Ceremony is fast approaching. In the last couple of weeks, we've:

received the Award in the mail

and prepared it for framing

we've ordered tassels for the programs

and dusted off our seal

We've also started formatting the letter of congratulations to be published in the October 9, 2009 edition of The Standard. Starting in 2007, The Insurance Library and others in the industry published a letter of congratulations for the winner of the Insurance Professional of the Year Award in The Standard. While it is a fairly young tradition, we think it's a very visible demonstration of our pride that the winner is a member of our community. A copy of last year's letter can be seen on our website.

The letter is also a good way for individuals or companies who might not be able to attend the event to show their support for the winner. If you're interested in "signing" the letter of congratulations for Richard W. Brewer, either by having your logo included or your name printed under the letter, you can be added by clicking here. It is $125 and we must have all logo submissions by September 18, 2009 to ensure that our letter will make it in the October 9, 2009 edition of the standard.

Back to the Books

2009-09-08T15:25:00.000-04:00

It's that time of year again, the library is abuzz with classes starting and we're busy preparing for our seventh annual Insurance Professional of the Year Award Ceremony. As of today, the library has 30 tables spoken for, leaving only five up for grabs (you should definitely lay claim to a table soon if you're interested in attending). This Year's winner is a popular choice, Richard W. Brewer of Promutual Group.

We were asked awhile ago what made the Insurance Professional of the Year Award special. While it states on our website:

Made possible by the establishment of the Richard B. Simches Fund in 2001,the Insurance Professional of the Year Award is presented each year to a person who demonstrates leadership and exemplifies those qualities that engender understanding of and respect for the insurance industry.

it may not be obvious what an honor this award is, nor from what tradition it stems.

The Insurance Professional of the Year Award was preceded by the Boston Board of Fire Underwriters Man of the Year Award, which started in the 1950s. In the History of the Boston Board of Fire Underwriters, published on their 90th anniversary in 1955, it cites:

Among the "firsts" pioneered by the Boston Board of Fire Underwriters or its members were: The Coinsurance Clause, The Demolition Clause, Use and Occupancy
Insurance, The Agreed Amount Clause for benefit of fiduciaries, and, in more
recent years, The Fire Marshall Plan, Insurance Producers Council, New Standard
Fire Policy, The Greater Boston Fire Show and The Man of the Year Award.

Clearly, they valued the award, putting it among some very impressive "firsts." The award was presented every year at the Boston Board of Fire Underwriters anniversary dinner. It was a black tie affair that garnered much publicity. Below is an announcement of the 99th anniversary dinner which ran in the Boston Globe:

As you can see, the winner of that year's award was Maurice H. Saval, a major supporter of The Insurance Library, for whom the education center was named. The Boston Board of Fire Underwriter's award was last given at the 133rd anniversary dinner in 1996 to Francis A. Mancini.

Richard B. Simches, founder of Safety Insurance Company, believed that it was important to recognize outstanding individuals in the Insurance Industry. He supported continuing the tradition started by the Boston Board of Fire Underwriters Man of the Year Award through The Insurance Library's Insurance Professional of the Year Award.

The Insurance Professional of the Year Award winners are chosen by a group of their peers. Members from a cross-section of the Insurance Industry meet to nominate the winner. Because of the selection process, award winners know they are being honored by men and women familiar with the industry and their work within it.

The Award was first given in 2002 to William F. Hofmann, III and has been awarded for the last seven years to professionals that have shown exemplary devotion to the insurance industry and to the betterment of their communities. You can visit our website to see a list of all of the award winners and read their contributions in their bios.

We are very proud of the award that has been established, but even more proud to acknowledge the incredible professionals in the insurance industry. Once a year, members of the industry come together to honor an individual "who demonstrates leadership and exemplifies those qualities that engender understanding of and respect for the insurance industry." We hope that you can be among those this year honoring Richard W. Brewer on this fine achievement.

Welcome to the Library

2009-09-01T09:00:00.010-04:00

We thought it might be nice to start our first blog post ever with a virtual tour of the library. Because we're librarians though, and not videographers, this will be a low tech virtual tour. One of the membership benefits is acess to the library's conference and meeting rooms. While many members take advantage of this benefit, we wanted to be sure that all members were aware of it. This resource is especially useful for our members based outside of Boston who can use the library as a place to arrange meetings with clients and others when they are visting Boston.

The first stop on our tour is the Joseph Moore Room (it is sometimes also referred to as the A. M. Best Room Because of the number of Best publications housed there). The Joseph Moore Room is on the main floor of the library. Among other books, we keep in this room the NAIC Proceedings going back to the late 1800s, The Best Insurance Reports for Property Casualty and The Best Insurance Reports for Life Accident and Health both dating as far back as the early 1900s. This room also comfortably seats about six people at the table or ten including the surrounding area with a door that can be closed for more privacy.

Next up follow the beautiful spiral staircase down to the Board Room. This room has many of our historical publications including, Massachusetts Commissioners' Reports dating from the mid-1800's to the mid-1960's, bound journals, and other older reference materials. This room also has some beautiful fire insurance artifacts. On the walls are various fire marks (click here for more information on fire marks -- please note that this takes you away from our website and that we do not have a special relationship with/or necessarily endorse organizations that are linked to on this website) and we have plaques with firemen, along with a lovely three foot statue of a fireman. The board room sits twelve people around the large conference table very easily, but up to twenty people can be easily accomodated in this room including seating outside of the table.

Just off of the Board Room is the room often referred to as the Sanborn Map Room. The Library has a collection of Sanborn maps for all of New England. Our maps were last updated in the mid 1960's, but depending on the particular map they may be older or newer. Formerly, updates to the maps were done by gluing any changes over the older map. They are fascinating maps to examine and are used by fire insurers, architects, and surveyors, even today. The Sanborn Map Company is still in business, though they've updated their mapping techniques as technology has improved. The Map room can be used for small meetings: like the Joseph Moore Room above, it fits about six to ten people. Often, people will use the map room if they are having a catered lunch in the board room (though we do ask that people be extremely careful around the maps).

The Library occupies the basement, first and second floors at 156 State Street. The classrooms, where we offer our continuing education classes on site, are located across the hall, on the first floor, from the board room and in the basement. These rooms are also available for use by our membership if they are not already being used for classes. Below you can see two examples of the four rooms we have available. Each classroom has a white board, a screen for a projector and a podium. Depending on the classroom they can acommodate anywhere between fifteen and twenty people.

This concludes the tour of the library for today, but, hopefully, we will have many more posts in the future that will highlight what the library has to offer, both to the public and to the membership.