June 2005

WSBA’s Sponsored Insurance Programs

by WSBA Executive Director Jan Michels

As part of our programs to serve members, the WSBA sponsors professional liability, medical, and automobile insurance programs. Additionally, the WSBA is a sponsor of the ABA Group Retirement Program. Following is a summary of these benefits.

Professional Liability

In the 80s, when professional liability carriers were shrinking and many Washington lawyers were unable to secure liability coverage, the WSBA worked with a brokerage firm to sponsor a professional liability program for members. This action served to keep a carrier available to members and to design an insurance policy that met members’ needs. In the years since then, the WSBA has continued to sponsor a liability insurance program. By Board policy, the WSBA’s Insurance Committee must, on a minimum of a six-year cycle, thoroughly review the program and broker. Governors Mike Pontarolo and Mark Johnson, co-chairs of the Insurance Committee, working with the full committee and General Counsel Bob Welden, have completed a lengthy and thorough RFP process. Their goal was to ensure that our program provides a high-quality, cost-competitive, accessible product; our members are well served (including those with high-risk areas of practice who have had difficulty getting coverage); and the WSBA itself is well-served as an institutional “client” and affinity sponsor. The Insurance Committee recommended changing the broker/administrator to USI and the program carrier to CNA.

In January, the Board of Governors adopted the committee’s recommendation. USI is the nation’s largest administrator of bar association lawyers’ professional liability (LPL) programs and so brings both superior expertise and market strength to the table. Its long-time association clients include the New York and Pennsylvania Bar Associations, and the University of Washington and Washington State University Alumni Associations. USI’s Seattle office has served customers statewide for nearly 50 years and is already the insurance broker of choice for many of our members and law firms. USI has a dedicated, experienced team, and they are pleased to expand their relationships with our members and their firms. CNA is an “A” rated carrier (by A.M. Best) and the seventh-largest U.S. commercial lines insurer. It has been in the insurance business for over 100 years, in the LPL market for over 40 years, and serves 125,000 lawyers.

You will hear more from USI as we launch this new program together. In the meantime, if you need assistance with your professional liability coverage, please call Katie Holmes at USI at 800-422-4710 or 206-695-9173.

Other Sponsored Insurance Programs

In 2002, the Board of Governors created a Membership Benefits Task Force to explore other possible member benefits and insurance programs. Under the able leadership of, first, Dale Carlisle, and, later, Joe Nappi Jr., the task force investigated many possible member benefits, including affinity cards, sponsored insurance programs, product and group purchase agreements, car rental, hotel/motel sponsorships, and technological services and products. It became evident that some products and services were easily obtained by members outside of WSBA sponsorship or were already available to members through bar programs. In the end, in addition to the existing professional liability insurance program, the WSBA developed sponsored programs for medical insurance and auto insurance, and agreed to be a sponsor of the ABA Group Retirement Program.

Medical Insurance

In the early 2000s many members, especially those in Eastern Washington and in smaller firms, were unable to obtain medical insurance. The task force worked with Marsh to develop a sponsored medical plan with Group Health. Although this plan had a few coverage gaps, it was a benefit to many members, and Marsh brokered the plan for the first year. At a special meeting on May 3, the Board of Governors reviewed and adopted the Insurance Committee’s recommendation that sponsorship of the Group Health plan be moved to USI and, further, that the WSBA work with USI to investigate the possibility of developing a true group plan for WSBA members.

Members enrolled through Marsh can renew through USI, and other members interested in this plan can call USI representative Sheila Arestad at 206-695-3162.

Automobile Insurance

The WSBA has negotiated a sponsorship of automobile insurance through GEICO. The rates are competitive and members receive a 20 percent discount over usual rates for this insurance. To learn more or get rate quotes, call -GEICO at 800-368-2734. Be sure to identify yourself as a WSBA member.
 
Retirement Investment Plan

The WSBA has agreed to be a sponsor of the ABA Group Retirement Program, available to all WSBA members (whether they are ABA members or not). The ABA program offers a number of turnkey retirement programs tailored to attorneys. It also offers a variety of investment options for funds held in a firm’s retirement account, ranging from investing in pooled funds, which are professionally managed by the program, to investing in individual stocks and bonds just like one might do with one’s personal investments. The program’s managers are compensated by fees earned from managing the pooled funds, so participating attorneys do not pay separate management or other fees for plan administration. “It’s an exceptional program, providing a simple, low-hassle, low-cost way for attorneys to set up and administer retirement plans, with strong customer service,” notes Carl Carlson, former governor and member of the task force, and proponent of the value of this retirement program. To learn more about the program visit www.abanet.org/abra.

Other Future Possibilities

The Insurance Committee continues to review possible disability and long-term care insurance options. In reviewing member benefit insurance options, the WSBA’s goal remains to offer programs that help members. Members may see occasional advertising for these programs from the broker and will always have the option to remove themselves from such mail.

WSBA Executive Director Jan Michels can be reached at janm@wsba.org.