New to Professional Liability?

Come to PLUS University!

PLUS University is a fast-paced, week long program designed specifically for people who are new to Professional Liability.  It will provide information about the key concepts and primary disciplines of Professional Liability.

• Set in an intimate classroom
  
• Network with industry leaders and peers
  
• Learn from industry experts
  
• Earn continuing education credits

Registration is now available by clicking on the link below.

Member registration is $2,200 and non-member registration is $2.600.  Your registration fee includes lodging for the nights of May 17 through May 20 and also includes most meals.

Please note:  Only one session is being offered in 2010.  Register early as space is limited.

Register now by following this link.

Just a short post to let you know that I'll be the "official/unofficial/semi-official" blogger next week at the PLUS 2010 D&O Symposium at the Marriott Marquis Hotel in New York City.  This D&O-focused conference is always well attended and features a wide variety of valuable sessions for professional lines practitioners.  It's not too late to register if you haven't already.   

This year's keynote speakers are Rudolf Giuliani and Kenneth Feinberg.

Unlike my stint at the 2009 PLUS International Conference in Chicago, I will actually be attending some sessions and providing recaps and interviews.  Of course, I'll also be at some of the networking events (read: parties) so keep your eyes peeled for the guy taking pictures with the Blackberry.

It promises to be another great PLUS conference.  I hope to see you there, but if you can't make it, be sure to follow the proceedings here on the PLUS Blog site.  You can be sure that Sophie the Blog Dog will be sinking her teeth into all the action...   

Employers are likely to face more claims and bigger exposures in 2010 as sophisticated class actions and collective lawsuits increase along with aggressive government enforcement, a law firm reported.

Those and other findings were part of    the sixth annual Workplace Class Action Litigation Report by Seyfarth Shaw LLP  analyzing class action and collective action court rulings of 2009 involving claims against employers in federal and state courts.

“Since we began publishing this annual report six years ago, both the number of cases filed and the financial exposure that they pose to companies has increased exponentially," J. Stephen Poor, chairman and managing partner of Seyfarth Shaw, said in a statement.

"As plaintiffs' attorneys bring increasingly sophisticated litigation against employers that combine claims under multiple statutes, the financial exposure is only going to become greater for businesses," Mr. Poor warned.

The report’s general editor, Gerald L. Maatman Jr., co-chair, Complex Discrimination Litigation Practice Group and frequent contributor to National Underwriter, said a significant number of the firm’s attorneys contributed to the study.

Read this full story here on the National Underwriter website.

If you have a great idea for a panel or speakers at the 2010 PLUS International Conference, you need to submit your idea to us by February 1.

This year's Conference will be held November 10-12 in San Antonio, Texas.

You can visit the 2010 Conference Page on the PLUS Website by clicking this link, choose the "Material" tab and download the RFP form and instructions.

We look forward to your participation as we plan another outstanding Conference.

Do not fear death so much, but

rather the inadequate life.

– Bertolt Brecht (1898 – 1956)

More than 200 insurance professionals gathered last night at the Public House on East 41st Street (special thanks to manager Lynette Cesarowas) to raise money for the creation of "comfort packs" for kids undergoing chemotherapy at The Children's Hospital at Montefiore in the Bronx.  And, just as importantly, to celebrate the life of Carolyn Sullivan, the precious daughter of Pete (Aon NY) and Jeanne Sullivan who passed away in September from cancer.  Here's a photo of Carolyn in her school uniform:

Carolyn was eulogized at her funeral as being a very energetic, fun-loving and friendly girl, who lit up a room whenever she entered.  Many mourners also talked about her great charm and sense of humor.  Her loss is felt deeply, even by those of us not lucky enough to have known her. 

The event was organized by Cara LaTorre and John Vanasco of Aon.  Cara, in particular, deserves special mention for the untold hours of her personal time that she devoted to making the event the huge success that it was.  Money was raised not only through the admission fee, but also by means of a raffle, with many great prizes, and direct individual and corporate donations. 

Dr. Kathy Skae of The Children's Hospital at Montefiore was on hand to make some very nice remarks about Carolyn, who she personally treated.  Dr. Skae also expressed the Hospital's gratitude for the fundraising effort.

The event was a great opportunity for friends to catch up with each other.  Judging by outward appearances, everybody enjoyed themselves immensely.  No doubt, that's just the way that Carolyn would've wanted it.

Below are some photos from last night's event.

This is Cara LaTorre and John Vanasco, the party's organizers.  Cara was working frantically at the admissions table shortly before this photo was taken.  John was having a drink.  

Braden, Quinn & Lubeck is not a law firm (scary thought!), just Brian, Pete and James sharing some war stories.

Dan Flood, Ray Santiago and Simon Beynon talking about how they miss the good old days at AIG working with LG.  Or maybe not.  That's what I thought I heard them saying but I may have been hallucinating. Those drinks were strong.

Rich "Sunshine" Fachet and Steve "Coach" Troiano share a laugh.  They probably won't be laughing when they see their nicknames in print.  Steve is actually called "Coach" because he's a mentor for a lot of young underwriters.  I wouldn't want you to think that it's because he sits in coach class all the time.  That's not the reason.  Really.  And "Sunshine" is a better nickname than "Moonshine" so Rich should just be happy with it.

Mike Klaschka and Laura Coppola (and industry favorite of mine) catch up on old times.  Laura mustn't have been able to find anyone else to talk to at that moment (just kidding Mike...well, maybe not...)

Here we see that Laura was able to peddle Mike off on the lovely and talented Natasha Tarasova, another one of my industry favorites.  She deserves better.

In this third and final picture from my time-elapsed photography session, Jason "The Hawk" Hawkins tells Mike that he's done talking to him and will have to hand him off to someone else...

They say that bloggers get all the women...here I'm flanked by Raquel Rongione and Lara Bruzzese, two good Irish girls... They say the camera adds 20 years to men. 

Leigh McMullan (prominent member of the John Street Club) and Lori Marino talk about the good old days at ACE, or the good new ones at Valiant.

Dave "Lucky" Lynders and EveAnn "Not-Much-Luck-I'm-Stuck-With-Dave" Cassis (of FETA fame) discuss their former time together at Axis.  Unfortunately for Dave, and through no correlation, the Axis stock price rocketed the day after he quit.

Bill "Billy Mo" Morris and Pete Sullivan.  Bill volunteered to test an experimental NASA human transporter, much like the one in Star Trek, and is seen here dissolving molecularly just before being beamed up.  Unfortunately, the experiment went awry and Bill was only transported across the room next to Klaschka.  NASA Scientists are back at the drawing board and Bill is undergoing counseling. 

Rob Exelbert, Andy Perterson and George Blume share a laugh and a Coke.  Andy, in my opinion, is one of the most talented underwriters in the history of insurance.  He controls the Zurich luxury box at Madison Square Garden.  I tried to speak with Andy last night about some really important stuff, but it was too loud.  We need a quieter place to talk, like in a luxury box maybe.

Ray Santiago and John Benedetto discuss the latest fashion trends.  Actually, John did all the talking, Ray just nodded as he looked around the room.

Steve Whalen, Andy Doherty and Lara Bruzzese  are shown here. Andy was supposed to be calling Bingo at St. Margaret's in Pearl River last night.  Hopefully none of the parishioners read the PLUS blog.  I barely read it, so I doubt any of them would....

Pete Sullivan and Car LaTorre.

Jason "Doc" Brown and Tania Chen discuss the current state of the insurance market.  Jason is affectionately called "Doc" because he has a doctorate in being cheap thrifty.   Not really, but if there were such a thing, he could teach the courses.

Steve Boughal, Ryan Seacrest, Liz Mayo, Brian Wanat and, surprise, surprise, Mike Klaschka (he was following me around) appear here.  Seacrest took some time off from filiming "American Idol" to stop by in the hopes of meeting Kevin Sears.  Seacrest heard that Sears looks like him.  Unfortunately, Kevin never showed up, so Ryan entertained the crowd with behind-the-scene stories from his days working at CNA.  Strange coincidence.

Have you ever seen two guys happier to be at a party?  This is Vince McGee (not to be confused with industry legend Vince McGeehan of Willis) and Brian Braden competing to see who can smile wider for the camera.  A fitting final photo for a thoroughly enjoyable party.

One last thought on Carolyn and her brief but wonderful life.  A quote from Abraham Lincoln:

"In the end, it is not the years in your life that count, it's the life in your years."  

The launching of the new decade caused me to reflect on some of the insurance industry lessons that I learned in the past ten years.  The first decade of the 2000s was certainly eventful, although not always in a good way. 

The old Chinese proverb, “May you live in interesting times,” once again proves susceptible to multiple interpretations.

I can’t verify that all the lessons below were learned in the last ten years, some are older no doubt, but most fit the bill.  The very first lesson that I learned last decade, shortly after the clock struck midnight on January 1, 2000, is that the “experts” are not always right.  As we know, the much-anticipate Y2K "meltdown" never happened. 

Not only did things not meltdown, they didn’t even get warm to the touch.  Sometimes the "experts" are just flat-out wrong.  Astoundingly so, in fact.  So, I learned that lesson….

Ø     PLUS, I learned that you should think creatively and share your innovative ideas with people who can make them happen.  Even they don't work out, your superiors will be impressed that you're one of the few people who really think about the business;

Ø     PLUS, I learned that karma exists; if you’re a jerk, it will come back to haunt you.  On the other hand, do a good deed and it will be repaid (pay it forward, as they say...);

Ø     PLUS, I learned (again) that you can’t judge a book by its cover. I've listened to senior executives of respected companies tell me how great their organizations were, only to see those companies destroyed by scandal not long after.  It's hard to detect a really good liar no matter how good you think you are;

Ø     PLUS, I learned that if someone asks to have the fraud exclusion removed, decline their submission immediately and vow not to do business with them in the future.  You'll be happy you did;

Ø     PLUS, I learned that if you remember people's names, especially prospects in a large group meeting, you'll have a greater chance of getting their business (Dale Carnegie gets credit for that one);

Ø     PLUS, I learned that the good accounts will pay you back over time, because they value relationships;

Ø     PLUS, I learned that if we all did our jobs with as much enthusiasm as Bruce Springsteen does his, our industry would be immensely better off;

Ø     PLUS, I re-learned that you should respect everyone.  We've all seen examples of subordinates eventually becoming their boss's new boss. Just be nice to everyone and you won't have to worry;

Ø     PLUS, I learned that if September 11th taught us nothing else, it drove home the fact that we should cherish every day;

Ø     PLUG, I learned that no company is above scrutiny;

Ø     PLUS, I learned that Yahoo Finance is a good resource and you shouldn't let info-snobs talk you out of using it;

Ø     PLUS, I’ve learned that if you’re going to let someone take a silly picture of you, like my friend did, you should get them to promise not to post it on a blog;

Ø     PLUS, I learned that you shouldn’t be afraid to ask questions in a group meeting.  Others have the same thoughts but are afraid to speak up.   You’ll impress both the prospect/client and broker with your interest and intelligence;

Ø     PLUS, I learned that you should acquire at least one rabbi, a senior person in your company (or, if not there, in your industry niche) who can give you career advice and insights.  Choose someone who cares about you, it will pay off handsomely in the long run.  Don't just rely on the random musings of people like me;

Ø     PLUS, I learned that there are a lot of benefits, some unexpected, that come with being an active participant in industry associations like PLUS, RIMS, DRI, The Council on Litigation Management, the CPCU Society, etc.;

Ø     PLUS, I learned that when underwriting a company, you should think about their product or service and how you believe it may have utility in your own life.  If you have no use for it, others might not either. And if you’ve used the product or service and had a bad experience, maybe others have too.  Personal experience is important;

Ø     PLUS, I learned that when you're adjusting a claim, treat the claimant with courtesy and respect, and promptly return their calls, whether their claim is valid or not.  You may keep a client for your company, and possibly even spark an expansion of the relationship, regardless of whether you pay the claim;

Ø     PLUS, I’ve learned that if a company brings their CEO to an underwriting meeting, they usually either have a really good story to brag about or a really bad one to mask;

Ø     PLUS, I’ve learned that the operations people rule the world, so be nice to them.  That includes your assistant and all other support staff;

Ø     PLUS, I’ve learned that you should pay attention to what the popular press says about your clients.  Whether it’s true or not, it can have a big effect on the company;

Ø     PLUS, I’ve learned that you should never speak ill of competitors, especially to clients and prospects, it only denigrates you and makes you look classless, no matter how true your comments may be;

Ø     PLUS, I learned that who you work with is usually more important than what company you work for;

Ø     PLUS, I learned that you should let the other side make the first offer whenever possible;

Ø     PLUS, I learned that Side A coverage is no longer pure gravy;

Ø     PLUS, I learned that Cost of Corrections benefits the carrier when used properly;

Ø     PLUS, I’ve learned that if you discover something that doesn't make sense to you, ask questions until it does, no matter what the issue (maybe this should be called "The Madoff Rule");

Ø     PLUS, I’ve learned that if you get an account solely on price, you should expect to lose it solely on price;

Ø     PLUS, I learned that you can never do too much for charity.  For example,  this Thursday, January 14th from 6 - 9 pm at the Public House, 140 East 41st Street in Manhattan there will be a party to raise money to create "comfort packs" for kids undergoing cancer treatment.  It's one of the most worthwhile events that you can attend this year.  For more information, or to buy your tickets, please contact Cara LaTorre at charity11410@yahoo.com or call 212.441.2372.  You can also call John Vanasco at 212.441.2281.  There will be a raffle featuring terrific prizes such as vacation getaways, golf foursomes, an autographed Derek Jeter baseball and other great items.  I'm sorry to sneak this ad into what you thought was an informational piece, I'm getting like Advisen!

Ø     PLUS, I’ve learned that you should protect business secrets even more zealously than your own;

Ø     PLUS, I’ve learned that if you invite someone to a meal in the business world, you should pick up the tab (this doesn’t apply to friends);

  Ø     PLUS, I've learned that a picture of Sophie The Blog Dog increases blog reader satisfaction.  Here Sophie licks her chops over what she anticipates to be many clicks;

Ø     PLUS, I’ve learned that your personal reputation in this industry is the most important thing that you own; don't compromise it for any reason;

Ø     PLUS, I’ve learned that if you're a broker, you should always remember that most exclusions are not in the Exclusions Section.  Close your office door (or put on headphones if you're in a cube) and do a full-on policy review,  your client deserves it and your E&O carrier will appreciate it;

Ø     PLUS, I’ve learned that you should read the footnotes to the financials, that's where the meat is hidden, and is from where headlines will be made;

Ø     PLUS, I’ve learned that when in doubt, you should err on the side of overdressing for a meeting or other business function;

Ø     PLUS, I’ve learned that brokers should keep RFP responses as short as possible, the client or prospect will appreciate it and be impressed that you’re not wasting their time with another War and Peace;

Ø     PLUS, I learned that you shouldn’t gloat over another company's misfortune, you could be in their position someday;

Ø     PLUS, I learned that just because everyone else dislikes a person or an account, it doesn't mean that you have to; make up your own mind based upon your own investigation;

Ø     PLUS, I learned that if you meet a famous or very powerful executive, it’s natural to be impressed, but don’t let it show too much;

Ø     PLUS, I learned that relationships matter in our business on many levels.  I do business on a personal basis with MetLife, Chase, BofA, Verizon Wireless and Fidelity Investments, to name a few, because I know the current or former risk managers and they are good representatives of their companies;   

Ø     PLUS, I learned that you can’t steal second base without taking your foot off first.  You have to take some personal and professional risks sometimes if you want to really succeed;

Ø     PLUS, I learned that I like blogging so much that I’ve started a humorous blog on general topics.  It’s at www.lgreport.blogspot.com.  You can read about my experience in Martha Stewart's audience, my environmentally-friendly idea that would save McDonald's millions, and where to get the best sushi (Yama) and groceries (Wegmans), among other things;

Ø     PLUS, I learned that I should thank you for reading my PLUS blog postings and I hope you’ll come back often and continue to support PLUS.  Best wishes to you and your family for an awesome 2010. 

CHICAGO (Dow Jones)--A plan by New York to establish an infrastructure for a revived New York Insurance Exchange will create thousands of jobs in New York and help keep insurance dollars there, said James Wrynn, superintendent of New York's insurance department.

Governor David A. Paterson announced the plan in his state of the state address delivered Wednesday.

The NYIE "would enhance New York's status as the world's financial center stimulating the economy by increasing the flow of capital and insurance premiums to New York," according to a copy of his speech published on the governor's Web site.

Paterson described the exchange as a way to bring buyers and sellers of complex commercial insurance together that would operate like the famous Lloyd's of London exchange.

In a conference call Wednesday, Wrynn did not give a timetable for setting up the exchange, which he said could have a physical location as well as a technical infrastructure.

"The goal is not to get it up and running quickly. The goal is to make sure it fits a need for the industry. When it does get up and running it will be running for a long time," Wrynn said.

Wrynn estimated that 50% of the money that goes to the Lloyd's of London insurance market comes from the U.S., and that the exchange could help keep some of that money in the U.S. as well as create thousands of jobs in New York city and in upstate New York. The exchange would focus on complex and large risks.

The Freedom Tower, since renamed One World Trade Center, currently under construction on the site of the World Trade Center, would be a "perfect" example of a risk that could be insured through the exchange, Wrynn said.

A previous New York Insurance Exchange opened in 1980 but closed within a decade. The exchange offered a centralized marketplace for brokering and underwriting insurance risks, but closed after the industry suffered some losses.

"The risk market has advanced and technology and capital markets have advanced" since then, said Wrynn. "Conditions are more favorable for an insurance exchange."

Wrynn said the exchange would provide added security for insureds by establishing a central fund to pay claims if an insuring syndicate was unable to pay.

"By bringing together buyers and sellers of complex commercial insurance, the exchange will reaffirm our status as the hub of international trade and finance and it will also curtail the unregulated transactions that devastated the global economy," Paterson said in the remarks published on his Web site. He added that "New York was the epicenter of so much that went terribly wrong in 2008. It is our responsibility as New Yorkers to lead in the rebuilding and reform of these vital global markets."

Link to Article:

http://online.wsj.com/article/BT-CO-20100106-711820.html?mod=WSJ_latestheadlines

If you are unable to view the above graphic, please click here.

This past year was quite a year. We had bailouts, ponzi schemes, and unemployment. There was the inauguration of a new President, healthcare legislation, and the ongoing war in Afghanistan. And we topped everything off with pirates, pandemic flu and a balloon boy.

While this was taking place, PLUS continued to move forward due to the creativity, diligence and foresight of the PLUS volunteer leadership and staff. Here are some of the highlights from 2009:

We completed our transition into the new RPLU exams based on the 23 module PLUS Curriculum.  In addition to offering exams at Prometric centers worldwide, we also offer companies the opportunity to administer exams at their locations, making it easier to train employees in the elements of professional liability.

We held more that 40 local meetings this year, hosted by volunteer Chapter leaders in the United States, Canada and Europe. Dedicated volunteers also worked to host eight golf outings raising money for the PLUS Foundation.

We moved into the realm of social networking, adding Facebook, Twitter and LinkedIn as resources for PLUS Members and others interested in professional liability. They also began inviting guest bloggers to participate in keeping our messages fresh and humorous.

Starting with lowering our printing output and offering an electronic option for the PLUS Journal, we are working to help the environment by “going green” and conserving resources.

PLUS offered its first Webinar in conjunction with Advisen. This program was a success, with more than 400 people participating in the call.

PLUS held four large scale events this year (D&O Symposium, Medical PL Symposium, Professional Risk Symposium, and the PLUS International Conference). They attracted more than 4,000 attendees and brought in timely and topical speakers including Madeleine Albright, Eric Dinallo, Paul Keckley, Susan Hodgkinson, Marvin Zonis, Walter Bond, Dr. Robert Hartwig, President Bill Clinton and Malcolm Gladwell.

Next week we will post some of the things we’re going to be working on come the new year. For now, on behalf of the PLUS leadership and staff, thank you for your support of PLUS in 2009 and best wishes for a happy and prosperous 2010.

Happy New Year!

We will resume posting articles and information on Monday, January 4th.