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Sea Ranch Club

Board Meeting …7/18/08

The Board invited AON insurance agent…Martha Roig…who has been working with SRC…since 1983….

She was invited to present what her company has provided us with in the past….at the present time and working with the board to provide us in the future….

At first it did not make this writer comfortable …watching the “old home week” greeting….being “leery” of a relationship that might be too comfortable… sometimes leading to a complacency in providing the client with the same service ….as someone new trying to get in the door….offers….

Ms Roig….proceeded to allay those “fears” with concise…well prepared answers….having done her homework…and presenting them in terms…even a lay-person could comprehend….much appreciated….

First up….all 3 buildings are either complete or close to completion for fully shuttered/hurricane impact window coverage….which will put into motion….the required paperwork…that will start the process…of getting monies back…($168 thousand for C building…first completed)…and getting out from under Citizens….and into QBE…. as each building is finished…separately…

Martha Roig has had a working relationship with the President of QBE since 1973….and was able to call him and his Vice President…to establish….where SRC is heading….and even had the response…that they would come to SRC in the future to speak to us…which Ms. Roig commented is highly unusual….to offer….

Ms Roig did take the time to compare the presentations presented by both previous companies….see previous posts….

The “group insurance” /”pool insurance”…..offered….which we were told was not available to offer upon the second visit from Brown…was known by Ms Roig…due to her discussions with the CFO of Florida…Alex Sink…ahead of that second visit…

Later on in the presentation…Martha explained the pitfalls of a “pool” policy….explaining that AON itself offered a “pool” policy with Continental Management….and so far…no takers to the program…due to the amounts…being too low to cover a major claim…and the consequences of looming assessments from all participating condos…

In talking of Smith, Watson…who is a “competitor” of AON…Ms Roig stated that despite their stated relationship with QBE…they could not place coverage for SRC …due to the current representation by AON for SRC with QBE….

When asked of other companies that might insure SRC…she answered ….QBE is the only one due to the buildings being older…lack of individual…common area….sprinkler systems…they demand ….

On comparing commissions offered from other companies VS a capped fee from AON…the commission the other agencies would receive from the insurance companies…10-15%…approx. $250-265 thousand…VS the AON fee of $116 thousand….

She spoke of the deductibles…the present amount of 10% for hurricane coverage…was the cause of some rather nasty interaction on the board… as a result of one member legitimately voicing concern from having it presently….and being in the minority when it was voted on….and the desire that it not be the case going forward…..

Ms Roig offered up the that the insurance business …is like going to Las Vegas….and rolling the dice…pay now or pay later…when asked about the 3% on “all other wind” coverage VS $1000 each building….She did not have the numbers available…what the cost difference was…and will get them to the comptroller and board….

The plan with the return to QBE will be either a 3% …per occurrence or a 4% calendar year/5% per occurrence or a 6% calendar year…

Martha’s recommendation… 4% calendar year….

When the change over does occur…SRC will have some time when we are putting out a payout without having the refund…..

Also brought forth by a resident…filing a mitigation form…available from your insurance agent…along with one for the entire building…once completely shuttered…results in pro-rated refunds from the insurer of up to 80%….

Our refund from Citizens will also be pro-rated…from January 2008…

Ms Roig introduced us to Hellen Savitt who will take over as our agent of record….with Martha still in the bakground….on all negotiations…

Ms Savitt was previously with Marsh…has 15 years experience…with life/health/property and casualty insurance…is an “insurance nerd”…loves to do research…and will not give an answer without backing it up….she was born in Cuba…raised in Florida…with an MBA from U of M in 2006….

Also mentioned from the board…refunds to come back from refuted appraisals….approximately 8% on building B……

More information should be coming with the completion of buildings B & A….and updates will be posted….

Any further questions…contact your board members…or managers…

One last point….

The President of the Board…..asked all residents in attendance to please let their neighbors know the following…..

The Board works very hard as they are owners too…doing the best they can for everyone..

more to come…..

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