RESOLUTION OF THE PHILADELPHIA BAR ASSOCIATION TO TRANSFER THE LONG TERM DISABILITY AND HOSPITAL INDEMNITY PRODUCTS
WHEREAS, the Committee on Insurance Programs is responsible for the general oversight of insurance programs offered to the members and staff of the Association;
WHEREAS, the Association's broker of record is USI Colburn Insurance Service;
WHEREAS, the Board of Governors believes that it is in the best interests of the members of the Association to be able to provide a long-term disability insurance product and hospital indemnity product to Association members;
WHEREAS, these products are presently underwritten by the Baltimore Life Insurance Company;
WHEREAS, In September 2002, A.M. Best Company downgraded Baltimore Life Insurance Company (current carrier) from the A- (Excellent) rating held previously to B+ (Very Good);
WHEREAS, On January 2, 2003, Baltimore Life announced that it would be exiting the association marketplace completely by the end of 2003;
WHEREAS, Colburn Insurance Service has reviewed the market for this of product and has recommended to the Insurance Programs Committee that the long term disability and hospital indemnity products be taken over by AIG American General which has an A.M. Best Rating of A+;
WHEREAS, the proposed coverage for existing insureds from American General would result in no loss of benefits and no increase in cost to any policyholder;
WHEREAS, the Insurance Programs Committee has voted to make such a recommendation to the Association's Board of Governors.
NOW, THEREFORE, BE IT RESOLVED, the Board of Governors agrees to endorse the transfer of the long term disability and hospital indemnity products to AIG American General.
PHILADELPHIA BAR ASSOCIATION
BOARD OF GOVERNORS
ADOPTED: April 22, 2003