RESOLUTION TRANSFERRING THE ASSOCIATION SPONSORED DISABILITY INSURANCE PROGRAM FROM AIG TO NEW YORK LIFE INSURANCE COMPANY


WHEREAS, the Insurance Programs Committee is responsible for the general oversight of insurance programs offered to the members of the Association; WHEREAS, the endorsed disability insurance program of the Association is currently written with AIG (American International Group);

WHEREAS, New York Life Insurance Company is rated "A++" (superior) by A.M. Best; “AAA” (exceptionally strong) by Standard & Poor’s; “Aaa” (exceptional) by Moody’s; and “AAA” (exceptionally strong) by Fitch;

WHEREAS, the viability of the Association's disability program depends on the willingness of the carrier to make guaranteed and simplified issue offers, as well to make an aggressive marketing commitment;

WHEREAS, the Association's endorsed broker of record, USI Affinity has recommended moving of the Association's disability insurance program from AIG to New York Life because of New York Life's currently having the Association’s life insurance program; the provision of a guarantee issue of a monthly increase of $500 to all insureds who presently carry up to $9,500 a month in coverage under the present program; the provision of a simplified issue for new applicants of $1,000 a month in coverage; the agreement not to increase premiums for the first two years of the program; and finally the unique opportunities for cross-marketing of the life and disability insurance programs;

WHEREAS, the Insurance Programs Committee has reviewed the present program with AIG and compared the benefits available to Association members, if the program is moved to New York Life Insurance Company; and WHEREAS, the Insurance Programs Committee believes it to be in the best interests of the Association, and its insured members, to transfer the endorsement effective July 1, 2009;


NOW THEREFORE BE IT RESOLVED that the Board of Governors directs that the endorsement of the Association's disability insurance program be moved from AIG to the New York Life Insurance Company as of July 1, 2009.

PHILADELPHIA BAR ASSOCIATION
BOARD OF GOVERNORS
ADOPTED: February 26, 2009