Insurance Problem

Jul 31 16:43 UTC 2002

Bad news.  

Today I got a registered letter from State Farm Insurance stating, "We
regret we cannot issue the policy as requested.  The coverage provided
by this application will terminate on August 11, 2002."  Enclosed was
a State Farm check for $165.00.

I've already placed a call to Barb Young, our agent at State Farm.  I had
asked her quite clearly, at least twice, if this policy was firm as I
didn't want to let our old policy expire without certainty State Farm
would be able to insure us and the policy was a go.  She assured me she
had spoken with her underwriter and there wasn't a problem.  They cashed
our check.  The policy term was from July 1, 2002 - June 30, 2003. 

I also have a call out to Aprill but I'm not optimistic they can help.
The agent there had warned us that they were no longer going to be 
covering organizations such as ours and that once we didn't renew
we'd not be able to get coverage.

This is a real shame.  I don't know the best way to proceed.  As soon
as I get more information I'll post it here.

Any ideas?

response 2 of 58:

Jul 31 19:42 UTC 2002

Do you have it in writing that grex had been issued an actual policy?

response 4 of 58:

Jul 31 21:59 UTC 2002

We hadn't yet received the formal policy from State Farm.  But
they did (and will) cover us from July 1 through August 11.

The agent from Aprill called back, very sympathetic, and said she'd check
with our old underwriter, Hastings Mutual, and see if anything could be
done to go back to our old coverage.  If so, that premium was quite a bit
higher.  Do you remember the amount, Mark? 

If we could reactivate that policy should I go ahead a grab it?  I'm sort
of looking for board approval here to make the deal, if it is offered.

response 6 of 58:

Aug 1 01:33 UTC 2002

Didn't Sindi find us this person through a personal connection?  Perhaps
she can apply the necessary pressure to make them follow through on their
commitment.

response 8 of 58:

Aug 1 14:40 UTC 2002

I'm thinking NEW Center.  I'm also thinking that before we go off 
threatening breach of contract proceedings, we'd damn well better be 
certain we have a leg to stand on.

response 10 of 58:

Aug 1 16:50 UTC 2002

(I suspect it would involve many of the same persuasive skills that might
be employed to make a point here, perhaps translated to an oral medium in
some instances.)

response 12 of 58:

Aug 2 13:04 UTC 2002

s/mislead/misled/

response 14 of 58:

Aug 2 21:42 UTC 2002

I think we'd all rather go bare but our lease requires we carry liability
insurance.  The coverage is specified under section #13, "Tenant to
Indemnify".  The lease is at: /usr/local/grexdoc/archives/
lease/lease.pumpkin2

It took a number of calls to speak with Ms. Young, at State Farm, who was
in meetings for the past day and a half.  She said she too was shocked to
find our policy wasn't approved.  We had a rather lengthy conversation in
which I pointedly asked her if she considered her reassurances that the
policy was a go a contract between CC and State Farm.  She answered that
she is only a salesperson and when the underwriter had all the information
he came to a different decision.  I told her this could be a huge problem
for our organization and that we may even be forced to move, at great
expense, if we can't find affordable insurance coverage.  She said she was
sorry but there was nothing she could do in terms of State Farm.  She said
she was going to look around with a couple of other agencies, Ufer for
one, to see if she could find us another underwriter.  She said she'd get
back to me, one way or the other, as soon as she knew more.  She obviously
overstated her authority in making a promise she couldn't keep.  She
apologized for the problems we are facing but didn't accept responsibility
for her role.

Aprill agency is still checking with Hastings.

The suggestion to call NEW Center was a good one.  I was able to get the
number for Michigan League for Human Services, in Lansing.  They
facilitate insurance for non-profit organizations.  I spoke with a Mr.
Wells, who seemed to understand our needs.  He took down some specifics
about our organization and rental situation and he's going to see if he
can match us up with an appropriate policy.  I'd say he was guardedly
optimistic, which means he'd like to help but isn't at all sure he can. 
Again, he'll get back with me on Monday or Tuesday. 

I'd really like to get the authority here to accept an offered policy
should that happen.  If Mr. Wells comes back with a policy that fits our
needs and it's under $450.00 may I say yes?  The Hastings policy, as
offered for this year, was something like $475.  I'd want to hear that was
our only alternative before going back to Hastings as we'd already been
warned a renewal most likely wouldn't be offered for the 2003/2004
year. 

response 16 of 58:

Aug 3 00:39 UTC 2002

Thanks for all your work, Mary.  Once again, it's fine with me if you make
the decision on what policy to take.

response 18 of 58:

Aug 3 13:05 UTC 2002

It is really difficult for me to take or make personal 
phone calls when I'm at work and a new policy should be
in place by the end of the day this Friday.  The plan is
to get as much feedback on this as I can without
without forcing a lapse in coverage. 

I'm also going to place a call to our lease agent explaining
our problem and asking if there is any room for either that
clause to be dropped or the amount of insurance lowered.
I really doubt that could happen but we need to ask.

response 20 of 58:

Aug 4 00:17 UTC 2002

Been there.  Done that.  They can't help.

Nice company though - John and I use them for our insurance needs.

response 22 of 58:

Aug 4 03:42 UTC 2002

Might it not be useful to direct inquiries to the insurance carriers of 
the other tenants in the building where the pumpkin is located?

response 24 of 58:

Aug 4 13:06 UTC 2002

(s/above/below?)