MBA selects CNA as new insurance partner
NOTICE OF CHANGE
Massachusetts Bar Association
Lawyers Professional Liability Insurance
To Our Valued Clients and MBA Members:
We are pleased to inform you that as of JANUARY 1, 2004 the Massachusetts Bar Association (MBA) and the MBA Insurance Agency, Inc. are changing the endorsed lawyers professional liability insurance carrier from Westport to CNA. After much deliberation, the MBA’s Insurance Committee, comprised of the best insurance lawyers/members in Massachusetts, have selected CNA as the new insurance carrier for this program. PLEASE BE ADVISED THAT SOME IN THIS MARKETPLACE WIL ATTEMPT TO MISLEAD YOU AS TO THE REASONS FOR THIS CHANGE. I ask that you call me directly if you have any questions or concerns about the change in endorsed carrier. Outlined below are answers to frequently asked questions that will help you through the transition to CNA.
WHY DID THE MBA ELECT TO CHANGE INSURANCE CARRIERS?
As we all know, the insurance industry has gone through substantial change since the events of 9/11. In the Massachusetts lawyers professional liability marketplace, we have seen no less than eight (8) carriers withdraw from the market including some that have gone bankrupt entirely. Others have severely restricted their underwriting and in many cases have increased prices upwards of 25%.
The MBA’s current carrier, Westport, after more than 13 years on this program, has developed a changing attitude and is moving in a different direction especially in the key areas of underwriting, policy coverage terms and pricing. SPECIFICALLY, WESTPORT TOOK EXCEPTION TO THE MBA’S RIGHT TO APPROVE PROPOSED RATE CHANGES AND POLICY FORMS AND THE MBA’S ABILITY TO LIMIT ANY PROPOSED RATE INCREASES. MOREOVER, WESTPORT DESIRED TO CHANGE THE MBA’S RIGHT TO INSIST ON CERTAIN LIMITS OF LIABILITY COVERAGE AND THE MBA’S RIGHT TO OWN AND CONTROL INFORMATION ABOUT MEMBERS, INCLUDING AMOUNTS OF COVERAGE AND RENEWAL DATES. We believe that this shift in attitude and the direction Westport desires to take is not in the best interests of the MBA member/policyholder and may lead to problems in the future.
WHY DID THE MBA SELECT CNA?
After careful review of several carriers, CNA rose to the top of the list because their underwriting, pricing and coverage approach provided a distinct, measurable improvement over the current carrier. In addition, they have made a strong commitment to the MBA and the MBA Insurance Agency, Inc. to truly be a partner and have the experience, resources and personnel to provide comprehensive coverage, service and excellent value to MBA Members.
CNA has also recognized the nature of law practice in Massachusetts thus we have been able to negotiate an improved policy form with competitive rates for the program. CNA also understands that your practice is unique to you. Your account will be underwritten and the premium you pay will reflect your specific firm’s characteristics and loss experience.
WHAT CHANGES WILL COME WITH THIS MOVE TO CNA?
Honestly, we see only positive things coming from this change and here’s why:
· Our new policy has improved coverage
· Policies will be produced faster in the coming months and will eliminate the need for binders when coverage is bound
WHAT STAYS THE SAME WITH THE MOVE TO CNA?
· We will continue to use the “Short Form” renewal application
· We will continue to apply the same standards for binding coverage (receipt of funds)
· You will continue to deal with the same staff here at the MBA Insurance Agency
IMPORTANT FACTS ABOUT CNA
CNA is:
* “A” rated by A.M. Best
* the largest writer of Lawyers Professional Liability in the U.S.
* experienced with lawyers, having insured them for more than 44 years
* endorsed by many Bar Associations across the country
* the largest writer of federal and state judge professional liability in the U.S.
* the largest writer of legal aid and public defender attorneys in the U.S.
* providing a no cost Risk Management Hotline for attorneys to call with questions
* bringing to the program an established Panel Defense Counsel
* staffed by former private practitioners as the heads of risk management, underwriting and claim departments
SUMMARY
* Policies effective 1/1/04 and later, both new business and renewals will be placed with CNA.
* Policies currently in force will continue as is until expiration. Claims on Westport policies should continue to be reported to Westport as detailed in your policy.
We appreciate your business and are committed to making the transition to CNA seamless for you. The MBA and this Agency remain committed to providing you with an excellent value for your lawyers professional liability policy. IF YOU HAVE ANY QUESTIONS ABOUT THIS CHANGE, please call me directly at 413-788-7878 or you may also call your Account Manager with any questions.
Sincerely,
Terence J. Welsh, CPCU, AIS
PresidentPosted on Dec 22, 2003 |
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