2000.07.11 - Records of Meeting



RECORDS OF MEETING

MARKET REVIEW COMMITTEE

A meeting of the Market Review Committee of Commonwealth Automobile Reinsurers was held at the offices of CAR, 100 Summer Street, Boston, on-

TUESDAY, JULY 11, 2000 AT 10:00 A.M.

MEMBERS OF COMMITTEE

Mr. Charles I. Boynton, III - Chairman

Boynton Insurance Agency, Inc.

Ms. Nancy Z. Bender Nancy Z. Bender Insurance Agency, Inc.

Mr. Peter Dignan* The Commerce Insurance Company

Mr. James D. Doherty Doherty Insurance Agency, Inc.

Mr. Francis D. Gibbons O'Brien & Gibbons Insurance Agency, Inc.

Mr. Sumner D. Gilman Economy Insurance Agency, Inc.

Mr. William F. Hofmann, III Provider Insurance Group, Inc.

Mr. Robert Ireland** Safety Insurance Company

Mr. Douglas R. Long Berkshire Mutual Insurance Company

Ms. Susan K. Scott Premier Insurance Company of Mass.

Mr. Mark R. Silva Benson, Young & Downs Ins. Agency, Inc.

Mr. Robert E. Warren*** Plymouth Rock Assurance Corporation

Mr. William J. Whitebone Quincy Mutual Fire Insurance Company

Mr. Louis M. Xifaras Louis M. Xifaras Insurance Agency, Inc.

* Substituted for Mr. David H. Cochrane

** Substituted for Mr. Daniel F. Crimmins

*** Substituted for Ms. Paula W. Gold

Commonwealth Automobile Reinsurers –

Mr. Ralph A. Iannaco President

Mr. Joseph J. Maher, Jr. Vice President, General Counsel & Secretary

Mr. Paul Corsetti Director of Communications

Mr. Timothy Costain Market Relations Manager

Ms. Adrianne Francis Senior Administrative Support Assistant

Mr. John Metcalfe Director of Administration & Market Relations

Also present –

Mr. Russell Furlong Amica Mutual Insurance Company

Ms. Carol B. Nabor Carol L. Buckley Insurance Agency

Ms. Patricia Fahey C G U Insurance Companies

Ms. Sushila A. Lulla Sushila A. Lulla Insurance Agency

Mr. James P. Haas MetLife Auto & Home Insurance Company

Mr. Joel P. Murray Norfolk & Dedham Group

Mr. Barry Tagen Pilgrim Insurance Company

Mr. Joshua Stirling Progressive Casualty Insurance Company

Ms. Diane Fortino The Premier Insurance Company of Mass.

Committee Chairman Charles Boynton, called the meeting to order at 10:00 a.m.

MR

00.01 RECORDS OF PREVIOUS MEETINGS

A motion was made be Mr. Doherty and seconded by Mr. Xifaras to approve the Records of the Market Review committee meetings of May 2nd, and May 25, 2000 as written.

The motion passed on a unanimous vote.

MR

00.10 CAROL L. BUCKLEY INSURANCE AGENCY/AMICA MUTUAL INSURANCE CO.

The Carol L. Buckley Insurance Agency requested a review of the termination of her agency’s Exclusive Representative Producer (ERP) appointment by the Amica Mutual Insurance Company for violation of Rule 14, C, CAR Rules of Operation, “failure to develop and maintain a minimum book of business”. The agency currently maintains a private passenger book of business of 184 vehicles and 16 commercial vehicles. The agency was appointed as an ERP in December 1980 and is required to develop and maintain a book of business of at least 250 vehicles. At its May 1999 meeting, the Market Review Committee granted the agency a one year extension to develop a book of 250 vehicles.

MR

00.10 CAROL L. BUCKLEY INS. AGENCY / AMICA MUTUAL INS. CO. (continued)

Mr. Long noted for the record that he would not participate in consideration of the matter.

Mr. Gilman noted that he maintains a business relationship with Amica Mutual through his premium finance company. He offered to withdraw from consideration of the matter if either party objected to his participation. Neither party objected to Mr. Gilman's participation in the matter.

Agency principal, Carol Nabor, indicated that the agency had just recently lost a large commercial account which had decreased the agency's production volume. She explained that the agency's private passenger book of business had grown significantly during the past year and said that the agency is implementing a plan to produce more business primarily by advertising more in the community. Ms. Nabor then asked the Committee to grant the agency a one year extension.

Amica's representative, Russell Furlong, informed the Committee that the company has had no other problems with the agency relative to its CAR Rule obligations and considers it one of the Amica's best agency’s.

A motion was made by Mr. Gilman and seconded by Mr. Doherty to uphold the appeal and grant the agency a one year extension to develop a book of 250 vehicles.

The motion passed on a unanimous vote, with Mr. Long not participating.

MR

00.11 SUSHILA A. LULLA/CGU

Ms. Sushila A. Lulla requested a review contesting the termination of her agency’s Exclusive Representative Producer appointment by CGU for violation of Rule 14, C, CAR Rules of Operation, “failure to develop and maintain a minimum book of business”. Ms. Lulla currently maintains a private passenger book of business of 127 vehicles and $1,496 in commercial written premium. The agency was appointed as an ERP in March 1983 and is required to develop and maintain a book of business of at least 250 vehicles. In July 1999, the Market Review Committee granted the agency a one year extension to develop a book of 250 vehicles.

Mr. Gilman noted that he maintains a business relationship with CGU through his premium finance company. He offered to withdraw from consideration of the matter if either party objected to his participation. Neither party objected to his participation in the matter.

Rather than making a statement, Ms. Lulla asked that the Committee consider her written statement provided with the meeting agenda and use their discretionary authority in making an appropriate decision.

Having considered the information provided in Ms. Lulla's written statement, Mr. Gilman made a motion which was seconded by Mr. Doherty to grant the agency a one year extension to develop a book of 250 vehicles.

MR

00.11 SUSHILA A. LULLA/CGU (continued)

Mr. Hofmann expressed concern that the agency had previously been granted numerous extensions and has had ample opportunity to comply with CAR's minimum production requirements. He added that in his opinion, repeated extensions granted by the Committee is not consistent with the intent of Rule 14, C, and indicated that he could not support the motion.

CGU representative, Patricia Fahey, confirmed that there have been no problems with the agency and expressed no reservations about the company retaining the producer as an active ERP

The motion passed with 10 in favor, and Messers Hofmann, Silva, and Warren opposed.

There being no other business to come before the Committee, a motion was made by Mr. Doherty and seconded by Mr. Gilman to adjourn the meeting.

The meeting adjourned at 10:20 a.m.

TIMOTHY J.COSTAIN

Market Relations Manager

Boston, MA

July 18, 2000

Note: These records have not been approved. They will be considered for approval at the next Market Review Committee meeting.

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