Season's Greetings Happy New Year_

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					                                               couver. The scholarships were contingent     other educational programs will just
  road-safety...                               on the youth producing films on road         cease to exist, and that some of the in-
  Continued from page 8                        safety topics. Some of the work created      evitable public criticism will be directed
                                               by these kids was of such a high calibre     at brokers.
meant by management of program lega-           that it was used as trailers in mainstream      It’s also possible that the K-to-12 edu-
cies is not totally clear. ICBC is currently   movie theatres.                              cation programs that were developed
reviewing its overall role in road safety.        Two items that were very popular          by the program will be expropriated by
   The Autoplan Broker Marketing Com-          with the public were the yellow “Cau-        ICBC or the Solicitor General’s office.
mittee, the MOUC sub-committee that            tion – School Zone” signs distributed           As someone who represented broker
has administered the road safety pro-          to public schools and the reflective Hal-    interests on the steering committee for
gram, has for the past few months dealt        loween bags available                                          the road safety partner-
with the housekeeping issues related to        through broker offices.                                        ship for almost its entire
winding the program down.                      At the moment, there are          Every child in B.C.          lifespan, I would sug-
   This much is known: ICBC will cease         no funds committed for          the past decade has            gest that the best-case
deductions of the road safety levy from        these items in ’08.                                            scenario would be a road
broker commissions as of Jan. 1, 2008. It         Of all the initiatives         been touched by              safety legacy that contin-
will be up to individual brokers whether       funded provincially, un-         one or more of the            ues to provide education
or not they wish to continue with com-         doubtedly the flagship          many programs that             to B.C. youth in a way
munity projects and commitments they           program is Way To Go!,           were funded by the            that honours brokers’
have developed over the past few years.        which provides tools                                           equity and contributions
At time of writing there has been no indi-     for teachers and parents             partnership.              thus far, and continues
cation of possible co-op arrangements.         to develop traffic-safe-                                       to involve brokers in a
   All “AutoplanBroker” programs at the        ty awareness and safe                                          meaningful capacity – to
regional level will no longer be funded by     routes to school for children in grades      “capitalize on brokers’ unique position
the partnership after Dec. 31, 2007. This      K to 7. This program has earned an in-       in the community,” as the program goals
will be a blow to the many community           ternational reputation thanks largely to     originally stated.
projects that have benefited from program      the effectiveness of the program and the        The broker value-add, from which
funding for many years. One of the long-       consistent funding, leadership and sup-      consumers benefit for all insurance
est-running was Summer Visions, which          port it has received and will continue to    transactions, was a major part of what
provided scholarships for inner-city and       receive until the end of the current school  brokers brought to the road safety part-
at-risk youth to participate in a summer       term in June ’08.                            nership – and it’s just as important, and
film-making course that operated out of           After that?                               perhaps more so, as the dollars they
Templeton Secondary School in east Van-           The worst-case scenario is that it and    contributed.




                          Season’s Greetings
                               to all and to all a
                          HappyNewYear!
                          Thank you from all the Staff and Management


                                  WESTERN UNDERWRITING MANAGERS LTD.
                                      Suite 720 – 666 Burrard St., Vancouver, B.C. V6C 2X8
                                           Telephone: 604-606-1200 Fax: 604-683-3857




www.ibabc.org                                                                                   BC BROKER    DECEMBER 2007 — PAGE 21
                                                            Congratulations
                                                     to the Class of                                                       2007!
                  Fellows, Chartered InsuranCe ProFessIonals - FCIP
   Mashood ali                               Gloria Gao                               raymond Chau Ming lau                   eugene roh
    Premier Marine Insurance Managers         Spectra Energy                           New World Insurance Ltd.                Zurich Canada
   Jan Brownridge                            Jasper hageman                           eugene ng                               Victoria F. shiah
    Munich Reinsurance Company of Canada      Commonwealth Insurance Company           The Economical Insurance Group          ---
   Jon Chae                                  Graham haigh                             darren ryan o’sullivan                  Frank K. wu
    ING Insurance Company of Canada           Gore Mutual Insurance Company            Ecclesiastical Insurance Office         The Economical Insurance Group
   Fanny Cheung                              david s. Johnston                        david Penfold *                         linda Yoshida
    The Economical Insurance Group            ICBC                                     Lombard Canada Ltd                      ICBC
                                             lawrence Kennedy                         Christina Pitkanen
                                              Rand & Fowler Insurance Agenices Ltd.    Canadian Northern Shield

                                 Chartered InsuranCe ProFessIonals - CIP
   rita algabre                              Cameron wayne Copeland                   Charlene Janzen                         hansel ngan
    Gore Mutual Insurance Company             American Home Assurance Company          Mardon & Campbell Insurance Brokers     Canadian Direct Insurance Inc.
   alexandra almeida                         Karen Cotter                             Vishal Jhaver                           teresa ngo
    ICBC                                      Insurance Institute of BC                Dobie Insurance Services Ltd            The Sovereign General Insurance Co.
   Kaori araki                               Mike dakin                               ray (rahmat) Jillan                     dave Pahkala
    Travelers                                 ICBC                                     The Economical Insurance Group          Coast Underwriters Ltd
   Portia au                                 Ian dalgleish                            Judy Johnson                            Marie Peck
    AXA Pacific Insurance Company             Wawanesa Mutual Insurance Company        Willis Canada                           Lombard Canada Ltd
   al Babul                                  Janet Crawford dorward                   etsuko Kaji-holley                      nicholas Pietras
    ICBC                                      Coastal Community Insurance Services     Lombard Canada Ltd                      Marsh Canada Limited
   sonia Baker                               Kimberly douglas                         Kathy Pui Yu Kwan                       Kari Price
    The Economical Insurance Group            CGI                                      Vancity Insurance Services Ltd          ICBC
   Kim Bannigan                              Bryan Finstad                            wennee lee                              wendy robin
    The Co-operators                          ICBC                                     The Economical Insurance Group          ICBC
   Kristin Barrette                          h. John Fong                             susan lehtinen                          andrew russell
    Mardon & Campbell Insurance               Regent Pacific Insurance Services        Wawanesa Mutual Insurance Company       Marsh Canada Limited
   dr. stephen Bath                          sunam K. Gill                            Man leung leung                         Bruce schroeder
    ICBC                                      Gore Mutual Insurance Company            Excess Markets (B.C.) Corporation       ICBC
   amie Bevilacqua                           randall Godfrey                          thomas liu                              Melissa stedman
    Coast Capital Insurance Services Ltd.     HUB International Insurance Brokers      Marsh Canada Limited                    ING Insurance Company of Canada
   Michelle Bodel                            Vicki Gregoriou *                        Yuanling (linda) liu                    Brian still
    Gore Mutual Insurance Company             ---                                      Wawanesa Mutual Insurance Company       Lombard Canada Ltd
   Michelle Brandson                         Maria Guercio                            Barry low                               amanda telford
    Commonwealth Insurance Company            Chubb Insurance Company of Canada        ING Insurance Company of Canada         Eagle Underwriting (Pacific) Inc.
   steve Canofari                            Kelly Gushue                             thomas J. luscombe                      Bonnie siu-to
    ICBC                                      The Preston Matthews Group Inc.          Munich Reinsurance Company of Canada    ICBC
   Josephine Chan                            Jeff hattingh                            david Mar                               Colin trinczek
    BFL Canada Insurance                      Marsh Canada Limited                     ---                                     Wawanesa Mutual Insurance Company
   amanda Chau                               stephen hawken                           darlene McBride                         tommy tsang
    Marsh Canada Limited                      The Economical Insurance Group           Aviva Elite & Traders                   The Sovereign General Insurance Co.
   anita Chen                                Kathryn hepher                           wendy McCracken                         sarah tung
    Marsh Canada Limited                      ICBC                                     The Dominion of Canada                  ING Insurance Company of Canada
   ho-Ming Cheng                             david B. hinton                          Kerry Mclaughlin *                      scott wallace
    ICBC                                      Johnston Meier Insurance Agencies        ICBC                                    Christie-Phoenix Insurance Ltd.
   Karina Cheng                              Mary hoang                               sara Mehrjou                            darrin r. will
    Wawanesa Mutual Insurance Company         Optimum West Insurance Company           Gore Mutual Insurance Company           Lombard Canada Ltd
   ray F. Chin                               tracy hon                                scott Misirlis                          Mary Zhao
    Ray F. Chin, Independent Ins. Adjuster    McLarens Canada                          Barnescraig & Associates                Optimum West Insurance Company
   Jean Chou                                 darren Imrie                             Fumi Murakami
    ING Insurance Company of Canada           Commonwealth Insurance Company           Aon Reed Stenhouse Inc
   debra Copeland                            Julia Ion                                elena neufeld
    The Sovereign General Insurance Co.       Sports-Can Insurance Consultants Ltd     Wawanesa Mutual Insurance Company                        * Honours graduates




            When it comes to insurance,
     a chartered insurance professional knoWs.
       Chartered Insurance Professionals and Fellow Chartered Insurance Professionals are                                                    C H A R T E R E D
     dedicated experts who have completed a rigorous qualification process requiring several                                                 I N S U R A N C E
                                                                                                                                             PROFESSIONAL
      years of study, strict adherence to a code of conduct and years of insurance experience.
     We salute the class of 2007 for their ethics, responsiveness and professional achievement.                                        www.insuranceinstitute.ca


PAGE 22 — BC BROKER           DECEMBER 2007                                                                                                              www.ibabc.org
      2007
                           Awards for the Insurance Institute of B.C.’s CIP and FCIP programs were presented
                        at its annual grad luncheon.
                         For the national awards, Amanda Telford of Eagle Underwriting (Pacific) Inc. received
                        the Canadian Board of Marine Underwriters Prize. Vicki Gregoriou, second runner-up,




     Grads
                        took the Insurers’ Advisory Organization Prize. Eugene Roh of Zurich Canada was the
                        runner-up student who received the Colin Atkinson Memorial Award.
                           For the B.C. awards, David Penfold of Lombard Canada Ltd. won gold – the Norman
                        Bortnick Memorial. Jan Brownridge of Munich Reinsurance Co. of Canada took silver, an
                        award sponsored by T. Michael Porter. The bronze award, also known as the Robert Yates
                        Memorial, went to Raymond Chau Ming Lau of New World Insurance Services Ltd.
         honourEd          For the CIP awards, Vicki Gregoriou was awarded gold – the Leonard J. DeVito
       for ExCEllEnCE   Memorial. Silver – the Malcolm C. Simpson Memorial – went to Kerry McLaugh-
                                                                                            lin of ICBC and the
                                                                                            bronze, sponsored
      fcip graduates                                                                        by Advance Claims
                                                                                            Service, was award-
                                                                                            ed to Steve Cano-
                                                                                            fari of ICBC. Wendy
                                                                                            Robin of ICBC was
                                                                            Wayne Hickey    the top grad from
                                                                              Instructor    the Vancouver Is-
                                                                             of the Year    land Chapter. Melis-
                                                                                            sa Stedman of ING
                                                                           Insurance Company of Canada was
                                                                           the runner-up for the Vancouver Is-
                                                                           land Chapter.
                                                                             Recognizing the top CIP instructor
                                                                           of the year, the David C. Skingsley
                                                                           Memorial Award went to Wayne
                                                                           Hickey, FCIP, CRM of the Methanex
                                                                           Corporation.


       cip graduates




www.ibabc.org                                                                BC BROKER    DECEMBER 2007 — PAGE 23
                                                                                        consumers, but none that provides the



     Mediated
                                                                                        full answer.
                                                                                           There’s the General Insurance Om-
                                                                                        budservice, which was established in
                                                                                        2002 and is based in Toronto. It handles


settlements for all
                                                                                        property and casualty disputes arising
                                                                                        from claims against federally regulated
                                                                                        insurers (www.giocanada.org). It doesn’t
                                                                                        deal with disputes involving non-feder-
         IDRSBC hopes new Insurance Act will make                                       ally regulated organizations, and there
                                                                                        could be obstacles for B.C. consumers in
         alternative dispute resolution the necessary                                   dealing with these issues at a distance.
           first step in resolving insurance disputes                                      There’s the Canadian Health & Life
                                                                                        Insurance Ombudservices, which han-
                                            resolving insurance disputes.               dles disputes for those lines of insurance
                                              Peter Wright knows a few things about     only.
                                            ADR as it relates to insurance. He is the      Major insurers like the Insurance
                                            managing consultant for the Insurance       Corp. of B.C. have in-house fairness
                                            Dispute Resolution Services of B.C.         commissioners, but these tend to deal
                                            (IDRSBC) – a service he founded nearly      with complaints about the fairness of a
                                            a decade ago after semi-retiring from a     policy, procedure or practice, not about
          By Trudy lancelyn                 50-year career in the insurance industry.   payments or the assessment of liability.
                                            In that decade IDRSBC has helped to            Regulatory bodies like the Finan-



P
         eter Wright has a vision.          resolve more than 750 disputes in every     cial Institutions Commission and the
           That vision, quite simply, is    area of insurance and warranties.           Insurance Council of B.C. will inves-
         that all insurance-related dis-      IDRSBC has submitted a proposal to        tigate complaints of potential regula-
         putes can be facilitated through   the Minister of Finance to consider us-     tory breaches, but don’t get involved
the use of alternate dispute resolution.    ing elements of IDRSBC and other such       in disputes between two parties (in
   And Wright and his board of trustees     services as models for amendments to        some cases they refer such cases to the
have a plan for achieving this vision: To   the new act.                                IDRSBC).
include provisions in the new Insurance       Wright is the first to acknowledge           Mainstream mediation resources
Act making alternative dispute resolu-      that there are already a number of very     include the B.C. Mediation Roster Soci-
tion (ADR) the necessary first step in      valuable services available to insurance    ety, the B.C. Mediation and Arbitration




PAGE 24 — BC BROKER   DECEMBER 2007                                                                                 www.ibabc.org
Institute, ADR service providers and
many law firms.

                                                  Animal Mortality
   Wright feels that IDRSBC provides a
good model for an Insurance Act provi-
sion in that it goes a step further in
assisting consumers in two ways. First,
it encompasses all forms and types of               Commercial
                                                   Farm Liability
insurance and warranties, both federal
and provincial, including but not lim-
ited to property and casualty, accident
and sickness, bonding and surety, long-
term disability, auto, travel accident,
marine, aviation, home warranty and
                                                  EQUINE INSURANCE
the like. Second, it provides consumers
                                                     UNDERWRITERS LTD.                                 Exclusive managing general agents for
                                                                                                            AXA Pacific Insurance Co.,
                                                   106 - 3701 East Hastings St., Burnaby V5C 2H6      Canadian Northern Shield Insurance Co.
with the ability to easily communicate              Telephone 604-293-1531 Fax 604-293-1248             and Sovereign General Insurance Co.
their insurance dispute needs, concerns
and interests to an objective, neutral and
experienced insurance party who can
help in working out a resolution with-
out any formal process taking place,
              through the means of com-


                                                                         FastBatch!
              munication, negotiation
              and facilitation.
                 The Homeowner Protec-
              tion Act has provided an
              effective model for manda-           ICBC COMPLIANT BATCHING & INVENTORY
   Wright     tory dispute resolution of                     CONTROL SYSTEM
              insurance claims. This leg-
                                                           Whether you are new to Automated Batching Systems or
islation was enacted in 1999 in response
                                                      looking for a more cost-effective and reliable application to replace
to the massive failure of exteriors on
                                                           your current system, FastBatch provides the solution!
multi-family buildings in B.C.’s coastal
climatic zone during the ’90s. The act re-    	    •	 Cost	effective	                               •	 RoadRunner	inventory	tracking
quires builders to be registered with the     	    •	 No	server	required	–	No	software	to	load	     •	 Agent	commission	reporting
Homeowner Protection Office (www.hpo.         	    •	 Detailed	customer	information	                •	 Inter-branch	inventory	transfer
bc.ca) and to qualify for warranty cover-
age provided by the private market.                              Schedule your preview now!
   The act gives homeowners the right                                          e-mail: fastbatch@shaw.ca
to request mediation if, after claiming                           ProWeb Insurance Software Solutions
against the warranty, they’re not satisfied                     (250) 334-8515 • Toll Free: 1-888-338-7702
with the warranty provider’s decision.                     Servicing		your		ICBC		batching		requirements		for		over		25		years
The homeowners and the insurer agree
upon a mediator. Both sides in media-
tions have found it beneficial to use the
IDRSBC in many of these instances be-
cause of its insurance expertise. (Please
see BC Broker’s February 2007 cover
story.)
   In Wright’s experience with IDRSBC,
he has had numerous insurance con-
sumers visit his office or call who are
crying inconsolably out of frustration
and desperation about their insurance
dispute. They often feel completely
powerless.
   “What many of these policy-holders
require is a listening ear and a person
who will offer a guiding hand. Even in
cases when it is found that there is no
legitimate claim, and that fact is neu-
trally and objectively explained by a
knowledgeable person, the insured will
customarily accept it.”
   The government of B.C. has clearly
demonstrated its increasing support
for alternate dispute resolution in a
                                         
                       Continued on page 30
www.ibabc.org                                                                                      BC BROKER     DECEMBER 2007 — PAGE 25
Newsbriefs
                                                                                              dents with exemplary academic achieve-
                                                                                              ments and community involvement.
                                                                                              Claire started in the insurance industry
                                                                                              at the Willowbrook Langley location of
                                                                                              Westland Insurance while still attending
                                                                                              high school. An accomplished musician
                                                                                              and athlete, she has also won awards for
                                                the Rental Vehicle Policy (ICBC form          her community volunteer work. This fall
       Vicarious liability cap                  APV281) in lieu of the Roadstar or Road-      Claire started a four-year nursing degree
           now in force                         side Plus packages from a broker that         program at Trinity Western University
   October’s BC Broker magazine included        offers a limit of $1 million.                 in Langley.
coverage about Bill 35, which caps the li-         B.C. motorists can also increase the          Scholarship recipients each received
ability exposure of auto dealers and auto       liability coverage on their Owner’s Cer-      a cheque for $2500. Applications for the
leasing and renting companies. These            tificate of Insurance up to a total limit     2008 scholarships are available online at
amendments are now in force. This liabil-       of $5 million which is then available to      www.ibabc.org.
ity is now capped so that lessors are only      them while driving rental vehicles.
vicariously liable for $1 million. Lessees                                                                remembered
are otherwise responsible for damages                 Scholarships awarded                       Retired Kamloops insurance broker Al
that may be caused while the vehicle is           Two important scholarships were             Black has died at the age of 87. Following
in their possession.                            awarded at the 16th annual Salute             a newspaper reporter and advertising
   Sellers under conditional sales agree-       Awards Dinner on Oct. 25 at the Pan           stint, he moved to the insurance busi-
ments are excused entirely.                     Pacific Vancouver. Proceeds from the          ness in 1953, becoming an early partner
   Clark Wilson has a paper available on-       dinner are used for the Salute scholarship    in Barton, Black & Robertson. In 1971, Al
line at www.cwilson.com/pubs/insurance/         recognizing students in the insurance         sold his interest in the firm and retired to
lm3/. To quote from the paper, authored         industry with outstanding career and          Salt Spring Island.
by Larry Mann, “Lessees in particular are       personal accomplishments.                        Nanaimo lost one of its strongest war-
well advised to obtain sufficient third-          The Salute 2007 academic scholarship        riors in the fight against breast cancer
party liability insurance to cover them in      was awarded to Chelsea Mae Smith.             with the passing of Lorri Marriott, who
the event of a catastrophic loss.”              Chelsea has a strong commitment to            worked in the Nanaimo office of Ca-
   On that note, we’d like to correct infor-    humanitarian works and community              nadian Northern Shield. After having
mation included in the October article:         involvement. She spent two weeks in           won a battle with breast cancer in 1983
   For vehicles rented by the day or week,      Guatemala building churches and               she became active in dragonboat racing,
the first layer of coverage to respond is       working with isolated children in their       and in 2002 she and her family were
the third-party liability coverage under        communities. She also volunteers at           instrumental in organizing the first and
the rental vehicle Owner’s Certificate of       Relay for Life events, Communities            highly successful Dragon Boat Festival
Insurance.                                      in Bloom and Creation Day Science             in Nanaimo. Sadly she lost her second
   If this amount is exhausted, the second      Camps to name a few. Working towards          round with the disease; she was 57.
layer of coverage available to B.C. motor-      a degree in education, Chelsea attends           Glinda Sweeney died peacefully Nov.
ists is the third-party liability coverage      Thompson Rivers University in Kam-            1 at the age of 87. She had a long career
under the rental vehicle portion of the         loops and plans to teach in elementary        as an adjuster at a time where there were
Roadstar or Roadside Plus packages that         school.                                       few other women in the business, and
carry third-party liability limits of $1 mil-     Claire Horton of Langley received the       raised six children. She loved golf and
lion and $2 million respectively.               2007 John F. Hamilton Scholarship which       belonged to the Quilchena Golf Club.
   A B.C. motorist can also purchase            was introduced in 1999 to honour stu-            tlancelyn@ibabc.org




IBABC went to Victoria Oct. 31 to brief MLAs as part of the Liberal Caucus Outreach Program and ask them to: 1) table a new Insurance Act
in the spring session 2008, 2) support the removal of broker involvement in refusal to issue to family maintenance debtors, and 3) to say
no to further refuse-to-issue requests such as the one passed by the Union of BC Municipalities in September. The response was encour-
aging, but there’s no specific progress to report yet. Shown here are the MLAs who stayed for a photo. Seated: MLA Katherine Whittred
with IBABC representatives Doug Guedes, Ted Lewis and Chuck Byrne. Standing: MLAs Joan McIntyre, John Rustad, Blair Lekstrom, Dennis
McKay, Dave Hayer, Ron Cantelon, Randy Hawes, Harry Bloy, Richard Lee, Val Roddick, Dan Jarvis and John Nuranney.
PAGE 26 — BC BROKER     DECEMBER 2007                                                                                       www.ibabc.org
www.ibabc.org   BC BROKER   DECEMBER 2007 — PAGE 27
 Council visiting brokerages in effort to
 enhance public service and protection
                                              and clarity on expectations and re-           an opportunity to have their practices
                                              quirements under a principles-based           reviewed from a regulatory perspective,
                                              framework.                                    with the goal of ensuring they are acting
                                                 As part of this new approach, Council      in accordance with the usual practice of
                                              established a new department named            the business of insurance and in accord-
                                              Regulatory Services. This department          ance with Council Rules.
                                              has been operating for over one year             Council also sees a benefit from this
            By rob Tanaka                     and it is comprised of three advisors         approach as it will assist it in keeping
                                              who provide guidance and direction on         abreast of marketplace practices and



W
               ith the introduction of the    proper practice, continuing education,        concerns, which ultimately should help
               Council Rules in 2005 and      errors and omissions insurance and li-        it continue to adapt to the ever-evolv-
               the move to a continu-         censing queries of a general nature.          ing industry in a timely and effective
               ous licence system, the           Recently, Regulatory Services began        manner.
Insurance Council of British Columbia         meeting with agencies and firms at their         Council looks forward to licensees’
is nearing completion of its efforts to       offices to review their business practices,   continuing support for these types of
introduce principles-based regulation – a     provide insight on current issues and         initiatives as it strives to identify ways
regulatory system that is based on guid-      offer guidance if necessary. These visits     in which it can be effective in provid-
ing principles rather than unnecessary        also include an assessment of whether         ing useful services to licensees while
and burdensome prescriptive rules.            errors and omissions insurance and            maintaining an adequate level of public
   The results of these steps are a stream-   continuing education requirements are         protection.
lining of Council’s processes and better      being met; however, the primary focus                            H    H    H

service to stakeholders. It has also posi-    is one of prevention and working with             Rob Tanaka, manager of Regulatory Services,
tioned Council to engage the industry         licensees to facilitate compliance.           welcomes any feedback you may have on these vis-
more proactively by offering guidance            Licensees should view these visits as      its. He can be reached at 604-688-0321 ext. 314.




                     Season’s Greetings
                               During this festive season, we at Wawanesa
                               send our heartfelt thanks to all our brokers
                                and friends in the insurance community
                                      for your continued support.
                              Our very best wishes for a Merry Christmas,
                               a happy holiday and health and prosperity
                                          in the coming year!




PAGE 28 — BC BROKER    DECEMBER 2007                                                                                         www.ibabc.org
                                                             we should be adding another 15% for          ings, B.C. still has a vast number of
  president...                                               profit and 15% for overhead (for a total     properties exposed to the dangers of
  Continued from page 5                                      of 30% more). We’ve asked suppliers          underinsurance due to the vagaries of
                                                             of these evaluation tools to regularly       cost estimates.
an accurate yardstick of what constitutes                    provide some clarity and guidelines to          Rest assured, IBABC will keep this file
a “high-value home” – especially in some                     the industry in how brokers should be        open and work with the representatives
areas of B.C. High value is a function of                    adjusting valuations. Some companies         of insurance companies and the vendors
features and finishing more than it is of                    automatically order a third-party inspec-    of evaluation tools. We will do so in an
dwelling size. We’re seeing a trend in the                   tion when the broker’s valuation differs     effort to satisfy the respective needs of all
increasing number of homeowners who                          from that of the evaluator. In light of      parties with the ultimate goal of meeting
choose to put their equity into a renova-                    MS/B’s recommendation for adding a           the needs of our insurance customers by
tion rather than buy up; new-construc-                       profit and overhead factor, companies        providing proper limits of insurance for
tion, price-per-sq.-ft. rules of thumb don’t                 are advised to provide some clarification    their dwellings and commercial build-
necessarily apply. You could have a 2,000                    on this issue to their brokers.              ings. Throughout this process insurance
sq. ft. bungalow with complicated con-                                    debris removal                  companies must recognize, and we
struction features and extremely high-end                       More thought must go into the cost of     must continually communicate to our
finishing that could easily exceed $600,000                  debris removal. Evaluation tools used        customers, that brokers are not building
to build. So when underwriters use arbi-                     by brokers and inspectors typically use      appraisers and we are only trying to help
trary thresholds based on living area, like                  a percentage of the estimated building       both parties to the insurance contract to
4,000 square feet, or a policy limit, such                   reconstruction cost to estimate future       arrive at a proper valuation for insurance
as $400,000, to establish what they believe                  debris removal costs. We should chal-        purposes.
to represent a high-value home, such                         lenge the status quo when estimating            My thanks and compliments to all the
thresholds are virtually useless. Not only                   debris removal. For example, the cost of     representatives of valuation system ven-
could underwriters save money on third-                      removing debris from a total fire loss on    dors, insurance companies and brokers
party inspections, but the evaluation tools                  a wood-frame commercial building situ-       for the time spent thus far in discussing
could gain more credibility if all parties                   ated on a flat building lot with no nearby   these very important topics.
agreed on some more transparency in the                      structures will be substantially less than      At this time, I would like to wish all
process. A simple move forward would                         the cost to cut up and remove steel and      our member brokers, along with every-
be to apply quality factors to the cost esti-                concrete debris from a steel frame and       body else connected to the insurance
mates as existed in the past. Most owners                    hollow concrete block structure situ-        industry, a very Merry Christmas and
have a fairly realistic feel for the design                  ated in a dense city area with adjacent      best wishes for a healthy, happy and
and construction of their buildings, so                      structures.                                  prosperous New Year.
the application of quality factors would                           Guaranteed replacement cost               tlewis@nanaimoinsurance.ca
not only add more transparency for our                          It is a compliment to our industry
customers, but would also add accuracy                       that most homeowners have guaran-
to the result.                                               teed replacement cost (GRC) insurance
         local conditions add-on                             to protect them in this time of rapidly
   Even though the software products are                     rising construction costs. GRC insulates
supposed to reflect actual reconstruction                    our customers from any shortcomings
costs within the region, it’s evident that                   caused by our valuation systems. We all
the valuations aren’t keeping up with                        need to remain committed to GRC and
the real-world costs here in B.C. MS/B                       take the necessary steps to maintain it.
has confirmed that brokers are expected                      We need look no further than the many
to adjust reconstruction costs to reflect                    homeowners in California recovering                  Aurora Underwriting
contractor’s profit and overhead for their                   from wildfires and in Louisiana recover-                Services Inc.
particular market. For example, MS/B                         ing from Hurricane Katrina to see what’s              570, 10310 Jasper Avenue
builds 15% into their costs for overhead                     in store for us if GRC is abandoned.                   Edmonton AB T5J 2W4
and profit. This is working well for                            Because GRC does not extend to                         Tel: (780) 442-2240
                                                                                                                  Toll-free tel: (866) 328-1314
the Ontario market. However, in B.C.                         rented dwellings and commercial build-
                                                                                                                       Fax: (780) 428-8143
                                                                                                                  Toll-free fax: (866) 428-8143


                                                                                                              Commercial
   Brokers Errors                                                                                              Wholesale
     & Omissions                                                                                                BROKER
       Insurance                                                                                              FOR BROKERS
                                                                                                                 Property • CGL (incl. Truckers)
                                                                                                             Cargo • COC • Umbrella/Excess
            Call Diane Watson at 604-629-2670                                                                 Auto Physical Damage (incl. Logging)
                                                                                                             Special Events • CEF • Aviation
                                                1500 - 1166 Alberni St.                                        High Value Homes • Fine Arts
                                              Vancouver, B.C. V6E 3Z3                                         Cross Border • Product Recall
                                                 Phone: 604-683-5583
                                                   Fax: 604-683-8032
                                                                                                                     Stand Alone Crime
   Metrix Professional Insurance Brokers Inc.     dwatson@mpib.com
                                          www.metrixprofessional.com                                              Please visit our website at
              Appointed broker for Insurance Brokers Association of B.C.                                         auroraunderwriting.com

www.ibabc.org                                                                                               BC BROKER     DECEMBER 2007 — PAGE 29
                                                                                                     the acceptable contract and MRS uses and,
  Mediated...                                        exec. director...                               as a result, in effect some business models
  Continued from page 25                             Continued from page 5                           have to readjust back to the intended
                                                                                                     uses. It may be that ICBC, in future, will
great number of ways over the years.                  The new inventory control rules seem to        be willing to adjust their contract, and if
Extending such provisions in the new               force the use of couriers or other non-licensed   so IBABC and our members will want
Insurance Act could be just one more way           people, maybe even cab/taxi companies to          to be involved. However, IBABC will
of doing so.                                       transport inventory and data to the broker’s      continue to support ICBC and its contract
   Preliminary alternate dispute resolu-           office, perhaps risking privacy complaints?       provisions as well as its other initiatives
tion for insurance disputes would yield               Our understanding is that the road-            against unethical and/or fraudulent
direct and immediate savings in terms              runner licensee is responsible for the            behaviour. Clearly, as well, proper dis-
of financial cost, time and energy for             inventory and data, and is expected to            closure to the client and adherence to
both insurance consumers and insur-                personally ensure that those items are            privacy guidelines is in the best interest
ance providers. The legal system in B.C.           secured at the agency-contracted office           of consumers and our industry.
would be more effectively utilized if              of record at the close of business each              How do we proceed from here?
there were fewer insurance disputes go-            day. I am not sure ICBC will be allowing             I think it is clear that it may take some
ing to litigation. The insurance industry          uninvolved third parties to handle that           adapting for a few brokers to comply and
would take a significant positive step to-         responsibility; however, it is very clear the     we all can acknowledge that it is frustrat-
ward increasing its image and consumer             licensee and the ICBC contract holder re-         ing when service and convenience may
confidence.                                        main responsible for any privacy breaches         be somewhat constrained; however, the
   If IDRSBC’s recommendations are in-             of personal data or financial information.        broker’s primary duty to place the con-
cluded in the new Insurance Act, which,            Security remains a top priority of ICBC           sumer’s interest first also has to co-exist
it is hoped, will be introduced in the             and again IBABC supports that priority.           with our adherence to bona fide business
Legislature in the spring 2008 session,               Why the change and how did we get to           rules and regulations. Business develop-
“there would be no further need for the            this point?                                       ment should not occur to the detriment
services of IDRSBC” as it today exists,               Change or “new” isn’t really what              of our obligations to our insurer partners
Wright says. And he could conceivably              these re-launched MRS rules are all               and other stakeholders. Can business
be out of a job.                                   about. Other than a few tweaks, the MRS           rules and regulations be changed? Of
   At 80 years young, he might consider            rules – as I say above, re-emphasized             course, but through a proper process
retiring. Again.                                   rules – are the same as they have been for        and, from IBABC’s perspective, with
                   H    H    H                     many years. Over the intervening time             consumers’ and our members’ best in-
    For more information go to www.ibabc.org and   since the launch of the ICBC Extranet, it is      terests always in mind.
click on Dispute Resolution.                       clear that some brokers pushed out from               cbyrne@ibabc.org




                                 Introducing…                                                           Index of advertisers
                                 Joe Escribano                                                          Access Premium Financing apfin.ca............. 9
                                                                                                        Aurora Underwriting auroraunderwriting.com.29
                                                                                                        Automotive Retailers ara.bc.ca............ 24
                        ServiceMaster is pleased to present Joe                                         Aviva avivacanada.com. ........................... 18
                        Escribano, Director of Marketing and Sales                                      Axa Pacific axa.ca................................... 2
                        for the Lower Mainland. Joe brings to his new                                   Bank of Montreal bmo.com.................. 15
                        position 23 years’ experience as an independent                                 Barclay Restorations barclayrestorations.ca.13
                                                                                                        Canada WorldWide canadaworldwide.ca... 4
     insurance broker in B.C. plus seven years’ experience in the                                       Canadian Northern Shield cns.ca........... 32
     restoration industry.                                                                              Coast Claims coastclaims.com.................. 14
       ServiceMaster would also like to announce the opening of its                                     Crawford Adjusters crawfordandcompany.ca. 5            2
                                                                                                        Equine Insurance equineunderwriters.com.25
     new, larger premises at 123 – 5589 Byrne Rd., Burnaby, B.C.
                                                                                                        Family Insurance Solutions familyins.com.11



             Fire & Water
                                                                                                        Gore Mutual goremutual.ca.................... 20
                                                                                                        Guarantee Company gcna.com............ 12
                                                                                                        Guardian Risk Managers guardianrisks.com.12


           Damage Specialists                                                                           ICBC icbc.com......................................... 27
                                                                                                        ING Insurance Co. ingcanada.com..............31
                                                                                                        Ins. Institute of B.C. insuranceinstitute.ca.22
                  65 branches across Canada from coast to coast                                         Ins. Institute of Canada insuranceinstitute.ca.16
                                                                                                        Metrix metrixprofessional.com................... 29
                                                                                                        On Side Restoration onside.ca.............. 20
                                                                                                        Pacific Marine pacificmarine.ca. .............. 15
                                                                                                        ProWeb Software prowebinfo.net............. 25
                                                                                                        ServiceMaster servicemaster.ca. .............. 30
                                                                                                        Special Risk srib.ca................................ 14
                                                                       www.servicemaster.ca
                                                                                                        Wawanesa wawanesa.com. .................... 28
                                                                                                        Western Underwriting Managers. ... 21             .
     24-hour Emergency Service 604-435-1220                                                                  westernunderwriting.com



PAGE 30 — BC BROKER         DECEMBER 2007                                                                                                        www.ibabc.org
Making a claim is never easy, but at ING we are committed to
making the process as painless as possible. We know our
customers want priority service and quality repairs. That's
why we've introduced the ING Rely Network™ - a carefully
selected group of qualified auto repairers. When you
choose a Rely repair shop, here's what you can expect:

• FASTER REPAIRS - Rely shops can begin work
   immediately, without waiting for an ING adjuster
   to physically inspect the vehicle.

• PRIORITY SERVICE - Repair shop staff will
   review the work order with you, arrange a
   rental vehicle, give you a delivery date
   (and meet it), and clean your vehicle
   inside and out before returning it.

• A LIFETIME GUARANTEE - we unconditionally
   guarantee the work of our Rely Network shops for as
   long as you own your vehicle.

We hope your customers never need to make a claim
but if they do, the ING Rely Network is there to help.




www.ibabc.org                                                  BC BROKER   DECEMBER 2007 — PAGE 31
                            BestWishes...




                                     ...and sincerest gratitude.
                         Thank you to our broker partners. Your business
                       and support have made our future together very bright.
                               Enjoy a happy and safe holiday season.




PAGE 32 — BC BROKER   DECEMBER 2007                                             www.ibabc.org

				
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