Masonry Magazine March 1975 Page. 29
MCAA Insurance Up-date
Richard Lietz
CNA/insurance
In 1972 the Executive Board of MCAA asked its insurance consultant, Walter T. Derk of Fred. S. James and Co. in Chicago, to look into the practicalities of establishing a general business, property and liability insurance program as a membership benefit. Mr. Derk also was to investigate the possibility of a Workmen's Compensation Plan as part of the over-all membership benefit package.
After perusing proposals from several carriers interested in writing association coverages, Mr. Derk rejected some of the programs submitted while others were withdrawn for various reasons. The list was narrowed to six, then to two, and finally to the program proposed by CNA/insurance.
Why CNA? "First, because of the way they evaluated the MCAA membership," Mr. Derk explained. "They didn't rely on what the other insurance companies were doing. They made surveys-both in person and on the phone and thoroughly investigated the market, in this case, the membership of MCAA."
When CNA finished its findings it reported: "We regard your membership as the 'cream' of the masonry industry. By and large they are above average in prosperity, awareness and imagination. They deserve to be treated accordingly." In response to the research findings, both a General Business Insurance and Workmen's Compensation program with a group dividend feature were proposed for endorsement by the MCAA Executive Board.
Nice words, but what about the plan? The MCAA Board approved the CNA proposal for three principal reasons:
* It offered a viable alternative to the Workmen's Compensation individual rating plans. CNA provides a dividend possibility in addition to fixed premium rates.
* CNA agreed to work hand-in-hand with MCAA on a broad-based safety program.
* CNA provides a network of agents skilled in handling contracting accounts throughout the nation.
The MCAA plan makes possible the opportunity for dividends. In states which permit such a plan, premiums paid by individual members go into a pool. At year's end, the total losses for all participants plus CNA expenses are deducted from the premium pool. The amount remaining is available in the form of dividends to participants on a pro-rata basis.
Thus if the net dividend remaining in the pool is $100,000 and Company A paid in 2% of the total premium and Company B paid in 1% of the total, Company A would receive a $2,000 dividend and Company B $1,000. If losses plus CNA expenses amount to more than the total premium in the pool, no dividends will be paid but neither will policy holders be billed more.
Since the program was started in May, 1973, acceptance by the MCAA membership has been outstanding. Specifically:
* 190 members have joined the program as of December 31, 1974.
* $2.4 million of written premium was developed as of December 31, 1974.
Walter T. Derk
MCAA Insurance Consultant
With interest in practical effects of the 1974 Pension Reform Act continuing to be extremely high, MCAA has selected the nationwide facilities of Modern America Corporation, an affiliate of CNA/insurance, to provide members with expert pension and profit-sharing plan consultation.
Following extensive investigation on our part, the Dallas-based pension specialists were appointed to give personal one-on-one consultation and tax advice without cost as part of MCAA's endorsement of the Modern American Corporation/CNA Dual Dollar Retirement Plan.
You may now arrange for a personal consultation to learn how the new pension law will affect you, your company, and your employees. IRS-approved prototype plans are available to implement Qualified Pension Plans at significant savings, since there are no professional fees involved. If your company does not now have a Qualified Pension Plan, any employee may put away $1,500 in his Individual Retirement Account and take a tax deduction. All of these changes and more are ready for explanation and determination whether they would operate to your benefit.
Principal beneficiaries of this new consultation service are likely to be those members who may presently have no formal pension or profit-sharing plan but are eligible for tax savings permitted by the new Act. A firm commitment has been made to annually re-evaluate any plan inaugurated now, to make certain that it continues to meet members objectives and needs. Examination of existing plans is also in order, but there is no intention to disrupt what is already in force and working.
Because of the specialized nature of the variable pension field, even to the point of requiring specific training and licensing, there is no direct connection between this Modern America Corporation facility and the MCAA/CNA Business Insurance Program. There is no obligation to participate in one or the other, and the pension expert who calls upon you will make no effort to discuss other coverages or services outside his area of particular competence. Members can feel comfortable, then, in discussing these specific programs with specialists who do nothing else.
Notification of this expanded MCAA Pension Plan facility will be sent to each member by mail, but there is no reason to wait. If you wish a prompt consultation, just call or write Mr. C. G. Thompson at Modern America Corporation, 6250 LBJ Freeway, Dallas, Texas 75240 (telephone toll free 800-527-2360).
Group Accidental Death Insurance Program
Aside from providing a designated principal of each member-firm in good standing with $1,000 free Accidental Death & Dismemberment Insurance, MCAA offers through CNA/insurance voluntary coverage up to $100,000 at attractively low individual and family plan rates.
Not just travel accident protection, this 24-hour coverage applies anywhere in the world, on or off the job, paying in addition to any other benefits which may be