Re: [AGA-mcm] Invoiced and confused

["S. Hieber" <shieber@yahoo.com>]

Thanks,  it takes a while to find specific topics just hunting and pecking 
month by month.
 
With your help I zeroed in on May 2000. Looks like a three year bond for $485, 
which would have come up again in 2003 and again about now.
 
But I still want to see the policy to see if it names the Officer (Treasurer) 
or a specific person (David) or what. Plus we don't seem to have the bond any 
more.
 
Based on the May emails, the coverage is for up to $25k -- which then was about 
all our cash assets but now is a bit less than half. If I'm right in my guesses 
about the pricing, $50k would cost about $700 for thee years.
 
However, I got the impression when talking with the vendor on the phone that 
the $485 amount was an annual fee.
 
Continuing with the guesses, I'm figuring that David was the named party whose 
performance was bonded, not any particular office or officer. So I think we 
don't want to pay this invoice for that coverage for the next three years. I'd 
have to see the bond to know if any of that last year or 2 could have saved but 
that is water under the bridge. In any event, I think we want to cancel or 
revoke this bond or at least report it lost and null.
 
If we were trying to obtain business lines of credit or business loans, the 
creditors might require surety bonding of some AGA staff, but for ourselves, 
I'm not sure it's an expensse we need. Does it make you feel more comfortable? 
I think we're more likely to lose AGA assets in a liability suit than from 
malfeasance -- as evidienced by the much higher insurance costs for liability 
protection. We're foregoing liability insurance. Maybe we should forego the 
surety bonding too.
 
We can discuss whether to bond me when I get back. Or you can talk among 
yourselves while I'm gone.
 
sh
 
 
----- Original Message ----
From: Erik Olson <erik@thekrib.com>
To: AGA Advisory Committee <aga-mcm@thekrib.com>
Sent: Thursday, August 10, 2006 9:50:55 AM
Subject: Re: [AGA-mcm] Invoiced and confused


I think David was bonded as treasurer.  Did a search for the term "bond" 
in the e-mail archives; Check June 2000 archives of aga-sc.  I didn't 
think it was very expensive.

Now I have no idea how that stuff is renewed or how much it cost to start. 
I would have assumed it's a yearly renewal or something.

David?

   - Erik


On Thu, 10 Aug 2006, S. Hieber wrote:

> Hi folks, in what follows I might sound cynical, but I'm just trying to 
> perform due diligience.
>
> I have an invoice for about $500 from a vendor for an insurance company. 
> David was kind enough to forward the invoice to me when he received it in the 
> mail, along with a note that it might be for "employee bond" (or perhaps the 
> word was "fund")
>
> I do remember that we discussed insurance a few times over the last few 
> years. I thought we had decided to stop purchasing the insurance because it 
> was too expensive. Otoh, perhaps I am forgetting nearly as much as I ever 
> knew about any of this.
>
> The best I could determine over the phone with a person representing the 
> party that sent the invoice, this payment would be compensation for the 
> provision of a bond but it's not clear exactly what the bond covers. Perhaps 
> a surety bond to mitigate harm to the corporation if the Treasurer (or some 
> other party or perhaps some specific named person) commits some wrongful act.
>
> I don't recall seeing a bond or insurance policy statement in my paperwork. I 
> don't recall ever ordering, or issuing a payment for, insurance or for a 
> bond. However, according to the person I spoke with representing the vendor, 
> the vendor automatically renews each year by paying the insurance company and 
> and then sending us a bill -- they said that is their policy. I advised them 
> that it is not mine and I cannot make any payment without documentation of 
> what the payment is for -- I also advised that I cannot be automatically and 
> repeatedly charged in perpetuity -- since prior notice was sent of the 
> intention to charge, we may cancel if we so wish.
>
> I'll know the specific obligations of the AGA in this regard once I see the 
> documentation.
>
> I asked them to forward me a copy of the bond or other documentation of the 
> services being provided in consideration for the invoiced payment.
>
> I will be away until about Aug 30, after which time I can take a look the 
> documentation the vendor sends me. It could be that, if this is regarding a 
> surety bond and the bond has been lost, then we could not collect on the bond 
> and payment would be imprudent. Whether a new bond is sought is another 
> discussion. Meanwhile, if anyone knows more than I do about this, feel free 
> to make recommendations.
>
>
> sh
>
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-- 
Erik Olson
erik at thekrib dot com
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