Re: [AGA-mcm] Invoiced and confused

[" Mike Hellweg" <mhellweg511@charter.net>]

Folks,

I've put in a request for a bid with the company that is providing coverage 
for the ALA.  I'll let you all know when I hear back.  It might be a day or 
two.

In these overly litigious times, it is irresponsible to run a national 
organization without both an umbrella liability policy of at least a million 
$ and have all persons who regularly handle money bonded.  It's just a cost 
of doing business.  Expensive?  Yes.  But not as costly as the alternative.

As for bonding, having a trusted member walk off with the money happens more 
frequently than anyone would care to admit.  It has happened to more than a 
dozen fish clubs in the past decade, even one national organization.  Even 
religious organizations have the problem with priests and ministers, so it's 
not saying you can't trust anyone - it's just the way things are.

One lawsuit (and anyone can sue for any reason -all they have to do is find 
a hungry attorney) will wipe out the treasury.  After the treasury is empty, 
in some cases they can also go after personal assets of the officers and, in 
some cases, the board as well.

Frankly, I'm surprised the hotels have not asked this question.  We usually 
have to sign a waiver for our shows stating our club has liability coverage 
and give them a copy of our policy.

Lack of a liability policy due to cost is not a sound operational strategy. 
I realize this is not an elected BOD, but we still have a fiduciary duty to 
the membership to protect their assets.  Failure to do so is negligence. 
Yes, it is costly, but it is entirely necessary.

Mike


----- Original Message ----- 
From: "David Lass" <davidlass@villasunscape.com>
To: "AGA Advisory Committee" <aga-mcm@thekrib.com>
Sent: Thursday, August 10, 2006 2:13 PM
Subject: Re: [AGA-mcm] Invoiced and confused


>I also am not sure what this was for -- which is why I sent it to Scott
> instead of the circular file. The only thing I remember us having was a 
> bond
> in case the Treasurer (or perhaps any office or board member) absconded 
> with
> the cash. I was under the impression that it had lapsed well before Scott
> took over Treasurer from me, sincer I'm pretty sure we had decided not to
> renew it.
> David
> ----- Original Message ----- 
> From: "S. Hieber" <shieber@yahoo.com>
> To: "AGA Advisory Committee" <aga-mcm@thekrib.com>
> Sent: Thursday, August 10, 2006 9:41 AM
> Subject: [AGA-mcm] Invoiced and confused
>
>
>> 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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>
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