THE AWARD WINNING HOUSTON CHAPTER Chapter of Distinction Outstanding Chapter Programming Outstanding Chapter Member Services July 2009 In This Edition: • Chapter President Message • Monthly Meeting • RIMS Benchmarking • Degree Program • Legal Updates • Scholarships • Professional Development • Welcome New Members • Job Postings • Chapter Meeting Place 2009 Houston Chapter Board Members and Advisors President Nancy Stucky The Mitchell Family Corporation nstucky@mitchellfamilycorp com First Vice President Victor Pivetta Key Energy Services, Inc vpivetta@keyenergy.com Vice President /Treasurer Stephanie Degreve Swift Energy Stephanie.degreve@swiftene rgy.com Assistant Treasurer Michelle Wilkerson Newfield Exploration Company mwilkerson@newfield.com FROM THE DESK OF THE CHAPTER PRESIDENT… Here we are in July, and I hope you had a fun and safe July 4th It is just unreal to me that the year is speeding by so quickly This month’s meeting will be fun! We will honor our Former Presidents, who all deserve a great deal of thanks There is a lot of time and thought that goes into being President, and we need to let each of them know we remember and appreciate them and the time and effort they took from their work and home life to the wonderful job they did They continue to contribute their time and experience to those of us who need lots of advice and several are still on the Board of Directors Please be sure to thank each and every one of them at the meeting! The speaker for our July 15 meeting is Richard V Baratta, Ph.D., P.E a Division Manager with Rimkus Consulting Group, Inc Dr Baratta will show us some incident scenarios and tell us about the tissue injury potential Injuries cost companies millions of dollars a year So, it should be of interest to many of us in the area Risk Management as we look for ways to analyze accidents and to help prevent them in the future There will be another Social (place and time to be announced) in September instead of a meeting This will be a good time to celebrate the end of summer, the beginning of the school year and the fall season It will also give us a chance to get to know one another better and meet the new members It will also be a great opportunity for you to invite your friends who might like to join our Society so they can learn about the many benefits of being a member The Fall Conference is just around the corner – only four months away Our theme this year is Survivor: Page of 13 Vice President/Secretary Sondra K Faul, CIC The University of TX HSC-H sondra.k.faul@uth.tmc.edu Vice President/Asst Secretary Cynthia Vickers, ARM El Paso Corporation cynthia.vickers@elpaso.com Membership/Attendance Jennifer Howard Gulf Coast Regional Blood Center jhoward@giveblood.org Associate Director/Membership Terry Owens Goodman Global, Inc terry.owens@goodmanmfg.com Public Relations/Newsletter John Lawson, ARM Goodman Global, Inc john.lawson@goodmanmfg.c om Job Placement Barbara Lewis Jacobs Engineering Group barbara.lewis@jacobs.com Chapter Liaison Jo Anne Lancaster Westlake Chemical Company jalancaster@westlake.com Education Sharon Guillory Rain CII Carbon, LLC sguillory@raincii.com Legislation Nikolas G Kapatos Sterling Bancshares, Inc nick.kapatos@banksterline.c om RIMS Delegate Ella Andrews Friedkin Companies, Inc eandrews@friedkin.com Houston We will have wonderful speakers and an Exhibit Hall that will surpass last year’s participation To provide time for everyone to get a chance to visit the Exhibit Hall this year, we will only have a key note speaker and two main speakers for the morning session The lunch and afternoon activities will remain the same Those of you wishing to have a booth please let me know as soon as possible We will post the requirements and price list on the website within the next week or so To make the Conference a success, we need lots of volunteers! If you would like to help with the Conference, please let one of the Board members know so we can put you in a slot where your interests are (meeting, golf tournament, etc.) Let’s all work together to make this the best Fall Conference ever! Please be sure to come to the July meeting – we love to see each of you and miss you when you are not there! AND, remember to RSVP so we will have plenty of food! Nancy Stucky July Meeting Topic and Speaker IN HONOR OF YOUR SERVICE TO THE HOUSTON CHAPTER OF RIMS Wednesday, July 15, 2009 11:30 AM – 1:00 PM Topic: BIOMECHANICS OF INJURY CAUSATION Speaker: RICHARD V BARATTA, Ph.D., P.E DIVISION MANAGER FOR RIMKUS CONSULTING GROUP, INC Please join us for The Biomechanics of Injury Causation discussion is designed to help the participant understand the mechanics of tissue injury and the injury potential associated with different incident scenarios The course will provide some familiarity with human anatomy, and will provide a variety of examples in which claimed injuries are analyzed in light of the incidents that reportedly caused them, so that personal injury allegations may be more clearly understood Page of 13 Past President Ginny Penzell, ARM El Paso Corporation ginny.penzell@elpaso.com RIMS Benchmarking With all the recent changes in the insurance market, an independent source of research is more powerful then ever Web Master Shawn Pickens sppickens@earthlink.net ARM Instructor Jim Drew Bowen Miclette and Britt, LLC jdrew@bmbinc.com The RIMS Benchmark Survey is the definitive resource regarding Total Cost of Risk, including data on premiums, limits and retentions across commercial insurance lines, as well as in-depth information on retained losses and risk management administrative expenses for US and Canadian companies You can get the 2010 copy for FREE (or the current 2009 book for a substantial discount-just $50 for RIMS members) Visit www.RIMS.org/book for more information Participate in the study using one of the two options: 1) Have your broker send in your data, and you get credit Go to www.RIMS.org/brokerform to download the Data Participation Letter, send a copy to your broker and a copy to this address This letter authorizes your broker to submit the data on your behalf Meeting Dates for 2009 August 19, 2009 September 16, 2009 Houston Chapter Fall Conference October 23, 2009 November 18, 2009 December 9, 2009 OR 2) Send in a schedule of insurance or go to www.RIMS.org/contribute to download and fill out our spreadsheet E-mail it or fax to +1.212.655.7453 Need to know which Insurance Companies wrote the most D&O, EPLI, Fiduciary, Property, Umbrella & Excess, and Workers Comp? The 2009 RIMS Benchmark Survey contains this data and shows you the top ten insurance companies for each cover by policy count and total premium for the last five years Insurance and Risk Management degree program at UHD In follow up to a roundtable discussion held 22 March 2007 about establishing an Insurance & Risk Management Center at the College of Business at University of Houston-Downtown (UHD), the College is pleased to share a review of the Center’s academic objectives, and program and financial updates The Center received final approvals by the UH System Board of Page of 13 Regents in August 2008 and by the State of Texas Higher Education Coordinating Board in December 2008 A search for an executive director is underway with program start-up expected in Fall 2009 In 2010, the College will produce its first graduates with a Bachelor in Business Administration with majors and minors in Insurance & Risk The Houston Chapter RIMS mailing address is 5090 Richmond Ave #86 Houston, TX 770567402 Management Semester scholarships ranging from $500 to $1,000 for IRM majors and from $250 to $500 for IRM minors will be awarded based on GPA Justification to create the Insurance & Risk Management Center is driven by several factors Chief among them is the difficulty and cost of finding qualified, professional, entry-level employees in the insurance industry, for which there is high demand Another is the shortage of professional development opportunities for people NOTICE: already employed in the industry A widely acknowledged resource for such employees are college programs offering a major in Effective January 1, 2008, the RIMS Society has changed their method of collecting Local Chapter Dues In the past there were two deputies included with the membership, then a charge for each additional deputy added Under the new structure they will begin collecting chapter dues on a per deputy member basis The new structure for the Houston Chapter Dues is $55 per deputy member The change will be reflected on the renewal invoice The dues structure for associate membership has not changed Insurance and Risk Management, a resource which is not as well developed at Houston’s four-year universities as it could be To be successful, the Insurance & Risk Management Center at UHD must excel in providing academic programs, professional training and development, outreach and public relations, and student and faculty support To drive this agenda, UHD must develop an array of resources around a special professor or executive to lead and grow the program The person who holds this position will: • with majors and minors in Insurance & Risk Management that will prepare individuals for a variety of skilled positions Please see our Chapter Website for additional information: WWW.RIMS.ORG/HOUSTON (sales, underwriting, adjusting, investigating, actuarial, finance, technology, or marketing) in the industry; • Fulfill a management training and continuing education mission that offers industry employees opportunities to or WWW.RIMS.ORG – Chapters – Houston Lead a Bachelors of Business Administration degree program develop existing and new skills, including preparation for certification examinations; • Solicit speakers for classroom and other engagements that promote the IRM industry and its contribution to the region’s economy; • Recruit practicing professionals to teach specialized IRM courses at UHD; Page of 13 • Recruit high school through college students to enter the IRM program; • Secure paid internships and scholarships for students; • Secure ongoing operating funds for the Center; • Generally promote the many positive aspects of the IRM industry and its importance to the economy; • Offer corporate on-site instruction where applicable The Insurance & Risk Management Center at UHD represents a prime example of an industry partnership in business education and an incredible collaboration to: • Further train and educate the industry’s existing employee base; • Offer employment to individuals being educated specifically in this industry; • Develop educational outreach and recruiting initiatives at elementary, middle, and high school levels Educational and Associations Websites: The College looks forward to establishing and building on this American Institute for CPCU and Insurance Institute of America www.aicpcu.org should have immediate questions, please call Dean Bates at (713) Charter Property Casualty Underwriters Society www.cpcusociety.org Institutional Risk Management Institute www.irmi.org The National Alliance www.scic.com Construction Risk and Insurance Specialist www.cris-ce.com For further Educational Opportunities Forms or Information, please visit the Chapter website at: http://houston.rims.org/Chap collaborative model with its industry friends and partners If you 221-8179 or Development Director Steve Sucher at (713) 221-8288 Legal Update Texas Supreme Court Holds Company Not Liable for Fatalities Caused by Fatigued Off-duty Employee: In a much anticipated ruling, the Supremes ruled today that an employer is not liable for automobile fatalities caused by an off duty employee, who had just finished up a particularly exhausting 12 hour night shift The principal issues presented by this case are (1) whether an employer has a duty to protect third parties from a fatigued employee en route home after a 12-hour shift and (2) whether the employer has a duty to train its employees about the dangers of fatigue In this case Escoto sued the employer (Nabors) after four members of her family died in a car accident allegedly caused by Nabors’ employee on his way home after working five 12-hour graveyard shifts Escoto alleged that Nabors was liable it had a duty to protect other people when its employee drove home after an exhausting shift and because the company failed to train its employees how to handle fatigue The Willacy County trial court entered a Page of 13 terWebsite/RIMSChapter.cfm ?CID=328 judgment in Nabors’ favor after a jury verdict for Escoto, reasoning that Nabors did not owe a duty to Escoto The Corpus Christi Court of Appeals reversed The Supreme Court today held that the employer had no duty to protect third parties from a fatigued off-duty employee and no duty to train employees about obvious dangers posed by fatigue The court reasoned that the holding in Otis Engineering Corp v Clark, 668 S.W.2d 307 (Tex 1983), in which the company acted to send a drunk employee home, cannot be extended to this case where the company’s only act preceded the employee’s shift and incapacity and amounted only to establishing work conditions that may have caused or contributed to the accident The employer merely established a shift schedule and allowed its employees to decide for themselves if they were too tired to drive following their shifts This did not amount to foreseeable risk to motorists on the road Because the risk associated with driving while fatigued is common knowledge and appears to have been appreciated by the employee who caused the accident, the employer owed no duty to train employees about those risks Nabors Drilling, U.S.A Inc v Francisca Escoto, et al (Tex, June 19, 2009) Contributed by Chamberlain McHaney U.S Supreme Court Increases Employee Burden of Proof in Age Bias Cases The Ruling In Gross v FBL Financial Services, Inc., decided on June 18, 2009, a deeply divided U.S Supreme Court imposed a heightened proof burden on employees to establish age discrimination against their employers In a 5-4 decision, the Court concluded that the literal text of the Age Discrimination in Employment Act (“ADEA”) does not allow a worker to prove discrimination by demonstrating that age was one “motivating factor” for the employer's adverse employment action Rather, in the majority’s view, workers must prove that age was the decisive factor or “but for” cause underlying the employer's adverse job action Unlike the burden shifting ping pong match in Title VII cases, the burden of persuasion in an ADEA case does not shift to the employer to show that it would have made the same employment decision regardless of age, even when a worker has produced some evidence that age was one motivating factor in the employer’s decision Contributed by Haynes Boone Scholarships The Houston Chapter of RIMS is happy to announce that two $1,000 scholarships will be awarded this year for children of RIMS members If you are a current Houston RIMS Chapter Deputy member and have a high school Page of 13 senior who will be attending college in the fall or have a child currently attending college, he or she is qualified to apply for one of these scholarships Please see the Chapter website for qualifications and the application form, which must be completed and returned no later than July 17, 2009 Further information can be obtained through: Houston Chapter of RIMS Scholarship Committee c/o Sharon Guillory Rain CII Carbon LLC 2627 Chestnut Ridge Road, Suite 200 Kingwood, TX 77339 sguillory@raincii.com Professional Development - Local The Houston Chapter of the Risk and Insurance Management Society, Inc (RIMS) will be sponsoring an ARM 56 class this Fall This course is part of a three semester specialty program leading to the Associate in Risk Management (ARM) Designation The course is open to the general public, including all risk management, insurance and safety professionals ARM 56 – RISK FINANCING CLASS LOCATION: Bowen, Miclette & Britt 1111 North Loop West, Suite 400, Houston, Texas CLASS START DATE: Tuesday Evenings–Starting August 18, 2009, 5:30 P.M – 7:30 P.M (ends – mid November 2009) COURSE LEADER: Jim Drew, ARM, CIC Office Phone: (713) 880-7172 E-mail: jdrew@bmb-inc.com EXAM DATES: October 15 – December 15 testing window at Sylvan Testing Centers by appointment COURSE DESCRIPTION: Students will learn about the nature, purposes and steps in risk management; identify and analyze the loss exposures of individuals and organizations; and develop and apply decision rules for choosing risk Page of 13 management situations techniques in specific TUITION POLICY The tuition per course, which does NOT include the exam fee or books, is $110 for RIMS Deputy Members and $135 for all others (including Associates of the Society) In the event the student cannot attend the class, tuition will be refunded until the first night of class After the first class has been held, the student will receive a CREDIT toward any of the ARM classes that may be held during the two semesters (12 months) following the class for which tuition was already paid GRANTS: Grants are available to those Deputy Members who wish to take an ARM course but are unable to due to financial hardship Candidates must apply through the education director (Sharon Guillory), provide a letter from their employer that the course in non-reimbursable, and write a one-page letter indicating why they feel they are deserving of the grant Recipients of the grants will be notified prior to the second meeting night of class The deadline for submitting an application is August 11, 2009 PAYMENT INFORMATION: Make checks payable to: Houston Chapter of RIMS Please mail your check and enrollment form to: Sharon Guillory Education Director – Houston Chapter of RIMS c/o Rain CII Carbon LLC 2627 Chestnut Ridge Road, Suite 200 Kingwood, Texas 77339 Phone: 281-318-2440 Fax: 281-318-2401 E-mail: sguillory@raincii.com Enrollment forms should be completed and returned no later than August 18, 2009 You also have the option of bringing the registration form and check to the first night of class Please call Sharon Guillory or Jim Drew for additional details concerning the class The form is available on the Chapter website CONTINUING EDUCATION (C.E.) CREDIT INFORMATION: The Texas Department of Insurance has approved this classroom course for 15 C.E Credit hours Students must attend at least 90% of the classes in order to qualify The Page of 13 Insurance Institute of America/CPCU has also received approval for 15 C.E hours for students who successfully pass the ARM exam Students must choose either the class instruction credits or the exam credits They may not choose both ORDERING BOOKS AND REGISTERING FOR THE EXAM: Books may be ordered through the Insurance Institute at (800) 644-2101 The cost for books is approximately $150 You may register for the exam at the same time you order your books The cost for the exam is $148 (for early registration) Please refer to the current AICPCU/IIA Key Information Guide for confirmation of test related fees and deadlines You can request a Key Information Guide from the Insurance Institute via the web at www.aicpcu.org, via e-mail at cserv@cpcuiia.org, or via phone at (800) 644-2101 CPCU PROGRAM Classes will meet for 15 weeks plus 1-2 review classes TUITION is $185.00 per person, not including books or exam fees Please order books or other study materials EARLY directly from the Insurance Institute: 1-800-644-2101 or Professional Book Distributors 1800-848-0773 CAUTION: Please order course materials that match your projected testing window, and verify they are correct when received before you write on them Please prepare Lesson for the first session as that material will be discussed the first day of class CPCU 560: Financial Services Institutions (Testing window target: January15 to March 15, 2010) Course Leader: Chris Flynn, CPCU When: Location: Questions: Wednesdays, beginning September 9, 2009 6:00 PM – 8:00 USI, 840 Gessner, Ste 600, Houston, TX 77024 6th Floor email: cflynn@bankfranklin.com ; phone: 832-656-529 IIA PROGRAM Classes meet for 12 weeks plus 1-2 review classes TUITION for INS is $165.00 per person, not including books or exam fees (can be ordered direct as indicated above) CAUTION: Please order course materials that match your projected testing window, and verify they are correct when received before you write on them Page of 13 Please prepare Lesson for the first session as that material will be discussed the first day of class INS21: INS22: NS23: Course Leader: When: Location: Questions: Property and Liability Insurance Principles (testing window target: January 15 to March 15, 2010 ) Personal Insurance (testing window target: January 15 to March 15, 2010 ) Commercial Insurance (testing window target: January 15 to March 15, 2010 ) ALL THREE, depending upon interest Karen Deran, CPCU, CIC, CRM Tuesdays, beginning September 1, 2009 5:30 PM – 7:30 PM USI, 840 Gessner, Ste 600, Houston, TX 77024 6th Floor email: kderan@gemins.com ; phone: 713-622-2330 Professional Development - National Enterprise Risk Management for the Advanced Practitioner September 17-18, St John's, NF Entrepreneurial Risk Management (ERMe): Risk Management as a Profit Center September 21-22, Chicago Developing a Risk Management Program for Your Organization September 24-25, Philadelphia Directors and Officers Liability and Insurance October 1-2, Houston Advanced Workers' Compensation Strategies October 5-6, New York Business Continuity/Disaster Planning and Management* October 13-14, San Diego Techniques of Risk Management October 19-20, New York Fundamentals of Insurance October 21-22, New York Risk Analysis Tools for Effective Risk Management* October 22-23, Las Vegas 2009 RIMS Enterprise Risk Management Summit For advanced ERM professionals November 5-6, New York Page 10 of 13 Chapter Member Honored Houston Chapter RIMS Deputy Member was recently named as one of the Top 100 Most Influential People in Finance by Treasury and Risk magazine Congratulations Pete! Welcome New/Renewed Members Courtney Herrington – The Mitchell Family Corporation Jane Reinert – McDermott International Inc Rondy Spardella – ESIS, Inc Keith Wright – Saber Risk Solutions LLC Please see the Local Chapter website and the RIMS.org Jobs Listing for details Job Postings National RIMS Website - Texas Risk Administrator Claims Analyst Director of Risk Management Surety Bond Account Manager Insurance Program Manager Director of Risk Assessment & Loss Prevention Claims Manager ABM Operations Analyst Dallas Area: Loss Control Consultant Claims Manager Insurance Program Manager Lector – University of North Texas Monthly Luncheon Meeting Place The Briar Club 2603 Timmons Lane Houston, Texas 77027 Telephone: (713) 622-3667 Page 11 of 13 Directions to The Briar Club The Briar Club is located at 2603 Timmons Lane, Houston, TX 77027 It is on the corner of Westheimer and Timmons Lane between the north - south streets of Edloe and Wesleyan Border Streets Between Wesleyan and Buffalo Speedway (N-S) and West Alabama and Westheimer (E-W) » East of Galleria towards downtown » West of Kirby and Shepherd From George Bush Intercontinental Airport (IAH) Go South on US-59/Eastex Freeway Exit Buffalo Speedway and turn RIGHT/North Turn LEFT on Westheimer Turn LEFT on Timmons Lane @ WhataBurger From William P Hobby Airport (HOU) Go North on I-45/Gulf Freeway Exit US-59 South toward Victoria Exit at Buffalo Speedway and turn RIGHT/North Turn LEFT on Westheimer Turn LEFT on Timmons Lane @ WhataBurger From Sugar Land Go North on US-59/Eastex Freeway Exit at Buffalo Speedway and turn LEFT under the Freeway Turn LEFT on Westheimer Turn LEFT on Timmons Lane @ WhataBurger From 290/Northwest Go East on 290/Northwest Freeway Take 610 South Exit at Westheimer and turn LEFT under the Freeway Turn RIGHT on Timmons Lane @ WhataBurger From Katy Go East on I-10 (Katy Freeway) Take 610 South Exit at Westheimer and turn LEFT under the Freeway Turn RIGHT on Timmons Lane @ WhataBurger From Kingwood Go South on US-59/Eastex Freeway Exit at Buffalo Speedway and turn RIGHT/North To Westheimer urn LEFT on Timmons Lane @ Whataburger Published by the Houston Chapter of the Risk & Page 12 of 13 Insurance Management Society Page 13 of 13