THE AWARD WINNING HOUSTON CHAPTER Chapter of Distinction Outstanding Chapter Programming Advancing the Risk Management Profession January 2009 In This Edition: • Chapter President Note • Meeting Notice and Topic • Most Important Legal Decisions in 2008 • 2009 RIMS on the Hill – Austin • Chapter Membership Directories • Educational Opportunities – ARM • Enterprise Risk Management • 2009 National RIMS Conference • Professional Development Schedule • • Job Postings • Chapter Meeting Place 2009 Houston Chapter Board Members and Advisors President Nancy Stucky GPM, Inc acunavlaw@aol.com First Vice President Victor Pivetta Key Energy Services, Inc vpivetta@keyenergy.com Treasurer Stephanie Degreve Swift Energy Stephanie.degreve@swiftenergy com Assistant Treasurer Michelle Wilkerson Newfield Exploration Company FROM THE DESK OF THE CHAPTER PRESIDENT… Happy New Year, everyone I hope each of you had a great holiday season, was able to get plenty of rest and are ready for the New Year Please make your plans to attend the RIMS meetings each month this year Without your attendance and participation, we cannot have an effective program As I look over the last year, we had some successes and some very hard times On the upside, your Board listened to your requests and worked hard to make the meetings relevant to your jobs and interesting at the same time We offered more CE Credits to help give you an extra reason to attend the meetings We moved the meetings to a more central place, and everyone seems to like it better We had an after work social, which was a great success Our Wellsprings party was wonderful, and we provided some precious children a nice Christmas, including a visit from our Santa Claus Many of these children would not have otherwise had any presents this year and were thrilled with their gifts Of course, the hard times reference is to Hurricane Ike which devastated the Houston area Many of our members lost their homes and jobs as businesses were destroyed or heavily damaged However, the Chapter was still able to offer a great Fall Conference, which was warmly received We had great speakers, a new Exhibit Hall, and it was well attended even though many were trying to overcome the obstacles caused by the hurricane Page of 10 mwilkerson@newfield.com Page of 10 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 The Blood Bank 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.com 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 Associate Director/Education Shona Bascon Shell Oil Company shona.bascon@shell.com Legislation Nikolas G Kapatos Sterling Bancshares, Inc nick.kapatos@banksterline.com RIMS Delegate Ella Andrews Friedkin Companies, Inc eandrews@friedkin.com If you were caught in bad weather and missed our December meeting, you missed a great time Chad Rosenberg with Rosenberg and Parker first taught us about the different type of cheeses We had plenty of different cheeses to try with a glass of wine Then Chad discussed Sureties and gave each attendee a copy of his book, “Commercial Surety for Dummies.” This was the first time we had our meeting in the evening, and based on the response, we will plan to it again Being your President this year is a great honor, and I am very excited about the year to come We have a tremendous Board this year, and I’m looking forward to working with them to continue to make the Houston Chapter a great one We have some long-time Board members, some returning Board members and a new member, so I look forward to a great year Please let any of us know if you have ideas we can incorporate to make the Chapter even better This year the Board is planning some great speakers and more socials with lots of networking opportunities Please mark your calendars now to attend as many meetings as you possibly can Be sure to watch the calendar on our website for meeting notices and other exciting items of interest Nancy Stucky January Meeting Topic and Speaker Wednesday, January 21, 2009 11:30 AM – 1:00 PM Topic: Product Liability and Subrogation Our speakers for this month’s meeting are Mark Wagenhoffer, an electrical engineer, and Darold Bittick, a fire investigator, with SEA Limited Houston The session will discuss Product Liability and Subrogation from an expert’s perspective with an emphasis on illustrating to companies how and when to use their expert for the best possible results in Product Liability cases There will be a focus on the stages of proving different types of product defects, cases involving fire origin will also be covered due to many Product Liability and Subrogation cases involving fires Additionally, the discussion will include evidence handling, documentation and the importance of maintaining the evidence integrity in the investigation for favorable results Page of 10 Past President Ginny Penzell, ARM El Paso Corporation ginny.penzell@elpaso.com Web Master Shawn Pickens Advisory Services, LLP spickens@deloitte.com ARM Instructor Jim Drew Bowen Miclette and Britt, LLC jdrew@bmbinc.com Meeting Dates for 2009 January 21, 2009 February 18, 2009 Joint Meeting with CPCU hosted by RIMS March 18, 2009 April 15, 2009 47th Annual RIMS Conference April 19 - 23, 2009 Orlando, Florida May 20, 2009 June 17, 2009 July 15, 2009 August 19, 2009 September 16, 2009 Houston Chapter Fall Conference – TBA November 18, 2009 December 9, 2009 Most Important Legal Decisions in 2008 The Texas Supreme Court has shown that it is not afraid of hard work or of changing its mind Here’s a quick recap of the Court’s work this year In PAJ, Inc v Hanover Insurance Company, 2008 WL 109071 (Tex 2008), the Texas Supreme Court ruled that PAJ’s failure to notify Hanover of a lawsuit against it until four to six months had passed without prejudice to Hanover was an insufficient basis for Hanover to deny PAJ’s claim under its CGL policy In reaching its decision, the court distinguished its earlier decision in Members Mut Ins Co v Cutaia, 476 S.W.2d 278 (Tex 1972) (holding prejudice not required), pointing out that the Texas Department of Insurance changed the relevant provision in CGL policies in Board Order 23080, which requires a mandatory endorsement to all Texas CGL policies that requires a showing of prejudice when the insured fails to comply with the prompt-notice provision On rehearing, in Excess Underwriters v Frank’s Casing, S.W.3d (Tex 2008), the Court withdrew its three-year old opinion that initially created a firestorm in the Texas insurance industry (and also lead to great consternation with commercial insureds) regarding the rights of reimbursement that a liability carrier possesses under Texas law when it pays a potentially non-covered claim But, after keeping the industry waiting for more than two years for clarification since it granted the rehearing, last Friday a deeply divided Court reversed course by withdrawing and disregarding its earlier decision and refused to recognize an exception to the Texas rule that an insurer is only entitled to reimbursement for settling a claim against its insured if (1) the policy provides for it, or (2) the insured has given “clear and unequivocal consent to the settlement and the insurer’s right’s to reimbursement.” In Fairfield Insurance Co v Stephens Martin Paving, L.P., 2008 WL 400397 (Tex February 15, 2008), the Court in a limited holding, found “Texas public policy does not prohibit coverage under the type of workers' compensation and employer's liability insurance policy at issue in this case.” In reaching its decision that coverage for punitive damages was not against Texas public policy, the court focused on the statutory workers’ compensation scheme and accompanying insurance regulations In National Union fire Insurance Co v Crocker, 2008 WL 400398 (Tex February 15, 2008), the Page of 10 The Houston Chapter RIMS mailing address is 5090 Richmond Ave #86 Houston, TX 77056-7402 NOTICE: 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 Please see our Chapter Website for additional information: http://houston.rims.org/ChapterW ebsite/RIMSChapter.cfm?CID=328 or WWW.RIMS.ORG – Chapters – Houston Texas Supreme Court concluded that “insurers owe no duty to provide an unsought, uninvited, unrequested, unsolicited defense.” As such, the insurer had no duty to inform the employee of available coverage or to voluntarily undertake his defense And, the high court concluded actual knowledge of the suit against him did not establish prejudice as a matter of law In Unauthorized Practice of Law Committee v Am Home Assurance Co., Inc., No 04-0138 (Tex March 20, 2008), a divided Texas Supreme Court held insurance companies are permitted to use staff attorneys to defend a claim against an insured if the insurer’s interest and the insured’s interest are congruent, but not otherwise In Evanston Ins Co v Atofina Petrochemicals, Inc., 2008 WL 400394 (Tex Feb 15, 2008), the Texas Supreme Court withdrew its earlier opinion In its new opinion from last week, the Texas Supreme Court reversed itself as to whether article 21.55 of the Texas Insurance Code applied The court observed that the claim in this case was a third-party claim involving the insured’s liability to another and not a first-party claim falling within the statute, and held that the additional insured was not entitled to attorney fees or damages under article 21.55 In Don’s Building Supply, Inc v OneBeacon Ins Co., 2008WL 3991187 (Tex., August 29, 2008), as a matter of first impression, the Texas Supreme Court refused to recognize the manifestation rule as applied by various appellate courts in Texas and stated, “occurred means when damage occurred, not when discovery occurred.” In Ulico Casualty Co v Allied Pilots Association, 2008 WL 3991083 (Tex., August 29, 2008), the Texas Supreme Court rejected the “Wilkinson exception” that says an insurer who assumes the insured’s defense without reserving its rights with knowledge of facts of non-coverage, waives “all policy defenses, including those of noncoverage” or may be estopped from asserting them The Court held “if an insurer’s actions prejudice its insured, the insurer may be estopped from denying benefits that would be payable under its policy as if the risk had been covered, but the doctrines of waiver and estoppel cannot be used to rewrite the contract of insurance and provide coverage for risks not insured.” 2009 RIMS on the Hill - Austin On January 13, 2009, the 81st regular session of the Texas Legislature convened in Austin Texas Page of 10 Currently, there are no less than 57 pieces of insurance related legislation being considered by the House of Representatives and/or Senate during the upcoming session The Risk & Insurance Management Society and the Houston Chapter support activities that encourage chapter members to become knowledgeable regarding the legislative process within their respective states Additionally, state politicians and their various staff members, need to understand the role Risk Managers serve, among the buyers of business insurance within their constituencies Educational and Associations Websites: American Institute for CPCU and Insurance Institute of America www.aicpcu.org Charter Property Casualty Underwriters Society www.cpcusociety.org Institutional Risk Management Institute www.irmi.org There is a tentative plan for interested members from all RIMS chapters from Texas, to gather in Austin between March 1st and 3rd, for the first joint Texas RIMS On the Hill Look for information to be posted regarding legislative activity and our chapter plans for making RIMS position(s) known on current and future risk management related legislation In the meantime, visit www.capitol.state.tx.us, to learn more about our Texas state government and the upcoming 81st regular session You may also contact Nick Kapatos, Director of Legislation at 713-507-2005 or nick.kapatos@banksterling.com for more information 2008 – 2009 Houston Chapter Membership Directories The National Alliance www.scic.com The 2008 – 2009 Houston Chapter Membership Directories are available The directory may be picked up at the monthly meetings Construction Risk and Insurance Specialist www.cris-ce.com Associate in Risk Management Course For further Educational Opportunities Forms or Information, please visit the Chapter website at: http://houston.rims.org/ChapterW ebsite/RIMSChapter.cfm?CID=328 The Houston Chapter of the Risk and Insurance Management Society, Inc (RIMS) will be sponsoring an ARM 54 class this spring 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 54 – RISK ASSESSMENT CLASS LOCATION: Bowen, Miclette & Britt, 1111 North Loop Page of 10 West, Suite 400, Houston, Texas CLASS START DATE: Tuesday Evenings–Started January 13, 2008, 5:30 P.M – 7:30 P.M (ends – mid April 2009) COURSE LEADER: Jim Drew, ARM, CIC Office Phone: (713) 880-7172 E-mail: jdrew@bmb-inc.com EXAM DATES: April 15 – May 15 testing window at Sylvan Testing Centers by appointment Enterprise Risk Management The Risk and Insurance Management Society (RIMS) will host a webinar, Reducing Uncertainty in Volatile Times: RIMS State of ERM Report 2008, on Thursday, January 22, at 1:00-2:00 pm EST The report, based on data collected from 564 corporate risk practitioners who assessed their risk management strategies using RIMS Risk Maturity Model for ERM©, is a groundbreaking study that provides an overview of ERM practices and outlines best practice priorities for improvement In this webinar, speakers will review the report’s key findings and introduce the next steps for moving an ERM program forward Panelists include Carol A Fox, ARM, senior director of risk management at Convergys Corporation and immediate past chair of RIMS ERM Development Committee; Jeffrey Vernor, ARM, global risk manager at Russell Investment Group and chair of RIMS ERM Development Committee; and Steven Minsky, CEO of LogicManager and author and producer of the report The webinar fee is $30 for RIMS members All others may participate for a fee of $75 For more information, visit www.RIMS.org/stateoferm 2009 National RIMS Conference Amidst the recent turmoil in the financial markets, the risk management industry has been placed into the spotlight and risk practitioners are being asked to re-evaluate their risks and exposures The Risk and Insurance Management Society (RIMS) 2009 Annual Conference & Exhibition, taking place April 19-23 in Orlando, Florida will provide risk managers and other executives charged with risk management responsibilities with proven leadership strategies and techniques to successfully navigate this time of economic uncertainty, and the surfacing global threats Registration for RIMS 2009 Conference & Exhibition is now open! - Learn how to navigate the complexities of risk at RIMS 2009 Annual Conference & Exhibition in Orlando on April 19-23 Page of 10 With 120+ sessions offered at all experience levels and presented by 400 industry experts, you'll find the instruction you need to strengthen your risk program Browse the Exhibit Hall and find hundreds of companies offering the latest innovations and breakthrough solutions And be ready—you'll experience networking opportunities at every turn Register now at www.RIMS.org/RIMS2009 and save $105! Early bird registration rate expires February 20th, so don’t delay! Professional Development Schedule Page of 10 Strategic Risk Control* January 26 - 27, Houston Contractual Risk Transfer* January 26 - 27, Toronto Claims Management* January 29 - 30, Kansas City, MO Fundamentals of Insurance February - 4, Scottsdale Techniques of Risk Management February - 6, Scottsdale Workers' Compensation Management* February 12 - 13, Nashville Risk Financing February 12 - 13, San Diego Errors and Omissions (E&O) and Professional Liability* February 19 - 20, Raleigh Minimizing Insurance and Claims Costs Please see the Local Chapter website and the RIMS.org Jobs Listing for details February 23 - 24, San Jose, CA Fundamentals of Managing Market Risk* February 24 - 25, Calgary, AB Business Continuity/Disaster Planning & Management* February 26 - 27, New York New! Risk Analysis Tools Boot Camp March - 6, Miami A special four-day program for enhancing risk management data analysis and decision making Enterprise Risk Management for the Advanced Practitioner* March - 6, New York Techniques of Risk Management March 10 - 11, San Francisco Fundamentals of Insurance March 12 - 13, San Francisco Directors and Officers Liability and Insurance* March 12 - 13, Cincinnati Move Your Program to the Next Level: RIMS Risk Maturity Model for ERM* March 23 - 24, New York Welcome New/Renewed Members Brad Bailey – Houston Independent School District Matthew Dantzer – CorVel Corporation Page of 10 Page 10 of 10