COUNCIL ON INSURANCE
JERRY HICKMAN, D.D.S.

The AAO Council on Insurance met in St. Louis on June 11, 2005.  Attending the meeting were the insurance company representatives, the council members and the Council Liaison Trustee, Dr. Robert Bray.  As your GLAO representative, I can continue to report that our endorsed AAO insurance plans remain financially sound.

Professional Liability

The AAO Professional Liability Plan has a membership participation of 49% with new sales growth of 8.1% for the past year.  Over the past twelve months 70% of eligible new graduates beginning practice enrolled in the plan.  The AAO Professional Liability Plan continues to maintain a low claims/loss ratio, and the premiums charged are very competitive on a national basis.

AAO Business Office Package

AAO Business Office Package (BOP) again grew a 15% rate over the past twelve months.  Travelers Insurance Company continues to offer very competitive rates throughout the country.  The Brokerage Desk is up and running which allows JLT to provide coverage with other selected insurance companies when Travelers is not competitive.  It is important that every member review their BOP policy at the time of renewal in order to update their coverage.

Life Disability and Medical

The AAO Life, Disability and Health Plans posted a favorable loss ratio over the past year, with the term life and disability plans providing the best performance.  The Group Health Plan experienced a poor claims/loss ratio which resulted in the COI recommending to the Board of Trustees a 7% premium increase in the HSA-qualified medical plans and a 15% increase on all other major medical plans.  These rate increases become effective October 1^st.

The Council on Insurance continues to evaluate of new products that are available in the marketplace.  Currently, New York Life is considering a longer level term life policy and also increasing the amount of term insurance available for purchase.

For questions, please feel free to contact me by e-mail at jhickman@iuupui.edu or by mail at 8001 Shelby Street, Indianapolis, IN46227; by fax at (317)888-0083 or by phone at (317)888-7807.