TOPICS

JOE BUTLER, SR. executlve vlce preeldent

Ir EXANS are making plans to altend the I 1986 Conference with Congress. March 17-19 in Washington D.C.

The annual legislative meeting will focus on three important issues: tax reform. Canadian lumber restrictions and product liability reform. Time will be allotted for delegates to pay personal visits to their legislative representatives.

Finals plans are being completed for the April 18-20 celebration of the association's mrAtsts tltsls 3gtur f,mrsrr 0n lHotl creased more than tenfold while its limits were reduced tenfold.

The last 30 lean have seen many hard and soft nrarket cycles. including the especialll soft market era that ended in 198-1. The current hard market has turned into both a buyers' and a sellers' nightmare. Industry underw'riting losses illustrate the seriousness of the problem.

In 198,1. estimated underwriting losses exceeded $3.5 billion: 1985 losses are expected to be worse. Many observers anticipate this market could last as long as four years.

Within this hard marketplace. four phenomena are occurring: (l) significantll' higher rates: (2) market shrinkage: (3) restrictive underwriting or risk selection. and (4) changes in policy forms or provisions. l00th birthday. San Antonio. the premier sesquicentennial city. will be the location of the annual convention and exposition which will be a giant l00th birthday celebration. Roger V and Richard "Cactus" Pryor have been engaged as entertainer and master of ceremonies for the presidens' dinner dance and show.

Wh-r- is it happening one only has to remember that five years ago high interest rates provided excellent investment income (profits) on premiums and reserves. Carriers were uilling to urite business at rates that. alone. *ere insufficient to cover losses.

Priman and reinsurance carriers, hungry for higher marliet share. were willing to write neu tlpes of coverages. thus increasing the options for insurance buvers.

Insurance limits rose. Huctibles fell. With falling interest rates. increasing claim and industn-*ide losses started driving up rates.

Some insurance carriers nou refuse to offer specific colerages. thus reducing the number of options for insurance bulers. hemium capacitl- problems exist for carriers. forcing them to provide lou limits or write onlS small volumes of specific corerages. In many c:Ls€s. carriers provide coverage onll' with a high deductible or self-insurcd retentions. Carrien are also having trouble obtaining necessary' rcinsurance.

We feel that manl of these increases are totall) unjustified in our industry'. but. nevertheless. we are no\tr'having to pa1'for evenone else's poor claim experience and the insurance industries' poor underuriting judgment.

Excellent exhibis. education and entertainment are planned for this convention which will culminate 100 years of service to the industry. state and nation by the Lumberman's Association of Texas.

The challenge facing most lumber dealers todal is hou to cope uith these conditions. given the harsh realities of a marltet r.r'here insurers are raising premiums and tightening availabilitl ? No one can sa1'. "lf Companl A is raising its pr:ice on reneual too much. l'll find Companl B which *ill reneu at last lear's price."

What can 1ou do'.t We suggest that cooperation with )'our present insurer on loss prevention efforts is imporrant. This is as much for 1'our benefir as for your insurcr's benefit. Insist that your employees treat Ore insurer's loss control engineer as an ally. Their anirude could have a profound effect on ttp premiums 1'ou will be paying. We rcpeat-cooP eration is essential.

Ignoring the insurance company's loss prevention effons or failing to respect its loss control personnel could result in the inability to get insurance at any price from reputable insurers. "Marginal" insurers might be willing to provide coverage, but we hardly need elaborate on what this could mean to your business. These days, even banks are taking a good hard look at the financial standing of their customers' insurers when loan applications are made.

Dont neglect to provide full and accurate information to your insurers. They regard any omissions with suspicion. The same holds true for claims. They need information in a timely fashion to allow for the increased time necessary for processing insurance claims in today's business climate.

Most insurance companies are now asking you to look at a series of alternarives that ari being offered. Each alternative has a number of consequences which require complete analysis. Some of the alternatives include "pooling" and higher deductions. Be aware of alternative deductibles and their impact on your corporate profit and loss statement. Your accountant should be involved in these types of decisions.

These are only a few possibilities, of course, and you are the final decision-maker. We are happy to discuss your situation and maybe suggest a program for your special needs. Remembeq just about everyone is affected by the current hard market and substantially higher premium levels.

If your insurance is corning up for renewal within the next two to three months, be sure to get going on quotes now. Don't get caught unprepared!

GAYLON STACY executive vlce precldent

I ARRY Smith. Billingslea Lumber Co.. ts Lawton, was installed as the 39th president of the Oklahoma Lumbermen's Association during ceremonies in Oklahoma City. M.J. "Mun" trwis, OLA President in 1975, did the honors.

Smith, a longtime member of the OLA, has served two terms as a director, a year as co-chairman of the convention and a year as chairman. He was vice president in 1985.

Installed as vice president was Ken Rothschopf, The Lumber Mart, Guymon. Rothschopf has just completed a three-year term as director and for two years has been co-chairman of the education committee.

Randy Rogers, Leonhardt Lumber Co., Oklahoma City, was installed as association treasurer for the second year. He is a former member of the board of directors and served as treasurer in 1975.

New retail directors installed for three year tenns werc Mike Little, Sperry Lumber Co., Sperry @ist.l);Tom Sanders, Sanco Lumber

Co., Grove (Dist. 2); and Don McClain, McClain Building Center, McAlester (Dist. 3).

Also James Lovell, Prague Lumber Company, Enid (Dist. 4); Gerry Weltzheimer, Leonhardt Lumber Company, Oklahoma City (Dist. 5); and Mike Yates, Western Lumber Company, Elk City (Dist. 6).

Two new associate members of the board were installed. They are Joe Colley, Colley & Company, Pauls Valley, and Dale Fuzzell, Blue Circle Cement. Ti.rlsa.

Past president kwis installed new officers and directors during luncheon ceremonies on Dec. 17, prior to the lrst official directors meeting of the association's fiscal year. Each new member of the goveming body received an engraved plaque,

Check our Calendar on page 18 for information on upcoming conventions, meetings and trade shows in your region.