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While planning out my work schedule for next year I noted the Dixie rally and has a thought:

So lets guess that with Mitsubishi's withdrawl from the championship, Subaru decides not to contest the championship, and that leaves the Air Force with out a reason to play.

Do we still have the year end awards at Dixie?

(No ding intended to Subaru or the Air Force, but it seems like we would need to revamp our thinking about the planned schedule among other issues.)
 

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Four tree two remember Andrew
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>Given the size of their contingency program and incresed
>level of involvement helping event organizers, I would
>hardly call any competitive decision they make "pulling
>out".

Organizers will need that help, since insurance for a ProRally has gone up from $8250.00 to $12,000.00.

http://www.scca.org/interactive/2004RateSheet.pdf
 

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>>Given the size of their contingency program and incresed
>>level of involvement helping event organizers, I would
>>hardly call any competitive decision they make "pulling
>>out".
>
>Organizers will need that help, since insurance for a
>ProRally has gone up from $8250.00 to $12,000.00.
>
>http://www.scca.org/interactive/2004RateSheet.pdf

Not to start a Rabbit trail... but if insurance is this much for SCCA. I imagine NASA is much cheaper. Except for the 20 people that ran 5 or more ProRally's (and several of them won't be back), I think the masses could care less about "ProRally" and just want to drive at a speed that is fun for them somewhere in the woods. If SCCA costs two or three times the entry fee of a NASA event people will vote with their checkbook.
 

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RE: Insurance (was Dixie etc)

>Not to start a Rabbit trail... but if insurance is this much
>for SCCA. I imagine NASA is much cheaper.

Yes, NASA is considerably cheaper. Now. But they haven't had to pay any major rally claims yet, whereas SCCA had to deal with a number of significant incidents in the last few years.

And there is more to a sanctioning body than just what you pay them for sanction and insurance, as I found out first-hand this year. For better and for worse.

Ben
 

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RE: Insurance (was Dixie etc)

When the person responsible for buying SCCA's insurance is buying said insurance from himself, we have what is known in some circles as a conflict of interest. No rule says rally has to fall under the master policy. If some other company will insure for less, it is incumbent upon SCCA to use that insurance. If(when) premiums rise, SCCA can revisit their insurer. To make the argument that we should ignore cheap insurance because it might become expensive is an insult to anyone with a double digit IQ.
 

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400 flat to crest
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RE: Insurance (was Dixie etc)

Do we assume that the SCCA insurance advisor dood is still advising buying Insurance from the same Insurance broker dood who just happens to be the same person on 2 payrolls, what would be maybe in any civilised state some kind of criminal conflict of interest, at least according to my long term 29 years in the business of Underwriting contact (who let out a hoop of laughter and refused to believe me untill I swore that a PAID EMPLOYEE of our Club was advising purchasing Insurance from the Company where he is the sales person.)

Nobody recall some yahoo firm called Artur Anderson and ENRON, and all the mishygoss with Mutual Funds.
People are going to jail for similar things.
And,
Wasn't 9/11 and all its supposed knock on effects all done a while back.
Is this nearly 50% increase a result of seetlements for or anticipation of settlements for this years fatalities?

FIFTY PER CENT????

Sounds like a shakedown to me.

John Vanlandingham
Seattle, WA. 98168

Vive le Prole-le-ralliat

Black Rocket Rally Tires
http://www.blackrockettires.com/
 

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RE: Back to the topic

>
>"My little bird" told me that the awards will be
>at LSPR, and Dixie will not be a MFGRs event
>(as was initially stated) ...
>
>:+

I hope that was a different bird than the one about the forthcoming National sponsor announcement... (couldn't help myself, I know your birds usually have outstanding information)
 

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RE: Insurance (was Dixie etc)

It isn't that Pete is actively engaging in fraud, but it is highly unprofessional for an organization to manage its biggest expense the way the SCCA does. Insurance is our lifeblood, our raw material, our tree, our bauxite, our cold-rolled sheet. Without it, we don't exist. We have a single supplier for that raw material. An employee of that supplier acts on our behalf in buying that material and managing its use. Is there fraud? Who cares? No well-run company would put themselves in our position.

Pete fills the roles of: [ul] [li] Risk Manager, responsible for minimising risk at wheel-to-wheel events, autocrosses, hillclimbs, TSD rallies, stage rallies, drift events, etc. [/li] [li] Purchaser, responsible for creating contracts with our insurance supplier, which in the case of the SCCA, is the single company, Weisenberg. [/li] [li] He is also seems to be an employee of that single provider of insurance. [/li] [/ul]

Like I said, I'm not suggesting that Pete is actively trying to defraud us, but it seems as though his situation would not encourage him to find us the best deal. It also doesn't allow him to approach the task of risk management from our side. The rumor mill has been producing anecdotes for years that suggest that he doesn't think rally can be safe and that the folks that run rallies are a bunch of loose-cannon idiots. Regardless of whether our perception of him is correct or not, Pete takes our money but doesn't necessarily work for us. He works for our major supplier. Combine that fact with his position of authority in the club and you have a poisoned relationship, regardless of how benign his intentions are.

SCCA managment has the worst of both worlds. In dollar terms, it's a fairly small company. In terms of the number of volunteer "employees", potential customer base, and potential media exposure, it's on par with a Fortune 500 company like Hewlett-Packard. If someone were discovered doing in HP what Pete is doing in the SCCA, there would be vigorous firings, a company-wide memo and mandatory emergency classes in the almighty Standards of Business Conduct.

I think Pete might be a decent Risk Manager if he severed his relationship with Weisenberg and let someone else take on the role of Purchaser. We'd trust him more, he might be a little more interested in seeing our side of things, and maybe we could get a better price by playing suppliers off each other.

Another possibility is that the SCCA could self-insure. Any comments from any insurance industry lurkers out there?

andy
--
Viva la ProleRalliat!
 

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RE: Insurance (was Dixie etc)

For what it's worth...from the website of http://www.wisenberg.com (Note different spelling of company name from that in some SCCA info--no, I don't know why.) Risk Analysts, Inc. is a division of Wisenberg (Weisenberg) Insurance.

Looks to me like they do the same thing for NHRA, IHRA, IMSA and various NASCAR divisions.
Read it. Draw your own conclusions. I try to avoid even reading about insurance companies and lawyers. (Well, Bruce is an exception.)
--GBtheGG--

PASTED FROM THE WEBSITE

Frequently Asked Questions about Risk Analysts, Inc.:
Q: How can you be objective if your parent company sells insurance? Won?t all of your recommendations be geared to buying insurance from Wisenberg?
A: Risk Analysts? emphasis is providing the right risk management solutions. Over the last 20 years Risk Analysts has provided consulting assistance to clients ranging from Wal-Mart, National Convenience Stores and Home Depot, to the Houston Astros, NHRA, IHRA, SCCA and IMSA. If we did not always maintain our objectivity, it seems highly unlikely we would continue to have success.

Q: How is Risk Analysts compensated?
A: Our primary goal is to respond to each client?s unique needs. Therefore, we can provide services in a number of ways, such as on an agreed assignment fee, retainer or billed at a hourly rate. On occasion, we have even capped our hourly rate so that it does not exceed a certain agreed amount. What assignments we are asked to perform frequently determines the appropriate compensation arrangement. For example, if we are asked to serve as a resource to answer legal or claims questions, that assignment is usually performed on a retainer basis, because clients want to know we will commit to our immediate availability.

Q: Can you share with us the background of the primary members of Risk Analysts? team?
A: ...Peter Lyon has over 15 years experience as a practicing attorney, claims adjuster, and as General Counsel and Insurance Manager at Sports Car Club of America, and Risk Manager for IMSA.

(Additional info pasted from another part of the site.)
Peter B. Lyon, Director of Risk Management and Legal Affairs
Peter provides risk management assistance to the agency's clients and oversees related legal affairs for the agency. After receiving his Bachelor of Business Administration degree from the University of Iowa in 1980, he joined Commercial Union insurance company as a claims representative. In 1985, he received his law degree from the University of Colorado and has legal experience as insurance defense counsel and arbitrator and as in-house counsel for a large third-party insurance administrator. Peter has significant expertise in motorsports matters, having served as chief legal and risk management executive for two well known national motorsports sanctioning organizations.

(...more stuff about another guy with motorsports experience--the President of the company.)

Jeff Pozmantier has over 20 years experience developing risk management and insurance programs including captives and risk purchasing groups, and providing out-sourced risk management services to industries ranging from real estate management companies to grocery store retailers and distributors, to entertainment companies such as Pace Entertainment Group, National Hot Rod Association, International Hot Rod Association, Sports Car Club of America, and the Houston Astros.
 
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