February 2011 Vol. 12, Issue 5 minnesota.rims.org Editor: Patty Schulz email: [email protected] Minnesota

RIMSCOPEMinnesota Chapter Newsletter of the Risk and Insurance Management Society (RIMS)

Program INSIDE Rapidly advancing technology, globalization, and changing regulatory Program 1 environments, among other dynamics, have had an impact on our field and Membership 2 will continue to do so into the future. Do you wonder what this means for your career? The next MN RIMS program, Risk Management as a Career: Then, Member Spotlight 3 Now and the Future, will focus on this topic. A panel of your peers, with various Golf 3 professions in risk management, will share their perspectives on how careers in our industry have evolved and what will be critical for success in the future. External Affairs 4

Seminar 4 Location: Doubletree Park Place Hotel 1500 Park Place Blvd. Education 4 St. Louis Park Communication 4 Date: February 15, 2011 Article of Interest 5 Time: 2:30 – 5:00 Meeting and Events Schedule 6 Speakers: Tim O’Connor — Executive Vice President, Hays Companies Sara Paul — Strategic Risk Management Professional Employment Opportunities 6 Kim Burmeister — Consultant, Kim Burmeister & Associates Upcoming Industry Events 6 Brian Turnwall — Vice President Global Insurance, Cargill

RIMS Calendar 7 Also, mark your calendars for the final two MN RIMS events of this program year:

Tuesday, March 15, 2011 (Partner Appreciation Night) — 4:00–6:00 Tuesday, May 17, 2011 (Annual Meeting) — 2:30–5:00

Committee Chair: Kathy Schweikart — General Mills Inc. Committee Members: Susan Kaye — Ingenix Chris Lynch —Lindquist & Vennum P.L.L.P. Jeff Horner — Hormel Foods Corporation Mark Mathews — Hays Companies Teri Burthay — Allina Health System Bill Baker — Marsh USA Inc.

MN RIMSCOPE February 2011 Minnesota Chapter Newsletter of the Risk and Insurance Management Society (RIMS) minnesota.rims.org

2010-11 MN RIMS Board Attention MN RIMS The Membership update, as of November 2010, is provided below. President Members: If you know of anyone who may be Beth Iacono Please take a minute and go to the interested in becoming a MN RIMS Nash Finch Company National Society website to make cer- member, please notify anyone on the [email protected] Membership Committee or any Board Tel: (952)844.1155 tain your contact information is cur- rent. Since the membership follows member. Vice President the member, if you have a change in Amanda Lagatta January 2011 Target Corporation employment, you must update your [email protected] contact information. Thank you for Primary Deputy 94 Tel: (612)761.1162 your assistance. Secondary Deputy 62 Secretary Additonal Deputy 52 Patty Schulz Affiliates 3 The Travelers Companies, Inc. Associates 68 [email protected] Membership Educational 1 Tel: (651)310-6817 It is with great pride and pleasure to Students 1 Treasurer announce the Minnesota RIMS Total Current Membership 281 Brad Wiggins Chapter has been awarded the winner CHS Inc. 2011 Goal 297 [email protected] of the 2010 RIMS Membership Star Tel: (651)355.6396 Award. The Minnesota RIMS Chapter MN RIMS would like to welcome the Directors has increased overall membership by following individuals who have become Lois Nelson 7.4% (an increase of 19 members). new members since the publication of Red Wing Shoe Co. Inc. This outstanding achievement is a the last newsletter: [email protected] result of the hard work and creativity Tel: (651) 385.1417 of the MN RIMS Membership Primary Deputy Thomas Chukel Committee. State of Minnesota Scott Towne — Liberty Diversified [email protected] International Tel: (651)215.1699 Katherine Schweikart Secondary Deputy General Mills,Inc. Ronda Bayer — Liberty Diversified [email protected] International Tel: (763)764.7136

Deborah Cordes Affiliate Medtronic, Inc. Sarah Paul [email protected] Tel: (763)505.2826 Associate Jeff Horner Jonathan Arndt — Willis of Minnesota Hormel Foods Corporation MN RIMS Membership Committee — Jonathan Glashan — CS STARS LLC [email protected] From left to right: Tel: (507)437.5187 Bobbi Pearson — Cargill Inc. Chelsie Groslie — Eide Bailly Julie Raatz — Marsh USA Inc. Joe Pucel — Lockton Companies LLC RIMS Delegate Kendra Hillstrom — EcoLab Inc. Dawn Soleta Wendy Hearn — Best Buy Co. Inc. The Toro Company Ann Martin — University of MN [email protected] Tel: (952)887.8880 The Award will be bestowed formally at the RIMS award luncheon on Monday, May 2, 2011, at the RIMS Annual Conference and Exhibition in Vancouver, BC.

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MN RIMS New Member What are your major job responsibili- ties? 2010-22011 RIMS COMMITTEES Spotlight Business Development, Customer Communication Relations, Monitoring & Coaching Patty Schulz Name: Sales & Marketing Activities, Event The Travelers Companies, Inc. Rachelle Martini [email protected] Planning, Advertising. Tel: (651)310-6817

Title: What is the most challenging part of Education Sales & Marketing Manager your job? Amanda Lagatta Remembering everyone’s name. Target Corporation Company Name & Location: [email protected] Tel: (612)761.1162 Servpro of Minnetonka Other than your current position, what is your dream job? Golf Describe your Company’s operations: Scuba Diving Guide — is probably the Paul Major Fire & Water Cleanup & Damage Ameriprise Financial, Inc. most frivolous. [email protected] Restoration — Mold Mitigation & Tel: (612)671.4720 Remediation, Move Outs & Contents Best career advice you've received? Restoration, Electronics & Equipment, If someone were to give you a million External Affairs Document Drying, Contents Claim Thomas Chukel dollars, you would figure out a way to State of Minnesota Inventory Service, Air Ducts & HVAC, do anything. [email protected] Biohazard, Crime Scene & Vandalism, Tel: (651)215.1699 Carpet, Upholstery, Drapes & Blinds, Committee Chair: Ceilings, Walls & Hard Floors, Membership Wendy Hearn — Best Buy Co. Inc. Wendy Hearn Deodorization. Best Buy Co., Inc. Committee Members: [email protected] Education: Kendra Hillstrom —EcoLab Inc. Tel: (612) 291.2650 Associate of Arts in Business Ann Martin — University of Minnesota Program Bobbi Pearson — Cargill Inc. Kathy Schweikart Family: Julie Raatz — Marsh USA Inc. General Mills Inc. Husband — Patrick Martini [email protected] Children — Daughter 17 & Son 13 Tel: (763)764.7136 Golf Seminar Hobbies: Deborah Cordes th Running, Hiking, Sailing, Volunteering, Mark your calendars for the 10 Medtronic, Inc. Reading, Gardening Annual MN RIMS Golf Classic. The [email protected] event will be held on Monday, July 11, Tel: (763) 505-2826 Previous jobs: 2011, at The Legends Golf Club. This Nominating Ketz & Associates — is the summer’s “can’t miss” event for Beth Iacono Key Accounts Manager MN RIMS members. Nash Finch Company [email protected] Pat Carl & Associates — Committee Chair: Tel: (952) 844-1155 Director of Sales & Marketing Paul Major — Ameriprise Financial Inc. Rainbow Foods/Fleming — Webmaster Committee Members: Eric Benson Floral & Gift District Manager. ING, U.S. Insurance John Regal — Securian Financial Group [email protected] Josh Reding — Lifetime Fitness Tel: (612)342.3528 Brad Wiggins — CHS Inc.

3 February 2011 Minnesota Chapter Newsletter of the Risk and Insurance Management Society (RIMS) minnesota.rims.org

the lunch, and we’ll even tell you the External Affairs lessons learned. Communications The MN RIMS External Affairs Committee The purpose of the Communication is pleased to announce the MN RIMS I know it’s early, but there have been a Committee is to act as the primary Board of Directors approved a donation number of people who have worked hard coordinator of all Chapter communication of $5,000 to the Minnesotans For to create a special day. I would like to distributed to the membership via Lawsuit Reform (MnFLR). This is the sec- Thank them. Many of our MN RIMS mem- newsletter, e-mail, and the MN RIMS ond year MN RIMS has supported the bers serve on several committees or the website. effort for tort reform to reduce the statute Board. They work tirelessly to ensure our of limitations and other business–friendly chapter continues to bring value to its The Committee goal for 2010-2011 is to initiatives. According to MnFLR, these members. I would like to Thank them as distribute eight (8) monthly newsletters. initiatives relate to jobs and the economy, well. I know I will miss someone in this The newsletters include updates from the and now may be the best time to accom- list. Please forgive me... To those who MN RIMS committees, a variety of arti- plish these changes. The House Civil Law worked with me — THANK YOU. cles of interest to the RIMS membership, Committee already had their first hearing and a calendar of events. on January 10, 2011, regarding these Committee Chair: issues — less than one week into the new Deborah Cordes — Medtronic, Inc. We are looking for your feedback session! With the state’s budget prob- regarding the MN RIMS Chapter website. lems and the sluggish economy, we are Committee Members: Please e-mail Patty Schulz at pmschulz already seeing bills that will impact many Paul Banker — Lindquist & Vennum, @travelers.com with suggestions on what areas of concern for risk managers. P.L.L.P. information you would like our website to Senate File 1 proposes to modify Chris Lynch — Lindquist & Vennum, include. environmental review requirements for P.L.L.P. permitting efficiency for new development Sharon Cirpinski — Marsh USA Inc. The Communication Committee is always projects. Senate File 18 proposes to pro- Jeff Hennike — ESIS interested in your feedback and also hibit the use of cell phones while driving. Beth Iacono — Nash Finch Company encourages submissions of non— House File 20 would modify the environ- Hiliary Loynes — Larson King LLP committee related articles, events or mental impact statement process to Jeff McBride — General Mills, Inc. items of interest to our RIMS membership make it less onerous. House File 65 Peter Moyer — Lindquist & Vennum, to be published in the monthly RIMS would make Minnesota a “right to work” P.L.L.P. newsletter/calendar of events. Articles state. This is quite a start in the first Mari Beth Ross — NRG Energy, Inc. are due the Friday after each monthly MN three weeks. However, it’s a long session Jeff Uelmen — Aon RIMS meeting or event. Articles and and there’s a “hole in the roof”. We’ll Marty Von Drasik — Coventry comments can be submitted to Patty keep you advised. Mary Wells — Arthur J. Gallagher Schulz at [email protected]. The articles must be in a .doc or .txt format Committee Chair: for inclusion. MN RIMS does reserve the Tom Chukel — State of Minnesota right to truncate, edit, omit or size any Education submission as it sees fit. Priority for Committee Members: The education committee is looking for inclusion of items will be for those Mack Savage — U.S. Bank additional committee members to help us articles that have the most interest to Phil Rodgers — CCMSI achieve our goals. If you are interested in MN RIMS membership. Mike Patera — McMillan Wallace Athenasis helping MN RIMS continue and expand our relationships with partner schools, Committee Chair: network with students, or look for new Patty Schulz — The Travelers Companies, Inc. Seminar ways to enhance the education of our By the time this newsletter is sent, the member, please contact Amanda Lagatta Committee Members: MN RIMS Annual Seminar will be a past at [email protected] or Eric Benson (Webmaster) — event. We anticipate attendance of 250 612.761.1162. ING, U.S. Insurance in a day chocked full of information. Lois Nelson — Since, I cannot speculate how wonderful Committee Chair: Red Wing Shoe Company, Inc. the day was (ok, so I can speculate). Amanda Lagatta — Target Corporation Carmen Ferguson — Bemis Company, Inc. Here’s what we will do — the next Committee Members: Cheryl Humphrey — newsletter will provide you with a full Mark Koller — Marsh USA Inc. Kim Burmeister & Associates review. We’ll answer some of the basic Mary Peter — Eide Bailly LLP Mary Wells — Arthur J. Gallagher questions of interest — actual Tom Scibora — Ameriprise Financial Inc. Beth Iacono — Nash Finch Company attendance, what worked, how good was Laurene Dufault — CHS Inc.

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certificates of insurance did not provide coverage where such Article of Interest coverage was not provided in the policy itself. Avoiding Common Policyholder Pitfalls (and what can happen if you don’t) Tips to Avoid the Pitfall By Chris Lynch 1) Recognize the limits of a certificate: 1) A certificate of insurance is Not a binding contract Pitfall #5: Relying on Certificates of Insurance as Insurance of insurance. Beware! — A Certificate of Insurance is NOT an Insurance Policy. 2) If the certificate says something inconsistent with what the actual policy says, the policy will usually govern. When one company agrees to provide insurance for another, it's typical practice for the company making the promise to provide 3) Even if everything the certificate says is correct, the the other company with a certificate of insurance to show the certificate usually does not tell the whole story. coverage has been obtained. If your company is supposed to be the beneficiary of such a promise, it's important not to equate a) For example, certificates usually do not list the the certificate of insurance with the required insurance. exclusions or endorsements that can dramatically affect the scope of coverage provided by the policy. Certificates of insurance are not insurance policies. They are b) Additionally, while certificates typically state what the usually just a broker’s statement that there is (or at least was at policy’s coverage limits are, they rarely tell you how the time the certificate was issued) an insurance policy in much of those limits may have already been used up by effect. But if no such policy is actually in effect or if the policy previous claims and don’t update that information that was issued does not contain the coverage terms or limits over the course of the policy period. your company needs to cover its potential liabilities, then the certificate of insurance is all but useless. A certificate of 2) Request that the certificate be issued by the insurance insurance does not create insurance coverage where none company. Certificates of insurance are commonly issued by exists in the policy and usually bestows no insurance rights on brokers who have no actual authority to place or bind coverage the holder. on behalf of the insurance company. If the insurance company itself, or an authorized agent of the company, issues the certifi- What Can Happen if You Fall Into the Trap. A Real Life Example: cate, then you may have some recourse against the insurance A Wyoming company owned and operated several oil and gas company if the policy fails to contain the type or amount of wells entered into a contract with a service company to repair coverage set forth in the certificate. Unfortunately, insurance one of the wells. The service agreement between the companies companies are not always willing to issue certificates. required the service company to indemnify the oil company for any liability to third party’s arising out of the well, and to also 3) Request a copy of the policy. Ask the policyholder or its name the oil company as an additional insured on its liability broker to send you a copy of the policy (or at least the additional insurance policy. insured endorsement to the policy) and review it to make sure it complies with the policyholder’s contractual obligations to your As proof the requested insurance had been obtained, the serv- company. This may be impracticable where time is of the ice company — through the insurance agent — provided the oil essence in completing a transaction. However, there is often company with two certificates of insurance expressly stating the time to take this precaution after the transaction, but before an oil company was an additional insured on the service company’s accident happens. policy. 4) Maintain your own insurance. Don’t put all your eggs in one During the course of the repair to the well, an employee of the basket. Make sure your company has its own policy of insurance service company was injured in an accident. The employee filed in place to protect it in the event the other company fails to a lawsuit against the oil company to recover damages for his fulfill its contractual promise to provide your company with injuries. The oil company sought coverage for that claim under insurance. the service company’s insurance policy as an additional insured.

Unfortunately, despite the representations on the certificates of About the Author: insurance, the actual additional insured endorsement to the Chris Lynch is a partner with Lindquist & Vennum’s Insurance service company’s liability policy did not apply or extend cover- Recovery Group. He represents businesses whose claims have age to the oil company, and the insurance company denied been denied or disputed by their insurance companies. He can coverage to the oil company. In the coverage lawsuit that fol- be reached at 612.371.3512 or [email protected]. lowed, the court ruled the scope of coverage was controlled by the terms of the policy, and the contrary representations on the

5 February 2011 Minnesota Chapter Newsletter of the Risk and Insurance Management Society (RIMS) minnesota.rims.org

MN RIMS Committees Employment Opportunities Please consider how you may best contribute to MN Ameriprise Financial is seeking an experienced individual RIMS. The return benefits are numerous! In addition to for a newly created, full—time Risk Coordinator located in personal satisfaction, serving on the Board or a commit- downtown Minneapolis. For job description, qualifications, tee allows you to gain professional development and build and the application process, please visit relationships. To learn more about getting involved in any www.joinameriprise.com — reference job ID 81338. For of the Chapter’s activities, please contact the Committee questions regarding this position, contact Jason Yoraway Chair listed or any Board member! at 612.671.2437 or [email protected]. 2010–2011 MN RIMS Chapter Meetings RTW, Inc. (A Division of State Auto Insurance Companies) is seeking an experienced Account Executive located in and Events Schedule Bloomington, MN. For job description, qualifications, and Mark your calendars for our next meetings: the application process, please visit www.rtwi.com.

Tuesday, February 15, 2011 — 2:30–5:00 Upcoming Industry Events (Doubletree Park Place Hotel) These events are listed as a courtesy to our members who are interested in educational opportunities. They are Tuesday, March 15, 2011 — 4:00–6:00 not sponsored by MN RIMS. Event information includes (Partner Appreciation Night) the sponsoring entity, date of event, the location, a brief program description, and contact information. May 1–5, 2011 — RIMS Annual Conference & Exhibition (Vancouver) Check out the course calendar under “Education” on the RIMS website (http://www.rims.org/) for upcoming semi- Tuesday, May 17, 2011 — 2:30–5:00 nars of interest! (Program and Annual Meeting)

6 MN RIMSCOPE MN RIMS Calendar of Upcoming Events

Sun Mon Tues Wed Thur Fri Sat

1 2 3 4 5 CPCU 540 Class begins CPCU Workshops

6 7 8 9 10 11 12

13 14 15 16 17 18 19 MN RIMS Chapter Monthly Meeting 2:30 – 5:00 February 20 21 22 23 24 25 26

27 28 2011

Sun Mon Tues Wed Thur Fri Sat

1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19 Partnership Appreciation March

20 21 22 23 24 25 26

27 28 29 30 31 2011

Sun Mon Tues Wed Thur Fri Sat

1 2

3 4 5 6 7 8 9

10 11 12 13 14 15 16 April

17 18 19 20 21 22 23

24 25 26 27 28 29 30 2011