The next PIAPRO Training Session has been scheduled for Friday, April 27th at 9:30 EST. This session is open to any PIA State Affiliate and their staff members that would like to participate. This training program and an appointment with ARGO Group US is required to be able to provide the PIAPRO Program in the Affiliate's servicing area. If you are interested in participating please contact Roger McGlenn by the end of the day on Thursday, April 26.

Currently the PIAPRO Program is available in 27 States including the District of Columbia and there are 4 more states in the process of finalizing all requirements. As reported in the last PIAPRO Newsletter, we encourage states where rates and forms have been approved to complete the process so they too can offer the PIAPRO Program.

Important Info from PIAPRO Underwriting

From an underwriting standpoint PIAPRO assesses the individual member agency. Many of the Affiliate Producers have asked for more information on the underwriting appetite of the PIAPRO Program. PIAPRO has responded and this information is now posted here. Please review this information at your earliest convenience.

Rate Indications and Applications Coming In--Thank You!

Indications and Applications continue to pour into our office as you'll see in the chart provided (click on the chart to view larger version). Please keep up the good work and continue sending them in. The more information we gather and data we compile, the more we can review the PIAPRO Program for competitiveness and accuracy. The PIAPRO Program is on the go and you are integral to the momentum!

Keep up the great work!

Over 64% Hit Ratio on Completed Applications

Since the PIAPRO Program began we have enjoyed a fantastic hit ratio on writing policies for the completed applications received. As of today we are at a 64.86% success ratio! Congratulations to those Affiliates that have worked so hard to help make this program successful. By working on these PIAPRO opportunities, you are it strengthening your PIA owned E&O company!.

Reconnecting with PIA folks during the spring national meeting was a valuable experience was the obvious conclusion from ARIS's Roger McGlenn and Dan Seman. It was exciting for us to provide information on the fully operating agent-owned PIA captive insurance company we all refer to as PIAPRO. We also found that certain phases of the operation are working well and we noted some other area where improved communications are needed. We are taking the information we gathered and distilling into three important points to move the program forward successfully.

1. PIAPRO Policies Are "A" Rated

The first critical point to stress is that the captive insurer PIAPRO (we refer to it as P-I-A-Pro) is just a part of the PIA E&O PIAPRO program.  Right now and likely for the next 8-10 years, PIAPRO will operate as a captive reinsurer until it grows to the financial point where it can be considered for an A.M. Best rating. This means the current program is issued by the "A" rated carrier Argonaut Midwest Insurance Company except for in Wyoming where the fronting and issuing carrier is Argonaut Insurance Company, another "A" rated carrier in the Argo Group.  This means that policyholders in this program have the financial security, solvency and guarantee fund protection that accompanies a highly rated admitted insurance carrier.  Also, all producers within each State Affiliate that would like to offer this program to their members must obtain the appropriate appointment with Argo Group US.  E-mail Roger McGlenn and he can assist with this process.

2. Urge All State Affiliates To Become PIAPRO Eligible

The second critical point we learned that still causes confusion is that the initial implementation tier system is no longer in place. The State Affiliates that expressed the greatest need for the program have all been trained and the program is implemented in their states. ARIS is now ready to jump start an implementation process for any State Affiliate that desires the program. Even if your state does not have a significant need for the program, it still makes sense to complete the appointment and training process now. Market changes can occur quickly and without notice and there is no cost to be involved in the implementation process for PIAPRO other than the time investment. It's better to be ready to go when the needs of your State change or a member requests a quote.

3. PIAPRO Building a Strong Foundation

The final item to mention is the current market position in which the PIAPRO program is building its initial foundation. PIAPRO is currently most successful with the policyholder who has one million/three million or less in policy limits. This "Sweet Spot" includes seasoned agencies that report very few to no claims experience. New agencies /agencies with experienced personnel are also considered. PIAPRO is less successful when we must go to facultative rates above one million where the rates have been cost prohibitive. Once we prove to our reinsurers that the program can operate profitably in the one million or less policy limit space, obtaining higher limits will be more successful.

PIAPRO Policy Goals

Momentum is definitely building in the PIAPRO program. Total issued policies almost doubled in March! In this newsletter we are beginning a meter to track our sales goals progress through 2012. We will only show issued policies on this meter. We also have a head start on April with policies currently under binder pending finalization and issuance. We are excited about the increasing momentum and almost 50% of the PIAPRO policies are for new PIA members.

Since the beginning of 2012, indication requests and full applications increased dramatically with over 80 in January and 72 in February.  We are very pleased that we have reached a 43% success ratio when quoting complete PIAPRO applications, exceeding our projections. Even more exciting is that through the first two weeks of March, PIAPRO is having its best month yet with bind and issue orders.

Florida Insolvency Endorsement Approved

Argonaut Mid-West Insurance Company has been extremely responsive to state Affiliates' requests to make the PIAPRO forms as specific as possible to the state's needs.  Florida requested an endorsement to make it very clear that the Demotech rating organization carrier ratings were covered under the insolvency section of the policy.  This endorsement was filed and we received notice of approval this month!

PIAPRO will work with Argonaut Mid-West Insurance Company and the state Affiliates to ensure our forms are as competitive as possible in your marketing areas.

Next PIAPRO Training Program

April 9th at 1:30 Eastern Standard Time is the next scheduled PIAPRO Training Session.  This session will utilize the Go-To-Meeting online program and a telephone conference call to review the program and materials.  Four State Affiliates have requested to be included and there is ample room for anyone else interested in this training session to join us!

This training program is one of the three requirements for an affiliate to be able to offer the PIAPRO Program to their members.  We have been able to shorten this session to about three hours and use the Affiliates PIAPRO website as the major training tool.  If you or Affiliate staff members would like to participate, please contact Roger McGlenn

PIAPRO at the PIA Spring Governance Meetings

Dan Semen and Roger McGlenn will be in attendance at the PIA Spring Governance Meetings, March 23 and 24 in Washington D.C.  If you will also be there, we would love to spend some time with you and answer any questions or receive any comments you may have on the PIAPRO Program.  This is a critical time for this new agent-owned company and we want you to be totally comfortable in offering this outstanding program to your members.  Please see us in the gathering area near registration or call Roger on his cell phone at (406) 459-3394 to make sure we have the opportunity to visit during the meeting.  We really are "On the Go with PIAPRO!"

That's correct! PIAPRO now has 23 states fully operational and requesting quotes and rate indications. We are also anticipating adding five more by the end of the work day on February 9th with the training session being completed for Hawaii, Wisconsin, Michigan and the District of Colombia. Kansas is finalizing the appointment process and will be green-lighted as soon as the appointment is finalized.

Several more states have inquired about the process to make PIAPRO available through their affiliate associations.  The excitement continues to build.  If you have questions about your state, please contact Roger McGlenn.

February 9th - Next PIAPRO Training Session

Four Affiliates are slated to attend the next PIAPRO Training Session on February 9th starting at 12:30 p.m. ET, 7:30 a.m. in Hawaii. We will conduct the training via telephone conference call and online via GoToMeeting. I offered to do the training session live from Kailua, Hawaii, but alas the powers that be have rejected this alternative.

Any State Affiliate Executive and/or E&O Administrator are welcome to participate.  For more information and to reserve a spot in this training session, contact Roger McGlenn.

PIAPRO Producers Can Choose Between Agency and Direct Bill

As requested by some Affiliates and discussed during the PIAPRO Working Group conference calls, PIAPRO producing affiliates will have the option of an agency bill system or direct bill system.  Prior to or concurrent with the Affiliates first PIAPRO policy placement, the Affiliate will select what billing system they desire for their PIAPRO book of business.

We have placed information on the Affiliates page of the web site for a quick review of the procedures and to assist in selecting the desired billing system.  This information can be found under the resource menu item on this page.

Affiliate Feedback - Two Ways to Keep Us Informed

There are two forms requesting direct feedback on the PIAPRO/Affiliates page that we highly encourage Affiliates to use.  The first is the Quotation/Indication Not-Placed Feedback Form .  If a prospect rejects the quote or indication provided, we request that the State Affiliate administrator take a few minutes to complete this very short form and return it to the underwriter.  The information will greatly assist us in understanding the marketplace as well as looking at ways for us to be more competitive.

The second feedback form has been developed by the PIAPRO Working Group, comprised of active producing State Affiliates.  This form can be found on the PIAPRO Affiliates web page under Contact. We strongly encourage that the Affiliates use this form to share successes as well as areas of concern that have come up during their day-to-day producer activities.  Suggestions that may improve the PIAPRO program are also needed to help us keep enhancing the program.

PIAPRO is on the go and picking up momentum with Rate Indication requests and Applications coming in every day!

Coming Up Soon: PIAPRO Affiliate Training Session

We will be holding another PIAPRO training session via conference call and GoToMeeting in the very near future.  The date has not been finalized but we anticipate this training session will be in the next two weeks.  If you would like to have Affiliate staff members participate, or, if you think your state may have an interest in offering the PIAPRO program soon, please let Roger McGlenn know.  The training program is required to be able to offer the PIAPRO program to your members.

New Resource: PIAPRO Capital Contribution Stock Share Calculator

The purchase of capital contribution stock is required by the RRG laws governing PIAPRO. The PIAPRO Articles of Incorporation do not allow for fractional shares of class B and C stock, therefore we will need to round up or down so the number of shares purchased is divisible by 10.

For instance, if the first year premium is $3,489.00, the capital contribution calculation would be $3,489 / 3 = $1,163.   Then, $1,163 /10 = 116.3.  This means the capital contribution requirement will be $1,160 or 116 shares at $10 each.

Fractions from zero to 4, round down, 5 to 9 round up.  Premium of $4,879 would be: $4,875/3= $1,625. Then  $1,625/10 = 162.5 or 163 Shares.  163 x $10 = $1,630 capital contribution requirement.

If members are paying over the three years, they also need to include $10 for the one class C share of common stock.

To help affiliates determine the capital contribution requirements for your members, we have created the PIAPRO Stock Share Calculator, which can be found on the PIAPRO affiliates' website under Resources. Scroll down to Ownership & Offering Forms.

Industry Insight: Why Agents Buy E&O Coverage

Insurance Journal conducted its 2011 Agency E&O Survey and published its findings in its November issue. The article offers interesting insights into the motivation behind purchasing E&O coverage and may help you understand the mindset of your prospects moving forward. If you haven't read it yet, we strongly encourage you to read it now.  Click here for the online version.

Affiliates Working Group Feedback Form

During the first PIAPRO Working Group Conference call in December it was suggested that a Feedback Form for Affiliates be designed to share success stories as well as problems or concerns for the Working Group, PIAPRO Board and ARIS to address.  So, as PIAPRO continues monthly Working Group conference calls, we would like your feedback. If you have issues you would like us to address, questions you need answered, or better yet, success stories you would like to share, please give us your feedback. The form can be found on the PIAPRO Affiliates webpage under Contact.  The information will go to PIAPRO Affiliate Liaison Roger McGlenn and be used to improve PIAPRO. Thank you!

PIAPRO is up and running and we have three policies on the books for the month of December! We have the forms approved in all but nine states and we have fourteen states "turned green" and able to write PIAPRO policies. There are as many as fifteen more states close to completing the appointment process. This is a much anticipated and exciting time for PIA affiliated states and PIA members. With marketing efforts being initiated in many areas we look forward to increased activity and more exciting news in the near future!

The First PIAPRO Policy!

Kristi Gilbert, with the PIA of Alabama/PIA of Georgia is the first producer to bind coverage and order a policy in the PIAPRO program. Kristi is doing an outstanding job and is working hard on several more opportunities. She is very excited to be the first to write a policy for this PIA program. Look for more information on this sale through the PIA national publications.

PIAPRO's Website, Your #1 Resource

Many people have worked long and hard to build the comprehensive and interactive PIAPRO website - actually two sites. You'll find www.pia-pro.com as the public-facing, lead generation site for PIA members and potential policyholders. Prospects can learn more about the program and check the interactive map to see if PIAPRO is available in their state.

The other site was created solely for PIA State Affiliate Associations at www.pia-pro.com/affiliates. Here you'll find important resources like:
• Current guidelines and operating procedures
• Sample policy forms and endorsements
• Ownership and offering forms for the PIAPRO RRG
• Rate indication and application forms

You'll also find marketing tools to promote and sell the PIAPRO program to PIA members - tools like:
• Policy Highlights Sales Sheet
• Capital Contribution Sales Sheet
• Ad and brochure files
• E-mail templates
• Logos

If you have not spent time on the site please go there and review the information and materials available to you. Let us know what you think!

PIAPRO VP and Board Director, Andy Harris, Calls First PIAPRO Working Group Conference Call

During its September PIA meeting, the PIAPRO Board created this Working Group as a collective forum for all participating PIA Affiliate authorized and appointed producers for PIAPRO to work with PIAPRO's contracted captive manager, ARIS. The intent is for the group to establish regular communication and networking that supports the growth, stability and success of PIAPRO.

This process adopts PIA's well-established tradition of working as a group because we learn best from each other. This collective process fosters common understanding of the PIA producers' processes and procedures in harmony with the underwriting and business procedures of PIAPRO and our fronting company partner ARGO.

The first conference call is December 12. Watch for further reports and details in future issues!

Sales Update
This week ARIS was notified of two bind orders on recent quotes!  The Alabama Affiliate was the first to secure a bind order followed shortly behind with a bind order from PIA Services on an IL policy.  November is now the inaugural month PIAPRO is out of the starting gates with premium on the books.  We have high expectations to finish strong through the end of the year and through January.  For further information about PIAPRO, please visit the website www.pia-pro.com.

Argonaut Midwest Insurance Company PIAPRO Program Rates and Forms
Filing new program rates and forms in all 50 states is a daunting task.  Argo has received approval in all but nine states which include: AK, AR, MN, NY, OK, RI, VT, VA, and WA.  Oklahoma is tentatively approved pending update of the revised Dec page.  The current target is to wrap up all remaining state filings by the end of the year.

Producer Appointment by Argonaut
PIA Affiliates interested in offering the PIAPRO program must complete the Argonaut producer appointment process.  Since conclusion of the San Francisco meeting, we have experienced increased interest in securing the Argo appointment.  Appointed Affiliates in addition to the PIA Services from the National office include AL/GA, FL, LA, MS, NE/IA, OK, TN.  Affiliates that have initiated the process include VA/DC, HI, PIA West, MI, and WI.  Feedback on the appointment process has noted that the process is admittedly cumbersome and at times perhaps confusing.  However, Roger McGlenn stands ready to shepherd the process along.  Please also keep in mind that appointed sales folks in your affiliate must also undergo the program training. There are many options for the training delivery and Roger is your resource for that function as well.

Next Steps
ARIS has noticed an increase in rate indications and quotes since the San Francisco meetings.  ARIS can provide rate indications and quotes for any of your new or renewal clients but our initial targeted sweet spot are the seasoned agencies with low claims and limits of 1 million or less.  The only way to determine if the program fits your market is to submit rate indications.  Other company full applications or a PIAPRO application provides the most comprehensive information for a rate indication.  Remember, this is a brand new program with no underwriting history or claims experience.  It will take time and experience to grow the program to its full potential.

We are excited for the unending possibilities that exist in the market place today that can result in future success for PIAPRO.  Hopefully many of you will be looking forward to the next version of PIAPRO communications from Roger McGlenn (rmcglenn@alpsnet.com).

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com

Last week, FL, IL and TX Argonaut PIAPRO Program rates and forms were approved which whittled down the outstanding states to eleven (AK, AR, CT, HI, MN, NY, OK, RI, VT, VA, WA.)  Discussions during the fall meetings were a catalyst it seems, for increased activity in the agent appointment with Argo as well.  For PIAPRO to issue a policy, three functions must be completed.  First, the affiliate must attend the policy training through PIA liaison Roger McGlenn .  This training is critical since the PIAPRO Program is a fronted risk retention captive program.  Prospective insured's must understand the capital contribution and ownership component to the program.  Next, the Argonaut rates and forms in your jurisdiction must be approved by the local regulator.  Last, you must have a current appointment with the front carrier Argonaut Midwest Insurance Company.    Roger can assist you with the training and the agent appointment process.  Nonetheless, we are happy to provide rate indications over the phone even if the three items above are not finalized. In fact, it will greatly help with the launch of PIAPRO if you do provide us with your pending applications for a rate indication. Not only will this give us the opportunity to price risks and get your feedback about the pricing, it will also ensure that once you have completed the three items above you will be ready to start writing PIAPRO policies immediately.

It is appropriate to discuss the capital contribution requirement of the program in further detail.  Creating a captive insurance company program, especially a nationwide fronted program is a serious long-term endeavor.   PIA National has laid the ground work for a solid foundation for its members Agent E&O program.  These programs don't just happen overnight as witnessed by the two year process just to get the company formed and licensed.  Regulators restrict the amount of premiums a company can write by the amount of surplus or net worth the company maintains, which is typically 3:1.  The capital contribution requirement gives the policyholder some skin in the game, provides for ownership rights and a say in how the company is operated and provides for added premium capacity. In short, it is an investment in the long term stability of PIA Agent E&O insurance. Competitors will likely call it additional premium.  We call it investment into the future of PIA.

Please feel free to contact me or Roger McGlenn if you have any questions, comments or suggestions for your E&O insurance company.

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com

Since the last update, all states are approved for the Argonaut PIAPRO Program rates and forms except for the following: AK,AR,CT,FL,HI,IL,MN,MO,NY,OK,RI,TX,VT,VA, and WA   Progress has been slow and steady.  Short staffed and under resourced seems to be a common theme among many state insurance departments.  In rare cases, some departments are just more difficult to work with than the others.  Argonaut communicates daily with the remaining pending states.

Latest updates from the Argonaut producer appointment process indicates that Affiliates from LA, TN and OK are approved.  There are also submissions in process from the Affiliates in FL, VA/DC, and NE/IA. Seems there should be many more that need to pursue the Argo appointment. I encourage all interested Affiliates to contact PIA liaison Roger McGlenn at rmcglenn@alpsnet.com for any questions regarding the Argo appointment process.

ARIS is looking forward to attending the fall meeting in San Francisco during third week of September.  We will be on hand and happy to address any questions or comments regarding PIAPRO.  Feel free to advise Roger McGlenn of any issues, in the meantime, whether it concerns affiliate training, policy coverage, agent appointment or rate and form filing status.

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com

Before PIARO can release a quote for coverage, the PIA Affiliate must be appointed by Argonaut Midwest Insurance Company.  As of Wednesday August 17th, the Argo folks have informed us that the only appointed affiliate is from OK.  Argo has received submissions from TN, VA/DC, FL, NE/IA, and LA.    Please contact PIA Liaison from ARIS, Roger McGlenn (rmcglenn@alpsnet.com), with questions regarding the appointment process.

Also keep in mind that affiliates need to complete the program training prior to submitting applications for coverage to ARIS.  I apologize for the typo in the previous update by confusing Michigan (MI) with Mississippi (MS).  Believe me, I heard from both groups. To restate, PIA liaison Roger McGlenn conducted affiliate training for the following offices: PIA National, PIA West, MS, KS, NE, IA OK, GA, TX, FL and LA. If your state affiliate has not completed the program training and is interested in offering the PIAPRO product, please contact Roger.

Four more states were added to the approved list of rate and form filings this week and include: MD, NH, NV and OH. The rate and form filing for the PIAPRO program are finalized in 35 states and include:  AL, AZ,  CA, CO, DC, DE, GA, IA, ID, IN, PA, KS, KY, LA, MD,  MI, MT, MS, ME, NE, NH, NJ, NC, ND, NM, NV, OH, OR, SC, SD, TN, UT, WI, WV and WY.  The remaining states not mentioned above are in differing phases of approval and we receive daily correspondence through Argo regarding input on state compliance.

Roger will begin contacting affiliates that earlier made a financial commitment to the PIAPRO program.  The PIAPRO update from April 29th discussed the two options of contribution to PIAPRO which are 1) Class B common Stock and 2) Surplus Note purchase.  If your affiliate desires to purchase the Class B stock, the affiliate will also need to be a policyholder.  This means we will hold off on the finalization of the commitment until the rates and forms are approved in that state and the affiliate is properly appointed through Argo.

Please feel free to contact me or Roger McGlenn if you have any questions, comments or suggestions for your E&O insurance company.

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com

Beginning on Monday, August 15 , PIAPRO will be available to accept applications for coverage. PIA liaison Roger McGlenn conducted affiliate training during May and June for the following offices: PIA National, PIA West, MI, KS, NE, IA OK, GA, TX, FL and LA. During his visit, Roger supplied the affiliates with a handbook which included the application materials and the process for submitting applications to ARIS.  Keep in mind, that affiliate training is necessary to offer the PIAPRO product.  If your state affiliate has not completed the program training and is interested in offering the PIAPRO product, Please contact Roger McGlenn at rmcglenn@alpsnet.com .  Roger can provide the training in numerous methods including on site visits and webinar format.

Once the applications are received and underwritten, PIAPRO can deliver quotes for coverage to affiliates that are appropriately appointed with Argonaut Midwest Insurance Company. Again, Roger McGlenn can assist with this process.

Next week, ARIS will follow-up with affiliates regarding capital contribution funding. Updated offering materials were re-distributed in mid-May. You may wish re-familiarize yourself with the materials prior to our contact.  As capital contributions increase, so does the PIAPRO premium writing capacity.

The rate and form filing for the PIAPRO program are finalized in 31 states and include:  AL, AZ,  CA, CO, DC, DE, GA, IA, ID, IN, PA, KS, KY, LA,  MI, MT, MS, ME, NE, NJ, NC, ND, NM, OR, SC, SD, TN, UT, WI, WV and WY.  The remaining states not mentioned above are in differing phases of approval and we receive daily correspondence through Argo regarding input on state compliance.

Please feel free to contact me if you have any questions, comments or suggestions for your E&O insurance company.

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com

Upon receipt of the license, the risk retention group registration filings will be distributed to the states.
PIAPRO will be in a position to accept applications for coverage in the states where: 1) we receive confirmation of receipt of the registration packet, and 2) the Argo policy rates and forms are approved for use.   Keep in mind that coverage cannot be issued until the affiliate is appropriately appointed as an agent by Argo.  Roger McGlenn is your ARIS contact for all agent appointment questions and guidance.  Roger can be reached at rmcglenn@alpsnet.com.

ARIS will also initiate the affiliate capital contribution dialog in the upcoming weeks.  Updated offering materials were re-distributed in mid-May. You may wish re-familiarize yourself with the materials prior to our contact.  As capital contributions increase, so does the PIAPRO premium writing capacity.

Rate and forms filings also continue to be at the forefront.  We have finalized the filings in 29 states to date and include:  AL, AZ,  CA, DC, DE, GA, IA, ID, IN, PA, KS, KY, MI, MT, MS, ME, NE, NJ, NC, ND, NM, OR, SC, SD, TN, UT, WI, WV and WY.  We receive daily correspondence through Argo regarding input on state compliance received from states not mentioned above.

Please feel free to contact me if you have any questions, comments or suggestions for your E&O insurance company.

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com

With this slight set back, we hope to be in a position to receive applications for coverage within the first few weeks of August.    Also, during this time period, we will be contacting the affiliates that have made a financial commitment thus far to finalize those transactions.

Rate and forms filings also continue to be at the forefront.  We have finalized the filings in 28 states todate and include:  AL, AZ, , CA, GA, ID, UT, WI, PA, SC, DC, DE , NM, IA, KS, KY, MI, MT, MS, ME, NE, SD, NC, ND, NJ, OR, UT, IN,  and WV.  We receive daily correspondence through Argo regarding input on state compliance requests received from states not mentioned above.

Roger McGlenn, PIAPRO liaison, has noted that we have received the completed producer appointment documents to file with Argonaut for Oklahoma and Virginia.  For the affiliates where Roger has conducted the training visit, I urge you to remit the appointment documents soon.  If you have any questions, please contact Roger at rmcglenn@alpsnet.com.

The excitement is building for us as our ultimate goal nears. Please feel free to contact me if you have any

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com

This week all critical contracts including reinsurance, administrative service agreements and reinsurance trust documents were executed by Argonaut and ARIS. These signed documents were then transmitted to the PIA leadership for final review and signature. Next week we expect to transmit the final signed agreements to the Montana Insurance Department for issuance of the captive license.

Upon receipt of the Montana license the Risk Retention Group Registrations will be distributed nationwide and shortly after, we will be in a position to accept applications where the Argo rates and forms are approved. The launch date remains within a few short weeks away.

Rate and forms filings also continue to be at the forefront. To date, 25 states thus far that have accepted the Argo rate and form filing and include: AL, AZ, GA, ID, UT, WI, PA, SC, DC, DE , NM, IA, KS, KY, MT, MS, ME, NE, SD, NC, ND, OR, UT, IN, and WV. Argo continues to work diligently responding to requests for changes from state regulators addressing compliance issues of the PIAPRO products.  Generally, most states not on the approved list have responded with some sort of objection.  It is quite an endeavor to deal with 50 different sets of laws and requirements.

Roger McGlenn, PIAPRO liaison, has received the producer appointment procedures this week from Argonaut and has started working with the affiliates' states personnel where he conducted training on the appointment process for the PIAPRO program. In a nutshell, Argo uses a third party vender SIRCON to oversee the process.

Please feel free to contact me if you have any questions, comments or suggestions for your E&O insurance company.

Dan Seman
Director-Client Services
ALPS Risk & Insurance Services, Inc
(406) 523-3873
dseman@alpsnet.com