North West Territories Association of Communities

1
Alberta Urban Municipalities Association
General Insurance Program Customer Service Center
Transition
North West Territories Association of
Communities Board Room 704, Delta Centre Suite
Hotel Edmonton, Alberta January 26, 2006 at 1200
p.m.
Presented by Samantha Garcia, Senior Director,
Service Implementation
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Agenda Overview

• Questions to Answer
• AUMA Who We Are
• AMSC The Business Corporation
• Services Provided
• Service Delivery Models
• Customers and Owners
• Due Diligence
• Service Contracts
• Meeting Customer Expectations
• How Do You Manage This
• How Do You Pay for Everything
• Lessons Learned
• Matching Services
• Standard for Success

3
Questions to Answer

• What were the reasons for AUMA bringing in client
  service work rather than have the broker perform
  these functions?
• How is the administration of the insurance
  program structured to fit in with the
  Associations administration and goals for their
  members?
• What are some of the highlights of taking on this
  new role?
• What problems did you encounter in the
  development of your plan?
• What would you have done differently?
• How did your underwriters and members react to
  the changes?
• What advise do you have for our group as we take
  on similar responsibilities?

4
AUMA Who We Are

• Board
• Governance
• Committees

5
ABOUT THE AUMA

• VISION The Alberta Urban Municipalities
  Association is valued by our membership and
  trusted as a voice for urban municipalities.
• MISSION The Alberta Urban Municipalities
  Association provides leadership in advocating
  local government interests to the provincial
  government and other organizations.
• 284 Regular voting members, 215 Associate members
  and 70 Affiliate members
• Represents over 85 of Albertas population
• Strength in numbers
• The AUMA has a two-pronged mandate
• as an advocate for urban Alberta municipalities
  and
• as a service provider for its members.

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Alberta Urban Municipalities Association
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Operational Practice
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Committee Member Role

• Networking responsibility
• Identify and bring issues forward
• Linkage with AUMA membership
• Elected and administrative representation with
  various expertise
• Consensus-based solutions and positions for a
  common voice
• Focus on both long- and short- term
• Work on strategic and urgent issues
• Direct link to the AMSC business plan goals

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AMSC The Business Corporation

• Governance
• Service Expertise
• Why Aggregated Services
• Know your customer
• Growth
• Niche market
• Business Plan
• Competitive to market
• Customer choice to purchase services

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About The AMSC

• VISION The Alberta Municipal Services
  Corporation is valued by our membership and
  trusted as a shared service provider for its
  members.
• MISSION The Alberta Municipal Services
  Corporation provides shared services that address
  the needs of its membership.
• 284 Regular members and 215 Associate members of
  AUMA and those eligible for membership are the
  customers that have access to services offered
  through AMSC
• Aggregated Services
• Municipal service needs
• Capacity Building Tools
• Financial Savings
• Administrative Process Reductions

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Service Expertise

• External service expertise at committee level
• Specialized service providers with specified
  expertise
• Consultants with related service expertise

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Why Aggregated Services

• Key drivers AMSC considers programs
• Cost effective
• Builds better information
• Customer Service Centre
• Outsourced
• Membership owns data
• Membership governs
• Marketing unified
• Contracts managed
• Customers needs addressed

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AMSC The Business Corporation

• Business Plan
• Sets Strategic Direction
• Sets Performance Measures and Standards
• Competition
• Focus on
• Bottom Line
• Customer Service

14
Services Provided

• Existing
• Research and Development

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AMSC Programs and Services Offered

• Insurance Services
• MUNIX Reciprocal Property, Liability EO (0
  to 1 MM)
• AMSC Risk Control Program Credits
  (Admin./Elected/Assoc./ANI)
• Property Building Valuations
• Course of Construction
• Medical Malpractice
• Excess Liability Property
• Umbrellas
• Errors Omissions
• Auto (includes transit fleet)
• Standard Garage Auto
• Non-Owned Auto
• Crime
• Environmental Impairment Liability
• Aviation Liability
• Additional Named Insured
• Facility User Group
• Boiler Machinery
• Wrap Up Liability

• Benefits Services (Includes Employee,
  Elected, Seasonal, Volunteer, Contract, Retired,
  etc.)
• Web based administration software
• Employee Extended Health Plan
• Basic, Dependent Optional Group Life
• Short Term Disability
• Long Term Disability
• Voluntary Accidental
• Basic Accidental Death Dismemberment
• Death and Dismemberment
• Group Critical Illness Insurance
• Extended Health Care (ASO) - Including Vision
  Care and Out of Country Emergency Medical
• Dental (ASO) (including Adult Orthodontics)
• Volunteer Fire/Ambulance Personnel
• Employee Assistance Program (EAP)
• Retiree Health Dental Benefits (Conversion
  Plus)
• APEX (Supplementary Employee Pension Program)
• APEX PLUS (Non-Registered Supplementary Employee
  Retirement Program - SERP)
• Online Member Access

• Energy Services
• Electric Aggregation
• Gas Aggregation
• Energy Management

• Financial Services
• MuniShare (SAP HR, GL Revenue Systems)

• Other Services
• Customer Service Centre
• Group is Great (Personal insurance Home, Auto,
  Tenants, Boat, etc.)
• Human Resources Line (HR)
• Casual Legal Services
• Computer Purchase Program
• MOAT (On-line Agenda Tool)

• Templates
• Electric Franchise Agreement
• Gas Franchise Agreement
• Municipal Access Agreements for Alberta SuperNet
• Sample Bylaws on the web
• Environmental Guidelines

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Potential AMSC Programs and Services(Currently
Being Explored or Developed)

• Insurance Services
• Community Groups Policy
• Expanded AMSC Risk Control Program
• MUNIX Property, Liability EO Aggregate and Per
  Occurrence Increases
• Possible inclusion in MUNIX
• Auto (Property)
• Crime
• Boiler Machinery
• Online Member Access
• Live Updating Ability
• Reporting Tools
• Hole in One Prize Program

• Benefits Services (Includes Employee,
  Elected, Seasonal, Volunteer, Contract, Retired,
  etc.)
• Health Spending Account
• Flexible Benefits
• Elected Official Supplementary Pension Plan
• Fire Fighters Supplementary Pension
• Group RRSP
• Group RESP
• Benefits Online Electronic Claims Submission
• Online Employee Access
• Home Care Benefits
• Medical Travel Benefits

• Energy Services
• Energy Benchmarking Tools
• Emissions Trading
• Power Purchase Arrangements
• Alternative Energy Sources
• Green Procurement

• Other Services
• Aggregated Legal Services
• Web-site Templates
• E-Procurement
• Web Hosting
• Telecommunication Access Agreements
• Telecommunication Aggregation
• Safety training programs
• 311 Non-Emergency Municipal Government Services
• Rental Car Services
• Vehicle Purchasing Program
• e-Government
• One Window

• Financial Services
• Member/Employee Mortgage Services
• Member/Employee Investment Services

Please submit any suggestions or ideas to AMSC
for consideration.
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Service Delivery Models

• 100 Outsourcing
• Example TPA / Energy Aggregation (electricity
  gas)
• Specific design of contract
• Three way contract with AMSC as aggregator
• Contracts
• AMSC/partner/customer with service standards
• AMSC/partner with service standards
• Customer Service Center with Partial Outsourcing
• Example Insurance Services
• Specific design of contract
• Two way contract with AMSC as the provider
• AMSC/partner with service standards
• AMSC/customer with service standards

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AMSC Services Program Management Strategy
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(No Transcript)
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Customers and Owners

• Relationship
• Service Groups
• Standing Committees
• Board
• Service Standards
• Customer connections to AMSC/Customer Service
  Center/Partners
• Unified marketing front customers/partners
• Customer advisory group
• Employee mindset
• Perception of loss of control using a provider
• Relationship
• Tie back to service standards
• Addressing issues as they arise

• Segregation of Responsibilities within each
  Service offered
• Hosting
• Actuary
• Legal council
• Governance
• Claims settlements (4)
• Corporate
• Software
• Adjuster
• Broker
• Underwriter
• Appraiser

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Principles

• AMSC will participate in member services market
  reforms where outcomes could affect reliability
  and cost
• AMSC is committed to creating value for its
  members
• AMSC will be a strong voice for the interests of
  member services consumers
• AMSC will support government initiatives to
  improve member services consumer education and is
  committed to participating in local member
  services consumer education
• AMSC will work with municipal and consumer groups
  on regulatory or interventions, when appropriate
• AMSC services are by members for members
• The voice and input of Municipalities help shape
  the direction of the AMSC Service Programs.

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Due Diligence

• Critical to Success of the Program
• Setup
• New
• Explore with Customers Issues
• Business Model to understand potential of the new
  business line, demands and risks
• Major Investment of members time to determine
  expectations
• Existing
• Customer Focus Groups
• Reports on Business Results to Management and
  Governing Boards
• Financial
• Customer Satisfaction
• Performance Reports
• Due Diligence process used (next chart)

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The AMSC Due Diligence Process
AMSC SIGNS ONLY AFTER ALL OF THESE STEPS ARE
COMPLETE
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Meeting Customer Expectations

• Implementation Members involved in the
  establishment of the standards and the
  implementation of the service
• Monitoring Reporting to management and members
• Payments to providers tied to AMSC satisfied
  deliverables
• Examples of contract standards
• Insurance
• Broker
• Claims
• Software
• Building Valuations
• Benefits
• Gas
• Electricity
• Service evolutions planning/acting on changes
  to services (i.e. legislative) and having
  additional options available to provide
  alternative services through amending bylaws,
  management processes, contract amendments,
  calling each participant directly and
  communicating
• Communication
• Customer/Partner aware when transitions occur
  (i.e. partner)
• Knowledge sharing
• Customer Issue/resolution sharing where affects
  participants

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AMSC Workshops Education Session

• AMSC Regional Billing Education Sessions
• Feedback
• Survey to improve for next time
• AMSC Quarterly Member Service Dialogue Session
• Suggestions
• Topics
• Locations
• Timelines
• Introducing Virtual Meeting and Training Sessions

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Service Contracts

• Set Business Requirements
• RFP
• Negotiations (convert Customer expectations into
  performance measures)
• Non-compete
• Arbitration
• Termination clause
• Partnership support
• Conventions
• Tradeshows
• RFP responses
• Service Standards
• Basic standards
• Transitional standards
• Set standards
• Pricing
• Kill clause
• Examples of clauses (pull right from contracts)
• MuniShare
• Customer expectations

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RFP

• Independent consultant used to facilitate RFP
  process which cannot respond
• Building the RFP containing
• Current Service Delivery
• Objectives and Overall Structure
• Overall Services
• Specific Services being RFPd
• Operating Principles
• 2 Program Requirements
• 2.1 General and Program Principles
• 2.2 Program Requirements and Key Activities
• 3 Selection Process
• 3.1 Qualification Statement
• 3.2 Evaluation Criteria and Selection Process
• 3.2.1 Qualifications
• 3.2.2 Service Delivery
• 3.2 3 Interviews and Presentations
• 3.2 4 Competitive Negotiation
• 3.2.5 Schedule, 2005
• 3.2.6 Proposal Format and Submission

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Contract Standards Implementation Example

Implementation workplan for new service with
timelines, accountabilities and related projects.
Further details behind each project are also
critical during an implementation.
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Contract Standards ExampleThird Party
Administrator Administration

• Identity of Service Provider
• The Services are to be provided under the
  identity of Alberta Municipal Services (AMS) a
  division of AUMA, until such time as AUMA advises
  the Services are to be provided under the
  identity of Alberta Municipal Services
  Corporation, a corporation owned by AUMA. In the
  event the Services are to be provided by Alberta
  Municipal Services Corporation, AUMA will then
  assign the Contract to Alberta Municipal Services
  Corporation.
• Scope of Services
• The scope of Services set out herein are
  established to the best of the knowledge of the
  parties at the time of execution of the Contract.
  The parties acknowledge that the scope of
  Services may change materially during the Term at
  the request of either party. Any change in the
  scope of Services shall be determined under GC
  2.8-CHANGE IN SCOPE OF SERVICES.
• Requirements Relationship Management
• The Contractor will
• maintain primary responsibility for the sale of
  general insurance and benefit Services
• establish, maintain and staff a telephone, fax
  line and email address for purposes of a Help
  Desk, to receive and respond to all Member
  inquires on the general insurance and benefits
  programs administered by the Contractor
• further establish, maintain and staff a web-based
  process for the provisions of general information
  relating to the general insurance and benefits,
  and to receive and respond to all Member
  inquires, requests, and changes
• undertake client visits for both General
  insurance and Group Benefit program Members in
  accordance with the following schedule
• Clients Type Loss Prevention
• Up to 2,000 population PrR Audit if required
• 2,000 to 10,000 population PrR, PoR Audit if
  required
• 10,000 to 25,000 population PrR, PoR, SC Audit if
  required
• Above 25,000 PrR, PoR, SC, SC Audit if required
• (PrP) Prior to Renewal Call - Review and update
  values, obtain other renewal and membership
  information as required, review upcoming renewal
  changes with client, review of outstanding
  claims, complete Loss Control Inspection report.
  Complete Loss Prevention Audit if required
• (PoR) Post Renewal Call - Review renewal issues,
  deliver any outstanding documentation, deliver
  and review Summary of Insurance, review of
  outstanding claims, complete Loss Control
  Inspection report. Complete Loss Prevention
  Audit if required
• (SC) Service Call - Review outstanding issues.
  Review and update current coverage, values, etc.
  Review outstanding claims. Complete Loss
  Prevention Audit if required
• provide General Insurance and Employee Benefit
  articles for the "Urban Perspective" newsletter
  or alternative vehicle for each issue as
  requested by AUMA, or as deemed appropriate by
  the Contractor

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Contract Standards ExampleThird Party
Administrator Sales and Marketing

• Requirements Sales and Marketing
• The Contractor will
• attend each of the AUMA annual and regional
  Conventions. Such attendance will include a
  booth at the Trade Fair area of each convention,
  at the Contractors own cost and expense
• make use of planned AUMA Seminars to deliver
  Insurance information to Members where
  applicable, with written information and personal
  attendance
• develop an overall strategic Marketing Plan in
  conjunction with AUMA and with AUMA's Broker as
  required or directed by AUMA. The first
  Marketing Plan shall be submitted to AUMA within
  six (6) months of the date of the commencement
  date of the Contract
• develop and implement a detailed Sales plan which
  will include the following
• Identification of both General Insurance and
  Group Benefit program prospects and grouping them
  into categories A, B, and C according to size and
  potential
• Emphasize cross selling to existing Benefits or
  General insurance program members
• Make telephone calls and/or electronic contact
  with prospects providing details and advantages
  of the programs
• Supply all proposed collateral sales material to
  AUMA for approval and production
• Maintain and update active prospect database and
  collaborate with AUMA on the utilization of a
  common CRM (Customer Relationship Management)
  application
• Make on site visits as per attached schedule
• Prospects Type
• Category A PC
• Category B PC, SSC
• Category C PC, SSC, PD
• PC Prospect Call General sales call, supply
  information and get commitment to compete
• SSC Specific Sales Call Specific sales call,
  outline program advantage, review program
  highlights and demonstrate technology interface

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Contract Standards Example Third Party
Administrator Administration and Data Management

• Requirements General Insurance Program and
  System
• The Contractor will
• issue routine coverage documents including cover
  notes, and full copy policies of insurance
  certificates, endorsements, pink cards, and
  statements of coverage as required
• distribute, track, and collect application forms
  and other requests for underwriting information
• receive initial claims reports from clients,
  report claims to control adjuster, and track the
  claims progress
• maintain appropriate accounting systems,
  processes and practices in the provisions of
  administrative services, including without
  limitation, premium invoicing and collection, and
  payables / reconciliations to AUMAs Broker and
  AUMA directly
• maintain and manage comprehensive administration
  database information available and accessible
  through the world wide web, including without
  limitation insured values, underwriting
  information, equipment schedule and vehicle
  schedules, and loss control information
• issue and update general insurance manual on an
  annual basis
• maintain the integrity of the rating system and
  modify the rating system as appropriate in
  collaboration with AUMA, its Broker / Insurer,
  and any other service provider to AUMA
• identify and recommend to AUMA changes to the
  system as required.
• Requirements Employee Benefits Program and
  System
• The Contractor will
• develop and maintain a comprehensive
  administration database, and add and delete
  Members and their coverages on an on-going basis
• collect premiums, reconcile accounts, and deposit
  premiums to the account or accounts specified
• assist and provide guidance to program members on
  employee claims, and follow-up on employee
  claims
• issue Employee Benefits manuals to each Member on
  an annual basis
• issue employee coverage statements to employees,
  or make such statements available online on an
  annual basis
• implement benefit programs for new customers and
• subject to any requirements for confidentiality,
  interface and exchange information with AUMAs
  Benefits Underwriters or consultants.

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Contract Standards ExampleThird Party
Administrator Reporting Requirements

• Reporting Requirements
• The Contractor will
• provide to AUMA monthly financial statements of
  all programs including MUNIX, and including a
  monthly statement of income and expenses for each
  program
• provide to AUMA a monthly written and verbal
  Management Report to the Membership Services
  Committee of AUMA or alternate committee,
  containing the following information
• the status of current General Insurance and
  Employee Benefits program
• update of claims experience on the program
• sales and marketing activities for the period
• a review and update of operational issues,
  activity levels for the period, comparisons of
  activity to available benchmarking information,
  and follow ups done
• client service visits and issues arising out of
  any visits
• current information on the loss prevention and
  control program
• any update and review on current ALARIE issues
• any other information requested by AUMA, the
  Members Services Committee of AUMA or its
  alternate committee.

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Contract Standards ExampleThird Party
Administrator Management Of Responsibilities of
the Contractor

• Designation of Management
• It is acknowledged that the unique and evolving
  character of this service arrangement requires an
  effective relationship between the parties
  characterized by continuous dialogue, a shared
  vision, commitment to consumer service, and
  timely problem solving ability.
• To fulfill its responsibility for the effective
  management of the relationship on a daily basis,
  and notwithstanding the authority of the Guardian
  Director as stated in the GC 2.1 AUTHORITY, the
  Contractor designates the Manager of the Edmonton
  office to be primarily accountable to AUMA for
  the delivery of the Services on a daily basis,
  and in particular for
• Sales planning and execution
• Issue resolution
• compliance with service levels and standards
• performance reporting on a monthly and annual
  basis.
• The designation of the Manager of the
  Contractors Edmonton office does not preclude
  the use and involvement of other Contractor staff
  in the performance of the Services.

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Contract Standards ExampleThird Party
Administrator Service Standards

• Standards Administration and Sales
• The Service Standards to be maintained by the
  Contractor are as follows
• the Help Desk is to be staffed from 830 am to
  430 pm Alberta time during each Business Day
• responses to inquires from Members, clients,
  Underwriters, Insurers, or AUMA, to be made not
  later than the close of the next Business Day
• Database updating current within one Business
  Day (data requiring entry by AMS staff or
  validation of customer updates via the web)
• Back-up off site daily for applications hosted by
  the Contractor
• Issuance of invoices for Benefits Program
  monthly
• Issuance of invoices for General Insurance
  Program quarterly
• payments to be posted within one Business Day of
  receipt
• Monthly statements to be prepared by the fifth
  Business Day of the following month
• identify claims no later than the next Business
  Day
• prepare an annual Marketing plan by October 1 of
  each year for the next ensuing year for approval
  by the Member Services Committee of AUMA or
  alternate committee designated by AUMA
• conduct client visits and prospect visits as per
  schedules. The Contractor may combine such
  visits at its discretion
• complete and submit the monthly Management
  Reports five Business Days prior to monthly
  Membership Services Committee meeting
• conduct, complete, compile and submit the annual
  client satisfaction survey by March 31 of each
  year in the form approved by AUMA.

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Contract Standards Non-Compete Example

• Non-Competition
• During the Term and for a period of one (1) year
  immediately following the termination or expiry
  of this Agreement, as the case may be, ABC
  Company shall not, individually or collectively,
  directly or indirectly, in partnership or jointly
  with any party or in conjunction with any person
  or persons, including, without limitation any
  individual, firm, association, syndicate,
  affiliate, company, corporation or any other
  business enterprise (any of which are hereinafter
  called a "person"), as principal, agent,
  shareholder, or in any other manner whatsoever,
  carry on or be engaged in or be concerned or have
  a financial interest in, lend money to, guarantee
  the debts or obligations of or authorize its name
  or names to be used or employed by any person for
  the purpose of
• providing any services or carrying out any work
  which work or services are the same or similar to
  any part of the Services in the Province of
  Alberta or
• tendering a bid or submitting a proposal for
  carrying out work or providing any services which
  work or services are the same or similar to any
  part of the Services in the Province of Alberta,
  directly or indirectly, for and on behalf of
  AMSC, the AUMA or any Member, which work or
  services are the same or similar to any part of
  the Services.
• ABC Company acknowledges and agrees that any
  contravention by it of this Article will cause
  AMSC and/or the AUMA harm which cannot be
  compensable by monetary damages alone and,
  accordingly, in addition to any other remedy
  available, AMSC, on its own behalf and/or on
  behalf of the AUMA shall be entitled as a matter
  of right to seek immediate injunctive relief
  restraining the contravening Party from
  committing or continuing to commit such breach.
• ABC Company acknowledges and agrees that the
  restrictions set forth in this Agreement and
  imposed upon it are reasonable in all respects,
  are valid and are enforceable against it and
  further
• acknowledges and agrees that AMSC and AUMA would
  not have entered into this Agreement unless it
  had agreed to be bound by the foregoing
  restrictions and therefore, that all the
  restrictions imposed upon it herein are of
  significant value to AMSC and AUMA and
• Acknowledges and agrees that the restrictions
  imposed upon it herein are necessary to protect
  the legitimate interests of AMSC and AUMA and any
  violations of such restrictions will result in
  immediate and substantial irreparable injury to
  AMSC and/or AUMA.
• Notwithstanding the above clauses, should ABC
  Company have ABC Consulting business with a
  Member prior to the date of this and previous
  agreements, ABC Company will be allowed to
  continue the arrangement.

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Contract Standards Dispute Resolution

• Unless specifically described herein to the
  contrary, the following provisions shall apply to
  the resolution of conflicts between the parties
  as they arise (the fact that some provisions in
  this Agreement refer specifically to this Section
  8.2 for dispute resolution shall not derogate
  from the application of this Section 8.2 to other
  conflicts hereunder)
• ABC Company and the AMSC agree to utilize all
  reasonable efforts to resolve any dispute,
  whether arising during the Term or at any time
  after its expiration promptly and in an amiable
  manner by negotiations between the parties.
  Conflicts should be resolved by the individuals
  closest to the issues provided that such
  individuals have the actual authority to
  implement such resolution
• ABC Company and the AMSC shall continue to
  perform their respective obligations during the
  resolution of any dispute or disagreement,
  including during any period of mediation and
  arbitration, unless and until this Agreement is
  lawfully terminated or expires according to its
  terms
• either party may refer any dispute to, on behalf
  of ABC Company, a representative designated by
  ABC Company and on behalf of the AMSC, the CEO.
  These individuals shall meet as soon as is
  reasonably possible after a dispute is referred
  to them, giving due regard to the nature and
  impact of the issue under consideration
• if a dispute cannot be resolved by the designated
  representative and the CEO within a time period
  that is satisfactory to the party raising the
  issue under consideration, that party may refer
  the dispute, in the case of the AMSC, to the CEO
  and in the case of ABC Company, to the ABC
  Company Representative. These individuals shall
  meet as soon as is reasonably possible after the
  dispute is referred to them, giving due regard to
  the nature and the impact of the issue under
  consideration
• if a dispute cannot be resolved by the CEO and
  the ABC Company Representative by mutual
  agreement within a time period that is
  satisfactory to the party raising the issue under
  consideration, that party may submit the dispute
  for mediation. Either party may, on notice to
  the other party, request that mediation takes
  place and request that the Edmonton, Alberta
  offices of Deloitte Touche, LLP Chartered
  Accountants select a mediator whose
  qualifications are appropriate to the matter to
  be mediated. The mediator shall designate a
  place for a meeting of the mediator with
  representatives of the parties. During the
  duration of the mediation process, no action will
  be taken by either party to commence or continue
  arbitration proceedings under this Agreement.
  The cost of the mediator will be equally shared
  by the parties. Any mediation that takes place
  will be strictly confidential. No proposal or
  concession made by a third party in the course of
  mediation may be used by either party in any
  subsequent proceedings. The mediator may not be
  called by either party as a witness in any
  subsequent proceedings
• should mediation fail to result in a resolution
  of the dispute between the parties within fifteen
  (15) days after the parties initially attempted
  to mediate the dispute, either party may submit
  the dispute for arbitration as provided in
  subsection (g) below. The determination arising
  out of the arbitration process shall be final and
  binding upon the parties, provided however, that
  in the event that the dispute has not been
  resolved through the arbitration process as set
  forth in subsection (f) within sixty (60) days of
  a party giving notice nominating one arbitrator
  as set forth in paragraph (i) of subsection (g),
  any party at any time thereafter, but prior to a
  determination being made by the arbitrator(s)
  shall have jurisdiction to have recourse to the
  Courts of Alberta having jurisdiction for the
  determination of the dispute, and upon the
  commencement of any action for such purpose, the
  jurisdiction of the arbitrator(s) in respect of
  such dispute shall cease
• arbitration shall be conducted in accordance with
  the following terms
• the party desiring arbitration shall nominate one
  (1) arbitrator and shall notify the other party
  in writing of the nomination. The notice shall
  set forth a brief description of the matter
  submitted for arbitration. The other party
  shall, within ten (10) days after receiving such
  notice, nominate an arbitrator and the two (2)
  arbitrators shall select a chairman of the
  arbitration tribunal to act jointly with them.
  The parties will act reasonably and in good faith
  to select arbitrators who are objective and who
  are suitably qualified by education or
  professional experience to deal with the matters,
  which are the subject of the arbitration. If the
  nominated arbitrators are unable to agree on the
  selection of a chairman within ten (10) days
  after the second arbitrator is nominated, the
  parties or either one of them may apply to the
  Alberta Court of Queens Bench to have the
  chairman appointed
• if the party receiving the notice of the
  nomination of an arbitrator by the party desiring
  arbitration fails within ten (10) days to
  nominate an arbitrator, then the arbitrator
  nominated by the party desiring arbitration may
  proceed alone to determine the dispute in such
  manner and at such time as he shall think fit and
  his decision shall, subject to the provision of
  this Agreement, be binding upon the parties
• any arbitration conducted pursuant to this
  Agreement shall take place in the City of
  Edmonton and, subject to the provisions of this
  Agreement, the decision of the arbitrators and
  chairman, or any of two (2) of them, in writing,
  shall be binding upon the parties both in respect
  of procedure and the conduct of the parties
  during the proceedings and final determination of
  the issues. Any written award or decision of the
  arbitrators shall not repeat or recite any
  evidence which is proprietary or confidential to
  either party
• notwithstanding the foregoing, any arbitration
  may be carried out by a single arbitrator if the
  parties so agree, in which event the provisions
  of this Section shall apply, mutatis mutandis
• the costs of arbitration shall be borne by the
  parties as may be specified in the arbitrators
  decision and
• except as modified herein, the provisions of the
  Arbitration Act (Alberta) as amended from time to
  time, shall govern the arbitration process.

37
Contract Standards Termination Example

• Termination
• This Agreement may be terminated by either party
  
• immediately upon written notice to the other
  party in the event of the occurrence of an Event
  of Default with respect to the other party or
• on ninety (90) days written notice to that effect
  given to the other party, and, if this agreement
  continues with the consent of both parties beyond
  its termination date, being June 30, 2010, it
  shall thereafter be considered to be a month to
  month contract, with all terms and conditions to
  apply mutatis mutandis.
• Termination of this Agreement pursuant to the
  provisions of this Section 7.1 shall not limit in
  any way the recourse to any remedies available to
  any party at law, equity or otherwise.
• Repayment upon Termination
• The AMSC shall have no liability of any nature
  whatsoever to ABC Company for any losses or
  damages suffered or sustained, either directly or
  indirectly, by ABC Company including, without
  limitation, loss of profit, as a result of the
  termination of this Agreement.
• In the event of termination of this Agreement ABC
  Company shall perform the Services up to and
  including the date of termination.
• Rights and Obligations on Termination
• Upon the termination of this Agreement and in
  addition to the other obligations of ABC Company
  as set forth herein, ABC Company shall, at its
  sole cost
• immediately relinquish the role of administrator
  of the group, home and auto insurance services
  available to the Members as contemplated herein,
  and cease all solicitation of business under the
  representation that is doing so as part of an
  AMSC sponsored program.
• deliver to the AMSC, as soon as reasonably
  possible, a written report detailing the
  performance of the obligations of ABC Company
  pursuant to the Agreement up to and including the
  effective date of termination
• subject to Section 7.4 herein, immediately and
  unconditionally deliver to the AMSC all Work
  Product in the possession or control of ABC
  Company, its employees or subcontractors and
• Subject to Section 7.4 herein, promptly and
  unconditionally return or cause to be returned to
  the AMSC, as the case may be, all data, property,
  documentation and other materials supplied by or
  at the direction of the AMSC to ABC Company or to
  any of its employees, agents or subcontractors.
  Further, ABC Company shall not and shall cause
  all of its employees, agents and contractors to
  not, as the case may be, thereafter utilize any
  of such property, documentation and materials or
  any reproduction of all or any portion of same in
  any manner whatsoever. This section will not
  apply to information that is considered private
  policyholder information as contemplated by the
  Insurance Act of Alberta.
• immediately send a notice to each plan
  participant outlining that there is a new service
  provider, and directing each plan participant to
  the new service provider. Also, any renewals
  which may be received by ABC Company after
  termination shall also be sent a notice as
  provided herein.
• The obligations of ABC Company as set forth in
  Section 7.3 (c) and (d) are subject to the
  proviso that ABC Company may retain copies of
  documents that may contain Confidential
  Information which are necessary for the conduct
  and proper record keeping of ABC Companys
  business in accordance with standard operating
  procedures or applicable law.

38
Contract Standards Partnership Support

• Obligations of ABC Company
• ABC Company shall
• perform the Services in accordance with and
  subject to the terms and conditions contained in
  this Agreement
• exercise the degree of care, skill and diligence
  normally used in performing services of a similar
  nature to the Services
• shall cause all work done in performing the
  Services under this Agreement to
• be performed in accordance with the description
  of the same as described in the ABC Company
  Proposal
• be supervised and carried out by competent and
  qualified personnel
• be performed to AMSC's satisfaction, acting
  reasonably and
• comply with the requirements of this Agreement
• at its sole expense, rectify or cause to be
  rectified, as the case may be, any defects or
  errors in the provision of the Services as
  specified from time to time by AMSC, acting
  reasonably
• make the ABC Company Representative reasonably
  accessible by AMSC at all times when the Services
  are being performed. The ABC Company
  Representative shall provide senior level input
  into the ongoing management and provision of the
  Services and will also provide AMSC with a direct
  and continuous link into the senior levels of ABC
  Company and shall help ensure the quality and
  delivery of the Services in accordance with the
  terms and provisions of this Agreement
• become an affiliate member of the AUMA and
  maintain such standing during the Term of this
  Agreement
• actively participate in and be a sponsor of the
  annual AUMA Convention

39
How Do You Manage This

• Day to day basis
• Reporting (examples Adjuster, Broker, etc.)
• Written
• Verbal
• Electronic
• Customers
• Expectations
• Needs
• Complaints
• Requests
• Role of Project Manager
• Implementation
• Management of Customer Service Center
• A Customer Representative when a Services goes
  wrong

40
Management Report Senior Director Example
41
Management Report Director Example
42
Management Report Outsourced Provider Example
43
How Do You Pay for Everything

• Service Cost
• Aggregation driving cost down
• Management cost to administer
• Overall lower pricing
• Better standards
• Improved services
• Enhancements to basic service (i.e. risk
  management, building valuations)
• Service Cost to Participants
• All cost factors considered
• Aggregate fee to participants based on
  participants profile (ie individual options
  chosen, claims ratios, usage,)

44
Transitional Plan

• Communication Plan
• Post Board
• During transition
• Post transition
• Performance and improvements over next year
• Partner advisement
• Underwriters
• Brokers
• Adjusters
• Legal
• Member advisement

• Independent review
• Implementation plan and timeline
• Staffing levels
• Service levels
• Insurance Agency requirement
• Underwriter Sponsorship requirement
• Corporation setup
• Infrastructure requirements
• Space
• Furniture
• Computers and systems
• Phone and systems
• Staff recruitment process
• Administrative
• Financial
• Licensed Professional Insurance Experts

45
Lessons Learned

• Ability to remove person
• Report on issues
• Tracking Service Standards
• Surveys
• Customer Focus Groups
• Drive Technology Changes
• Communication
• Partners
• Members

• Contracts
• Ability to address problem partners without long
  term termination
• Standards
• Performance measures
• Monitoring
• Customers
• No news is not always good news
• Customer service center
• Take care of those who already participating
• Use feedback to improve/change services
• Get them involved in the processes
• Software
• Building valuations

46
Matching Services

• AUMA/AMSC trust
• Customer experience if bad affects all trust in
  all areas including advocacy beyond the service
  which created the issue

47
Standard for Success

• The Customer is the owner and they ultimately set
  the expectations in the contracts and meeting
  those creates success in your services and
  ultimately your success as well

48

• THANK YOU