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March 23, 2004
Dear Paddlesports
Colleagues:
This letter is to inform
you that the Recreation Insurance Association (RIA) was unsuccessful in
obtaining reinsurance for the policy year beginning March 15, 2004. As a result
we have no alternative but to discontinue operations this year.
We know that insurance issues are a key concern of yours this year,
in part because of the issues that RIA faced. You should know that several
insurers have reentered the market and products are available for all segments
of the paddlesports industry. Unfortunately, the pressure on RIA from the
absence of other insurers in 2003 has led to our decision to discontinue
operation in 2004.
RIA does remain in business though. The
company will continue to oversee the claims responsibilities it has.
Additionally, CEO Harry Addison will continue to work with our partners to
ensure that all claims are resolved in the best interests of our insureds. More
importantly, however, the RIA board is developing plans to reopen the program
in 2005.
RIA is seeking a new insurance carrier, or
"fronting company," that issues policies. We are working with the leading
domestic reinsurance broker to locate an A.M. Best "A" rated company to provide
the fronting policy as well as reinsurance for our program in the future.
We are planning to be up and running by the spring of 2005. We
hope to expand the program to include property, crime, and workers'
compensation in addition to the general liability and automobile coverage that
is already part of RIA.
We greatly appreciate
the support of our industry colleagues who supported RIA's stock offering this
year. Their generosity in choosing to invest in RIA is inspiring and we
hope they will invest at a later date when we undertake a new stock offering.
We also want to thank you for your support and confidence in RIA
and the Professional Paddlesports Association (PPA) through this difficult
period. Although we know you would rather be focused on your business than on
insurance, your support and encouragement for us as we pursued all avenues to
keep RIA operating is greatly appreciated. On behalf of the boards of directors
of both RIA and PPA, we thank you for supporting RIA - Our Industry's
Insurance Program.
If you have any questions
about RIA, please do not hesitate to contact either of us. Harry may be reached
at harryaddison@cs.com and Matt may
be reached at matt@propaddle.com.
Sincerely,
Matthew E. Menashes PPA Executive Director
Harry Addison RIA
President/CEO
Recommended
Paddlesports Industry Insurers
CBIZ Benefits and
Insurance Services, Mike Fetchero or Alice Harman, 800-624-5914
