Insurance company CEO responds
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[MAY 26, 2005]
terminating the services of the city's insurance consultant, Debbra
Callan of Independent Risk Managers, went out May 17. By May 20 city
attorney Bill Bates got a call, the first of two.
A Chicago lawyer, Richard Waress,
called on behalf of Callan, saying he had reviewed the letter and
was taking the matter up the ladder in the Independent Risk Managers
and the Horton Group. He said that the main problem appeared to be
less-than-optimal communication in the bidding process
The letter documented Callan's failure
to disclose personal and professional relationships to the
recommended insurance group and agent, and her failure to point out
that the recommended insurance did not meet deductibles in several
areas in recent bid specs for workman's compensation and liability
insurances. The city no longer wished to retain her services.
In the next phone call from the
lawyer, on Tuesday, he was speaking on behalf of Callan, Independent
Risk Managers and the Horton Group, and it had gone to the highest
level, Mr. Horton of the Horton Group.
The lawyer said that Mr. Horton was
concerned and unhappy at what had happened. He wished to maintain
the good will of the city of Lincoln, as well as good will within
A faxed letter arrived at 4:59 p.m.
Tuesday, agreeing to relieve all parties -- the city of Lincoln,
Independent Risk Managers and the Horton Group -- from the contract.
But it went further.
[to top of second column in this article]
The contract was nullified as of the
date that it was contracted on Feb. 1. Included in the response was
an offer that all fees for service that have been paid since that
time will be returned to the city.
In summary Bates said that it was
relayed to him that Mr. Horton was troubled and concerned that it
was perceived that they did not adequately perform their service.
Horton is committed to mutual trust that arises out of highest
professionalism and business standards.
Mr. Horton has offered to personally
meet to maintain good will with the city. The company would like to
be reconsidered as the city's insurance consultant.
Bates said that the company was very
responsive and concerned. He said that with today's insurance
matters for the city we need a consultant. There were chuckles when
he added that he'd had a few calls with offers to do that. They're
out there, he said.
The insurance committee, with
Alderman Marty Neitzel as chair, will meet to discuss the matter.