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What is Commitment Plus?
The only profit-sharing program of its kind in the architects and engineers insurance marketplace.
How much has been returned to CNA/Schinnerer insureds since the program's inception?
From its inception, Commitment Plus has provided insureds with returns totalling more than $408,000,000.
Is the program currently producing returns?
The CNA/Schinnerer program is currently not making an underwriting profit. The current return calculation is based primarily on policy year 2000 results. Rate levels in 2000 were the lowest since the early 1980s. Rate levels will need to return to a profitable level and be sustained for a period of time before the calculation will allow for a return.
What is the purpose behind the Commitment Plus program?
Developed in conjunction with the AIA and the NSPE, Commitment Plus caps CNA's underwriting profit. Over a designated period, CNA and Schinnerer return any premiums that exceed the cap to the insureds who generate the premium. Since 1990, more than 128,000 checks totally over $408 million in returns have been sent to insureds as a result of the Commitment Plus plan.
Were CNA/Schinnerer insureds being overcharged in order to create a profit-sharing plan?
No. The program is the largest writer of Architects and Engineers Professional Liability with prices that are competitive with carriers who do not offer a profit sharing program. As mentioned above, CNA caps its underwriting profit. If good risk management practices of our clients prevent heavy losses, CNA/Schinnerer insureds enjoy profit-sharing returns. Because of recent losses in the program, returns are not possible.
Will there be returns for CNA/Schinnerer insured firms in the future?
That will depend on the risk management practices of our clients, and the cost for comprehensive professional liability coverage. At the present time, we do not anticipate making a return in the immediate future.
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