Demutualizations

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Overall. As an attorney in private practice, Mr. Hager provided full representation (including case presentation at demutualization hearings) for insureds, challenging the fairness of a specific demutualization. As Insurance Commissioner, Mr. Hager administered Iowa’s demutualization law and entered orders approving and disapproving of demutualizations, including formulas relating to policy holders in several demutualization issues.

Quick Summary: Specific Expert Skills as to Demutualizations:

  • Full knowledge of relevant statutes,
  • Including knowledge as to formulas and application of formulas as to policyholder and insurer remuneration,
  • Optimization of demutualization case results (for or against) through strategic and tactical guidance,
  • Cutting edge knowledge of successfully using the media component of demutualizations, and
  • Ability to provide expert testimony as to most phases of a demutualization proposal.

Given Mr. Hager’s extensive and broad-based experience in most aspects of insurance and reinsurance transactions, he is highly capable of providing (i) articulate demutualization testimony including that of the application of formulas as to policyholders and others and (ii) reports with comprehensive documentation.

Summary of Most Relevant Expertise

In summary fashion, I set out here my qualifications as to this matter. These qualifications should be read together with (i) my expanded statement of qualifications as set forth in my website at www.expertinsurancewitness.com and (ii) my Curriculum Vitae as set forth at that same website, inclusive of all of its references.

Because the insurance business is conducted across state lines and more specifically, nationally, the Insurance Codes and Department of Insurance rules and regulations (by whatever name) are substantially similar state over state. This is so because much of insurance regulation, though conducted primarily at the state level, is a result of adoption of national model statutes and administrative regulations as promulgated by the nation’s Insurance Commissioners through the National Association of Insurance Commissioners (NAIC) so as to assure uniformity state over state.

By way of example, Iowa’s demutualization statutes and claim practices laws are substantially similar to that throughout the U.S., the statutory form of which I enforced in Iowa. In addition, in connection with demutualizations, the financial reports filed by insurers, are all identical in form and content throughout each of the 50 states, with the exception of a handful of local requirements. As such, my regulatory experience is substantially similar to parallel experience and positions in throughout the U.S. (e.g., the position of Commissioner of Insurance or its titled equivalent in the balance of the states).

This experience is bolstered by my 40 years of direct insurance experience, including that of being a CEO of a major property casualty entity domiciled in Florida and doing business in the balance of the states and my 40 years of experience as a an insurance and reinsurance lawyer, practicing in Iowa and Florida and my five years of experience as an elected Member of the Florida House of Representatives where I currently serve as Vice Chairman of the Insurance Committee, with statutory oversight over all matters of insurance, the statutes of which are often overseen and/or executed by the FL OIR (i.e., the Florida department of insurance).

Regulatory: Demutualization Expertise. From a regulatory perspective, my expertise as to demutualizations can be found as follows:

I am a former,

  • Commissioner of Insurance (Iowa),
  • First Deputy Commissioner of Insurance,
  • Member of the National Association of Insurance Commissioners (NAIC),
  • Administrative Law Judge at the Department of Insurance (IA) (then known as a “Hearing Officer”), and
  • Assistant Attorney General assigned on a full time basis to the Department of Insurance.

In those capacities, on a daily basis, I had full regulatory oversight and responsibility for and I dealt directly with issues of demutualizations as they found their way into (i) insurance policy forms, (ii) rates, (iii) financial reporting and (iv) the application of the demutualization statutes themselves in approving or disapproving proposed demutualizations, inclusive of application of monetary formulas.

Legislative: Demutualizations Expertise

My background at both the U.S. Congress and with the Florida House of Representatives could be construed as regulatory in nature but I include it here under my non-regulatory experience because it seems to be a better fit. In addition to these legislative positions, I have also served as Deputy Mayor and Member of the City Council of the City of Boca Raton, Florida, where I headed up the Council’s insurance oversight function.

In addition to my regulatory background, I have served or am serving in the following capacities, each of which included daily knowledge of and interaction with demutualizations in connection with of demutualizations as they found their way into (i) insurance policy forms, (ii) rates, (iii) financial reporting and statutory formulation.

  • Legal Counsel to the Iowa House of Representatives,
  • Chief of Staff at the U.S. House of Representatives,
  • Elected Member of the Florida House of Representatives (as of April 2015, I am currently serving my 5th year in the Florida House of Representatives) where I serve as a Member and Vice Chairman of the Insurance Committee (among other committees), which has legislative oversight over all insurance operations in the state (as administered by the Florida Office of Insurance Regulation) including those relating to insurer demutualizations,
  • In addition, I have sat on and served as Vice Chairman of the Civil Justice Subcommittee of the Florida House, which has responsibilities as to Florida laws that establish (among other things) liability, which is of course the foundation to demutualizations, and
  • Elected Member of the Boca Raton City Council; Deputy Mayor of the City of Boca Raton, where I served as the Council’s lead on insurance issues.

Industry Expertise: Demutualizations. In addition to my regulatory background and my legislative background as to demutualizations, I have served or am serving in the following capacities, each of which included daily knowledge of and interaction with demutualizations in connection with (i) insurance policy forms, (ii) rates and (iii) financial reporting.

  • American Academy of Actuaries, Washington, D.C., (whose members are often intimately involved in demutualizations) where I served as General Counsel and Chief Lobbyist,
  • President and Chief Executive Officer of the National Council on Compensation Insurance (NCCI), a major U.S. property casualty insurance company doing business throughout the United States, including Florida, which is where NCCI is domiciled and employs about 1,000 personnel. While CEO, this position entailed responsibility for pricing some $100 billion of property casualty insurance premium,
  • Nationally certified Reinsurance Arbitrator (ARIAS-US), where I sit as an arbitrator on disputes between (among others) insurers and their reinsurers and enter decisions as to demutualizations, and
  • Attorney practicing primarily in the area of insurance and reinsurance and admitted to practice in Florida, Illinois (this Illinois license is in inactive status, placed there by me at my volition and eligible for reactivation at any point in time upon my request), and Iowa (all upon examination) with an insurance practice.

Legal Expertise: Demutualizations. In addition to my regulatory, industry and legislative background, I have served or am serving in the following legal capacities, each of which included daily knowledge of and interaction with demutualizations in connection (i) insurance policy forms, (ii) rates and (iii) financial reporting.

  • As stated above, I am an attorney admitted to practice in Florida, Illinois and Iowa (all upon examination) with an insurance practice;
  • Legal Counsel to the Iowa House of Representatives,
  • Practicing attorney at Hager & Schachterle,
  • Iowa Counsel to the Property Casualty Insurance Association of America (PCI),
  • Legal Counsel to the Professional Insurance Agents of Iowa (property casualty agents),
  • Legal Counsel to the Iowa Association of Life Underwriters (life, health and annuity insurance agents),
  • Practicing attorney (currently) in Florida at the Hager Law Firm, and
  • General Counsel and Chief Lobbyist to the American Academy of Actuaries, whose members are often involved in demutualization mattters.

Formal Education as a Basis for Demutualization Expertise.  In addition to my regulatory, legislative, industry and legal background, my educational background has also well-equipped me to provide demutualization testimony as follows:

  • Bachelors degree: Mathematics (specifically a B.A. in secondary mathematics education) - University of Northern Iowa,
  • Masters degree: Educational Psychology, University of Hawaii, and
  • Juris Doctorate degree (law degree) from the University of Illinois,
  • Bar Admissions: U.S. Supreme Court; Iowa, Illinois and Florida, and
  • Certified U.S. Reinsurance and Insurance arbitrator.

In the aggregate, these experiences have given me a significant grounding to provide demutualization testimony.

Contact Bill Hager at 561-306-5072 or via email to discuss your case.

bill

William D. Hager

Insurance and Reinsurance
Expert and Arbitrator

561-306-5072


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