 |
 |
 |
Immigration concerns at clubs prompt D&O enhancement Aon Association Services adds coverage for illegal alien penalties By Phil Zinkewicz For decades, the U.S. government has tried to deal as fairly as possible with people from foreign nations who want to settle on these shores. However, in recent years, as world traveling has become more the norm than the exception, the issue has become more problematic with less than patient people from other parts of the world or people with nefarious intentions finding ways to cross United States borders in the dark of night, thus earning for themselves the label “illegal aliens.” The federal entity then known as Immigration and Naturalization Services (INS) estimated that 7 million illegal aliens were residing in the United States in January 2000. Few will deny that that number has increased markedly since that time. According to the INS, 69% of this unauthorized immigrant population was from Mexico. The top 15 “sending” countries accounted for 89% of the total illegal alien population; these countries were Mexico, El Salvador, Guatemala, Colombia, Honduras, China, Ecuador, Dominican Republic, Philippines, Brazil, Haiti, India, Peru, Korea and Canada. If nothing else, this indicates that the illegal alien problem that currently challenges the United States does not stem only from the U.S.-Mexican border, as some current media reports suggest. While government officials have wrestled with the problem of illegal aliens for a long time, it was really after 9/11 that the general public began voicing concern. Worry over the effects illegal aliens have on the overall economy, and sometimes out-and-out paranoia over the possible threats they may pose to national security, have turned the illegal alien issue into the proverbial political football. For these reasons, the federal government is taking steps to tighten or reinforce existing laws regarding immigration, while legislators ponder what further steps may be taken. One existing law that has garnered attention is the Federal Immigration and Nationality Act of 1952. The act, which has not been fully enforced until relatively recently, calls for punishment for those who: • assist an alien he or she should reasonably know is illegally in the United States, or who lacks employment authorization, by transporting, sheltering or assisting him or her to obtain employment • encourage that alien to remain in the U.S. by referring him or her to an employer or by acting as employer or agent for an employer in any way • knowingly assist illegal aliens due to personal convictions Penalties upon conviction include criminal fines, imprisonment, and forfeiture of vehicles and real property used to commit the crime. Anyone employing or contracting with an illegal alien without verifying his or her work authorization status may face punishment. For employers, policing their work force to make certain they are not in violation of the act is not simple. Forged papers obtained from an underground supplier may not be easily detected. Even background checks are not infallible, and employers in industries with rapid turnover may find themselves particularly bedeviled. Private clubs vulnerable Directors and officers of nonprofit clubs around the nation—golf clubs, racquet clubs, country clubs and so on—are particularly vulnerable to penalties imposed for hiring illegal aliens. To address this situation, Aon Association Services, a Washington, D.C.-based program administrator with expertise in providing insurance for nonprofit organizations and the provider of the D&O program for National Club Association (NCA) members, has devised an “enhancement” to its D&O program. Recently, the NCA, which monitors and lobbies for legislation that might affect clubs, endorsed the enhancement, which includes coverage for civil penalties imposed for violations of the Federal Immigration & Nationality Act, including 8 U.S.C.1324a (Unlawful Employment of Aliens). “Illegal immigration is a problem for clubs who want to stay within the letter of the law, and our enhanced D&O insurance program can help minimize their risk,” says NCA Spokesman Robert Cosentino, announcing the endorsement. “It is definitely something all clubs can—and should—have,” he says. Eric Johnson, of Aon Association Services, the program’s manager, says that penalties for unlawful employment of aliens may include requiring a club to “cease and desist” from such violations. In addition, civil money penalties can be imposed, along with criminal fines and imprisonment. The federal law has been around for some time, but it is only recently that those enforcing it are being less lenient than in years past, according to Johnson. He says also that geography plays a role in this development. Understandably, border states such as California, Texas and Florida are most vulnerable. “Our NCA-endorsed program enhancement provides coverage for such fines and penalties,” Johnson explains. “There is a $50,000 sub-limit, and the enhancement includes protection against actual or alleged violations resulting from employment, hiring and/or retention of unauthorized aliens. The program protects clubs with an insurer’s option to defend any criminal proceedings resulting from any actual or alleged violations of the Federal Immigration & Nationality Act or other federal immigration law. To the best of our knowledge, our NCA-endorsed program is the only D&O liability insurance program for clubs in the nation that provides this coverage enhancement.” Through this NCA-endorsed program, Johnson points out, clubs can also purchase coverage for employment practices liability, club membership discrimination and outside directorship liability, among other protections. “Full policy limits are generous and can be tailored to meet the club’s needs, up to $10 million,” says Johnson. “In addition, this program features a waiver of deductible for a finding of no liability, if the deductible is $7,500 or less. Moreover, the coverage is backed by an A+ A.M. Best rating.” While NCA membership is not required for coverage, as an added bonus, the program offers a 5% premium savings for NCA members, according to Johnson. “However, we encourage all clubs to take a closer look at the coverage,” says NCA’s Cosentino. Johnson adds that agents and brokers who have clubs as clients, whether NCA members or not, are welcome to contact him for further information. One program administrator that uses Aon’s D&O product is New Jersey-based Creative Agency Group. Jonathan E. Aber, national program manager, says the agency specializes in niche markets, including private golf and country clubs. “We have exclusive rights to market certain products that we have designed specifically for those groups,” Aber explains. “Some are marketed locally, some regionally and some on a national basis. “We haven’t seen any hard evidence that there are major claims arising out of the immigration area yet,” Aber says, “but we know the exposure exists, and potential claims may be on the horizon. We utilize the Aon Association Services D&O program as it has been a premier market for this product for many years. We think the enhancement that was recently announced is a positive thing for our clients. Anything we can offer to improve protection for our clients is beneficial.” * For more information: |
|
||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
