IN THIS REPORT . . .

› About the AIA Trust

› Statement of Purpose

› Goals of the AIA Trust

› 2009 Highlights

› AIA Trust Collaboration with the AIA

› AIA Trust Programs

› AIA Trust 2010 Plans

ABOUT THE AIA TRUST

The AIA Trust was established 57 years ago to provide quality benefits to AIA Members. It was formed as a separate entity from the AIA due to IRS regulations governing ERISA trusts. The AIA Trust operates on a break-even basis, receiving revenues from program partners in the form of administrative fees. The net of operating expenses is frequently invested in member activities and benefits, including white papers on cutting edge topics, component seminars and meeting sponsorships, scholarships and donations. The Trust uses no AIA dues dollars, reimbursing the AIA for all its overhead.

The AIA Trust is one of the largest enterprises allied with The American Institute of Architects. The dollar volume managed by Trust providers from the “policies in force,” including retirement assets, is more than $150 million. The Trustees and Executive Director work with independent consultants to identify and evaluate various programs to ensure the best available plans are offered to members and components. The Trust negotiates, obtains, and maintains these agreements. With 20,000 policies and plans combined, many serving entire firms or small groups, the Trust serves one of the largest segments of the AIA membership.

• Albert W. Rubeling, Jr. FAIA, Chair
• Larry R. Livergood, AIA, Chair-elect
• Stephen Q. Whitney, FAIA, Secretary-Treasurer
• Charles L. Desmone, AIA, Trustee
• Marlene S. Imirzian, AIA, Trustee
• Dawn Kirkwood, Component Executive, Trustee
• Ivenue Love-Stanley, FAIA, Trustee
• Ann Casso, Executive Director

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STATEMENT OF PURPOSE

It shall be the purpose and the policy of The AIA Trust to develop and make available at the greatest possible value, insurance and benefit programs for members and components of the American Institute of Architects; and to serve as a risk management resource for the practice of architecture in cooperation with the Institute.

GOALS OF THE AIA TRUST

1. To provide responsive programs
2. To provide quality service
3. To add value by providing balance between cost and value
4. To remain financially stable
5. To be and be perceived as a valuable and essential membership benefit.

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2009 HIGHLIGHTS

TheAIATrust.com

The AIA Trust launched an entirely new web site at the AIA National Convention in San Francisco. Dramatic improvements were made in program information. New features were incorporated including easily accessible applications and rate information and specialized resource pages for members and components. The Trust web site now boasts a dynamic design and smooth navigation, in addition to summary pages on firm benefits, member resources, and component programs. The information is updated regularly.

AIA Trust News

In its eighth year of newsletter publication, the Trust also launched in 2009 its first ever electronic newsletter. Like the former printed version, the electronic version is published quarterly and mirrors a dynamic design consistent with the new Trust website and other Trust branding. In addition, the Trust continued to publish a semi-annual printed newsletter to ensure appeal to all member segments. The newsletter is sponsored by AIA Trust program providers and carries articles about various risk management, health and safety tips, and program information; articles are accessible online, organized by topic. The newsletter is sent to all AIA firm owners/managers, AIA Board members, and component leadership.

White Papers

The Trust published its third white paper in a series of risk management resources for members. The white paper topic and accompanying convention seminars addressed the cutting edge issue of electronic data liability and ‘meta data.’ By the 2009 AIA National Convention the white paper was posted on a dramatic web page and CD handouts were distributed free to member convention attendees.

The AIA Trust also initiated another white paper for delivery at the 2010 AIA National Convention in Miami with a focus on the liability and risk management issues of BIM including liability exposure, managing risk and case studies. The white paper is still under development and the Trust plans to distribute CDs of the paper at convention and post it on the Trust web site for members’ benefit.

New Administrator

Following the Trust’s selection in 2008 of a new administrator, AGIA, for the AIA Trust’s Health & Welfare Programs and the negotiation of a contract with AGIA beginning January 2009, the Trust worked to ensure smooth transition process from Aon in first quarter, including appropriate ‘closeout’ with Aon records transfer. The transition process included visiting AGIA offices and establishing procedures to ensure efficient customer service. Subsequently, the Trust conducted a competitive analysis on all Trust welfare products for benefits and rates assessment and identified several new programs to test within the next year with AIA members including travel assistance, hospital income, and cancer insurance.

Exploring Healthcare

In 2009, the Trust explored four possible healthcare providers for member health insurance which included numerous meetings and extensive review of materials. The Trust also wrote a summary report detailing the recent history of healthcare insurance and AIA’s related program and opportunities, and possible future alternatives which was shared with the AIA Board and task force at their request. Discussions are continuing with Trustmark to explore a ‘test’ program in 2010; currently, they offer competitive health insurance plans in at least 19 states. This test is pending agreement with Trustmark and may be launched in the first half of next year. In addition, the Trust is holding discussions with ASAE about another association health insurance product to determine whether it would be of value to AIA members

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AIA TRUST COLLABORATION WITH THE AIA

To promote benefits for members, the AIA Trust works in partnership with many AIA programs. The Trust also helps sponsor events while acquainting members with vital Trust benefits. Some 2009 collaborative ventures include:

• The tenth year of the AIA Trust-CNA/Schinnerer Component Grants program awarded another $14,500 to AIA Components bringing the total awards to more than $160,000 from this program. The 2009 program yielded five grant winners: AIA St. Louis, AIA Iowa, AIA Dallas, AIA Ohio, and AIA Columbus who were recognized during the AIA National Convention in San Francisco.
• The AIAS/AIA Trust Scholarship Program established in 2007 to assist financially-challenged students with their education continued. AIAS submits an annual report to the AIA Trust.
• At Grassroots 2009, the AIA Trust in conjunction with CNA/Schinnerer helped sponsor the Institute Open House attended by all participants.
• The AIA Trust contributed $5,000 to the College of Fellows for the Latrobe Scholarship.
• The AIA Trust helped to sponsor the Richard Upjohn Convention Reception and the AIA New Board Reception.
• The Trust also helped sponsor the CACE Annual Meeting in Phoenix.
• The Trust sponsored several free component seminars in conjunction with LegaLine this year.
• The Trust sponsored the Young Architect’s Forum email newsletter, the YAF Connection, emailed to more than 10,000 young member architects, and included articles on the topics of third party beneficiaries and providing voluntary services.
• In conjunction with AIA Membership, the AIA Trust is continuing to offer a guaranteed issue $15,000 life insurance policy to all new architect members with premiums paid for the first full year with a new easy upgrade to $100,000 paid life insurance.
• In addition, the Trust continued to offer a benefit for first-time AIA members of a free, six-month subscription to LegaLine, the legal information service designed by and for architects.
• At the AIA National Convention in San Francisco, the Trust exhibit offered members the new CD on their recently commissioned white paper on Meta Data as well as massages, gifts, and important program information.
• The AIA Trust continues to meet with the AIA Risk Management Committee to discuss collaborative educational efforts and Commended Professional Liability Insurance program issues.

AIA Trust CES Seminars and Self-Assessment Tests

The AIA Trust CES program began in 1995, continuing in 2009 with fewer members completing the tests, likely because HSW credits are not offered. However, of the 23 completing the tests, some earned the maximum number of credits. There are 25 AIA Trust Self-Assessment Tests (SATs) each providing one Learning Unit (LU). The AIA Trust also sponsored the seminar on Meta data at the 2009 AIA Convention and the AIA Trust LegaLine continues to offer seminars to components, providing hundreds of AIA members with continuing education credits. This year, 31 members attended the LegaLine seminar on Shop Drawings, Change Orders, and Claims hosted by AIA Ventura County.

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AIA TRUST PROGRAMS

The AIA Commended Professional Liability Insurance Program

Since 1999, the Trustees have managed the business, financial, and marketing aspects of the commended program with CNA/Schinnerer. The AIA has a three-year contract with Schinnerer through 2010.

Life Insurance

New York Life underwrites both the Trust life insurance programs for firms and individuals offered by an extremely reputable company. The 10-year and 20-year level term life programs are competitively priced, offering steady fixed premiums. The firm plan is a valuable employee benefit. Thousands of AIA members have converted their free one-year policies to paid policies with the Trust.

Disability Coverage

Disability coverage is available as individual plans from New York Life and as employee plans with a new highly competitive firm disability plan offered by UNUM. The Trust is trying to increase member understanding about the importance of disability coverage in protecting home and business needs.

Retirement Plan

Administered by AXA Equitable Life Insurance Company, the AIA Members Retirement Program maintains strong participation. The Trustees renegotiated a contract beginning in 2009 requiring a number of initiatives, including a large plan product with a tiered/lowered fees and improved participant investment information with fund fact sheets including Morningstar and risk data. Unfortunately because of economic constraints, the requested web site improvements have been delayed are tentatively to be implemented in 2010.

Personal Insurance

Through the AIA Trust, Liberty Mutual offers personal lines coverage which includes automobile, homeowners, tenant, umbrella, as well as home office coverage to AIA members at significantly discounted premiums. As the exclusive provider of these programs, Liberty has significantly increased their marketing and enrollment of AIA members. LifeLock, offering identify theft protection with a million dollar guarantee, continues to be offered AIA members at a 30% discount.

Business Owners Protection Program

Provided by CNA/Schinnerer, business coverage is an important and diverse program offering necessary insurance coverage for AIA firms as well as for AIA Component offices in the areas of general liability and property, with options to add coverage for business auto, valuable documents, workers compensation, umbrella, and employment practices liability.

LegaLine

A legal information service offered by Charles F. Heuer, FAIA, Esq. is aimed at small firms to help members negotiate and interpret contracts, determine whether they need to hire a lawyer, resolve or mitigate disputes, and help them manage risks and prevent lawsuits. AIA Component subscriptions are available to offer as a local member benefit and a 6-month free subscription is offered to first-time members. LegaLine also offers several Trust-sponsored CES seminars on risk management and intellectual property.

Health Insurance

The AIA Trust offers members access to a network of highly-rated insurance companies through healthinsurance.com that provide independent medical coverage for AIA members individually, for small firm groups and families, and for component offices. As noted earlier in this report, the Trust is continuing to explore options and is pursuing a test plan offered on a limited basis in 2010. In the area of healthcare coverage, the Trust also offers Long Term Care Insurance, Medicare Supplement Insurance, and Dental Insurance.

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AIA TRUST 2010 PLANS

1. Provide excellent stewardship for the commended professional liability program: The AIA Trustees and independent consultants, working with CNA/Schinnerer and in conjunction with the AIA Risk Management Committee and AIA Management, will continue to review the program to ensure that it meets the AIA Commendation Criteria. The Trustees will continue to monitor the program, ensure an annual review process, fulfill its role requirements, and evaluate the marketplace and member needs with respect to professional liability insurance. The Trustees strongly embrace their role to ensure that AIA Members receive the best value available for this important program.
2. Emphasize value: Working with outside expert-consultants, the Trust will evaluate marketplace opportunities and the current Trust providers in terms of their responsiveness to member needs to ensure the best programs available are offered to AIA Members and Components.
   The AIA Trust continues to explore opportunities to offer additional and improved programs of value to AIA Members and Components. In 2010, the Trust will test a number of new programs, including testing a potential health insurance program, other healthcare related programs such as hospital income, cancer insurance, an improved dental plan, and a travel assistance program.
3. Emphasize Member Service: Working with AGIA Insurance Services, CNA/Schinnerer, AXA/Equitable, LegaLine, and Liberty Mutual, the Trust in its role as member advocate will continue to provide high quality service to Members.

The AIA Trust all-new website showcases both member and component programs in a comprehensive, easy-to-navigate, and aesthetically appealing format. Member and component resources are easy to find and information on Trust insurance and financial programs is easy to understand and access. The Trust is committed to working with AIA Components on educating members about Trust program benefits as well as offering meaningful and needed benefits to AIA Component staff whenever possible.

In 2010, the AIA Trust will offer Members another white paper on the cutting-edge topic of risk management and liability issues concerning BIM. The Trust is exploring a white paper and seminar for 2011 on the topic of Standard of Care and how its being impacted by technological and sustainability developments. The Trust continues to investigate any opportunities to offer a beneficial health insurance plan to its members in the future.

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The AIA Trust News | Annual Report 2009
Published by The AIA Trust, 1735 New York Ave., NW, Washington, DC 20006