ABPFIC FAQs

The ABA has announced that ABPFIC, the reinsurer of the ABA Sponsored Insurance Program, plans to purchase Progressive's interest in the Program and has created a managing general agency called ABA Insurance Services, Inc. in Cleveland to be composed of substantially the same insurance experts who currently administer the program. This page should help answer some pertinent questions regarding this transition. 


What is ABPFIC?

ABPFIC, formed by ABA and directed by a board of community bankers and state bankers association executives, partnered with Progressive to create the ABA Sponsored Insurance Program in 1987.  ABPFIC is owned by ABA member banks that are insured by the Program, and as the mutual reinsurer, distributes profits from the Program to these banks each year.

What is Changing?

ABPFIC will purchase Progressive's interest in the program.  This will include the Professional Liability Group, the people who administer the program in Cleveland.

Additionally, ABPFIC has selected Everest National Insurance Company, an A.M. Best A+ company, to be the new carrier for the ABA Sponsored Insurance Program.   (See question below for more about Everest National.) 

Why is ABPFIC purchasing Progressive's interest in the Program?

ABPFIC has long planned to be in a position to buy out its partner so that the banking industry would have full control of this important resource.  After 22 years of successful operations, ABPFIC now has the size, financial resources and experience to acquire complete and full ownership of the Program. 

As a customer of the Program, how does this impact me?

• For the most part, the transition is one of name and ownership structure only, and you can expect business as usual.
• You will continue to deal with the same talented staff that has serviced your bank for Progressive, only now this staff will be employed by ABA Insurance Services.
• If you work with a local agent, we will continue to work with that agent.
• At some time in the future, we will renew your policies on A+ rated Everest National Insurance Company (or in Hawaii, North Carolina or Vermont, Everest Re) paper.  Your policies will continue to be issued by Progressive until Everest is able to complete the necessary filings.
• Our products, underwriting guidelines, pricing philosophy and commission structure will not change due to this transition.
• ABPFIC will continue to be owned by ABA member banks that are insured by the Program.  ABPFIC plans to continue its member distributions as determined by the ABPFIC Board based on program profitability. 

Who is Everest National Insurance Company?

Everest National Insurance Company focuses on specialty property and casualty insurance business and is licensed to conduct business in all 50 states, including the District of Columbia. The company is rated A+ XV (Superior) by A.M. Best. To learn more about Everest National, visit www.everestnational.com.  The company is listed on the NYSE (NYSE:RE).

What will happen at renewal?  Will my premium change?  Might I be non-renewed?

Virtually everything about the program will remain the same, including staff, underwriting guidelines, pricing philosophy and coverages.  There is no change to underwriting guidelines due to this structural change.

Why make a move at this time?  Is this related to recent events in the banking industry?

This purchase has been a longtime goal of ABPFIC and is not related to specific economic conditions or recent events in the banking industry.  In fact, this transaction is a demonstration of the success and financial strength of the Program.

Will ABA member banks still be shareholders of ABPFIC and receive annual profit distributions?

ABPFIC has declared $67.5 million in distributions to ABA member policyholders since the program's inception.  ABPFIC will continue to be owned by ABA member banks insured by the Program and intends to continue distributing profits annually to these banks.  Of course, any future distributions will continue to be based on the profitability of the Program.

Will banks that are not ABA members receive a distribution?

Only ABA member banks may be ABPFIC shareholders and receive profit distributions.  However, a bank need not be an ABA member to purchase coverage from the Program.

Will the Program still be directed by the bankers on the ABPFIC Board and have State Bankers Association representation on that Board?

Yes, the Board and subcommittee structure will remain the same.

I am insured by the ABA Sponsored Insurance Program - how will this change impact my policies?

There will not be any changes to your existing policies or to the high quality customer service to which you are accustomed.  Your policies will continue on Progressive paper, and the same staff will continue servicing your policy.  At some time in the future, we will renew your policies on A+ rated Everest National Insurance Company (or in Hawaii, North Carolina or Vermont, Everest Re) paper.  However, be assured that your coverage and pricing philosophy will not change due to this transition and your contacts, policy servicing and claims handling will remain with the same group of people.

Whom do I contact if I have questions about my policy?
You will continue to deal with the same personnel you have been dealing with for years.  Once the transition is completed, the program will be called ABA Insurance Services, Inc. and will be staffed by substantially the same underwriters, claims attorneys and others that were formerly Progressive employees. The phone number -- (800) 274-5222 -- will not change, nor will the high quality customer service to which you are accustomed.

Will my policies continue to be written on Progressive Casualty Insurance Company?

There will not be any changes to your existing policies.  At some point in the future, we will begin writing policies on A+-rated Everest National Insurance Company (or in Hawaii, North Carolina or Vermont, Everest Re).  You will be notified in advance of your policy renewal if your policy will be issued on the new company.  Advance notice will be provided to you prior to your coverage being written on an Everest National policy. Be assured that your coverage and pricing will not change due to this transition.

I have an open claim.  Now what?

Your claim will continue to be handled by the same claims staff under the same guidelines.


Can I still use my local insurance agent?

Yes.

Will Progressive start up another bank insurance program?

Progressive has no intention of starting up another program.  Substantially all staff involved in the current program are expected to migrate to the new ABA Insurance Services.

Where can I find out more about ABPFIC's purchase of the Progressive Liability Group (PLG)?

Go to www.aba.com/CAB to review the press release.

Whom should I contact if I have additional questions?

At the American Bankers Associaton:
John Wolff, 1-800-BANKERS, ext. 5486
Monica Condon, 1-800-BANKERS, ext. 5475
Robin Gordon, 1-800-BANKERS, ext. 5128
E-mail: cabreports@aba.com

At Progressive:
Judi Kovach, 1-800-274-5222

Or: Contact your agent.