<html>
<head>
</head>
<body class='hmmessage'><div dir='ltr'>
<style><!--
.hmmessage P
{
margin:0px;
padding:0px
}
body.hmmessage
{
font-size: 12pt;
font-family:Calibri
}
--></style>
<div dir="ltr">Dear Mr./Ms. SM,<div><br></div><div><br></div><div>I was wondering if you could help me out with something. I was looking </div><div><br></div><div><br></div><div>at ways for MCPB Directors and Officers to get insurance coverage. You</div><div><br></div><div><br></div><div>know. Just in case there's a big fat lawsuit. I think that Mr. John Sakowicz</div><div><br></div><div><br></div><div>brought this up a couple of years ago. And that MCPB didn't have any</div><div><br></div><div><br></div><div>such coverage. So I went looking for it. But ran into this:</div><div><br></div><div><br></div><div><a href="http://www.investopedia.com/terms/u/uninsurable-risk.asp" target="_blank">http://www.investopedia.com/terms/u/uninsurable-risk.asp</a></div><div><br></div><div><br></div><div>It's called 'Uninsurable Risk': "A hazard or condition that has a high</div><div><br></div><div><br></div><div>likelihood of loss, or in which the insurance would be considered against</div><div><br></div><div><br></div><div>the law. Insurance companies limit their losses by not taking on certain</div><div><br></div><div><br></div><div>risks that are very likely to soon result in a loss." </div><div><br></div><div><br></div><div>In fact -- at least according to Mr. Sakowicz -- the absence of Directors </div><div><br></div><div><br></div><div>and Officers coverage is one of the factors leading to an FCC complaint</div><div><br></div><div><br></div><div>that drained MCPB of $30,000+ in attorney fees. Surely if MCPB were </div><div><br></div><div><br></div><div>adequately insured, the insurance company would have paid for it.</div><div><br></div><div><br></div><div>Given that MCPB appears to delegate important functions -- such as </div><div><br></div><div><br></div><div>the review of Form 990s -- to non-voting directors, what would be the </div><div><br></div><div><br></div><div>incentive for any insurance company to cover voting directors here?</div><div><br></div><div><br></div><div>Sincerely,</div><div><br></div><div><br></div><div>Scott M. Peterson</div><div><br></div><div><br></div><div>Mendocino</div><div><br></div><div><br></div><div>- - - - - - - - - - - - - - - - - - - - - - - - </div><div><br></div><div><br></div><div><br></div><div><br></div><div><br></div><div><span style="font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15000000596046448px; background-color: rgb(255, 255, 255);"></span></div></div>
</div></body>
</html>