THE UKRAINIAN NATIONAL ASSOCIATION FORUM (01/14/01)

THE UKRAINIAN NATIONAL ASSOCIATION FORUM

On the subject of direct billing

by Martha Lysko
National Secretary

With the inevitable transfer of the Ukrainian National Association's branches to direct billing, I decided to contact our Actuarial Firm Bruce & Bruce to get their opinion regarding this matter. Below, I am printing my letter and their reply.

December 8, 2000

Bruce & Bruce Co.
916 Sherwood Dr.
Lake Bluff, IL 60044

Dear Mr. Bruce:

The recent communique from the New Jersey Department of Banking and Insurance dated October 2, 2000, recommended that the UNA go on direct billing beginning January 1, 2001. This not only presents a technical problem to the Home Office staff and secretaries, but also is of great concern to the UNA executives in terms of what this practice might do to our financial well being. In your many years of experience as a consulting actuary to 30 fraternal organizations, you must be aware of the outcome of direct billing in other societies. My concerns are as follows:

1. Is there a significant drop in premium income with direct billing?

2. Are society members less inclined to pay premiums to the Home Office?

3. Is it more difficult to organize members because of direct billing?

4. Do other societies view collection of premiums by branch secretaries as absolutely necessary to the well-being of the society?

5. How many of the 30 societies you serve are on direct billing?

I would greatly appreciate your input into this questionnaire. With your permission I would like to reprint your reply in our official publications, The Ukrainian Weekly and Svoboda. Thank you for your cooperation. We will appreciate a frank and honest reply based on your valued experience.

Very truly yours,
Martha Lysko, CLU

* * *

December 12, 2000

Ms. Martha Lysko

Ukrainian National Association, Inc.
P.O. Box 280
2200 Route 10
Parsippany, NJ 07054
Re: Direct Billing

Martha:

Thank you for your inquiries of 12/8/00. Comments will be made in the order of presentation.

(1) There has been no drop in premium volume when direct billing was adopted. This observation is based on the experience of about 30 of our clients which have adopted direct billing. In the first year when the change is made, there is generally a slight increase in premiums due to money being held in abeyance.

(2) New members prefer to pay directly to the Home Office, especially when the sale is made by a trained field worker. When the sale is made by another member, many premiums will be paid by mail to the lodge. It is just as easy to pay directly to the Home Office. The lodge attendance figures show that requiring premium payment to be made directly to the lodge does not improve attendance.

(3) It is not more difficult to organize members because of direct billing. Lodge activities and attendance are separate from the efficiency of collecting premiums. Direct billing is an absolute necessity to compete in the current market. Otherwise, premiums are not competitive. The recent rate reductions were based on the direct billing procedure, so as to give the member the best possible deal.

(4) Other societies do not consider lodge collection of premiums as being essential. Those who thought so prior to conversion to direct billing changed their minds afterwards.

(5) We serve over 30 fraternal societies. All use direct billing to one degree or another. Only one large society is still in the process of converting. All other larger societies converted many years ago. A few small societies allow some lodges to collect, but only as a personal accommodation based on experience. It is becoming more and more difficult to obtain qualified lodge secretaries who are willing to expend the time and energy.

It is recognized that conversion to direct billing may result in financial penalty to some lodge secretaries. To counteract this and to facilitate changeover, some societies provided a temporary support.

I hope I have answered your questions. Please let me know if there are others. I affirm that direct billing has been hugely successful and has proven to be a necessary step in survival in today's market. If you would like to confirm these observations with others, I recommend contacting any of the larger societies reported in our Comparative Exhibits in our Actuarial Report. I'm sure the officers of any of those societies will be pleased to share their experience.

Sincerely,
Bruce and Bruce Company
Consulting Actuaries
R.E. Bruce, FCA, MAAA

Comments on proposed UNA By-Laws changes

Rochester District Committee

The Rochester District at its meeting on December 2, 2000, discussed proposed changes to the By-Laws of the Ukrainian National Association.

After discussing the proposals they recommend the following changes be adopted:

reduce the number of Advisors from 14 to nine;
eliminate payment of expenses to honorary members for attendance at conventions or annual meetings;
eave the Executive Committee as is, but eliminate the position of one vice president;
hold UNA conventions at Soyuzivka to reduce expenses;
limit the convention to three days; and
stipulate that no delegate shall speak more than twice at the convention.

Present at the district meeting were: Peter Dziuba, Christine Dziuba, Petro Leschyshyn, Alexander Skibickyj, Lidia Chomiak, Bohdan Chomiak, Lubomir Galuga.

Buffalo District Committee

Following is comments on the proposed UNA By-Laws changes submitted by the Buffalo District Committee.

The UNA District Committee of Buffalo, N.Y., strongly supports the proposed amendments to the UNA By-Laws. Also we would like to request only one UNA advisor per UNA district.

Young UNA'ers

Oksana Hryvinska, daughter of Roman and Nadia Hryvinsky, is a new member of UNA Branch 277 in Hartford, Conn. She was enrolled by her father.
Oksana Justine Zharovsky, daughter of Andrea and Vadim Zharovsky, is a new member of UNA Branch 216 in Philadelphia. She was enrolled by her great-grandmother Anastasia Sagaty.
John, Nicholas and Luke Szendiuch, were enrolled into UNA Branch 277 in Hartford, Conn., by their grandfather Alex Szendiuch. The boys are the sons of Maura and Jorge Szendiuch.

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