A D V E N T I S T R I S K M A N A G E M E N T, I N C .
SOLUTIONS
Providing Solutions to Minimize Risks
JUNE 2010 VOLUME 14 ISSUE 6
Inspiration
"And the LORD went
before them by day
in a pillar of cloud to
lead them along the
way, and by night in
a pillar of fire to give
them light, that they
might travel by day
and by night."
Exodus 13:21
Motivation
"The will of God will
never take you to
where the grace of God
will not protect you."
Bernadette Devlin
www.adventistrisk.org
A Ministry of
Protecting Resources
I
n 1935, insurance professional William
Benjamin approached the General
Conference with a plan to start an
insurance company to protect the resources
of the church. After much debate and
number crunching, church leaders agreed to
fund $25,000 to capitalize The International
Insurance Company of Takoma Park,
Maryland. That initial investment has grown
over the past 75 years to address the needs of
the expanding resources of the church. One
man's vision and inspiration has impacted
the protection of church assets through a
unique ministry known today as Adventist
Risk Management.
Protecting church resources is ministry!
While people make up the church, it would
be difficult, if not impossible, to perform the
church’s mission without its buildings and
other physical assets.
Jesus used a risk management parable
to show the relationship of the spiritual life
and providing Christ as the rock to build our
lives upon. This parable is found in Matthew
7 and many children have learned the story
through song. I suspect the words of the
song will cause you to sing along—at least in
your thoughts:
The wise man built his house upon the rock.
The wise man built his house upon the rock.
The wise man built his house upon the rock,
And the rain came tumbling down.
Oh, the rain came down,
And the floods came up.
The rain came down,
Page 2 Page 6
Continuing on Course Practicing Individual
with a Pinoeering Spirit Heathcare Reform
And the floods came up.
The rain came down,
And the floods came up,
And the wise man's house stood firm.
The foolish man built his house upon
the sand.
The foolish man built his house upon
the sand.
The foolish man built his house upon
the sand,
And the rain came tumbling down.
Oh, the rain came down,
And the floods came up.
The rain came down,
And the floods came up.
The rain came down,
And the floods came up,
And the foolish man's house went "splat!"
As we reflect on the 75 years of history
of Adventist Risk Management, we must
appreciate what has gone before us. Just as
importantly, the question must be asked,
"What we are doing today to assure that the
resources of the church are protected for the
future?" Then, as a church, we can build on
Christ, the solid rock, and fulfill the mission
that we have been given. ■
Bob Kyte, president, Adventist Risk Management, Inc.
prepared this article.
Page 7
Sitting May Be Hazardous
To Your Health
FEATURE
Continuing on Course
With a Pioneering Spirit
I
n October 1935, William Benjamin presented a bold
initiative to church leaders at the Annual Council of the
General Conference. Benjamin, a lay member, wanted to
make a difference in how the Seventh-day Adventist Church
protected its assets from loss and destruction. His idea was
to establish an insurance company exclusively to protect
denominational assets. This idea seemed impossible in the
middle of the Great Depression, but the Lord impressed
upon church leaders to appropriate $25,000 in startup capital
and in 1936, The International Insurance Company (IIC) of
Takoma Park, Maryland became a reality. The company was
wholly owned by the Seventh-day Adventist Church long
before “captive insurance companies” were even thought of
as a corporate risk financing strategy. Benjamin was truly a
pioneer as he led out in the establishment of what
is known today as
Adventist Risk
Management
(ARM) and
its affiliated
companies.
Today, 75
years later, we can
clearly see the Lord’s leading
throughout ARM’s history as
that original capital investment
has grown into a world
class risk management and
insurance organization with
consolidated net assets in
excess of $48 million.
Throughout the past
75 years, the course
Benjamin envisioned
has remained
unchanged–– to
protect the resources
entrusted to us by the
Lord from unexpected
loss. Although the scope
of ARM’s operations has
certainly grown, the mission
of “providing solutions to
2 SOLUTIONS • June 2010 • Adventist Risk Management, Inc.
minimize risks” remains the same.
Certain waymarks in ARM’s history and the growth
of its operations remind us of how the value of managing
the denomination’s risk in a pro-active manner can create
opportunities that would otherwise be unrealized with
traditional insurance products alone. Although IIC grew and
was licensed throughout the United States, it was limited in
the scope of insurance it could provide for the church.
Gencon Insurance Service, Inc. (GISI) and Gencon
Agency. Inc. were formed in the late 1950’s and early-1960’s to
provide the church with direct access to commercial insurance
markets. This provided the means for the direct establishment
of relationships with large commercial insurance companies
and allowed the church to customize coverage to protect the
unique aspects of its global mission.
An example of this can be seen in the Directors & Officers
Liability insurance program that has been underwritten by the
CHUBB Insurance Company since the mid-1970’s. This global
insurance policy covers board members on every level from
the local church to the union, to members who serve on the
General Conference Executive Committee. This capability of
direct access to build long-term relationships with key business
partners has resulted in stronger programs that benefit the
church and its employees, volunteers and lay members.
In 1987, new avenues became available to form “captive”
insurance companies in more favorable domiciles such as
the State of Vermont. Many large corporations had begun to
realize the benefit and cost saving potential of owning their
own insurance company to manage the financial risk of their
operations. Gencon Insurance Company of Vermont (GICV)
was formed as the successor to IIC and its charter and licenses
were sold for $2 million. Today, GICV is the primary property/
casualty insurance company that insures the risks of the church
around the world.
Another milestone occurred in 1995 when ARM was
incorporated and became a General Conference institution
under the leadership of former president Robert Sweezey. At
this time efforts began to bring ARM to the forefront in
providing risk management education for denominational
leaders. The annual Risk Management Conference was
expanded beyond North America to include international
conferences specifically designed to address risk exposures of
ARM’s international clients. Another area of ARM's growth
 (GICI) in the country of Gibraltar as a wholly owned
subsidiary. Once again, the pioneering spirit was present,
as GICI became the first captive insurance company based
in Gibraltar by a United States company. Today, GICI
directly provides insurance to denominational organizations
throughout the European Union on a fully licensed basis.
Church leadership sought ARM’s counsel and assistance
to address the changing situation in South America and the
management of the Brazilian church-owned insurance agency,
Unibras Corretora de Seguros Ltda.
For the past ten years ARM staff have worked to
merge the operations of Unibras with those of the Gencon
companies to provide a full line of insurance services. This
year the office in Brazil was relocated from Sao Paulo with a
new leadership team to Brasilia and was renamed ARM-South
America. “This action represents the integration of the new
office staff as they interact with the work of the church here
close by the division office,” reflected Pastor Erton Kohler,
president South American Division.
Early Adventist Leaders
In October 2009, following the
unexpected death of ARM president
in the focus of risk management education was the addition Robert Sweezey, new
of the North American Presidents’ Symposium, designed to leadership was needed
specifically answer risk management issues that conference at the helm of the
executives face. organization.
Throughout its history, ARM has pioneered the use of
self-insurance programs to pool church resources effectively
to manage risk and lower insurance costs. Designing an
innovative and comprehensive health care plan, administered
for denominational entities throughout the North American
Division, has saved the church over $100 million in negotiated
discounts on health care costs during the past five years. ARM
assists in the prudent and actuarially sound management of
self-insurance trust funds in California and Florida. These
funds help denominational employers provide workers'
compensation benefits to injured employees. Going beyond
the use of traditional insurance allows the church to reduce its
operating costs in these critical areas.
From Europe to South America, ARM is building an
infrastructure to provide risk management and insurance
services to meet the global needs of the church.
GICV extended its global reach in 2002, with the
establishment of Gencon Insurance Company International

S O LU T I O N S • June 2010 • Adventist Risk Management, Inc. 3

FORESIGHT

Continuing on Course
With a Pioneering Spirit, cont'd.
Bob Kyte, ARM’s new president, came on board in January customers. At the same time it is critical for us to be a leader in
2010 to continue the legacy of making risk management a risk management education. This can be accomplished by using
ministry of active stewardship. internet-based technology to broaden the global reach of our
ARM’s importance within the church will be defined by its educational resources.”
responsiveness in providing quality insurance services to protect ARM has the unique privilege of serving the needs of
denominational assets and operations. This must be coupled the church. Its role is unlike that of a normal commercial
with quality risk management education to train church insurance company or broker. “When a well-run business
leaders on how to manage risks in order to prevent accidents applies its vast resources, expertise, and management talent to
and unsafe practices before they occur. “We must always be problems that it understands and in which it has a stake, it can
vigilant of our mission and the important role ARM provides have a greater impact on social good than any other institution
to the Seventh-day Adventist Church,” says Kyte. “ARM must or philanthropic organization.” (Porter & Kramer, Harvard
do more to expand its market share by providing insurance Business Review, December 2006, p. 92.)
products that will truly meet the needs of our The same pioneering
spirit that has guided
ARM since 1935 will be
the driving force behind
our mission to “provide
solutions that minimize
risks” in order for the
church to achieve its global
mission of sharing the
gospel message. ■

Arthur F. Blinci, ARM, EMBA, vice

president for Marketing &
Communication for Adventist Risk
Management, Inc. prepared this
article..

4 SOLUTIONS • June 2010 • Adventist Risk Management, Inc.

 ARM RESOURCES
Publisher
Adventist Risk Management, Inc.

Executive Publisher
Arthur F. Blinci, ARM, EMBA

Editor
Paula L. Webber

Legal Consultant

For more information on J. Victor Elliott, Esq.

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visit our website at: Graphic Designer

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Call: John J. Dougan

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or email:
customercare@ Solutions (ISSN 1528-7076) is
published monthly by Adventist

adventistrisk.org Risk Management, Inc.,

12501 Old Columbia Pike,
Silver Spring, MD 20904-6600;
phone: 301-680-6930;
fax: 301-680-6828; e-mail:
armcorpcomm@adventistrisk.org;
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Risky Business By John J. Dougan, ARM, ALCM

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Back issues are available while

BOB KYTE  William Benjamin supplies last. We also welcome
your comments and suggestions.
Address all correspondence and
inquiries to ARM’s Corporate
Communication department.

Texts credited to NIV are from the

Holy Bible, New International Version.
“Mr. Benjamin, Copyright © 1973, 1978, 1984,
International Bible Society. Used

the journey by permission of Zondervan Bible

Publishers.

continues here ©2010 Adventist Risk

Management, Inc.

at Adventist Risk
Management.”

S O LU T I O N S • June 2010 • Adventist Risk Management, Inc. 5

HEALTH ALERT!

Health Tip of the Month

of items that have

Practicing Individual a direct correlation

with each other.
This reality is not
Healthcare Reform new. As early as
the mid-19th

D
century, Adventist
uring a visit to a doctor, patients with health care coverage pioneers, along
are expected to pay the co-pay, the deductible and/or with some of their
any co-insurance. These payments may seem like a lot of contemporaries,
money. In reality, it is a very small percentage of the true cost of came to the
health care. What is the true cost of health care?
Adventist Risk Management administers the North American
sobering
conclusion that EAT LESS
Division Health Care Assistance Plan (NAD HCAP) with a all too often
total employee count of 10,132 and total members of 24,133. personal habits and lifestyle choices may
Collectively during the calendar year of 2009, NAD HCAP be the cause of certain diseases.
members Common diseases such as heart disease, stroke, diabetes, and
paid more even certain cancers are categorized as hypokinetic diseases. These
than $19M are diseases that occur due to a sedentary lifestyle. A lifestyle of
for health fitness and health does not happen by accident. It takes planning,
care benefits. commitment, determination, and hard work. Interestingly, those
Employer- same diseases show a close correlation to the foods we eat.
sponsored costs Sedentary lifestyles also contribute to low energy levels. When
were more than watching children on the playground, running, playing tag and
$108M. laughing, have you ever said to yourself that you wish you “had
Access their energy?” The best way to find more energy is to use it.
to medical Everyone wants to be healthy, but many people choose to
providers for act in unhealthy ways. “Individual Health Reform” is really very
NAD HCAP simple with just two key points to remember. You should walk
members is more and eat less.
through the
Blue Cross
WALK MORE Ellen White reminds us, “Our first duty toward God is that
of self-development . . . that we may be able to do the greatest
PPO Network. amount of good of which we are capable.” Counsels on Health,
However, as a self-funded plan these claims are funded by the p. 107. This may generally be associated with such things as
participating employing church organizations, not by Blue Cross. educational development, learning a skill such as carpentry, or
Health care reform and the continuing legislation are still becoming a teacher or preacher. It is also possible to see how this
very active “on the Hill,” and will continue to be in a state of statement includes our responsibility to make personal lifestyle
flux for the foreseeable future. The concept of “national” health choices to maintain a healthy body and clear mind. Take charge of
care reform is something that individuals cannot directly control. your personal health reform today, make the needed changes and
However, there are benefits to considering “individual” health care see the difference it makes. ■
reform and controlling personal choices that lead to good health.
A comparison inventory of a person's current health status Ellen Eldridge, CEBS, Healthcare Manager for Adventist Risk Management, Inc.
prepared this article.
and his/her personal lifestyle choices will often show a number

6 SOLUTIONS • June 2010 • Adventist Risk Management, Inc.


Sitting May Be Hazardous to Your Health
R
esearchers followed more than
17,000 men and women for
12 years to compare the hours
they spent sitting and mortality rates.
Here is what they discovered. Those
individuals who sat at least half the
time during the day (at work, at home,
or school) had a significantly increased
risk of dying from any cause. Those
TRY THIS RECIPE OUT!
Lentil Tacos
Ingredients:
2 cups cooked lentils
6 to 10 mushrooms, diced
1 small white or yellow onion, diced
2 cloves garlic
2 tablespoons chili powder
Salt, to taste
Garlic powder, to taste
who sat the most had a 54% increased
risk of dying during the 12 years com-
pared to people who sat the least.
This increased risk from long periods
of sitting was independent of age; whether
you smoked or not; drank alcohol or not;
if you were overweight or not; and even
if you exercised daily or not. The study
suggests that extended periods of sitting
is hazardous to your health and cannot
be completely compensated for with a
physical activity program.
The researchers concluded that
for best health and longevity, everyone
should maintain a normal body weight
(obesity combined with sitting a lot had
the highest mortality rate), get regular
physical activity (30+ minutes, 5+ days
a week), and limit the amount of time
spent sitting every day.
Americans sit while eating breakfast
and in their cars as they go to work.
They sit most of the day at work or
school. They sit in the car when they
return home, and in the evening while
watching TV, playing computer games,
or surfing the net.
Here are simple suggestions to
increase activity throughout the day:
Cumin, to taste
Black pepper, to taste
2 to 4 tablespoons water
8 corn tortillas
Cooking oil
2 cups shredded lettuce
Pico de gallo
1 - 14 ounce can vegetarian refried beans
2 avocados, mashed
1 tomato, diced
S O LU T I O N S • June 2010 • Adventist Risk Management, Inc.
B ro u g ht to yo u by :
w w w.adventistr isk .org/Wellness/
yy Get up frequently at work to walk
about when thinking, discussing
concepts with individuals, etc.
yy Stand during meetings, when
talking on the phone, or while
reading reports.
yy At home, work in the garden, go
for a walk, work around the house,
or play active games instead of
watching TV or spending time on
the computer.
yy Commute to work by riding your
bike, take public transportation
(walk to and from the bus stop or
train station), or walk or jog to
work occasionally.
To have the best health, be creative
and begin thinking of ways to sit less and
be more active during most of the day. See
what you can do to sit less each day. ■
Jina Kim, MPH, Wellness Coordinator for Adventist
Risk Management, Inc. prepared this article.
References:
Wellsource.com — Issue 51
Katzmarzyk PT, et al. Sitting time and mortality
from all causes. Medicine and Science in Sports
and Exercise. 2009;41(5):998—1005.
Directions:
Dice the mushrooms. Put mushrooms, garlic, and
onion in a skillet with some cooking oil. Cook over
medium heat until onions are translucent. Add the
lentils, seasonings, and water. Heat through.
Soften the corn tortillas in hot oil. About 2 to 4
seconds dipped in the hot oil is adequate and
keeps the tortillas from becoming too hot.
Use the lentil and mushroom mix as you would
taco meat. Add the refried beans, mashed avocado,
Pico de gallo, lettuce and tomato.
Source: Vegweb.com by kkbramblett1674, 1/13/2010
7
 DETR

SEPTEMBER 12 — 15, 2010

DETROIT, MICHIGAN

Christian Leadership Speaker For more information about this year's

Conference, our Heritage Tour and
"Trust Management" with to register, visit us today at
Dr. Leslie N. Pollard, vice president www.adventistrisk.org
Loma Linda University Adventist Health Center or call 301-680-6930