NBFAA Member Update for Thursday, March 24, 2005

A new addition to the 2005 Conference, the inaugural NBFAA/CSA Symposium will provide Chartered State Associations a platform to engage in discussion with NBFAA leadership and fellow CSA state leaders about current industry issues and affairs, membership recruitment and retention, best practices, and government affairs.

Register for the NBFAA Spring Conference and CSA Symposium today to join your fellow NBFAA members in Las Vegas for these incredible networking opportunities.

Even before the first player tees off, the 2nd Annual AIREF/NBFAA Golf Tournament in Las Vegas is already a success. We have received sponsorships from such companies as Honeywell, SIA, ADI, GE Security, NAPCO and many others. Because of this support, it should go without saying that it will be a great day!

But space is now extremely limited, so if you plan to participate, we need your registration now to ensure your spot on the course at Troon's Revere Golf Club.

Take advantage of this opportunity to help raise funds for AIREF's industry research. Register now and join your friends and colleagues on the course for a day of "Golf Without Guilt." And remember, your registration fee entitles you to attend the evening event at Treasure Island's Tangerine Nightclub and Lounge, where we will present the Morris F. Weinstock and Sara Jackson Awards.

Visit www.alarm.org or call Michelle Hariston at 301.585.1855 ext. 117 for more information or to register.

The following is a listing of upcoming NTS courses scheduled around the country. For more information on a course, contact NTS at 866-636-1687 or by e-mail at nts@alarm.org.

Complete course schedules for 2005 are also available at www.alarm.org/nts/. These schedules are updated regularly, so be sure to check back often.

Be sure to note that NTS training is also available online! Alarm Technician (Level 1) and Fire Alarm Installation Methods (FAIM) are now available on-line - with Advanced Burglar Alarm Technician (ABAT) coming very soon!

Since its introduction in late 2003, Security America Risk Retention Group (SARRG) has helped NBFAA member companies save thousands of dollars on their general liability/errors and omissions (E&O) insurance policies. And now, the program has expanded its offerings to provide up to $5 million in coverage!

The SARRG Board of Directors recently accepted a proposal from Employers Reinsurance Corporation (ERC), an AM Best 'A' rated company to extend coverage availability to a maximum of $5 million per occurrence. This opens the door to many NBFAA members who previously couldn't take advantage of the insurance because they needed coverage in excess of $1 million.

And remember, SARRG is also working with local brokers, allowing members to maintain established relationships with their current brokers and take advantage of the savings that SARRG offers.

Security America Risk Retention Group is just one of the many benefits available to NBFAA members. For more information on the program, visit www.securityamericarrg.com or call (866) 315-3838.

We want to hear from you!
If you have a story you'd like to share with other NBFAA members, contact us at 301-585-1855 or by e-mail at communications@alarm.org.

Industry News

Connecticut Legislature Considers Carbon Monoxide Poisoning Prevention Bill

Connecticut is joining a growing list of states and municipalities around the country that are considering a simple and inexpensive way to protect people from becoming ill or dying from a threat they can't see, smell or taste - carbon monoxide (CO). That protection comes from requiring the installation of carbon monoxide alarms in residences, much as smoke detectors now are generally required.

The dangers of carbon monoxide poisoning are real; according to the Centers for Disease Control (CDC) report reveals more than 15,000 people go to hospital emergency rooms each year because of suspected CO poisoning. The Journal of the American Medical Association reports that approximately 2,000 people die each year from CO poisoning.

According to the New Haven Register, 50 people are killed by CO poisoning and at least 500 are hospitalized in Connecticut each year.

The proposed Connecticut bill requires the installation of carbon monoxide alarms in one- and two-family homes constructed after October 1, 2005.

Legal News

Central Station Contracts
By Ken Kirschenbaum, Esq.

Not all central stations use the same contracts, and in fact some may not use any contracts. You should read and understand what your central station s asking you to agree with.

First of all, let me comment on one of the more common misconceptions, and that is the monitoring contract itself. A smart central station doing third party wholesale monitoring would be wise to use three party contracts, signed by the dealer, subscriber and the central station. This monitoring contract is for the benefit of the central station, not the dealer. Dealers who use the central station's monitoring contract as the only monitoring contract are making a huge mistake, one that will cost them significantly if there is a loss and when they go to sell their subscriber accounts. Dealers need their own monitoring contract in addition to whatever monitoring contract the central station requires.

The reason for this is that the central station's contract is designed to protect the central station, rarely the dealer, usually have no monetary provision, may not have a term provision, cannot be used by the dealer as a salable and transferable contract, and I could go on and on. Dealers, get your own monitoring contract online at www.alarmcontracts.com.

You may also be asked to sign what I call an Installer Contract. This is a contract between you and the central station. It might provide for what rates you will be paying, the minimum number of accounts you need to maintain, the minimum length of time you must leave some or all of your accounts at the central station, and it may also contain some provisions that you need to understand, such as an indemnity provision and a first right of refusal if you want to sell your accounts. While I am not necessarily adverse to such provisions I do think that a dealer should understand what it is agreeing to, and the consequences. This should be an important consideration when selecting a central station.

The indemnity provision is exactly what it sounds like, similar to the one hopefully in your subscriber contracts; it obliges you to defend actions against the central station and pay damages that the central station incurs. It can be broadly worded, or narrowly tailored; it can be full or partial; and it can cover counsel fees or not. If you do agree to indemnify the central station make sure that your errors and omissions insurance company will issue you an endorsement for contractual indemnity covering that contract relationship. Using the same carrier as the central station may help.

The right of first refusal is something you may give little thought to until you try and sell your subscribers and find out that you can't, at least until you give the central station the right to either match the offer that you have, or, believe it or not, exercise its option to purchase at some prearranged price or formula, which could be and probably is much lower than the offer you have.

So as you can see, the contracts you will be asked to sign are another important consider when selecting the central station.

Kenneth Kirschenbaum may be reached at Ken@KirschenbaumEsq.com.

For Member Update Sponsorship information contact
NBFAA Director of Business Development Tonja Jenkins.

NBFAA Spring Conference: CSA Symposium

There's Still Time to Golf Without Guilt!

Upcoming NTS Classroom Courses - Mark Your Calendar

Vector Security Names Joe English Vice President of National Accounts Division

Member Benefit Spotlight: Security America Risk Retention Group

Connecticut Legislature Considers Carbon Monoxide Poisoning Prevention Bill