Letters to The Editor
MDOT Insurance Purchase Statement Called Misleading

To the Editor:

In reference to the statement that Leon Hank made in his letter published last week in The St. Ignace News stating the Mackinac Bridge Authority (MBA) was paying $10,000 too much for their auto insurance, it is false and misleading.

The policy provided by Cheeseman Insurance Agency and Michigan Insurance Company was awarded through a published bidding process for coverages specified by the MBA. This policy is much more extensive than the minimum statutory coverages promised by MDOT. I use the word “promise” rather than “insurance” because the premium MDOT is charging the MBA merely states that they “may pay” claims as presented. The chairman of the MBA said he was uncomfortable with “may pay” and requested the wording changed to “shall pay” and Mr. Hank refused.

MDOT has exposed the taxpayers of the State of Michigan for unlimited medical expenses for an infinite number of claims due to accidental Bodily Injury to their employees and certain other parties in an automobile accident. The difference in cost to the MBA between the two proposals is approximately $1,896 per year.

The MBA Insurance Committee and the MBA did not think it was a good decision to change their coverage from an insurance policy to a promise and voted to continue their insurance. This is arguably an irresponsible attempt by MDOT to reduce costs.

MDOT then told the MBA they did not have the authority to purchase insurance and ordered the MBA not to do so. MDOT further told the MBA that if the Board approved payment of this policy, the board would be held personally liable for the amount of the premiums.

Mr. Hank should realize that when presenting an insurance proposal the primary obligation to the client is to point out specific coverages that are not included and not just premium savings. There was no attempt by Mr. Hank to inform the MBA that his proposal was inferior to their present coverage. His inference that the MBA was remiss in their insurance purchasing policy is not correct.

Gregory R. Cheeseman

Cheeseman Insurance Agency

St. Ignace

Increasing Franchise Fees for Ferry Boat Lines a Mistake

To the Editor:

The article in the September 3 issue of the Mackinac Island Town Crier regarding the ferry boat lines increasing their fares owing to the hurricane in the Gulf just contributes to my belief that the City of Mackinac Island made a definate mistake by increasing the ferry boat lines’ franchise fees. Until our federal government can find a way to stop the oil refineries with their runaway profits, we all must "tighten our belts." It doesn't take a genius to understand that the ferry boat lines are in business to make a profit, so any increase in their operating costs will be passed on to their customers, which includes the residents of Mackinac Island as well as the tourists. So it would seem to me that giving them more reason to increase their rates will just cause a further decline in our tourism, which is already suffering. If one takes the time to think about the cost to an average family of four to come to visit our island, that cost can be substantial.

Kent Weber

Mackinac Island