Shining sliver: CAMICO'S 25th Anniversary: an Opportunity to reflect.

• Position: Historicallandmark

a group of CalCPA CPAs was busy forming a start-up insurance company 25 years ago that would serve as the first insurance program dedicated to CPAs. And the timing was perfect.

CalCPA had received notice from its professional liability carrier that, as of 'July 1986. the company would no longer provide insurance for CPAs in the state, leaving about 1,700 firms bout coverage--and exposed to damages from lawsuits.

Insurance companies had been engaged in a rate-cutting war and found themselves with insufficient funds to cover their new claims liabilities. Most companies responded to the crisis by discontinuing their coverage of CPAs, while others imposed huge premium increases to cover the cash shortfalls.

GalCPA's executive committee responded by approving the formation ot a new insurance company dedicated to protecting CPAs. The prime movers were Lou Barbich, 1985-86 GoICPA president; Jim Kurtz, thenCalCPA executive director; John Dodsworth, then-director of CalCPA business operations; and Ken Ashcraft, then-chair of the CalCPA Insurance Committee.

The four leaders began developing business plans, filing documents and writing contracts. They also recruited seven others to the new company's board of directors: Robert Game, Victor McCarty, Roland Mangiantini, Bill Scheuber, Arnold Bernstein, Zeke Sicotte and William Moore.

Then the Gal Accountants Mutual Insurance Company (CAMIGO) was incorporated March 4, 1986 -a prerequisite for a Certificate of Authority from the California Department of Insurance, which would decide whether CAMIGO could open for business.

'We Were There'

The 11 board members, who had not vet met formally as a group, fanned out across the state to explain to CPAs how the CAMIGO program represented the difference between GPAs staying in business or going out of it. "If there was a place we could get (our accountants together, we were there," said Bernstein. They were also convincing: About 1,400 firms signed on with the new venture, paying their annual premiums in advance, as well as certificates of contributions that helped finance company operations.

By June 1986, within weeks of the July 1 expiration of their professional liability coverage, the board had the $5 million in cash required by the Department, of Insurance. The Department, however, would only count the amount of processed policies, which came to $4 million leaving the new venture short by $1 million.

CalCPA loaned the difference before the Department of...