SDAO/SDIS 101. An Overview of Coverage and Services. Chris Hill - Underwriter

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1 SDAO/SDIS 101 An Overview of Coverage and Services Chris Hill - Underwriter

2 Mission The mission of the Special Districts Association of Oregon is to assist special service districts in providing cost-effective and efficient public services to the people of Oregon.

3 SDAO History Formed in 1979 Disjointed legislative representation Cities didn t/don t like special districts Fighting for survival Cooperative Legislative Program Legislative Committee Issues that impact all types of districts

4 SDIS History 1985 Insurance Crises Legislative authority for public entities to create selfinsured programs for liability and property coverage SDIS Created 1988 SAIF cancels many small districts and no coverage for volunteers SDIS created a self-insured workers compensation program

5 SDIS Today 920 participating districts in the Property & Casualty Program $38 million in surplus/retained earnings 560 participating districts in the Workers Comp Program Return $1.75 million to members in the Longevity Credit and Rate Lock Guarantee Program over the next 2 years. Much More returned through various grants and services

6 What s a Special District? Nearly any type of local government that s not a city, county, or school district ORS Chapter Types Each with its own ORS Chapter Over 1,000 statewide Fastest growing type of government nationwide

7 Member Type Count Rural Fire Protection District 249 Domestic Water 129 Irrigation 76 Road 70 Sanitary 50 Park & Recreation 48 Soil & Water Conservation 35 Cemetery 32 Hospital / Health 26 Drainage 24 Port 23 Library 22 Water Control 19 Vector 17 Transit 11 Public Utility 9 Communications 9 County Service 5 Council of Government 1

8 What is Pooling? While pools are defined as something other than insurance (in most states), the fundamental purpose of risk pooling is not unlike conventional insurance to protect program participants against unexpected losses. Like conventional insurance, pools, typically, transfer risk from one entity to another central risk sharing authority the pool.

9 Why Pool Our Risk? Control, Control, Control Surplus Belongs to Members Able To Provide Services Not Found in the Insured Market Rate Stability

10 Self-Insured Pool Structure* 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 0 $100,000,000 1,000,000 Per Occurrence Reinsurer's Responsibility Pool Responsibility *Hypothetical Illustration for one particular line of coverage

11 SDIS Services Liability Coverage Property Coverage Crime Insurance Workers Compensation Coverage Employee Benefits Health, Dental, Life, Disability Section 125 Plan Pre-loss legal assistance Safety grants Criminal background checks Drug and alcohol testing Education and Training Loss Control Consultations Management/Board Consulting

12 Every year at Christmas, my parents ask me one question:

13 So, what do you do for a living, again?

14 Underwriting in a Nutshell Determine Rates Determine Coverage Stare at Spreadsheets Provide Vague Answers to Hypothetical Questions

15 Agents All Districts Must Work With Independent Insurance Agent Agents Must Sign Agent Agreement Code of Conduct Agents Paid Commission For Their Services You Control Agent Relationship Agents Provide You With Certificates of Coverage

16 How Do I Find What Coverages I Have? Things that should be buried somewhere in your files: 1. Coverage Documents 2. Declaration Pages 3. Schedules (for property, auto) OR

17 How Do I Find What Coverages I Have? Call Your Agent or SDAO Underwriting underwriting@sdao.com

18 Liability Coverage Claims Against You By a Third Party

19 Liability Coverage $1 million self-insured retention (SIR) Reinsurance for large losses Genesis Coverage A Oregon Torts Coverage B Federal Acts Coverage C Other Jurisdictions Legal Defense

20 Liability Coverage Highlights Director s & Officers Coverage Included Coverage For Unmanned Aerial Vehicles $500K Base Coverage $4.5 mil - $9.5 mil excess coverage available

21 Liability Coverage Who is covered? (summarized) Participant = Insured Participant = Employees, Officers, Directors, Volunteers, or any person or entity acting at your direction and control For liability arising out of course and scope of their duties Additional Participant ( Additional Insured ) anyone required to be so according to an insured contract Not for their own sole negligence

22 Liability Coverage Highlights Limited Amounts of Coverage Available For:* OSHA Defense Ethics Complain Defense EEOC/BOLI Defense Costs Limited Cyber Coverage Limited Pollution Coverage $100,000 general pollution $50,000 Applicators Pollution Coverage *See Declarations for specific amounts of coverage

23 Liability Coverage Highlights (Cont d) Data Breach Liability (cyber liability) $1,000,000 per occurrence limit $100,000 for reporting/credit monitoring expenses Criminal Defense Cost Coverage - $100,000

24 SWCD s And SDIS Liability Coverage Some Auto Coverage Only Some Excess Only Some Dollar-One Fully Insured

25 Property Coverage Coverage For Damage Done To Your Property Buildings and/or their contents Outdoor Property Equipment

26 Property Coverage PROPERTY MUST BE SCHEDULED! Review with your agent

27 Property Coverage $500,000 per occurrence self-insured retention (SIR) Reinsurance Lloyds (Primary) Multiple carriers for excess earthquake and flood. All Risk Policy for scheduled property Blanket Coverage CNA for equipment breakdown coverage

28 Auto Coverage Auto Liability for Scheduled Autos up to GL Limits Auto Physical Damage Coverage (Comp/Collision) Vehicles less than 7 years old replaced with new vehicle in total loss scenario

29 Best Practices Up to 10% Credit on Liability, Auto Liability and Property Contributions Online Training 2% Affiliate Organization Membership 2% SDAO-SDIS Training 2% Best Practices Checklist 2% Oregon Ethics Law Policy 2%

30 Crime Insurance Underwritten by Travelers Satisfies the State of Oregon bonding requirement. Limits from $5,000 to $1 million Fully insured program

31 Workers Compensation Medical and time-loss for on-the-job injuries Benefits defined in statute (ORS Chapter 656) Public entities can cover volunteers Pass board resolution, maintain roster and report assumed wage Volunteers become Oregon Subject Workers Provides Exclusive Remedy

32 Workers Compensation Safety Net Coverages First Fill Prescription - $1,000 per claim Family Support Coverage Surgery $300/day or $3,000 per claim Catastrophic Injury $300/day or $10,000 per claim Criminal Defense Cost - $50,000/claim OSHA and HIPAA Defense - $5,000/claim each

33 Workers Compensation $1,000,000 per occurrence SIR Excess Insurance Midwest Employers $8 million annual contributions Regulated self-insured group under Oregon law Rating mirrors insurance industry

34 Employee Benefits Self-insured program as of June 2014 Over 200 participating districts Health and Vision Regence (TPA) Dental Moda (TPA) Life, Disability - Standard SDAO does the monthly billings and tracks enrollments July to July Renewals Staff Shelly Barker The Partners Group (TPG) Chet Weichman (Century Insurance)

35 Pre-Loss Legal Services Free legal advice on any issue which can lead to a liability claim $10,000 deductible for employment claims if service isn t used Staff Ron Downs Spencer Rockwell Luanne Richey Tonya Grass

36 Education and Training Annual Conference Regional Trainings Other specialized trainings Coordination with other associations Newsletter Broadcast s Marketing brochures Advertisements Website Content Online Training - SafePeronnel Staff Luanne Richey Lisa Stellingwerf Jennifer Quisenberry

37 Loss Control Consulting Required by state law for a workers compensation selfinsured program On-site inspections and training Resource library Telephone consultations Broadcast content Safety Grant Program Criminal Background Checks and Drug Testing Best Practices Staff: Scott Neufeld, Dan Davenport, Troy DeYoung, Greg Jackson, Bob Ringering, Jason Jantzi, Brian Wolf

38 Management Consulting Services 8 hours of free management consulting service provided free of charge: Includes, but not limited to: Strategic planning Management recruitment Board member relations/training Conflict resolution Mergers and consolidations Staff George Dunkel Luanne Richey Outside Consultants

39 Technical Assistance and Member Relations Hotline for anything that members need Management and Policy Resource Guide Sometimes crosses over into Pre-loss Legal Services Coordinates with Consulting Services Website reference library Staff Luanne Richey Member Relations and Customer Service Sandy Galaway Lisa Van Jennifer Quisenberry

40 Contact Info Phone: Underwriting Loss Control Member Service and Pre-Loss:

41 Questions?