Saddleback Valley Unified School District AR 3530

Transcription

1 BUSINESS AND NONINSTRUCTIONAL OPERATIONS RISK MANAGEMENT/INSURANCE Insurance Management The management and control of the District s Risk Management/Health & Welfare Insurance Program and all insurance authorized by the Governing Board shall be a function of the Personnel and Business Divisions through such staff allocation of responsibilities as the Assistant Superintendents of Personnel and Business Services shall designate. The Assistant Superintendents for Personnel and Business Services or designee(s) shall be the Risk Manager(s) for the District. The Risk Manager(s) shall have authority to establish rules and procedures consistent with Board policy to ensure the safety and well being of pupils, employees and the public while on or in District property that will aid in keeping the District s liability to a minimum and the premiums for insurance as low as possible and consistent with the insurance requirements and the exposures insured. Placement of Insurance The Assistant Superintendents for Personnel and Business Services through the Superintendent may recommend to the Board and the Board shall appoint brokers-ofrecord to assist and advise the District in the placement of fire and casualty insurance and a health and welfare benefit program. Such appointment shall be effective until withdrawn or superseded by action of the Board. The District will cooperate with employee organizations in developing specifications for employee insurance benefits. Accordingly, an employee organization may submit to the Business Office its proposals for medical, hospitalization, dental, life, prescriptions, vision, income protection, and disability insurance. No more than one proposal for any type of insurance may be submitted by each organization. The Risk Manager(s) shall report the need for insurance, together with all relevant information including statements of costs obtained by the brokers-of-record from insurance companies, and his recommendations for the placing of such insurance to the Superintendent, who shall present his recommendations to the Governing Board. Upon authorization by the Governing Board, the Risk Manager in cooperation with the brokers-of-record shall place such insurance in accordance with said authorization and the relevant provisions of these rules and regulations. In an emergency, the Risk Manager shall place insurance and the Superintendent shall immediately report such placement for ratification by the Governing Board.

2 Insurance carried by the Board shall be obtained through negotiation, and when deemed necessary and to the best interests of the District, by competitive bids and shall be awarded to those insurance companies who agree to furnish the coverage required at the lowest and best price consistent with good service and security. Kinds of Insurance Authorized The following insurance shall be carried in accordance with applicable rules and regulations: 1. Fire and extended coverage and vandalism and malicious mischief insurance covering all buildings and contents owned or occupied by the District in such amounts as are authorized by the Board. 2. Comprehensive liability insurance covering members of the Board, the District s officers and employees while acting in the discharge of their duties within the scope of their employment and/or under the direction of the Board. Such insurance, if permitted under the laws governing the operation of the District, shall extend maximum coverage in such amounts as are authorized by the Board. 3. Fidelity bonds protecting the members of the Board against loss occasioned by fraud or dishonesty of officers and employees of the District. 4. A suitable bond indemnifying the District against loss shall be purchased for employees responsible for handling District funds and may be purchased for employees responsible for handling District property. 5. Workers compensation insurance covering all employees of the District in accordance with the laws of the State governing workers compensation and sufficient to provide the benefits as prescribed by such laws. 6. Casualty, fire and theft insurance covering all vehicles owned or operated by the Board to the limits as specified by Board action. Burglary and robbery insurance covering such property as specified by Board action. 7. Boiler and pressure vessel property damage insurance covering steel boilers and such other pressure vessels and property to the limits deemed sufficient by the Risk Manager(s) and as authorized by the Board. 8. All risk insurance covering any property specified by the Risk Manager(s) and authorized by the Board. 9. Sprinkler leakage insurance on property where designated by the Risk Manager(s) and authorized by the Governing Board. 10. Programs of insurance in the area of employee fringe benefits, such as hospital and medical insurance, dental insurance, life insurance, vision insurance, but only in the kinds and to the limits authorized by the Board. 11. Such other insurance coverage as the Board may authorize. Page 2 of 5

3 Insurable Value Buildings and Contents The insurable value of a building shall be defined as the replacement cost of such building less the non-burnable items. The valuation will include a stipulated value clause. The term contents as used in connection with insurance, shall be defined to include all personal property not specifically excluded by the terms of the standard form for fire insurance policies. The contents shall be insured on the basis of replacement cost with a stipulated value. Settlement of Losses When any property covered by insurance is lost, damaged, or destroyed, a notice concerning the loss shall be sent immediately to all affected carriers or their representatives. The Risk Manager(s) shall act as adjuster(s) for the Board in the settlement of losses, and shall sign the proof of loss as authorized. The Superintendent shall recommend to the Board, as soon as practicable, a basis for settlement and, upon adoption by the Board, the agreed amounts shall be collected from the insurance company(ies) and deposited to the credit of the District in accordance with the laws governing such collection. Liability Claims Procedure A written notice of rejection shall be sent to the claimant in all cases where a written claim has been filed in accordance with the laws of the state governing the filing of such claims. The Board shall deny such claims and direct that they be referred to the District s liability insurance carrier for handling. Broker-of-Record Qualification of Services Risk Management Program The broker-of-record shall meet the following qualifications: 1. Licensed general insurance agent or broker. 2. Principally engaged in the business of general insurance for a period of at least five years. 3. Maintains an office within or near the general area of the District with a staff of at least one full-time secretarial/clerical person. 4. Reputation for fair dealings and high ethical standards as evidenced by submittal of business, industry, and personal references. 5. Errors and omissions coverage not less than $1 million. The broker-of-record shall perform the following services: 1. Survey and analyze potential insurable exposures by conducting initial and follow-up physical inspection of properties and review various legal Page 3 of 5

4 documents, such as lease contracts, necessary to determine exposure to loss. 2. Develop insurance program and specifications using results of survey and other risk management identification and measurements. 3. Submit program and specifications to a cross section of the insurance company market. 4. Analyze proposals and carriers on the basis of compliance of program, rates, premiums, financial integrity and stability and reputation for payment of losses. 5. Present to Risk Manager a recapitulation of all proposals and selection of carriers. 6. Place insurance with selected carriers as approved by Risk Manager. 7. Continuous review of existing and new insurable hazards and physical inspection of properties to evaluate program and verify property values as well as substantiate fire rating and casualty insurance classification. 8. Assist with periodic safety inspections and safety engineering programs. 9. Prepare and update a statement of values in coordination with the District s inventory valuation and building development. 10. In the event of loss, arrange for insurance adjuster and personally inspect large losses and assist in preparation of documents and expedite payment of claim. Broker-of-Record Qualification of Services Health & Welfare Program 1. Licensed life and disability agent or broker. 2. Principally engaged in the business of providing group health and welfare insurance for a period of at least five years. 3. Maintains an office within or near the general area of the District with a staff of at least one full-time secretarial/clerical person. 4. Reputation for fair dealings and high ethical standards as evidenced by submittal of business, industry and personal references. The broker-of-record shall perform the following services: 1. Survey and analyze potential insurable exposures and review various legal documents necessary to determine exposure to loss. 2. Develop insurance program and specifications using results of survey and other management identification and measurements. Page 4 of 5

5 3. Submit program and specifications to a cross section of the insurance company market. 4. Analyze proposals and carriers on the basis of compliance of program, rates, premiums, financial integrity and stability and reputation for payment of claims. 5. Present to Risk Manager a recapitulation of all proposals and selection of carriers. 6. Place insurance with selected carriers as approved by Risk Manager. 7. Continuous review of existing and new available coverages including federal regulations pertaining to health maintenance organizations. 8. Hold necessary employee meetings to explain coverages of the Health & Welfare Program. 9. Assists in the handling of claims when necessary. Method of Selection The Board recognizes that the prime consideration in the selection of a broker is the quality and extent of his service and advice and his ability to negotiate and secure the broadest forms of coverage at the lowest prevailing rates. Initially, the Board may secure competitive bids from all agents, brokers or direct writing companies who meet the broker-of-record qualifications and who are capable and willing to provide the services as described in the Board policies and administrative regulations. Once the brokers-of-record have been established, it is the Board s intent to continue with the brokers as long as they continue to render the service that the District expects. However, the Board may wish to review any insurance proposals that will materially improve coverage at no increase in premium or retain existing coverage at a substantial reduction in existing premium. Any such proposal may be subject to competitive bidding. At any time the Board may call for a new selection process for any broker or brokerof-record that it wishes to employ. Adopted: 02/76 (Previous Number AR 3532) Revised/Readoption: 09/92, 06/04 Page 5 of 5