ARKANSAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS#

Transcription

1 ARKANSAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS# RM 101 INTRODUCTION TO RISK MANAGEMENT 10/29/2012 Nathan Barber 10/20/2009 1

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3 Be Prepared! Insured/Covered: Very Important# What To Do (Agent) Be Organized# Work The Plan (Pull The File) 10/31/2012 3

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5 Course Outline: Legal Basis Determining Risk Exposures# Types Of Insurance Agents/Sources Claims And Reporting Records 10/31/2012 5

6 Arkansas Code The Arkansas Commission For Public School Academic Facilities And Transportation Rules And Regulations 10/31/2012 6

7 (Cont.) ACT 625 of 2007: An Act To Authorize The Establishment Of Insurance Requirements For Public School Facilities; And For Other Purposes 10/31/2012 7

8 (Cont.) (a) There is created the Commission for Arkansas Public School Academic Facilities and Transportation, which shall consist of the following: (1) The Director of the Department of Finance and administration; (2) The Commissioner of Education; and (3) The President of the Arkansas Development Finance Authority. 10/31/2012 8

9 (Cont.) The commission shall: Establish rules in consultation with the Insurance Commissioner to establish property, boiler and machinery, and extended coverage insurance requirements and guidelines for all buildings, structures, facilities, and business personal property owned by a school district. (B) The rules promulgated by the commission under subdivision (d)(2)(a) of this section shall: 10/31/2012 9

10 (Cont.) (i) Attempt to provide the most cost-efficient manner for protecting each school district from loss of or damage to the school district's buildings, structures, facilities, and business personal property; (ii) Require property, boiler and machinery, and extended coverage insurers to have a minimum A.M. Best rating; (iii) Establish bidding requirements and procedures, if applicable to any insurance coverage; and (iv) (a) Be binding upon each school district for any placement or renewal of insurance coverage after June 1, /31/

11 (Cont.) (b) The state s financial participation under the Academic Facilities Partnership Program provided by or the Academic Facilities Catastrophic Program provided by may be withheld or reduced by the commission if a school district does not comply with the rules promulgated under subdivision (d)(2)(a) of this section. 10/31/

12 (Cont.) Study and promulgate rules concerning: (A) The propriety and feasibility of requiring that each school district maintain insurance coverage against loss due to: (i) Earth movement; or (ii) The operation of a school district s motor vehicles and buses; and# (B) The appropriate amount of insurance coverage under this subdivision (e)(4). 10/31/

13 (Cont.) Arkansas Commission for Public School Academic Facilities and Transportation: Rules/Regs. See Attached Division Rules and Regulations 10/31/

14 Arkansas Commission Rules Regulatory Authority Purpose Establish minimum recommended requirements Definitions Insurance Requirements 10/31/

15 Arkansas Law Identification Numbers = Title (Education) 17 = Chapter (Personnel) 11 = Subchapter (Insurance) 10/31/

16 Based On Federal Law, State Law, ADE Rules, Local Board Policy Arkansas Law Search Address: s/historicalact.aspx lt.asp 16

17 Legal Basis (Summary): LIABILITY INSURANCE: DEDUCTIONS FOR GROUP INSURANCE PREMIUM: PERSONNEL INSURANCE: WORKERS COMPENSATION: STUDENT PASSENGER EXCESS LIABILITY INSURANCE: PURPOSES OF LOAN: /31/

18 Legal Basis (Summary Cont.): SELF INSURANCE ACT: SCHOOL MOTOR VEHICLE SELF-INSURANCE ACT: PUBLIC ELEMENTARY AND SECONDAY SCHOOL INSURANCE FUND: SCHOOL VEHICLE INSURANCE RESERVE TRUST FUND: POLICY-MAKING BODY ONLY - REPORTS: MINIMUM VEHICLE INSURANCE: & /31/

19 Legal Basis: Liability Insurance Deductions for Group Insurance Programs (Repealed) Life And Disability Insurance Notice, Evaluation, And Approval Of Bid Proposals (Repealed) Life And Disability Insurance Employee Eligibility Allocation Of Cost Life And Disability Insurance Members Of Retirement Systems 10/31/

20 Legal Basis (Cont.): School Worker Defense Program Cooperation Group Disability Insurance For School Districts School Bus Drivers Health Insurance School Worker Defense Program Advisory Board 10/31/

21 Subchapter 14. Workers Compensation Coverage Provided Workers Compensation Commission Authority and Jurisdiction Financing Coverage Filing Reports of Injury or Death Notification of Award Transfer of Available Federal Funds (Reserved) School District Employees Effective Date Carriers 10/31/

22 Subchapter 15. Self-Insurance Act Title Establishment of Self-Insurance System Insurance Service Division State Insurance Department Powers and Duties Generally School Self-Insurance Advisory Committee (repealed 2/04) Information to be Furnished Finding of uninsurability Effect Premium Rate and Payment. 10/31/

23 Subchapter 15. Self-Insurance Act (Cont.) Appraisal and Payment of Loss Effect of Federal Assistance Repealed Permanent Insurance Reserve Fund Disposition of Funds Bond Obligations Investments Annual Reports. 10/31/

24 Subchapter 7. School Motor Vehicle Self- Insurance Act Title Purpose School Motor Vehicle Self-Insurance Program Participation Administration Reports Powers and Duties of Insurance Commissioner Information Furnished by Participants 10/31/

25 Subchapter 7. School Motor Vehicle Self- Insurance Act (Cont.) Inspection and Safety Program Policy Limits Payment of Claims Subrogation Premium Rate- Excess Insurance School Vehicle Insurance Reserve Trust Fund Investments Advisory Committee Members Duties. 10/31/

26 TYPES OF RISK: TORNADO damages existing building SCHOOL BUS ACCIDENT EMPLOYEE HURT WHILE BREAKING UP FIGHT CLAIM AGAINST SUPERVISOR FOR SEXUAL HARRISMENT STUDENT HURT DURING RECESS Tornado damages new building under construction 10/31/

27 RISK MANAGEMENT PROPERTY & CONTENTS FLEET EQUIPMENT BREAKDOWN ERRORS AND OMISSIONS GENERAL LIABILITY STUDENT ACCIDENT WORKERS COMPENSATION EMPLOYEE BENEFITS BUILDERS RISK 10/31/

28 GENERAL TERMS AGENT UNDERWRITER EXCESS POOLS AGREED AMOUNT ENDORSEMENT EXCLUSION REPLACEMENT COST ACTUAL CASH VALUE INSPECTIONS AND SURVEYS 10/31/

29 PROPERTY (AKA: BUILDING AND CONTENTS) SCHEDULE COVERAGE BLANKET COVERAGE FIRST DOLLAR PACKAGE POLICIES 10/31/

30 SCHOOL LEADERS LIABILITY (AKA: ERRORS AND OMISSIONS) PROVIDES COVERAGE FOR SCHOOL ENTITIES, SCHOOL BOARDS, STUDENT TEACHERS AND VOLUNTEERS AGAINST CLAIMS ARISING OUT OF THEIR ACTUAL OR ALLEGED WRONGFUL ACTS BROAD NAMED INSURED INCLUDES THE ENTITY, BOARD MEMBERS, EMPLOYEES, STUDENT TEACHERS AND VOLUNTEERS PROVIDES INSURED VS. INSURED COVERAGE FOR LAWSUITS OF EMPLOYEE VS. EMPLOYER DISCRIMINATION THIS DESCRIPTION IS LIMITED TO BRIEF HIGHLIGHTS, WILL VARY FROM POLICY TO POLICY, AND IS NOT INTENDED TO BE COMPREHENSIVE. 10/31/

31 Fleet Required: 25/50/25 (Split limit coverage) Excess Out of State Within Arkansas Immunity To The Extent Of Insured 10/31/

32 Student Athletic Whole School 10/31/

33 Agents/Sources# Arkansas School Board Association Arkansas Insurance Department Independent Agents 10/31/

34 Arkansas School Board Association Shannon Moore Director of Risk Management Phone: (866) School districts (property) 141 School districts (vehicles) 4.15 billion total insured value As of 7/1/07 will write vehicles only Builders risk available if write property 10/31/

35 Arkansas Insurance Department Risk Management Division Drew Carpenter Director Phone: (501) Fax: (501) school districts (property) 110 school districts, 4,800 vehicles (fleet) 3.25 billion 50 Million earthquake pool 1 million out of state vehicle 100 K Combined single limit 5K Medical per student (secondary coverage) 10/31/

36 Hoffman-Henry Insurance David White - Agent 305 East 6th Avenue Pine Bluff, AR (870) or (800) school districts 10/31/

37 First Arkansas Insurance Dwayne Shelton Vice President 1501 Mart Drive Little Rock, AR ck/ 10/31/

38 Walker Brothers Ins, Inc Isaacs Orchard Rd Springdale, AR PH: /31/

39 Claims/Reporting Prompt Thorough Reports Police Department Fire Department Employees Communication Pictures# Inventory# 10/31/