August 19, 2016 AUTOS AND BUSES

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1 August 19, 2016 TO: FROM: SUBJECT: District Superintendents Chief Business Officials SISC II Member Districts Robert J. Kretzmer Director, Property & Liability 2016/2017 Coverage Summary This correspondence verifies that the coverage for your school district is in force. Please consult the applicable coverage document to fully understand the nature and limitations of the coverage afforded. Coverage documents and generic certificates of insurance can be obtained from the SISC website at AUTOS AND BUSES Under the Memorandum of Coverage No. SAP , effective to , SISC II provides coverage for owned autos, hired autos, borrowed autos, and non-owned autos. Subject to the exclusions, definitions, conditions, and other limitations, automobile coverage includes: 1. Auto liability 2. Collision loss 3. Comprehensive 4. Garage liability 5. Garage keepers legal liability SISC II has a $1,750,000 self-insured retention (S.I.R.) over the district s $1,000 deductible feature per accident. Excess coverage is provided by private carrier, to the level of $50,000, in excess of $1,750,000 for a total of $51,500,000 limit per accident. BOILER AND MACHINERY Underwritten by Hartford Steam Boiler Insurance Company for the period of to , subject to the policy s exclusions, definitions, conditions and other limitations. Coverage is provided on a comprehensive basis with a limit of $20,000,000, subject to the $5,000 deductible feature, and covers boilers and various equipment and machinery on a replacement cost basis. A $10,000 deductible applies to combined hardware, software, and data restoration. COMPREHENSIVE CRIME Underwritten by National Union Fire Insurance Company (subject to the policy s exclusions, definitions, conditions and other limitations) coverage is effective to as follows: Inside crime... $250,000 limit... $1,000 deductible Outside crime... $250,000 limit... $1,000 deductible Depositor s forger... $250,000 limit... $1,000 deductible Employee dishonest... $250,000 limit... $1,000 deductible Credit card forgery... $250,000 limit... $1,000 deductible

2 Page 2 CONCUSSION INSURANCE Coverage is provided to our member districts whose enrollment includes interscholastic sports for grades nine through twelve. This program has effective dates of through and is being underwritten by Nationwide Life Insurance Company. Coverage is triggered with the diagnosis of a concussion injury resulting from participation in a game or practice involving an interscholastic sport. The benefit is for an overall maximum medical expense up to $25,000. All claims originate with SISC II staff and will be coordinated and processed through the SISC II Student Insurance Program. Questions regarding the coverage afforded and the processing of claims should be directed to Duncan Low, Coordinator Student Insurance, at or Elsa Lara, Claims Examiner III, at DATA COMPROMISE COVERAGE SISC II has partnered with the Hartford Steam Boiler Insurance Company to provide data compromise coverage to our member districts. Coverage is effective July 1, 2016 through July 1, Coverage is afforded under Section I of the policy for Response Expenses. The policy limit is $100,000 inclusive of a schedule of benefits for Forensic Information Technology, Legal Review, and Public Relations Services. A $10,000 deductible applies to Section I coverage; however, SISC II will absorb $7,500 of the deductible amount keeping the district deductible at the standard $2,500 (or higher selected deductible.) Section II (Defense and Liability) of the policy applies to claims or suits brought by an affected individual or a government agency representing an affected individual. Before there can be a loss under Defense and Liability, there must first be a loss under Section I (Response Expenses.) The coverage limit under Section II is $100,000. A separate $10,000 deductible applies to the Section II coverage; however, SISC II will only collect the standard $1,000 liability deductible from a member district in the event of a claim or suit. Questions regarding this coverage can be directed to Robert Kretzmer, Director, at LIABILITY COVERAGE The Liability Memorandum of Coverage (MOC) affords coverage for the following: Coverage A - Bodily Injury; Coverage B - Property Damage; Coverage C - Errors and Omissions; Coverage D - Personal Injury; Coverage E - Employment Practices; Coverage F Employee Benefit Wrongful Acts; and Coverage G - Liability that the Member is required to insure against under Education Code sections and or is authorized to insure against under Government Code sections 989 and 990. The MOC does not cover employees who willfully or intentionally participate in misconduct. Although not required to do so, SISC may exercise its discretion to extend a defense to alleged offenders if its investigation determines the allegations are likely without merit; however, it may not indemnify them if they are held liable for willful or intentional misconduct, as to do so is barred by law. (See the willful or intentional acts Exclusion CC on page 7.) Similarly, SISC will defend but not indemnify districts for wrongful termination, retaliation, and other alleged violations of law that result from intentional administrative actions. (Again, see the willful or intentional acts Exclusion CC on page 7.) Deductible - A $1,000 deductible is applicable per occurrence on each claim/loss. Under the Memorandum of Coverage No. SLP effective to , SISC II provides $1,750, limits over the district's deductible. Excess coverage is provided by private carrier, to the level of $50,000, in excess of $1,750, limit per occurrence for a total of $51,500,

3 Page 3 Coverage generally is afforded, subject to the exclusions, definitions, limitations and conditions for the following: 1. Named covered party (District) 2. Officers and members of governing board 3. Employees (including students serving in required internships) 4. Volunteers 5. Student body organizations and auxiliary organizations Coverage generally is afforded, subject to the exclusions, definitions, limitations and conditions for the following: 1. Premises Liability 2. Operations Liability 3. Professional Liability 4. Products Liability 5. Contractual Liability 6. Errors & Omissions 7. Employment Practices Liability Coverage is written on an occurrence basis for bodily injury, property damage, errors and omissions. Coverage is afforded with respect to personal injury and employment practices subject to an offense described in the definition of personal injury and employment practices. The Student Accident Coverage provided by SISC is included in Section VIII of the Liability Memorandum of Coverage. It is of course subject to the policy s exclusions, definitions, conditions and other limitations and provides benefits for student injury during: Regular classes Class trips Summer school and recreation School sponsored activities on or off the school premises School sponsored transportation o Student accident coverage is secondary to any other applicable health insurance available to the student. o Medical payment limit is $2,500. o No deductible applicable. o o Coverage is included for athletic injury, except tackle football. The benefit period is 52 weeks and benefits are limited to usual and reasonable expenses unless specifically stated otherwise. PROPERTY COVERAGE Under our Memorandum of Coverage SPP effective to , SISC II provides coverage for the district s interest in covered property. The coverage applies to all property of the insured including both real and personal property and including personal property of others for which the insured is liable (reporting requirements and conditions apply). Excess coverage is provided by a private carrier above $250,000, with a combined total of $150,000,000. Perils Covered - All risk of direct physical loss or damage, subject to the exclusions, definitions, conditions and other limitations set forth in the policy. District deductible is $2,500 (The deductible is $3,750 if the building is over $655,000 in value and is not alarmed. Please note some qualifying members have elected to take higher deductible amounts. Members should

4 Page 4 refer to their own individual MOC's. Extensions of Coverage/Sub limits of Liability $ 5,000 Trees, plants or shrubs $ 10,000 Property of others $ 10,000 Debris Removal $ 50,000 Real or personal property at any unscheduled location/exhibition $ 10,000 Property in transit $ 20,000 Pollution and Contamination $ 50,000 Demolition and Increased Cost of Construction $ 50,000 Valuable papers and records including Accounts Receivables Property Not Covered Includes the following, see Memorandum for complete listing: 1. Currency, money, notes, securities, deeds, evidences of debt, letters of credit, tickets, telephone cards, and other negotiable instruments; 2. Domesticated and undomesticated animals, including livestock; 3. Powered and unpowered aircraft or watercraft, including lighter than air and submersible vessels; 4. Land, land values, soil, water (including ground water), surface water, process water and drinking water, growing crops, drying crops, standing and cut timber, landscaping, lawns, trees, plants, shrubs; 5. Excavations; gradings (including filling and backfilling); underground pipes, flues or drains; reservoirs, dams; and other like structures; 6. Wells; brick, stone or concrete foundations; footings of any kind, pilings below the surface of the ground; piers, wharves, docks, pavements, sidewalks, roadways, driveways, hardscape, and retaining walls that are not part of a covered building; 7. Furs, fur garments and garment containing fur, jewels, jewelry, watches, pearls, precious and semi-precious stones, bullion, gold, silver, platinum, other precious metals and alloys; 8. Power generating, distributing, transmission and feeder lines or systems not integrated into a covered building. Radio, television, satellite and data transmission lines and systems are also excluded, unless specifically added by scheduled endorsement; Building and contents are insured for replacement cost; however, to recover replacement cost on a loss requires proof of actual replacement. Some property is valued at actual cash value; check the Memorandum for details on valuation. SCHOOL CONNECTED ORGANIZATIONS Liability coverage is provided by SISC under the Liability Memorandum of Coverage (MOC) for School Connected Organizations by endorsement. This coverage is made available to our member districts booster clubs and foundations. Participating school connected organizations must be officially recognized by the appropriate district official in the application for coverage. Questions regarding how your booster club or foundation can apply for this coverage can be directed to Lilia Beck, Administrative Secretary, at

5 Page 5 September 3, 2015 SPECIAL EDUCATION VOLUNTARY COVERAGE PROGRAM SISC II affords coverage to our member districts under the Special Education Voluntary Coverage Program (SEVCP) for the reimbursement of fees and costs associated with the defense of due process complaints before the Office of Administrative Hearings. This coverage pays up to $75,000 (in the aggregate) per year to each enrolled member district for reimbursement per the scheduled rate under the plan. Should your district wish to enroll in this voluntary coverage program please contact Lilia Beck, Administrative Secretary. SUPPLEMENTAL STUDENT ACCIDENT COVERAGE This is a voluntary coverage program available for purchase by the parents or guardians of enrolled students within your member district. The program is self-administered and underwritten entirely by SISC II. Coverage is afforded up to $25,000 above the standard Student Accident Coverage benefit of $2,500. Scheduled benefits apply per the plan. This is a low cost supplemental insurance plan that applies to incidents that take place during regular school hours, on school premises while school is in session. The coverage also applies to travel to and from scheduled classes in a school furnished vehicle and while participating in school sponsored and supervised sports with the exception of tackle football. Questions regarding the application process for this coverage should be directed to Duncan Low, Coordinator Student Insurance, or Elsa Lara, Claims Examiner III. TACKLE FOOTBALL COVERAGE This coverage can be purchased by parents or guardians of students who elect to participate in tackle football. The program is completely self-funded and self-administered by SISC II staff. The policy will pay up to $15,000 for covered medical expenses due to accidental bodily injury sustained in any one accident. The covered treatment, care, and services must be rendered within 52 weeks of the accident. This is a low cost completely voluntary coverage available to parents and/or guardians seeking to provide coverage for the student athlete either as their primary or secondary insurance. In the event you have questions concerning enrollment or benefits, please contact Duncan Low, Coordinator Student Insurance, or Elsa Lara III, Claims Examiner. Please contact me at the SISC II office by calling should you have any questions. RJK:lb