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ARKANSAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (*)

ARKANSAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (*). RM 101 – “ INTRODUCTION TO RISK MANAGEMENT ” Nathan Barber mailto:nathan.barber@rsdmail.k12.ar.us (*). Be Prepared! (*). Insured/Covered: Very Important What To Do (Agent) Be Organized Work The Plan (Pull The File).

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ARKANSAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (*)

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  1. ARKANSAS ASSOCIATION OF SCHOOL BUSINESS OFFICIALS (*) RM 101 – “INTRODUCTION TO RISK MANAGEMENT” Nathan Barber mailto:nathan.barber@rsdmail.k12.ar.us(*)

  2. Be Prepared!(*) • Insured/Covered: Very Important • What To Do (Agent) • Be Organized • Work The Plan (Pull The File)

  3. Course Outline: • Legal Basis • Determining Risk Exposures(*) • Types Of Insurance • Agents/Sources • Claims And Reporting Records(*)

  4. ACT 625 of 2007 • The Arkansas Commission For Public School Academic Facilities And Transportation Rules And Regulations

  5. ACT 625 • Amended Arkansas Code 6-21-114 • “An Act To Authorize The Establishment Of Insurance Requirements For Public School Facilities; And For Other Purposes”(*)

  6. ACT 625 (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.

  7. ACT 625 (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:

  8. ACT 625 (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, 2007.

  9. ACT 625 (Cont.) • (b) The state’s financial participation under the Academic Facilities Partnership Program provided by § 6-20-2507 or the Academic Facilities Catastrophic Program provided by § 6-20-2508 may be withheld or reducedby the commission if a school district does not comply with the rules promulgated under subdivision (d)(2)(A) of this section.

  10. ACT 625 (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; (*) (B) The appropriate amountof insurance coverage under this subdivision (e)(4).

  11. ACT 625 (Cont.) • Arkansas Commission for Public School Academic Facilities and Transportation: Rules/Regs. • See Attached • Division Rules and Regulations

  12. Arkansas Commission Rules • Regulatory Authority • Purpose • Establish minimum recommended requirements ? • Definitions • Insurance Requirements

  13. Arkansas Law Identification Numbers 6-17-1101 6 = Title (Education) 17 = Chapter (Personnel) 11 = Subchapter (Insurance)

  14. Based On Federal Law, State Law, ADE Rules, Local Board PolicyArkansas Law Search Address: ??????? http://www.arkleg.state.ar.us/NXT/gateway.dll?f=templates&fn=default.htm&vid=blr:code

  15. Legal Basis (Summary): • LIABILITY INSURANCE: 6-13-625 • DEDUCTIONS FOR GROUP INSURANCE PREMIUM: 6-17-804 • PERSONNEL INSURANCE: 6-17-1109 - 6-17-1118 • WORKERS’ COMPENSATION: 6-17-1401 - 6-17-1413(*) • STUDENT PASSENGER EXCESS LIABILITY INSURANCE: 6-19-118 • PURPOSES OF LOAN: 6-20-802

  16. Legal Basis (Summary Cont.): • SELF INSURANCE ACT: 6-20-1501 - 6-20-1515 • SCHOOL MOTOR VEHICLE SELF-INSURANCE ACT: 6-21-701 - 6-21-711 • PUBLIC ELEMENTARY AND SECONDAY SCHOOL INSURANCE FUND: 19-5-908 • SCHOOL VEHICLE INSURANCE RESERVE TRUST FUND: 19-5-981 • POLICY-MAKING BODY ONLY - REPORTS: 21-5-403 • MINIMUM VEHICLE INSURANCE: 21-9-303 & 27-19-101

  17. Legal Basis: • 6-13-625. Liability Insurance • 6-17-804.Deductions for Group Insurance Programs • 6-17-1101. - 6-17-1108 (Repealed) • 6-17-1109. Life And Disability Insurance – Notice, Evaluation, And Approval Of Bid Proposals • 6-17-1110. (Repealed) • 6-17-1111. Life And Disability Insurance – Employee Eligibility –Allocation Of Cost • 6-17-1112. Life And Disability Insurance – Members Of Retirement Systems

  18. Legal Basis (Cont.): • 6-17-1113. School Worker Defense Program • 6-17-1114. Cooperation • 6-17-1115. Group Disability Insurance For School Districts. • 6-17-1116. School Bus Drivers • 6-17-1117. Health Insurance • 6-17-1118. School Worker Defense Program Advisory Board

  19. Subchapter 14. Workers’ Compensation • 6-17-1401. Coverage Provided • 6-17-1402. Workers’ Compensation Commission – Authority and Jurisdiction • 6-17-1403. Financing Coverage • 6-17-1404. Filing Reports of Injury or Death. • 6-17-1405. Notification of Award – Transfer of Available Federal Funds. • 6-17-1406 – 6-17-1410. (Reserved). • 6-17-1411. School District Employees • 6-17-1412. Effective Date • 6-17-1413. Carriers

  20. Subchapter 15. Self-Insurance Act • 6-20-1501. Title • 6-20-1502. Establishment of Self-Insurance System – Insurance Service Division • 6-20-1503. State Insurance Department – Powers and Duties Generally. • 6-20-1504. School Self-Insurance Advisory Committee (repealed 2/04) • 6-20-1505. Information to be Furnished. • 6-20-1506. Finding of uninsurability – Effect. • 6-20-1507. Premium Rate and Payment.

  21. Subchapter 15. Self-Insurance Act (Cont.) • 6-20-1508. Appraisal and Payment of Loss. • 6-20-1509. Effect of Federal Assistance. • 6-20-1510. Repealed • 6-20-1511. Permanent Insurance Reserve Fund. • 6-20-1512. Disposition of Funds. • 6-20-1513. Bond Obligations. • 6-20-1514. Investments. • 6-20-1515. Annual Reports.

  22. Subchapter 7. School Motor Vehicle Self-Insurance Act. • 6-21-701. Title. • 6-21-702. Purpose. • 6-21.703. School Motor Vehicle Self-Insurance Program – Participation. • 6-21-704. Administration – Reports. • 6-21-705. Powers and Duties of Insurance Commissioner • 6-21-706. Information Furnished by Participants

  23. Subchapter 7. School Motor Vehicle Self-Insurance Act (Cont.) • 6-21-707. Inspection and Safety Program • 6-21-708. Policy Limits. • 6-21-709. Payment of Claims – Subrogation – Premium Rate- Excess Insurance. • 6-21-710. School Vehicle Insurance Reserve Trust Fund – Investments. • 6-21-711. Advisory Committee – Members – Duties.

  24. 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

  25. RISK MANAGEMENT • PROPERTY & CONTENTS • FLEET • EQUIPMENT BREAKDOWN • ERRORS AND OMISSIONS • GENERAL LIABILITY • STUDENT ACCIDENT • WORKERS COMPENSATION (*) • EMPLOYEE BENEFITS • Builders Risk

  26. GENERAL TERMS • AGENT (Important) • UNDERWRITER • EXCESS • POOLS • AGREED AMOUNT ENDORSEMENT • EXCLUSION • REPLACEMENT COST • ACTUAL CASH VALUE • INSPECTIONS AND SURVEYS

  27. PROPERTY (AKA: BUILDING AND CONTENTS) • SCHEDULE COVERAGE • BLANKET COVERAGE • FIRST DOLLAR • PACKAGE POLICIES

  28. 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.

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

  30. Student(*) • Athletic • Whole School

  31. Agents/Sources • Arkansas School Board Association • Arkansas Insurance Department • Independent Agents

  32. Arkansas School Board Association Shannon Moore Director of Risk Management/Workers’ Compensation Trust Phone: (866) 223-9587 http://www.arsba.org/insurance/insurance.shtml • 147 School districts (property) • 142 School districts (vehicles) • 4,288,688,556 Total insured value • As of 7/1/07 will write vehicles only • Builders risk available if write property

  33. Arkansas Insurance Department – Risk Management Division Drew Carpenter – Director Phone: (501) 371-2690 Fax: (501) 371-2842 Email: insurance.risk.management@arkansas.gov • 77 school districts & Co-ops (property) • 110 school districts & Co-ops, 4,700 vehicles (fleet) • 3.5 billion • 50 Million earthquake pool • 1 million out of state vehicle • 100 K Combined single limit • 5K Medical per student (secondary coverage)

  34. Hoffman-Henry Insurance David White - Agent 305 East 6th AvenuePine Bluff, AR 71601(870) 534-4532 or (800) 437-8459 • 25 school districts

  35. First Arkansas Insurance Dwayne Shelton – Vice President 1501 Mart Drive Little Rock, AR 72202 501-666-6653 http://www.firstarkansasinsurance.com/littlerock/

  36. Walker Brothers Ins, Inc. 6800 Isaacs Orchard Rd Springdale , AR 72762 PH: 479-306-4677 Mike Luttrell Chad Smith

  37. Claims/Reporting • Prompt(*) • Thorough • Reports Police Department Fire Department Employees • Communication • Pictures • Inventory

  38. AAEA & AASBO • Influencing Education Legislation • Quality Professional Development • A Lighthouse In a Storm • Mentoring program • Friends (*)

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