ALUMNI LEADERSHIP CONNECTIONS

1. ALUMNI LEADERSHIP CONNECTIONS “Best Practices for Handling Legal and Risk Management Issues” David Snowe, CPCU CIC CRM Insurance Manager Risk Management Office (814) 863-4241 dcs28@psu.edu June 11, 2011

2. The Risk Management Cycle

3. Classic Risk Treatment Methods • AVOID • REDUCE • TRANSFER • ASSUME (AND, IN SOME CASES) • INSURE

4. Where We Often Interact • Insurance and Risk Management for the University (including the Alumni Association). • Insurance and Risk Management for Alumni Chapters/Interest Groups/Societies/Etc. • The fine-line legal and insurance differences between the University/Alumni Association and Chapters/Interest Groups/Societies/Etc.: • Insurance and Insurance Certificate Requests • Claims and Lawsuits • Contracts • Good Old-Fashioned Advice

5. Insurance • Separate Liability Insurance is purchased specifically for Alumni Chapters/Interest Groups/Societies/Etc. • An Insurance Coverage Overview is provided in the “Chapter Leaders Handbook”. • Common Questions: • “Special Events” Insurance (not needed) • Event Cancellation Insurance (no) • Host Liquor Liability Insurance (social host only) • Insurance Certificates (proof of insurance) • Directors & Officers Liability (provided except for employment situations…call!)

6. Insurance, cont. • Questions and requests for Insurance Certificates should be directed to the Alumni Association Regional Directors, who will refer to Risk Management as needed. • Assistance and Support is provided by the University’s Risk Management Office.

7. Claims:What We Need After an Incident • Full Names and Addresses (Complete the Incident Report on the Risk Management website). • Minimize email correspondence and cc’s. • Record observed facts and statements of the injured person. • If the incident involves an outside group, we need the name of the group and a copy of any agreement of contract. • If you observe a dangerous condition, report it for immediate resolution. • IF YOU RECEIVE LETTER OF REPRESENTATION OR SUBPOENA, PLEASE CONTACT RISK MANAGEMENT IMMEDIATELY.

9. What We Don’t Need After an Incident • Do not speculate as to the incident cause or draw any conclusions. • It is perfectly normal to express your person concern, but do not commit to the injured party that they will be reimbursed by the Chapter or by the University! • Don’t put in an email what you don’t want to read in the Sunday newspaper!!!

10. IF IT IS REALLY SERIOUS • CALL RISK MANAGEMENT IMMEDIATELY, IF YOU OBSERVE, AS THE RESULT OF AN INCIDENT: • CRITICAL INJURY • SOMETHING VERY STRANGE • DAYTIME: 814-865-6307 • AFTER HOURS: 814-360-1956

11. Agreements & Contracts • Alumni Chapters/Interest Groups/Societies are separate entities from the University and the Alumni Association – so, who are parties to the Agreement? (this can be confusing, especially when viewed from the perspective of an outside entity, such as a facility renting space to a Chapter event – they think we are all “Penn State”) • College/Campus Societies are closely aligned with the Dean or Chancellor – as such, the University may be a legal party to an agreement or contract. • Guidance and advice is available from the Alumni Association (contact your Regional Directors) or the Risk Management Office – after review, we may advise that you consult with your own legal counsel. (Examples)

12. Agreements & Contracts, cont. • If the University and Alumni Association IS a party to the contract, then the contract must be submitted through the Alumni Association, who then submits it to Risk Management for review, processing and signature. • These contracts may only be signed by specifically authorized personnel. • FYI, the University does not have Sovereign Immunity!!!

13. A Reminder About Funding for College Societies • College Societies serve at the direction of the Dean or the Chancellor. • Bank accounts are to be maintained by the College – no additional bank accounts are permitted. • Please work with your College’s Alumni Representative or the appropriate Alumni Association staff.

14. Thank you…Questions? http://www.controller.psu.edu/Divisions/ RiskManagement/indexRM.html David Snowe, CPCU CIC CRM Insurance Manager Risk Management Office (814) 863-4241 dcs28@psu.edu