SDAO/SDIS 101...SDAO History Formed in 1979 – Disjointed legislative representation – Cities...

SDAO/SDIS 101

An Overview of Coverage and Services

Chris Hill - Underwriter

Mission

The mission of the Special Districts Association of Oregon is to assist special service districts in providing cost-effective and efficient public services to the people of Oregon.

SDAO History

Formed in 1979 – Disjointed legislative representation – Cities didn’t/don’t like special districts – Fighting for survival

Cooperative Legislative Program – Legislative Committee – Issues that impact all types of districts

SDIS History 1985 Insurance Crises – Legislative authority for public entities to create self-

insured programs for liability and property coverage – SDIS Created

1988 SAIF cancels many small districts and no coverage for volunteers – SDIS created a self-insured workers compensation

program

920 participating districts in the Property & Casualty Program

$38 million in surplus/retained earnings

560 participating districts in the Workers Comp Program

Return $1.75 million to members in the Longevity Credit and Rate Lock Guarantee Program over the next 2 years. Much More returned through various grants and services

SDIS Today

What’s a Special District? Nearly any type of local government that’s not a city, county, or school district ORS Chapter 198 32 Types – Each with its own ORS Chapter Over 1,000 statewide Fastest growing type of government nationwide

Member Type Count

Rural Fire Protection District 249

Domestic Water 129

Irrigation 76

Road 70

Sanitary 50

Park & Recreation 48

Soil & Water Conservation 35

Cemetery 32

Hospital / Health 26

Drainage 24

Port 23

Library 22

Water Control 19

Vector 17

Transit 11

Public Utility 9

Communications 9

County Service 5

Council of Government 1

What is Pooling?

While pools are defined as “something other than insurance” (in most states), the fundamental purpose of risk pooling is not unlike conventional insurance—to protect program participants against unexpected losses.

Like conventional insurance, pools, typically,

transfer risk from one entity to another central risk sharing authority—the pool.

Why Pool Our Risk?

Control, Control, Control

Surplus Belongs to Members Able To Provide Services Not Found in the Insured Market Rate Stability

Self-Insured Pool Structure*

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

Per Occurrence

1,000,000

$100,000,000

Reinsurer'sResponsibilityPool Responsibility

*Hypothetical Illustration for one particular line of coverage

SDIS Services Liability Coverage Property Coverage Crime Insurance Workers Compensation Coverage Employee Benefits – Health, Dental, Life, Disability – Section 125 Plan

Pre-loss legal assistance Safety grants Criminal background checks Drug and alcohol testing Education and Training Loss Control Consultations Management/Board Consulting

Every year at Christmas, my parents ask me one question:

So, what do you do for a living, again?

Underwriting in a Nutshell

Determine Rates Determine Coverage Stare at Spreadsheets

Provide Vague Answers to Hypothetical Questions

Agents All Districts Must Work With Independent Insurance Agent Agents Must Sign ‘Agent Agreement’ – ‘Code of Conduct’

Agents Paid Commission For Their Services

You Control Agent Relationship

Agents Provide You With Certificates of Coverage

How Do I Find What Coverages I Have?

Things that should be buried somewhere in your files:

1. Coverage Documents 2. Declaration Pages 3. Schedules (for property, auto)

OR

How Do I Find What Coverages I Have?

Call Your Agent or SDAO Underwriting

underwriting@sdao.com 1-800-285-5461

Claims Against You By a Third Party

Liability Coverage

Liability Coverage $1 million self-insured retention (SIR) – Reinsurance for large losses – Genesis

Coverage A – Oregon Torts Coverage B – Federal Acts Coverage C – Other Jurisdictions Legal Defense

Liability Coverage Highlights

Director’s & Officers Coverage Included Coverage For Unmanned Aerial Vehicles $500K ‘Base’ Coverage – $4.5 mil - $9.5 mil ‘excess coverage’ available

Liability Coverage – Who is covered? (summarized)

“Participant” = “Insured” “Participant” = Employees, Officers, Directors, Volunteers, or any person or entity acting at your direction and control – For liability arising out of course and scope of their

duties “Additional Participant” (“Additional Insured”) – anyone required to be so according to an insured contract – Not for their own sole negligence

Liability Coverage Highlights

Limited Amounts of Coverage Available For:*

OSHA Defense Ethics Complain Defense EEOC/BOLI Defense Costs Limited Cyber Coverage Limited Pollution Coverage – $100,000 ‘general pollution’ – $50,000 Applicators Pollution Coverage

*See Declarations for specific amounts of coverage

Liability Coverage Highlights (Cont’d)

Data Breach Liability (cyber liability) – $1,000,000 per occurrence limit – $100,000 for reporting/credit monitoring

expenses

Criminal Defense Cost Coverage - $100,000

SWCD’s And SDIS Liability Coverage

Some Auto – Coverage Only Some Excess Only Some Dollar-One Fully Insured

Coverage For Damage Done To Your Property – Buildings and/or their contents – Outdoor Property – Equipment

Property Coverage

PROPERTY MUST BE SCHEDULED! – Review with your agent

Property Coverage

Property Coverage $500,000 per occurrence self-insured retention (SIR) Reinsurance – Lloyds (Primary) – Multiple carriers for excess earthquake and

flood. All Risk Policy for scheduled property Blanket Coverage CNA for equipment breakdown coverage

Auto Coverage

Auto Liability for Scheduled Autos up to GL Limits Auto Physical Damage Coverage (Comp/Collision) – Vehicles less than 7 years old replaced with

new vehicle in total loss scenario

Best Practices Up to 10% Credit on Liability, Auto Liability and Property

Contributions

Online Training – 2% Affiliate Organization Membership – 2% SDAO-SDIS Training – 2% Best Practices Checklist – 2% Oregon Ethics Law Policy – 2%

Crime Insurance Underwritten by Travelers Satisfies the State of Oregon bonding requirement. Limits from $5,000 to $1 million Fully insured program

Workers Compensation

Medical and time-loss for on-the-job injuries – Benefits defined in statute (ORS Chapter 656)

Public entities can cover volunteers – Pass board resolution, maintain roster and report

‘assumed wage’ – Volunteers become “Oregon Subject Workers”

Provides ‘Exclusive Remedy’

Workers Compensation – Safety Net Coverages

First Fill Prescription - $1,000 per claim Family Support Coverage – Surgery $300/day or $3,000 per claim – Catastrophic Injury $300/day or $10,000 per

claim Criminal Defense Cost - $50,000/claim OSHA and HIPAA Defense - $5,000/claim each

Workers Compensation

$1,000,000 per occurrence SIR Excess Insurance – Midwest Employers $8 million annual contributions Regulated self-insured group under Oregon law Rating mirrors insurance industry

Employee Benefits

Self-insured program as of June 2014 Over 200 participating districts Health and Vision – Regence (TPA) Dental – Moda (TPA) Life, Disability - Standard SDAO does the monthly billings and tracks enrollments July to July Renewals Staff – Shelly Barker – The Partners Group (TPG) – Chet Weichman (Century Insurance)

Pre-Loss Legal Services

Free legal advice on any issue which can lead to a liability claim $10,000 deductible for employment claims if service isn’t used Staff – Ron Downs – Spencer Rockwell – Luanne Richey – Tonya Grass

Education and Training Annual Conference Regional Trainings Other specialized trainings Coordination with other associations Newsletter Broadcast Emails Marketing brochures Advertisements Website Content Online Training - SafePeronnel Staff – Luanne Richey – Lisa Stellingwerf – Jennifer Quisenberry

Loss Control Consulting Required by state law for a workers compensation self-insured program On-site inspections and training Resource library Telephone consultations Broadcast email content Safety Grant Program Criminal Background Checks and Drug Testing Best Practices Staff: – Scott Neufeld, Dan Davenport, Troy DeYoung, Greg Jackson,

Bob Ringering, Jason Jantzi, Brian Wolf

Management Consulting Services

8 hours of free management consulting service provided free of charge: Includes, but not limited to: – Strategic planning – Management recruitment – Board member relations/training – Conflict resolution – Mergers and consolidations

Staff – George Dunkel – Luanne Richey – Outside Consultants

Technical Assistance and Member Relations

Hotline for anything that members need Management and Policy Resource Guide Sometimes crosses over into Pre-loss Legal Services Coordinates with Consulting Services Website reference library Staff – Luanne Richey

Member Relations and Customer Service – Sandy Galaway – Lisa Van – Jennifer Quisenberry

Contact Info

Phone: 1-800-285-5461 Underwriting Email: underwriting@sdao.com Loss Control Email: losscontrol@sdao.com Member Service and Pre-Loss: memberservices@sdao.com

Questions?