Oakland Unified School Oakland Unified School DistrictDistrict

2002-2003 Insurance Program 2002-2003 Insurance Program ReviewReview

Prepared by:

Ron Martin

Keenan & Associates

September 30, 2002

Oakland Unified School Oakland Unified School District P&C Insurance District P&C Insurance

CoveragesCoverages Liability Property Workers Compensation Boiler & Machinery

– Equipment Breakdown Public Employee Dishonesty

– Crime & Fidelity Travel Accident Electronic Data Processing Coverage Voluntary Student Accident

OUSDOUSD2003-2004 Insurance Goals & 2003-2004 Insurance Goals &

ObjectivesObjectives

Research and Evaluate Alternative Excess Markets and ability to buy down $1,000,000 per occurrence limit

Research and Evaluate Alternative Excess Workers Compensation Markets to fully transfer risk vs. self-insurance pooling

OUSDOUSD2003-2004 Insurance Goals & 2003-2004 Insurance Goals &

Objectives (cont’d)Objectives (cont’d) Buy-down Boiler & Machinery deductibles

with minimum to no increase in premium Increase Crime Limits with minimum to no

increase in premium Research, Review and provide Owner Controlled

Insurance Program options to eliminate district construction risk exposures

Oakland Unified School DistrictOakland Unified School DistrictLiability StructureLiability Structure

Schools Excess Liability Fund

(SELF)

$14,000,000 excess of $1,000,000Per occurrence

Claims Administrator: George Hills Company

$1,000,000 Self-Insured RetentionPer occurrence

Claims Administrator: Oakland Unified Legal Department

Oakland Unified School DistrictOakland Unified School DistrictProperty StructureProperty Structure

Schools Association for Excess Risk

(SAFER JPA)

$149,750,000 Excess of $250,000Per occurrence

Claims Administrator: Keenan & Associates

$250,000 Self-Insured RetentionPer Occurrence

Claims Administrator: OUSD Building & Grounds

Disco ver P&C

$5,250,000

$15,000,000

A C E - N Y 6 5.0%

E v e res t R e 2 5.0%

T o a R e 10.0%

02-03Property Program

CarrierParticip ation

100% re-insuredAdmitted ‘A’ Paper

$100,000,000ACE -N Y 60.0%E verest Re 18.0%H art Re 2.0%XL 20.0%

Hartford Steam Boiler Re 100%

$150,000,000

$250,000OUSD

Hartford Steam Boiler Re 100%

$150,000,000

$100,000,000ACE-NY 60.0%

Everest Re 18.0%Hart Re 2.0%XL 20.0%

$50,000,000

ACE-NY 67.0%Everest Re 24.3%XL 8.7%

$15,000,000ACE-NY 65.0%

Everest Re 25.0%Toa Re 10.0%

Discover P&C

$5,250,000

$250,000

OUSD

2002-2002-2003 2003

Property Property StructureStructure

Oakland Unified School DistrictOakland Unified School DistrictWorkers CompensationWorkers Compensation

StructureStructureSchools Excess Liability Fund

(SELF)

Statutory Limits excess of $300,000*Self-Insured per occurrence

$300,000 Self-Insured Retention

Per Occurrence

Claims Administrator: JT2 Integrated Resources

Boiler & Machinery CoverageBoiler & Machinery Coverage

Chubb Insurance Company

Admitted ‘A’ rated

$50,000,000 Limit of Coverage

Per Occurrence

*$10,000 Deductible

Valuation: Repair & Replacement

Public Employees DishonestyPublic Employees Dishonesty(Crime & Fidelity)(Crime & Fidelity)

Hartford Fire Insurance

Admitted ‘A’ rated

*250,000 Policy Limit per occurrence

$1,000 Deductible

Covered Property: Money, Securities and other

Covers dishonest acts of employees

…“identified or not”

Oakland Unified School District Oakland Unified School District Travel AccidentTravel AccidentHartford Insurance Company

Admitted ‘A’ Rated

$150,000 Per Occurrence limit for Class I & II employees (Board, Superintendent, Deputy Supt, General Counsel, Asst. Supts, Controller, Directors,

&Board Executive Assistant)

$ 50,000 Per Occurrence limit for Class III employees (All other salaried employees under age 70)

24/7 protection for business purposes only

$900,000 Aggregate limit for all Classes

Oakland Unified School DistrictOakland Unified School DistrictElectronic Data ProcessingElectronic Data Processing

Federal Insurance Company

Admitted ‘A’ Rated

$25,000,000+ Limits per occurrence

$ 3,800,000+ per location

$1,000 Deductible

Oakland Unified School District Oakland Unified School District Premium SummaryPremium Summary

Coverage Policy Term 2002 Premium 2003 Premium

Excess Liability 07/01/02-07/01/03 $109,530 $182,312

Excess Property 07/01/02-07/01/03 $490,800 $487,610

($133,415 savings)

Excess Workers Comp

07/01/02-07/01-03 $196,625 TBD

Boiler & Machinery

07/01/02-07/01/03 $46,117 $50,387

Crime 06/02/00-06/02/03 0 0

Travel Accident 07/16/02-07/16/05 $1,345 $2,803

3 year premium

EDP 08/01/02-08/01/03 $72,432 $88,755

Voluntary Student

Accident

09/05/02-09/05/03 $2,000

Printing charge

$2,000

Printing Charge

QUESTIONS?QUESTIONS?