The Original All Lines Aggregate

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All Lines Aggregate Program OverviewThe All Lines Aggregate program is a contemporary alternative to conventional insurance. It is a tailor-made package that blends risk retention, risk transfer, and customized claims management within a framework designed to effectively manage today’s total cost of risk and unlock significant long-term savings.

The All Lines Aggregate program is available to you through RPS PNP, a division of Risk Placement Services Inc. The All Lines Aggregate program has been consistently providing value to our clients for more than 40 years and insures several hundred entities, many of which are pools that have many members. RPS PNP uses paper that is rated A X or better by A.M. Best. RPS PNP has the most experienced Package team in the industry.

The All Lines Aggregate program can provide all Property coverage (including Loss of Income, Inland Marine and Automobile Physical Damage); General, Law Enforcement, Public Officials’ Errors & Omissions, and Automobile Liability; Workers’ Compensation and Crime coverage - all in a single package.

The All Lines Aggregate program combines the cost efficiencies of Self Insurance (for those elements of risk which are predictable) with the security of Insurance (for those elements of risk which are unpredictable). An organization can choose to retain (or self insure) the losses that are expected or can be reasonably anticipated. At the same time, an organization can protect its assets, earnings power, and/or taxpayer dollars by transferring (or insuring) those losses that are unexpected or which cannot be reasonably anticipated.

The All Lines Aggregate Program Has The Following Key Objectives:

• Savings

• Security

• Stability

• Control

Program Highlights• Exclusive manuscript form

• No Coinsurance Clause on Property

• Unintentional E&O Clause

• Replacement Cost – if funds used for another Capital Project

• The programs work in Cat and non-Cat areas

• Flood Zone A can be covered subject to exposure data

• Can quote with and without property coverage

• Can quote with and without the Loss Fund

• General Liability and Law Enforcement Liability without an aggregate

• Coverage available on Health Departments and Nursing Homes

• Full EPL including Sexual Harassment and Abuse coverage is available

• Basket aggregate loss fund applies to all lines, including Worker’s Compensation and Professional Lines

• Multiple lines clash coverage is automatic

• Loss Control money may be available for specific projects. We have a dedicated Loss Control expert and free access for our clients to Online Risk Management platforms.

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Is The All Lines Aggregate Program Right For You?The All Lines Aggregate program, a protected risk management approach, is designed for an Insured that:

• Desires more Control of their Insurance Program

• Wants a mechanism for reducing their total cost of risk

• Has total cost of risk (premiums, deductibles, retained losses & assessments) in excess of $500,000

Insureds with existing Self Insured Retentions are excellent candidates for the All Lines Aggregate program. Governmental entities may consider the establishment of a pooled insurance approach or risk purchasing group to take advantage of this alternative market approach.

A successful All Lines Aggregate program depends upon strong partnerships. These relationships rely upon an Insured’s attitude toward risk taking, an understanding of the concept of total cost of risk, the willingness to establish long-term relationships, and active participation in the claims management and loss control process. RPS PNP brings decades of collective experience in the design and implementation of the All Lines Aggregate program. RPS PNP delivers results.

Entities That Are Right For The All Lines AggregateThe All Lines Aggregate program, a protected risk management approach, is designed for an Insured that:

• Cities/ Towns / Villages

• Counties

• States

• School Boards

• Universities (public and private)

• Community and Vocational Colleges

• Charter Schools

• Housing Authorities

• Pools

• Airports

• Native American Nations

• Special Districts

• Transportation Authorities/Districts

• Utilities

• Turnpike Authorities

• Park Authorities

• Religious Institutions

• Nonprofit Operations

RPS PNP has been instrumental in pool start-ups, risk pooling trusts, and reinsurance of pool coverage documents and risk retention groups.

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An example of the All Lines Aggregate Diagram

Elements of All Lines Aggregate program described on the following page

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Loss Frequency

Loss Fund

Aggregate Excess

Specific Excess Insurance

ALA Specific Excess

$1M

Property Auto Liability

Errors &

Omissions

Worker’s Comp. Employer’s

Liability

CrimeGen. & Law Enforcement

Liability

$1M $1M $1M

$500K

$25K

$500K

$25K$250

$50K $50KClash Cover

$100K

Maintenance Deductible ALA Self Insured Retentions

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All Lines Aggregate Program Elements

Self Insured Retention The Self Insured Retention (SIR) selected is the maximum amount per loss that the Insured will retain for each line of coverage.

Loss Fund The Loss Fund is established by the Insurer, and represents the expected maximum accumulation of Self Insured Retention losses in any given policy period before the Aggregate Excess Insurance applies. It is based on the Insured’s previous loss experience, adjusted for inflationary and exposure trends, and unreported losses.

Maintenance Deductible A Maintenance Deductible may be used to protect the stability of the Loss Fund. The amount of the Maintenance Deductible may vary by line of coverage.

Clash Coverage The Clash Coverage of the All Lines Aggregate is unique: it limits a loss involving multiple coverage lines to a single Self Insured Retention.

Aggregate Excess Insurance Aggregate Excess Insurance provides stop loss coverage of the Loss Fund, thereby protecting the Insured from unexpected loss frequency. When the total amount of paid Self Insured Retention losses exceeds the Loss Fund, the Insured is then fully reimbursed up to the selected Aggregate Excess Insurance limit.

Specific Excess Insurance Specific Excess Insurance provides coverage above the Self Insured Retention, by line of coverage, to protect the Insured from severe or catastrophic losses. Higher excess limits will be provided where necessary or desired.

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All Lines Aggregate Program Key Objectives

• SAVINGS - Immediate savings through interest earnings and improved cash flow from not paying away the self insurance element as premiums to insurance companies. Competitive pricing of the insurance element. Long term savings through aggressive loss control and customized claims management, which will cause a reduction in the volume and value (i.e. the frequency & severity) of recurring losses (i.e. the self insurance element).

• SECURITY - An organization should retain the predictable risk it can afford. Excess insurance is a vital means of transferring the unaffordable or the unpredictable risk. PNP’s flexibility can help tailor your budget protection.

• STABILITY - The cyclical nature of the insurance marketplace makes budgeting insurance costs very difficult because of dramatic price swings. In a protected self-insurance program, the bulk of an organization’s costs are developed in the self-insured segment and are therefore not subject to swings. Effective loss control measures can even result in a reduction of total insurance costs while industry wide premiums are rising. Opportunity for the Insured to participate in customized claims management and loss control will result in lower total insurance costs while industry-wide premiums can rise due to increases in loss experience.

• CONTROL - Superior claims experience should reward an Insured, not an insurance company’s stockholders. A prime objective of the All Lines Aggregate program is to put control of this key element of insurance expense back with the Insured. This control is established through a customized claims management partnership between the Insured, the selected Third Party Administrator, and the Insurer.

All Lines Aggregate Program Advantages

• Reduced Cost and Optimal Cash Flow. The package approach to self insurance reduces the administrative costs of traditional insurance. This means that the Insured will not be trading premium dollars for loss dollars in the area of usual and expected losses. Some claims, particularly larger Liability or Workers’ Compensation losses, are actually paid out over a period of several years. As a result, the Insured benefits from the interest earnings on known losses until loss payments are made.

• Budget Protection. The Loss Fund typically represents the majority of total insurance costs. The Loss Fund is quantified at the outset; so, the Insured can accurately budget for the cost of their insurance program. Significant savings will be obtained through superior self insured loss experience.

• Improved Claims and Litigation Management. The All Lines Aggregate program creates opportunities to achieve even greater cost and efficiency savings through active involvement in customized claims management and loss control, assisted by sophisticated claims information systems. Claims procedures, defense counsel selection, and litigation management will be tailored to fit the Insured’s operations and desired levels of participation through a partnership among the Insured and the selected Third Party Administrator. These services will reduce losses and provide for a more stable program.

• Additional Advantages include no audit / prospective premiums, manuscripted coverage and other benefits not commonly available from traditional insurance companies.

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All Lines Aggregate Program Coverages AvailableThe flexibility of the All Lines Aggregate program enables an Insured to select the coverage that meets their specific needs. All of the following coverage may be included under the program, but not limited to:

Property

• Earthquake & Flood (with annual aggregate limits)

• Data Processing

• Time Element Coverage

• New Construction (Owned)

• Inland Marine

• Automobile Physical Damage

• RCV of high valued vehicles

• Fine Arts

• Ordinance Deficiency

• Demolition Debris Removal

• Automatic Acquisition

• Property under Contract/on Consignment

• Unintentional Errors and Omissions

Workers’ Compensation/Employers Liability

• Volunteers

• Other States

Crime

• Employee Dishonesty

• Loss Inside & Loss Outside Premises

• Money Orders & Counterfeit

Paper Currency

• Depositor’s Forgery

Liability

• General Liability

• Automobile Liability

• Medical Payments (Premises & Automobile)

• Host / Liquor Liability

• Watercraft Liability

• Employee Benefits Liability

• Incidental Malpractice

• Blanket Contractual Liability

• Uninsured/Under-insured Motorist Liability

• No Fault

• Law Enforcement Liability

• Public Officials’ Errors & Omissions

• School Board Legal Liability (including EPLI)

• Sexual Harassment / Abuse

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