ERIC Number: ED175094
Record Type: RIE
Publication Date: 1979-Apr
Reference Count: 0
Self Insurance and Other Trends in Insurance Management.
Addicks, R. C., Jr.
When determining a school system insurance program, the school board should first set a general insurance management policy statement for administrators to carry out. Next an overview of all the system operations must be made. The risks must then be quantified in terms of all potential financial loss. When designing an insurance program, the district ought to incorporate loss prevention, avoidance of risk, assumption of risk through deductibles, self-insurance, and insurance. It is wise to figure potential losses per occurrence and self-insure the smaller losses. For larger losses, insure to the full replacement value and eliminate as many exclusions as possible. If risk is assumed through deductibles, the deductible is usually paid from reserve funds. When determining the amount of deductible to maintain, it should be remembered that increased premiums necessitated by a lower deductible will add up over a long period of time. It is acceptable to take bids when choosing an insurance company, as long as bidding does not interfere with the long-term nature of the insurance management program. When choosing an employee benefits program, it must be remembered that although a small deductible may represent considerable savings to the system, it may not represent savings to the employee. (Author/JM)
Publication Type: Speeches/Meeting Papers
Education Level: N/A
Authoring Institution: N/A
Identifiers: Insurance Management; Self Insurance
Note: Paper presented at the Annual Meeting of the National School Boards Association (39th, Miami Beach, Florida, April 21-24, 1979)