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ncy Accountability:

Generally, property self-insurance coverage pays for all direct ... In the past the Insurance Fund was adequate to allow a high level of discretion in covering property losses. ...

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ncy Accountability:

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    1. Agency Accountability:Property Self Insurance Policy Key Coverage Elements11/17/04

    2. ORS Chapter 278 provides authority for the state (DAS - Risk Management) to pay, through the Insurance Fund, its cost to restore property needed for the operation of the state. The Insurance Fund is meant to reimburse for accidental loss, not to substitute for an agency's duty to prevent and reduce loss or to maintain good repair.

    3. The State of Oregon has its own formal program of self-insurance to identify, evaluate, and pay for virtually most of its risk of loss. Generally, property self-insurance coverage pays for all direct physical loss or damage to property owned, rented or leased by the state unless the loss is excluded or limited in the policy manual.

    4. In the past the Insurance Fund was adequate to allow a high level of discretion in covering property losses. However, the fiscal crisis facing the state demanded changes to maintain the solvency of the Fund. As a result, the basic property coverage and special plan coverages were revised in April 2004.

    5. It is important that agencies understand policy terms and conditions of our self-insurance property coverage. This is important as there are many risks for which the Insurance Fund does not: provide coverage, or pay the costs.

    6. Coverage Components Basic Coverage: Pays for direct physical loss or damage subject to policy terms and conditions. Equipment Breakdown Coverage: Broad coverage that pays the costs to replace; rebuild or restore covered equipment damaged or destroyed by a covered accident.

    7. Special Plan Coverage: Coverage for certain items or perils excluded in the basic property coverage.

    8. State Agency Responsibilities To encourage risk control, agencies have increased responsibility to protect property assets from loss. Each state agency is responsible to understand the policy terms and conditions of coverage.

    9. Key Coverage Elements Annual Risk Report Reporting Property Values Loss Control Plans Reporting Losses Payment Limits Other

    10. Annual Risk Report Agencies must report property values to trigger coverage reporting does not guarantee coverage. Claims adjusters will use agency reported values for loss settlement Effective March 2007 Special Plan coverage must be chosen each year. Equipment Breakdown Coverage: newly acquired locations must be reported to us within 120 days.

    11. Reporting Property Values Agencies must separately report all real or personal (single items or collection) property valued at $1 million or more. Agencies must report the property that belongs to anyone other than the state for which it has agreed in writing to be responsible for loss or damage.

    12. Loss Control Plans Agencies must maintain and follow verifiable, written loss control plans, as follows for: Real or personal (single items or collections) property valued at $1 million or more. Effective March 2007 Special Plan Coverage. Equipment Breakdown Coverage.

    13. Reporting Losses Report a loss to covered property no later than 90 days after you discover it. Report all crashes in commercially rented vehicles regardless of the value of the damage. Other property losses under the agency deductible are not reported to Risk Management.

    14. Payment Limits Maximum payment for basic coverage shall not exceed the current self-insured retention (SIR) per occurrence of the states commercial excess property policy. $1.5 million for standard perils $4 million for the perils of flood & earthquake

    15. Losses above the SIR will be submitted to our commercial insurance carriers. However, excess commercial or other insurance purchased may not cover all real or personal property covered by the self-insurance manual. Equipment Breakdown Coverage - payment per occurrence is limited to $100,000 for regular equipment breakdown and $250,000 for scheduled electrical generating locations.

    16. Special Market Value Plan for Exceptional Items - payment is limited to $250,000 per occurrence and $50,000 per item. Special Plan for Money & Securities - payment is limited to $750,000 for each loss at any location or building.

    17. Loss payments not covered by the self-insurance property policy manual are: Any deductible Any gap between the SIR, Special Plan limits, or Equipment Breakdown limits and the loss amount where excess commercial property insurance begins. Amounts covered by any other applicable insurance.

    18. Amounts above the SIR, Special Plan limits, or Equipment Breakdown limits that are excluded from commercial excess property insurance coverage.

    19. Other Purchase a Limited Damage Waiver at the time of rental for commercially rented vehicles used solely for official state business. Inspection of boilers and machinery. Special Market Value Plan for Exceptional Items conditions of payment require a written agreement, appraisal and inventory.

    20. Questions?

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