This insurance program is designed to include broader coverage for property, casualty, worker's compensation and liability exposures, as well as provide safety and loss prevention programs in order to control the rising cost of insurance all at a reduced cost to the members.

OBJECTIVES

• Broader protection and benefits through a unified program of expanded coverage for all property and casualty exposures.
• Safety and loss prevention program based on a program providing inspection of physical facilities and regular management information reports.
• A significant reduction in costs for property and casualty protection to be realized through this coordinated risk management program.

This summary is an overview of the NEFEC risk management program. Actual terms and conditions reference must be made to specific consortium agreements and insurance policies.

This is a program in which the consortium of school districts participating in the North East Florida Educational Consortium are joining together to develop and implement a cooperative system of risk management under one comprehensive plan. The term "North East Florida Educational Consortium (NEFEC)" used in this booklet includes all participating districts.

This program is an attempt to more effectively utilize ever shrinking budgets for school districts. Savings under a Risk Management Program will vary depending on the size of a school district and the districts' success in managing their risk and exposure to loss.

There are advantages for a school district to participate in a Risk Management Program. Participating districts will have someone trained in this program working full time in the area of loss prevention and identification of risk exposures. Participating districts maintain control of money paid into the program and the interest that accrues.

The Risk Management staff, with support from a servicing organization, spends much of their time in service activities of a preventative nature which further reduces the cost to participating districts.

Specific objectives are:

• To join in a cooperative effort for the development and implementation in a coordinated multi-district Risk Management Program.
• To provide protection against civil actions, including actions in tort, arising against school boards, board members, or any officer, employee or agent of the boards for acts or omissions arising out of the scope of their appointment or employment.
• To obtain protection against loss or damage to property owned by or under the control of each school board or groups of school boards.
• To provide protection against casualty loss.
• To provide protection for injury to employees under the Workers' Compensation Act of the State of Florida.
• To provide such other protection as shall be mutually agreed upon by the participating school districts.
• To consolidate services to reduce duplication of effort and achieve maximum utilization of resources.
• To incorporate an organizational structure and administrative procedures which allow the necessary authority and flexibility to efficiently administer the program.

Such a program demands an increased awareness of and responsibility for safe conditions. The benefits are apparent for the continued well-being and safety of the consortium, the protection of property and the cost of the program to each district. To assist in achieving the optimum safety conditions, the North East Florida Educational Consortium will provide loss prevention management on a regular basis. This service may indicate remedial measures necessary at facilities under the districts' control.

The Consortium has contracted for the services of an Administrative Service Organization to perform claims adjustment, computer documentation and analysis, and loss prevention services in coordination with the North East Florida Educational Consortium and the designated Risk Manager.

• THE BOTTOM LINE --Your Self-Insurance Program delivers all the coverage that your commercially insured program provided and coverage you did not have. Self-insured losses become an expense only when paid.

Due to the Self-Insured Retention (SIR) approach, there is substantial input and authority on the direction of claims within our retention limit (SIR). You have control and direction over where emphasis should be placed in loss prevention activities and risk exposure identification.

The true bottom line is that you can control and manage your own risk exposures. Catastrophe insurance will protect your district from the unusual and unforeseen losses. The normal and expected losses are retained or self-insured.

• RESULTS ORIENTED--Your program's success can be defined at any point in time and is tied to "A Dollar Saved is a Dollar Earned" concept. Your reward is immediate. It is not tied into a retrospective premium adjustment two and three years in the future.
• CONTROL--Gives you control of our Risk Management and Insurance Program. By self-assuming the normal anticipated frequency and severity you utilize transfer of risk for the unusual or catastrophic type loss and experience.
• ACCOUNTABILITY--Puts responsibility in the hands of your district's administration for performance- and provides for performing well.
• BUSINESS SEGMENT--Your Self-Insured Risk Management Program specifically identifies Risk Management and Insurance as another operating element to be managed and controlled.
• CONSOLIDATION--Brings together the various Risk Management functions, including safety, loss control and insurance purchase into one program and virtually eliminates the "Two Master" relationship that exists between you and a commercial insurance company.
• CASH FLOW--Immediate and continuing cash flow benefits by: a) Substantial reduction of fixed costs; b) Payment for losses as they are settled rather than as they are incurred and reserved.
• PARTNERSHIP/TEAMWORK--North East Florida Educational Consortium, your school district, and a highly qualified service organization's success run hand in hand. They, the service company, have the same motivation as you do to work towards good performance resulting in a reduction of claims frequency and severity; thereby, reducing the cost to your district's participation in the program.