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Kings Canyon SD |  AR  3530  Business and Noninstructional Operations

Insurance Management   

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Management and Control

The management and control of all insurance required to be carried by the district shall be a function assigned to the business manager.

Insurance Records

1. Insurance Policies

Records of insurance policies shall be maintained by the business manager.

2. Insurable Values

a. Records - Insurable value records of school properties shall be maintained by the business manager.

b. Definitions of Replacement and Insurable Values

(1) Buildings - The replacement value shall be defined as the present day replacement cost of such building less noninsurable items set forth in the district's fire insurance forms.

(2) Contents - The insurable value of the contents shall be defined as the replacement cost of such contents, less depreciation.

c. Establishment of Values

If financially feasible, original replacement values will be established by a professional appraisal firm. Additional values and annual adjustments to reflect depreciation and changes in labor and material costs may be provided under contract with the appraisal firm or by insurance company appraisal engineers provided by the broker-of-record.

If it is not financially possible to employ a professional appraisal firm, the broker-of-record shall secure, free of charge, recommended replacement cost values.

4. Demolition and Increased Cost of Construction

When financially feasible, such coverages will be carried on pre-1933 masonry buildings which have not been strengthened to meet the Field Act requirements.

The broker-of-record will advise with the school staff on coverage available and the premium costs for this type of protection.

Comprehensive Liability

The district shall carry all bodily injury and property damage insurance required by law and shall cover the liability of the district, the Governing Board, its members, officers and employees when acting within the scope of their employment.

Fidelity Bond

The district shall purchase a blanket fidelity bond protecting the district and student body against loss occasioned by fraud or dishonesty on the part of officials and employees.


Compensation insurance shall be carried by the district and student body to cover all employees of the district in accordance with the provisions of the Workmen's Compensation Insurance and Safety Act.

Automobile Physical Damage

The district shall purchase automobile physical damage insurance providing fire, theft and comprehensive insurance on vehicles owned by the district. Deductible collision insurance may be carried on larger value vehicles with the amount of the deductible to be determined at the time of purchase.

Boiler and Machinery

The district shall purchase insurance for boilers and machinery owned by the district.

Theft Insurance

1. The district shall secure Board Form Monies and Securities type coverage on all monies and securities handled by school district employees.

2. The district may secure an all-risk type of coverage on selected expensive and portable items of equipment.

Other Insurance

As specifically authorized by the Board.

Appointment of a Broker-of-Record (Insurance Advisor) for Fire and Related Coverage

1. Appointment - The Board shall appoint an insurance advisor or broker-of-record for a period of not less than five (5) years subject to annual review who shall be the district's official representative with insurance companies for fire, extended coverage vandalism and malicious mischief and replacement cost coverage.

2. Duties - The broker-of-record shall:

a. Be the district's insurance advisor for fire and related

coverage and keep the business manager advised at all times on insurance needs.

b. Be responsible for the technical correctness of the policies, rates and premiums.

c. Upon authorization of the business manager, the broker- of-record shall negotiate and recommend placement of adequate and economical coverages needed by the district. The result of such negotiation shall be shown to the business manager and indicate that thorough competition from qualified companies has been secured.

d. Write the policies or broker them through eligible local agents when in the opinion of the broker-of-record an agent has secured and offered the best and most economical coverage for the district.

e. Secure or maintain an errors and omissions insurance policy and furnish evidence of such coverage to the school district.

f. At least once a year, inspect or secure a review of the district's insurance risks and exposures.

g. Upon request, secure recommended insurable and replacement values for the district.


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