Yes. The fund has to abide by all the requirements and regulations of the Kansas Insurance Department. The entire program has to be approved by the Kansas Insurance Department. The service company, Cowell Insurance Services, Inc. (CIS), is licensed and approved by the Kansas Insurance Department. The Service Company must provide continuous reports to the State of Kansas on fund activities and financial position.
Assessments are possible in any self-insurance risk management program, but can only occur if the program is deemed underfunded by the Kansas Insurance Department. In order to protect this program from the possibility of an assessment, the following steps have been taken:
The loss fund has been developed to take into consideration maximum loss situations. This is a very conservative approach.
The excess insurance coverage has been structured to assure that the fund will be protected against catastrophic losses.
A loss control program has been specifically designed to promote safety awareness and control frequency of loss.
It is very important to keep in mind that in a commercial insurance program any company that has frequent and severe losses essentially has an assessment the following year. This assessment is in the form of higher insurance premiums.
By definition, a self-insured association is a sharing of risk. Under your current commercial insurance program, you are now indirectly paying for the bad experience of other companies. Our program addresses this situation by establishing guidelines to monitor those member companies developing a loss trend. Our loss control staff will focus on these members and assist them in more aggressive implementation of the loss control program. If a member company does not put forth an effort in the area of loss control which results in reduced frequency and severity, they will either be:
Debited at renewal for poor experience; or
Be advised of non-renewal in advance of their expiration date.
Yes. Each participating member company will have a written loss control program designed for your operations. It will be in a loose-leaf binder format so additions and deletions to the program can be easily accomplished. KTRMG will provide loss control visits to all members to insure on-going use of the Certified Safety Program.
The financial statements are reviewed only by the Kansas Insurance Department and/or the service company. This information will be held in strictest confidence. The Kansas Insurance Department requires all members of a self-insured program to demonstrate their financial stability. This is a strict requirement of the Kansas Insurance Department.
Yes. The audits will be completed annually by an independent firm. This is similar to what is done currently by your commercial carrier. Only KTRMG will review the audits to determine a final annual contribution charge for each member.