KASB Work Comp Board approves 8 percent rate reduction, dividend payments to members
An 8 percent rate reduction and approval of a plan to issue $300,000 in dividends to Kansas schools are among the decisions recently made by the board of trustees of the KASB Workers Compensation Fund. Inc.
“There is no better evidence of a fiscally strong pool than dividends and rate reductions,” said Rod Spangler, KASB Director of Insurance Services. “These two things just happened with the KASB Work Comp Fund.”
The Fund was established by the school board association in 1987 and currently serves 111 KASB member organizations.
The Fund is administered by KASB with an in-house claims department, and is governed by a separate Board of Trustees composed of locally-elected board of education members. No eligible member has ever been denied coverage, nor has any member been non-renewed due to excessive losses.
The Fund operates solely for the benefit of KASB members and is designed to return favorable operating results to members through dividends or a reduction in future premium costs. Based on the health of the insurance pool, the board of trustees approved a rate reduction for all current and new members for the 2016-17 Fund Year and the dividend payment plan for 1989-90 and 1991-92 during its April meeting.
This is the third time in the KASB Work Comp Fund’s history dividends have been authorized. Work Comp Fund members who will receive dividends will be notified in writing in the near future. The amount returned to each qualifying member of the work comp fund is based on the amount of premium paid and the loss ratio on submitted claims. The current $300,000 dividend plan covers specific members of the fund for 1989-90 and 1991-92 school years.
“The positive side of an insurance pool is the concept of shared risk, cost control and the potential for dividends,” Spangler said. “The negative side, of course, is that with the shared risk comes the potential for additional premium assessments.”
In the 30 year history of the KASB Work Comp Fund, two special assessments were required; one in the 2002-03 school year and another in the 2004-05 school year. However, $775,000 of the special assessment amounts have now been returned to the participating members.
“The fund is financially strong and healthy,” said Spangler. “When you are looking to save money and finding efficiencies, it is not just about renewals.”
Spangler urges school leaders to take advantage of the annual review and renewal process for insurance protection and other risk management products.
“In light of budget constraints facing our members, and the continued efforts to sustain high student success, don’t let these annual renewals come and go without a serious review of your options, your risk, and a potential for real savings that can be put to better use,” Spangler said.
Another focus of the KASB pool is cost containment and loss control. The KASB Work Comp Fund recently launched an online learning management system for members of the work comp fund they can use with their employees to train on how to prevent on-the-job injuries and reduce the number of work comp claims. KASB is looking to use the learning management system to help launch other training programs as well.