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Show School District Changes Insurance To Blanket Type; Policies Cancelled, Sew Ones issued A blanket type insurance policy has been adopted by the Duchesne County School District. All of the numerous existing policies have been cancelled and a new policy issued, effective as of February 1, reports Supt. Rowan C. Stutz. Prior to Feb. 1, 1956, the district dis-trict had a total insurance - in force of $1,175,070. The new program pro-gram has increased this to $1,572,-500. $1,572,-500. This represents a $397,430 increase or a step up of 33.8 per cent in the district's insurance protection. pro-tection. Average cost per year on the old program was $5,768 a year compared with the actual cost a year on the new program of $5,547, netting a saving of $221 on the new program. Further analysis of the insurance cost is listed by the superintendent as: cost, 1956, for new program, $16,643; less estimated return premium, $5,723; net cost on Feb. 1, 1956, $10,920; less cost to the school board to renew policies expiring in 1956 on old insurance program, $6,846, actual additional cost on new program for 1956, $4,074. Amortized cost over a five year period for the new insurance program pro-gram is listed as: additional cost for 1956, $4,074, less saving for next five' years at $221 a year, $1,105; net additional cost for new program to February 1, 1962, $2,969. Increased Coverage Supt. Stutz explains that the district has increased insurance coverage by $397,430 for a total additional cost of $2,969 spread over the next five years. This results re-sults in an actual rate of .747 for each $100 of insurance for the full five years. Further, the number num-ber of policies in force has been reduced from approximately 100 to six without jeopardizing any of the agents in this area. This results in a decrease in the amount of detail work caused the clerk. Policies under the new program,; in force' Feb. 1, 1956, are: 1956-57, Home Insurance Co., $314,500;. 1956-58, Northern Insurance Insur-ance Co. (Benson-Eldredge Co., $235,875; 1956-58, Utah Home Fire' Insurance Co., $78,625; 1956-59, 1956-59, Fireman's Insurance Co. (Loyalty (Loy-alty Group), $314,500; 1956-60, Utah Home Fire Insurance Co., $314,500; 1956-61, Home Insurance Co., $314,500. Advantages of the new coverage cover-age form are: On the former insurance program pro-gram the' district had the general type of coverage form for non-dwelling non-dwelling properties. This was a good coverage form, but did not provide the additional, protection as is now afforded. The district now has Standard Form Bureau Form 500, (Blanket All Property School Form) attached to its policies. poli-cies. It is felt by insurance experts ex-perts that this form is as broad as any form currently available in property insurance business. In the event one of the school buildings is damaged and the' district dis-trict incurs additional expense to carry on the educational activities for students previously housed in the damaged or destroyed building, build-ing, the new policies provide for a maximum of $5,000 payments for this additional expense, over and above the amount paid for the actual physical loss to the building. If the district should enter into a contract for new buildings or for improvements on existing buildings build-ings wherein the contracts specify that the district shall maintain insurance in-surance to protect the interest of the' contractors it is not necessary for the district to take out additional addi-tional insurance or to notify the company. This is automatically inj eluded in the existing coverage. . If, during the term of the policy, the district purchases, constructs or acquires in any way additional property, the' district has automatic automat-ic insurance for sixty days up to $50,000. This means that, it is not necessary to notify the company com-pany for sixty days after acquiring such property and the district's protection is not affected. Covers Student Property Subject to damage' by fire and extended coverage, the district has protection on personal property pro-perty belonging to students or employees em-ployees while in school buildings or anywhere within the United States while engaged in school activities. ac-tivities. The only limitation is that it covers a maximum of $500 on any one student and $1,000 on any one employee. According to the terms of the new policy, the district agreed to maintain insurance up to 90 per cent of the full value of district property. If this is not maintained, it would be possible for the district dis-trict to be penalized in the event of a loss. Small fluctuations in creases in the value of furniture the' value of buildings or small in-and in-and fixtures will, not affect insurance insur-ance coverage. If a new building is acquired with a substantial value val-ue and no increase in coverage' is obtained, the district could be penalized pen-alized by approximately six per cent in any loss payment. |
