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Clear Creek Amana board approves participation in storm protection risk pool
Summary
The school board voted to join a new storm-protection/risk pool that requires a yearly contribution (examples in the presentation showed a $132,000 annual deposit) and could reduce the district’s overall deductible-buyback costs, district counsel and an insurance agent said during the meeting.
The Clear Creek Amana Community School District board approved a resolution to participate in a newly formed storm protection risk pool designed for Iowa school districts, following a presentation from Craig Schrader of Reliant Insurance.
The program, organized by a managing agency (Jester Insurance) with EMC as the insurance carrier, pools member contributions to create a loss fund that is intended to reduce the need for costly deductible buybacks from commercial carriers. "The goal is to build a pool of $10,000,000 and an insurance fund on top of that," Craig Schrader told the board, explaining that example contributions in the presentation were in the $132,000-per-year range and could generate savings compared with previous buyback premiums.
Schrader said the pool model allows districts to retain control of contributions and the potential for unused funds to earn interest and reduce future costs; however he cautioned that if underlying carrier deductibles rise, the pool would need to grow as well.
Board members asked about the term and whether the contribution was a one-time payment or an annual assessment; the presenter confirmed it is an annual contribution and described plans for prorated entry and exit once the fund is established. The resolution references Iowa Code provisions for intergovernmental agreements (Chapter 28E) and the risk-pool structure discussed during the presentation.
The board moved and approved the resolution after discussion.
