Lee's Summit R‑VII reviews MUSIC insurance renewal; district sees moderate premium uptick
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Summary
District staff presented a Missouri United School Insurance Council renewal showing a 6.4% total increase (about 4% premium increase) and explained nearly half the cost goes into escrow to fund self-insured losses; board members asked about rebid timing and escrow refunds.
Mr. Hall, the district’s insurance presenter, told the finance committee the Lee's Summit R‑VII renewal with the Missouri United School Insurance Council (MUSIC) reflects a “total increase was 6.4%,” with the premium portion closer to about 4% and an additional 2.4% attributable to payroll and property-value increases. He said about 49% of the district’s MUSIC payment goes into an escrow that covers the first $50,000 of each claim, and the district may receive refunds from that escrow after claims and reserves close.
Why it matters: insurance is a recurring, budgetary cost for the district and changes to premiums or escrow activity can affect general-fund revenue and the timing of available reimbursements.
Board discussion focused on procurement practice and budgeting. An unidentified board member asked whether the district has a regular schedule to re-evaluate MUSIC membership; Mr. Hall said board policy requires the district to rebid every six years and noted practical timing difficulties because private insurers often resist setting rates early in the rebid calendar. On escrow refunds, Mr. Hall said the district received roughly $663,000 from escrow last year and that returns typically arrive on a six‑month and 18‑month cadence so claims can close before funds are released to the district.
The committee did not record a formal vote on the renewal during the meeting; staff indicated the second, umbrella layer of liability coverage (proposed at $2 million) will come forward at the January meeting once MUSIC provides umbrella quotes.
Quotes: “We are very happy with MUSIC,” Mr. Hall said, adding, “our total increase was 6.4%,” and noting the premium increase was “around 4%.”
What’s next: staff will return in January with an umbrella coverage proposal and any formal contract or renewal documents for board consideration. No formal board action on the primary MUSIC renewal was recorded in the finance committee meeting minutes.
