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District reviews insurance renewal options, weighing EMC premiums against KICKS pool membership
Summary
USD 443 business official reviewed renewal options for property and casualty insurance, comparing traditional carrier EMC (noting steep premium increases) with the KICKS school cooperative pool; discussion covered per‑occurrence deductibles, coverage limits and a three‑year minimum for pool membership, and the board asked for further market checks before deciding.
The district's business official presented two paths for the district's upcoming property and casualty insurance renewal: remain with a traditional carrier (EMC) or join the Kansas Insurance Cooperative for Schools (KICKS/CICS) pool. The presentation reviewed coverage differences, deductible structures and recent premium trends.
Patrick Kratos (business official) told the board the district's current relationship with EMC is longstanding and that EMC has proposed a flat $500,000 per‑occurrence deductible for wind and hail and a $50,000 deductible for other property per occurrence. "She is actually proposing a flat $500,000 per occurrence deductible for our wind and hail," Kratos said, summarizing conversations with the carrier's representative.
Kratos described the cooperative pool option as a multi‑district arrangement in which premiums are pooled and reinsurance layers handle large events. He said KICKS membership carries a minimum three‑year commitment and distributes losses across participating districts. "We would be partnering with 173 other school districts in the state of Kansas," he said, noting the pool represents roughly 61% of Kansas school districts.
Board members questioned the per‑occurrence definition and the district's financial exposure. Kratos explained that a single storm affecting multiple district buildings could be considered one occurrence and that reinsurance would apply above the pool threshold. He gave historical premium examples from different districts to illustrate potential savings in the pool versus recent EMC increases, while cautioning that comparisons are not strictly apples‑to‑apples.
No formal decision was taken; Kratos said staff will continue to collect quotes and that any move to a pool would be revisited in the market after an initial three‑year commitment to ensure competitive pricing.
This discussion occurred between SEG 1640 and SEG 1999.
