Insurance 101 Kimberlee Brazell Account Executive Aon Risk

Insurance 101 Kimberlee Brazell – Account Executive Aon Risk Solutions 6501 Americas Parkway, Suite 650 Albuquerque, NM 87110 505 -889 -6700 Kimberlee. brazell@aon. com

What Is Risk Management? Identification, assessment, and prioritization of risks followed by a coordinated and economical application of resources to minimize, monitor and control the impact of unfortunate events. What Is Insurance? Insurance is a system by which a risk is transferred by a business or organization, which reimburses them for covered losses and provides for sharing the costs of losses. Risk transfer and risk sharing are vital elements of insurance

Insurance Role Risk Management Department • Coordination with Aon and insurance carriers • Management of all exposures and insurance policies • Claims tracking • Oversight of safety, procedures and training Aon’s Role • Negotiation of terms and premium with underwriters • Consultation on coverage issues • Understanding exposures • Coordination of carrier and broker services • Monitoring Carrier financial security and service performance

Risk Transfer Insurance Policy • Primary • Excess Alternative • Self Insurance • Captive • Risk Pools Contractual Transfer • Indemnification agreements • Additional Insured

Types of Insurance Property – 1 st Party Coverage • Buildings, Contents, Equipment • Builders Risk • Business Income Work Comp – 2 nd Party • Employees Casualty – 3 rd Party Coverage • Liability • Professional Liability

Where is Coverage Provided NM Public Liability Fund Insurance Policy General Liability Fine Arts Workers Compensation Aviation including Aircraft, Airports, Drones Property up to $500, 000 Property in excess of $500, 000 Equipment Breakdown in excess of $250, 000 Auto Liability Mexican Auto Liability & Physical Damage International Travel Accident Death & Dismemberment (only for enrolled agencies) Terrorism – Liability & Property

Coverage Summary – Public Fund NMSA 1978, 41 -14 -1 et seq Tort Claims Act - Maximum Limits (Liability) Medical and Medically-Related Expense Per Occurrence Bodily Injury Each Person (excludes medical expenses) Bodily Injury Each Occurrence (excludes medical expenses) Property Damage Per Occurrence $300, 000. 00 $400, 000. 00 $750, 000. 00 $200, 000. 00

Liability General Liability Medical Malpractice (including Students) Law Enforcement Liability Each Occurrence Up to Tort Claim Act limit Exclusions Additional Insured or indemnification of a third party of any kind Procurement Violations Contractual Obligations Civil Rights Employee Benefits Plans Community Land Grants Fines, Penalties, and Punitive Damages, Injunctive/Declaratory Relief Abuse and Molestation Land Use Pollution Cleanup Animals ADA reasonable accommodation claims Restitution from Officials or Employees Wages & Salaries

Auto Coverage How Limits Apply Liability State Owned Employee Owned Up to Tort Claim Act limit Included Excess over Employee's own personal insurance Rented Physical Damage State Owned Employee Owned Up to Tort Claim Act limit Included Excess over Employee's own personal insurance Deductible Conditions/Exclusions Employee is responsible for any liability deductibles Actual Cash Value shall apply $2, 500 Only those claims exceeding the Agency's deductible ($2, 500) shall be considered by RMD Verification of course and scope of employees duties at the time of the accident must be submitted Agency is responsible for deductible Rented Uninsured/Underinsured N/A Medical Payments N/A $2, 500 Excluded

Out of State Coverage Foreign Jurisdiction Each Excess Liability Occurrence Up to $1, 000 IF State Certificate of coverage is acceptable to Foreign Jurisdiction. If unacceptable, Government Entity must purchase individual coverage Agency must notify RMD prior to entering into or performing any services outside of the State of NM. Coverage outside the state IS NOT automatic and must be approved by RMD

Property State Owned: All risk unless otherwise Buildings excluded Contents Misc. Items Property In your care, custody or control Replacement Cost Mitigation Expenses Course of Construction Boiler & Machinery up to $550, 000 per loss $2, 500 excess insurance for losses over $500 k $20, 000 annual aggregate RMD must be notified prior to $2, 500 commencement, for any excess insurance for project over $500, 000 losses over $500 k up to $150, 000 per loss $2, 500 Excess insurance for losses over $250 k

Property Exclusions Any Property not identified in the Annual Exposure Survey Standing Timber, water, or crops (except experimental crops) Land Dams, Tunnels, paved surfaces, rails, concrete barriers, bridges, swales, traffic signs, markers, and curbing Ocean Marine Transit Mail or other Parcels Valuable Papers, data, electronic records and software Offshore Property Contractors Equipment Any property outside the US Personal Property of Tenants, Guest or Students Perils Excluded Wear & Tear Vermin Settling, Shrinkage or expansion of foundations Delay or Loss of Markets Inventory Shortages, etc Personal Property in the open War Nuclear Reaction Defective Workmanship Equipment/tools not owned by Gov Entity Death of Animals (depending on cause) Cosmetic Damage by wind/hail

What else is not covered NM Public Liability Fund Additional Insured or Indemnity of any kind Employee Dishonesty including Theft of money Cyber Liability/Privacy/Data Breach Storage Tank Liability including spill/pollution clean up cost Aircraft/Drones

Working with RMD/Aon When to Notify RMD • Change of Locations including adding/deleting locations • Add/Deletion of Scheduled Assets • New Programs or Operations • When conducting operations outside the St of NM • When a contract requires additional insured status. A separate policy may have to be placed • Travel to Mexico with an auto • Travel outside of the US

Claims Reporting/Procedures • What is a Claim • Your responsibilities as an agency • What Information is needed to report a claim Claims forms can be found at the following link http: //www. generalservices. state. nm. us/riskmanagement/Resources_1. aspx

What is a Claim • Claim In reference to insurance, a claim may be a demand by an individual or a corporation to recover, under a policy of insurance, for a loss which may come within that policy. It may also be a demand by an individual or an entity against an insured for damages covered by a policy held by the insured. • Claimant The person making a claim. Use of the word "claimant" usually denotes that the person has not yet filed a lawsuit. Upon filing a lawsuit, claimant becomes a plaintiff, but the terms are often used interchangeably. • Loss Any decrease in quantity, quality, or value of property. With reference to policies of indemnity, this term is often used as an expression of the amount of damages that may or may not be covered in whole or in part depending on the cause of the loss and the coverage afforded. In its application to liability policies, it refers to payments made on behalf of the insured

What Information is needed to report a claim • Depending on the type of claim you are reporting, different information will be needed. Typically, the kind of information that will be asked for includes: • Your contact information • The name and contact information of any other involved parties • Your policy info • The type of loss you are reporting • The date the incident occurred • A description of the loss • A description of any injuries

Your Responsibilities as an Agency • Inform Risk Management immediately of all losses/incidents that occur within your department. Risk Management should report all claims to the carrier and to Aon immediately. • Take steps necessary to protect persons or property from further loss • Investigate incidents and report findings to risk management Keep accurate records • Cooperate with the RMD or insurance carrier representatives

Questions?