RS - 112 - Unit Insurance Plan

Communications Department

April 09, 2012

(Submitted by the Insurance Committee of the New England Conference Board of Trustees)

The Insurance Committee of the New England Conference Board of Trustees moves that:

The New England Annual Conference continue in a Unit Insurance Plan to provide comprehensive property, liability, crime and worker’s compensation insurance coverage for all New England Conference local church owned/operated locations, including church sponsored Day Care programs, and for all Conference owned/operated locations.

Including the following provisions that:

1. All New England Conference churches participate.
a. Special coverages to include flood for zones other than B&C and other unique insurance risks will be purchased at additional cost to the local church where such insurance is applicable.
2. Insurance coverage will be as documented in the comprehensive policy, a copy of which is located in the Office of Administrative Services (OAS).  Copies of this policy can be obtained by request for a fee to cover printing and mailing costs. 
3. The agent of record be Fred C. Church Inc. of Lowell, MA. 
4. The renewal date will be August 1, 2012.
5. The insurance billing for  this seventeenth  year  of  the plan (August 1, 2012 -  July 31, 2013) will be at  the actual value based billing assessed to each local church and the Conference, based on building values, square footage and pastoral appointment.
6. Insurance billings for all churches that are on the Unit Insurance Plan as of August 1, 2012 will be handled as follows:
a. Churches will be billed through the office of the OAS on an annual basis.
b. The first payment will be due September 15, 2012.
c. A special discount will be given to churches that pay the total amount or enroll in the Automated Clearinghouse Account by October 15, 2012.
d. Churches that use the installment plan shall pay 20% of the annual billing by September 15, 2012 and eight monthly installments of 10% of the amount due on the fifteenth of the month (Oct - May).
e. The Conference Treasurer shall use Conference funds, as necessary, to pay the premium until funds come in from local churches.
7. Property claims payments will be issued in the name of the New England Conference and the local church, sent to the New England Conference Office of Administrative Services and will be endorsed and sent to the local church when all insurance premiums are paid to date.
8. The New England Conference Insurance Committee shall be amenable to the Conference Board of Trustees.
a. This Committee shall consist of eleven (11) members.   The chairperson or co-chairperson of the committee shall be a member of the New England Conference Board of Trustees.  The Trustees shall appoint five (5) additional members and the Council on Finance and Administration shall appoint five (5) members.  The committee members do not need to be members of either  the Board of Trustees or CF&A, with the exception of the chair or co-chair. 
b. This committee shall:
1. receive and respond to questions and concerns of local churches regarding the insurance plan. 
2. review loss trends and suggest remedies.
3. review property appraisals.
4. review the policy for any needed changes
5. provide for risk management materials/workshops for districts and/or clusters as requested.
6. annually review the premium, determine the method of distributing the premium among local churches and, if necessary, re-bid the contract.
7. annually report to the New England Annual Conference.
9. A common, comprehensive worker's compensation program be included with a renewal date of January 1, 2013.  Insurance will continue to be billed through the OAS office.
10. The following policy on the issuing of "replacement cost" insurance be in effect.
a. Any church, at their option, can apply for a waiver of blanket full replacement cost coverage, and substitution with a stated value for Functional Replacement Cost, by making such a request to the Insurance Committee of the Conference Board of Trustees.  The District Superintendent and the District Committee on Church and Building Location shall endorse the application prior to consideration by the Insurance Committee.  Application forms are available on the conference website.
b. The Superintendent and the District Committee on Church and Building Location shall evaluate the request for less than full replacement cost coverage and establishment of a stated value, on the amount of resources necessary  to invest in rebuilding, consistent with the ministry and mission possibilities and goals of the local church, cluster and district.
c. Future changes of stated values established under this policy shall be handled in the same fashion as original applications.
d. A rider will be added to the existing Conference policy listing the specific properties as being carried at a  stated  value, not full replacement coverage.  The stated value also shall be listed.  There is no co-insurance due to the lack of full replacement coverage.  Any partial loss will be paid in full.
e. Waivers of  blanket  full replacement will be effective only on the annual renewal date of the insurance plan, August 1st. Completed applications must be received by the Chairperson of the Insurance Committee by July 1st.

Comments and Questions before Annual Conference are encouraged.
Please submit your comments or questions below: