10/9/2013 Risk Management Series: Knowing

10/9/2013
Risk Management Series:
Knowing AKPsi’s Insurance
Wednesday, October 9, 2013
6:00 p.m. Eastern
• All of you should have linked to the GoTo Webinar
meeting room through the web link provided in your
confirmation e-mail.
• The PowerPoint on the web site you are viewing right
now will be advanced remotely.
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Use #akpsichat to Tweet during today’s webinar
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• The webinar has been organized
to address the following topics:
• Review the insurance program of
Alpha Kappa Psi Fraternity and
how it affects the operations of the
Fraternity and benefits the
individual members of the
organization;
• understand the risks associated
with the activities and functions of
Alpha Kappa Psi; and
• plan and execute activities and
events in a safe manner to reduce
the risk of personal injury as well
as civil and criminal litigation.
Webinar
Overview
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Presenters
Bobbi Larsen
Education Consultant
and
Ned Kirklin
Executive Vice President
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100% dedicated to serving college student and alumni organizations
Founded in 1991 as Kirklin & Company, became a wholly owned subsidiary of Hilb Rogal &
Hobbs (HRH) in 2002, merged with Willis Group Holdings in 2008
Insurance and Risk Management programs provided to numerous college student and
alumni organizations
• 60 North-American Interfraternity Conference (NIC) fraternities
• 7 National Panhellenic Conference (NPC) sororities
• 8 National Pan-Hellenic Council (NPHC) fraternities & sororities
• 10 National Association of Latino Fraternal Organizations (NALFO) fraternities &
sororities
• Professional and co-educational fraternities
• Campus based programs and numerous local and smaller fraternal organizations
Over 1,900 fraternity properties insured through the Fraternal Property Management
Association (FPMA)
Insurance Brokerage Agency
We work for you, not the insurance company
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Objective:
• Review the insurance program of Alpha Kappa Psi
Fraternity and how it affects the operations of the
Fraternity and benefits the individual members of the
organization.
• Understand the risks associated with the activities and
functions of Alpha Kappa Psi.
• Plan and execute activities and events in a safe manner
to reduce the risk of personal injury as well as civil and
criminal litigation.
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“There are three basic
lines of defense to any
tort liability claim.”
• Loss prevention
• Loss control
• Insurance contract
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• Colleges and Universities Demand it
• Perpetuate the organization
• Let us continue for the next 100 years
• Recruit and retain alumni involvement
• Protect our undergraduate members when they are
acting for and on behalf of the fraternity
• Responsible thing to do
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General Liability Coverage
Umbrella Liability Coverage
Directors’ & Officers’ Liability
Crime Coverage
MAPP
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• Alpha Kappa Psi General Liability Policy
• $1,000,000 per occurrence /$2,000,000 annual aggregate
• $5,000 per occurrence deductible including adjustment expenses
• Limits apply on a per location basis
• Alpha Kappa Psi Umbrella Liability Policy
• Provides excess coverage over General Liability. Only comes into
play when the primary policy is exhausted.
• $3,000,000 each occurrence, $9,000,000 general aggregate
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• A collegiate chapter, when it obeys the laws of the institution,
city, county, state, and country entities and the policies of
Alpha Kappa Psi
• Collegiate chapter officers, executive board, committee
chairman and members while performing the duties of their
positions within the organization
• All volunteer advisors while performing the duties of their
positions within the organization
• Local house corporations/property management teams while
performing their duties
• Alumni chapters, clubs and associations and chapter-related
educational foundations, their officers and volunteers while
performing their duties
• Parents clubs and their volunteers when acting within the
scope of their duties
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• Any individual member, alumnus, trustee or advisor who
is performing tasks outside of their responsibility
• Any member whose illegal or intentional actions result in
death or injury to an individual or property damage
• Members’ parents or family members and guests of
chapter members
• College/University administration
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• Provides protection for directors and officers if they are
sued in conjunction with the performance of their duties
as they relate to Alpha Kappa Psi
• Coverage includes:
• Fiduciary negligence, usually a financial injury
• $1,000,000 per claim limit and policy year aggregate
• Defense cost are outside the per claim limit
• $5,000 deductible
• Coverage is afforded to the National Fraternity and
Foundation, undergraduate chapters, alumni chapters,
house corporations and educational foundations as
recognized by Alpha Kappa Psi.
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• Claims filed by members, candidates for membership and alumni
due to allegations of wrongful termination of membership or
being wrongfully excluded from the opportunity to join an
organization
• Employment related claims including the following:
• Wrongful termination
• Sexual harassment
• Discrimination
• Claims brought by members, candidates for membership or 3rd
parties against local alumni associations or chapter advisors
alleging fiduciary negligence in undertaking the roles and
responsibilities of the their leadership position
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• Embezzlement and mysterious disappearance of money
or checks
• Coverage for claims of employee theft, forgery or
alteration, computer fraud and funds transfer fraud
• $25,000 per occurrence
• $1,000 deductible
• Coverage is afforded to the national fraternity and
foundation, undergraduate chapters, alumni chapters,
house corporations and educational foundations as
recognized by Alpha Kappa Psi
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• Markel Insurance Company
• Supplemental accident and life policy for all
undergraduate members and candidates for membership
in good standing with the International Fraternity and
enrolled at the host institution where the chapter is
located
• Injury does not have to arise out of a chapter event
• Coverage is afforded 24/7/365
• Certain exclusions apply, please see policy information
• Claim must be submitted within 180 days of injury
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Limits
$25,000 Medical Expense Limit
$5,000 Accidental Death Limit
$5,000 Dismemberment Limit
$100 Policy Deductible
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Alcohol and Drugs
Hazing
Sexual Assault
Fire, Health, and Safety
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Three Basic Choices:
• Avoid the Risk
• Assume the Risk
• Manage the Risk
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Stay at home on Friday and Saturday night
Don’t drink alcohol
Stay away from the opposite sex
Never get in a car
Never cross the street
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• Party Themes:
• Drink and Drive
• Party Till You Puke
• Like McDonalds, you
proudly make the claim,
“Billions served!”
• Haze the pledges, they
deserve it!
• Operate with reckless
abandon
• We’ll start the risk
management thing next
semester
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Criminal
Prosecution
and/or
Civil
Litigation
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• Criminal Prosecution
• Prison/jail
• Fines
• Service
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• Civil Prosecution
• Money judgment against individual,
other chapter members, fraternity and
parents
• Settlement involving your parents’
homeowner’s insurance
• Bankruptcy/garnished wages
• Put your fraternity/sorority out of
business
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• Expulsion from
University/ Degree
Revoked
• Closure of chapter
and/or
fraternity/sorority
• Expulsion from
fraternity/sorority
membership
• Regret for the rest of
your life
• Participate in a new member activity that involved a
running race in high heels?
• Ask your new members to pick up an application at the
local strip club?
• Drink vinegar and hot sauce until you threw up?
• Paddle someone until they were bruised and bleeding?
• Do something you knew was wrong or dangerous or
embarrassing just to be accepted?
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• Courtney Easter was being initiated into a sorority along
with several other students
• Their hazing experience included sleep deprivation
• Driving to class early one morning, the driver fell asleep
and crashed into a traffic control box
• Courtney suffered head and chest injuries and nearly died
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• Crossing Bus C
• “Hemorrhagic shock as the result of blunt force trauma sustained
during a hazing incident”
• 13 people arrested; most charged with felony hazing resulting in
death and manslaughter
• Fact up to 15 years in prison
• Sentenced to house arrest/probation/community service
• Band director and College president lost their jobs, accrediting group
put FAMU on probation
• Band shut down for over a year and a half
"The judge had stated that your part in
Robert's death was really minimal, but you and
I know that's not true," Champion's mother
Pamela Champion told Brian Jones in court. "It
will always be there haunting you. We both
know that."
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• University of Georgia
• Kidnapped, handcuffed,
blindfolded
• Transported in the cargo
section of this SUV by
pledges.
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• Vehicle’s Driver plead guilty to felony vehicular homicide.
• 5 years probation
• 100 hours of community service
• Three other members charged with misdemeanor
involuntary manslaughter
• 1 year probation
• 100 hours of community service
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Adrian
Heideman
Pi Kappa Phi
Cal State-Chico
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• Chapter officers
• Brandon Bettar (president)
• Richard Deluna
• Samuel Dobbyn
Each served 30 days in jail due to criminal charges in death
of Adrian Heideman
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Brandon Bettar
Richard DeLuna
Samuel Dobbyn
Mark Bates
Nicholas Sutton
Theodore Bloemendall
Benjamin Hopfer
Daniel Santos
Combined settlement by members
personally liable = $500,000
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• Subjected to hazing in the days
before his death
• BAC was more than twice the legal
limit
• Family sued Sigma Alpha Epsilon and
the Pledge Trainers and Chapter
President
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• Brown Bag Night during Big Bro Week
• Pledges were given Everclear in
addition to their Brown Bag
• Carson was loaded into a car to go to
the hospital, but they turned back
when he vomited
• BAC was estimated between .39 and
.45
• 4 fraternity members were arrested;
two charged with felony hazing and
two charged with misdemeanor hazing;
all served jail time
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 Inappropriate
questionnaire for new
members to interview
active members
 Questionnaire became
public and went viral
 Chapter was closed as a
result
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• Anything you post will eventually become public
• Anything you post can and will be used against you
• If you post something epically stupid, it will go viral
Alpha Kappa Psi is a brand. The brand must be protected.
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• Factors affecting absorption
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What one is drinking
Rate of consumption
Effervescence (bubble or froth)
Amount of food in the stomach
• Factors affecting oxidation
• Time (BAC is reduced by .016% every hour)
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.02%
.04%
.06%
.08%
• .10%
• .15-.25%
• .25-.35%
• .40-.45%
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Relaxed
Relaxation continues
Cognitive judgment is impaired
Nausea can appear. Motor coordination is
impaired
Clear deterioration in cognitive judgment and
motor coordination
Black outs occur
Pass out & lose consciousness, risk of
death
Lethal dose
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Signs to look for:
• cold, clammy or blue skin
• breathing fewer than 8
times/minute
• more than 10 seconds
between breaths
• if you get no reaction to a
pinch or to calling their name
Stay with them, don’t just prop
them up on their side with a
garbage can next to them. And
if you are afraid of getting into
trouble for drinking, think of
how much more trouble it will
be if the person dies.
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• 160 pound man and a 120 pound woman
• Each has a comparable amount of food in the stomach, choose to
enjoy the same type of drink and consume their drinks at a similar
rate. Both have five drinks over a 3 hour time
• What blood alcohol content will each have?
• 160 pound man = .069 BAC
• 120 pound woman = .139 BAC
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The only choice:
Manage the risk
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• Know and follow your
fraternity/sorority and university
risk management policies
• New member education vs. pledge
training
• Keep social aspects of your chapter
in balance
• Be your brother’s/sister’s keeper
• Deal quickly and appropriately with
problem members
• Social event planning
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• Door and event
monitors (security)
• Transportation
(professional drivers)
• Alcohol Distribution
• Proper vendor selection
• Guest List/Invitations
• Make sure that everyone knows and understands the risk
management policy: pledges, active members, advisors
• Ensure that members understand how they will be held
accountable to the risk management policy
• Ensure that chapters are also held accountable if individual
members violate the risk management policy
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Special guest presenter: Brian D. Parker,
managing director of operations
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• Get immediate medical help for the injured party.
• Immediate and timely contact to:
• National Fraternity
• Insurance Company/Adjuster
• University
• Be prepared to provide the facts.
• Who, what, where, when and how?
• Witnesses
• All chapter meeting
• Spokesperson designated.
• Written statement
• Agreed upon with Admin. Office Staff
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• Lies and false statements will likely:
• Lead to the possible denial of liability insurance coverage
to members and/or the chapter
• Hinder the evaluation of the claim
• Damage the credibility of members and/or the chapter
and fraternity in regard to case
• Increase value of claim through payout and legal fees and
expenses
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Willis North America
10707 Pacific Street, Suite 200
Omaha, NE 68114
1-800-736-4327
www.WillisFraternity.com
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Terri Simmerman
Client Manager
[email protected]
1-800-736-4327 (ext. 4193)
Rohnda Roehrs
Vice President - Client Management
[email protected]
1-800-736-4327 (ext. 4185)
Mick McGill
Vice President – Client Advocacy
[email protected]
1-800-736-4327 (ext. 4199)
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Ned Kirklin
Executive Vice President
[email protected]
1-800-736-4327 (ext. 4195)
Bobbi Larsen
Education Consultant
[email protected]
1-800-736-4327 (ext. 4178)
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Additional Education
www.akpsi.org/education
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