cases the programs do not involve State credit. Operating expense funds are generally appropriated, by legislative action, from premium payment incomes. Most of the States have or have had some reinsurance authorization. This authorization is used in different ways in the various States. Fund reserves are essential parts of each State operated program but the amounts and the manner of investing are different for each State. Some States use State or regional rating bureau rating; other States have staff members do their own rating. In most cases there seems to be a tendency to base rates on a percentage of bureau rates. If rates are reduced, a school may not always share in the reduction until it has been fund-covered for a period of years. Section IV A FORWARD LOOK IN SCHOOL INSURANCE S PREVIOUSLY INDICATED, this study is historical and analytical and is limited primarily to reports of State experiences or relationships in school property insurance, with section II limited to fire insurance experiences. The data given in this one area of school insurance provide some indication of the scope and complexity of school insurance programs. Few school administrators have had opportunity or have taken the time to make extensive studies in school insurance. The total school insurance programs are increasing in scope and costs, and the available studies are limited in coverage. There is now need for a series of studies on school insurance in various areas, some of which are school insurance administration, pupil casualty-accident vs. liability insurance, workmen's compensation, and the relationship of protective and preventive programs to rate and cost reduction. School insurance is an important factor in school administration and the school officials in charge need to understand the essential elements of an adequate, safe, economical school insurance program. In numerous cases insurance surveys and program reorganization have aided in simplifying the local programs, in improving coverage balance, and in effecting immediate or ultimate economies. Many school systems find it desirable to recheck their total insurance programs frequently. State departments of education might render a valuable service to the schools of the States through the services of a trained consultant on insurance problems. A consultant of this type might aid in developing programs of fire protection and of prevention in other areas which would materially improve the school insurance programs, and perhaps reduce costs, for the schools in the State. PS-38-56 U. S. GOVERNMENT PRINTING OFFICE: 1956 O-385054 |