Type D.-Frame Buildings. Board of Education and Administration Building (a former dwelling). Cafeteria, kitchen, and dining room. Storeroom for school supplies. Warehouse for furniture and building materials. It has been the policy of the Board up to date to carry 90 per cent co-insurance on the old "Type C" buildings in the belief that a fire in one of these buildings might easily result in a total loss. The other buildings have been insured at about one-half value, upon the basis that the fire-resisting construction should check the fire sufficiently to make it possible to save at least one-half of the building. From Table 1 it will be seen that fire insurance on buildings under the present plan costs Briggsville $3,100 on a one-year basis. The Board insures for three years, but the one-year figures have been used for comparisons. The discussion centers about these two questions: Should the insurance be increased, and, if so, what plan should be adopted? The point has been raised that the additional cost of insurance must result in a smaller amount of money for instructional purposes. The following possibilities have been brought into the discussion: 1. The insurance should be decreased. 2. The Board should carry its own insurance. 3. The present policy should be continued. 4. The 70 per cent co-insurance plan should be adopted for all buildings. This would necessitate a 55 per cent reduction on "Type A" buildings; 20 per cent reduction on "B" and "C" buildings, and no reduction on "D" buildings. 5. Adopt the 80 per cent co-insurance plan on all buildings, producing a 60 per cent reduction on "A"; 25 per cent reduction on "B" and "C"; and none on "D.” 6. Adopt a 90 per cent co-insurance plan on all buildings, causing a 64 per cent reduction on "Type A"; 30 per cent reduction on "B" and "C"; and none on "D." 7. Purchase a blanket policy on all buildings. This would imply carrying 90 per cent of value at 80 per cent co-insurance. Table 2 gives the comparative cost of the different plans of insurance which have been suggested. Present Plan ..$486,900.00 $3,174.98 $700.00 $400.00 $4,274.98 70 Per Cent Co Insurance 80 Per Cent Co Insurance 90 Per Cent CoInsurance 571,060.00 3,274.42 700.00 400.00 4,374.42 652,640.00 3,476.83 700.00 400.00 4,576.83 734,220.00 3,624.68 700.00 400.00 4,724.68 Blanket Policy 734,220.00 3,910.10 700.00 400.00 5,010.10 $311,230.00 Assignment 1. Write the argument which you would present in favor of one of the above-named policies for carrying insurance on the buildings of this school system. BIBLIOGRAPHY GEPHART, W. F. Principles of Insurance. Macmillan, 1917. HUEBNER, S. S. Property Insurance. Appleton, 1922. JOHNSON, A. A. Fire Insurance for School Buildings. American School Board Journal, 51:14, 66, September, 1915. MELCHIOR, W. T. Insuring Public School Property. Bureau of Publications' Teachers College, Columbia University, 1925. THOMAS, R. H. Fire Insurance in Public Schools. American School Board Journal, 57:35-37, September, 1918. For more extensive bibliography, see pp. 184 ff. of Professor Melchior's text—Insuring Public School Property. PROBLEM 106 THE FIRE INSURANCE PROBLEM IN THE PUBLIC SCHOOLS OF ATASKA, N. K. Problem: 1. To determine a procedure or policy for the purchase of insurance that is based upon the best practice in cities comparable to Ataska. 2. To determine how much insurance the school system should carry and what the form of the policy should be. 3. To adopt a record system by which, at any time, it will be possible to know how much insurance has been placed on each building and on the contents thereof, what the premium is per year, when the policy will expire, and when it was issued. The city of Ataska has a population of 100,000 people. Two methods of insuring buildings are employed in Ataska at the present time, the schedule (or blanket) insurance, and the non-schedule insurance. The non-schedule insurance is of two kinds: first, that insurance that is straight; second, that with a 75 per cent clause. The schedule insurance is all straight. Some policies have been written for one year, some for two years, some for three years, and some for five years. Premium rates differ among the policies, as is shown in the itemized analysis of the insurance now in force. The only record of the amount of insurance is the policies themselves. They are filed away in a small box kept in the safe in the office of the superintendent of schools. This safe is neither fireproof nor burglar-proof. A fire would destroy the entire insurance record except as it is distributed on the books of the various companies with whom the school property is insured. There are about 240 policies in force at the present time, with perhaps 50 to 75 different companies. |