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Guide for Selecting an Agent

PACE has elected throughout the years that individual districts are required to use an insurance agent in obtaining their coverage with PACE.

Insurance agents provide a valuable resource for the district based on their knowledge and expertise within the insurance industry.

A district's agent provides critical services for ensuring that the districts' exposures to claims and losses are properly managed through the entire insurance cycle (coverage reviews, renewal processing, policy maintenance, claims assistance and risk management advice to outline a few).

The services provided can be fairly basic to extremely complex, depending on the district size, type, budget, location, activities and users. However, regardless of how basic a district's budget and operations may be, nearly all districts face property, employee, board, and third party loss exposures for state and federal claims and an insurance agent can help to identity and mitigate those risk factors.

This document reviews factors a district should consider when choosing an insurance agent.

To begin with, an insurance agent should be trustworthy, knowledgeable and responsive. They also should be qualified and able to evaluate insurance organizations to find the right one for their client. The evaluation should consider (but isn't limited to) the organization's:

Ability to pay claims covered by the policy;
History and reputation for managing, defending and paying claims;
Qualifications of the claims adjusting staff and legal defense counsels;
Ability to consult with the district and listen to district concerns regarding claims and lawsuits; and
Policy proposed for comprehensiveness of coverage terms and conditions as well as price and deductible levels.

SAMPLE BASIC AND ENHANCED AGENTS SERVICES

The following is a listing of basic and enhanced services that an insurance agent should provide to their individual districts.

Review all district exposures.
List and identify all district real and substantial personal property, actual and replacement values.
Compare district real and substantial personal property to current coverages for gaps, and under/over coverage.
Review markets for best cost, benefit coverage options and recommend placement with reputable and satisfactorily solvent organizations.
Review coverage documents for needed content, maintain copies and deliver a copy of all coverage documents to the district.
Submit claims to adjusters.
Advise on self-insured retentions, deductibles, coverage strategies and risk transfer.
Review and be familiar with all district operations for potential loss exposures.
Review bond, crime, boiler and auxiliary exposures.
Annually report on loss histories, risk management results and insurance schedules.
Review all coverage documents, explain the coverage provided, gaps in coverage and advise on alternate strategies.
Analyze claims histories.
Attend Board and Staff Meetings as required.
Provide the district with certificates of coverage to satisfy contract requirements.

This sample services list has been created for districts to use in determining reasonable expectations of agent services relative to individual district needs. It is not intended to take the place of an insurance agent's professional judgment or a district's responsibilities in managing district risks of loss or application of Oregon laws.

AGENT DISCLOSURES

An insurance agent should provide any prospective client a written disclosure statement containing the following information:

A description of the nature of the work to be performed by the insurance agent;
The applicable occupational and educational background of the agent;
The area or areas of insurance in which the agent has particular expertise;
The fee schedule and any other expenses that the agent charges, and whether fees may be negotiated;
A list of any actual or potential conflicts of interest that the agent may have; and/or
Whether the agent will receive any commission or obtain any other compensation for services provided the client in addition to fees and other expenses paid by the client.

DISCLAIMER

The above samples of services indicate many, but not all, of a public entity's risk management issues. This document has been created for districts' and agents' use in determining a district's reasonable expectation of agent services relative to its needs and a reasonable charge for such services. It is not intended to take the place of a district's or agent's professional judgment, a district's responsibilities in managing risks of loss, or applicable Oregon laws.

If you have questions about this information, please contact the PACE Underwriting Department at 800-285-5461.