FAQs
History • Coverage • Loss Control
HISTORY
What is IPARKS?
Illinois Parks Association Risk Services (IPARKS) is a local government risk-sharing pool. IPARKS is endorsed and supported by the Illinois Association of Park & Forest Preserve Districts and Conservation Agencies (IAPD). The program exists for the primary purpose of providing park districts in the State of Illinois with an alternative to traditional insurance.
When was IPARKS formed?
The program began in January, 1991.
Why was IPARKS formed?
Historically, the property and casualty insurance industry has been
unable to provide the consistency of pricing and coverage needed by park
districts and other public entities. The national insurance crisis of the
late 1980s, in which public entities were unable to purchase insurance at
any cost, initiated the formation of group self-insurance pools. Members
belonging to a group self-insurance pool agree to share the cost of their
claims and related expenses. The transition from insurance to pooling has
been so successful that there are over 400 public entity pools currently
operating in the United States of America.
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COVERAGE
What is IPARKS?
IPARKS is a self- insurance pool initiated by the Illinois Association of Park & Forest Preserve Districts and Conservation Agencies. It is a member of the American Public Entity Excess Pool. The IPARKS Program is designed to provide IAPD-Member agencies with those coverages necessary to properly protect their assets.
What is a self-insurance pool?
A self-insurance pool is a non-for-profit association of members
joined together for the purpose of sharing losses. Unlike most self-insurance
pools, IPARKS is a non-assessable pool program.
What is an Intergovernmental Cooperative Contract?
For a member of IPARKS, the Intergovernmental Cooperative Contract
precedes the actual policy in importance. Before any IAPD Member
can receive a policy, they must sign the Intergovernmental Cooperative
Contract. A self-insurance pool is a non-for-profit association
of members agreeing to share and spread risk. The Intergovernmental
Cooperative Contract is the formal mechanism by which those entities
form the program and includes sections on how the contribution (premium)
dollars are handled, how members join and withdraw, and the roles
of the board of directors and the administrator.
What are some of IPARKS' coverage features?
There are many:
- Non-profit
- Lower overhead
- Retain investment income
- Tax-exempt
- Stable pricing
- Homogenous group
- Non-Assessable
- Endorsed and sponsored by the Illinois Association of Park & Forest Preserve Districts and Conservation Agencies
(IAPD)
- Marketed through your local independent agent
- AAA financial stability rating from Demotech, Inc.
- Simplified application
- Specialized loss control
- Interactive web site
- Appraisal service for all members real property
- General liability coverage includes special events, volunteers, athletic participants, water slide liability, skate board liability, sexual abuse and misconduct, liquor law liability
- Public Officials Errors and Omissions
- Employment practices liability
- Commercial property coverage
- Commercial Auto (Including physical damage coverage for non-owned autos)
- No annual aggregate all casualty lines
- Over one hundred forty parks and recreation participants
From a coverage standpoint, how does IPARKS compare with other
available programs?
| |
IPARKS |
COMPETING PROVIDER
|
| IAPD Program |
YES |
|
| Homogenous Grp. |
YES |
|
| Ann. Aggregate |
NO |
|
| Insured Members/ Ill.
Parks |
140+ |
|
| Sexual Abuse |
YES |
|
(If a carrier does not
address this coverage issue, be wary. Look to the definition
of occurrence and note that the coverage trigger may be an
"accident." It's very important to be
aware that sexual abuse claims are not of accidental nature.) |
| Includes Appraisal |
YES |
|
| Occurrence Form Includes
Intentional Acts |
YES |
|
| Physical Damage For
Non-Owned Vehicles |
YES |
|
| Liquor Law Liability |
YES |
|
| Defense Expense Outside
Policy Limits |
YES |
|
Injunctive Relief/Back
Wages
(Including Administrative Hearings) |
YES |
|
| Interactive Web site
Exclusively For Parks |
YES |
|
| Punitive Damages |
YES |
|
Note: The incumbent market
may not exclude punitive damage claims, however, the Illinois
Department of Insurance will not allow any insurance company
to pay claims involving punitive damage awards. IPARKS is
not an insurance company and therefore will pay for punitive
damage losses. |
How are IPARKS Member's contributions allocated?
A Member's contribution dollar is split between two funds: the Budgetary Fund and the Cumulative Reserve Fund.
The Budgetary fund is used to pay IPARKS expenses that arise during
the policy year. These expenses include claims payments, loss adjustment
expenses, fees, commissions, and the other miscellaneous expenses
of the program. The Budgetary Fund is often referred to as "the
budget."
The Cumulative Reserve Fund is an account where Members accumulate
funds over time. It is often referred to as "the bank."
In an ordinary insurance company, a premium paid is gone forever.
The Cumulative Reserve Fund allows IPARKS Members to develop a significant
source of money to utilize in the future.
How do Members leave IPARKS?
The intergovernmental cooperative contract provides the terms
and conditions for joining IPARKS and also provides for a Member
leaving the program. The intergovernmental cooperative contract
provides for three types of terminations:
If a Member voluntarily chooses to leave the program: After completing one full policy year, a Member who provides sixty
(60) days prior written notice to the administrator may leave IPARKS.
The, now former, Member would receive the vested portion of the
Cumulative Reserve Fund but must assume responsibility for its own
claims whether known or unknown.
If a Member does not pay the contribution (premium) due: The circumstances would be the same as voluntary termination if
a Member fails to pay their contribution except that the Member
would not be entitled to any Cumulative Reserve Funds.
If the board of directors terminates a Member: The Member would not receive any Cumulative Reserve Fund monies,
but responsibility for the Member's claims incurred, as well as
claims incurred but not reported, would be with IPARKS.
These provisions provide protection to Members and establish the
integrity of the IPARKS program.
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LOSS CONTROL
What is Loss Control?
Loss Control is a disciplined process to identify and analyze exposures; and to take actions to prevent, reduce, retain, or transfer various levels of risk. Loss Control is a process of preventing losses.
How is Loss Control performed?
There are three basic steps in the Loss Control process. The first is to identify risks, the second is to control risks, and the third is to evaluate the risk management program and revise when necessary.
There are several necessary pre-conditions to an effective risk management program. Some of these conditions include elected official support, employee support, effective organization, formal statement of policies, and good record keeping.
What can Loss Control do for us?
Loss Control seeks to minimize and control the chance of loss by identifying and treating risks and exposures. Everything an entity owns or does can create the risk of loss.
Courts continue to award ever increasing damages to plaintiffs who successfully sue public entities. Valuable assets (human, financial and capital) continue to be injured, lost or damaged.
Effective Loss Control by a local entity is essential, especially as insurance premiums continue to rise, local government immunity is eroded, medical health care costs escalate, the public becomes more claims conscious and litigious, agencies begin to mandate certain Loss Control measures, and competition for scarce revenues increase.
How can Loss Control help?
Loss Control can help by the following:
- To protect the organization's assets.
- To ensure a safe environment for employees and for members of the public who come into contact with these employees as services are provided
- To minimize the possible interruption of vital public services.
- To safeguard that all exposures to financial loss are discovered and treated.
- To reduce the cost of accidents, including insurance premiums, through effective safety programs and practices.
- To reduce other financial losses by using efficient reduction procedures.
Is Loss Control important to me and if so, why?
Yes, Loss Control is extremely important. The following are the benefits of Loss Control:
- Increased work productivity because of accident reduction.
- Decreased cost of accidents.
- Reduced loss, misuse, or theft of property.
- Ensuring that all possible risks are discovered and treated.
- Higher employee morale and productivity because of a safer work environment.
- Minimized cost through a sound combination of risk financing, retention, transfer, control, avoidance, prevention and reduction techniques.
What are Loss Control services?
The following are Loss Control services that we provide:
- Surveys are performed including surveys of property and liability loss exposures. As a result of the survey, a report and recommendations will be provided to you. You will have an opportunity to evaluate the survey with our response cards. We listen to you and follow-up on every card.
- Newsletters are sent to every member where Loss Control is emphasized.
- Every member receives a Loss Control Manual. Mailings on various topics are sent to each member to keep the manual updated. Bulletin alerts and special mailings are sent on new information, topics of interest and targeted at claims.
- You have access, at no cost, to more than 10,000 videos on a range of safety topics.
- Loss Control training on relevant topics to your entity is provided at a nearby location. Online Training is also available.
- An excellent web site is provided for your pool.
- Loss Control consultants are a toll-free phone call away.
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