An opinion piece on The Ada News strongly urged schools in Oklahoma to better understand how their insurance coverage works.
The author of the piece, a board member of the Oklahoma Schools Insurance Group (OSIG), underlined that school insurance has a direct impact on student learning.
“If a school is affected by fire, flood, tornado or other disaster, prompt payment means the appropriate action can be taken immediately, kids can return to school quickly and learning can resume,” wrote Lloyd Snow, superintendent for Sand Springs and board member of the OSIG. “Without immediate claim payment, normal school operations are delayed and the interim financial burden is often carried by the school district or taxpayers in the community.”
Snow raised the issue of surplus ratios in his piece.
Surplus ratios measure the relationship between an insurer’s premiums and its surplus reserve funds—essentially, the surplus ratio determines an insurer’s capacity to fully pay for claims.
Snow noted that the recommended surplus ratio by a number of insurance financial health organizations is 3:1, or even less. He pointed out that while the OSIG posts a premium-to-surplus ratio of 2:1 (equal to almost $13.5 million in available funds), the Oklahoma Schools Risk Management Trust has a worrying surplus ratio of 12:1 (equivalent to around $116,000).
He ended his piece by urging parents and other concerned parties to talk with the schools of their children and raise awareness of proper school insurance.
“We have an obligation to educate our children, and fulfilling that obligation means being educated on school insurance matters. We encourage you to talk to your school administrators about a smart and safe approach to insurance coverage.”
