By Richard J. Sherman, F130225
Chairman, Risk Management Committee
FMCA president Jeff Jefcoat, F118344, has said on many occasions that if a person wants to learn the operation of FMCA, he or she should be a member of the Risk Management Committee. When Jeff was the national vice president from the Eastern Area, he spent three years on this committee and still attends all of our meetings. Apparently his experience has served him well.
The members of the 2002-2003 Risk Management Committee are Judy Allen, F193946; Leonard Davis, F158928; Bob Ellett, F5820; and me.
This committee originally was called the Insurance Committee. A few years ago its name was changed to the Insurance and Risk Management Committee. With the passage of the new FMCA Bylaws a few months ago, it became the Risk Management Committee. The new name better describes our function, because insurance is only one way in which we handle FMCA’s risks.
We deal with all aspects of FMCA, from membership to chapter rallies to international conventions. We try to leave no stone unturned and to fully evaluate the risk involved in our organization’s activities.
Our areas of responsibility are member benefits, FMCA’s property and casualty program, and employee benefits. I will address each of these separately.
The Risk Management Committee oversees three member benefits that FMCA provides at no cost to members: the Accidental Death and Dismemberment plan, the MEDEX emergency medical evacuation plan, and the Deductible and Coinsurance Reimbursement Insurance Plan.
Accidental Death and Dismemberment coverage provides a payment up to $10,000 for death occurring by accident while traveling in a motorhome, and varying amounts of payment for death or dismemberment caused by other accidents. Members may also supplement this coverage at their own expense.
No benefit has stimulated as much conversation as the MEDEX medical assistance program. Travel can be for business or pleasure at a distance of 100 miles or more from your primary residence, and coverage is provided while traveling within the continental United States, Canada, or Mexico.
MEDEX Plus provides coverage for:
(1) emergency medical air or ground evacuation if adequate medical facilities are not available in the member’s location;
(2) the return of the mortal remains of a member in the event of his or her death;
(3) transportation home for the member’s children and grandchildren left unattended as the result of a member’s accident, illness, or death;
(4) the return of the member’s drivable motorhome and/or automobile to his or her residence;
(5) transportation of the member to the member’s point of origin, or permanent residence, following the emergency evacuation and stabilization;
(6) the transportation of a family member to visit the FMCA member who was traveling alone and is confined to a hospital for seven days or more.
MEDEX must approve and coordinate all services, so they must be called in advance.
The Deductible and Coinsurance Reimbursement Insurance Plan reimburses deductible and coinsurance expenses that are not covered by the FMCA member’s own insurance. The member must have his or her own medical insurance. The accident or illness must occur more than 100 miles from the member’s home. In the case of illness, it must be sudden and unforeseen. There is a $100 deductible per occurrence and a $1,000 limit per year, but members may purchase additional coverage if they wish. The claim must be made within 180 days of the occurrence. Even if some bills are not yet available, the claim form must be submitted within 180 days. The claim form appears on page 211 of the January 2003 issue of FMC magazine and at www.fmca.com/membership/forms (member login required). Claim forms also may be obtained by calling FMCA at (800) 543-3622. To our knowledge, no other organization or individual has this coverage.
FMCA’s property and casualty program
The property and casualty insurance purchase this year was the most difficult and expensive that we have had. The property and casualty insurance marketplace turned very hard this year because of investment losses and stricter underwriting. Overall, FMCA’s increase was 31 percent this year alone. However, by industry standards, this was one of the smallest increases.
What is covered? Under the property coverage, all property owned by FMCA. Property rented in the name of FMCA and used entirely for the business of FMCA also is covered. For example, the policy covers FMCA at international convention sites. Property owned by individual FMCA members and chapters is not covered. We also have coverage for property in transit and specialized equipment.
Our general liability policies provide coverage for bodily injury, property damage, and personal injury arising out of an accident. The insureds under this policy include FMCA, area associations, chapters, members, and employees, but only as they carry out FMCA business. This coverage is for claims brought by third parties.
This policy also provides coverage for fairgrounds, parks, campgrounds, etc. that provide rally sites and request to be an “additional insured” under FMCA’s policy. This is done via a certificate of insurance issued by the Chapter Services Department at the FMCA national office in Cincinnati.
Our directors and officers liability policies cover directors and officers of FMCA, chapters, areas, and FMCA committees. It covers these insureds for wrongful acts, which are any actual or alleged error, misstatement, misleading statement, act or omission, and neglect of duty by FMCA or individual insureds in the performance of their duties. Fraudulent and criminal acts by any of the insureds are not covered.
Under our publishers liability policy is coverage for Family Motor Coaching magazine, convention daily newsletters, chapter newsletters and Web sites, area rally daily newsletters, and newsletters and Web sites published by area associations. Coverage includes defamation, disparagement, harm to reputation, libel, slander, and advertising liability.
Numerous other miscellaneous policies are in force as well so that we have protection for our risks.
If you have attended international conventions and/or area rallies, you may have noticed a stepped-up safety effort, with our safety teams working 24 hours a day during these events. This is one of the ways we are combating claims to keep our costs down. Risk Management Committee member Leonard Davis is our safety officer, and he has done an outstanding job heading up this group.
If you have any questions about what is covered, please call the national office or contact any of the members of the Risk Management Committee.
FMCA, like all other employers, has been faced with the rising costs of employee benefits, with the major expense being medical coverage. Fortunately, because our staff is generally healthy, we have been able to stay below increases that similar employers face.
Each September when the committee meets, our insurance broker brings to us several medical coverage proposals. We review these, relying heavily on the input offered by Lana Makin, FMCA’s Director of Administrative Services, who relays the staff’s observations and opinions about the current provider. Each proposal has several factors to consider, such as employee deductibles, limits, and limitations. We have been fortunate in that we have not needed to change our health insurance provider for some time.
We decided to self-insure dental coverage and short-term disability coverage over the past two years in two different ways. We determined that our claims were somewhat predictable and less than what we were paying in premiums.
The dental coverage claims were very predictable, and FMCA pays these claims after the employee deductible has been satisfied. The amount payable per employee per year was maintained. We do have an administrator for these claims.
For short-term disability, we decided to take the lowest limit available ($100 per week) and self-insure the amount above that. This still provided us with insurer administration, rather than in-house administration. We also shortened the waiting period required for long-term disability to begin.
The employees do have other benefits, such as a 401(k) plan, life insurance, and some optional coverages. Each employee also is eligible for coverage under the MEDEX Plus emergency medical evacuation plan and the deductible and coinsurance reimbursement program that are provided to FMCA members at no cost, both of which stipulate that the covered person must be 100 miles or more from home to receive benefits.
If you have any questions about your insurance benefits, contact the Membership Department at the FMCA national office.