ASSOCIATION ASSURANCE GROUP
ADVANTAGES OF THE
OKLAHOMA RURAL WATER ASSOCIATION ASSURANCE GROUP:
A ► Affordable
All Risk Protection
S ► Specifically Tailored for Water System Needs
S ► Stable, Long-term Protection is our Goal
U ► Uniform Rates
R ► Reliable Service
A ► All Coverage's Under One Plan
N ► No Rural System Too Big or Too Small
C ► Credits Issued for Favorable Loss Experience
E ► Ensuring Security for the Future
TYPE OF ENTITY:
The Oklahoma Rural Water
Association Assurance Group is a risk retention pool
formed as authorized by the Governmental Tort Claims
Act. The Group is owned and operated by its
participating members. Systems desiring to become
members of the Group enter into an interlocal agreement,
as provided for in the Interlocal Cooperation Act. All
members have a voice regarding policies and procedures
of the Group.
The Interlocal
Agreement for establishing the Oklahoma Rural Water
Association Assurance Group and other legal documents
have been approved by the Attorney General of Oklahoma.
MEMBERSHIP:
Any rural water
district, non‑profit water corporation, public works
authority, or water and sewer trust formed under Title
82 for the
benefit of a city, town, county or the state is eligible
to participate in the Group, subject to individual
underwriting.
SCREENING OF APPLICANTS:
All applicants for
coverage under the assurance program must complete a
questionnaire (Analysis) to determine their loss
exposure and past loss experience. Applicants are
carefully screened to protect program participants and
assure the integrity of the Assurance Program.
ORWAAG reviews
questionnaires and analyzes the loss experience of
participants, establishes experience modifiers and
develops loss control programs.
COVERAGE:
There are significant
differences in coverage that you should consider when
purchasing insurance. A basic insurance policy covers
about one dozen perils or losses. Only those perils
described in the policy are covered. All other losses
are excluded. You can also purchase broad form
coverage. The broad form policy covers all the losses
included in the basic policy plus five or six additional
perils. Again, only losses described in the policy are
covered.
A special risk
policy, such as the Oklahoma Rural Water Association
Assurance Group's Protection Plan, is the best coverage
available. The plan covers everything that is not
specifically excluded in the plan document. A distinct
advantage is that all coverage is contained in one plan
document. You know what is covered and you avoid having
to deal with several policies with varying expiration
dates and different insurance agents. The plan is
written to comply with the Oklahoma Governmental Tort
Claims Act. Oklahoma Rural Water Association Assurance
Group provides a full line coverage program designed for
the special needs of utility systems within the state of
Oklahoma.
POLICY
PERIOD:
All policies issued
by the Oklahoma Rural Water Associations Assurance Group
have a common anniversary date. The Group's plan
document period runs from June 1st to June 1st each
year. Premium is pro‑rated to June 1st for systems who
enroll in the program during the year.
A system is not
required to secure all coverage upon enrollment in the
program. However, you must secure at least three lines
of coverage to be eligible to stay in the Program. As a
system's individual policies, such as general liability,
errors and omissions or property and auto expire, they
are converted to the Assurance Program as directed by
the system.
Systems currently enrolled
in the Program are saving 10 to 40 percent on the cost
of coverage. Those who pay about the same get
substantially more coverage for their insurance dollars.
A number of factors
affect the price of coverage. Among them are the perils
or losses covered by the policy, the maximum amount that
the insurer will pay for a covered loss, and the
deductible amount.
An insurance program
should not be selected solely on the basis of rates. To
get a fair comparison, coverage, limits and deductibles
should be evaluated.
VOTING:
Each member of the
Assurance Group shall be entitled to one vote on matters
presented for consideration of the members.
BOARD OF TRUSTEES:
The Oklahoma Rural
Water Association Assurance Group Board of Trustees is
composed of thirteen members, elected or appointed from
systems who are participants of the Assurance Program.
The Assurance Group
Board of Trustees oversees administration and operation
of the Program, sets policies and procedures, approves
claims, screens applicants, invests funds and performs
other duties as required by the Interlocal Agreement.
REINSURANCE:
The Oklahoma Rural
Water Association Assurance Group plan is fully
reinsured for general liability, directors & officers
liability, auto liability, employment related practices
liability, employee dishonesty, and property.
