Frequently Asked Questions: SELF History
Topic
SELF History
Coverage Documents
Average District Attendance
WC Assessment Invoice Calculations
Rate
Annual SELF Underwriting Questionnaire

 

Why was SELF created?

In November 1985, a group of concerned school business officials met and formed a steering committee to determine the feasibility of establishing a statewide school excess liability pool. They wanted to combat the growing liability insurance crisis and provide public educational agencies with a stable and broad liability coverage product. If school districts were able to find commercial insurance, the cost was prohibitive, ranging from $9 per Average Daily Attendance (ADA) to $19 per ADA.

Initially run by school district business officials from 1985-1987, SELF established an office in Sacramento in April 1987. Today SELF is one of the largest and most successful, financially sound pools in the nation providing excess liability and excess workers' compensation coverage to public educational agencies.

 
What does SELF offer?
  • A pool offering two retention levels: $19 million per occurrence in coverage over the district's primary $1 million retention, or $15 million per occurrence over the district's primary $5 million retention level.

  • A group purchase program that provides our members the option of purchasing additional excess coverage up to $50 million. We provide this coverage through a number of reinsurers.

  • A pool offering $100 million for each accident for Workers' Compensation coverage and $2 million for employers liability coverage. This also includes coverage for Terrorism per the TRIA act. We offer four different retention levels: $350,000, $500,000, $750,000 and $1,000,000. This pool is reinsured at the $1 million level through ACE.

 
What is SELF's philosophy?

The goal of SELF has always been to provide public educational entities with the broadest coverage at the lowest cost while applying sound actuarial principles. Consistency and superior value have always been the focus of the organization in the Excess Liability Program.
 
Why choose SELF over insurance?

SELF provides coverage solely to California public educational agencies. We have a unique expertise in the more than 1,200 school districts, County Offices of Education, and Joint Powers Authorities that we serve. When you call us, chances are we have already handled your questions with other districts or agencies. We may be able to put you in touch with similarly situated school districts.

SELF can provide broader high-quality coverage at lower costs over the long-term than commercial insurance companies because we are member driven, not profit driven. Our rates are based on our expected actual cost, plus the cost of administration. Our administration charge is less than commercial insurance companies because we are a public entity, exempt from taxes.

Another benefit of SELF is that we are a pool. Our charge represents only what we expect to pay for claims in any given coverage year. When purchasing insurance through the commercial market, schools can never be sure of the market cycle. This year the insurance may be cheap, but the premium could climb next year.

 
Who runs SELF?

The SELF Board of Directors directs the activities of the organization. The Board is composed of 17 member elected directors plus alternates. There are two ex-officio members representing the Department of Education and the Chancellor of Community Colleges Office.

Each Board member is elected to a four year term. Half of the Board is elected every two years.

 
How is SELF regulated by government?

SELF, like other JPAs, must file an "Annual Report of Financial Transactions of Special Districts" with the State Controller's Office, along with annual audited financial statements.

Furthermore, all requirements governing the conduct of public officials apply to members of SELF's governing board. Members must file a Statement of Economic Interest with the state Fair Political Practices Commission to avoid conflicts of interest. As a public agency, SELF also is subject to open meeting laws and the noticing provisions of the Brown Act.

The California Association of Joint Powers Authorities has established a nationally recognized accreditation program. SELF has been accredited since 1988, and currently has the distinction of earning the "With Excellence" designation.

 
Is SELF financially strong?

Several factors contribute to SELF's financial strength and stability: a high degree of school district participation, and experienced reserving practices, sound investment practices, and professional claims administration.

Nearly 80 percent of all school districts (K-12) and community college districts are members of SELF.

 
Are SELF's funds safe from market changes?

By basing its financing plan on the actual experience of members, SELF is able to insulate its members from the swings of the traditional insurance cycle. Outstanding claims management experience and sound investment practices, combined with a vigilant Board of Directors, enable SELF to protect its funds against these cycles.
 
How are funds managed?

The total assets in SELF have grown to over $100 million. In 1995, SELF selected Public Financial Management, Inc., a nationwide investment firm specializing in investing public funds, to manage our funds. With their assistance we have implemented a successful investment policy.

Our continuing financial success is attributed to:

  • outstanding claims experience
  • a sound investment strategy
  • strong financial markets, and
  • a vigilant Board of Directors
 

How are claims handled?

As an excess coverage provider in both liability and workers' compensation programs, SELF sees the role of the claims administrator as overseer of claims. Our job is not to dictate to the underlying claims administrator, but to work in partnership for a successful outcome on the claim.

Excess Liability Program
SELF has hired George Hills Company to oversee our claims. George Hills was hired based on their experience, claims handling approach and work with school districts.

Excess Workers' Compensation Program
This program is managed in-house by the SELF staff, which consists of Director of Workers' Compensation Claims Stephen Schempp, Senior Claims Examiner Athena Aaron and Claims Examiner Jessica Vega.