A Message from Nat Lord

First and foremost, I want to thank you and our Board of Directors for giving me the opportunity to serve you and the students of California . SELF has been and continues to be the leader in excess liability coverage for the educational community, serving well over 4.5 million students and 1,200 educational oriented agencies.

As we come to an end to fiscal year 2007, SELF has reaffirmed its financial strength while providing depth in offering a variety of programs to its members. The SELF Excess Liability Program, relying on a unique hybrid of pooling, finite risk transfer and direct risk transfer in the form of insurance, has been successful in holding the line for the 2007-08 upcoming fiscal year with no increase in rate. We continue to offer a choice to our members as to their attachment point, either $1M or $5M retention, while offering limits of $19M or $15M respectively. We were also able to obtain a great risk transfer program for the $4M x $1M layer of the program, removing virtually all of the volatility risk to the pool and providing a confidence level in excess of 90+ percent for that portion of the program, at the 68 percent confidence level price!

SELF's Optional Excess Liability Program, which affords members the opportunity to purchase additional liability coverage at group pricing with A+ XV carriers up to $50M in limits, saw a price reduction in per ADA across the board. This helps districts and JPA members with larger exposures successfully manage those exposures in a cost efficient manner.

What does all this mean?

It demonstrates that SELF is returning as the focused leader in providing the capacity and programs needed by our members. Our mission and winning formula, “providing quality pooled program for excess coverage that benefit our students,” is plain and simple. Thanks for letting SELF be part of your team, and thanks for being part of the team known as SELF.

July 2007