Agenda Packets - 1984/10/22 - Laserfiche WebLink

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Public Safety Forces Law enforcement and fire protection agencies serve the public in a dual role; 1) to help citizens prove,); losses and. 2) to limit the magnitude of losses when they do occur. Both roles are important factors in rice. managemeni• bu by far the more effective role is preventive, whenever and wherever citizens will allow Ihc,l Policeman and fire fighters to help them recognize risks and take necessary precautions to make sure risk, do not become losses. Insurance Carriers Insurance companies typically place restrictions in their policies, or adjust their rates. or sometimes refuse to vrrite insurance, all because of risks identified from many years of experience. Thus, older homes may not be insurable at reasonable rates: some kinds of roofing materials carry a surcharge: long distances to fire hydrants or fire stations may also cost more. Fire resistant structures cost less to insure than wood frame houses. All of these caveats are attempts on the part of insurance carriers to manage their risks so as I(; maintain a reasonably predictable loss experience for a given line of insurance. Cooperative Home Insurance Program (CHIP) CHIP conceptually makes effective use of all the factors discussed above to bring the public an insurance. program which inherently manages risk more effectively than any insurance program we know of. The occupant of the home is well -served for his vigilance and attention to the detection and correction of risks as they occur. He is rewarded first by very competitive rates and insurance coverage, and a real part in further reducing rates in his city or even his neighborhood by contributing to a low -loss environment. He can do this entirely independent of the city and the insurance company, but can become more effective by taking advantage of the city's home safety and security analysis program. The safety review provided by the city's public safely persom at can help the homeowner recognize risks het may have "bought" with the house, and whilr strict complii •e with codes in general and especially codes more recent than those in effect when the I )rne was b.,ut is not required, some easily incorporated improvements make good sense and may prove desirable to the homeowner. He will certainly want to correct serious risks to life and property to which he and his uamily may be exposed. The CHIP insurer recognizes the effectiveness of the risk management aspects of the cooperative home- owner/city program, and has adjusted rates downward tog,ther w .h additional incentives, represented by dividends to the city and additional discounts to the homeowne for added safety features in his home. More important, perhaps. is the potential for this cooperative eflirt to actually control insurance rates as reflective of good loss experience in the city. Section 12 — Cooperative Insurance Marketing Associates (CIMA CIMA, Inc., is an insurance managing general agency, which will be licensed state -by -state as necessary as CHIP is implemented nationwide. CIMA's principal reason for existence is CHIP. CIMA will be responsible for adapting CHIP to individual state and local environments, making information about CHIP available to cities, principally through municipal league. ICMA, and IAFC seminars, and assisting cities and local agents in selecting an appropriate CHIP Plan and marketing strategy. CIMA will also be responsible for the identification of an independent insurance agent in each city or JPA to market and administer the Program. In general, the designated CHIP agent will be responsible for local advertising, interacting with the city regarding the home safety and security analysis program, issuing quotations and policies, and billing and servicing clients. He may also settle most claims locally. 14