1. Insurance 101 Kimberlee Brazell – Account Executive Aon Risk Solutions
6501 Americas Parkway, Suite 650
Albuquerque, NM 87110

2. What Is Risk Management?
Identification, assessment, and prioritization of risks followed by a coordinated and economical application of resources to minimize, monitor and control the impact of unfortunate events.
What Is Insurance?
Insurance is a system by which a risk is transferred by a business or organization, which reimburses them for covered losses and provides for sharing the costs of losses. Risk transfer and risk sharing are vital elements of insurance

3. Insurance Role Risk Management Department Aon’s Role
Coordination with Aon and insurance carriers
Management of all exposures and insurance policies
Claims tracking
Oversight of safety, procedures and training
Aon’s Role
Negotiation of terms and premium with underwriters
Consultation on coverage issues
Understanding exposures
Coordination of carrier and broker services
Monitoring Carrier financial security and service performance

4. Risk Transfer Insurance Policy Primary Excess Alternative
Self Insurance
Captive
Risk Pools
Contractual Transfer
Indemnification agreements
Additional Insured

5. Property – 1st Party Coverage
Types of Insurance
Property – 1st Party Coverage
Buildings, Contents, Equipment
Builders Risk
Business Income
Work Comp – 2nd Party
Employees
Casualty – 3rd Party Coverage
Liability
Professional Liability

6. Where is Coverage Provided
NM Public Liability Fund
Insurance Policy
General Liability
Fine Arts
Workers Compensation
Aviation including Aircraft, Airports, Drones
Property up to $500,000
Property in excess of $500,000
Equipment Breakdown in excess of $250,000
Auto Liability
Mexican Auto Liability & Physical Damage
International Travel
Accident Death & Dismemberment (only for enrolled agencies)
Terrorism – Liability & Property

7. Coverage Summary – Public Fund
NMSA 1978, et seq
Tort Claims Act - Maximum Limits (Liability)
Medical and Medically-Related Expense Per Occurrence
$300,000.00
Bodily Injury Each Person (excludes medical expenses)
$400,000.00
Bodily Injury Each Occurrence (excludes medical expenses)
$750,000.00
Property Damage Per Occurrence
$200,000.00

8. Liability General Liability Medical Malpractice (including Students)
Law Enforcement Liability
Civil Rights
Community Land Grants
Each Occurrence
Up to Tort Claim Act limit
Exclusions Additional Insured or indemnification of a third party of any kind
Procurement Violations
Contractual Obligations
Employee Benefits Plans
Fines, Penalties, and Punitive Damages, Injunctive/Declaratory Relief
Abuse and Molestation
Land Use
Pollution Cleanup
Animals
ADA reasonable accommodation claims
Restitution from Officials or Employees
Wages & Salaries

9. Conditions/Exclusions
Auto Coverage
Coverage
How Limits Apply
Deductible
Conditions/Exclusions
Liability
Up to Tort Claim Act limit
State Owned
Included
Employee Owned
Excess over Employee's own personal insurance
Employee is responsible for any liability deductibles
Rented
Physical Damage
Actual Cash Value shall apply
$2,500
Only those claims exceeding the Agency's deductible ($2,500) shall be considered by RMD Verification of course and scope of employees duties at the time of the accident must be submitted Agency is responsible for deductible
Uninsured/Underinsured
N/A
Excluded
Medical Payments

10. Out of State Coverage
Foreign Jurisdiction Excess Liability
Each Occurrence
Up to $1,000,000
IF State Certificate of coverage is acceptable to Foreign Jurisdiction. If unacceptable, Government Entity must purchase individual coverage
Agency must notify RMD prior to entering into or performing any services outside of the State of NM. Coverage outside the state
IS NOT automatic and must be approved by RMD

11. Property Property All risk unless otherwise excluded
State Owned: Buildings Contents Misc. Items Property In your care, custody or control Replacement Cost
up to $550,000,000 per loss
$2,500 excess insurance for losses over $500k
Mitigation Expenses
$20,000 annual aggregate
Course of Construction
RMD must be notified prior to commencement, for any project over $500,000
$2,500 excess insurance for losses over $500k
Boiler & Machinery
up to $150,000,000 per loss
$2,500 Excess insurance for losses over $250k

12. Property Exclusions
Any Property not identified in the Annual Exposure Survey Standing Timber, water, or crops (except experimental crops) Land Dams, Tunnels, paved surfaces, rails, concrete barriers, bridges, swales, traffic signs, markers, and curbing Ocean Marine Transit Mail or other Parcels Valuable Papers, data, electronic records and software Offshore Property Contractors Equipment Any property outside the US Personal Property of Tenants, Guest or Students Perils Excluded Wear & Tear Vermin Settling, Shrinkage or expansion of foundations Delay or Loss of Markets Inventory Shortages, etc Personal Property in the open War Nuclear Reaction Defective Workmanship Equipment/tools not owned by Gov Entity Death of Animals (depending on cause) Cosmetic Damage by wind/hail

13. What else is not covered
NM Public Liability Fund
Additional Insured or Indemnity of any kind
Employee Dishonesty including Theft of money
Cyber Liability/Privacy/Data Breach
Storage Tank Liability including spill/pollution clean up cost
Aircraft/Drones

14. Working with RMD/Aon When to Notify RMD
Change of Locations including adding/deleting locations
Add/Deletion of Scheduled Assets
New Programs or Operations
When conducting operations outside the St of NM
When a contract requires additional insured status. A separate policy may have to be placed
Travel to Mexico with an auto
Travel outside of the US

15. Claims Reporting/Procedures
What is a Claim
Your responsibilities as an agency
What Information is needed to report a claim
Claims forms can be found at the following link

16. Claim In reference to insurance, a claim may be a demand by an individual or a corporation to recover, under a policy of insurance, for a loss which may come within that policy. It may also be a demand by an individual or an entity against an insured for damages covered by a policy held by the insured.
Claimant The person making a claim. Use of the word "claimant" usually denotes that the person has not yet filed a lawsuit. Upon filing a lawsuit, claimant becomes a plaintiff, but the terms are often used interchangeably.
Loss Any decrease in quantity, quality, or value of property. With reference to policies of indemnity, this term is often used as an expression of the amount of damages that may or may not be covered in whole or in part depending on the cause of the loss and the coverage afforded. In its application to liability policies, it refers to payments made on behalf of the insured
What is a Claim

17. What Information is needed to report a claim
Depending on the type of claim you are reporting, different information will be needed. Typically, the kind of information that will be asked for includes:
Your contact information
The name and contact information of any other involved parties
Your policy info
The type of loss you are reporting
The date the incident occurred
A description of the loss
A description of any injuries

18. Your Responsibilities as an Agency
Inform Risk Management immediately of all losses/incidents that occur within your department. Risk Management should report all claims to the carrier and to Aon immediately.
Take steps necessary to protect persons or property from further loss
Investigate incidents and report findings to risk management Keep accurate records
Cooperate with the RMD or insurance carrier representatives

19. Questions?