Distrito Escolar del - Osceola County School District

Board chose to leave the Florida School Boards Insurance Trust (FSBIT) program and implement a standalone
program of self-insurance and insurance as recommended by the Board’s Broker, Arthur J Gallagher
Risk Management Services.
The Board has established the Osceola County School Board Group Health and Life Insurance Trust to
provide for a health, hospitalization, and life insurance program. These programs are accounted for in the
District’s Internal Service funds. The program is on a self-insured basis up to specified limits. The District
did not elect to purchase the aggregate stop-loss coverage due to the rising premium cost and the high
attachment point. The District elected to continue coverage for a specific stop-loss for any one claim of
$550,000. The Board has contracted with a professional administrator to administer the self-insurance
program, including the processing, investigating, and payment of claims. Settled claims resulting from these
risks have not exceeded commercial insurance coverage in any of the past three fiscal years. A liability in the
amount of $3,816,000 was actuarially determined to cover estimated incurred, but not reported, insurance
claims payable for the group health program at June 30, 2012.
Effective July 1, 2003, the District’s general liability and auto liability programs were established on a
self-insured basis. These programs are administered by the Trust and are accounted for in the District’s
internal service funds. The program administrator held prefunded cash deposits of $245,585 at June 30,
2012, which the District reports as cash with fiscal agent in the internal service funds. A liability of $725,224
was established based on reserves for outstanding claims at June 30, 2012, as reported by the program
administrator.
The following schedule represents the changes in claims liability for the past two fiscal years for the District's
self-insurance programs:
Fiscal Year
Current-Year
Beginning-of- Claims and Claims Balance at
Fiscal-Year Changes in Payments Fiscal
Liability Estimates Year-End
2010-11 $ 5,423,542 $ 38,125,738 $ (38,607,551) $ 4,941,729
2011-12 $ 4,941,729 $ 38,654,601 $ (39,055,106) $ 4,541,224
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