Tuesday , December , 12 2017
From the Desk of the Executive Director

From the Desk of the Executive Director

As the new Executive Director of APEI, I wanted to introduce myself and report on our successful policy renewal season.

Monday, June 26, 2017/Author: Cole Cummins/Number of views (439)/Comments (0)/
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APEI Appoints Barbara Thurston as Executive Director

To Alaska Public Entity Insurance Members, Brokers, and other interested parties:

The Board of Directors of Alaska Public Entity Insurance is pleased to announce the appointment of Barbara Thurston as Executive Director effective May 1, 2017.  

 

Monday, May 1, 2017/Author: Cole Cummins/Number of views (1063)/Comments (0)/
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How to Make Great Sausage - From the Desk of the CEO, Jeff Bush

How to Make Great Sausage - From the Desk of the CEO, Jeff Bush

Otto von Bismarck is attributed with the famous quote, “Laws are like sausages, it is better not to see them being made." 

                Although the legislative process may not always be pretty, this year the legislature got it right when it passed House Bill 316, which will start the process of bringing Alaska workers’ compensation medical costs, and hence premium rates, under control.
Friday, April 18, 2014/Author: Cole Cummins/Number of views (2198)/Comments (0)/

What to Expect this Renewal

From the Desk of the CEO, Jeff Bush

Every year I am startled to realize that it’s time again to begin the annual insurance renewal dance.  APEI will be sending out renewal applications to brokers in the next couple of weeks, so you should expect to be hearing from your broker soon. 

Although it’s still too early to promise anything, here is a short version of what you might expect when you get your insurance quotes later this spring:

  • No Decrease in Property Rates.  Hurricane Sandy ruined it for the rest of us.  Sandy put the pinch on many large property insurance companies, who therefore are pressing for higher rates.  Fortunately APEI has had few major property losses in recent years, meaning that we can expect our rates to remain fairly stable.  However although rates should be stable, we expect most members will be increasing their property values, hence raising their premium.
  • Flat Liability and Auto Rates.  APEI members continue to have good loss experience for these lines of business, and consequently overall program rates should remain fairly flat.  Of course, individual premium rates will vary, because a member’s individual loss experience is the single most significant factor in determining liability or workers’ compensation premium rates.
  • Higher Medical Costs Mean Higher Workers’ Compensation Rates.  We are anticipating workers’ compensation rate increases of as much as 10% program-wide, due to ever-increasing medical costs for these claims.  We continue to push for constructive legislative reforms to address this problem, but to date no bills have been introduced.  If you have the chance, please encourage your legislators to consider changes to the workers’ compensation system to bring medical fees under control.
As always, this time of year provides excitement tinged with a hint of trepidation.  In the coming months we will be busy working with our excess and reinsurers to put together the best possible program for our members.   At the same time we will be working with your insurance brokers to gather necessary information and develop quotes as quickly and efficiently as possible.  This year, reinsurers are requiring complete and accurate underwriting information (the stuff you put in the renewal application and schedules), so please pay careful attention to detail.  Thanks.
Sunday, December 1, 2013/Author: Alaska Public Entity Insurance/Number of views (2426)/Comments (0)/
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About 15-Passenger Vans

From the Desk of the CEO, Jeff Bush

One of the things I like about my job is that new challenges are presented almost daily. Here’s an example:

Recently we received a question from a member’s broker regarding how APEI insures 15-passenger vans. In researching the broker’s question, we learned much.

We have long known that 15 passenger vans are more dangerous than other motor vehicles. Research indicates that 15 passenger vans have a 70% greater chance of rolling over when loaded with 15 people or the equivalent in people and luggage. They also have a higher rate of single vehicle accidents than any other vehicle.

However, research in response to the broker’s question revealed more. School districts should never use such vans to transport kids. Since 1974, federal law has prohibited pre-primary, primary and secondary schools from purchasing or leasing new 15-passenger vans to be used significantly to transport students unless the vans meet the federal standards for school buses. The National Highway Traffic Safety Administration (NHTSA) has determined that 11-15 passenger vans do not and cannot meet many such federal standards, including rollover protection, body joint strength, and crash protection systems.

In short, schools are prohibited by federal law from leasing or purchasing new vans designed to carry more than 10 passengers (even if some seats are removed), if the school intends to use the vehicle to transport students. They are, quite simply, unsafe. “Pre-primary, primary and secondary schools should not use 15-passenger vans for transporting school children, as they do not provide the same level of safety as school buses. It is also against federal law for schools to buy new 15-passenger vans for school transportation purposes.” NHTSA Consumer Advisory, Oct. 10, 2010. Any auto dealer selling a 10+ passenger van to a school district is subject to severe penalties.

We see many vans with seating capacities above 10 on our school district auto schedules. We strongly encourage districts to look for ways to de-commission those vehicles that transport students and replace them with other types of vehicles that meet federal safety standards.

Monday, July 1, 2013/Author: Alaska Public Entity Insurance/Number of views (2592)/Comments (0)/
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Alaska Public Entity Insurance

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Phone: 907-523-9400

Toll-Free: 877-586-2734

Fax: 907-586-2008