RMAs

Certified Risk Management Advisors


View the Directory of CIS-Certified Risk Management Advisors 12/7/2005 CIS Risk Management Advisor Meeting Notes (Tigard) CIS Emphasizes Risk Management Advisor Role for Local Agents

The CIS Trust


Cities and counties in Oregon work together and protect community assets as member/owners of a joint self-insurance pool (the CIS Trust). The Trust is an alternative risk financing mechanism that allows members to contribute to a Loss Fund that pays claims for, and provides risk management services to, participating entities. Technically speaking, CIS Trust members don’t buy an insurance product; they associate with other member-owners who agree to jointly share resources to cover their collective losses.

CIS Members


As a membership service program of the League of Oregon Cities (LOC) and the Association of Oregon Counties (AOC), an entity’s membership in either organization enables direct access to CIS’ superior coverage, claims handling and risk management services. CIS Trust members jointly own the assets created by their pooled contributions.

Local Insurance Professionals


Most insurance companies usually don’t deal directly with those they insure; companies appoint local insurance professionals as "agents" of their insurance company and pay them for marketing and servicing the company’s products. If an entity buys a traditional insurance policy the purchase is most likely made through an "agent" located in that community.

Roles


The CIS Trust is the administrative arm of a joint self-insured pool whose members agree to cooperatively finance and manage their shared cost of risk. The Trust is not an insurance company. It is not in a position to make agency appointments and does not have a direct sales relationship with any local insurance professionals. Members can and do appoint local insurance professionals to not only periodically check the traditional insurance market and compare it with CIS coverage and services, but also to obtain additional services and assistance. There are a number of coverage, claims and risk management tasks that need to be accomplished at the local level throughout the year and local insurance professionals are ideally situated to help. CIS is supportive of those relationships and the great majority of our members can point to a fine record of conscientious service provided by their appointed representatives. Local insurance professionals who are appointed to represent a city or county are fully supported by CIS and encouraged to work with members as local risk management advisors to help avoid claims and control losses. CIS offers training programs in this area (see below).

Relationships


In 2003, changes to the Insurance code (Chapter 731 of the Oregon Revised Statutes) replaced the word "agent" with "insurance producer." Oregon Administrative Rules (OAR) have been changed in a similar fashion. The Insurance Code regulates persons engaged in selling and marketing to the insurance-buying public. The changes make clear that agents are producers for the insurance companies they represent. When your city or county appoints a local insurance professional to represent your entity, your first interest is that they are working on your behalf (a different role than that of an "agent" or "insurance producer" representing the insurance company). This distinction, together with complete disclosure regarding compensation arrangements, has become an important concern for many entities in light of current investigations around the country into conflicts of interest. These conflicts don’t arise at CIS. Since there is no third party insurance company involved, the local insurance professional you appoint has only one source of compensation, and you are it. CIS has consistently encouraged our members to work with local insurance professionals who can provide an additional level of local risk management advice and assistance. To add further value to these local relationships, CIS has developed a "Local Government Risk Management Advisor (RMA)" training program. The program assists local insurance professionals expand their service capability to meet the risk management needs of local government entities. The training emphasizes the key risk management tasks and resources that support a member’s involvement in CIS. We certify graduates, publicize their specialized knowledge and awareness about CIS Trust programs and services, and encourage our members to use a CIS certified Local Government Risk Management Advisor (RMA) as their local risk management resource. Regional training is offered throughout the year.

Compensation


In the agreement appointing a Risk Management Advisor, the city or county should address both services and compensation. CIS members may negotiate appropriate service fees and pay their representative directly, or have CIS invoice, collect and forward compensation (CIS has a default compensation plan in the event your agreement doesn’t stipulate payment arrangements). Consistent with the call for greater transparency in these arrangements, CIS identified compensation as a separate line item on our invoices for 2005-06.

Services CIS Members May Consider Assigning To Their Local Risk Management Advisor


Renewal: Completing CIS Trust application forms in consultation with entity, including revisions and correction of schedule information. Reviewing entity’s total current operations to be sure proper coverage is in place. Reviewing possible alternative limits and coverage, increased limits, or deductible options with entity. Reviewing renewal figures, coverage, and options with the entity. Confirming renewal with entity and the CIS Trust; making sure evidence of coverage is provided as needed pending receipt of CIS Trust issued materials. Assisting with breakdown of contributions by department for entity. Reviewing renewal documents for completeness and accuracy, delivering to entity and reviewing with entity any changes over prior year's program. Claims: Preparing reports of claims and losses and forwarding to claims adjusters. Monitoring status of claims with adjuster and entity. Providing other assistance as appropriate, i.e. meeting with adjuster, providing photos or other loss detail, coordinating services from contractors, etc with entity. Communicating with the entity about ways to avoid similar claims in the future. Risk Management (Loss Prevention / Control): Meeting with CIS Trust risk management staff either during or after inspections of entity facilities. Assisting as needed with follow-up, including responding to actions required and keeping the CIS Trust informed of progress. Encouraging and facilitating entity use of CIS Trust resource material and staff for training and loss prevention/control services. Providing periodic evaluation of entity’s loss patterns and trends and, if appropriate, suggesting loss control or prevention activities. Miscellaneous Functions: Notifying CIS Trust of changes and providing entity with current schedules reflecting those changes. Issuing certificates of insurance and other verifications of coverage as necessary. Assisting entity with accounting and billing issues. Coordinating and placing any needed coverage not provided through CIS Trust. Assisting with specific risk management and coverage issues, e.g. festivals and special events. Maintaining up to seven-year history of coverage, losses, schedules, changes, inspections and other relevant documents involving agency and entity. Building an Effective Risk Management Partnership