Kansas Insurance Department
2012 Firefighter Relief
Act Seminar
Agenda
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Contact Information
FRA Program Totals
K.A.R. 40-10-16
Revised FRA Handbook
Kansas Open Records Act
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Purpose of KORA
Records Subject to KORA
Public Agencies Subject to KORA
Right of Public to Inspect
Procedures for Obtaining Access
Records that may be Closed
• Insurance
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Term Life Insurance
Permanent Life Insurance
My Contact Information
John Boyd jboyd@ksinsurance.org
FRA Administrator
Phone # (785) 296-7831
Kansas Insurance Department
FAX # (785) 291-3673
420 SW 9th St
Topeka, Ks 66612
Website:
www.ksinsurance.org
FRA Training Schedule for CY2012
July 7, 2012
Fort Riley
KSFFA Fire
School
April 14, 2012 St
Francis KSFFA
Fire School
Nov 3, 2012
Larned KSFFA
Fire School
April 27-30, 2012
McPherson
KSFFA Annual
Conference
Mar 15-18, 2012
FRA Information
Booth SCAFFA
Jan 21, 2012 FRA
Annual Seminar
May 31-June 3,
2012 Labette
Fire School
CY 2011 Firefighter LODD (USA)
total 81
• Classification (1/1/20-11 to 11/30/2011):
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•
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47 Volunteer
24 Career
3 Wildland Part-Time
1 Paid-on-Call
• Type of Duty (1/1/20-11 to 11/30/2011) :
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•
•
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•
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22 On-Scene Fire
19 After
11 Other On-Duty
9 Responding
7 Training
5 On-Scene Non-Fire
2 Returning
Cause of Fatal Injury (1/1/20-11 to 11/30/2011)
#
(44)
(11)
(5)
(4)
(4)
(2)
(2)
(2)
(1)
Cause
Stress/Overexertion
Caught/Trapped
Struck by
Vehicle Collision
Other
Fall
Collapse
Unknown
Out of Air
Nature of Fatal Injury (1/1/20-11 to 11/30/2011)
(43)
(11)
(6)
(6)
(5)
(2)
(1)
(1)
Heart Attack
Trauma
Asphyxiation
Burns
Other
Unknown
Crushed
Heat Exhaustion
Age of Firefighter (1/1/20-11 to 11/30/2011)
#
Age
(2) - Under 21
(7) - 21 to 25
(2) - 26 to 30
(12) - 31 to 40
(23) - 41 to 50
(24) - 51 to 60
(5) - 61 and Over
CY2011 Kansas Statistics Jan 1 to July 1,
2011 (provisional)
• Civilian Fire Related Deaths: 13
• Fire Fighter Deaths: 1
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•
•
•
Total Emergency Responses 77,033
Fire Calls 7,853
EMS 47,402
Non Fire/EMS 21,778
Relief Fund Totals
$
CY2010 we
received a
2.3%
increase in
Premium
Tax
CY2010 Distribution
$100,000
KSFFA
Death
Benefit Policy
$580,00 Base
Distribution
to all FRAs
$315,699
KSFFA
$10,523,332
FRA
Premium
Tax CY2010
Kansas Firefighter Relief Act
Three percent of the
total collections are
paid to the Kansas
State Firefighters
Association for fire
prevention & for fire
extinguishment
education and study
• In CY2010 $305,516.
Kansas Firefighter Relief Act
$100,000 is paid to the
Kansas State Firefighters
Association to be set aside
as a death benefit fund,
$45,000 benefit for
Firefighter LODD
(currently)
Kansas Firefighter Relief Act
$1000 base paid
to each
Firefighter Relief
Association
• This is the
minimum amount
that a FRA will
receive
• $580,000
2010 FRA Receipts
KID Check
•$9.5 Million
Insurance
Proceeds
•$2.6 Million
Annuities
Pensions
•$4.5 Million
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Bank Interest
•$320 Thousand
2010
2009
CY2010 FRA Expenditures
Relief to
Firefighters
•$2.8 Million
Insurance
Premiums
•$8.5 Million
Annuities
Pensions
•$1.5 Million
Other
•$1.1 Million
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
2009
2010
$14,229,781
CY2010 Assets/Investments
Bank
Accounts
$25,000,000
$20,000,000
$15,000,000
Annuities
Pensions
$10,000,000
$5,000,000
$0
$28.5 Million
$25 Million
• Interest
$320 Thousand
• Interest/Gain
$4.5 Million
2010
$61,654,971
Kansas FRA Fund Summary
Description
2009
2010
Receipts
$18,886,801
$20,160,989
Expenditures
$13,858,552
$14,229,815
Assets
$57,627,110
$61,654,976
Overall Net
Increase
$4,027,866
CY2011 Financial Statement Submission
Results
2011
600
543
500
400
300
200
100
37
71
65
0
FRAs Reporting
FRAs Not
Reporting
Manual
submissions
FRAs with Errors
FRA Online Program
• Dwight FRA has
submitted their financial
statement FIRST for 3
consecutive years!
• Jeff Brown
FRA Corporation Status
• You can check your entity’s status on the Kansas
Secretary of State’s website http://www.kssos.org/
Business Filing Center
• You can perform the search using the following criteria:
By business entity name
By business entity ID number (not the FEIN)
By a keyword
By a resident agent's full name (FRA Board of Director
Name)
By a resident agent's name; keyword (FRA Board of Director
Name)
FRA Corporation Status
• Entities that have fallen from “active in good
standing” or “registered” with the Secretary
of State, by failing to renew their articles of
incorporation:
• are not allowed to renew on-line,
• must instead complete a paper renewal form,
available on the website at:
http://www.kssos.org/forms/business_servi
ces/RN.pdf .
• There is a reinstatement fee of $20 for not
for profit domestic corporations.
New K.A.R. 40-10-16
(pg 43 handbook)
• The annual redetermination allocation shall be calculated using
a formula based on the population and the assessed tangible
property valuation of the area served by the association that
requests redetermination in relation to the population and the
assessed tangible property valuation of the state.
• The assessed tangible property valuation of the area served by
the association shall be as reported by the Kansas Department
of Revenue’s Statistical Report of Property Assessment and
Taxation for the year during which redetermination is requested.
• The populations of the area served by the association and
population totals certified by the Kansas secretary of State for
the year during which redetermination is requested.
K.A.R. 40-10-16
The allocation formula prescribed by
this regulation shall also be used when
distributions are determined for:
• New Associations.
• Merged Associations
• Disqualified Associations that are
reinstated
Redetermination Calculation
Population
600
$1.66
Amount
$996
$2,000,000
Valuation
.00015
Amount
$300
Now add the $1,000 base
To this amount
25
$2,296
Distribution
$1,296
2012 Revised FRA Handbook
• Handbook has been updated and combined
to include the “best” of the Best Practices
Guidebook.
• The revised version is more condensed and
user friendly.
• Broken down in to 4 sections
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FRA Handbook
FRA Suggested Best Practices
KSAs and KARs
Sample Bylaws/Forms
Kansas Open
Records Act
Lisa Mendoza, Assistant Attorney General
Legal Opinions and Government Counsel Division
Office of Attorney General Derek Schmidt
Introduction to the
Kansas Open Records Act (KORA)
Lisa Mendoza
Assistant Attorney General
LOGIC Division
Kansas Open Records Act
KORA enacted in 1984
• KORA provides the procedure for the public to
view and make copies of governmental records.
• KORA also defines and categorizes records.
Kansas Open Records Act
Purpose and construction
It is the public policy of Kansas that “public
records shall be open for inspection by any
person unless otherwise provided, and this act
shall be liberally construed and applied to
promote such policy.”
Kansas Open Records Act
Who is subject to KORA?
Public agencies include the state, political or
taxing subdivisions or any office or officer,
agency or instrumentality, that receives or
expends public funds.
Kansas Open Records Act
Who is subject to KORA?
Instrumentality is not defined in KORA
The two types most likely to be subject to KORA:
1. Those created by a covered entity
2. Those that have become an extension of
a covered entity
Kansas Open Records Act
Who is not subject to KORA?
• Private companies, even if they receive
public funds in exchange for goods and
services
• Judges and courts
• An individual legislator or member of a
governing body
• Private individuals
Kansas Open Records Act
Applying KORA to a request
KORA is, in part, a procedural statute and might
best be illustrated by reviewing the sequence of
actions that should take place once a record
request has been made.
Kansas Open Records Act
Before a request is made:
• The public agency must appoint a freedom of
information officer to assist with KORA requests
• The public agency must have a brochure available
outlining the KORA process and the requester’s
rights to records
• The name and title of the records custodian, fees
and office hours should be available for anyone
making a request
• All requests must be treated the same
Kansas Open Records Act
Who may make a request?
• Any person may make a request
• The person need not be a resident
• The person need not provide a reason for their
request
Kansas Open Records Act
Form of the request
The public agency:
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May require the request to be in writing
May require requester’s name and address only
May require proof of identification
May require written certification that the requester
will not use names and addresses obtained to
solicit sales or services
Kansas Open Records Act
Rights of the requester
• Unless closed by law, the public has the right to review
all public records
• Anyone may make an abstract or request copies of a
record
• If copies cannot be made where the record is located,
arrangements must be made to allow copying
• If portions of a record are closed, the remainder must be
made available to the requester
Kansas Open Records Act
Limitations on the requester’s rights
• A requester may not remove a public record without the
written consent of the custodian
• An agency is not required to make copies of radio or
recording tapes or discs, video tapes or films, pictures,
slides, graphics, illustrations unless shown at a public
meeting. Copyrighted materials may not be reproduced
without the permission from the copyright holder. These
items must be available for viewing or listening.
Kansas Open Records Act
Responding to the request
• The request must be “acted upon” as soon as
possible, but no later than the end of the third
business day following date request is received.
• The three acceptable responses:
1. The record is provided (in the form requested if
possible).
2. The request is under review and the records, if
permitted, will follow.
3. The request is denied with a detailed explanation for
the denial.
Kansas Open Records Act
Allowable fees and charges
• Agencies may only recover their actual costs to
provide the requested records
• These costs include staff time to retrieve, review
and redact information from a record
• Fees may be estimated and collected before the
records are provided
Kansas Open Records Act
Public records defined
• Public records are defined as “any recorded
information, regardless of form or characteristics,
which is made, maintained or kept by or is in the
possession of any public agency…”
• This includes written records and photographs,
computer data and email
Kansas Open Records Act
Excluded records
• Private records owned by a private person or
entity and not related to functions, activities,
programs or operations funded by public funds
• Records that do not exist at the time of the
request
• Records that must be created in order to fulfill a
request
Kansas Open Records Act
Categorizing records
All public records may be categorized as follows:
• Records that are open without restriction
• Records that may be closed at the discretion of
the official record custodian
• Records that are closed by statute or other rule
Kansas Open Records Act
Records open without restriction
• The preliminary assumption is that a record falls
within this category
• Prior to releasing a record, it is important to
determine if it falls within another category
Kansas Open Records Act
Records that are discretionally closed
There are many types of records that may be closed.
The three policy reasons records may be closed may
be classified as follows:
1. Personal privacy
2. Security
3. Internal communications while policies are
developed or administrative procedures are
underway
Kansas Open Records Act
Closure based upon personal privacy
• A public employee’s personnel file
• Except may not close:
• Names of employees
• Positions/Titles
• Salaries or actual employment contracts, including
employment related contracts or agreements
• Length of service
Kansas Open Records Act
Closure based upon personal privacy
• Medical and treatment records
• Student records
• Records containing personal information that,
if released, would “constitute a clearly
unwarranted invasion of personal privacy”
Kansas Open Records Act
Closure based upon security
• Records that would reveal the identity of an undercover
agent or informant
• Criminal investigation records
• Records concerning emergency or security information
or procedures
• Records that would reveal the location of a safe house or
shelter for abused persons or the name, address,
location or other contact information of alleged victims of
stalking, domestic violence or sexual assault
Kansas Open Records Act
Closure based upon internal
communications or procedures
• Notes, preliminary drafts, research data in the process of
analysis, unfunded grant proposals, memoranda,
recommendations or other records in which opinions are
expressed or policies or actions are proposed
• EXCEPT if any of the above are identified or cited at a
public meeting or listed on the agenda
• Attorney work product
Kansas Open Records Act
Closure based upon internal
communications or procedures
• Records that are privileged under the rules of evidence, unless the
holder of privilege consents to the disclosure
• Records of an investigation conducted under civil litigation or
administrative adjudication, if disclosure interferes with the
procedure
• Correspondence between a public agency and a private individual,
unless intended to give notice of an agency action, policy or
determination
• Engineering estimates, evaluations and appraisals prior to property
acquisition, bid specifications and bids
Kansas Open Records Act
Records that are mandatorily closed
There are nearly 300 types of records that are
required to be closed by statute and not listed in
KORA. KORA will look to other statutes first.
The records custodian must be familiar with
those records and what must be separated into
the open and closed portions of a record.
Kansas Open Records Act
Enforcement
• KORA is a civil statute – not criminal
• A citizen, district/county attorney, or the attorney
general may bring an action in the district court
where the records are located
• AG or district/county attorney may issue
investigative subpoenas
Kansas Open Records Act
Enforcement
• Case is filed in the county where the
records are located
• Such actions are to be given precedence
by the court
Kansas Open Records Act
Penalties for violations
• Fines – up to $500 if the action is brought by the
attorney general or local county or district attorney
for knowing violation or intentional failure to furnish
information as required by KORA
• Reasonable attorney’s fees shall be granted if the
agency’s denial is determined to be without a good
faith reason
• Reasonable attorney’s fees shall be granted if the
requester’s action was not in good faith
Kansas Open Records Act
Questions?
Insurance
Diane Haverkamp
Life Division
Kansas Insurance Department
Insurance Policy Choices
FRAs can purchase these types of
Insurance:
• Group Term life Insurance
• Group Permanent life Insurance
• Individual Permanent Life
Insurance
Term Life Insurance
• Term life insurance is the easiest life insurance to
understand and is low cost life insurance: It
provides death benefit protection without any
savings, investment or “cash value” components
• Term life insurance is a popular choice because of
the long rate-guarantee periods. However, if you get
to the end of your policy term and still need life
insurance, you'll need to shop for a new policy,
which will then be priced based on your age and
health status.
Term Life Insurance Cont
• Guaranteed Renewal. Before you buy a
term life policy, ask the agent to confirm that
the policy contains a guaranteed renewable
option, which grants you the right to
continue coverage beyond the initial rateguarantee period without a medical exam.
• Guaranteed Convertible. Another built-in
feature of some term life policies is the right
to convert your coverage to any permanent
cash value policy that the company offers at
current rates without having to take another
physical exam.
Whole Life (Permanent) Insurance
• Ordinary whole life insurance offers
“permanent protection” with a cash value
account that grows over time. Whole life
provides a level death benefit and level
premiums throughout your life and for as long
as you continue to pay the premiums
• Whole life also contains a cash value account
that builds over time, slowly at first and
gaining steam after several years
Whole Life (Permanent) Insurance
• Because of the complexity and dizzying array of
possible outcomes for permanent life insurance,
regulators insist that cash value insurance be sold
using pre-approved illustration formats. These
illustrations can run to 15 or more pages
• Pay particular attention to the guaranteed death
benefit and premium-payment sections because
these columns contain the actual company
promises. If you don’t like what you see there,
walk away
Whole Life (Permanent) Insurance
• Many cash value policies contain harsh
penalties for surrendering the policies in the
early years. Changing your mind within the
first few years is an expensive decision
Riders Add Benefits
• You can add “riders” to your life insurance policy that
guard against a number of unpleasant situations. Your
insurer will have its own list of available riders, but here
are a few:
• Accelerated death benefit rider (aka living benefits rider):
Pays the benefit early if you become terminally ill.
• Accidental death benefit rider: Pays an extra benefit if
you die as the result of an accident.
• Long term care rider: Pays for long term care expenses
should you not be able to do some of the "activities of
daily living," such as dressing or toileting.
• Waiver of premium rider: Waives premium payments
should you become totally disabled.
How Life Insurance is priced?
• Life Insurance Rates are based on your life expectancy, the
face amount you request and the length of the policy,
whether it's the duration of your life (permanent life) or a
specific period (term life).
• Because your current and past health conditions impact your
life expectancy, insurers want to know as much as possible
about your health condition. Common conditions such as
high blood pressure, heart disease, obesity, cancer and
depression can all raise your premiums or even result in your
being denied.
How Life Insurance is priced?
• Based on your medical history, you'll be grouped
into a category such as "preferred plus," "preferred,"
"standard" and "substandard." Your category
ultimately determines your premiums.
• Insurance buyers with severe health conditions or a
combination of conditions can find it hard or
impossible to find life insurance. They are known as
"impaired risks." Local agents may not be able to
find a company that specializes in insuring people
with certain medical conditions.
Calculating the Premium
• Example: Life/AD&D Insurance (Basic and
Supplemental)
• Life and AD&D monthly rates are usually per $1,000
of insurance. Base the premium calculations on the
actual benefit amounts provided to each Firefighter in
thousands,
• taking into account age reductions where appropriate.
• Basic formula to calculate the cost:
Benefit Amount / 1,000 x Rate = Premium
The Life Insurance buying process
• The life insurance applications process is paperintensive, can take 30 to 60 days and often seems
intrusive for people who value their privacy. A face-toface paramedical examination is generally required for
policies in excess of $100,000, which means, at
minimum, giving both blood and urine samples to a
paramedical professional.
• Expect questions in detail regarding your lifestyle,
intended foreign travel destinations, your family health
history and your personal health history.
The Life Insurance buying process
• Sometimes multiple interviews are required in
order to verify your information. The paramed
examiner typically asks these questions face-to-face
and often insurance companies will conduct
follow-up telephone interviews so that you can
verify the first set of answers.
• Regardless of the type of life insurance you buy,
most policies require you to meet certain
guidelines regarding your lifestyle and medical
history.
The Life Insurance buying process
• All standard life insurance policies cover death by any
cause at any time in any place, except for death by
suicide within the first two policy years (one year in
some states).
If you want to avoid the underwriting process, you have
two other, more expensive, options:
• Simplified issue life insurance can be purchased
after answering only a few medical questions. There is
no medical exam required. However, if you report
health problems, you will likely be declined. Also, if
you are healthy, or even if you have some negative
medical history, an underwritten policy is still going to
be your least expensive choice.
The Life Insurance buying process
• Guaranteed issue life insurance is sold to anyone
who applies (up to an age limit) and is by far the
most expensive way to purchase life insurance. This
should be considered only by those who are
declined for everything else but still need life
insurance. These policies have graded death
benefits, meaning your beneficiaries won't receive
the full death benefit until several years into the
policy.
Working with an agent
• After reviewing the various life insurance policies
available, you might still be unsure about which best
meets your needs.
• Look at the recommended policy with care to be sure it
fits your personal goals," Dolan says.
• Carefully study your agent's recommendations and ask
for a point-by-point explanation. Make sure the agent
explains items you don't understand. Because your
policy is a legal document, it is important that you
know what it provides.
Working with an agent
Suggest these tips when purchasing life insurance:
• Ask for specifics of coverage so you can look at all your
options.
• Be wary of offers of "free" life insurance policies.
Nothing is free, there is usually something attached.
• Answer all application questions honestly. Do not omit
information.
• Make sure you get your policy within 60 days; if not,
contact your insurance company to find out why.
Working with an agent
• Check the effective date on the policy.
• Review your policy every year or when a major life
event occurs, such as buying a new house, having a
child or getting married or divorced.
• If you have a complaint with an insurance company
that isn't resolved after contacting a customer service
representative, you can file a complaint with the
Kansas Insurance Department Consumer Assistance
Division. We will take action to reconcile the
problem.
Tips on purchasing Term Life
Insurance to
• What are the Standard & Poor's, A.M. Best,
Fitch and Moody’s ratings of this insurance
company?
• What is the initial rate-guarantee period? Is
this term life policy renewable past the initial
rate-guarantee period without a physical
exam? If so, what are the premiums?
• Is this policy convertible to permanent
insurance without a physical exam? If so, for
what period of time do I have the right to
convert?
Term life insurance snapshot
• Easy to understand
• Affordable way to get maximum
coverage
• Increases in cost after the specified
period
• Builds no cash value
Whole Life (Permanent) Insurance
snapshot
• Protection for life, as long as you pay your
premiums
• Can build equity in the form of a cash value
• Offers flexibility and many options to choose
from
• Initially higher premiums than term life
insurance, but more cost-effective in the long
run
Tips on Whole Life (Permanent)
Insurance
• What are the Standard & Poor's, A.M. Best, Fitch and
Moody’s ratings of this insurance company?
• Can you tell me, in writing, why you are
recommending cash value insurance for me at this
time?
• Why should I combine my life insurance protection
needs with my investment objectives?
• Can you please prepare an analysis for me that shows
the true cost of this cash value insurance policy over 5,
10, 15, 20, 25 and 30 years versus buying term life and
investing the difference in long term bonds over those
same time periods?
Tips on Whole Life (Permanent)
Insurance
• How much is your first-year commission on this
proposed cash value policy versus your
commission on an equivalent term life insurance
policy?
• Are these proposed annual premiums within my
budget?
• Why do you think that I can commit to paying
these premiums over the long term, perhaps
decades?
• How much will I receive if I surrender the policy?
Parts of an Insurance Contract
• Declarations - identifies who is an insured, the
insured's address, the insuring company, what risks
or property are covered, the policy limits (amount
of insurance), any applicable deductibles, the policy
period and premium amount. These are usually
provided on a form that is filled out by the insurer
based on the insured's application and attached on
top of or inserted within the first few pages of the
standard policy form.
• Definitions - define important terms used in the
policy language.
Parts of an Insurance Contract
• Insuring agreement - describes the covered perils, or
risks assumed, or nature of coverage, or makes some
reference to the contractual agreement between
insurer and insured. It summarizes the major promises
of the insurance company, as well as stating what is
covered.
• Exclusions - take coverage away from the Insuring
Agreement by describing property, perils, hazards or
losses arising from specific causes which are not
covered by the policy.
• Conditions - provisions, rules of conduct, duties and
obligations required for coverage. If policy conditions
are not met, the insurer can deny the claim.
Parts of an Insurance Contract
• Endorsements - additional forms attached to the
policy form that modify it in some way, either
unconditionally or upon the existence of some
condition. Endorsements can make policies difficult
to read for nonlawyers; they may modify or delete
clauses located several pages earlier in the standard
insuring agreement, or even modify each other.
• All Insurance Policies purchased by FRAs in the
State of Kansas must have the FRA Endorsement
FRA Endorsement
Typically has language that states:
• K.S.A. 40-1707(c)(1)(a) and K.A.R. 40-10-5 and 4010-6 state:
• The Firefighters Relief Association shall be the owner,
payee, and irrevocable beneficiary of the policy and all
indemnities of whatever nature shall be paid to the
Firefighters Relief Association except as follows:
a. The Insured Association Member who:
• has completed ten years of service and has been
covered under the policy for a continuous period of not
less than five years; or
• suffers a total and permanent disability or death; or
FRA Endorsement cont.
• who retires under the retirement plan in effect for the
Fire Department;
• shall upon termination of employment, be entitled to
any benefit or coverage available to an individual
member under the provisions of the contract except as
provided in subsection K.A.R. 40-10-6(b)(4).
• A member who has not fulfilled one of the
requirements set forth in paragraphs (a), (1), (2), and (3)
above shall, upon termination of employment, be
entitled to the same proportion of benefits or coverage
available to an individual member such as the member’s
individual premium contributions bear to the total
premiums paid on the policy at the time of termination.
Parts of an Insurance Contract
• Policy Riders - A policy rider is used to convey the
terms of a policy amendment and the amendment
thereby becomes part of the policy. Riders are dated
and numbered so that both insurer and policyholder
can determine provisions and the benefit level.
Common riders to group medical plans involve name
changes, change to eligible classes of employees,
change in level of benefits.