trust ma nual

TRUST MANUAL

Agreement, Declaration of Trust, Bylaws, and Policies

Current: April 2018

TRUST MANUAL: TABLE OF CONTENTS

Page i

INTRODUCTION Page iv

AGREEMENT, DECLARATION OF TRUST, AND BYLAWS Page 1

Article I: Definitions Page 4

Article II: Name Page 5

Article III: Purposes of the Trust Page 5

Article IV: General Trust Provisions Page 6

Article V: Provisions for FSBIT Members Page 9

Article VI: Programs Page 12

Article VII: Nature and Use of a Fund Page 13

Article VIII: Dealings with the Trustees Page 13

Article IX: Amendment and Termination of the Trust Page 13

Article X: Agency Page 14

Article XI: Severability and Situs of Construction Page 14

CHAPTER 1 POLICIES: FOUNDATIONS AND BASIC COMMITMENTS

Policy 101: FSBIT Mission Statement Page 1-1

Policy 102: FSBIT Vision Statement Page 1-1

Policy 103: Core Beliefs and Commitments Page 1-1

Policy 104: Strategic Planning Page 1-2

CHAPTER 2 POLICIES: MANAGEMENT STRUCTURE

Policy 201: FSBIT Organizational Chart -1

Policy 202: Responsibilities of Trust Member School Districts Page 2-3

Policy 203: Responsibilities of Participating Member School Districts Page 2-4

Policy 204: Duties of the Trustees Page 2-5

Policy 205: Duties of the FSBIT Director of Risk Management Page 2-7

Policy 206: Duties of the Trustee Officers Page 2-9

Policy 207: Standing Committees Page 2-10

Policy 208: Special Committees Page 2-11


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Policy 209: Training Sessions Page 2-12

Policy 210: Approval of Legal Action Page 2-12

Policy 211: Publications Page 2-12

Policy 212: Florida School Boards Insurance Trust Website Page 2-12

Policy 213: Hiring of Specialist or Consultants Page 2-13

Policy 214: Policy Adoption Page 2-14

CHAPTER 3 POLICIES: FUNDING AND COVERAGE STRUCTURE

Policy 301: Fund Account -1

Policy 302: Fiscal Year Page 3-1

Policy 303: Annual Contribution Schedule Page 3-1

Policy 304: Components of FSBIT’s Costs Page 3-2

Policy 305: Funding Formulas for Annual Contributions Page 3-2

Policy 306: Collection of Annual Contributions Page 3-4

Policy 307: Investment Powers Page 3-6

Policy 308: Loans Page 3-6

Policy 309: Reinsurance/Excess Insurance Page 3-7

Policy 310: Claim Payments Page 3-9

Policy 311: Coverage by the Fund Account Page 3-9

Policy 312: Investment of FSBIT Funds Page 3-9

CHAPTER 4 POLICIES: FISCAL MANAGEMENT

Policy 401: Fiduciary Responsibility Page 4-1

Policy 402: Annual Operating Budget Page 4-1

Policy 403: Financial Statements Page 4-1

Policy 404: Borrowing Authority/Limitations Page 4-2

Policy 405: Bonded Employees Page 4-2

Policy 406: Fiscal Accounting Page 4-3

Policy 407: FSBIT Annual Audit Page 4-3

Policy 408: Compensation of Trustees Page 4-3


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Policy 409: Contracts -4

Policy 410: Reimbursing Trustee Expenses Page 4-4

Policy 411: Reimbursing Employee Expenses Page 4-4

Policy 412: Cash Advances Page 4-5

Policy 413: Payment of Goods and Services Page 4-5

Policy 414: Application for Participation in the Trust Page 4-5

Policy 415: Guidelines for Annual Surplus Distribution Page 4-5

CHAPTER 5 POLICIES: TRUST MEETINGS

Policy 501: The Trust Meeting Cycle Page 5-1

Policy 502: Trust Meeting Agendas Page 5-1

Policy 503: Trust Meeting Packets Page 5-2

Policy 504: Committee Action Procedure Page 5-2

Policy 505: Meeting Attendance of Trustees Page 5-2

Policy 506: Voting on Action/Business Items Page 5-3

Policy 507: Trust Meeting Minutes Page 5-3

CHAPTER 6 POLICIES: GENERAL GUIDELINES FOR TRUSTEES

Policy 601: Trustees’ Service to FSBIT Page 6-1

Policy 602: Trustees’ Involvement in Administrative Duties Page 6-1

Policy 603: Conflicts of Interest Page 6-1

Policy 604: Responsibility for Decisions Page 6-2

Policy 605: Trustees’ Relations with the FSBIT Director of Risk Management Page 6-3

Policy 606: Evaluation Process of the FSBIT Director of Risk Management Page 6-3

Policy 607: Trustees’ Relations with Members, Service Providers and FSBIT Employees

Page 6-3

GLOSSARIES

Glossary of FSBIT Definitions and Acronyms Page G-1

Glossary of Insurance, Reinsurance and Pooling Terms and Acronyms Page G-4

INTRODUCTION

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The Florida Schools Boards Association (FSBA) established the Florida School Boards Insurance Trust (i.e., FSBIT or the Trust) in 1981 for the purpose of self-insuring the property, casualty and workers’ compensation exposures of Florida school districts. This pooled self- insurance program is sponsored by FSBA and is funded by school districts that join the Trust. The Trust is governed by Trustees and program administration is the responsibility of FSBIT’s Risk Management Department. FSBIT provides the following risk management services: insurance, claim processing administrative services, safety and loss control and risk management administration.

The Florida School Boards Insurance Trust continues to recognize the difficulties school districts face in acquiring insurance protection, training and loss control at a reasonable and affordable cost. The Trust assists school districts in reducing risk management costs by providing training and services in addition to purchasing insurance coverage. The Trust provides:

● A larger “economy of scale” purchase of excess and aggregate insurance coverage. ● Potential annual interest earning credits which reduce overall costs. ● Safety loss prevention programs not available at all Florida school districts. ● A continuous review and monitoring of claims, payments and exposures. ● An opportunity for full or partial participation in the FSBIT programs.

School districts that participate in the Trust benefit by owning their insurance pool. Premium contributions of the trust member school districts and participating member school districts pay claims, administrative expenses and purchase reinsurance. The equity accrued by the Trust fund reduces future premium costs. The Trust investment policies ensure optimal return on investments with maximum security. The not-for-profit structure of the Trust allows school district members to enjoy stable, competitive premiums and focuses on finding the appropriate coverage for all trust member school districts and participating member school districts and is not limited to finding ways to avoid claim payments.

The Trust is committed to controlling risks, covering losses and sharing the benefits. FSBIT trust member school districts and participating member school districts are assured their contributions are safe. FSBIT is a member owned and member operated insurance pool that annually:

● Develops contributions for comprehensive coverage based on actuarially developed rates, ensuring funding to pay claims in accordance with the terms and conditions of the policy;

● Engages in a full actuarial study to determine adequacy of loss reserves and policyholders’ equity; and,

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● Undergoes independent financial and individual claim audits to determine financial stability, solvency and compliance with industry standards.

The customer friendly service of FSBIT is acknowledged as one of its most well-known features. Every claim, question and request is handled with the meticulous attention and care that any person would expect if dealing with his/her own organization. The Trust exists to serve the trustee member school districts and participating member school districts and is committed to rapid response in all phases of service.

The financial condition of FSBIT is strong. This strength allows the Trustees to continually develop programs to meet the real and future needs of the Trust. The dedication and commitment of the Trustees to maintain proactive loss prevention keep the workers’ compensation rates moderate and consistent year to year.

AMENDMENT NO. 1-2013 ADOPTED JANUARY 11, 2013

Comes now the Board of Trustees of the Florida School Boards Insurance Trust and amends the Agreement, Declaration of Trust, and Bylaws creating the Florida School Boards Insurance Trust pursuant to and in compliance with Article IX of said Agreement:

WITNESSETH

WHEREAS, the Agreement, Declaration of Trust, and Bylaws (“Trust Agreement”) provides in Article IX, Section 1. that the Trust Agreement may be amended by the FSBIT Trustees to any such extent that they deem necessary or advisable; and,

WHEREAS, the language contained in this amendment (“Amendment”) to the Trust Agreement has been provided to the Trustees of the Trust thirty (30) days prior to the vote to approve the proposed Amendment in compliance with Article IX of the Trust Agreement; and,

WHEREAS, it is the intent of the Trustees of FSBIT to amend the Trust Agreement so as to clarify and further the lawful purposes and to enhance the operational efficiencies of FSBIT, including the programs and services it offers its members and others and the funds it administers on behalf of the members of FSBIT; and,

WHEREAS, two-thirds (⅔) of the Trustees present during the duly constituted meeting to consider and approve this Amendment have affirmatively voted to approve this Amendment to the Trust Agreement.

NOW THEREFORE, the Trust Agreement is hereby amended to read as follows:

AGREEMENT, DECLARATION OF TRUST, AND BYLAWS

AGREEMENT AND DECLARATION OF TRUST

This Agreement and Declaration of Trust made at Tallahassee, Florida, as of this the 26th day of June, 1981, by and between the members of the Florida School Boards Association, Inc., hereinafter referred to as “FSBA” or “Association”, a Florida not for profit corporation located at 203 South Monroe Street, Tallahassee, Florida 32301, comprised of Trustees as shown on the signature page. The individual Trustees will change periodically due to changes in membership and other related reasons. This document will reflect the signatures of those present and active at the time of execution since this document is subject to continuous Trustee member changes.

WITNESSETH: WHEREAS, Article IX, Section 4. of the Florida Constitution, in part, establishes school districts and school boards as lawful political bodies or subdivisions of the State of Florida with powers and duties provided by the Florida Constitution and the Laws of the State of Florida; and,

WHEREAS, Section 1001.42, Florida Statutes, in part, sets forth certain powers and duties of a school board, including, but not limited to the provision of adequate protection against any loss or damage to school property or loss resulting from any liability by purchasing insurance, self-insuring, entering into risk management programs managed by school boards, school- related organizations, or insurance companies, or any combination thereof; and,

WHEREAS, Section 112.08, Florida Statutes, in part, provides that school boards pay out or contract for the payment of premiums for life, health, accident, hospitalization, legal expense, annuity insurance or any or all kinds of such insurance for the officers and employees of the school board; and,

WHEREAS, Section 768.28, Florida Statutes, in part, provides that the state, its agencies and subdivisions are authorized to be self-insured and to enter into risk management programs to provide protection against certain property and casualty claims; and,

WHEREAS, Section 111.072, Florida Statutes, in part, provides that political subdivisions of the state are authorized to enter into risk management programs in anticipation and to purchase liability insurance in anticipation of any judgment or settlement resulting from a civil rights action arising under federal law; and,

WHEREAS, Section 163.01, Florida Statutes, in part, authorizes any political subdivision or local governmental unit of the state, including school districts, to jointly exercise any power, privilege, or authority which such governmental entities share in common and which each might exercise separately, and further provides such authority is in addition to and not in limitation of those granted by any other general, local, or special law; and,

WHEREAS, school boards in Florida are authorized to join together in a group or groups for the purpose of providing self-insurance of various kinds; and,

WHEREAS, the members of FSBA include many of the school boards in the State of Florida; and,

WHEREAS, under proper circumstances the FSBA membership or some portion thereof may deem it expedient to join together in purchasing and procuring insurance coverage of any kind as authorized under Florida law or providing self-insurance, various coverages and risk management programs as authorized under Florida law; and,

WHEREAS, FSBA considers that it would be advantageous and an economical savings for its membership or a portion thereof to undertake to provide such insurance in some selected areas and to that end is undertaking to furnish the leadership and guidance necessary to establish such programs; and,

WHEREAS, FSBA has determined that the most practical manner in which to establish and administer these insurance programs is through a Trust created for that purpose; and,

WHEREAS, pursuant to the authority vested in the Association, its President appointed the original nine (9) Trustees named as parties hereto and subscribing their names to the original Agreement and Declaration of Trust document; and,

WHEREAS, the current Trustees’ signatures reflect the current membership of Trust Member School Districts appointed by each School District Member as of the date noted in the original document; and,

WHEREAS, the Association and the Trustees have agreed on the terms and conditions of this Trust set out in writing herein; and,

WHEREAS, the Trustees have subscribed to this Agreement and Declaration of Trust for the purpose of agreeing to perform the duties and obligations required of them under the terms and provisions hereof.

NOW, THEREFORE, in consideration of the foregoing premises, it is mutually contracted, covenanted and agreed as follows:

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ARTICLE I

DEFINITIONS Section 1. “Members” are defined as the school boards of the State of Florida that are members of the Association. Section 2. “Trust Member School Districts” refer to school districts that have full membership in FSBIT.

Section 3. “Participating Member School Districts” are defined as school districts that have applied for and been accepted as participating in insurance, self-insurance or risk management programs established and administered by the Trust and do not have full membership in FSBIT.

Section 4. “Chair” is the Trustee elected by the Trustees to officiate over the FSBIT Trustee and Operator meetings and from time to time update the FSBA Board of Directors on the current status of FSBIT. “Vice-Chair” is the Trustee elected by the Trustees to assume the role of the Chair should the Chair not be able to fulfill his/her position. Both the Chair and Vice- Chair shall serve on the FSBIT Executive Committee.

Section 5. “Trustee” is the voting member of a representative school district that has full membership in FSBIT.

Section 6. “Treasurer” is the Executive Director of the Florida School Boards Association and shall serve as an ex-officio member of the Trustees without voting privileges.

Section 7. “Secretary” is the FSBIT Director of Risk Management charged with oversight of the day-to-day operations of the Trust and shall serve as an ex-officio member of the Trustees without voting privileges.

Section 8. “Operators” are defined as those persons who are employed as risk managers or district level business officials of trust member school districts. Such persons are non-voting members of the Trust except as provided for in Article IV, Section 1.

Section 9. “Contributions” are defined to mean the initial payment to the Trust and subsequent payments to the Trust by trust member school districts and participating member school districts in any insurance program or service established and administered by the Trust.

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Section 10. “Fund or Funds” are defined to mean, with respect to the particular account involved, the cumulative total of the following: contributions, policy refunds, or budget reductions received by the Trustees or left with the insurance carrier; investments made by the Trustees and income thereon; and, other money or property which is acquired by the Trustees in connection with the administration thereof. Each insurance or service program established and administered by the Trustees shall maintain a separate account for all monies collected and disbursed in that particular program or service, and each account shall be designated and named to readily identify the insurance program or service. Section 11. “Proxy Designee” is an individual who is authorized by a Trustee to serve in his/her absence at a duly constituted meeting or teleconference of the Trustees for a specified length of time. The proxy designee shall be limited to an alternate school board member, superintendent, or operator in order to ensure a knowledgeable representative is present at a duly constituted meeting or teleconference.

ARTICLE II

NAME

The name of the Trust hereby created is the “FLORIDA SCHOOL BOARDS INSURANCE TRUST”, hereinafter referred to as “FSBIT” and/or as the “TRUST”.

ARTICLE III

PURPOSES OF THE TRUST The Trust shall be a non-profit organization with the funds collected as provided herein to be used only for the purpose and in the manner set out in this Agreement and Declaration of Trust or by the Bylaws promulgated and adopted pursuant to the authority granted herein. The purposes of the Trust shall be to enable school boards of Florida that are members of the Association, to avail themselves of the benefits which will accrue to them in the forming of a group or groups to provide and participate in any lawfully permitted insurance, self- insurance, pooled insurance, risk management program or services of any kind or to procure or create any type of lawfully permitted insurance, insurance coverage, risk management, self-insurance, pooled insurance, claims administration or other related programs and services for the benefit of trust member school districts and participating member school districts pursuant to and consistent with all applicable provisions of Florida law which allow such actions.

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ARTICLE IV

GENERAL TRUST PROVISIONS Section 1. SELECTION OF TRUSTEES. A school board member shall be selected by the school board of each trust member school district to serve as a Trustee. One (1) superintendent shall be selected from the superintendents of the trust member school districts to serve as a voting Trustee. One (1) operator from the trust member school districts shall be selected by the Trustees to serve as a voting Trustee. The superintendent Trustee and the operator Trustee shall not be from the same school district. No trust member school district shall have more than two (2) votes. Selection of Trustees shall be made annually by each trust member school district during the organization meeting of the district school board held pursuant to Section 1001.371, Florida Statutes, and the name of the appointed trustee shall be submitted to the FSBIT Director of Risk Management before the Winter Business Meeting of each fiscal year. The FSBA Board of Directors shall appoint a school board member for a three (3) year term to serve as a voting member of the Trust; this person shall not be from a trust member school district. The FSBA President Elect shall serve as an ex-officio Trustee. Section 2. CHAIR OF THE TRUSTEES. A Chair of the Trustees shall be elected annually at the Winter Business Meeting by the Trustees. The Chair is expected to attend all Trustees’ and Operators’ meetings. Section 3. RESIGNATION OF A TRUSTEE. Any Trustee may resign upon giving thirty (30) days written/electronic notification to the Chair of the Trustees and to the FSBA President at 203 South Monroe, Tallahassee, Florida 32301. Section 4. REMOVAL OF A TRUSTEE. A Trustee may be removed or replaced at any time by the appointing authority designated in Sections 1 and 2 of this Article. Section 5. APPOINTMENT OF SUCCESSOR TRUSTEES. Upon the death, resignation or removal of a Trustee, a replacement Trustee shall be appointed as required by the provisions of Sections 1 and 2 of this Article. Section 6. COMPENSATION OF TRUSTEES. The Trustees may be reimbursed by the Trust for reasonable and necessary expenses incurred by them in the performance of their duties in accordance with a policy adopted for the Trust. Section 7. MEETING OF TRUSTEES. A meeting of the Trustees may be called at any time by the Chair by giving at least ten (10) days written/electronic notice to all Trustees. A meeting of the Trustees may also be called by any three (3) of the Trustees upon giving at least ten (10) days written/electronic notice to all Trustees. An emergency meeting may be called with less than ten (10) days written/electronic notice provided that all Trustees have been notified about the emergency meeting.

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A majority of the Trustees, including a proxy designee authorized by a Trustee, shall constitute a quorum for a duly constituted meeting or teleconference. Each Trustee who is unable to attend a Trust meeting or participate in a teleconference shall appoint a proxy designee to sit and act on his/her behalf. The Trustee shall be responsible for notifying the Chair or the FSBIT Director of Risk Management in writing or electronically of the proxy designee’s name and the specific length of time the designation is to be valid. The Chair shall declare vacant the office of any Trustee who misses two (2) consecutive meetings without appointment of a proxy designee.

A status report of the Trust shall be made by the Chair of the Trustees, or his/her designee, to the Association at all meetings of the Board of Directors and general membership.

Section 8. REQUIRED VOTE OF TRUSTEES. Trustees may take action during a duly constituted meeting or a teleconference provided a quorum has been declared. Any such action of the Trustees shall require a majority vote of those in attendance unless otherwise required herein. All meetings shall be either in person or via teleconference.

A Trustee who is unable to attend a meeting or participate in a teleconference is responsible for appointing a proxy designee in accordance with Article I, Section 11., and shall notify the Chair or the FSBIT Director of Risk Management in writing or electronically of the proxy designee’s name and the specific length of time the designation is to be valid. The proxy designee shall exercise the same voting rights as the absent Trustee for the specified period as provided herein.

Section 9. DESIGNATION OF CHAIR AS MANAGING TRUSTEE. The Trustees may designate the Chair as the managing Trustee and authorize him/her to execute certain instruments in the name of the Trustees except as otherwise required by Florida Statutes.

Section 10. DESIGNATION OF EXECUTIVE COMMITTEE. The members of the Trust may annually designate an Executive Committee composed of: the Chair, Vice-Chair, any other trustee or operator as determined and appointed by the Chair, the Treasurer and Secretary. The purpose of the Executive Committee shall be to make decisions regarding Trust matters in critical situations and when time does not allow for convening of a full membership meeting or a teleconference with a majority of the Trustees. The Executive Committee shall advise the full membership of action taken by said Committee within forty-eight (48) hours by email or telephone call. The Executive Committee shall not make decisions involving over $100,000 in capital expenses.

Section 11. MANAGEMENT OF THE TRUST. It is the express intention of the settlers of this Trust that the Trustees shall have absolute and exclusive power and authority to manage the Trust property and to conduct the Trust business to the same extent as if such Trustees were the owners of such property limited only as specifically set forth in this Agreement, Declaration of the Trust, and Bylaws. Trustees may take action during a duly constituted meeting or

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teleconference, provided a quorum is declared. Any such action of the Trustees shall require a majority vote of those in attendance. The Trustees’ powers shall include, but not be limited to:

(a) Making and entering into such contracts as they deem expedient to accomplish the purposes of the Trust;

(b) Purchasing or otherwise acquiring real or personal property, and selling, exchanging, mortgaging, granting a security interest, pledging, or in any manner dealing with the Trust Fund or any part thereof or any interest therein, upon such terms and for such consideration as they deem proper;

(c) Borrowing money to further the Trust purpose and pledging the Trust property as security therefore, provided, however, that no liability shall be incurred except such as may be incidental to the proper management of the Trust and proper execution of the Trust purpose;

(d) Prosecuting and defending all actions affecting the Trust, and compromising or settling any suits, claims, or demands, or waiving or releasing any rights relating to the Trust; and,

(e) Employing officers, agents, attorneys, and employees.

It is also the express intention of the settlers that no court shall substitute its judgment for that of the Trustees in the making of any decisions relative to the management and administration of the Trust.

Section 12. LIABILITY OF TRUSTEES. The Trustees shall use ordinary care and reasonable diligence in the exercise of their power and in the performance of their duties hereunder; they shall not be liable for any mistake of judgment or other action made, taken or omitted by them in good faith; nor for any action taken or omitted by an agent, employee or attorney selected with reasonable care; nor for the loss incurred through investment of Trust money, or failure to invest. No Trustee shall be liable for any action taken or omitted by any other Trustee. The Trustees shall not be required to give a bond or other security to guarantee the faithful performance of their duties hereunder.

Section 13. INDEMNIFICATION OF OFFICERS AND EMPLOYEES. The Trust shall have the power and authority to indemnify and hold harmless to the full extent permitted by Florida Statutes any person who is or was a Trustee, officer, employee or agent of the Trust. The Trust may purchase and maintain insurance on behalf of any person who is or was a Trustee, attorney, officer, employee or agent of the Trust, against any liability asserted against him/her and incurred by him/her in any such capacity, or arising from his/her status as such, regardless of whether the Trust had the power to indemnify him/her against such liability.

Section 14. TREASURER. The FSBA Executive Director shall serve as Treasurer of the Trust without voting privileges. The Treasurer shall act as advisor to the Trust on all financial

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matters, serve on the Budget and Investment Committee and act as liaison on legislative matters that may impact the standing of the Trust.

All checks issued by the Trust for payment of operating expenses and claim payments shall require the following:

(a) Checks for operating expenses shall be executed by the FSBA Executive Director unless he/she is not available then the checks shall be executed by either the FSBIT Director of Risk Management or the FSBA Comptroller.

(b) Claims checks in the amount of $4,999 or less shall have an electronic signature. All checks of $5,000 or more shall require two (2) signatures from two (2) of the following three (3) individuals: FSBA Executive Director, FSBIT Director of Risk Management and/or the FSBA Comptroller.

Section 15. PRINCIPAL OFFICE OF TRUST. The principal office of the Trust is located at 800 North Calhoun Street, Tallahassee, Florida 32303.

Section 16. NOTICES. Any and all notices or other communication provided for herein shall be given in writing by postal or electronic mail and shall be addressed, in the case of FSBA, to its office at 203 South Monroe Street, Tallahassee, Florida 32301 or the email address of the Executive Director, in the case of FSBIT to its office at 800 North Calhoun Street, Tallahassee, Florida 32303 or the email address of the FSBIT Director of Risk Management, and in the case of any Trustee, to the postal or electronic address of the trust member school district. The address for notices to all successor trustees shall be the postal or electronic address furnished by the Trustee upon him/her assuming that position, or such other postal or electronic address as may subsequently be designated by him/her.

Section 17. REPRESENTATION OF PARTICIPATING MEMBER SCHOOL DISTRICTS. School districts that participate in certain specified limited programs offered by the Trust shall not be entitled to representation as described in this Article. Those limited designated programs shall be determined by the Trustees and, shall include but may not be limited to, catastrophic liability, property coverage and/or claims administration. Participating member school districts choosing to join only those limited designated programs shall not be eligible to elect Trustees.

ARTICLE V PROVISIONS FOR FSBIT MEMBERS

Section 1. MEMBERS’ PARTICIPATION IN THE TRUST. A school district may become a trust member school district or a participating member school district in any program established and administered by the Trustees by making application for participation in a form prescribed by the Trustees, paying any contributions determined by the Trustees on the basis of the service to be

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provided in that particular program and satisfying all requirements of the Trustees for the participation requested. The school district shall be notified in writing or electronically by the Trustees if accepted as a trust member school district or a participating member school district.

Section 2. CONTRIBUTION REQUIREMENTS FOR TRUST MEMBERS. A school district that is accepted as a trust member school district or a participating member school district shall thereafter pay contributions on such dates and in such amounts as the Trustees shall require for providing the group self-insurance, insurance or risk management services under each program and for administering the Trust. The trust member school district or a participating member school district shall comply with such decisions and policies and procedures promulgated or adopted by the Trustees. It is specifically understood that the Trustees at any duly constituted meeting or teleconference may determine the amounts of contributions required and the periods covered with authority to differentiate in the rates charged trust member school districts or participating member school districts based on their loss experience.

The participation under each coverage program shall continue until the program has been terminated, except that the failure of a trust member school district or a participating member school district to pay contributions or to comply with such policies and procedures as may be required by the Trustees shall be grounds for termination from the Trust. If a trust member school district or a participating member school district exceeds the loss fund contribution available to pay its claim after termination, the Trust may request additional funds to pay outstanding claims and claim expenses or return the open claims to the school district or to its Third Party Administrator (TPA) for claims. The Trust is limited in paying claims for terminating or withdrawing trust member school districts or participating member school districts to those funds and interest available as provided by the specific school district.

Each trust member school district and participating member school district shall be responsible for its own respective liability under the loss fund contribution upon departure from the Trust. A trust member school district or a participating member school district that departs in deficit with respect to its particular loss fund contribution shall reimburse the Trust for said deficit. The Trust retains the right to seek such reimbursement. The liabilities of a departing trust member school district or participating member school district that is in deficit with respect to the loss fund contribution shall not be paid by the remaining members of the Trust through an assessment, nor shall such remaining school districts of the Trust be jointly and severally liable for the departing school district’s deficit. Any monies that are owed to a departing trust member school district or a participating member school district with respect to its yearly loss fund contribution shall be paid by the Trust. The loss fund is reserve dollars set aside as required by actuarial calculations for future payment of claims within the Self-Insured Retention (SIR) limits of the Trust.

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Section 3. TRUST POLICIES, PROCEDURES AND SCHOOL DISTRICT RECORDS. To properly administer the insurance program and services of the Trust, the Trustees may adopt policies and procedures and require trust member school districts and participating member school districts to furnish such information, as the Trustees deem necessary or advisable.

Section 4. INTEREST OF THE FSBIT SCHOOL DISTRICTS; PERSONS INSURED AND PERSONS CLAIMING THROUGH THEM. Neither the trust member school district, participating member school district, person insured, nor person claiming insurance benefits or otherwise, shall have any claim against any funds or property of the Trust. The rights and interests of persons insured and persons claiming by or through them shall be limited to the insurance benefits specified in the policies or self-insurance programs involving programs established by Florida Statutes. Trust member school districts and participating member school districts may appeal claims to the Trustees. The final action of the Trustees shall be considered the final action of the claim.

Section 5. TRUST OR PROGRAM WITHDRAWAL OR TERMINATION. Any trust member school district or participating member school district may withdraw from the Trust or terminate participation in a Trust sponsored program only pursuant to the provisions of Section 624.46223, Florida Statutes, by providing written notice to the Trust forty-five (45) days prior to the date the trust member school district or participating member school district intends to withdraw. Intent to withdraw or terminate participation shall be an official school board action of the trust member school district or the participating member school district. Once written/electronic notice is given to the FSBIT Director of Risk Management, a trust member school district or a participating member school district shall have no vote regarding any program renewal or selection of program options from which the trust member school district or participating member school district has withdrawn and shall not be included in any renewal or bid quote. However, the withdrawing or terminating trust member school district or participating member school district shall retain all other voting rights and responsibilities it may have via its participation in other Trust programs or services. A trust member school district or participating member school district may rescind a letter of intent to withdraw or terminate by sending written/electronic notification to the FSBIT Director of Risk Management prior to the effective withdraw or termination date. Once a participating member school district has elected to withdraw from a specific program or service offering of the Trust it is not eligible to participate in that program for at least one (1) program year. That decision shall be an official school board action of the participating member school district.

For any and all program or service offering terminations, the trust member school district or participating member school district shall remain liable to continue to make all contributions required to be paid until the end of the program year in effect at the time of the exercise of the withdrawal or termination even if such contributions and liabilities extend beyond the date of the withdrawal by the trust member school district or participating member school district.

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Any trust member school district or participating member school district that withdraws completely or terminates participation in any Trust sponsored program shall have no immediate right or claim to any part of its current balance of loss fund contributions in excess of claims incurred. However, if there are excess loss fund contributions for any one (1) program year after all claims and related liabilities have been closed, as determined by the Trustees and the Trust actuary, the withdrawing school district shall be refunded any remaining balance. A terminating trust member school district or participating member school district shall not share in any Trust surplus funds.

Claims being administered by FSBIT for trust member school districts and participating member school districts that terminate their membership with the Trust shall remain with the Trust until closure due to aggregate and excess requirements. Processing of said claims for terminating school districts shall be at an appropriate administration fee for which the school district shall be responsible to promptly pay.

ARTICLE VI PROGRAMS

Section 1. PROCURING OF POLICIES. Upon execution of this Agreement, the Trustees may procure a policy or policies or master contract from insurance carriers or service companies selected by the Trustees, and providing such form of insurance and/or service as specified in Article III. Additional policies providing any such insurance or service as the Trustees deem appropriate may be procured anytime thereafter. The term “policy” as used herein shall include any rider, endorsement, or amendment made a part of the policy. The Trustees are further empowered to enter into service agreements as they determine to be in the best interest of the Trust and/or its trust member school districts and participating member school districts. Section 2. CONTROL OF TRUSTEES. The Trustees shall agree with such insurance carriers upon the provisions of the policy or policies and the requirements for insurance there under for such members of the Association as may elect to participate in the plan. All rights and privileges granted to the policyholder by a policy or allowed by the insurance carrier shall be vested in the policyholder, except as hereinafter provided. The Trustees may enter into such other agreements with insurance carriers and/or service companies, as they deem necessary or advisable in regard to any such insurance or service within the purposes of the Trust.

Section 3. GROUP PROGRAMS. The Trust shall be authorized to contract with any qualified organization to perform any of the functions necessary for the carrying out of a self-insured pool arrangement, including excess loss insurance, handling of claims, safety engineering services, administrative services and any and all other services that the Trustees shall deem expedient for the proper servicing of those members who use the services of the Trust.

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ARTICLE VII

NATURE AND USE OF A FUND

Section 1. USE OF A FUND. The Trustees may use a fund to pay: (a)

Premiums for group policies;

(b) Premiums for bonds and errors and omissions insurance which may be required by Florida Statutes, Florida Administrative Code or action of the Trustees; and,

(c) All other expenses and make all payments which the Trustees consider necessary in establishing the Trust loss fund and administering the services of the Trust with respect to any investments, group self-insurance, insurance, or risk management program, including but not limited to, any compensation paid to any service companies, attorneys, actuaries, accountants, employees, clerical help, custodians, servants and others as the Trustees may deem necessary.

ARTICLE VIII DEALINGS WITH THE TRUSTEES

No purchaser, seller, transfer agent or other person dealing with the Trustees or any officer, employee or agent of the Trust shall be bound to make any inquiry concerning the validity of any transaction purporting to be made by the Trustees or by such officer, employee or agent or make inquiry concerning or be liable for the application of money or property paid, transferred or delivered to or on the order of the Trustees or of such officer, employee or agent.

ARTICLE IX

AMENDMENT AND TERMINATION OF THE TRUST

Section 1. AMENDMENTS TO THE AGREEMENT, DECLARATION OF TRUST, AND BYLAWS. The Trustees may amend the Agreement, Declaration of Trust, and Bylaws at any time to such extent as they deem necessary or advisable. The Agreement, Declaration of Trust, or Bylaws shall be amended by a two-thirds (⅔) vote of the Trustees present during any duly constituted meeting or teleconference provided any proposed amendments have been sent by postal or electronic mail at least thirty (30) days before the scheduled meeting or teleconference. Subsequent to passage of the amendments by the Trustees, the Trustee Chair shall present the amendments during the next regular meeting of the FSBA Board of Directors for approval.

BYLAWS

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Section 2. TERMINATION. The Trust may be terminated at any time by the Board of Directors of the Association only upon the mutual consent of the Trustees by an instrument in writing and upon prior notice to each trust member school district and participating member school district. Upon termination, the Trustees shall pay all obligations of the Trust and distribute any remaining surplus in such manner as they determine fair and equitable to the trust member school districts and participating member school districts.

ARTICLE X AGENCY

The Trustees operate only under the provisions of this Agreement, Declaration of Trust, and Bylaws as agent and representative of the trust member school districts and participating member school districts members.

ARTICLE XI

SEVERABILITY AND SITUS OF CONSTRUCTION

Any provision of this Agreement, Declaration of Trust, and Bylaws prohibited by the laws of the State of Florida shall be ineffective to the extent of such prohibition without invalidating the remaining portion of this Agreement, Declaration of Trust, and Bylaws.

This Trust is executed in the State of Florida and all questions pertaining to its validity, construction and administration shall be determined in accordance with the laws of such jurisdiction.

IN WITNESS WHEREOF, this Agreement, Declaration of Trust, and Bylaws have been duly executed by the parties and bounds the trust member school districts and participating school districts to the FSBIT Trust, which has been in existence since June 1981.

Amendment No. 1-2013 was passed and adopted by the Board of Trustees of the Florida School Boards Insurance Trust this eleventh (11th) day of January, 2013.

Chair Florida School Boards Insurance Trust

Secretary Florida School Boards Insurance Trust

FLORIDA SCHOOL BOARDS INSURANCE TRUST

FSBIT TRUST DOCUMENT SIGNATURE PAGE

AMENDMENTS ON January 11, 2013

Gunnar Paulson Virginia Bryant Alachua County School Board Citrus County School Board

Tim Pearson India Riedel Lafayette County School Board Okeechobee County School Board

Beverly Slough Hugh Winkles St. Johns County School Board Santa Rosa County School Board

J. M. Holtzclaw Brenda Carlton Suwannee County School Board Taylor County School Board

Dr. Dan Boyd, Superintendent Dave Stephens, Risk Manager Alachua County School District Citrus County School District

Lee Swift FSBA Representative

This foregoing Agreement, Declaration of Trust, and Bylaws were adopted on March 22, 2013.

BY: BY: FSBA PRESIDENT FSBA EXECUTIVE DIRECTOR

BY: ATTEST:

FSBIT TRUSTEE CHAIR FSBIT SECRETARY

trust ma nual

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