1. ALUMNI LEADERSHIP CONNECTIONS Best Practices for Handling Legal and Risk Management Issues David Snowe, CPCU CIC CRM Insurance Manager Risk Management Office (814) 863-4241 dcs28@psu.edu June 11, 2011 1

2. The Risk Management Cycle IDENTIFY EXPOSURES QUANTIFY PROBABILITY & SEVERITY SELECT & IMPLEMENT TREATMENTS MONITOR RESULTS 2

3. Classic Risk Treatment Methods AVOID REDUCE TRANSFER ASSUME (AND, IN SOME CASES) INSURE 3

4. 4 Where We Often Interact Insurance and Risk Management for the University (including the Alumni Association). Insurance and Risk Management for Alumni Chapters/Interest Groups/Societies/Etc. The fine-line legal and insurance differences between the University/Alumni Association and Chapters/Interest Groups/Societies/Etc.: – Insurance and Insurance Certificate Requests – Claims and Lawsuits – Contracts – Good Old-Fashioned Advice

5. Insurance Separate Liability Insurance is purchased specifically for Alumni Chapters/Interest Groups/Societies/Etc. An Insurance Coverage Overview is provided in the Chapter Leaders Handbook. Common Questions: – Special Events Insurance (not needed) – Event Cancellation Insurance (no) – Host Liquor Liability Insurance (social host only) – Insurance Certificates (proof of insurance) – Directors & Officers Liability (provided except for employment situations…call!) 5

6. Insurance, cont. Questions and requests for Insurance Certificates should be directed to the Alumni Association Regional Directors, who will refer to Risk Management as needed. Assistance and Support is provided by the Universitys Risk Management Office. 6

7. 7 Claims: What We Need After an Incident Full Names and Addresses (Complete the Incident Report on the Risk Management website). Minimize email correspondence and ccs. Record observed facts and statements of the injured person. If the incident involves an outside group, we need the name of the group and a copy of any agreement of contract. If you observe a dangerous condition, report it for immediate resolution. IF YOU RECEIVE LETTER OF REPRESENTATION OR SUBPOENA, PLEASE CONTACT RISK MANAGEMENT IMMEDIATELY.

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9. 9 What We Dont Need After an Incident Do not speculate as to the incident cause or draw any conclusions. It is perfectly normal to express your person concern, but do not commit to the injured party that they will be reimbursed by the Chapter or by the University! Dont put in an email what you dont want to read in the Sunday newspaper!!!

10. 10 REALLY IF IT IS REALLY SERIOUS CALL RISK MANAGEMENT IMMEDIATELY, IF YOU OBSERVE, AS THE RESULT OF AN INCIDENT: – CRITICAL INJURY – SOMETHING VERY STRANGE DAYTIME: 814-865-6307 AFTER HOURS: 814-360-1956

11. Agreements & Contracts Alumni Chapters/Interest Groups/Societies are separate entities from the University and the Alumni Association – so, who are parties to the Agreement? (this can be confusing, especially when viewed from the perspective of an outside entity, such as a facility renting space to a Chapter event – they think we are all Penn State) College/Campus Societies are closely aligned with the Dean or Chancellor – as such, the University may be a legal party to an agreement or contract. Guidance and advice is available from the Alumni Association (contact your Regional Directors) or the Risk Management Office – after review, we may advise that you consult with your own legal counsel. (Examples) 11

12. Agreements & Contracts, cont. If the University and Alumni Association IS a party to the contract, then the contract must be submitted through the Alumni Association, who then submits it to Risk Management for review, processing and signature. These contracts may only be signed by specifically authorized personnel. FYI, the University does not have Sovereign Immunity!!! 12

13. A Reminder About Funding for College Societies College Societies serve at the direction of the Dean or the Chancellor. Bank accounts are to be maintained by the College – no additional bank accounts are permitted. Please work with your Colleges Alumni Representative or the appropriate Alumni Association staff. 13

14. Thank you…Questions? http://www.controller.psu.edu/Divisions/ RiskManagement/indexRM.html David Snowe, CPCU CIC CRM Insurance Manager Risk Management Office (814) 863-4241 dcs28@psu.edu 14