OCA parishes, institutions receive insurance bonus
Michael Herzak of Insurance Systems Group, Inc., and his two sons recently presented a check for $27,536.00 to His Beatitude, Metropolitan Tikhon, the result of a special Loss Control Benefit representing reduced claims and losses among those parishes and institutions that participate in the OCA Group Insurance Program.
“In 2006, the Orthodox Church in America established a Group Affiliation Program [GAP] offered exclusively through Insurance Systems Group, Inc. with GuideOne Insurance Company to be able to offer a special insurance benefit to OCA parishes, institutions and organizations,” explained Mr. Herzak. “Among many other benefits, it provides a Loss Control Bonus for reduced claims and losses within the group. When member churches work together to prevent and reduce losses, they can earn this Loss Control Bonus.”
When the program was established, the OCA made the decision to distribute back the bonus to the participating parishes and institutions.
“This year the loss ratio for the group was 17.5%, well under the required maximum loss ratio limit for a bonus,” Mr. Herzak continued. “Consequently, one hundred and three parishes and several institutions have shared proportionately in the bonus check. The proportion is based on the parish or institution’s premium compared to the GAP premium as a whole.”
The GAP also includes coverages not readily found elsewhere in the insurance industry such as a property coverage enhancement that gives 25% more coverage, subject to a $1,000,000.00 maximum at no additional charge, broad coverage for iconography, sexual molestation, directors’ and officers’ (trustees’) coverage and more.
“This is the second time such a bonus has been distributed, but it is over four times larger than the previous one,” Mr. Herzak added. “This means that member parishes have done a superb job of controlling their claims and losses. When they do, everyone in the group benefits.”
Insurance Systems Group, Inc. is the premier broker of property and casualty insurance to Orthodox churches of all jurisdictions in the US. Principals Michael G. “Mickey” Herzak, Michael G. Herzak, II and Daniel C. Herzak are unique in that they are Orthodox Christians who understand both the distinctive attributes of Orthodox churches and the coverage ramifications of insurance. They can be contacted at 1-800-860-3075 or through their web site.
GuideOne Insurance of West Des Moines, IA, is the largest writer of churches and related institutions in the country. They have been “A” rated by A.M. Best Co. Over the years GuideOne has paid out millions of dollars for OCA parish claims in an outstanding manner.