3.50.010    Risk management committee established; administrator

3.50.020    Objectives

3.50.030    Risk management committee; authority and duties

3.50.040    Self-insurance program and risk retention

3.50.050    Self-insurance program

3.50.060    Reserving and investing of the self-insurance fund

3.50.070    Long-term judgment or award fund

3.50.080    Self-insurance funds; receipts; disbursements

3.50.090    Payment of self-insured losses or claims

3.50.100    Procurement of insurance and services


(A)    The risk management committee shall be administered by the borough finance director or his risk manager designee. The committee shall consist of:

(1)    the Matanuska-Susitna Borough School District Assistant Superintendent for Finance;

(2)    the Matanuska-Susitna Borough School District Risk Manager;

(3)    the Matanuska-Susitna Borough Finance Director; and

(4)    the Matanuska-Susitna Borough Comptroller.

(B)    The members of the risk management committee may each designate a person to act as a committee member in the event of the committee member’s absence.

(C)    The borough attorney is legal counsel to the committee.

(Ord. 96-036AM, § 2 (part), 1996)

3.50.020 OBJECTIVES.

(A)    The Matanuska-Susitna Borough policy with respect to the management of all risks of accidental losses or claims shall have as its objectives:

(1)    the protection of Matanuska-Susitna Borough assets against the financial consequences of accidental losses or claims that are catastrophic in nature, and preserve the borough public service capabilities from loss, destruction or depletion;

(2)    the reduction and minimizing of long-term cost to the borough through activities that will identify, control, and prevent accidental losses or claims and their consequences;

(3)    through structured internal procedures, provide a constant reassessment of fluctuating exposure to losses and claims and the loss and claim bearing capacity of the borough as it relates to other financial resources such as insurance;

(4)    prorate and allocate the cost of retained losses and claims and the cost of insurance programs as determined from exposure units;

(5)    establish, to the extent possible, an exposure-free workplace and service environment for borough personnel and the user public, whereby safety and security may be enjoyed in the course of their daily pursuits.

(Ord. 96-036AM, § 2 (part), 1996)


(A)    The risk management committee shall have authority, responsibility, and duties for:

(1)    identification and prevention, to the extent possible, of all risks of accidental losses or claims;

(2)    selection of the appropriate risk management techniques for offsetting exposures to losses or claims through:

(a)    risk reduction;

(b)    risk transfer;

(c)    risk retention;

(d)    risk avoidance; and

(e)    other appropriate methods, including the purchase of insurance.

(3)    development of an information system, in coordination with existing systems, for timely and accurate recording of losses and claims, insurance premiums and other risk-related costs and information;

(4)    allocation of loss and claim payments and related costs within the deductible and self-insured retention levels, and all other risk management related costs and insurance premiums to the various budgetary divisions of the borough and school district;

(5)    continue the appropriate development and administration of the borough and school district safety program leading to the further reduction of accidental losses and claims; and

(6)    hold the monthly meeting of the risk management committee.

(Ord. 96-036AM, § 2 (part), 1996)


(A)    With regard to risk of accidental losses or claims, it shall be the policy of the borough and school district to self-insure, to an appropriate level, all losses and claims:

(1)    which occur with predictable frequency; and

(2)    which will not have a significant adverse impact on the borough’s financial position.

(B)    As a general guideline, the borough and school district will continue to self-insure progressively to greater retention levels on a per occurrence or claims-made policy of insurance as internal claims handling and risk management capabilities are more fully developed and demonstrated. Certain exceptions to this guideline will be allowed:

(1)    whenever necessary insurance coverage or services can be obtained only by the purchase of insurance policies;

(2)    when the borough and school district are obligated by law or contract to purchase insurance coverage and no alternative methods are acceptable; and

(3)    when market conditions dictate that a lesser retention level would be more prudent and financially responsible.

(Ord. 22-125, § 3, 2022; Ord. 96-036AM, § 2 (part), 1996)


(A)    The risk management committee is authorized to establish an appropriate internal service fund or funds for insurance, insurance-related contracts or services, litigation defense costs, and risk management.

(B)    The borough shall use monies in the fund on behalf of the borough and school district, for the following purposes only:

(1)    premiums for primary, excess, and umbrella insurance coverages to insure the exposures of the borough and school district;

(2)    premiums for fiduciary bonds and bonds required by the state of Alaska as a prerequisite for self-insuring;

(3)    payment for risk management and insurance-related contracts or services, including loss adjustment expenses and legal fees for defense of civil suits filed by plaintiffs;

(4)    insured losses or claims, up to the stated limits of deductibles or self-insured retention levels, as defined by following forms of insurance policies in effect at the time of the loss or claim;

(5)    self-insured losses or claims in excess of the limits of any policies of insurance that apply to the loss or claim, or self-insured losses or claims that are not covered by specific policies of insurance, but which have been determined to be a covered item by the risk management committee in accordance with MSB 3.50, and the appropriations and transfers to the fund; and

(6)    reimbursement of legal expense arising out of the defense of litigation brought against the borough and school district, for insured, self-insured and uninsured, losses or claims.

(Ord. 96-036AM, § 2 (part), 1996)


(A)    The risk management committee shall determine the amount of monies required to fund adequate reserves for present known losses or claims, estimated reserves for reported but not incurred losses or claims, estimated reserves for legal fees for defense of self-insured and uninsured losses or claims, estimated costs for purchase of required insurance and bonds and estimated costs for other risk management and insurance-related contracts and services.

(B)    The fund shall be invested by the borough’s finance director in a manner consistent with borough policy.

(C)    Earnings on investments of the self-insurance fund shall be retained in the fund and used for fund purposes only.

(Ord. 96-036AM, § 2 (part), 1996)


The finance director, when required by court order or when prudent financial responsibility dictates, may establish a fund for the payment of long-term judgments or awards. The finance director may delegate the management of the fund to a financial institution authorized to act as a trustee.

(Ord. 96-036AM, § 2 (part), 1996)


(A)    The finance director shall deposit all monies appropriated by the assembly, and other receipts from the following sources in the self-insurance fund:

(1)    recoveries of loss or claim payments, physical property salvage value recoveries and legal expenses made within the limits of the deductibles, self-insured retention and uninsured program;

(2)    return premiums, audit premiums, interest and other returns upon investments of the fund; and

(B)    No monies shall be dispersed from the self-insurance fund except for the purposes described in MSB 3.50.050.

(Ord. 96-036AM, § 2 (part), 1996)


(A)    Approval of the self-insurance program and risk retention per MSB 3.50.050 shall constitute authority for the risk management committee, and where prudent, the manager and school district superintendent, to negotiate and settle or approve and authorize settlements of losses or claims up to the following limits:

(1)    less than $50,000: The risk management committee will have the authority to negotiate and settle losses or claims up to this amount;

(2)    more than $50,000 but less than $125,000: The manager, in agreement with the school district superintendent will have the authority to approve losses or claims up to this amount; or

(3)    more than $125,000: The assembly or school board will have the authority to approve their respective losses or claims over this amount.

(Ord. 96-036AM, § 2 (part), 1996)


(A)    The procurement of all insurance and insurance-related services or contracts for the borough and school district will be coordinated through the risk management committee. Insurance with limits equal to the maximum foreseeable losses or claims shall be purchased:

(1)    when the potential loss or claim exposure exceeds the justifiable retention level as set forth in MSB 3.50.040;

(2)    when such insurance is available on a fiscally sound basis.

(B)    Insurance will be purchased only through reliable sources that will best serve the interests of the borough and school district. The objective will be to obtain all required insurance or services at the lowest cost to the borough and school district which is consistent with the desired levels of coverage or services, with insurance companies of proven financial status as set forth in Best’s Key Rating Guide.

(C)    The risk management committee shall be responsible for the purchase and maintenance of general broker services, insurance, and insurance-related services as best meets the needs, and cost within funding of the borough and school district, through methods including, but not limited to, open competitive bidding, request for proposals, negotiation with brokers or companies, or designation of a broker-of-record to purchase necessary coverages or services. Obtaining insurance and insurance-related products or services under this chapter is not subject to the requirements of MSB 3.08. The borough manager shall provide updates to the borough assembly as deemed necessary regarding the purchase and maintenance of general broker services, insurance, self-insured retention levels, and insurance-related services.

(D)    The maximum term of insurance policies or insurance-related services, subject to the normal rights of cancellation, shall be:

(1)    five years for property and casualty insurance; and

(2)    continuous for fidelity bonds.

(Ord. 22-125, § 4, 2022; Ord. 96-036AM, § 2 (part), 1996)