Let’s face it—most students don’t have to think about insurance matters. Usually, “insurance” has been something your parents have had to deal with—not you. Once you were initiated into Sigma Chi Fraternity, you may have heard about “Risk Management Foundation” and “RMF,” but these terms usually get your attention only once you find out that your chapter owes money to the Risk Management Foundation.

Fraternal groups are traditionally very difficult to insure, both in terms of property (think “chapter house” or the like) and liability (think “situation that arises in which some kind of legal responsibly exists”). In response to this, the Fraternity founded the RMF in 1988 to not only educate chapters on risk management and assist them in times of loss, but also to function as a not-for-profit foundation that secures the most affordable insurance coverage available in the fraternity market. In other words, the Fraternity and the RMF understands how expensive insurance is and does its best to make the cost impact upon the undergraduate chapters as reasonable as possible.

 

Who is insured and why it matters

Before we dig into that, this is a good place to remind everyone about the terms under which each Sigma Chi Chapter must be insured, as it is spelled out in the current Governing Laws published in the Standard Operating  Procedures manual:

ECR 6.02-i-4: All undergraduate chapters are required to provide proof of a minimum of $1,000,000 general liability coverage naming Sigma Chi Fraternity/ Corporation as additional insured. All local groups must provide proof of general liability insurance, consistent with the requirements listed above, naming Sigma Chi Fraternity/Corporation as additional insured before they are duly installed as a chapter of Sigma Chi. Because of this, the RMF is charged with the task, every year, to ensure that all Fraternity chapters are properly insured and protected.

And now to the question of “who is insured?” The following are the named insureds under the RMF policy provided by the Lloyd’s Fraternity Program:

 

First named insured:

The Risk Management Foundation

 

Other Fraternity named insureds:

Sigma Chi Fraternity

Sigma Chi Corporation

Sigma Chi Foundation

Sigma Chi Leadership Institute

Constantine Capital, Inc.

Blue & Gold Travel

 

The “named insured” also includes members of the Risk Management Foundation that are:

  1. “Chapters” and “Colonies”  Those collegiate undergraduate organizations that are organized, chartered, or recognized by and whose affiliation with the “named insureds” is acknowledged to exist by the governing body of the First Named Insured at the time of loss.
  2. “Undergraduate Officers” Individuals who are undergraduate collegiate students that hold the positions of President (Consul),Vice President (ProConsul), Treasurer (Quaestor), Secretary (Annotator), Pledge Educator (Magister), Tribune (Alumni Relations),Chapter Editor,Historian, Risk Manager, Recruitment Chairman, Event Chairman, House Manager or Scholarship Chairman of a “Chapter” or “Colony” whose affiliation with the “named insureds” is acknowledged to exist by the governing body of the First Named Insured at the time of loss.
  3. “Housing Organizations” and “Alumni Organizations” Housing or alumni groups, including but not limited to, House Corporations or Associations, Alumni Corporations, Associations, Chapters or Clubs, or Chapter Educational Foundations, whose affiliation with the “named insureds” or a “Chapter” or “Colony” is acknowledged to exist by the governing body of the First Named Insured at the time of loss.
  4. “Directors and Officers” Individuals other than “undergraduate insureds”, who are directors and officers including but not limited to, elected or appointed directors, officers, partners or trustees, each board, committee and the members thereof, and any other recognized director or officer positions affiliated with the “named insureds”, or with any “Housing Organization”, or “Alumni Organization” whose affiliation with the “named insureds” is acknowledged to exist by the governing body of the First Named Insured at the time of loss.
  5. “Individual Insureds" Individuals other than “undergraduate insureds”, including but not limited to, volunteers, advisors, house directors or housemothers, and agents or other personnel of the “named insureds” or of a “Chapter”, “Colony”, “Housing Organization”, or “Alumni Organization” whose affiliation with the “named insureds” or a “Chapter”, “Colony”, “Housing Organization”, or “Alumni Organization” is acknowledged to exist by the governing body of the First Named Insured at the time of loss.

 

However, these named entities are only covered by the RMF’s insurance policy while acting within their official capacity and/or directly within the scope of their duties in accordance with the schedule of insured exposures (in which an “exposure” is a position or commitment considered precarious and risky) on file with James R. Favor & Company and whose membership is acknowledged to exist by the governing body of the Risk Management Foundation at the time of loss.

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