What insurance coverage is provided for Sigma Chi chapters that are members of the Risk Management Foundation?

Chapter membership in the Risk Management Foundation (RMF) includes the following insurance and limits as required under Sigma Chi Governing Laws (ECR 6.02-i-4): General Liability Insurance.

E6.02-i-4 All U.S. 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. Canadian chapters are required to provide proof of a minimum of $1,000,000 Canadian general liability coverage naming Sigma Chi Fraternity/Corporation as additional insured. General liability insurance policy coverages for all chapters must include host liquor liability coverage and hired/non-owned auto coverage. 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.

Undergraduate chapters participating in the RMF program are also provided Directors & Officers Liability coverage and Dishonesty/Bond (Crime) coverage.

What insurance coverage is provided to Sigma Chi house corporations that maintain membership in the RMF?

House Corporation membership in the RMF (via subscription fees to the Property Program), includes General Liability coverage as described above, Excess Liability coverage for the house corporation entity and the individual volunteers, Directors & Officers Liability coverage, and Dishonesty/Bond (Crime) coverage.

Participation in the Property Program at any level includes the coverages in the paragraph above. Additionally, RMF makes available the following coverages: Commercial Property, Equipment Breakdown (Boiler/Machinery), Cyber Security Liability, and stand-alone Directors & Officers Liability for house corporations without a chapter house. 

Effective 2014, RMF is also able to provide Workers’ Compensation coverage. Please call us for details. All chapters and house corporations are reminded to comply with their local state workers' compensation laws.

 

Do the Liability and Excess Liability policies provide coverage for undergraduate chapters, alumni advisors, and other volunteers?

Each chapter must provide proof of insurance as required under the Sigma Chi Governing Laws (ECR 6.02-i-4). Undergraduate chapters are afforded protection provided that the chapter is abiding by the RMF and Sigma Chi risk management and alcohol policies.Excess Liability insurance extends additional coverage to all other insureds, such as alumni advisors and other volunteers while they are acting on behalf of Sigma Chi Fraternity. Excess Liability insurance does not protect the chapters or undergraduates. 

Do the liability and Excess Liability policies exclude, restrict, or eliminate coverage?

Yes. The insurance provided as part of membership in RMF contains several important exclusions or coverage restrictions. For chapters and undergraduate officers, the insurance provided through the RMF is always excess of any other insurance. This insurance does not provide for or replace your personal insurance protection.

Insureds are only covered by the RMF's insurance under the following conditions:

  1. Only while acting in accordance with Sigma Chi Fraternity and RMF policies.
  2. Only while acting in their official capacity.
  3. Only while acting within the scope of their duties.
  4. Only for their activities on behalf of the Fraternity insureds.

RMF insurance coverage is also specifically restricted or eliminated when other types of conduct are involved. These include, but are not limited to:

  1. Hazing of any kind
  2. Criminal acts/alcohol consumption by minors 
  3. Intentional acts/assault & battery
  4. Sexual abuse or misconduct
  5. Violations of Fraternity or RMF policies

 

Do the RMF insurance policies cover accidents or injuries to members sustained during Sigma Chi Fraternity athletic (i.e. intramural) events?

No. This is a common question, and it is important to understand that participation in Sigma Chi athletic activities is voluntary. Members and guests assume the risk of injury and participate "at their own risk." Claims in this area are normally covered by personal health/medical insurance.

Does the RMF's insurance cover members' medical costs for accidental injuries?

No. The RMF insurance coverage is not an accident and health policy. Claims in this area are normally covered by personal health/medical insurance.

Can undergraduates or alumni volunteers be named in a lawsuit?

Yes. Chapters, chapter officers and other undergraduate members are often named in lawsuits. While not often, house corporations, their members, advisors and other volunteers have been individually named in legal actions. The Named Insureds under the RMF policy are subject to the terms, conditions, and limitations of the insurance.

As an undergraduate, how is my personal insurance or parents' insurance affected?

You should always report any potential insurance claim to your personal insurance agent or carrier. The insurance provided as part of RMF membership is in excess of any other insurance available to you, such as your personal or parents' automobile or homeowners insurance.

As a volunteer, how is my personal insurance affected?

You should always report any potential insurance claim to your personal insurance agent or carrier. Where permitted by law, the insurance provided for volunteers under the RMF policy is primary and will stand ahead of your personal insurance.

Does the RMF insurance provide auto liability coverage for undergraduates, alumni officials, or other volunteers if their automobiles are being used on Fraternity business?

No. Because of State "Automobile Financial Responsibility" Statutes, (laws that require owners or operators of an automobile to maintain primary auto insurance), the operator and owner must rely on their own automobile insurance. RMF insurance provides Hired & Non- Owned Auto coverage to other insureds that may potentially be responsible for auto accidents. This coverage is specifically in excess of any other auto liability insurance that may be available.

Does the RMF insurance cover an undergraduate's or volunteer's personal property?

The RMF insurance program does not cover loss or damage to personal property--i.e. computers, bikes, books, clothing or other personal items. Usually, loss or damage to your personal property is easily insured under renters insurance or your personal or parents' homeowners policy.

Does RMF insurance cover damage to my automobile if it is damaged on Fraternity property or when in use on Fraternity business?

No. As with loss or damage to other personal property, your automobile is not covered by the RMF insurance program.

How are the total RMF program liability premiums determined?

Total liability contributions are determined by the underwriters to the RMF insurance policy. Some of the more important factors include:

  1. RMF history of premiums paid to carrier versus losses paid to insureds
  2. Status and development of open claims
  3. Deductibles and coverage limits
  4. Exposures, both number of chapters and number of individual members
  5. Overall loss control response and compliance efforts

How are individual chapter membership subscription fees determined?

Chapter membership subscription fees are reviewed and determined in accordance with the RMF membership allocation formula. Some of the more important factors include:

  1. Chapter size (as averaged over the prior school year)
  2. Chapter claims history (especially, the most recent three years)
  3. Chapter loss control response and compliance efforts 
  4. Other risk management education activities and programming

 

How are the membership subscription fees calculated?

A chapter’s membership subscription fee is calculated by taking the membership report as submitted by the chapter to the General Fraternity as of the 1st of each month from September to May (based on the previous school year). The highest and lowest membership counts are then discarded, and the remaining counts are averaged together. This average has been determined to appropriately and equitably account for the average chapter membership over the course of the prior school year.

How can we decrease chapter membership costs?

  • Reduce your exposures by strictly following the law, Sigma Chi Fraternity and RMF alcohol and drug policies, and the RMF insurance policies.
  • Respond and comply promptly with loss control requirements.
  • Inform in writing when your chapter hosts risk management programming and when life safety improvements are made to the chapter house or residential facility.
  • Implement the Risk Management Chairman position and risk management committee into your chapter's executive structure.
  • Develop ongoing risk management efforts to provide consistent education and awareness to the membership.

How can we decrease property subscription fees for chapters and house corporations?

  • Reduce your exposures by focusing on life safety improvements, such as fire protection and alarm systems.
  • Ensure all protection systems are always operating properly with consistent monitoring and professional servicing each year.
  • Maintain effective security systems to protect the property and contents.
  • Participate in the Life Safety/Loss Control inspection program and respond in writing to promptly confirm compliance with any loss control requirements.
  • Develop and implement a short-term plan to install a complete sprinkler system.

 

Do claims by other fraternities and sororities affect RMF and our chapter's rates?

Yes. Although the most important factor is always your own chapter's and the fraternity's total loss record, the loss record of the whole fraternity world does have an effect, as well. Because the insurance marketplace for fraternities is limited, any significant catastrophe or precedent-setting legal claim can have a broad impact in this market.

What are the benefits of a "group" policy?

Group policies have been proven to offer the broadest coverage at the most affordable costs. They provide continuity and often include additional services, such as educational programming and loss control assistance, as well as chapter house inspections.

When are the RMF membership subscription fees billed and payable?

Statements for each new program year are distributed via e-mail in early August. Payment is due in full by September 15, unless the chapter opts for the half or monthly-payment plan.

If membership contributions are not paid by the due date, membership in the RMF program may be suspended and insurance coverage terminated. Without insurance, individual chapters and their members may become personally liable for any claims that might arise.

 

How often does the RMF review its insurance program?

The RMF Board of Directors reviews various aspects of the risk management program annually. Additionally, Sigma Chi Fraternity's Executive Committee reviews the RMF Board's recommendations annually.

What are the RMF Program limits of coverage?

The limits of coverage for chapters and undergraduate officers are $1,000,000 Per Occurrence. The limits of coverage for all other insureds under the RMF insurance program are $11,000,000 Per Occurrence.

Who do we contact with questions?

At HQ:RMF Executive Director 1714 Hinman Ave Evanston, IL 60201 RMF@sigmachi.org RMF insurance broker:James Favor, Favor & Company, Inc. www.jrfco.com 14466 E Evans Ave Aurora, CO 80014-1409 Phone: (800) 344-7335 or (303) 750-1122