As a Board Member since 2003, and now the Chairperson of the Board of Directors, I have witnessed the evolution of the Ohio School Plan (OSP) from its humble beginnings. The OSP was created to help school districts across the state obtain insurance coverage when a major insurance carrier exited the school insurance market. Over the years we have increased our product offerings, services and have expanded beyond public schools and now offer our products and services to developmental disability districts, Information Technology Centers, councils of government, and community colleges among others.
As a Board we recognize the importance of each of our members, and our commitment is to each of you. We pride ourselves on being fiscally responsible and know that each of you do as well. We continuously review our financials and make sure we remain financially strong. I am pleased to say that we are as financially strong as we have ever been. With that being said, we have carefully reviewed our financial position and are very excited and pleased to announce that on April 14, 2015, the board unanimously approved a one-time dividend in the amount of $500,000 to be paid to the OSP membership.
All members who have been with the OSP for the last two or more consecutive years that are active members on September 1, 2015, will be eligible for the dividend. The dividend will be based on your years of membership, premium contributions and loss history. Many of you have been long time members and have contributed to the OSP’s success and growth. We are excited that our current financial position allows us another way to thank you for your unwavering commitment to our program.
The calculation of the dividend is split into two categories--premium contributions and loss ratio. The premium contribution is a component of a member’s expiring premium and years of membership (capped at a five year maximum). This calculation accounts for 40% of a member’s dividend. The second component of the calculation is based on a member’s loss ratio (losses/premiums). This also includes a factor for incurred but not reported claims over a five year period. This portion of the calculation represents 60% of a member’s dividend.
The following example illustrates how the dividend is calculated: A five-year member with an expiring premium of $50,000 would receive $815 for their premium contribution portion. This same account with a loss ratio of 30% over that same five years would receive $1,250 for their loss ratio portion for a total dividend payment of $2,065.
We are extremely pleased to be able to make this dividend payment to our membership while still maintaining our financial strength and integrity. Your Ohio School Plan representative will be able to share those payment amounts with you once they have been completed. Again, thank you for your commitment and support of the Ohio School Plan. It is truly humbling.
Chairperson of the Board
Ohio School Plan