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OPBC Oregon Procurement Basic Certificate > Risk Management > Flashcards

Risk Management Flashcards

1
Q

DAS Risk Management components

A

Insurance Services
Claim/Lawsuit Management
Risk Consulting Services

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2
Q

DAS Risk Management- Insurance Services

A
  • Exclusive Statutory authority
  • Administer Self Insurance Program
  • Purchase Commercial Insurance/ Broker Services
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3
Q

DAS Risk Management- Claims/Lawsuit Management

A
  • Sole authority to pay Employment, Property & Liability claims
  • SAIF Corporation Workers’ manages Compensation costs
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4
Q

DAS Risk Management- Risk Consulting Services

A
  • Best Practices promotions
  • Risk profiles and consultations
    -DAS’ “go to” risk resource
  • No service fees billed for our time
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5
Q

What is Risk Appetite?

A

The Amount of risk exposure the agency is willing to financially accept of retain

3 levels: Risk Avoidance, Active Retention, Passive Retention

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6
Q

Risk Appetite: Risk Avoidance

A

Not engaging in an activity

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7
Q

Risk Appetite: Active Retention

A

Risk identification and assessment has been performed allowing agency to plan for the exposure

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8
Q

Risk Appetite: Passive Retention

A

” I didn’t know”
Agency is still financially responsible for the results associated with the activity

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9
Q

What are 5 Steps in Risk Management Process?

A

Identify
Access
Control
Finance
Administration

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10
Q

Contract Risk Transfer: 5 Methods

A

Select transfer and indemnification language
Know your insurance options
Conduct a risk assessment
Determine insurance requirements
Review Certificated of Insurance

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11
Q

What is purpose of Contract Risk Transfer?

A

Transfers financial risk of claims and lawsuits to other parties by using language within the contract or agreement
Your risk-> Contract Language = Contractor’s Risk

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12
Q

What are two methods of Transferring Risk?

A

Non-insurance and Insurance

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13
Q

What are examples of Non-Insurance Transferring Risk method?

A
  • Hold harmless agreements
  • Additional insured endorsement
  • Waiver of subrogation
    -Financial retention
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14
Q

What are examples of Insurance Transferring Risk method?

A

-Carrier provides coverage for a potential risk to the insured
-Carrier is paid a premium for insurance agreement

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15
Q

What is the Indemnity Clause?

A

An indemnification clause is a legally binding agreement between two parties specifying that one party (the indemnifying party) will compensate the other party (the indemnified party) for any losses or damages that may arise from a particular event or circumstance.

Agreement written into the contract
Reimburses the state of any claim due to the contract
Ensures the contractor retains the liability

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16
Q

Transferring risk created by vendors from state to the contractor happens:

A: By using DOJ approved contract template which have an Indemnity section and Insurance requirements
B: By avoiding doing business with certain contractors
C: By requesting the contractor to have insurance
D: By reviewing all the contractor’s work to ensure the cause no accidents

A

A: By using DOJ approved contract template which have an Indemnity section and Insurance requirements

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17
Q

Risk created by contractors are managed during the procurement process mainly by:

A: Asking the contractor to avoid causing accidents and/or claims
B: Transferring the risks to the contractor and ensuring they have appropriate insurance
C: Constantly supervising the contractor to make sure they do not harm anyone or anything
D: Requesting as much insurance as possible

A

B: Transferring the risks to the contractor and ensuring they have appropriate insurance insurance

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18
Q

Why is important to assess Risks in contracts?

A
  1. Ensures the contractor meets obligation under Indemnity (Risk transfer)
  2. Be able to explain exposures
    3.Document why (reasonableness)
  3. Best business practice
19
Q

What is OCCURENCE in Coverage Limit Definitions?

A

Amount the insurer will pay for claims resulting from a single event

20
Q

What is AGGREGATE in Coverage Limit Definitions:

A

The most the insurer will pay for all covered losses sustained during the specified policy period

21
Q

What is COMBINED SINGLE LIMIT in Coverage Limit Definitions:

A

A single dollar limit that applies to any combination of bodily injury and property damage

22
Q

What are risk transfer practices in Intergovernmental (IGA) and Interagency Agreements?

A

Between public entities ( Non-profits are NOT considered public entities)
Use Contributory contract language
Document Insurance for any subcontractors
Liability is based on the Oregon Tort Claims Act

23
Q

What is CGL?

A

Commercial General Liability (Insurance)

24
Q

True or False: Contract Amount DOES NOT drive the insurance amount

A

TRUE

25
Q

How do you determine CGL limits?

A

Use Risk Assesment Tools

26
Q

True or False: CGL does not require additional Insured Status (endorsement)

A

FALSE

General Liability Insurance (CGL) Require ADDITIONAL INSURED status (endorsement)

27
Q

What is PL?

A

Professional Liability

28
Q

What is PL insurance?

A

Insurance required of any person/ company providing professional advice or services.

29
Q

True or False: Professional Liability (PL) require tail coverage for a reasonable period after work competition ( approximately 24 months)

A

TRUE

Professional Liability (PL) require tail coverage for a reasonable period after work competition ( approximately 24 months)

30
Q

What is Technology E&O?

A

Technology Errors & Omissions

31
Q

What type of insurance do IT Service contracts need?

A

Commercial General Liability AND Professional Liability

32
Q

Examples of Best practices when preventing risk: what TO DO

A

Conduct a risk assessment for every agreement or contract
Require the appropriate insurance types and limits
Include Indemnity/ Hold Harmless clause in your agreements or contracts
COI should reflect the insurance type and limits requested in your contract
Request the “additional insured” endorsement on CGL, Auto and Umbrella/Excess policies

33
Q

True or False: Indemnity/ Hold Harmless clauses are a non-insurance transferring risk methods

A

TRUE

34
Q

True or False: Risk transfer does not need to be considered for Intergovernmental Agreements

A

FALSE

35
Q

What are the two insurances that are necessary for all contracts:
A. CGL and Auto
B. Professional and Pollution\
C. Crime Protection Coverage and Auto
D. Bailee’s coverage and CGL

A

A. CGL and Auto

36
Q

OCCURRENCE

A

the amount the insurer would pay for all claims associated with a single event

37
Q

AGGREGATE

A

the amount the insurance carrier would pay for all covered losses that occur during a policy period

38
Q

the amount the insurer would pay for all claims associated with a single event

A

OCCURENCE

39
Q

What is CIO?

A

Certificate of Insurance

40
Q

What is Certificate of Insurance? (definition)

A

Document evidencing the fact that an insurance policy has been written and includes a statement of the coverage of the policy in general terms

41
Q

The purpose of the Certificate of Insurance is to:
A. Have extra paper for my file
B. Verify the contractor is meeting our insurance requirements
C. So I can show my manager what a great job I did
D. To make sure the risk has been transferred because the contractor has insurance

A

B. Verify the contractor is meeting our insurance requirements

42
Q

True or False: By being listed as a certificate holder on the Certificate of Insurance confirm we have been given Additional Insured Status on the contractor’s insurance policy

A

FALSE

43
Q

True or False: It is OK to wait until after the contractor begins providing services under the contract to request and obtain the certificate of insurance

A

FALSE

44
Q

True of False: Insurance policies never change or expire therefore once I have a certificate of insurance from the contractor Inver need to ask for one again

A

FALSE

OPBC Oregon Procurement Basic Certificate (13 decks)

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