Lambent Risk Management Services, Inc.

Objective

The objective of Lambent Risk Management Services, Inc. is to effectively manage or control and prevent , reduce or mitigate the client’s actual or potential losses. We believe that it is in the best interest of the client and / or client manager to support, encourage or formulate, implement and monitor a formal risk management program to ensure the client’s continuing financial well being and to reduce their insurance costs.

Definition of Risk Management.

Loss control may be defined as any action taken to reduce either the frequency or severity of losses.

Risk management may be defined as the process of making and implementing decisions that will minimize the adverse effects of accidental and business losses on the client’s organization.

Risk Management Process

The risk management process involves the following steps:

Identification of potential loss exposures and their associated hazards which may interfere with the client’s basic objectives
Analysis of the potential loss exposures and their associated hazards and examining alternative risk management techniques to address them.
Selecting the appropriate risk management technique to address and control the loss exposure and it’s associated hazards.
Implementing the selected risk management technique.
Monitoring the implemented risk management technique (s) to determine if it / they effectively control the loss exposure (s)and it’s / their associated hazards.

Risk Management Techniques.

The following risk management techniques may be utilized to address and control loss exposures and their related hazards:

Application of insurance coverage provided by an insurance carrier.
Avoidance of a loss exposure which can not be insured, contractually transferred by a non-insurance contract, or retained.
Retention of the loss exposure by the client which can not be insured, avoided or transferred by a non-insurance contract.
Application of a non-insurance transfer of a loss exposure to another third party other than an insurance carrier.

As part of the risk management function, we must determine the most appropriate risk management technique to address and control the loss exposures of the client.

Management Support and Commitment to Risk Management

We believe that it is critical to have the client’s full managerial support and commitment to loss control / risk management. Without such support the client can not expect to contain their loss control and risk management expenses.

Loss Exposure / Hazard Identification, Analysis and Control

Lambent RMS, Inc. will carefully identify, analyze and control the client’s exposures to potential loss along with their associated hazards for their specific operations. The client’s operations will be inspected to determine and verify all operations and activities that could present a potential loss exposure and whether or not they are being adequately controlled.

Sources Of Analytical Information.

The following information will be obtained to identify, analyze and control potential loss exposures:

1. Physical Inspection Reports.

Physical inspection reports will serve to:

Verify the client’s actual operations and activities.
Determine all exposures to potential loss along with their respective hazards.
Address the client’s existing loss control / risk management program and make recommendations as deemed necessary or appropriate.

2. MVRs

MVRs will serve to provide a historical overview of an individual’s driving record and determine if there is an adverse driver exposure on a particular risk.

3. Property Appraisals

Property appraisals will serve to verify accurate insurance to value for all insured client’s property.

4. Lambent RMS, Inc. Risk Assessment Questionnaire.

Lambent RMS, Inc.will serve to determine the extent of all the client’s operations / activities and indicate potential loss exposures / hazards.

5. Loss History

Currently valued prior four years company loss runs will serve to:

a. Indicate past and predict future incurred losses.
b. Address the client’s actual or potential loss frequency and severity.
6. Financial Statements

6. Financial Statements Will Serve to:

Determine whether or not the client’s current financial position is sound or not.
Determine whether or not the client has sufficient liquidity and working capital to sustain and / or implement a viable risk management program

Lambent RMS, Inc. Risk Assessment Questionnaire.

The Lambent Risk Assessment Questionnaire will address the following issues:

1. Management Commitment to Risk Management (including premises, equipment and vehicle maintenance, employee hiring and training, security, housekeeping)

a. Strong management support for and commitment to existing formal written (and proposed) risk management programs.

b. Implementation of a formal written risk management program to identify, analyze, and control their potential loss exposures and associated hazards. An accident review committee to review accidents and determine whether or not changes should be made to existing risk management programs to prevent the same type of accident (s) from re-occurring.

c. Good hiring and prescreening practices

d. All employees and volunteers are adequately educated, trained and / or experienced to perform their specific assigned duties and activities on behalf of the client

e. Good housekeeping practices are followed with a clean premises with modern equipment and machinery (i.e. heating plants, etc.) subject to regular on-site inspections along with related reporting documentation by the client’s employees and volunteers. Housekeeping for the facility is adequate and appropriate for the types of operations and activities being conducted by the client.

f. All buildings within the facility meet all applicable local, state or federal fire, electrical system and life / safety codes, ordinances and laws as required for the related operations of the risk. All smoke / fire detectors / alarms and fire extinguishers are inspected and maintained
on an ongoing basis.

g. Buildings in excess of 20 years in age have been upgraded and renovated within the last 10 years or so and have proper documentation to support such rehabilitation.

h. All premises are adequately secured against unauthorized persons. Security systems and / or other measures are appropriate for the exposures involved.

i. All owned vehicles and machinery and equipment incidental to the maintenance of the building and / or premises including grounds are adequately maintained and records are archived.

2. Stable Financial Condition.

The client has adequate liquidity and working capital to sustain and / or implement viable risk management programs.

Note: typically a client which is financially strong will also have the necessary financial resources to address other areas of management.

3. Low Loss Frequency / Severity.

The client is experiencing low loss frequency and does not have activities which lend themselves to loss severity. Existing risk management programs demonstrate historically low loss frequency and severity for the risk.

Specific Risk Management by Line of Business

Lambent RMS, Inc. believes that client’s which meet the following specific risk management requirements by line of business will be a risk that will qualify for the best insurance markets:

1. Property / Boiler & Machinery / Inland Marine / Crime

Property:

Accurate Insurance To Value exists and is supported and verified by reputable real and personal property appraisals.
Buildings are in good condition and verified by inspection. Buildings over 20 years old are upgraded with regard to the heating plant, roof, wiring, plumbing, etc.
Housekeeping practices are adequate for the operations involved along with proper storage and control of flammable and / or hazardous materials.
Electrical systems are in good condition, appropriate for the premises –operations and comply with the National Electrical Code. No temporary wiring is used.
Smoking is restricted to designated areas inside or preferably outside the facility furnished with proper ash receptacles.
Periodic fire drills are conducted.
All major appliances, machinery and equipment are properly grounded.
Heating plants are inspected, cleaned and maintained at least once per year, especially natural gas powered heating plants.
Buildings are protected against possible vandalism and damage from burglary by dead bolt locks, exterior lighting, alarm devices, protective coatings and barriers over stained and other ornamental glass.
Plumbing is not exposed to freezing conditions.
Private fire protection is adequate for the occupancy and related operations.
All non-commercial type cooking facilities meet the following protective safeguards:
- Fire extinguishers are easily accessible to all cooking areas and heat sources.
- Cooking areas and all surfaces are clean and free from grease.
- All food items are properly stored and refrigerated.

Boiler & Machinery:

All boilers; fired and unfired pressure vessels; refrigerating, mechanical, and electrical equipment; compressors, etc. are maintained in good operating condition and subject to periodic inspections by licensed inspection companies with written maintenance records kept verifying routine maintenance and operating condition of the equipment.

Inland Marine:

Accurate Insurance To Value exists and is supported and verified by reputable property appraisals.
Fine art and valuable artifacts are accurately described, scheduled, valued and protected by anti-theft / burglary systems.
All valuable items are stored and secured in a locked safe and accounting records and valuable papers are kept in fire resistant cabinets.
EDP equipment is properly protected against power surges.
All mobile equipment is stored in a secured area or building when not in use.
Maintenance of mobile equipment is performed in accordance with manufacturer recommendations and documentation kept in file for the life of the equipment.

Crime:

The client practices the Four D’s of crime prevention as follows:

Deny access or entrance to the premises: key controls; burglar bars, etc.
Deter attack to premises: adequate exterior lighting
Delay entry into or exit from the premises: locks, alarms, etc.
Detect an intrusion into the premises and theft of property: alarms

Proper controls are in place for handling and safeguarding money. All money and checks are kept in a locked safe and frequent bank deposits made to prevent large sums of money and securities from being exposed to theft and burglary. Checks are stamped for deposit only.

All client buildings which house fine arts, manuscripts and other articles of value are protected by adequate protective safeguards such as dead bolt door locks, window locks, alarm systems, surveillance cameras, watchman or guard service and other protective devices and measures to prevent unauthorized access to the premises; also all vulnerable areas to theft and burglary within the premises have access restricted to unauthorized persons.

Appropriate check writing and cashing procedures are in place and followed by all client employees and other individuals with access to checks and money. Periodic audits are made to detect and / or prevent possible embezzlement by church employees and volunteers. Persons with access to money and securities are closely supervised and monitored.

2. General Liability

All employees and volunteers (if any) are adequately trained, experienced and qualified to perform their assigned duties and activities on behalf of the risk. Also, the type of training provided to volunteers and exactly what the volunteers do for the risk must be determined. (this depends of course upon the operations of the client)

All buildings have controlled access and all grounds are protected with perimeter fencing.

Life / safety controls and devices (smoke/fire detectors and alarms) are present, meet all local and / or state requirements and are hard wired with a battery operated backup system.

Regular inspections of the premises (inside and outside) are conducted by designated client personnel for hazard identification and control with documented results and recommendations in file.

All elevators and escalators (if any) are routinely inspected and maintained by licensed service companies.

There is a formal written risk management program in place to prevent sexual abuse or misconduct. (this applies in only certain situations)

The risk has a liquor liability management program in effect for those church sponsored activities which may have a “host” liquor liability exposure or special events which may involve the sale of alcoholic beverages. (this applies in only certain situations)

Clients which employ independent contractors are protected by the independent contractor by having general liability limits at least equal to the general liability limit carried by the risk, names the risk as an additional named insured and has a hold-harmless / indemnification agreement in effect and in favor of the client.

Any third parties that lease space from the risk provide the client with the same kind of protection as do independent contractors.

Clients which are engaged in “joint ventures” or other business opportunities with other third parties have clear contractually defined legal liability obligations and appropriate hold harmless / indemnification agreements. (this should be reviewed with the client’s licenses practicing attorney)

Clients which operate radio or television operations are cognizant regarding potential personal injury exposures including libel, slander, defamation of character, etc. and have specific guidelines in place to control what is being said and to whom. (this applies in only certain situations)

3. Professional Liability

All client professional employees should have the appropriate educational background, training, and be properly licensed in those specific areas of expertise. The client should also support continuing education for their professional employees.

Reference and background checks (including prior criminal history) are conducted on all of the client’s professional employees.

(the following only applies to client’s with “counseling” operations)

There is a formal written risk management program in place to prevent or minimize client’s legal liability loss exposures. Such a program involves the establishment of “boundaries” to define what is considered as permissible behavior and how counseling sessions are to be conducted, including:

Where the counseling sessions are to be conducted.
The frequency and time frame involved in such counseling sessions. Definitive or restrictive time frames should be established and followed.
Establishment of guidelines regarding appropriate and inappropriate touching.
Establishment of guidelines for telephone counseling including the time of the day that such calls are made, the frequency of such calls, and the length of time involved.
Establishment of a policy concerning the acceptance of gifts from and socializing with counseled individuals.

Counseling activities are conducted in a controlled environment to avoid potential sexual abuse or molestation incidents which could result in significant losses. A controlled environment includes the following:

Counseling is only done on the church premises and in open rooms with door ajar
Counselors are refrained from using sexually or romantically suggestive speech
Counselors are instructed as to what constitutes appropriate Vs inappropriate touching.

Counselors have formal education, training and experience within the specific areas of counseling activities being conducted. Non trained or inexperienced individuals are not permitted to conduct such counseling activities.

4. Commercial Automobile

Client employees and volunteers who use their personal vehicles for church related business have valid in force automobile insurance with adequate liability limits. All drivers are properly licensed for the type of vehicle they are driving, are adequately trained to use that vehicle and are able to verify that their vehicle is in good operating condition.

The client has a viable vehicle maintenance program for all their owned vehicles to ensure adequate operating condition of those vehicles (especially for multi-passenger transportation vehicles).

Client owned automobiles should be secured in a locked building or fenced in yard to protect them against theft and vandalism.

Client owned vehicles that are leased or loaned to other third parties are subject to appropriate controls such as:

All drivers have valid and appropriate driver licenses for the leased or loaned vehicles which they are operating.
All drivers have acceptable MVRs (driving records) which meet the same requirements as for the client’s own drivers.
All drivers have valid automobile insurance with limits of liability at least equal to the limit of liability carried by the client.
All leased or loaned vehicles are in good operating condition.
A clear understanding exists as to which party’s automobile insurance will apply in case of an accident.

If chartered vehicles are used by the client there should be a contractual agreement in place which indicates which party is legally liable for bodily injury and property damage to third parties and physical damage to the vehicle. Independent contractor protection should be in place.

The client has implemented and practices proper driver controls, for example:

Driving records (MVRs) are required for all drivers and are obtained prior to adding them to the client’s automobile policy.
Driving records of all drivers are checked as part of the authorization process to drive automobiles on behalf of the client.
All drivers are accounted for in terms of who they are and what driving duties they perform for the client.
All drivers have a valid unrestricted drivers license and are at least 21 years of age .There should be no exceptions.
All drivers are properly licensed and trained to operate their assigned vehicles.
All drivers are responsible for and conduct pre-trip vehicle inspections.
The client has a proper disciplinary action plan for drivers who have poor driving records (i.e. major moving violations, at fault accidents, etc.)
No driver has any major moving violations within the last three years. Major moving violations include:

Leaving the scene of an accident
Homicide involving a vehicle
Using a vehicle to elude a police officer
Hit and Run
Driving with a suspended or revoked license
Manslaughter while using a vehicle
Commission of a felony while using a vehicle
Racing or drag racing
Failing to report an accident
Fraudulent use of a drivers license
Careless or reckless driving
DUI/DWI or possession of open liquor and / or a controlled substance.
Speeding 20 mph or more over a posted limit
Permitting an unlicensed person to drive

No more than three minor moving violations within the last three years. Minor moving violations include but are not limited to:

Speeding less than 20 mph over the posted limit
Following too close
Failure to stop at a stop sign or light
Failure to yield the right of way
Faulty brakes
Improper stop on a highway
Other lane usage violations
Wrong way on a one way street or road

The following are not be considered as moving violations:

Any motor vehicle “equipment” requirements of the vehicle and traffic laws, except for brakes
Failure to display proper number of plates provided such plates are in existence.
Failure to have in possession operator or chauffeur’s license provided there is one in force. It is important that we obtain and verify the driving records of all authorized drivers or drivers who have access to the client’s vehicles. The number of drivers should ideally match the number of self propelled vehicles listed on the automobile schedule.

SIC/NAICS codes for Lambent's services include:

SIC CODES:

6324 Hospital and Medical Service Plans
6331 Fire, Marine and Casualty Insurance
6351 Surety Insurance
6411 Agents, Brokers and Service

NAICS CODES:

524298 Insurance Advisory Services
524210 Insurance Agency and Brokerage Services
524298 Insurance Coverage Consulting Services