Insurer cans Huron Schools

District is too risky to manage.
Alissa Widman Neese
May 7, 2013

 

So says Ohio School Plan, a group providing coverage to nearly 300 schools, which announced this past week it is dropping the district from its insurance plan July 1.

Representatives from Hylant Group, a third-party insurer representing the Ohio School Plan, met with district treasurer Mike Weis this past week to discuss the group's concerns, according to an email Weis sent to school board members the Register obtained through a public records request.

Open the PDF below to read the email and other emails related to the district's insurance.

The organization's reasons for dropping Huron Schools include:

•Threats of continued litigation and an inability to determine potential possible costs.

•Lack of board focus and direction.

•Inability to price due to the "turmoil."

Huron Schools is facing the aftermath of a 3-2 vote in April to fire superintendent Fred Fox, a climax after a year of investigation, termination and court proceedings costing the district more than $140,000. 

Fox's termination came on the heels of allegations he improperly submitted reimbursement requests for expenses after a trip to Arizona; maintained an inappropriate business relationship with a district vendor; and carried on an extramarital affair during school hours using school computers and his school email address.

Fox appealed the termination and is suing the three board members who voted to fire him for more than $175,000, in addition to his back pay. Board member Donna Green alleged defamation and filed a counterclaim shortly after, suing Fox for more than $25,000.

"As they continue to deal with all the matters at hand, additional litigation may arise," said Joe Seay, president of Hylant Administrative Services. "It gets to the point where we have a very difficult time, maybe an impossible time, setting prices, terms and conditions of an insurance policy. You can't predict how this is going to go."

Ohio School Plan has only dropped a district one other time in its 11 years of operation, Seay said.

"This is a big deal from our standpoint," he said.

Huron Schools is now hunting for a new insurer. School officials have arranged meetings with three companies and hope to select a new coverage plan by the June school board meeting.

Finding a new plan poses several problems, including possible high costs and a limited number of school insurers to pick from, Weis explained in his email. 

The Ohio School Plan cost the district about $38,000 per year, Weis said.

"Not sure what our course or action will be if we cannot get insurance," Weis said in the email the Register obtained.

It's still undetermined what coverage the Ohio School Plan will provide for current issues, according to the email. The district will receive a written notice with more details "after the various lawsuits are reviewed," the email said.

Board president Scott Slocum said he wasn't "totally surprised" the Ohio School Plan dropped Huron Schools, but he is confident the district will have another policy in place soon.

"Since the first litigation action taken by (board member Kevin Asher) last year, I knew the carrier might possibly take a good, hard look at our relationship," Slocum said. "That's what insurance carriers do."

 

Comments

nobodyfromnowhere

Not surprised at all. In fact myself and several others called this one months ago if the board followed the path they have. Be interesting to see how much this costs the district now. The bill for the board majority's foolish folly just keeps going up!

local man

"Since the first litigation action taken by (board member Kevin Asher) last year, I knew the carrier might possibly take a good, hard look at our relationship," Slocum said. "That's what insurance carriers do." Mr Slocum - its not Mr Asher's action that created this insurance action - its more like the three board members who went with their actions prior to letting an ethics committee provide you guidance or by your actions after the recommendation to reinstate occurred and you ousted him anyway. The dollars spent will continue to climb, but congratulations on having the distinction of being only 1 of 2 schools being dropped from the insurance plan.

Tsu Dho Nimh

The fact that one board member attempted to take action against the other board members and the district is an issue. If you recall, Judge Binette said Asher's claim was unfounded and dismissed it. Asher also made ugly allegations against several district employees, including the board president in his second suit filed back in October. His allegations against the board president were again proven to be unfounded (evidence in the Fox hearing actually support this!). What insurance company would want to take the risk of this type of behavior? Mrs. Green's lawsuit against Fred Fox is against him as an individual, not Mr. Fox the employee.

Julie R.

What kind of insurance carrier is this, anyway? They were right there to take $38,000.00 a year and now they want to drop them because they might have to pay out on the insurance for the first time?

All the other schools around better take notice of this and drop these clowns!

Justme...

Happens all the time. You pay forever on home owners insurance. You file a claim. They pay the claim. They drop you. Frustrating.

abigbear

RIGHT THERE go figure want to collect dont want to pay out

Nemesis

Julie, you DO understand how insurance works, don't you?

You get a DUI, and your auto insurance carrier is likely to drop you, too.

Julie R.

Of course I understand how insurance works. Maybe not for a DUI (I'll never have to worry about that --- I can't stand liquor) but I know how all other insurance works. I've paid house insurance for years but never had a claim until last year. (hail damage on the roof) My insurance company (State Farm) sure didn't drop me. Neither did the premiums go up.

Nemesis

That's one claim in many years; it doesn't indicate a huge increment in risk in short time. Apparently you DON'T understand how insurance works. Having had insurance for a while doesn't mean you understand the underlying principles, which your comments demonstrate you don't.

Kelly

The school board is clearly a liability. I don't blame the insurance company at all for dropping them.

ByeByeHuron

Insurance companies are in business to make money,as a result of the actions of everyone involved, the Huron school district has become a liability to them. There have been no winners here, it is truly unfortunate that poor decision making followed by more poor decision making has resulted in this but these are the implications.There is no magic bullet,no miracle cure to undo the damage that the city of Huron has undertaken.It is time for every citizen to take a good look at themselves and at those they have selected as leaders on every level and really consider why they have chosen them and who will truly do what's best for everyone,not simply what's best for their own interests or for what their last name is.

Julie R.

One would think if any insurance company would have been justified in dropping an insurance plan, it would have been the one for the city of Sandusky, especially after that four year Nuesse fiasco and all those rent-a-judges.

underthebridge
whocares

I believe the blame can be placed on both sides. An abitrator should have been brought in.

phroggy

Maybe they should just push the students harder so they can get more grant money to cover the cost of the high risk insurance they will need to pay.

ByeByeHuron

Exactly, they should place even more emphasis on athletics so that they can get perhaps another large donation for an even bigger stadium.SBC trophies don't grow on tress you know.

Darwin's choice

" I did not vote for ANY of the current members of the Huron School Board!"
So, now without the insurance coverage, are the board members themselves going to be liable for the expenses accumulating?

Justme...

Who says they are without coverage? They aren't being told these lawsuits aren't covered. They are being told they have to find new coverage by July 1 for future coverage. Read the article.

Tsu Dho Nimh

Justme..you are correct. That is exactly what the article says. If the policy was in force during the time period of the "actions" in the lawsuit took place, and the "actions" are covered by the policy, the insurer has to take care of it. The insurance company will no longer insure the district beginning July 1.

Darwin's choice

7/1/2013 coverage ends. Then what? Good luck getting anyone to cover them!

eriemom

If you were an insurance underwriter would you recommend offering coverage? And if so, at what cost to the taxpayer?

JACKEL

I think a lot of people respond to the comments without reading the article !

Justme...

Or worse...they respond to the HEADLINE without reading the article!!

KURTje

See younger people? See what "authority' & stinky attitudes do?

local man

Justme - If you were dropped after one claim you were with an inadequate insurance company, most companies will tolerate a claim or two. JulieR - the problem lies that the board caused the problem when they didnt reinstate per the arbitrator suggestion - lawsuits are rolling in because of the board still firing. Where the school district will find as their problem for obtaining insurance from another company is this claim remains as an open claim, no carrier will assume the risk until it is settled which will be not be anytime soon.

tell it how it is

Hahahahahahahahahahaha!
That's all I have to say.

abigbear

the

Huron_1969

Dear Fred Fox
We are pleased to announce you passed all chapters in the "Good Ol Boys Playbook" with flying colors. You are on your way to completely eluding all accountability for the mess you created. By manipulating people and searching out escape-goats, you have distracted many peoples attention from the root cause of the "Fox Fiasco".
You are an excellent poster boy for our clubs motto, "when you're caught with your pants down, blame the other guy"
Yours Truely
OJ and Slick Willy Clinton

Darkhorse

It is easy to file lawsuits but the question remains, how easy will it be to win? The attorney needs to recoup his time he put into it. No one has considered the ethics ruling yet and it could be the ace in the hole for the school.

nobodyfromnowhere

Or the final nail in the districts coffin. Given that the referee has already found in Fox's favor I'm betting more on nail than ace for the district.

Huron_1969

We should get together for a poker night.... I'll play aces patiently all night and stomp the donk plays

nobodyfromnowhere

Except the district hasn't had an ace anytime in this whole fiasco. In fact they have lost the only had played so far. Now both parties are all in. Their cards are on the table and the city is holding 2-7 unsuited. Fox is holding A hearts - A diamonds. The flop turned K-Q-J all hearts. Next came a 2. Only way they win is with another 2. They are betting it all on a 1 in 25 shot. Can you say long shot? Their investigation turned out to be done by a joker.

Retiree

Huron 1969- That was very good. You are absolutely right by saying that Fred and his supporters are blaming everyone but themselves. Nothing is ever said about when the teachers signed a contract without a raise then "fast Freddy" gave himself a hefty raise along with the bus supervisor which was a 50% raise. I have never heard of anyone in my life ever getting a raise that big. Not even the "good ole boys" group at the Erie County Court House.

I would like to know what Freddy has on the two board members that support him. It's time they should consider resigning.

Julie R.

I'm still surprised that Donna Green was allowed to include Fred Fox's attorney in the lawsuit she filed against Fox. I thought in corrupt Erie County filing lawsuits against attorneys was flatly prohibited. Of course, the unprofessional jokes at the courthouse can always do one of two things to get around it. They can either dismiss the lawsuit and/or illegally w/arrogance just refuse to address it.

Still Sold

You people are truly acorns and masters of spin.

One of two schools EVER dropped by this company. One of two EVER.

And why ?

The organization's reasons for dropping Huron Schools include:

•Threats of continued litigation and an inability to determine potential possible costs.

•Lack of board focus and direction.

•Inability to price due to the "turmoil."

I would say it's all spelled out pretty clearly acorns. This group of idiots continues to mismanage Huron's largest employer and some of you passengers still are holding on to the Titanic.

They won some kind of personal battle with firing Fred Fox.. Unfortunately the war they are losing is costing us all and will continue to cost us all well into the future.

Be proud of what you have accomplished oh majority of 3..

Huron_1969

Dear Sold

We regret to inform you for the 2012-2013 school year at the "Academy of Duck & Dodge" you have received a failing grade point average.
While your enthusiasm and participation are excellent, you have not followed the guidelines provided in the Good Ole Boys Playbook
1) Keep a low profile and allow people time to forget the original reason the problem was created
2) Never ever protest too much. Excessive protesting and deflecting blame exposes your true intentions
3) Never insult an entire audience because you never know who you may win over. Labeling a community as Acorns is childish
4) Never expose your man crush - no explanation needed
5) Never use more words than a lawyer. To date, you have a total of 52,875 words used in your posts regarding the Fox Fiasco

We recommend you attend summer school and re-read the Playbook. Until you can demonstrate the ability to play by our rules, you should refrain from posting anymore nonsense on any blogs. You are undermining our desire to cover up for Freddie da Fox

Best Regards
Timothy F. Geithner
Dean - Academy of Duck & Dodge

SoldOnAcorns

Hahahaha ! Well played....Well played !

Still Sold

Hahaha..
You are the King of the Acorns 69.
Great post and love the 52,875 words you counted.

Truth is the insurance company dropped the school because of the board and the board's unbusinesslike way of doing business. You all read it and know it. Keep posting. In the end all of your posts are humorous and your anti-Fox ramblings mean nothing to anyone but you, but you are a funny bunch.

Fred Fox is going to be paid for his career and his retirement and the Huron City Schools are going to crumble and never begin to recover until a completely new board with a young superintendent takes over. NO GREAT, or even GOOD superintendent is going to take this job with this board. Only the bottom of the barrel. If I were part of this board I would recommend that Tanny be the next super.

OK.. 1969.. Post..
TDN.. Squauk like a parrot after..
Retiree.. Ramble after..
UGOTTA.. Laugh because someone doesn't like Fred..
JulieR.. Complain about Erie County Courts.

In the end.. Fred walks with money.
Right or wrong if these 3 idiots would have just waited a few months and non-renewed him it would have been a mute point with a little public outcry and no lawsuits. Idiots. These are your heroes.

UgtaBkdnMe

.

UgtaBkdnMe

Gee Sold, did your post impress you so much that you had to share it at 3:08 and again at 3:10 ? Happy hour doesn't start til 4 !

Tsu Dho Nimh

Such an entertaining response,not to mention true!

UgtaBkdnMe

HAHAHAHAHA ! Now that's funny !

Still Sold

Hahaha..
You are the King of the Acorns 69.
Great post and love the 52,875 words you counted.

Truth is the insurance company dropped the school because of the board and the board's unbusinesslike way of doing business. You all read it and know it. Keep posting. In the end all of your posts are humorous and your anti-Fox ramblings mean nothing to anyone but you, but you are a funny bunch.

Fred Fox is going to be paid for his career and his retirement and the Huron City Schools are going to crumble and never begin to recover until a completely new board with a young superintendent takes over. NO GREAT, or even GOOD superintendent is going to take this job with this board. Only the bottom of the barrel. If I were part of this board I would recommend that Tanny be the next super.

OK.. 1969.. Post..
TDN.. Squauk like a parrot after..
Retiree.. Ramble after..
UGOTTA.. Laugh because someone doesn't like Fred..
JulieR.. Complain about Erie County Courts.

In the end.. Fred walks with money.
Right or wrong if these 3 idiots would have just waited a few months and non-renewed him it would have been a mute point with a little public outcry and no lawsuits. Idiots. These are your heroes.

Retiree

Threats of litigation, lack of board focus, inability to price due to the turmoil. Those reasons are a liability to the insurance company. The turmoil was caused by Fox and his attorney. All Fox wants is free money from the Huron taxpayer. Fox actually believes he did nothing wrong. Fox believes that an affair with a mistress on taxpayers dollar is not a reason for termination. That is stealing. You can not do that. Maybe your standards are different than most, but you should not have done it on taxpayers money.

Fox's group keeps blaming the three board members for all the problems. They did nothing wrong,they exposed the corruption. I do not understand why your group morals are so different. Maybe your group should get together and read what the Ten Commandments say, because you violated two of them.

nobodyfromnowhere

No the turmoil was caused by the board majority in their completely incompetent handling of this situation from the beginning. Add to that every time they have had an opportunity to change course they blindly plow on ahead. Groups like them are gigantic liabilities to insurance companies and the company was smart to part ways with them. I also find it telling that the company will completely drop them and as best we can tell keeping the district on with a huge increase in premiums was not even considered. The insurance company must be anticipating that this fiasco is going to cost the district a lot of money and that there would be no reasonable way they could ever recoup their losses.

Justme...

Not "blindly" nobody. More likely with the firm belief they are doing what is right. Their job is to protect the ENTIRE district...not just one member of it.

nobodyfromnowhere

You are right. Saying the went forward blindly was entirely too charitable. They went forward with a laser beam focus of ruin Fred Fox without any regard to what anybody has advised them to the contrary or any indication that they have considered the major consequences of their actions. But they are not protecting the district in any way and I have not seen any evidence that, that was ever their intention.

UgtaBkdnMe

I agree that Fox and his arrogance is to blame for the turmoil. Someone said earlier he was going to sue no matter what and that statement was spot on. Retiree, I too would like to know what hold the Sly Fox has on the two board members who defend him till kingdom come. Something isn't right and we can only hope that the ethics people will uncover it.

HuronCleanHouseNOW

Question - If the Huron School District does not find a company to insure them are they allowed to have fall sports?

Still Sold

Hahaha..
Now that is a great question HuronClean !

UgtaBkdnMe

Great question, squawk!

SoldOnAcorns

The treasurer gentleman wouldn't say shat if he had a mouthful and he needs to be on the next train outta town....he creeps me out ! He knows a helluvalot more than anyone involved in this entire mess, guaranteed. Silence is golden I guess !

Huron_1969

You hit a nail on the head..... Pandora's Box needs to be cracked open
If the OEC does a thorough investigation, they will find a ton of infractions made by the treasurer

Still Sold

Hahaha..
You are the King of the Acorns 69.
Great post and love the 52,875 words you counted.

Truth is the insurance company dropped the school because of the board and the board's unbusinesslike way of doing business. You all read it and know it. Keep posting. In the end all of your posts are humorous and your anti-Fox ramblings mean nothing to anyone but you, but you are a funny bunch.

Fred Fox is going to be paid for his career and his retirement and the Huron City Schools are going to crumble and never begin to recover until a completely new board with a young superintendent takes over. NO GREAT, or even GOOD superintendent is going to take this job with this board. Only the bottom of the barrel. If I were part of this board I would recommend that Tanny be the next super.

OK.. 1969.. Post..
TDN.. Squauk like a parrot after..
Retiree.. Ramble after..
UGOTTA.. Laugh because someone doesn't like Fred..
JulieR.. Complain about Erie County Courts.

In the end.. Fred walks with money.
Right or wrong if these 3 idiots would have just waited a few months and non-renewed him it would have been a mute point with a little public outcry and no lawsuits. Idiots. These are your heroes.

Justme...

Well duh, of course that's why they dropped them. I think we all can agree with that. The question is WHICH board memebers' unbusinesslike way of doing business. Perhaps Asher's for filing a frivelous lawsuit which cost the insurance company money? Or his outright lies about Slocum's past employment?

Tsu Dho Nimh

Isn't funny how Sold doesn't even consider that as an option? Kevin Asher, in my opinion, is a bigger embarassment to the district than Fred Fox. I would expect Fred to defend his behavior but for the life of me I will never understand why Kevin would defend Fred by filing a conspiracy theory. For someone who claims to be an attorney, that was just plain stupid.

UgtaBkdnMe

Really ? You need bloviate again at 3:12 ? Get some new material, would ya !

Julie R.

.

Still Sold

No doubt, Julie R..

8ballinthesidepocket

That's Huron for you...a bunch of amateurs on the school board who act like they are still in kindergarten carrying forward their personal grudges from their school days forward. Why don't they self insure themselves, then they will soon find out why they got the axe.

Still Sold

You hit the shot 8 Ball !

Still Sold

Hahaha..
You are the King of the Acorns 69.
Great post and love the 52,875 words you counted.

Truth is the insurance company dropped the school because of the board and the board's unbusinesslike way of doing business. You all read it and know it. Keep posting. In the end all of your posts are humorous and your anti-Fox ramblings mean nothing to anyone but you, but you are a funny bunch.

Fred Fox is going to be paid for his career and his retirement and the Huron City Schools are going to crumble and never begin to recover until a completely new board with a young superintendent takes over. NO GREAT, or even GOOD superintendent is going to take this job with this board. Only the bottom of the barrel. If I were part of this board I would recommend that Tanny be the next super.

OK.. 1969.. Post..
TDN.. Squauk like a parrot after..
Retiree.. Ramble after..
UGOTTA.. Laugh because someone doesn't like Fred..
JulieR.. Complain about Erie County Courts.

In the end.. Fred walks with money.
Right or wrong if these 3 idiots would have just waited a few months and non-renewed him it would have been a mute point with a little public outcry and no lawsuits. Idiots. These are your heroes.

UgtaBkdnMe

And there you go again at 3:14. But that's no suprise. All of your post during this fiasco has been the same ole same ole.

Huron_1969

Master of copy and paste

eastside

Blame Fox, he should have just left quietly to begin with, his mistress might have even been able to keep her job that way! Why is it that people like him, never want to accept the responsibility for their actions? It is a shame that the board members who were doing the right thing by the taxpayers and the school system, bringing Freddy, and his unethical and disgusting role model behavior, into the LIGHT, are then targeted by lawsuits, etc. Isn't that what we elect them to do? See that the school district is run by a responsible and ethical Super? Someone the district can be proud of? He and his good old boys, feel they should be allowed to do what they want, without consequence and that everyone else should pay. IF he had been doing his job, instead of getting one, none of this would have had to happen in the first place! Really, what taxpayer, or underling, wants to pay an underhanded piece of work like him to lead their children? I am still baffled that there is even an argument about this. Oh yes, it is Huron, and he is in deep with them, right? He should be ashamed, and if he ever cared about the school system, as his cronies claimed, then he would do what is right, and go elsewhere. Take your two goons with you. Might doesn't make right, much as it has always served you in the past. Are you hearing me now Fred? Once a bully, always a bully.

Julie R.

Hey Sold, what makes you think Fox is going to walk away with a lot of money? If the Erie County courts run true to form and handle a Murray's case like they get away with illegally handling others, this case will still be going on 10 years from now. The jokes won't even address it!

Retiree

All "fast Freddy" is doing is kicking a dead horse. The wheels are beginning to turn right now and more of Freddy's group are being questioned by the ethics committee. The lies and corruption that have taken place over the years are starting to come full circle now. If you think "fast Freddy" will be getting a lot of money from his lawsuits, guess again. His money and what he stole from the district will go to his attorney. As for his retirement, he might be spending that in jail. It is against the law to steal money especially if it is taxpayers hard earned money. Juries and courts are not in favor of someone that does those things. Throughout Huron he will be recognized as a dishonest person. He will have some friends that support him, but eventually they will disown him.

Fred's Posse: Over the months you have done Fred more harm then help. You people and his attorney (bottom feeder)is an embarrassment to his defense. Trying to defend what he has done shows how creditable you are. As I have said before, Fox should apologize to Mr. Nelson for bringing him into this mess. As for Fred, get rid of your so called friends. They have caused more harm than anything. Remember what one told you, "if I go down you're going with me.

whazup

I heard that someone else is being questioned about his dealings, too. If it is true, it is his own fault. Making false and inaccurate statements at a board meeting about how he has never sold directly to the district was a stupid move, especially with the lady from the ethics commission was present. It sounds like maybe the karma bus has pulled into town!