Ohio School Plan seeks more fees

District treasurer Mike Weis says Huron Schools’ former insurer wants an unnecessary fee to ensure coverage of new lawsuits related to ongoing legal battles.
Alissa Widman Neese
Sep 18, 2013
Weis addressed his concerns to board members Tuesday.

Ohio School Plan, which provided the district’s insurance until July, is demanding $7,000 by Oct. 1 for a three-year coverage guarantee, Weis said. The fee would guarantee coverage of any future lawsuits related to the district firing superintendent Fred Fox earlier this year.

But since board members fired Fox on April 2, while Ohio School Plan still covered the district, any new lawsuits would already be its legal responsibility, Weis said.    “Basically, we’d be paying them for coverage they already should be providing,” Weis said. “I’ve talked with our legal counsel, and they say (Ohio School Plan) is still responsible for any legal actions under the Fox matter. I’ve also talked with several insurance and legal experts, and half say we should pay the fee and half say we shouldn’t.”

Ultimately, board members took no action regarding the fee, meaning the district will not pay it.

If Ohio School Plan refuses to provide coverage of any future lawsuits, the district may need to take legal action against the insurance company, but Weis said that situation is unlikely.

Ohio School Plan dropped Huron Schools on July 1, shortly after board members voted 3-2 to fire Fox for alleged misdeeds. Fox appealed the termination and is suing the three board members who voted to fire him. Ohio School Plan halted its coverage because of pending lawsuits, “lack of board focus” and more.

Liberty Mutual Insurance now covers Huron Schools for $61,000 per year. Ohio School Plan’s coverage plan was $38,000 per year.

After Tuesday’s meeting, the Register requested all recent email exchanges between Weis and Ohio School Plan, which Weis said he will provide today via emai.

Download the provided PDF below

Tuesday’s developments came just a few days after the Register received a copy of a letter regarding insurance from an individual who did not provide his or her name. The district refused to release the letter this summer.

The document is a routine reservation of rights letter from Ohio School Plan, as some board members previously suggested. It identifies every legal action taken against the district, all of their possible outcomes and what portion of legal costs Ohio School Plan would cover, also highlighting some instances when coverage may not apply.

Fox-related court proceedings have already cost Huron Schools more than $140,000. The district’s budget is about $15 million annually.

In addition to discussing insurance issues, board members also approved a 100 percent, 15-year tax abatement for Angtin Inc. at Tuesday’s meeting, for the purpose of constructing a professional building in the city.

Comments

Gardenman

Wonder why they would want more money for coverage you have already paid for earlier. Its like having car insurance and having an accident and the insurance company comes back and says we need more money for you had an accident.

My my no wonder insurers like Progressive etc can pay for naming rights to ball fields etc.

Centauri

Ohio insurance companies at work. Ohio laws allow it.

gramafun

When you read the letter, it sounds like they have been dropped by the insurance company in July. This company isn't renewing its portion of the policy.

They are not asking for a duplicate payment, they are asking for a renewal of that portion of the policy by October 1 or they won't be covered any longer by those portions of the policy.

That could prove to be dangerous should the lawsuits continue, as they now have no insurance to fall back on should Fox win any suit. they will have to pay out of pocket.

Darkhorse

Funny about insurance. You can pay into it but when it comes time to pay out a claim,they disallow it or pick it apart so they don't have to pay up. No doubt the lawsuits will continue because someone is out of work and needs the money and the lawyer needs to recoup his money.

UgtaBkdnMe

Did anyone else get the election propaganda from Fox's friends in the mail? They want to "Recapture integrity by following Board Policy and Ohio Laws." Really? Wonder who gave the Register the reservation of rights letter? The board denied releasing it because Brickler and Eckler made it clear that it was not a public document. Wasn't it Mr. Asher who insisted that it be released? Didn't Mr. Slocum and Mr. Sowecke state that it was just a routine letter but the board was advised by legal council not to release it? Sounds like the Fox Brigade has already broken their empty promises.

Kleist For Kids

There is a better choice for Huron School Board - vote for Kleist.

www.KleistForKids.com
https://www.facebook.com/KleistF...

Informed

Anyone that votes for the three buddies that are campaigning together hasn't got a clue as to what has really been going on in Huron. So much has been swept under the rug until we got new board members, and it will return to that if those three Fox-worshippers get it. One of them was already voted out once, and now thinks we want her back. Ha!

whazup

Couldn't agree more! We need board members who aren't afraid to address the corruption and will move this district forward.

UgtaBkdnMe

Whazup, we have 3 candidates that fit your description; two are currently on the board and the other one has been speaking out for over a year. I plan to vote for Green, Slocum, and Catri.