Common use of Responsibilities of Participant Clause in Contracts

Responsibilities of Participant. Participant shall have the following responsibilities under this Agreement: (a) Appoint an officer or employee of Participant to serve as a liaison and primary contact with PRISM for all matters relating to risk management; (b) Maintain an active risk management program, and consider recommendations of PRISM concerning the reduction of unsafe practices; (c) Be ultimately responsible for the investigation, settlement, defense and appeal of any claim made, suit brought, or proceeding instituted against Participant or its member. i. Participant shall use only qualified personnel to administer its liability claims. ii. Qualified defense counsel experienced in third party liability law and practice shall handle litigated claims. iii. Participant shall review PRISM’s National Liability Claims Administration Standards (Exhibit A). It is recommended that Participant’s claims administrator utilize these standards since they will be utilized in PRISM’s liability claims audits. PRISM Adopted: December 11, 2019 Controlled Unaffiliated Business Agreement Amended: May 1, 2024 General Liability 1 Program (d) Participant shall provide immediate written notice of any claim or suit pursuant to the claims reporting requirements set forth in the policy or reinsurance agreement issued for the applicable coverage period. (e) Maintain claims data for liability claims and provide such records to PRISM or PRISM ARC as requested. Participant shall maintain records of claims in each category of coverage (i.e. bodily injury, property damage, expense) or as defined by PRISM or PRISM ARC. Claim records shall include open and closed claims, allocated expenses, and shall be shown at full value (not limited to the layer of coverage provided by PRISM ARC, not capped by Participant’s self-insured retention, etc.). (f) Claims audits are provided as a service to Participant and to confirm for PRISM that appropriate claims practices are in place. Participant agrees to allow for and cooperate with PRISM or PRISM ARC for the auditing of Participant’s claims and claims practices. Recommendations, if any, made in the claims audit provided by PRISM shall be considered by the Participant and Participant shall provide a written response within 60 days of receipt of the audit report outlining either a plan to address the recommendation or an explanation of why Participant has decided not to do anything further with respect to the recommendation. (g) Participant’s fiscal health and ability to pay claims within its self-insured retention are important to PRISM and PRISM ARC. Participant is required to obtain an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) at least once every three (3) years. A financial subsidy from PRISM of up to $2,000 per fiscal year is available to Participant to assist in paying for the actuarial study. Based upon the actuarial recommendations, Participant should maintain reserves and make funding contributions equal to or exceeding the present value of expected losses and a reasonable margin for contingencies.

Responsibilities of Participant. Participant shall have the following responsibilities under this Agreement: (a) Appoint an officer or employee of the Participant to serve as a liaison between the Participant and primary contact with PRISM or PRISM ARC for all matters relating to risk management; (b) Maintain an active risk management safety program, and consider and act upon all recommendations of PRISM or PRISM ARC concerning the reduction of unsafe practices; (c) Maintain its own claims and loss records related to liability claims and provide such records to PRISM or PRISM ARC as requested; (d) Pay all premiums and invoices timely. Penalties for late payment of invoices shall apply pursuant to PRISM’s Invoice and Premium Payment Policy, which is attached hereto as Exhibit A. Any costs incurred by PRISM or PRISM ARC as a result of collection of late and/or unpaid premiums or other charges, shall be recoverable by PRISM or PRISM ARC. At the discretion of the PRISM ARC Board of Directors, any Participant that fails to pay an invoice when due may be given a ten (10) day written notice of cancellation. (e) Be ultimately responsible for the investigation, settlement, defense and appeal of any claim made, suit brought, or proceeding instituted against the Participant or its member. i. The Participant shall use only qualified personnel to administer its liability claims. ii. Qualified defense counsel experienced in third party liability law and practice shall handle litigated claims. iii. The Participant shall review use PRISM’s National Liability Claims Administration Standards (Exhibit A). It is recommended that Participant’s B) and shall advise its claims administrator utilize that these standards since they will be are utilized in PRISM’s liability claims audits. PRISM Adopted: December 11, 2019 Controlled Unaffiliated Business Agreement Amended: May 1, 2024 General Liability 1 Program. (df) The Participant shall provide PRISM immediate written notice of any claim or suit upon learning any of the following: i. The amount incurred has reached fifty (50) percent or more of the Participant’s self- insured retention. ii. The incident, claim or suit involves an injury of the following type: a. Death b. Paralysis, paraplegia, quadriplegia c. Loss of eye(s), or limbs d. Spinal cord or brain injury e. Dismemberment or amputation f. Sensory organ or nerve injury or neurological deficit g. Serious burns h. Severe scarring i. Sexual assault or battery including but not limited to rape, molestation or sexual abuse j. Substantial disability or disfigurement k. Any class action l. Any claim or suit in which PRISM is named as a defendant; or m. Any injury caused by lead Updates on such claims or suits shall be provided pursuant to the claims reporting requirements set forth in provisions of the policy National Liability Claims Administration Standards (Exhibit B) or reinsurance agreement issued for the applicable coverage periodas requested by PRISM, PRISM ARC and/or PRISM or PRISM ARC’s excess insurer or reinsurer. (eg) Maintain Recommendations made in the claims data audit provided by PRISM shall be addressed by the Participant and a written response outlining a program for liability claims and provide such records corrective action shall be provided to PRISM or PRISM ARC as requested. within sixty (60) days of receipt of the audit. (h) Each Participant shall maintain records of claims in each category of coverage (i.e. bodily injury, property damage, expense) or as defined by PRISM and shall provide such records to PRISM as directed by ▇▇▇▇▇ or PRISM ARC. Claim Such records shall include both open and closed claims, allocated expenses, and shall not be shown at full value (not limited to the layer of coverage provided by PRISM ARC, not capped by the Participant’s self-insured retention, etc.). (fi) Claims audits are provided as a service to Participant and to confirm for PRISM that appropriate claims practices are in place. Participant agrees to allow for and cooperate with PRISM or PRISM ARC for the auditing of Participant’s claims and claims practices. Recommendations, if any, made in the claims audit provided by PRISM shall be considered by the Participant and The Participant shall provide a written response within 60 days of receipt of the audit report outlining either a plan to address the recommendation or an explanation of why Participant has decided not to do anything further with respect to the recommendation. (g) Participant’s fiscal health and ability to pay claims within its self-insured retention are important to PRISM and PRISM ARC. Participant is required to obtain an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) at least once every three (3) years. A financial subsidy from PRISM of up to $2,000 per fiscal year is available to Participant to assist in paying for the actuarial study. Based upon the actuarial recommendations, the Participant should maintain reserves and make funding contributions equal to or exceeding the present value of expected losses and a reasonable margin for contingencies.