Reserve for Insurance
The insurance reserve fund is used to pay for liability, casualty and other losses, except those losses for which the following types of insurance may be purchased: life, accident, health, annuities, fidelity and surety, credit, title residual value and mortgage guarantee. claims incurred. Examples include uninsured losses, claims, actions, expert or professional services in connection with an investigation and settlement of claims.
General Municipal Law, §6-n
Source of Funds:
Funded by budgetary appropriations, transfers from other reserve funds as permitted by law, and such other funds as the school board may legally appropriate by BOE resolution.
Use of Reserve:
Voter approval is not needed to expend funds.
A judicial approval is needed to pay settled or compromised claims exceeding
Upon determination that this fund is no longer needed the fund may be discontinued and transferred to another reserve fund as permitted by law
Established by BOE Resolution
This reserve was initially funded at a level of $1,000,000
Annual contribution to this fund is limited to greater of $33,000 or 5% of the budget.
There is no limit on the accumulated reserve balance. The ideal balance for the Insurance
Reserve amount “reasonably necessary” to pay uninsured losses, claims, actions, expert or professional services in connection with an investigation and settlement of claims.
Balance at June 30, 2021: