AUTO FLEET PHYSICAL DAMAGE PROGRAM

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AUTO FLEET PHYSICAL DAMAGE PROGRAM
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• While the State of Ohio often uses the term
  self-insurance, the vast majority of fleet
  vehicles are uninsured for comprehensive and
  collision damage.

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AUTO FLEET PHYSICAL DAMAGE PROGRAM

• This program offers physical damage for licensed
  motor vehicles owned by the State of Ohio.

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AUTO FLEET PHYSICAL DAMAGE PROGRAM

• This program provides State Agencies protection
  of their funding due to losses incurred by
  their motor vehicle fleet for a very
  competitive cost.

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AUTO FLEET PHYSICAL DAMAGE PROGRAM

• Contingent or discretionary funds already in the
  agencys budget would have to bereappropriated
  to pay for the repair or replacement of the
  vehicle.
• Protect your budget by transferring the risk at
  a very competitive cost.

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AUTO FLEET PHYSICAL DAMAGE PROGRAM

• The success of this program will be based on
  participation.

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AUTO FLEET PHYSICAL DAMAGE PROGRAM

• The greater the number of vehicles covered, the
  better the cost.

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• This program will provide many value added
  services to State Agencies, such as
  subrogation, salvage valuation, direct repair
  facility and many other services depending again
  on participation.

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OBTAINING COVERAGE Coverage for automobile
physical damage (i.e. comprehensive and collision
losses) is not required, but offered as an
available option. Only vehicles for which this
option has been elected and have been reported to
the Office of Risk Management - will have their
claims paid. Agencies are responsible for the
entire amount of the loss if physical damage was
not elected or the vehicle was not reported to
the ORM.
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OBTAINING COVERAGE continued Upon acquisition
of a new or additional vehicle, agencies have
(20) calendar days to elect this
coverage. Should a claim occur during those (20)
days, the agency will be assessed premium
retroactively back to the date of
acquisition. Agencies should send all changes
(additions, deletions and coverage changes) to
the Office of Risk Management. The Office of
Risk Management will maintain the master database
for the self-funded automobile fleet.
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DEDUCTIBLES Vehicles insured under this program
will be subject to a 000 deductible for
comprehensive losses, and 000 for collision
losses. (Refer to the definition section to
determine application of deductible).Not
Determined yet
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CLAIM REPORTINGState agencies are responsible
for reporting accidents that involve physical
damage to covered state vehicles to the Office
of Risk Management as soon as possible. These
reports should include a copy of any police
reports that relate to the claim.
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CLAIM REPORTING continuedThe agencies shall
also supply three repair estimates for the
damaged vehicle. It is totally the
responsibility of the agency to secure and
forward these documents to the Office of Risk
Management. Any claims of liability involving
another party (that are likely to result in
damage claims against the state) should be
reported under the self-insured liability program
under the procedures already in place.
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GLASS REPAIRS Any repairs made to glass losses
(other than replacement) will be covered to the
first dollar. These repairs usually range in
costs under 100 and are encourage vs total
replacement, which would be subject to the
applicable deductible. This would include
chips or minor cracks, that when repaired quickly
usually last for the life of the vehicle.
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REPAIR AND LOSS OPTIONSThe state agency has the
option of having their vehicle repaired by a
third party (this requires three estimates) or
if the agency has their own facility to make
repairs, can choose to do so. If the agency
elects to make their own repairs, two repair
estimates are still required. Payment in both
cases will be made on the lowest estimate.  
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REPAIR AND LOSS OPTIONS continued A vehicle will
be considered a total loss when the lowest
estimate to repair exceeds 80 or more of the
NADA Value (mid range) actual cash value (ACV).
When this is the determination, the ORM will
transfer the settlement amount to a separate
account. Upon proof or replacement of the
vehicle, those funds will be distributed to the
state agency. ACV will be offset by the
applicable deductible and/or salvage amount of
the vehicle.  
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REPLACEMENT VEHICLESThe state's self-funded
program has no provision to pay the cost for
temporary replacement vehicles. If the state
agency elects to rent another vehicle while their
vehicle that is covered under self-funded program
is in the shop for repairs, the coverage will
transfer to that rental vehicle for the
self-funded physical damage program. The
rental vehicle would be subject to the same terms
and conditions applicable to the state owned
vehicle.
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ADDITIONAL COVERAGES AND CONDITIONS TOWING -
Towing charges that are incurred in conjunction
with a physical damage claim will also be
reimbursed, subject to the appropriate
deductibles. Towing is limited to getting the
disabled vehicle to the nearest repair shop of
state facility where it can be stored until such
time that repairs occur.
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STORAGE Commercial storage costs are
reimbursable, but only for the period of time
that the vehicle can be moved to a state facility
or repair facility. The maximum days for this
coverage are limited to three business days.
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SPECIAL OR MODIFIED EQUIPMENT Only equipment
that is permantly installed and valued at less
than 500. will be automatically covered under
this program. All modifications over 500.
whether permantly installed or not, must be
indicated when the vehicle is added.
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SPECIAL OR MODIFIED EQUIPMENT continued If
coverage is desired for this attachment, a
separate charge will be made, based on the ACV of
the equipment or modification. If the agency
chooses, they can elect to cover a vehicle and
exclude the modifications and / or equipment
added after factory production. Any equipment
or modifications that are not reported to the
Office of Risk Management will not be covered
under this program.
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CONTENTS OR PERSONAL EFFECTSThere is no
coverage under this program for personal effects
either owned by you or the State, and while
contained or transported in any vehicle covered
under this program.
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SUBROGATIONAs an additional benefit, the Office
of Risk Management will assist the state agencies
in collection of subrogation for third party
damages to vehicles that are insured under this
program. If it becomes necessary to make
repairs before subrogation is obtained, damages
will be paid under the self-funded program
subject to the applicable deductible. When
total subrogation has been made, the deductible
will be reimbursed to the state agency.
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ELIGIBILITY All state owned vehicles that are
licensed for road use are eligible to participate
in this program. (All other state owned
equipment, not licensed for road use or otherwise
- please contact the Office of Risk Management
for insurance availability).
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AUTHORIZED USE FOR COVERAGE This program
provides coverage while the vehicle is operated
by a state agency employee or designated agent
that is authorized to operate a State owned
vehicle and providing the "Loss" occurred during
the course of State business.
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DEFINITIONS COMPREHENSIVE - Covers damage to
your vehicle caused by flood, fire, theft,
vandalism, lightning, explosion, windstorm, hail
and earthquake. It also covers glass breakage
and loss by collision with a bird or animal,
falling object or missile.  
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DEFINITIONS COLLISION - Covers damage to your
vehicle caused by collision with another vehicle
or object or the overturn of your vehicle.  
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DEFINITIONS DESIGNATED AGENT - Any person
working on behalf of the State of Ohio that is
duly authorized by a State agency, Board or
Commission to operate a State owned vehicle.  
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DEFINITIONS ACTUAL CASH VALUE (ACV) Actual
cash value is the value after depreciation is
applied to replacement cost of the vehicle.
The age, condition and mileage can also affect
the value of the vehicle.
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DEFINITIONS LOSS A direct and accidental event
or damage.
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Please take the time to think about your
agencies fleet needs and then call us.
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We would be glad to discuss with you the benefits
of participating in the
State of Ohio Auto Fleet Physical Damage Program
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The Office of Risk Management Administers
insurance programs, including the state's
self-insured vehicle liability program, which
covers a wide variety of vehicles, including
emergency units. Risk Management is responsible
for the placement of property and casualty
insurance for state agencies and bonds for state
employees.
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OFFICE OF RISK MANAGEMENT Auto Fleet Physical
Damage Program4200 SURFACE ROAD COLUMBUS, OH
43228614-466-6961
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CPIW
Susan R. Hazeltine, CPIWRisk Analyst Phone614-46
6-6961Fax[phone]E-Mailsusan.hazeltine_at_das
.state.oh.us
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CEI
Scott A. Roberts, CEIRisk AdministratorPhone614
-466-8858Fax[phone]E-Mailscott.roberts_at_da
s.state.oh.us
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AUTO FLEET PHYSICAL DAMAGE PROGRAM
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Presentation developed by Marcia
Disinger 614.466.5063