PHI BETA SIGMA Risk Management & Personal Liability HRH is now Willis America.

PHI BETA SIGMA Risk Management & Personal Liability

HRH is now Willis America

© 2005 HRH/Kirklin & Company© 2006 HRH/Kirklin & Co., LLC

Background of HRH/Kirklin

100% dedicated to serving fraternal and student organizationsFounded in 1991 in as Kirklin & Company, now a wholly subsidiary of Hilb Rogal & Hobbs since 2002Insurance and Risk Management programs provided to 122 client organizations

52 NIC fraternities5 NPHC fraternities & sororitiesProfessional co-educational fraternitiesNumerous local and small fraternal organizationsOver 1,300 fraternity properties insured through the Fraternal Property Management Association (FPMA)

Insurance Brokerage Agency – Is now WillisThey work for insured, not the insurance adjuster/underwriter


“Culture for service and service for humanity.”


Break the stereotypes of Fraternity

Live the values of the organization:

BrotherhoodScholarshipService


Why are we here today?

Objectives:Understand risks of undergraduate chapters and college studentsPlan and execute events in safer mannerReduce the risk of personal injury as well as civil and criminal litigation…against you!


What is proper risk management?

Three Basic Choices:

Avoid the RiskAssume the RiskManage the Risk


Personal Action & Denied Coverage

After a night of drinking, attempted to swim the length of a 437ft lake

Body found 34 feet from shore, five hours later with a .13 BAC Chad Meredith,

18 died of hazing November 5,

2001

Coverage was denied for the two additional individuals involved

Actions were deemed separate from the fraternity and chapter


Consequences of Chad’s Death

The police and university determined the chapter and fraternity were not to be held liable and both entities were dismissedThe dismissal left the two individuals alone as defendants and the jury found them liable for a $12.6 million judgmentOn the night of Chad’s death each of the three men made irresponsible decisions, these actions took the two defendants away from the coverage of the fraternity


Denial of Coverage

Your fraternity is not a protector from personal responsibility and liability

Coverage may be denied because actions are individual in nature or not within the scope of activities of the fraternity as a member, or if actions such as hazing are alleged the benefits of coverage may be excluded because of your actions


Chad Meredith Act in Florida

Law against hazing resulting in serious injury or death, increased from a

Putting someone at risk of injury will become a first-degree misdemeanor

misdemeanor to a felony punishable by up to five years in prison, even if the victim consents

Signed into state law on June 7, 2005


Hazing & Membership Intake

Los Angeles, CANPHC Sorority

Unrecognized organization by University. Chapter was officially closed and ordered to cease operations 2 ½ years prior to incident.Two pledges participating in initiation ceremony drowned. Families filed a $100 Million civil suiteTotal judgment paid by organization was $1.8 Million



Phi Beta SigmaWest Virginia4-5 members expelled from university

South Carolina - Florence9 Phi Beta Sigma members arrested; 6 expelled from university 2011


Hazing is stupid! –our only fatality in almost 100 years

Phi Beta Sigma Fraternity, Inc. sends our prayers and condolences to Mr. Wade's parents and the Prairie View A&M community for their loss. Although it is inappropriate to respond in detail about this particular incident, we want to assure all involved parties that new information and updates will be provided when appropriate.


Kappa's Two fraternity brothers both received two-year prison terms Monday

Subject: FW: Judge sends Kappa Alpha Psi Fraternity brothers to prison for hazing Date: Thu, 1 Feb 2007 03:03:16 +0000 TALLAHASSEE, Florida (AP) -- Two fraternity brothers both received two-year prison terms Monday from a judge who said she wanted to send a message with the state's first prosecution under a felony hazing law.

Florida A&M University students Michael Morton, 23, of Fort Lauderdale, and Jason Harris, 25, of Jacksonville, were led from the courtroom in handcuffs, as was Harris' lawyer, Richard Keith Alan II, who was charged with indirect criminal contempt.

Morton, former president of the university's Kappa Alpha Psi fraternity, was found guilty of striking prospective member Marcus Jones, 20, of Decatur, Georgia, with a wooden cane so severely during four nights of initiation rites that he underwent surgery for bruising to his buttocks.

Harris was convicted of participating by encouraging Jones to bear up under the beatings and reviving him with water after he passed out so he could go back for more punishment.


Hazing Judgment Former student Jason Harris stands to be fingerprinted at the

conclusion of the trial. He was remanded to custody shortly after to begin serving the two-year prison sentence Judge Kathleen Dekker ordered



Southern IllinoisPhi Beta Sigma

6 months of jail2nd semester senior, expelled from universitySC State Univ – 6 brothers arrested and chapter closed for 7 years

VA Union Univ. 4 Sigmas arrested and ordered to pay medical bills


Hazing & Misconduct

Died of forced water intoxication

4 members charged with involuntary manslaughter and misdemeanor hazing

3 members charged with violating state hazing law

Matt Carrington, 21

died from hazing on

February 2, 2005

He was a

member of a rouge fraternity at Cal State Chico


Hazing & MisconductGabriel John Maestretti pleaded guilty to involuntary manslaughter and a misdemeanor hazing: 1 year in prison and 5 years probation

Jerry Ming Lim & John Paul Fickes pleaded guilty to hazing and an accessory to manslaughter: 6 months in jail and 5 years probation

Carlos James Deville Abrille pleaded guilty to hazing: 3 months in jail and 3 years probation

Michael Fernandes pleaded guilty to hazing: 30 days in prison and 2 years probation

Trent Stiefvater, pleaded guilty to hazing: 30 days in prison and a $500 fine with cooperation in anti-hazing outreach

Richard Joseph Hirth, pleaded no contest to hazing: 45 days in prison and a $500 fine with cooperation in anti-hazing outreach


Hazing & Misconduct

"I accept my punishment, with the hope that it will serve as a warning to others not to follow the path I did.

Hazing isn't funny, it's not cute. It's stupid, dangerous. It's not about brotherhood, it's about power and control."

~Gabriel Maestretti


Other possible consequences

Expulsion from University, removal of degree

Closure of chapter and/or expulsion from fraternity membership

CLOSEDGarnishment of wages and/or personal property


Leading Cause of Large Losses Phi Beta Sigma 2004 - 2011

Hazing is #1 by far in terms of incurred cost and frequency

Violence at parties by 3rd party individuals is fast approaching hazing in terms of frequency

Note: alcohol was a contributing factor in nearly 80% of cases


Leading Cause of Large Losses Phi Beta Sigma 1998-2004

1. Hazing 77%2. Assault & Battery

15%3. Slip & Fall

8%


Violence

Fight at party in April 2011 6 shot at University of Akron party in October 2011 by non-collegians

3 shot at University of Illinois Nov. 2011; 1 critical and a possible permanent paralysis by non-collegians

2005 shooting results in fatality at party in California 2005 stabbing results in fatality in Arkansas 2006 female shot at party in Alaska 2007 rape at a party in 2007 2009 Fight among member in New Orleans 2010 shooting at party at members house wounds 5 in New jersey


Open Parties are invitations to bad things, injuries and even death

We are in a very different time; we have young men and even women in the street that go to affairs just to fight, cut and shoot; we see this in city after city as cities close clubs because of shootings and fights 2-3 times a week; why do we think our results will be different when we invite them to our parties; they already don’t like us because we are trying to do something and they want to prove we are soft. And we help by making ex gang members at some schools.

In Memphis young lady shoots 5 outside club then enters gun battle with police at club that has been closed twice

In Nashville we have clubs that are continually closed due to violence, we average 2 a year; what is going on in your city?


Manage the riskSafe event planning for both members and guestsNew member education opposed to pledge trainingHave a security policy and follow itKnow and follow your fraternity and university risk management policiesKeep social aspects in balanceBe your brother’s keeperDeal quickly and appropriately with problem members


Know the risk management policy!

All members are familiar with the content and expectations of the policy, well educated on their role within the chapter, and held accountable Rules, regulations, and policies are discussed regularly with the leadership and general membershipOfficers, advisors, and additional volunteers have a strong understanding and knowledge of the policy


Live the values of the Organization

Recruitment and the MIP processRecruit men who share the values of the organization and are committed to what they representConversations based on the principles and obligations of the fraternity, void of alcohol & drugsHonor, respect and dignity for every man

Member EducationHazing is the easy way outResulting claims from hazing, produce personal liability and could have a long term effect on the fraternityProvide a challenging, yet positive program


Simple steps to minimize the risk

Event planningOrganization must occur at least 45-60 days priorDoor and event monitor (professional security)Transportation (professional drivers)All vendors are properly insured and licensed. Secure a proof of insurance/license via a certificate, which adds the local chapter and National Fraternity as an Additional InsuredConfirm all limits are sufficient and acceptable

Third Party VendorIdentification check and legal distribution and sale of alcohol


Simple steps to minimize the risk

Guest ListDeveloped in advance of the eventOfficial invitation provided to guests onlyLimited to full time students of the host institutionNumber of guests invited is manageable for the membership (2 guests for each member)Detailed list of guests invited & attending maintained and filed for a minimum of two years (possible witness list in litigation case)


Loss control once an incident occurs

Report all infractions Immediate and timely contact to minimize exposure of individuals and fraternity (24 hours)Work with and communicated openly with National Fraternity staff to assure proper response to University and othersWitnesses are readily available, remember event and evidence is clearly intactMore controllable if the necessity of investigation from local authorities or lawyers is warranted


Work to create the balanced chapter!(break the stereotype)

Academic SuccessLeadership Development

Volunteer ServiceFinancial Stability

Friendships based on ValuesAthletic CompetitionCampus Involvement

Positive Events & Programming


Member Accident Protection Program

Member Accident Protection Program (Markel Medical Insurance Co.)

Known simply as MAPPSupplemental accident and life policy for all members and pledges/associate members in good standingCoverage is only for undergraduate members

$100,000 Medical & Dental Expense52 week benefit period$5,000 Accidental Death & Dismemberment benefit$0 deductible


A modern picture in an antique frame

“Be the change you wish to see in the world.”

- Gandhi

PhiPhiBeta Beta SigmaSigma


Resources available at www.kirklin.com

101 non-hazing activitiesHazing resource handoutAlternatives to hazingSexual assault handoutWhat is consent?Crisis management outlineSpecial event planning guideChapter website guidelines


Social Media has consequences Facebook, twitter, webpage

What you post is downloaded and quoted in the news and in court

Phi Beta Sigma is copyrighted and trademarked- You can’t use its symbols or associations against National policy guidelines


In summary

Understand the risk associated with our actions Assess the situations that arise in our daily fraternal activitiesTake action and control to protect ourselves, others, and members of the fraternity as well as the Greek communityLead a responsible life, with integrity and compassion


Contacts at WillisRich JungmanManaging [email protected](800) 736-4327

Terri SimmermanAccount [email protected]


Cynde Glantz - MAPP Ins &

Inspection and Client Service Assistant

[email protected]

(800) 736-4327

Bobbi Larsen

Education Consultant &

Client Communications and Planning

(800) 736-4327

[email protected]

Mick McGill

Vice President - Client Advocacy /Claims

[email protected]

(800) 736-4327


Contacts at Willis

Steve Wilson

Manager-Claim Advocacy

and Loss Control

(800) 736-4327

[email protected] Mick McGill

Vice President - Client Advocacy /Claims

(800) 736-4327

[email protected]

PHI BETA SIGMA Risk Management & Personal Liability HRH is now Willis America.

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