NSTU Group Insurance Trustees
Each Trustee, upon appointment by the Provincial Executive of the NSTU, must sign a copy of the Trust Deed and abide by the legal requirements of that document. Each Trustee is appointed for a term of five years, and is required to maintain STRICT CONFIDENTIALITY in relation to all matters referred to the Trustees.
The Role of the Trustee
The Insurance Trustees have the responsibility to operate the plans in the best interest of the members.
The Trustees shall:
- Determine the level of benefits or options to be offered;
- Set up and invest any dividends, refunds or other funds;
- Appoint Consultants/Brokers/Administrators;
- Appoint the underwriting companies;
- Appoint auditors to audit the Trust Fund.
- Review and monitor claims (on a monthly basis);
- Determine the level and method of communications with the members;
- Keep abreast of new products or benefits available on the market;
- Be aware of any changes in federal or provincial legislation that may affect any of the plans regarding taxability;
- Review requests from members for additional or expanded benefits;
- Attend seminars or conferences applicable to the field of insurance;
- Review problem claims to see that the insurance contract is being honoured;
- Do market surveys to determine the competitiveness of the current premium rates.
Monitoring the Marketplace
Even though the Trustees review claims on a monthly basis, and the financial reports annually, they must also keep abreast of the marketplace; that is, what is being offered by the other insurance companies.
The industry term for requesting formal submissions from insurance companies is "going to market." Some of the reasons for going to market are as follows:
- To test the competitiveness of premium rates, levels of retention and reserves, (usually every 3 to 5 years);
- If there is a substantial rate increase on any given option, the Trustees may wish to determine if the rate increase is justified;
- To assess cost effectiveness on alternate funding methods;
- To obtain quotations on alternate benefit levels;
- Because of poor service from existing carrier(s).
Procedure For Going to Market
If the Trustees decide to go to market, 12 steps are followed:
- The Administrator obtains authorization from the Trustees to prepare specifications and receive quotations.
- Employee data is prepared, including the date of birth, sex, salary and marital status of each insured member.
- The Administrator prepares specifications in draft form.
- The draft specifications are reviewed and agreed to by the Trustees.
- The final specifications are prepared and sent by the Administrators to the major underwriters of group insurance plans in Canada, together with a copy of authorization and employee data.
- The Administrator receives proposals from underwriters including meetings with insurance company personnel.
- The Administrator conducts an indepth analysis of each proposal and prepares a report for the Trustees.
- The Administrator presents the report to the Trustees for consideration/decision regarding coverage, carrier, method of administration and claims payment.
- The Administrator advises all companies of the decision of the Trustees.
- If necessary, a new enrollment is conducted.
- The Administrator assists in design of booklet or brochure, issuing of certificates, master policies, etc.
- The Administrator receives and reviews the master policies and presents them to the Trustees for acceptance
The Trustees publish a regular column in The Teacher providing current information and updates on insurance for the membership. To peruse these columns, click here.
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