AKCA INSURANCE EXPLAINED

HISTORY:  During the early 90’s AKCA did not offer liability insurance as part of its membership.  Any koi club that needed liability insurance to protect the club or enable it to have a koi show or exhibit at a garden show had to obtain their own insurance through Maryland Casualty.  At that time the annual premium was a minimum of $137.00.  Without this liability policy the clubs were unable to hold a public function as most owners of the venue demanded a liability policy endorsement naming that particular property owner as an additional insured for the specific function.  Around 1992 Maryland Casualty withdrew from this particular line of insurance and sent notices of non-renewal to all koi clubs that they would not renew their liability policies when they expired the following year.  AKCA then started a search for a replacement insurance carrier.

INTENT:  AKCA wanted to obtain a liability insurance policy that would protect all the AKCA member clubs and every individual
member of every member club against liability claims by the public, and to facilitate clubs being able to have public functions such as koi shows and exhibits.  This is what has been accomplished and is a part of the AKCA dues.  In the club kit there is a form that a club fills out and sends the request for an insurance certificate to our insurance agent WES BANNISTER and
ASSOCIATES.  A certificate is issued to the property owner that names that property owner as an ADDITIONAL NAMED
INSURED for that specific event. 

WHAT IS COVERED:  As stated above this is a liability policy that protects the insured.  By definition all member clubs and
their members are insured.  If somebody files a claim against a club and/or club member this policy will defend that individual or club and either settle the claim or defend a lawsuit and pay whatever award (within the policy limits).  Additionally the
ADDITIONAL INSURED that was named on the aforementioned insurance certificate will be treated as an insured, and defended
accordingly.  One other coverage is not a liability coverage, it is MEDICAL PAYMENTS, which basically says the insurer will
pay for all REASONABLE and NECESSARY medical expenses WITHOUT REGARD TO LIABILITY for any person (NOT
INSURED) that was injured at this public function, up to the limits of the MEDICAL PAYMENTS COVERAGE.  This coverage
would apply at a regular club meeting to any GUESTS at the meeting.

WHAT IS NOT COVERED:  If a club member sues a club or one of its members for some alleged negligent act, this policy does
not afford coverage as this would in essence be one insured suing another insured.  And the PRINCIPLES OF INSURANCE do not
allow an insurance carrier to write a liability policy that allows an insured to sue themselves as this would lead to many instances
of fraudulent insurance claims.  Additionally this policy does not afford coverage to the property owned by any member club. 
MEDICAL PAYMENTS COVERAGE is also excluded for insureds. 

OVERVIEW:  AKCA is aware that there may be other insurance coverage an individual club may wish to have but since our
member clubs are all throughout the USA and CANADA there are a limited number of insurance carriers that can offer insurance
in all 50 STATES and CANADA.  It is suggested that each club review their own specific insurance needs and obtain the
additional coverage as is deemed appropriate in their own area.  Most frequently asked question is in regards to a member club’s personal property.  Many clubs have a sizeable investment in their show tanks, pumps, blowers, microscopes, etc. and whether to insure these items for fire, etc. is an individual club decision.

QUESTIONS:  For any questions regarding this explanation, please have the AKCA REP of your club contact; Burt Ballou at
(714) 839-1836 after 6 p.m. Pacific time, or fax him at (714) 839-5016.