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Trust Loyalty Credit: K12


The board of directors of the Arizona School Risk Retention Trust, Inc. (the Trust), has approved the continuation of the Trust Loyalty Credit (TLC) Program. Since the TLC began in 2010, the Trust has returned $30.8 million to members. For this year’s loyalty credit, members have the opportunity to receive up to 7 percent of their 2017/2018 contribution as a loyalty credit. Similar to the structure of the program in past years, members can qualify for two loyalty credit tiers, with the tiers being independent of one another.

Members may choose one of four options for receipt of their loyalty credit: (1) deduction from their contribution; (2) check; (3) deposit to a pre-paid account; or (4) deposit to a Trust Investment Pool account.

In order to qualify for the loyalty credit, members must meet the following pre-requisites:

  • participate in the core Trust coverages (both property and liability);
  • maintain membership in the Trust for three consecutive years (2015/2016, 2016/2017, and 2017/2018); and
  • pay the district’s 2017/2018 contribution prior to September 30, 2017.

The additional requirements related to each item are explained below, with the percentage to be returned to the district given in parentheses.

Tier 1. Members must meet the following criterion: (2%) maintain an average three-year loss ratio of 80 percent or less for the period from July 1, 2015 to May 31, 2018.

Tier 2. Members may complete any of the following items by May 31, 2018, for a maximum of 5 percent back to the district:

  • (1%) viewing of SafeSchools online courses, and passage of the corresponding quizzes, by at least 20 percent of the district’s full-time equivalent employees;
  • (1%) attending loss-related webinars between January and April of 2018;
  • (1%) conducting a phishing security test among district employees;
  • (1%) completing a district-wide transportation audit with the Trust-provided Transportation Program Audit Handbook, and creating an action plan to address necessary items;
  • (1%) attending at least one quarterly regional emergency preparedness consortium meeting;
  • (1%) completing a pre-winter inspection/corrective action plan before January 1, 2018, or completing a pre–monsoon season inspection/corrective action plan prior to May 31, 2018;
  • (1%) attending the Trust Risk Management Summit on February 9, 2018 (either in-person or via webinar); and
  • (1%) attending one of the Trust/NAU Leadership Academies in June 2017 or October 2017.