School district superintendents and board members often turn to groups such as the Oklahoma State School Boards Association and the Organization of Rural Oklahoma Schools for advice when it comes time to select an insurance provider or make other complex decisions.
What school officials may not know is these professional organizations receive money back from some insurance providers when schools choose their products.
For instance, the Oklahoma Schools Risk Management Trust (OSRMT) paid the Oklahoma State School Boards Association (OSSBA) nearly $150,000 in royalty payments for the 2013 fiscal year.
The most recent audit of the trust’s finances, which is available on the state Insurance Department’s website, states that the royalty agreement “grants OSRMT the exclusive right and license to use the OSSBA name and logo in connection with the marketing and administration of the insurance programs offered by OSRMT.”
A similar financial arrangement existed between the Organization of Rural Oklahoma Schools (OROS) and the Oklahoma Schools Property and Casualty Cooperative (OSPCC).
Sponsor of co-op