HHS Liability Coverage 622-05-10-10-06

(Revised 10/1/2023 ML #3757)

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Licensed foster care providers (claimant) and others affiliated with the child in foster care who incur damages to property caused by acts or omissions of a child in foster care are eligible to file a property damage claim. The claimant must file the claim, regardless of whose property was damaged. This policy is the ‘insurer of last resort” and should be used only when a private insurance policy, such as homeowners, tenants, personal automobile, personal umbrella liability insurances, or any other collectible insurance, will not cover the damages or loss, or their deductible is higher than the cost of the damage.

 

Coverage:

The CFS Licensing Unit will pay for the lesser of the reasonable cost to repair or to replace damaged property incurred by a claimant and others, if the damage is caused by acts or omissions of a child in foster care. This coverage is subject to the following limitations:

• $100 Department deductible per claim
• $5,000 maximum payout per claim
• $10,000 maximum payout per year/per claimant

The CFS Licensing Unit will cover the difference between $100 and the amount of the deductible paid. This applies only to claims for damages, which are covered by this policy.

 

In cases where the property damage claim total exceeds $25,000 the CFS Licensing Unit may further review the claim to assess damage, actual cost, replacement cost, and incident occurrence. The CFS Licensing Unit may cover 25% of remaining personal property damage after insurance payout, not to exceed the $10,000 annual limit.

 

Exclusions:

The following exclusions apply:

• Property damage due to the operation or use of any aircraft or watercraft.
• Property damage resulting from dishonest, fraudulent, criminal, malicious, or negligent conduct on the part of the claimant, family members living in the claimant’s house, or others.
• Theft of property.
• Bodily injury of any kind.
• Injury to household pets.
• Secondary property damage caused after the incident, not by the child in foster care.

Additional exclusions may apply as determined by the CFS Licensing Unit on a case-by-case basis.

 

Claim Procedure:

Custodial case managers must submit these documents to the CFS Licensing Unit Administrator:

1. Written notification from the custodial case manager is required detailing knowledge of the incident and agreement of the claim before a foster care property damage claim can be considered by CFS.
2. A completed Family Foster Care Claim of Property Damage Form (SFN 327).

1. A SFN 327 must be completed for each claim filed with an insurance company; multiple claims should not be included on one SFN 327, unless previously approved by the CFS Licensing Unit.
2. If more than one incident occurs in a 24 hour period, resulting in multiple insurance claims, the CFS Licensing Unit will combine the insurance claims into one claim with one CFS Licensing Unit deductible for cases where the payout will not exceed $1000.

3. A signed W-9 for payment purposes (SFN 53656) and voided check for payment purposes.
4. Photograph/s of the damage.
5. A letter from a private insurer denying payment for the damages claimed.
6. A written estimate by a contractor or insurance adjuster, or bill, or receipt of payment made for damages.
7. When applicable, verification of the amount paid by the private insurer.
8. When applicable, proof of the amount of deductible paid by the claimant or others.

Claims need to be postmarked within 90 days after discovery of the damage, and sent via email to the CFS Licensing Unit Administrator at cfslicensing@nd.gov.

 

A review committee consisting of the CFS Licensing Unit Administrator, the Chief Financial Officer (Fiscal Administration), and the Risk Manager (Human Resources), or their designees, will review the claims and make a determination within 15 working days of receipt of a complete claim. If a claim is approved, reimbursement to the claimant will be issued within 14 days of the date of approval. If a claim is denied, the foster care providers will be informed of the reason for the denial within 14 days of the date of dednial. The CFS Licensing Unit will not make a determination if claims are incomplete, and are not submitted within the 90-day timeframe. If approved, payment will be made to the party who incurred the damage.