DI 39518.030 Employment Insurance Programs -- DDS
Regulations 20, CFR 41, Chapter 1, Subpart 1-15, 711-5 and 712-4
Employment insurance expenses include, but are not limited to: bonding, employer health insurance, life insurance, workers' compensation, and unemployment insurance.
B. Policy principle
With proper budgetary approval, the DDS may incur expenses for various employee insurance programs.
The cost of premiumson bonds covering State employees is allowable.
3. Types, extent, and cost of liability insurance
The types, extent and cost of coverage will be in accordance with general State or local government policy and sound business practice.
Contributions to a reserve for a self-insurance program approved by the Federal grant or agency are allowable to the extent that the types of coverage, extent of rates and premiums would have been purchased to cover the risks.
C. Operating policy - bonding
The State's cost of a new bond or an amendment to an existing bond is a proper charge to the SSA disability program if the cost is required in relation to receiving and handling Federal funds.
D. Operating policy - public liability
1. Not chargeable to SSA
The cost of awards, judgements, or settlementsarising from injury to person or property, is not chargeable to SSA, except as provided for in DI 39518.025ff.
2. Chargeable to SSA
a. Protection for injury to person or property
An appropriate shareof the cost to the State agency of protecting the State agency against financial responsibility for injury to person or property is properly charged to the SSA disability program.
EXAMPLE:Such expenses are a proper chargewhen they are in the form of:
b. Motor vehicles
A shareof the public liability and property damage insurance costs can be charged if:
the motor vehicle is used in the proper discharge of State agency official business, and
the cost is proportionateto the share of all motor vehicle travel of personnel devoted to activities concerned with making disability determinations.
E. Operating policy - coverage
1. Who may be covered
For SSA purposes, liability insurancefor DDS employees may include any personnel responsible for the development and adjudication of disability cases, i.e.,:
DDS physicians; and
NOTE:Generally, DDS employees, including DDS physicians, are responsible for obtaining and paying premiums for their own liability insurance.
Under the Federal Tort Claims Act, DDS employees are considered to be independent contractors. Therefore, unlessthese employees are covered under the conditionsset out in the following section, they are responsible for their own payment of premiums.
2. When allowable
Cost of liability insurance may be allowable and considered necessary when all of the following criteria are met:
Liability insurance is in accordance with State law or regulation or general State policy.
NOTE:A copyof State law or regulation must be submitted to SSARO.
Liability insurance must cover other State employeesas well, i.e., liability insurance which covers only DDS employees will not be funded.
A written statementfrom insurance company or other document is submitted to the RO which clearly indicates the desired extension of coverage specifically to DDS employees.
Only that part of a prorated costwhich is applicable to performing the disability determination function will be considered a necessary cost.
4. How to charge
The DDS's shareof the cost may be charged as follows:
The cost may be charged to the DDS as a direct costand included in the miscellaneous category under “Other Costs” if the computation involves a simple ratio.
The cost should be charged as indirect cost if the computation is intricate.
NOTE:Report indirect costs immediatelyto the Division of Cost Allocation in the Department of Health and Human Services (DHHS) RO, and include in the next indirect cost proposal.