LCMS Convention Workbook St. Louis, Missouri — 2026, Page 181

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OFFICER, BOARD, AND COMMISSION REPORTS
finally approve initiation of this activity and creation of any related
corporate form as constitutionally permissible.
Concluding remarks and recommendations: Concordia Plan Services’ Articles of Incorporation list as the “principal purpose and
function the administration of the pension, retirement, health, and
other employee benefit plans (hereinafter, the ‘Plans’) established
by the Synod in accordance with the terms of such Plans.” The
control by CPS of an activity outside this principal purpose and
function will presumably necessitate changes to these governing
documents, as well. (Compare Articles of Incorporation of the CPS
Ancillary Program Agency, as reviewed in Op. 15-2773.)
The commission suggests, asking that this opinion be shared with
the Board of Directors, that if the board determines to undertake
this activity and to assign it to CPS or a subagency thereof, it would
be best for the Synod Bylaw description of the work of CPS to be
amended by the next convention to include this new activity, even
if already entered into. Review of proposed bylaws would be welcomed concomitant with that of the other documents governing the
activity and potential subagency.

Endnotes
1. The idea of a captive (whether itself a single-parent agency of the
Synod or participation in a group) serving Synod and certain of its agencies
was explored 2006–8 by the Board of Directors (Minutes, Aug. 25–26 and
Nov. 16–17, 2006 [see docket of latter, exhibit IC-11]; May 16–18, 2007;
Feb. 14–16, Nov. 20–21, 2008). In the last of these, the Treasurer noted that
a risk-sharing concept would be pursued as an alternative.
2. 1959 Res. 16-11 declined an overture suggesting mutual property insurance covering “churches, schools, parsonages, etc.,” possibly in
connection with “an existing organization, such as the A.A.L.,” such arrangements having “been found impracticable in past experience and been
judged unwise by competent men in the insurance field.” 1971 Res. 4-11,
“To Decline Study of Fire and Casualty Insurance Program,” dismissed the
proposal of Ov. 4-85 to study developing a “synodwide” fire and casualty
insurance program, serving “all congregational, college, district, and synodical buildings,” on the grounds that this was “impractical for administrative and financial reasons.” Both declinations are based on contemporary
business evaluations and not on constitutional grounds.
3. Aug. 29–30, 1980, BOD minutes (#308) evidence a suggestion by the
Executive Planning Group to “establish a property insurance company to
provide fire and casualty insurance to congregations at reduced rates” in
the decade of the 1980s. This was suggested under the Synod’s “servant
relationship to the congregations of the Synod,” in which it could, at least
in the area of “Program Administration, Finance, and Support Services,”
“offer additional support services, including the centralization of certain
services, without centralizing any ecclesiastical powers.”
May 25–27, 1983, BOD minutes (#616) show adoption of a resolution (exhibit H-9), coordinated with an amendment to policy treating the Synodical
Insurance Program:
Whereas, For many years the Synod has utilized its purchasing
power to provide blanket insurance coverages for all institutional
properties at a great savings; and
Whereas, It is evident from numerous inquiries that the servant
role of the Synod should be utilized to assist congregations in need
of protection to secure it at the lowest possible dollar cost; and
Whereas, The potential of expanding such programs to include
congregations has been under study for several years; and
Whereas, The Board of Directors empowered the Synod’s Treasurer to work toward offering congregations a program of insurance coverages to protect property and human resources, utilizing
the mass purchasing power of the Synod while at the same time
preserving the decision-making authority of each entity and relating
the costs to the specific risks involved; therefore be it

181

Resolved, That the Board of Directors adopt the Concordia Risk
Pooling Fund Agreement, as an amplification of its Policy Statement on Synodical Insurance; and be it further
Resolved, That publicity regarding this new opportunity be
shared with all congregations of the Synod for their information
and decision (see attachment).
Exhibit H-9 indicates that, so far as the program’s coverage of
congregations is concerned, the Synod would be responsible “to
monitor the program, to be sure that it runs as well as is intended,
and to make and renew relationships periodically with the commercial insurance companies based upon performance and cost factors. In addition, experience credits or other payments which reflect
a decrease in the cost of insurance because of the mass purchasing
and the risk pooling, including through the substantial deductible
which is inherent in the program, will be utilized through the Synod, as authorized in the agreement among the congregations.” The
Synod consulted with Nordstrom Risk Management (Los Angeles,
Calif.) and agreed with the Great American Insurance Company
(Cincinnati, Ohio) and later Preferred Risk (Des Moines, Iowa, later known as GuideOne) to offer the insurance. The form of congregational agreement is included in the docket.
The Treasurer reported at the BOD meeting of Feb. 22–24, 1984 (#149),
“Approximately 350 congregations are covered in the Concordia Risk Pooling Fund, which is being revamped and for which a new carrier will be
engaged as of April 1. Because of certain weaknesses in marketing, the
program has met the objective of obtaining lower insurance cost for congregations but has not met the objective of having congregations in a plan
which will benefit the church at large. Districts are participating well in the
directors and officers liability insurance program which has been provided. Certain resolutions of the Board of Directors, as well as other entities
involved, will be needed in order to clearly state the particulars regarding
the coverage provided.” Minutes of May 23–25, 1984 (#222), indicate that
“A number of Districts have joined the Synod in its insurance program and
more will be doing so as their policies expire. The program has been redirected to provide better marketing and involvement of local agents, and will
hopefully result in greater penetration and service throughout the Districts.
Presently, nearly 400 congregations have participated in the former program. Some difficulties with regard to the directors and officers liability
risk insurance are being resolved. Only one entity is not now sharing in the
cost of providing this coverage.” Minutes of Aug. 22–24, 1984, note (#294),
“In the area of insurance matters, it was noted that a mailing is planned to
all congregations, identifying the new congregational insurance program
through Preferred Risk [became GuideOne in 1999] of Des Moines. The
new program does not allow as much flexibility in setting premiums as was
possible under the old plan of pooling a $100,000 deductible against which
first dollar losses, subject to a cap, were paid. Nevertheless, it should attract
more congregations since there will be more personal contact by agents in
the field.”
Minutes of Dec. 4–6, 1985, indicate the program as still active (#682).
In 2003, LCMS ended its remaining relationship with Lutheran Trust (a.k.a.
Church Asset Management), the St. Charles, Mo., broker that had ultimately
facilitated the program.
4. With respect to the property and operations of Synod agencies, administration of the Synod’s “insurance plan” for Synod agencies may be
understood to lodge under Articles of Incorporation II g, whereby corporate
Synod is authorized “to establish and conduct all such enterprises and endeavors and to exercise such further power as may be necessary or expedient to carry out the objectives stated in the Constitution” and the Board of
Directors’ authority and responsibility as “custodian of all the property of
the [Synod]” (Const. Art. XI E 2).
5. Suelflow, “Church Extension Commission,” in Survey Commission
Report on District—Synod Relations, 1962.
6. The 4th and 10th objectives were added at this time.
7. With regard to church extension work, at the time of adoption of the
“modern” Article III in 1979, the Lutheran Church Extension Fund had just
been incorporated in 1978. The convention presumably did not intend to

2026 Convention Workbook