Clarification Regarding $8 Minimum Premiums

Hello 4-H and Extension Professionals,

I sent out this information via our e-mail list this morning for everyone who has applied for Special Activities Coverage through us this year, but I also wanted to update it here on our blog. Please read on for more information and as always, don’t hesitate to reach out if you need assistance!


I am writing to address some recent questions and provide clarification for Staff and Volunteers regarding the American Income Life Special Risk Division’s Special Activities Coverage. We have recently updated our premium reminders to a new easier to use format and have noticed that a small percentage of programs have questions regarding the $8 minimum premium required for this type of coverage.

While the $8 minimum has been in effect for many years, there has been some misunderstanding from Counties about how and when it applies. Please continue reading for more information about Special Activities Coverage and some further clarification about the minimum requirement.

Special Activities Policies – $8 Minimum

As many of you are aware, the premium amounts for Special Activities are based on the number of participants and the number of days for an event. Applications are submitted for an estimated number of attendees.  Premium payment is based on the actual numbers who participate, subject to an $8 minimum premium per event.

Most 4-H events are easy to categorize and determine how and when the $8 minimum should be applied. In many cases events such as camps, fairs, conferences, and trips that run on consecutive days, it is easy to take that minimum into account and calculate the appropriate premium.

The programs that have had the most questions about the minimum premium tend to be ones that meet frequently, but not daily, with lower attendance. In most instances these are classes or project groups that do not meet as part of a traditional 4-H Club. Some specific examples would be

  • a community service group meeting every Saturday for a month,
  • a sewing class that meets bi-weekly for 3 months,
  • or a dog obedience group meeting 2 days a week for the month leading up to their show, etc.

Moving forward, we want to be clear that these types of events that do not meet on consecutive days would not be calculated the same way as those that are back to back and each day would be subject to the $8 minimum premium.

We understand that budgets are a concern for most 4-H and Extension programs, and therefore if you have activities like the examples above and paying $8 per day would be cost-prohibitive, you would be able to cover that group using one of our $1/person Annual Policies instead. Those policies are designed and typically used for 4-H Clubs and Groups that meet all throughout the year, but we feel that this is a valid solution to keep costs low and still ensure that your youth and volunteers have the appropriate accident coverage.

We know that many 4-H Professionals and Volunteers have been utilizing our policies for years and we sincerely value your continued business and support of the Special Risk Division of American Income Life. If you have questions about specific programs or events or need any additional clarification about our policies, please do not hesitate to contact me and I will be glad to assist you. I can be reached directly via our toll-free number at 800-849-4820, Extension 5.


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