CUMBERLAND COUNTY INSURANCE COMMISSION AGENDA AND REPORTS FEBRUARY 1, AM

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1 CUMBERLAND COUNTY INSURANCE COMMISSION AGENDA AND REPORTS FEBRUARY 1, AM COUNTY ADMINISTRATION BUILDING 164 WEST BROAD STREET BRIDGETON, NJ To attend the meeting via teleconference please dial and enter passcode # OPEN PUBLIC MEETINGS ACT - STATEMENT OF COMPLIANCE In accordance with the Open Public Meetings Act, notice of this meeting was given by: I. Advertising the notice in the Daily Journal and South Jersey Times II. III. IV. Filing advance written notice of this meeting with the Commissioners of the Cumberland County Insurance Commission; and Posting notice on the Public Bulletin Board of the Office of the County Clerk The meeting is called to order and it is noted that adequate notice was provided in accordance with Chapter 231, Public Law 1975 (Senator Byron M. Bear Open Public Meetings Act)

2 CUMBERLAND COUNTY INSURANCE COMMISSION AGENDA -OPEN PUBLIC MEETING FEBRUARY 1, :00 AM MEETING CALLED TO ORDER - OPEN PUBLIC MEETING NOTICE READ FLAG SALUTE ROLL CALL OF COMMISSIONERS APPROVAL OF MINUTES: December 7, 2017 Open Minutes Appendix I December 7, 2017 Closed Minutes.To be Distributed CORRESPONDENCE - None EXECUTIVE DIRECTOR/ADMINISTRATOR PERMA..Page 1 COMMITTEE REPORTS Safety Committee Report....Verbal Claims Committee Report... Verbal Claims Committee Meeting Schedule Page 53 TREASURER Anthony Bontempo Resolution February Bill List.....Page 54 CEL SAFETY DIRECTOR J.A. Montgomery Risk Control Monthly Report....Page 56 RISK MANAGER REPORT Hardenbergh Insurance Group Monthly Report....Page 63 CLAIMS SERVICE Inservco Insurance Services Stewardship Report....Appendix II MANAGED CARE Qual Lynx Monthly Report....Page 79 EXECUTIVE SESSION Motion for Executive Session for Certain Specified Purposes for Personnel, Safety, Public Property or Litigation in accordance with the Open Public Meeting Act - PAYMENT AUTHORIZATION REQUEST Motion to Return to Open Session Motion to Approve PARS OLD BUSINESS

3 NEW BUSINESS PUBLIC COMMENT MEETING ADJOURNMENT NEXT SCHEDULED MEETING: APRIL 5, 2018, 11 AM

4 CUMBERLAND COUNTY INSURANCE COMMISSION 9 Campus Drive, Suite 216 Parsippany, NJ Date: February 1, 2018 Memo to: From: Subject: Commissioners of the Cumberland County Insurance Commission PERMA Risk Management Services Executive Director s Report Election of Chairperson & Vice Chairperson Executive Director asks for nominations and conducts election. Reorganizational Resolutions (Pages 3-32) Listed below are the necessary Reorganizational Resolutions for the Cumberland County Insurance Commission. Resolution 1-18 Certifying the Election of Chairperson and Vice Chairperson Resolution 2-18 Appointing CEL Commissioner Resolution 3-18 Appointing Commission Treasurer Resolution 4-18 Appointing Commission Attorney Resolution 5-18 Appointing Commission Secretary Resolution 6-18 Designating Authorized Depositories for Commission Assets and Establishing a Cash Management Plan Resolution 7-18 Designating Authorized Signatures for Commission Bank Accounts Resolution 8-18 Appointing Agent for Service of Process and Designating Custodian of Commission Records Resolution 9-18 Designating Official Newspapers Resolution Establish Public Meeting Procedures Resolution Risk Management Plan Motion to approve Resolutions 1-18 through Property & Casualty Budget The 2018 Property & Casualty Budget was introduced at the December 8, 2017 meeting. In accordance with State regulations, the budget has been advertised in the Commission s official newspaper and posted at the Clerk s office. The Public Hearing for the budget will be held at this meeting. A copy of the proposed 2018 budget appears on Page 33, assessments by member entity are on Page 34. Motion to open the Public Hearing on the 2018 Budget. Discussion of Budget. Motion to close the Public Hearing. 1

5 Motion to approving Resolution (Page 35) adopting the Budget for the Cumberland County Insurance Commission in the amount of $2,950,123 as presented for the Commission Year 2018 and Certify the Assessments. County RFP Actuarial Services The County issued an RFP for professional services for Actuary for the Fund. A report will be provided at the meeting Property & Casualty Assessments In accordance with the Commission s By Laws, the assessment bills for 2018 for property and casualty will be mailed to member entities now that the budget has been adopted. Assessments will be due as follows: The first payment of 40% will be due on March 15, The second assessment of 30% is due on June 15, 2018 and the third assessment of 30% is due on September 15, NJ Excess Counties Insurance Fund (CELJIF) The CEL held a special meeting on January 10 th to process claim payments. The next regular meeting will be on February 22, 2018 at the Camden County Emergency Center. This will serve as the Funds Re-organizational meeting. Financial Fast Track Included on Pages 36 & 37 of the agenda are the Financial Fast Tracks for the Cumberland County Insurance Commission for October and November. As of November 30, 2017 the Commission has a statutory surplus of $1,921,880. NJ CEL Property and Casualty Financial Fast Track (Page 38) Included in the agenda is the NJ CEL Financial Fast Track Reports for November. As of November 30, 2017 the CEL has a surplus of $9,330,801. Certificate of Insurance Issuance Report: Certificate of Insurance Issuance Report: Attached on Pages 39 is the Certificate of Insurance Issuance Report from the CEL listing those certificates issued for the period of November 1, 2017 to December 31, There were 61 certificates of insurance issued during this period. Motion to approve the certificate of insurance report. 2

6 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION CERTIFYING THE ELECTION OF CHAIRPERSON AND VICE CHAIRPERSON WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and BE IT RESOLVED by the CUMBERLAND COUNTY INSURANCE COMMISSION that the following persons have been elected as Chairperson and Vice-Chairperson: Chairperson Vice Chairperson BE IT FURTHER RESOLVED, that the Chairperson and Vice Chairperson shall serve through 2019 CCIC Reorganization. ADOPTED by THE CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 3

7 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION APPOINTING A COMMISSIONER TO THE NEW JERSEY COUNTIES EXCESS JOINT INSURANCE FUND FOR FUND YEAR 2018 WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the New Jersey Counties Excess Joint Insurance Fund (hereinafter the Fund) is duly constituted as a joint insurance fund; and WHEREAS, the Fund by-laws require each member insurance commission to appoint one (1) commissioner to the Fund; and WHEREAS, Ken Mecouch is a member of the Commission and the Commission having deemed it appropriate to designate Ken Mecouch as commissioner to the Fund; and NOW THEREFORE BE IT RESOLVED by the Commissioners of said Commission that Ken Mecouch is designated Commissioner to the New Jersey Counties Excess Joint Insurance Fund until the New Jersey Counties Excess Joint Insurance Fund 2019 Reorganization. ADOPTED by THE CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 4

8 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION DESIGNATING COMMISSION TREASURER WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the CCIC requires the services of a Treasurer, and WHEREAS, Anthony Bontempo has demonstrated the skill and possesses the qualifications to perform the duties of Treasurer for the County Insurance Commission; WHEREAS, the Commission authorizes the appointment of Anthony Bontempo as CCIC Treasurer for the term commencing upon adoption of the within resolution through 2019 CCIC Reorganization; ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 5

9 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION DESIGNATING COMMISSION ATTORNEY WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the CCIC requires the services of an Attorney, and WHEREAS, Theodore Baker has demonstrated the skill and possesses the qualifications to perform the duties of Commission Attorney for the County Insurance Commission; WHEREAS, the Commission authorizes the appointment of Theodore Baker as CCIC Attorney for the term commencing upon adoption of the within resolution through 2019 CCIC Reorganization; and BE IT FURTHER RESOLVED that Theodore Baker shall receive no compensation to serve as Commission Attorney to the CCIC. ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 6

10 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION DESIGNATING COMMISSION SECRETARY WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the CCIC requires the services of an Secretary, and WHEREAS, Beth Kostok has demonstrated the skill and possesses the qualifications to perform the duties of Commission Secretary for the County Insurance Commission; WHEREAS, the Commission authorizes the appointment of Beth Kostok as CCIC Secretary for the term commencing upon adoption of the within resolution through 2019 CCIC Reorganization; and ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 7

11 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION DESIGNATING AUTHORIZED DEPOSITORIES FOR FUND ASSETS AND ESTABLISHING A CASH MANAGEMENT PLAN WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and BE IT RESOLVED that OceanFirst Bank is hereby designated as the depository for assets of the Fund. BE IT FURTHER RESOLVED that the attached Cash and Investment Management Plan, which includes the designation of authorized depositories, be and is hereby adopted. ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE-CHAIRMAN 8

12 CUMBERLAND COUNTY INSURANCE COMMISSION 2018 CASH MANAGEMENT AND INVESTMENT POLICY 1) Cash Management and Investment Objectives The CUMBERLAND COUNTY INSURANCE COMMISSION s (hereinafter referred to as the Commission) objectives in this area are: a.) b.) c.) d.) e.) f.) g.) h.) i.) Preservation of capital. Adequate safekeeping of assets. Maintenance of liquidity to meet operating needs, claims settlements and dividends. Diversification of the Commission s portfolio to minimize risks associated with individual investments. Maximization of total return, consistent with risk levels specified herein. Investment of assets in accordance with State and Federal Laws and Regulations. Accurate and timely reporting of interest earnings, gains and losses by line of coverage in each Commission year. Where legally permissible, cooperation with other local municipal joint insurance funds/commissions, and the New Jersey Division of Investment in the planning and execution of investments in order to achieve economies of scale. Stability in the value of the Commission s economic surplus. 2.) Permissible Investments Investments shall be limited to the following: a.) b.) c.) d.) e.) Bonds or other obligations of the United States of America or obligations guaranteed by the United States of America. Any federal agency or instrumentality obligation authorized by Congress that matures within 397 days from the date of purchase, and has a fixed rate of interest not dependent on any index or external factors. Bonds or other obligations of the local unit or bonds or other obligations of school districts of which the local unit is a part or within which the school district is located; or Bonds or other obligations, having a maturity date not exceeding 397 days, approved by the Division of Investment of the Department of Treasury for investment by local units. Debt obligations of federal agencies or government corporations with maturities not greater than five (5) years from the date of purchase, excluding mortgage backed obligations, providing that such investments are purchased through the New Jersey Division of Investment and are consistent the 9

13 f.) g.) h.) Division s own investment guidelines, and providing that the investment a fixed rate of interest not dependent on any index or external factors. Repurchase agreements of fully collateralized securities, subject to rules and conditions establish by the N.J. Department of Community Affairs. Government money market mutual funds. Local Government Investment Pools No investment or deposit shall have a maturity longer than five (5) years from date of purchase. 3.) Authorized Depositories In addition to the above, the Commission is authorized to deposit funds in certificates of deposit and other time deposits in banks covered by the Governmental Unit Depository Protection Act, NJSA 18:9-14 et seq. (GUDPA). The Commission is also authorized to invest its assets in the New Jersey Cash Management Fund. 4.) Authority for Investment Management The Treasurer is authorized and directed to make investments, with a maturity of three months or longer, through asset managers that may be selected by the Executive Committee. Such asset managers shall be discretionary trustees of the COMMISSION. Their actions and decisions shall be consistent with this plan and all appropriate regulatory constraints. In executing investments, asset managers shall minimize transaction costs by querying prices from at least three (3) dealers and purchasing securities on a competitive basis. When possible, federal securities shall be purchased directly from the US Treasury. Transactions shall not be processed through brokerages, which are organizationally affiliated with the asset manager. Transactions may also be processed through the New Jersey Division of Investment by the Commission s asset managers. 5.) Preservation of Capital Securities shall be purchased with the ability to hold until maturity. 6.) Safekeeping Securities purchased on behalf of the Commission shall be delivered electronically or physically to the Commission s custodial bank, which shall maintain custodial and/or safekeeping accounts for such securities on behalf of the Commission. 10

14 7.) Selection of Asset Managers, Custodial Banks and Operating Banks Asset managers, custodial banks and operating banks shall be retained for contract periods of one (1) year. Additionally, the Commission shall maintain the ability to change asset managers and/or custodial banks more frequently based upon performance appraisals and upon reasonable notice, and based upon changes in policy or procedures. 8.) Reporting 9.) Audit If the Commission utilizes the services of asset managers, they will submit written statements to the Treasurer and Executive Director describing the proposed investment strategy for achieving the objectives identified herein. Asset managers shall also submit revisions to strategy when justified as a result of changing market conditions or other factors. Such statements shall be provided to the Treasurer and Executive Director. The statements shall also include confirmation that all investments are made in accordance with this plan. Additionally, the Investment Manager shall include a statement that verifies the Investment Manager has reconciled and determined the appropriate fair value of the Commissions portfolio based on valuation guidelines that shall be kept on file in the Executive Director s office. The Treasurer shall report to the Executive Committee at all regular meetings on all investments. This report shall include information on the balances in all bank and investment accounts, and purchases, sales, and redemptions occurring in the prior month. This plan, and all matters pertaining to the implementation of it, shall be subject to the Commission s annual audit. 10.) Cash Flow Projections Asset maturity decisions shall be guided by cash flow factors payout factors supplied by the Commission Actuary and reviewed by the Executive Director and the Treasurer. 11.) Cash Management All moneys turned over to the Treasurer shall be deposited within forty-eight (48) hours in accordance with NJSA 40A:5-15. In the event a check is made payable to the Treasurer rather than the Commission, the following procedure is to be followed: a.) b.) The Treasurer endorses the check to the Commission and deposits it into the Commission account. The Treasurer notifies the payer and requests that in the future any check be made payable to the Commission. 11

15 The Treasurer shall minimize the possibility of idle cash accumulating in accounts by assuring that all amounts in excess of negotiated compensating balances are kept in interest bearing accounts or promptly swept into the investment portfolio. The method of calculating banking fees and compensating balances shall be documented to the Executive Committee by the Treasurer at least annually. Cash may be withdrawn from investment pools under the discretion of asset managers only to Commission operations, claims imprest accounts, or approved dividend payments. The Treasurer shall escheat to the State of New Jersey checks, which remain outstanding for twelve or more months after the date of issuance. However, prior to implementing such procedures, the Treasurer, with the assistance of the claims agent, as needed, shall confirm that the outstanding check continues to represent a valid claim against the Commission. 12

16 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION DESIGNATING AUTHORIZED SIGNATURES FOR COMMISSION BANK ACCOUNTS BE IT RESOLVED by the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter the Commission) that all funds of the Commission shall be withdrawn from the official named depositories by check, which shall bear the signatures of at least two (2) of the following persons who are duly authorized pursuant to this resolution, except for those checks in the amount of $100,000 or more and in that instance at least three signatures shall be required; and Gerald Seneski Ken Mecouch Anthony Bontempo BE IT FURTHER RESOLVED that for funds in the amount of $2,500 or less, withdrawn from the official named depositories by check prepared by the Commission s Claims Administrator for the purposes of satisfying workers compensation claims, such checks shall bear the signature of at least one (1) of the following persons who are duly authorized pursuant to this resolution. Gerald Seneski Ken Mecouch Anthony Bontempo ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 13

17 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION APPOINTING AGENT FOR SERVICE OF PROCESS AND CUSTODIAN OF RECORDS FOR THE COMMISSION FOR THE YEAR 2018 WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the CCIC has deemed it necessary and appropriate to formally organize for the 2018 commission year; and NOW THEREFORE be it resolved by the Cumberland County Insurance Commission that PERMA Risk Management Services is hereby appointed as agent for service of process upon the CCIC, at its offices located at 9 Campus Drive, Suite 16, Parsippany, NJ and at 401 Route 73, Marlton NJ for the year 2018 or until its successor has been appointed and qualified. Said appointment shall be at no cost to the CCIC. BE IT FURTHER RESOLVED that PERMA Risk Management Services shall also be the Custodian of Records at no cost to the CCIC. ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 14

18 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION DESIGNATING OFFICIAL NEWSPAPER(S) FOR THE COMMISSION WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the CCIC has deemed it necessary and appropriate to formally organize for the 2018 commission year; and BE IT RESOLVED by the CCIC, the Daily Journal and/or The South Jersey Times are hereby designated as the official newspapers for the Commission and all official notices required to be published and shall be published in these newspapers. BE IT FURTHER RESOLVED that the designation of official newspapers shall be effective upon adoption of the within resolution through the 2019 re-organization of the CCIC. BE IT FURTHER RESOLVED that in the case of special meetings or emergency meetings, the CCIC shall give notice of said meetings. ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 15

19 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION ESTABLISHING PUBLIC MEETING PROCEDURES WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION (hereinafter CCIC ) is duly constituted as an Insurance Commission pursuant to N.J.S.A. 40A:10-6 et seq.; and WHEREAS, the CCIC has deemed it necessary and appropriate to formally establish meeting procedures for the 2018 Fund Year; and NOW, THEREFORE BE IT RESOLVED, by the Commissioners of the Cumberland County Insurance Commission that the CCIC shall hold public meetings during the year 2018 as follows: TIME DATE LOCATION PURPOSE 11:00 AM April 5, 2018 Cumberland County Administration Bldg. Regular Meeting 164 West Broad Street Bridgeton, NJ :00 AM June 7, 2018 Regular Meeting 11:00 AM August 2, 2018 Regular Meeting 11:00 AM October 4, 2018 Regular Meeting 11:00 AM December 6, 2018 Regular Meeting 11:00 AM February 7, 2019 Reorganization Meeting ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 16

20 RESOLUTION NO Cumberland County Insurance Commission 2018 Plan of Risk Management BE IT RESOLVED by the Insurance Commission s governing body that effective 01/01/18 the 2018 Plan of Risk Management shall be: 1.) The perils or liability to be insured against. a.) The Insurance Commission insures the following perils or liability: Workers' Compensation including Employer's Liability, USL&H and Harbor Marine/Jones Act. General Liability including Law Enforcement Liability and Employee Benefits Liability. Automobile Liability including PIP and Uninsured/Underinsured Motorists Coverage. Property, Auto Physical Damage and Boiler & Machinery. b.) The following coverage are provided to the Insurance Commission s member entities by their membership in the New Jersey Counties Excess Joint Insurance Fund (NJC). Excess Workers' Compensation Excess General Liability Excess Auto Liability Excess Property including Boiler and Machinery Public Officials Liability/School Board Legal/Employment Practices Liability Crime Pollution Liability Medical Professional and General Liability 17

21 Employed Lawyers Liability Cyber Liability Non-Owned Aircraft Liability 2.) The limits of coverage. a.) Workers' Compensation limits. The Insurance Commission covers $300,000 per occurrence including: Employer's Liability - $300,000 per occurrence. USL&H $300,000 per occurrence. Harbor Marine/Jones Act - $300,000 per occurrence. The NJC covers excess workers compensation claims to the following limits. Workers' Compensation Statutory excess of the Insurance Commission s $250,000. Employer's Liability - at a sub-limit of $25,750,000 excess of the Insurance Commission s $250,000. USL&H $250,000 less NJ State benefits excess of member s SIR of $300,000. Harbor Marine/Jones Act - $250,000 less NJ State benefits excess of member s SIR of $300,000. NJC retains limits of $250,000 excess $300,000 for Workers Compensation and Employers Liability. NJC purchases from Underwriters at Lloyds $450,000 excess $500,000 each occurrence/employee and purchases from Safety National Casualty Company Statutory Workers Compensation limits excess of $1,000,000 and $5,000,000 excess of $1,000,000 for Employers Liability. Additional Employers Liability limits of $15,000,000 excess of $6,000,000 are purchased from Underwriters at Lloyds, excess $5,000,000 from Argonaut. b.) General Liability limits. The Insurance Commission covers $250,000 per occurrence. 18

22 Law Enforcement - included in the General Liability limits. Employee Benefits Liability - included in the General Liability limits. Subsidence - $250,000 per occurrence Owned Watercraft 35 in length or less - $250,000. Garagekeepers Legal Liability - $250,000 The NJC covers excess liability claims as follows: General Liability - $20,250,000 excess the Insurance Commission s $250,000. The $15,000,000 excess $500,000 commercial excess layer is subject to a $20,000,000 annual aggregate per member insurance commission. The $5,000,000 excess $15,500,000 commercial excess layer is subject to a $5,000,000 annual aggregate limit. Law Enforcement - included in the NJC's excess General Liability limits. Employee Benefits Liability - included in the NJC's excess General Liability limits. Subsidence - $750,000 per occurrence excess of the Insurance Commission s $250,000. NJC retains 100% of the limit excess of the Member s retention. Owned Watercraft 35 in length or less - $750,000 excess of the Insurance Commission s $250,000. NJC retains 100% of the limit excess of the Member s retention. Garagekeepers Legal Liability - $250,000 excess of the Insurance Commission s $250,000. NJC retains 100% of the limit excess of the Member s retention. NJC retains limits of $250,000 excess $250,000 and purchases from Underwriters at Lloyds limits of $15,000,000 per occurrence and a $20,000,000 aggregate for the annual policy period excess over and above $500,000. NJC also purchases from Argonaut limits of $5,000,000 per occurrence and a $5,000,000 annual aggregate excess over and above the $15,000,000/$20,000,000 with Underwriters at Lloyds. 19

23 c.) Automobile Liability limits. The Insurance Commission covers automobile liability claims as follows: Automobile Bodily Injury and Property Damage Liability claims at a combined single limit of $250,000. The Insurance Commission covers $250,000 for Personal Injury Protection (PIP). The Insurance Commission covers $15,000/$30,000/5,000 for Underinsured/Uninsured Motorists Liability: 1) for all vehicles part of the Cumberland Area Transit System (CATS). The Insurance Commission covers the following Medical Expenses for all vehicles part of Cumberland Area Transit System (CATS): 1) $250,000 per passenger, per vehicle; and 2) $10,000 all other. The NJC covers excess automobile liability claims as follows: Automobile Bodily Injury and Property Damage Liability claims excess of the Insurance Commission s $250,000 CSL limit. Included in the NJC's excess General Liability limits as shown above. NJC retains limits of $250,000 excess $250,000 and purchases from Underwriters at Lloyd s limits of $15,000,000 per occurrence excess over and above $500,000. NJC also purchases from Argonaut limits of $5,000,000 per occurrence excess over and above the $15,000,000 with Underwriters at Lloyds. Please note, an aggregate limit does not apply to automobile liability coverage. The NJC does not provide excess PIP, Medical Expenses (CATS) or Uninsured/Underinsured Motorist Coverage. The PIP and Uninsured/Underinsured Motorist coverages shall follow the most current statutory guidelines provided by the State of New Jersey. The excess general liability, auto liability, law enforcement liability and employers liability limits with Underwriters at Lloyds, Argonaut are per member Commission and are shared limits amongst CUIC member entities. 20

24 d.) Public Officials Liability/School Board Legal/Employment Practices Liability The NJC via the commercial market covers public officials liability, school board legal liability (where applicable) and employment practices liability as follows: $10,000,000 each claim and in the annual aggregate on a claims made basis per member Insurance Commission subject to the retentions as outlined below: Cumberland County - $100,000 POL/$250,000 EPL Cumberland County IA - $15,000 POL/$25,000 EPL Cumberland County UA - $15,000 POL/$25,000 EPL e.) Excess Public Officials Liability/Employment Practices Liability/School Board Legal Liability: The NJC does not purchase an additional excess public officials liability /school board legal liability/employment practices liability program. f.) Property/Equipment Breakdown Property Limits/Sub-limits The Insurance Commission covers $100,000 per occurrence less applicable member entity per occurrence deductibles. The Insurance Commission covers $250,000 per occurrence less applicable member entity per occurrence deductibles for Vacant property. The NJC provides excess property coverage and Equipment Breakdown coverage via the commercial market with Zurich and excess property coverage with Mitsui Sumitomo Insurance Company of America (33.33%); Velocity (33.33%); Starr Companies (33.33%) quota share basis with the following limits (SHARED BY ALL NJC MEMBER COMMISSIONS AND THEIR MEMBER ENTITIES) excess of the member retention and member entity per occurrence deductibles: Property Per Occurrence Limits: A. $110,000,000 Per Occurrence with Zurich B. $150,000,000 Per Occurrence with Mitsui Sumitomo Insurance Company of America (33.33%); Velocity (33.33%); Starr Companies (33.33%) 21

25 Property Sub-Limits: C. $260,000,000 per Occurrence Total Program Limit Earthquake - $200,000,000 (Annual Aggregate) Flood - $100,000,000 (Annual Aggregate) Except; Flood Inside Special Flood Hazard Area (SFHA) - $25,000,000 Asbestos Cleanup - $50,000 per occurrence Valuable Paper And Records - $10,000,000 Accounts Receivable - $10,000,000 Demolition & Increased Cost of Construction -$25,000,000 Business Interruption -Included in $110,000,000 blanket limit (Business Income On Revenue Producing Property Only) Extra Expense $10,000,000 Transit- $1,000,000 Per Conveyance/$1,000,000 Per Occurrence Fine Arts - $2,500,000 (Owned And Non Owned) Pollution And Contamination Cleanup (Limited) - $250,000 (Annual Aggregate) Miscellaneous Unnamed Locations - $10,000,000 New Construction and Additions $25,000,000 (the lesser of $1,000,000 sublimit or 60 days for soft costs, subject to applicable deductible per cause of loss and 24 hour qualifying period) Newly Acquired Locations $25,000,000 per location (90 day reporting period) Service Interruption - $10,000,000 Combined Time Element and Property Damage Including Overhead Transmission Lines within 1 mile of insured premises, 24 hour qualifying period) Ingress/Egress 30 Day Period for Property with a 5 mile radius not to exceed a $5,000,000 limit Debris Removal -$25,000,000 Civil Government Authority Lesser of $5,000,000 or 30 day period, within 5 mile radius Leasehold Interest - $15,000,000 Loss Of Rents - $15,000,000 Professional Fees - $1,250,000 Extended Period of Liability 365 Days Auto Physical Damage - $15,000,000 Underground Piping - $5,000,000 (only if within 5 MILES of a pump station, process plant, metering pit, wells or similar operational locations which are owned, leased, used occupied or intended for use by the member entity). There is no coverage for the perils of earthquake, Flood or named Storm EDP Equipment Subject to a 24 hour qualifying period. No sublimit for equipment. $1,000,000 sublimit for data and software 22

26 Outdoor Property - $10,000,000 Equipment Breakdown - $100,000,000 Ammonia Contamination - $5,000,000 Spoilage - $5,000,000 Extended Period Of Indemnity Days Note: There is an Excess Property Policy with Mitsui Sumitomo Insurance Company of America (33.33%); Velocity (33.33%); Starr Companies (33.33%) on a quota share basis which extends the Per Occurrence Policy Limits by $150,000,000 to a total of $260,000,000. The excess policy provides a sub-limit of $25,000,000 excess of the underlying $110,000,000 per occurrence for Named Storm Wind and Hail for Atlantic, Cape May, Ocean, Monmouth and Cumberland counties. Coverage sub-limits on the Primary policy are excluded by the Excess Property policy, including Equipment Breakdown. The primary limit is $110,000,000. There is an Excess Flood/Earthquake policy placed with Aspen Specialty (25%) / AXIS Surplus (30%) / Endurance American Specialty (20%) / Velocity Risk Underwriters (25%) which provides: $50,000,000 aggregate policy limit for Flood coverage excess of the aggregate policy limits provided by Zurich ($25,000,000 for locations inside the 100-Year Flood Zone, $50,000,000 for all other locations, as noted above); and $100,000,000 aggregate policy limit for Earthquake coverage excess of the $100,000,000 aggregate policy limit provided by Zurich (noted above). Property Deductibles The standard member insurance commission retention is $100,000 per occurrence less member entity per occurrence deductibles below. Also applies to time element, auto physical damage and flood (except as noted below). Cumberland County - $5,000 Property and Auto Physical Damage Comprehensive Cumberland County IA- $5,000 Property and $1,000 Auto Physical Damage Cumberland County UA - $1,000 Property and $1,000 Auto Physical Damage The Vacant Properties deductible is $250,000 The Equipment Breakdown deductible is $25,000 member entity deductible per occurrence. 23

27 The Earthquake Member Insurance Commission retention is $100,000 per occurrence less member entity deductibles. The Flood Member Insurance Commission retention is $100,000 per occurrence (combined property damage and time element) less member entity per occurrence deductibles. Flood loss for property within the Special Flood Hazard Area (SFHA) is subject to a deductible of $500,000 each building for municipality buildings, and $500,000 each building for building contents member entity deductible per occurrence; and $100,000 for each building for loss of income or the National Flood Insurance Plan s (NFIP) maximum available limits for public entities, whichever is greater, regardless of whether National Flood Insurance program coverage is purchased or not. Losses shall also be adjusted subject to a $100,000 per occurrence Insurance Commission deductible for pumping stations, pistol ranges, vehicles and mobile equipment less the applicable member entity deductible. Named Storm as respects to covered property in Atlantic, Ocean, Monmouth and Burlington Counties located east of the Garden State Parkway and any covered property in Cape May County For Property Damage: subject to a deductible of 1% of the value, per the Schedule of Values on file with the company as of the date of loss, for those Buildings where the direct physical loss or damage occurred, per occurrence; For Time Element: 1% of the full 12 months Gross Earnings or Gross Profit values that would have been earned following the occurrence by use of the facilities at the Location where the direct physical loss or damage occurred and all other Locations where Time Element loss ensues, per occurrence. The 1% Time Element deductible does not apply Extra Expense. Combined PD and TE deductible subject to a minimum deductible of $250,000 per Location and a maximum deductible of $1,000,000 per occurrence. Note: Where there is and underlying Insurance Commission such as exist in Cumberland The Cumberland County Insurance Commission provides coverage for the difference in deductible for insured property resulting from insured perils (per the terms and conditions of the Zurich policy through the NJC JIF), but only for what is not reimbursed by FEMA less the member entity deductible. The Cumberland County Insurance Commission will not provide coverage for the difference in deductible for time element loss. Named Storm is defined as any storm or weather disturbance that is named by the U.S. National Oceanic and Atmospheric Administration (NOAA) or 24

28 the U.S. National Weather Service or the National Hurricane Center or any comparable worldwide equivalent.. Location is defined as a building(s) bounded on all sides by public streets, clear land space or open waterways, each not less than 50 feet wide, a site or tract of land occupied or available for occupancy with tangible property. If the Named Storm involves covered property within the 100-year flood zone, the 100-year flood zone deductible above applies. Underground Piping $100,000 per occurrence less the member entity deductibles as stated above. There is no coverage for the perils of Earthquake, Flood or Named Storm Golf Carts - $25,000 g.) Crime The NJC via the commercial market provides crime coverage at the following limits and deductibles (the Insurance Commission retains no risk for Crime): Limit per occurrence: Cumberland County $1,000,000 Deductible per occurrence: Cumberland County $25,000 NJC does not retain any risk as it is fully insured in the commercial market. h.) Pollution Liability The NJC via the commercial market provides pollution liability coverage at the following limits and deductibles (the Insurance Commission retains no risk for Pollution Liability): Limit of Liability: $1,000,000 per claim and $1,000,000 annual aggregate-cumberland County UA only. Limit of Liability: $10,000,000 per claim and $25,000,000 annual aggregate Cumberland County. Member Entity Deductible: $25,000 NJC does not retain any risk as it is fully insured in the commercial market. All policy aggregate limits are shared by the Camden County Insurance Commission, Gloucester County Insurance Commission, Union County, Burlington County Insurance Commission, Mercer County Insurance Commission, Cumberland County, Cumberland County Utilities Authority, 25

29 Ocean County Mosquito Extermination Commission and Atlantic County Utilities Authority. i.) Medical Professional General Liability/Excess Medical Professional The NJC via the commercial market provides medical professional general liability/excess medical professional coverage at the following limits and deductibles (the Insurance Commission retains no risk for medical professional general liability): Limit per claim/annual aggregate: $1,000,000/$3,000,000 This primary aggregate limit is shared by each member entity of each NJC member Commission. Excess Limit annual aggregate: $20,000,000/$20,000,000 Excess Limit is a Shared limit with ACIC, BCIC, CCIC, CuCIC and GCIC. Member Entity Deductibles GL and PL: Cumberland County Outpatient Clinic $50,000 Department of Corrections - $100,000 Cumberland County Department of Human Services Division of Mental Health & Addiction Services. - $50,000 NJC does not retain any risk as it is fully insured in the commercial market. j.) Employed Lawyers Professional Liability The NJC via the commercial market provides employed lawyers professional liability coverage at the following limits and deductibles (the Insurance Commission retains no risk for employed lawyers professional liability): Limit per claim and annual aggregate: $5,000,000/$10,000,000 Member Entity Self Insured Retentions: Cumberland County $25,000 All Other Entities: Not applicable NJC does not retain any risk as it is fully insured in the commercial market. All policy aggregates limits are shared by all NJC member Commissions and their respective member entities. k.) Cyber Liability Network Privacy & Security Liability 26

30 The NJC via the commercial market provides on an optional basis network privacy & security liability coverage at the following limits and deductibles (the insurance commission retains no risk for network privacy & security liability coverage): Limits per claim and annual aggregate: o Cyber, Privacy and Security Liability: $2,000,000 o Regulatory Proceedings: $2,000,000 o Payment Card Loss: $2,000,000 o Cyber Incident Response Team: $2,000,000 o Business Interruption Loss & Extra Expense: $2,000,000 o Digital Data Recovery: $2,000,000 o Network Extortion: $2,000,000 o Contingent Business Interruption: $1,000,000 o Social Engineering: $100,000 Retention per member entity: o Cyber, Privacy and Security Liability: $25,000 o Regulatory Proceedings: $25,000 o Payment Card Loss: $25,000 o Cyber Incident Response Team: $25,000 o Cyber Incident Response Coach: $0 o Business Interruption Loss & Extra Expense: $25,000/12 Hours o Digital Data Recovery: $25,000 o Network Extortion: $25,000 o Contingent Business Interruption: $25,000/12 Hours o Cyber Crime: $25,000 Participating member entities are: o Cumberland County o Cumberland County Improvement Authority l.) Non-Owned Aircraft. The NJCE covers $9,000,000 CSL for Bodily Injury and Property Damage Liability, and $5,000 medical expense for each passenger. NOTICE: The above description is a general overview of the coverage and limits provided by the Insurance Commission. The actual terms and conditions are defined in the individual policy documents and this Risk Management Plan. All issues and/or conflicts shall be decided upon by the individual policy documents. 3.) The amount of risk to be retained by the Insurance Commission (except as noted in section 2. Limits of coverage). 27

31 a.) b.) c.) d.) Workers' Compensation (all coverages) - $300,000 CSL General Liability (all coverages) - $250,000 CSL Law Enforcement Liability Included in General Liability Automobile Liability Property Damage & Bodily Injury - $250,000 CSL Underinsured/Uninsured - $15,000/$30,000/$5,000 CSL Personal Injury Protection - $250,000 CSL Medical Expenses (CATS) - $250,000 CSL e.) Public Officials Liability/School Board Legal/Employment Practices Liability - None f) Property/APD - $100,000 per occurrence less member deductibles. Vacant Property - $250,000 per occurrence g) Crime None h) Pollution Liability None i) Medical Professional General Liability None j) Employed Lawyers Liability None k) Cyber Liability - None 4.) The amount of unpaid claims to be established. a.) The general reserving philosophy is to set reserves based upon the probable total cost of the claim at the time of conclusion. Historically, on claims aged eighteen (18) months, the Insurance Commission expects the claims servicing company to set reserves at 85% accuracy. The Insurance Commission also establishes reserves recommended by the Insurance Commission s Actuary for claims that have been incurred but not yet reported so that the Insurance Commission has adequate reserves to pay all claims and allocated loss adjusted expense liability. b.) Claims reserves are subject to regular review by the Insurance Commission s Executive Director/Administrator, Attorney, Board of Commissioners and claims servicing company. Reserves on large or unusual claims are also subject to review by the claims departments of the commercial insurance 28

32 companies or reinsurance companies providing primary or excess coverages to the Insurance Commission either directly or through the NJC JIF. 5.) The method of assessing contributions to be paid by each member of the Insurance Commission. a.) b.) c.) d.) e.) By November 15th of each year, the actuary computes the probable net cost for the upcoming Insurance Commission year by line of coverage and for each prior Insurance Commission year. The Actuary includes all budget items in these computations. The annual assessment of each participating member entity is it s pro rata share of the probable net cost of the upcoming Insurance Commission year for each line of coverage as computed by the Actuary. The calculation of pro rata shares is based on each member s experience modified manual premium for that line of coverage. The Insurance Commission s Governing Body also adopts a capping formula which limits the increase of any member's assessment from the preceding year to the Insurance Commission wide average increase plus a percentage selected by the Governing Body. The total amount of each member's annual assessment is certified by majority vote of the Insurance Commission s Governing Body at least one (1) month prior to the beginning of the next fiscal year. The Treasurer deposits each member's assessment into the appropriate accounts, including the administrative account, and the claim or loss retention trust Insurance Commission account by Insurance Commission year for each type of coverage in which the member participates. If a member entity becomes a member of the Insurance Commission or elects to participate in a line of coverage after the start of the Insurance Commission year, such participant's assessments and supplement assessments are reduced in proportion to that part of the year which had elapsed. The Insurance Commission s Governing Body may by majority vote levy upon the participating member entities additional assessments wherever needed or so ordered by the Commissioner of Insurance to supplement the Insurance Commission s claim, loss retention or administrative accounts to assure the payment of the Insurance Commission s obligations. All supplemental assessments are charged to the participating member entities by applicable Insurance Commission year, and shall be apportioned by the year's assessments for that line of coverage. f.) Should any member fail or refuse to pay its assessments or supplemental assessments, or should the Insurance Commission fail to assess funds required to meet its obligations, the Chairman, or in the event by his or her failure to do so, the custodian of the Insurance Commission s assets, shall 29

33 notify the Commissioner of Insurance and the Director of Community Affairs. Past due assessments shall bear interest at the rate established annually by the Insurance Commission s Governing Body. 6.) Procedures governing loss adjustment and legal expenses. a.) The Insurance Commission engages a claims service company to handle all claims. The performance of the claims adjusters is monitored and periodically audited by the Executive Director's office, the Insurance Commission Attorney, the NJC's attorney's office, as well as the claims department of the NJC's five major excess insurers (i.e. Underwriters at Lloyds, Argonaut for excess liability; Wesco Insurance Company and Safety National Casualty Company for workers' compensation). Every three years, the NJC's internal auditors may conduct an audit. b.) c.) d.) Each member entity is provided with a claims reporting procedure and appropriate forms. In order to control workers' compensation medical costs, the Insurance Commission has engaged a managed care organization (MCO) through the claims service company whose procedures are integrated into the Insurance Commission s claims process. To provide for quality defense and control costs, the Insurance Commission has established an approved defense attorney panel with firms which specialize in Title 59 matters. The performance of the defense attorneys is overseen by the Insurance Commission Attorney, as well as, the various firms which audit the claims adjusters. 7.) Coverage to be purchased from a commercial insurer, if any. The Insurance Commission does not purchase commercial insurance. 8.) Reinsurance to be purchased. The Insurance Commission does not purchase reinsurance. 9.) Procedures for the closure of Insurance Commission years, including the maintenance of all relevant accounting records. a.) Not applicable at this time. 10.) Assumptions and Methodology used for the calculation of appropriate reserves requirements to be established and administered in accordance with sound actuarial principles. 30

34 a.) b.) The general approach in estimating the loss reserves of the Insurance Commission is to project ultimate losses for each Insurance Commission year using paid and incurred loss data. Two traditional actuarial methodologies are used: the paid loss development method and the incurred loss development method. From the two different indications resulting from these methods the Insurance Commission Actuary chooses a "select" estimate of ultimate losses. Subtraction of the paid losses from the select ultimate losses yields the loss reserve liability or Insurance Commission funding requirement. The following is an overview of the two actuarial methods used to project the ultimate losses. Paid Loss Development Method - This method uses historical accident year paid loss patterns to project ultimate losses for each accident year. Because this method does not use case reserve data, estimates from it are not affected by changes in case reserving practices. However, the results of this method are sensitive to changes in the rate of which claims are settled and losses are paid, and may underestimate ultimate losses if provisions are not included for very large open claims. Case Incurred Loss Development Method - This method is similar to the paid loss development method except it uses historical case incurred loss patterns (paid plus case outstanding reserves) to estimate ultimate losses. Because the data used includes case reserve estimates, the results from this method may be affected by changes in case reserve adequacy. 11.) The maximum amount a certifying and approving officer may approve pursuant to N.J.A.C. 11: $15,000 for workers compensation claims $7,500 for liability claims With the advance approval of the Insurance Commission Attorney or Executive Director, the certifying and approving officer may also pay hospital bills if waiting until after the next regularly scheduled Insurance Commission meeting would result in the loss of a discount on such bills. When the certifying and approving officer utilizes this authority, a report shall be made to the Commissioners at their next meeting. 31

35 Adopted by the Governing Body this 1st day of February CUMBERLAND COUNTY INSURANCE COMMISSION, CHAIRMAN ATTEST:, VICE CHAIRMAN 32

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38 RESOLUTION NO RESOLUTION AUTHORIZING AND ADOPTING THE 2018 BUDGET FOR THE CUMBERLAND COUNTY INSURANCE COMMISSION AND CERTIFYING MEMBER ASSESSMENTS WHEREAS, the CUMBERLAND COUNTY INSURANCE COMMISSION is required under State regulation to adopt an annual budget in accordance with the Fiscal Affairs Law; and NOW THEREFORE BE IT RESOLVED the appropriations in the total amount of $2,950,123 is herby authorized & approved and assessments for member entities are certified. ADOPTED by the CUMBERLAND COUNTY INSURANCE COMMISSION at a properly noticed meeting held on February 1, ADOPTED: BY: CHAIRMAN ATTEST: VICE CHAIRMAN 35

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56 Cumberland County Insurance Commission Claims Committee 2018 Meeting Schedule All meetings will be held in the Freeholder Conference Room 164 W. Broad Street, Bridgeton NJ at 11:00AM OR via Conference Call January 16, 2018 February 20, 2018 March 20, 2018 April 17, 2018 May 15, 2018 June 19, 2018 July 17, 2018 August 21, 2018 September 18, 2018 October 16, 2018 November 20, 2018 December 18,

57 RESOLUTION NO CUMBERLAND COUNTY INSURANCE COMMISSION BILLS LIST FEBRUARY 2018 WHEREAS, the Treasurer has certified that funding is available to pay the following bills: BE IT RESOLVED that the Cumberland County Insurance Fund Commission, hereby authorizes the Commission Treasurer to issue warrants in payment of the following claims; and FURTHER, that this authorization shall be made a permanent part of the records of the Commission. FUND YEAR 2017 CheckNumber VendorName Comment InvoiceAmount INSERVCO INSURANCE SERVICES CLAIMS ADMIN - 12/2017 4, , PERMA RISK MANAGEMENT SERVICES POSTAGE FEE 12/ PERMA RISK MANAGEMENT SERVICES POSTAGE FEE 09/ PERMA RISK MANAGEMENT SERVICES POSTAGE FEE 11/ MICHAEL PARMENTER CONDCT 8HR MNTL HLTH 1ST AID TRNG 12/17 3, , AMY HASSA CONDCT 8HR MNTL HLTH 1ST AID TRNG 12/ NEAL A. STEPHENS CONDCT 8HR MNTL HLTH 1ST AID TRNG 12/17 3, , TOTAL PAYMENTS FY , FUND YEAR 2018 CheckNumber VendorName Comment InvoiceAmount INSERVCO INSURANCE SERVICES CLAIMS ADMIN - 01/2018 4, , PERMA RISK MANAGEMENT SERVICES EXECUTIVE DIRECTOR FEE 1ST QTR , , HARDENBERGH INSURANCE GROUP RMC FEE 1ST QTR CUUA 1, HARDENBERGH INSURANCE GROUP RMC FEE 1ST QTR CUIA 6, HARDENBERGH INSURANCE GROUP RMC FEE 1ST QTR CUMBERLAND COUNTY 29, ,

58 TOTAL PAYMENTS FY , TOTAL PAYMENTS ALL FUND YEARS $ 76, Chairperson Attest: Dated: I hereby certify the availability of sufficient unencumbered funds in the proper accounts to fully pay the above claims. Treasurer 55

59 CUMBERLAND COUNTY INSURANCE COMMISSION SAFETY DIRECTOR S REPORT TO: FROM: Fund Commissioners J.A. Montgomery Risk Control, Safety Director DATE: January 27, 2018 Paul Shives, Vice President Public Sector Director pshives@jamontgomery.com Office: CUIC SERVICE TEAM Glenn Prince, Associate Public Sector Director gprince@jamontgomery.com Office: Cell: Natalie Dougherty, Executive Assistant ndougherty@jamontgomery.com Office: December February 2018 RISK CONTROL ACTIVITIES MEETINGS ATTENDED / LOSS CONTROL VISITS AND TRAINING CONDUCTED December 7: Attended the CUIC meeting in Bridgeton. December 12: Attended the CUIC Safety Committee Meeting in Bridgeton. December 19: Plan to attend the CUIC Claims Committee Meeting via conference call. January 16: Attended the CUIC Claims Committee Meeting via conference call. UPCOMING MEETINGS / LOSS CONTROL VISITS PLANNED February 1: Plan to attend the CUIC meeting in Bridgeton. February 13: Plan to attend the CUIC Safety Committee Meeting in Bridgeton. February 20: Plan to attend the CUIC Claims Committee Meeting via conference call. CEL VIDEO LIBRARY USAGE Twenty four videos have been utilized in SAFETY DIRECTOR BULLETINS 56

60 Annual reminder to check MVRs January 12. New CDL Opioid Testing Regulations January

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66 Post Office Box Sagemore Drive, Suite 8101 Marlton, New Jersey Fax TO: CC: FROM: Commissioners of the Cumberland County Insurance Commission (CCIC) Joseph Porch and Brad Stokes, CumbCIC Executive Director Christopher Powell and Bonnie Ridolfino, Risk Management Consultant DATE: 2/01/18 RE: Risk Management Consultant s Report Safety and Training 10/10/17 Safety and Accident Review Committee Meeting Minutes Attached are the approved 10/10/17 Safety and Accident Review Committee Meeting Minutes. The 12/12/17 Meeting Minutes will be included in the next agenda packet contingent upon their approval. Risk Management NJCEL reinsurer BRIT Safety Grant The Mental Health First Aid for Public Safety Training was conducted on December 4 th, 7 th, 11 th, 15 th and 19 th. There were 147 Correction Officers which received training. The feedback received from the officers was extremely positive and some comments provided were: awesome and engaging, knowledgeable and fun, great instructors and enjoyed the hands on activities. The Commission provided up to $11,712 for training cost to which the BRIT Safety grant would reimburse the Commission $5,856. The cost for this training has been included on the current bill list. Cyber Liability Coverage Effective 1/1/18, the cyber liability coverage has moved from AIG to Chubb. Our office will distribute new laminated wallet cards with all pertinent contact information including the hotline number and policy number to all members at the 2/13/18 Safety and Accident Review Committee Meeting. The previous cards are to be destroyed by all members. Until the new cards are received, in the event of a cyber incident, please advise the member designated employee to immediately call the Chubb Cyber Incident Response Coach Hotline number The information needed for the call is: policy number (EONG ), date of the incident and a brief description of the incident. Immediately contact our office upon completion of the call with the hotline. Attached are the services which Chubb provides. We will schedule a meeting with the County IT supervisor to discuss. 63

67 Also, the NJCEL is offering 2 options to increase limits to $3,000,000 per occurrence / $3,000,000 annual aggregate or $5,000,000 per occurrence / $5,000,000 annual aggregate. The retention would remain the same at $25,000. We will be recommending to the members to increase the limit from $2,000,000 per occurrence / $2,000,000 annual aggregate to $5,000,000 per occurrence / $5,000,000 annual aggregate. This will be discussed further at the meeting. Employment Practices Legal Liability Coverage Effective 1/1/18, the Employment Practices Legal Liability coverage has also moved from AIG to Chubb. There are various training available to which we are getting details and will share with County Counsel Claims Charter Attached is the 2018 Claims Charter. The only amendment is the increase in payment authority for all property and liability claims from $7,500 to $10,000. Action Requested: Motion to adopt the revised Claims Charter. Third Party Small Property Claim Payment Procedure Enclosed is a third party small property claim payment procedure which would expedite payment on third party property claims to which a Cumberland County Insurance Commission member is 100% at fault; there is no potential for bodily injury and the property damaged is less than $2,500. Also enclosed is an abridged tort claim form to which the third party would be required to complete in order to file a claim against the Commission member. Action Requested: Motion to adopt the Third Party Small Property Claim Payment Procedure and Abridged Tort Claim Form Recoveries on Property Damage Claims (i.e. Auto and Traffic Light) under County s $5,000 deductible The County has recovered $16,411 for auto property claims to which a third party was at fault. In addition, the County has recovered $13, for traffic signal knockdowns to which a third party was at fault. To date, there are 5 property damage claims which remain open to which 3 County Counsel is pursuing. Our office is pursuing the remaining 2 claims. If a Commissioner would like the details for any of the claims, please contact our office. Serving Families and Businesses of the Delaware Valley since 1954 Gibbstown 618 E. Broad Street Gibbstown, NJ Main Office 8000 Sagemore Drive, Suite 8101 Marlton, NJ Philadelphia PO Box Philadelphia, PA 19107

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74 CUMBERLAND COUNTY INSURANCE COMMISSION CLAIMS COMMITTEE MEETING SCHEDULE, ASSIGNMENTS AND CLAIMS CHARTER The Claims Committee will conduct meetings on the following schedule: Claims Committee Meetings will be held on the third Tuesday of each month at 11 am at the County Administration Building, 164 W. Broad Street, Bridgeton, NJ CLAIMS COMMITTEE ASSIGNMENTS Committee Members Name Ken Mecouch (Chair) Craig Atkinson/Henrietta Barreras Jerry Velaquez/Janet Heck Steven Errickson Affiliation Cumberland County Insurance Commission Cumberland County Cumberland County Improvement Authority Cumberland County Utilities Authority Fund Professionals Theodore Baker Commission Counsel Bradford Stokes PERMA Joe Porch PERMA Hardenbergh Insurance Group Representative Conner Strong & Buckelew Representative J.A. Montgomery Representatives Inservco Insurance Services Representatives January 2014 Edition Amended April 3, 2014 Amended February 3, 2015 Amended February 4, 2016 Amended April 6, 2017 Amended February 1,

75 CUMBERLAND COUNTY INSURANCE COMMISSION CLAIMS COMMITTEE MEETING SCHEDULE, ASSIGNMENTS AND CLAIMS CHARTER CLAIMS COMMITTEE CHARTER The Cumberland County Insurance Commission hereby constitutes and establishes a Claims Committee, an advisory committee authorized by the Commission s rules and regulations: Composition The Claims Committee shall be comprised of at least one representative from each member of the Cumberland County Insurance Commission and one Cumberland County Insurance Commissioner. Each representative shall have one vote. As additional members join the Cumberland County Insurance Commission, a representative from the new member entity shall be appointed to the Claims Committee. Also serving on the Committee, with no voting privileges, shall be a representative from the Executive Director s office, the Fund Attorney, a representative from the County s Risk Management Consultant s office, a representative from the Third Party Administrator s office, and a representative from the CEL s Safety Director s office. Authority and Responsibility 1. The Claims Committee shall review and recommend for approval or denial all payment authority requests which exceed the total authority of a member s deductible plus ten thousand dollars ($10,000) for Property, including Boiler & Machinery, Auto Liability, General Liability including Law Enforcement Legal Liability, and fifteen thousand dollars ($15,000) for Workers Compensation Claims, inclusive of legal fees, expenses, and such other items to be charged to the Cumberland County Insurance Commission. This notification also includes any prior claim where a request for additional payment authority is needed beyond an amount previously approved, any requests for lien compromises, and any subrogation abandonment requests. 2. The Claims Committee shall review and recommend for approval or denial all settlement authority requests. 3. The Claims Committee shall develop and recommend claims cost containment programs. 72

76 Claims Committee Bylaws The Claims Committee of the Cumberland County Insurance Commission was established in February 2013, where the Cumberland County Insurance Commission adopted a resolution appointing certain employees of member entities to the Claims Committee, an advisory committee authorized by the Commission s rules and regulations. The Committee s operational guidelines are set down herein and may be amended by the Commissioners of the Cumberland County Insurance Commission. Meetings The Claims Committee shall meet at least monthly, on the third Tuesday of the month, and as many times as the Committee Chairman deems necessary. Meetings are to be held telephonically. In-person meetings will only be required if deemed necessary by the Chairman. Attendance A majority of members of the Claims Committee shall be present at all meetings. In addition, a representative from the Executive Director s office, the Fund Attorney, a representative from the Risk Management Consultant s office, a representative from the Third Party Administrator s Office, and a representative from the CEL s Safety Director s office shall attend such meetings. As necessary or desirable, the Chairman may request other professionals and/or member representatives to also attend in order to exchange views on any issue that may be at hand. Specific Duties In undertaking its responsibilities as outlined above, the Claims Committee is to: 1. Apprise the Commissioners of the Cumberland County Insurance Commission, through special presentations as necessary, of significant developments in the course of performing its responsibility. 2. Review and recommend for approval or denial all payment authority requests which exceed the total authority of a member s deductible plus ten thousand dollars ($10,000) for Property, including Boiler & Machinery, Auto Liability, General Liability including Law Enforcement Legal Liability, and ten thousand dollars ($15,000) for Workers Compensation inclusive of legal fees, expenses, and such other items to be charged to the Cumberland County Insurance Commission. This notification also includes any prior claim where a request for additional payment authority is needed beyond an amount previously approved, any requests for lien compromises, and any subrogation abandonment requests. 3. Review and recommend for approval or denial all settlement payment authorization requests. 73

77 4. Recommend to Commissioners of the Cumberland County Insurance Commission any appropriated changes or extensions in the duties of the Committee. 5. Report annually to the Commissioners of the Cumberland County Insurance Commission on the discharge of these responsibilities. January 2014 Edition Amended April 3, 2014 Amended February 3, 2015 Amended February 4, 2016 Amended April 6, 2017 Amended February 1,

78 CUMBERLAND COUNTY INSURANCE COMMISSION Purpose: Third Party Small Property Claim Payment Procedure The Cumberland County Insurance Commission (CCIC) was formed in order to provide control over risk financing an important element of which is proper management of its litigation. The CCIC seeks to aggressively defend frivolous claims, promptly settle valid claims and aggressively use all available defenses including Title 59 immunities in a cost effective manner. However, this must be balanced with the public demands placed on the CCIC members. One significant public demand placed upon the members is servicing the needs of their constituents in a cost effective and efficient manner. As such, this policy was developed to resolve claims in which a CCIC member is 100% at fault and the third party suffered damage to their property which is less than $2,500 as promptly and efficiently as possible. Procedure: 1. Member entity or RMC forwards the CCIC adopted ABRIDGED Notice of Claim form to claimant. 2. Claimant returns the ABRIDGED Notice of Claim form to member entity. 3. Member entity submits ABRIDGED Notice of Claim to entity s Risk Management Consultant. 4. Entity s risk management consultant submits claim to CCIC s third party administrator. 5. CCIC s third party administrator contacts member entity to confirm the cause of loss; will remit payment within 30 days of receipt of the report provided: There is no potential for bodily injury; and The total damage is less than $2,500; and The eligible damaged property is on the list below; and The eligible cause of loss is on the list below; The claimant signs a release form. If auto physical damage claim, CCIC will reimburse claimant no more than their personal auto deductible. If any of the above criteria are not met, the claims adjuster shall contact the CCIC attorney for further guidance. 6. CCIC s third party administrator will present all claims paid to the CCIC at their next scheduled meeting for informational purposes only. 7. CCIC s third party administrator must notify the Executive Director when $15,000 in total has been expended. Eligible Property including but not limited: Autos Signs Fences Lamp posts Glass Mailboxes Examples of Eligible Causes of Loss 75

79 Member s activities causes damage to a 3 rd party s property ( i.e. snowplowing, landscaping on roadways) 3 rd party property damage as a result of potholes (provided constructive notice was given) 76

80 ABRIDGED NOTICE OF CLAIM AGAINST MEMBERS OF CUMBERLANND COUNTY INSURANCE COMMISSION: CHECK WHICH MEMBER YOUR CLAIM IS ASSERTED AGAINST: Cumberland County Cumberland County Improvement Authority Cumberland County Utilities Authority 1. Identification of Claimant: Last Name First Middle Street Address City State Zip Code Date of Birth Phone No. 2. Post Office address where person presenting the claim desires notices to be sent: Street Address City State Zip Code 3. Circumstances of the occurrence giving rise to the claim: A. Date: Time: B. Give the exact location of occurrence (Indicate exact street address, if applicable): C. Describe in detail how the incident occurred. D. Provide the names and addresses of all eyewitnesses to the occurrence. E. Identify each and every Department, Division, Agency or Authority you claim is liable to you for property damages resulting from the occurrence. F. Property Damage you are claiming: (1.) describe the property that was damaged (2.) give the present location and time when the property may be inspected Page 77of ed. 77

81 (3.) give the date the property was acquired (4.) state the value of the property on the date of the occurrence (5.) give a description of the damage (6.) state the amount of loss being claimed (7.) if the property was repaired, state by whom, the amount of the repair, attaching a copy of each repair estimate. I certify that all of the foregoing statements made by me are true. I am aware that if any of the foregoing statements made by me are willfully false I am subject to punishment. CLAIMANT Page 78 of ed 78

82 CUMBERLAND COUNTY INSURANCE COMMISSION CUMULATIVE SAVINGS REPORT UNITS OF SERVICE BILLED APPROVED SAVINGS % SAVINGS PPO PENETRATION RATE MANAGED CARE FEE JANUARY 18 $4,389.1 $2,638.6 $1, % 100.0% $ FEBRUARY 11 $4,947.3 $2,753.6 $2, % 81.8% $ MARCH 27 $41,079.6 $10,057.4 $31, % 95.0% $4,032.8 APRIL 14 $7,096.7 $2,852.1 $4, % 90.3% $ MAY 11 $13,996.7 $6,958.3 $7, % 89.6% $ JUNE 23 $10,012.6 $5,499.0 $4, % 98.5% $ JULY 18 $10,831.7 $6,143.7 $4, % 100.0% $ AUGUST 38 $18,956.9 $8,161.2 $10, % 97.0% $1,403.4 SEPTEMBER 44 $107,351.6 $44,385.2 $62, % 96.8% $8,185.6 OCTOBER 40 $145,860.0 $56,601.9 $89, % 99.4% $11,603.5 NOVEMBER 29 $27,350.1 $14,650.2 $12, % 96.9% $1,650.9 DECEMBER 16 $9,887.4 $4,744.4 $5, % 91.2% $ TOTALS 289 $401, $165, $236, % 97.1% $30,

83 CUMBERLAND COUNTY INSURANCE COMMISSION PPO SAVINGS AND PENETRATION REPORT January 1, 2017 December 31, 2017 Units Of Service Billed Approved Savings % Savings Managed Care Fee Participating Provider 267 $390, $155, $234, % $30, Facility 30 $176, $79, $96, % $12, Ortho/Neuro 89 $147, $46, $101, % $13, Occ Med/Primary Care 106 $28, $16, $11, % $1, Physician Fees 24 $17, $6, $11, % $1, Anesthesia/Pain Management 5 $14, $3, $11, % $1, Other 9 $4, $3, $ % $ MRI/Radiology 3 $ $ $ % $32.72 Diagnostic Radiology 1 $ $72.74 $ % $8.22 MCCI 3 $3, $2, $1, % $ Anesthesia/Pain Management 3 $3, $2, $1, % $ Out Of Network 19 $8, $7, $ % $91.73 Other 14 $6, $6, $ % $87.83 Physician Fees 2 $ $ $ % $3.90 Diagnostic Radiology 3 $ $ $ % $0.00 Grand Total 289 $401, $165, $236, % $30, TOP 10 PROVIDER REPORT January 1, 2017 December 31, 2017 Units Of Service Approved INSPIRA MEDICAL CENTER VINELAND 16 $52, PREMIER ORTHOPAEDIC ASSOC OF SOUTHERN NJ 40 $33, INSPIRA HEALTH NETWORK URGENT CARE PC 85 $14, RECONSTRUCTIVE ORTHOPEDICS P A 49 $12, INSPIRA MEDICAL CENTER ELMER 7 $9, INSPIRA MEDICAL CENTER WOODBURY 2 $9, AMBULATORY CARE CENTER 1 $3, NEW JERSEY HEALTHCARE SPECIALISTS PC 3 $2, TOWNSHIP OF DEPTFORD 3 $2, MEDEXPRESS URGENT CARE NEW JERSEY, INC 17 $2, Grand Total 223 $141,

84 APPENDIX I MEETING MINUTES

85 CUMBERLAND COUNTY INSURANCE COMMISSION OPEN MINUTES MEETING DECEMBER 7, WEST BROAD STREET BRIDGETON, NJ 11:00 AM Meeting called to order by Chairperson Darlene Barber. Open Public Meetings notice read into record. ROLL CALL OF COMMISSIONERS: Darlene Barber Present Ken Mecouch Present Gerald Seneski Present ALTERNATE FUND COMMISSIONER: Kim Wood Present FUND PROFESSIONALS PRESENT: Executive Director PERMA Risk Management Services Joseph Porch, Bradford Stokes Karen A. Read ALSO PRESENT: Ted Baker, Cumberland County Anthony Bontempo, Cumberland County Craig Atkinson, Cumberland County Jerry Velazquez, Cumberland County Improvement Authority (telephonically) Bonnie Ridolfino, Hardenbergh Insurance Group Christina Violetti, Hardenbergh Insurance Group (telephonically) Keith Platt, Inservco Amy Zeiders, Inservco Veronica George, Inservco Suretha Hobbs, Inservco Karen Beatty, Qual-Lynx Glenn Prince, JA Montgomery Greg Hunt, Conner Strong & Buckelew Alex DeLuccia, Conner Strong & Buckelew (telephonically) PUBLIC PRESENT: Nancy Ridgway 1 P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

86 APPROVAL OF MINUTES: OPEN AND CLOSED SESSION OF OCTOBER 5, 2017 MOTION TO APPROVE THE OPEN MINUTES OF OCTOBER 5, 2017 Moved: Second: Vote: Commissioner Seneski Commissioner Mecouch 2 Ayes, 0 Nays, 1 Abstention -Commissioner Barber MOTION TO APPROVE THE CLOSED MINUTES OF AUGUST 3, 2017 Moved: Second: Vote: Commissioner Seneski Commissioner Mecouch 2 Ayes, 0 Nays, 1 Abstention -Commissioner Barber CORRESPONDENCE: None EXECUTIVE DIRECTOR REPORT: 2018 Property & Casualty Budget Introduction Attached on Page 3 for your review and discussion is the 2018 proposed Property & Casualty Budget in the amount of $2,950,123. The introductory budget represents a 2.10% decrease commission wide compared to the 2017 budget. Proposed assessments were distributed at the meeting. Executive Director reviewed Lines 1 through 6 of the proposed budget with the expected exposure basis changes for the 2018 coverage term. Executive Director said he only line requiring an increase was the liability line item 2 with an increase of 11.62%. As we all know of the negative loss trending we experienced under this line not only in our commission but statewide. The aggregate number for all lines 1 6 is a negative 6.00%. Executive Director reviewed line item 9 CEL JIF which shows a slight increase of 0.63%. Expenses, Fees and Contingency line items 14 thru 28 show claims adjustment and managed care at a 0% increase and other contracted services are at a 2% increase. Total increase for Fees and Contingency are at a.95% increase. Line 29 shows the contractual increase for our Risk Manager is 0%. Executive Director said Lines 32 thru 41 list the ancillary lines of coverage which are also a very good story. Executive Director said Alex DeLuccia of Conner Strong and Buckelew is on the phone to go over the marketing efforts and coverage for the ancillary lines. Mr. DeLuccia gave a brief update on the marketing program and renewal and said the Cumberland Commission will be coming in flat for the renewal no more of than the proposed budget number of $2.9 million for the 2018 commission year. Mr. DeLuccia said we are working on a few coverage enhancements on some of the lines of coverage and are still in the process of negotiating those coverage so as we finalize that information we will keep you updated. 2 P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

87 Executive Director asked if there were any question or comments concerning the budget. Commissioner Barber thanked everyone for their hard work and said it seems like we are in a good trend right now. Executive Director said we are having a great result this year and the County is to be commended on your risk management efforts. Executive Director said with no further comment being heard we will need a motion to introduce the 2018 Property and Casualty Budget totaling $2,950,123 and schedule a Public Hearing. MOTION TO INTRODUCE THE 2018 PROPERTY AND CASUALTY BUDGET IN THE AMOUNT OF $2,950,123 AND SCHEDULE A PUBLIC HEARING ON FEBRUARY 1, 2018 AT 11:00 AM AT THE COUNTY ADMINISTRATION BUILDING Moved: Second: Roll Call Vote: Commissioner Mecouch Commissioner Seneski 3 Ayes, 0 Nays Commissioner Seneski said in reviewing the 2018 budget it appears the fees listed for the Actuary and the Auditor appear to be reversed. Commissioner Seneksi said we should make a motion to amend budget to reverse lines 20 and 21. MOTION TO AMEND THE 2018 PROPERTY AND CASUALTY BUDGET TO CORRECT THE ACTUARY FEES FOR ANNUALIZED BUDGET 2017 TO $8,513, PROPOSED BUDGET 2018 TO $8,684, AND INCREASE TO $170 AND TO CORRECT THE AUDITOR FEES FOR ANNUALIZED BUDGET 2017 TO $6,358, PROPOSED BUDGET 2018 $6,485, AND INCREASE TO $127 Moved: Second: Roll Call Vote: Commissioner Seneski Commissioner Mecouch 3 Ayes, 0 Nays Professional Services The County issued Request for Proposals for Executive Director, Auditor and Actuary that were received on December 6 th. A report will be provided at the meeting. Commission Mecouch said for Executive Director we received one proposal from PERMA as pointed out in the budget we approved and it is approximately a 2% increase for a yearly fee of $96,428, for Auditor we receive one response from the incumbent Bowman & Company with a slight increase of approximately 2% to a yearly total of $6, P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

88 Commissioner Mecouch said the county received three proposals for Actuary from Actuarial Advantage Inc., $8,683, SG Risk Actuaries $4,970 and Actuarial Consulting at $8,000. Since they were received yesterday we will need time to review to make sure all the paperwork was submitted and evaluate them to see who we would recommend. Commissioner Mecouch asked for two resolutions awarding the Executive Director and Auditor contracts for 2018 with two one year options to renew at the Commission s discretion. MOTION TO AWARD THE 2018 CONTRACT TO PROVIDE EXECUTIVE DIRECTOR SERVICES TO PERMA LLC OF PARSIPPANY, NEW JERSEY IN THE AMOUNT OF $96,428 WITH TWO ONE YEAR OPTIONS TO RENEW AT THE COMMISSION S DISCRETION Moved: Second: Roll Call Vote: Commissioner Seneski Commissioner Barber 3 Ayes, 0 Nays MOTION TO AWARD THE 2018 CONTRACT TO PROVIDE AUDITOR SERVICES TO BOWMAN & COMAPNY LLP OF VOORHEES, NEW JERSEY IN THE AMOUNT OF $6,485 WITH TWO ONE YEAR OPTIONS TO RENEW AT THE COMMISSION S DISCRESION Moved: Second: Roll Call Vote: Commissioner Seneski Commissioner Barber 3 Ayes, 0 Nays Certificate of Insurance Issuance Report: on pages 4 thru 5 of the agenda are the Certificates of Insurance Issuance Report from the CEL listing those certificates issued for the period of September 1, 2017 to October 31, There were 6 certificates of insurance issued during this period. MOTION TO APPROVE THE CERTIFICATE OF INSURANCE REPORT Moved: Second: Roll Call Vote: Commissioner Mecouch Commissioner Seneski 3 Ayes, 0 Nays NJ Excess Counties Insurance Fund (CELJIF) The CELJIF met on October 26, 2017 and introduced the 2018 budget and it was approved on November 16, At the October meeting the Fund Commissioners adopted a resolution authorizing the release of a $200,000 dividend from the 2010 and 2011 Fund Years, Summary reports of both meeting will appear in the next agenda. The next meeting of the CEL will be on February 22, Commissioner Mecouch said the dividends that were released were to Camden, Gloucester and Union Counties. Financial Fast Track Executive Director reported included on pages 6 & 7 of the agenda are the Financial Fast Tracks for the Cumberland County Insurance Commission for August and 4 P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

89 September. As of September 30, 2017 the report indicates the Commission has a surplus of $1,934,549. Line 10 of the report Investment in Joint Venture is the Commission s share of equity in the CEL. NJ CEL Property and Casualty Financial Fast Track (Page 8) Executive Director reported included in the agenda is the NJ CEL Financial Fast Track Reports for September. As of September 30, 2017 the CEL has a surplus of $8,743,341. Reporting of Claims to Claims Made Policies Prior to 12/31/17 Expiration (Pages 9-10) Included in the agenda on pages 9 10 is a copy of a letter from Ms. Leighton regarding reporting of claims to claims made policies prior to 12/31/17. Ms. Leighton will review the information with the Commission. Gregory Hunt of Conner Strong and Buckelew said the letter included the agenda packet is requesting that all claims or facts and circumstances that may lead to claim be reported to Hardenbergh by December 11th or to Conner Strong by December 18 th so we have them in timely and no issue in coverage with the claims made policies. Commissioner Mecouch said he and Ted Baker sent a memo to all department heads to make sure matters or claims that should be reported are reported in a timely fashion. SAFETY COMMITTEE: Craig Atkinson reported on the accident and injury statistics and said for 2017 year to date the County had at total of 38 property damage accidents 15 were at fault, for a percentage of 38%. Mr. Atkinson said year to date the County has suffered 8 lost time personal injury accidents totaling 300+ total lost days. Mr. Atkinson discussed details of the lost time accident cases and modified duty accidents. Mr. Atkinson said the next Safety and Accident Review Committee will meet on Tuesday, December 12, Mr. Atkinson reported on training initiatives and said the DOS SHINE Cultural Initiative Recognition Program is ongoing. The ongoing initiative program at the library called STAR which is very similar to the Shine Program. STAR stands for Salutation, Timeliness, Above and Beyond and Reassurance and Compassion. The ongoing cultural initiative at the CATs operation acronym is ACE which stands for Accountability, Communication and Exceptional Service. The Human Services office started a cultural initiative program and their acronym is SPIRIT which stands for Service Values, Proper Communication, Interaction, Reinsurance and Compassion, Integrity and Team. We have also begun a fifth program at the Emergency Management office and they have not assigned a name for their program at this time. Mr. Atkinson said he and Mr. Baker attended the PERC Symposium on October 13 th. Mr. Atkinson attended the County Administrators Certification Program at Rutgers and performed a Defensive Driving Program for the CATs drivers on November 17th. Mr. Atkinson attended the Cyber Security Program at Conner Strong on November 1 st and is preparing to launch the new County Employee Information Manual also known as the Employee Handbook. Mr. Atkinson said 14 of the 16 jail recruits graduated within the last two weeks and we currently have 15 into a new the Academy this past Monday. 5 P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

90 Ted Baker said the Division of Social Services coming on board has requested Discrimination and Harassment Training which we will be setting that up in Mr. Baker said we coming up on our three year cycle to come back for our other agencies and departments as well, which we will be working on this in CLAIMS COMMITTEE: Greg Hunt reported the Claims Committee last met on November 21st and there are three claims for discussion in closed session. TREASURER: REPORT: Treasurer reported the December Bills List was included in the agenda. MOTION TO APPROVE RESOLUTION DECEMBER BILLS LIST IN THE AMOUNT OF $16, Motion: Second: Roll Call Vote: Commissioner Seneski Chairman Mecouch 3 Ayes, 0 Nays CEL SAFETY DIRECTOR: Safety Director reviewed the Safety Director s report included in the agenda as well as future training opportunities that are being offered by JA Montgomery Risk Control. Mr. Prince said as reported in the past he has been working with Bonnie Ridolfino and her team on compiling the necessary paperwork for the BRIT Safety Grant and to get a refund back to the County Commission. RISK MANAGER: Ms. Ridolfino reviewed the Risk Management Consultant Report and will be reviewing the subrogation results for 2017, where Ted Banker and our office work on any claims under $5,000 we go after the at fault party to recover the monies. Good news is the money is coming back. Ms. Ridolfino said the Officer Wellness and Suicide Prevention for Corrections Officers pilot program was conducted on November 1, 2017 which was very well received. We would like to a motion not to exceed $3,000 for additional training in to be conducted in MOTION TO APPROVE AN AMOUNT NOT TO EXCEED $3,000 TO PURCHASE TRAINING Motion: Commissioner Seneski Second: Chairman Mecouch Roll Call Vote: 3 Ayes, 0 Nays Ms. Ridolfino said Conner Strong is working right now on getting the increased Cyber Liability limit options. Right now members have either $1 million or $2 million as you see breaches are occurring every day. We will be providing options that will be an additional assessment and members will have the option to remain at their current limit or increase. 6 P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

91 CLAIMS SERVICE: Deputy Executive Director the Liability Claims Payments for January and February were included on pages and Resolution authorizing the Disclosure of the Liability Claims Check Register. MOTION TO APPROVE RESOLUTION AUTHORIZING DISCLOSURE OF LIABILTY CLAIMS CHECK REGISTER Motion: Commissioner Mecouch Second: Chairman Seneski Roll Call Vote: 3 Ayes, 0 Nays MANAGED CARE: Karen Beatty reviewed the Cumulative Savings report for 2017 and the PPO Penetration Report. UNDERWRITING MANAGER: None MOTION TO GO INTO EXECUTIVE SESSION FOR CERTAIN SPECIFIED PURPOSES FOR PERSONNEL, SAFETY, PUBLIC PROPERTY OR LITIGATION IN ACCOURDANCE WITH THE OPEN PUBLIC MEETINGS ACT - PAYMENT AUTHORIZATION REQUESTS Motion: Second: Vote: Commissioner Mecouch Commissioner Seneski Unanimous MOTION TO RETURN TO OPEN SESSION Motion: Second: Vote: Commissioner Seneski Commissioner Mecouch Unanimous Workers Compensation SAR MOTION TO APPROVE SETTLEMENT AUTHORIZATION REQUEST FOR CLAIM # IN THE AMOUNT OF $16, Motion: Second: Workers Compensation PAR Commissioner Seneski Commissioner Mecouch MOTION TO APPROVE PAYMENT AUTHORIZATION REQUEST FOR CLAIM # IN THE AMOUNT OF $194, P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

92 Motion: Second: Commissioner Seneski Commissioner Mecouch Auto Liability SAR MOTION TO APPROVE PAYMENT AUTHORIZATION REQUEST FOR CLAIM # IN THE AMOUNT OF $ Motion: Second: Commissioner Seneski Commissioner Mecouch MOTION TO APPROVE PARS AS PRESENTED Motion: Commissioner Seneski Second: Commissioner Mecouch Roll Call Vote: 2 Ayes, 1 Nay - Commissioner Mecouch Claim # OLD BUSINESS: None NEW BUSINESS: Amy Zieders introduced Suretha Hobbs of Inservco PUBLIC COMMENT: Mrs. Ridgeway wished everyone a Happy Holiday. Chairman Barber which everyone a Happy Holiday, Merry Christmas, Happy Hanukkah and enjoy time you can get with your families. MOTION TO ADJOURN: Motion: Second: Vote: Commissioner Mecouch Commissioner Seneski Unanimous MEETING ADJOURNED: 11:57 PM NEXT MEETING: WILL BE HELD ON February 1, 2018 AT 11:00 AM Minutes prepared by: Karen A. Read, Assisting Secretary 8 P age December 7, 2017 Cumberland County Insurance Commission OPEN Minutes

93 APPENDIX II INSERVCO STEWARDSHIP REPORT

94 Stewardship Report for CCIC As Of December 31, 2017 Inservco Insurance Services, Inc. Crossroads Corporate Center 3150 Brunswick Pike Lawrenceville, NJ (800)

95 EXECUTIVE SUMMARY Introduction: Inservco Insurance Services, Inc. is pleased to present the 2017 Stewardship Report. We understand that the client needs to be aware of pertinent claim information in order to better manage your program. We trust you will find the data found within this report to be meaningful and enable you to continue to make wise decisions that impact the various aspects of your organization s financial outlook, operational challenges, and the workforce. We also wanted you to be aware that Inservco is constantly striving to improve our services to you and we have invested heavily in new technology and services that enable us to efficiently interface with you and the vendor service providers that perform services for you. As you may already know, we have an ownership interest in KeyScripts, LLC which is a pharmacy benefit management company. We believe KeyScripts provides a cost effective pharmacy benefit management program. By using the KeyScripts program it enables your self-insured program to obtain savings below the fee schedule. Most importantly, Inservco s claim systems and billing systems interface with the KeyScripts program thereby making the process seamless to you and your employees who utilize the KeyScripts program. Savings reports are sent to you quarterly. Should you need more frequent reporting, please don t hesitate to contact Inservco. Additionally, Inservco has partnered with certain vendors that perform services on your behalf in an attempt to reduce your self-insured program costs. Please note that Inservco may have business agreements, including cost sharing arrangements, with these vendor service providers. As part of these business agreements, there may be financial considerations paid by the vendor service provider to Inservco for the resources and services that Inservco may provide, which could include marketing, personnel, information technology, system access, and various administrative services. The amounts, which may be material, that Inservco may receive from a vendor provider may vary depending upon the types and quantity of resources and services Inservco provides to each respective vendor. It is important to note that you are under no obligation to utilize any vendor provider that is recommended by Inservco and if you elect not to utilize the services of a recommended vendor provider, then you can select a vendor service provider you choose to perform such services. You always have control over the types of and amounts of services a vendor service provider performs for your program, whether recommended by Inservco or selected by you. Therefore, we are always looking for input from you, our customer, to determine if there is anything that we can do to enhance your existing program and to enable you to make your job as a risk manager more efficient. Should you have questions or need clarification regarding any information contained within this report, please feel free to contact, Staci L. Ulp, AIC, Executive Vice President & COO at extension Observations, Conclusions, Suggestions: Location CC - Jail had the most claims of any location for all policy years included in this report with 139 claims. This is 46.6% of the total number of claims reported for the County. However 106 of the claims reported by this location involved only medical payments and no wage loss benefits. There were 33 claims involving wage benefits. Location CC - Sheriff s Department and CC - Roads & Bridges had he second most claims with 29 claims each. 2

96 This is 9.7% of the total number of claims reported for the County for each of these locations. (Pages 5 & 6) The number of claims has decreased for all policy years included in this report. The total number of claims per year was the highest in the 1/1/15 to 12/31/15 policy period with 110 claims. Of these claims, 24 were lost time and 86 were medical only claims. (Page 7) The highest net incurred is $629, for the policy period 1/1/15 to 12/31/15. This represents 40.4% of the total net incurred of $1,557, Please note that the losses are still developing for all policy years included in this report. (Page 8) The location with the highest net incurred to date is Location CC - Jail with $650, This represents 41.8% of the total net incurred. Location CC - Sheriff s Department had the second highest net incurred by location with $217, or 14.0% of the total net incurred. (Page 9) When grouped by the day of the week on which the injury occurred, the highest number of claims occurred on Thursdays with a total of 61 claims. This was followed by Tuesdays with 55 claims. The highest number of indemnity claims occurred on Thursdays with 14 claims and the highest number of medical only claims occurred on Tuesdays with 48 claims. (Page 10) When grouped by the time of day the injury occurred, the most claims occurred between the hours of 8 am to 4 pm with a total of 181 claims, followed by midnight to 8 am with a total of 58 claims. The highest number of indemnity claims occurred between the hours of 8 am to 4 pm with 28 claims and the highest number of medical only claims also occurred between the hours of 8 am to 4 pm with 153 claims. (Pages 11 13) The average number of days to report a claim has fluctuated over the policy years included in this report ranging from 4.49 days during the policy year beginning 1/1/16 to days during the policy year beginning 1/1/15. It is important to report claims timely as it has been shown that early intervention has a significant impact on the final net incurred of a claim. (Pages 14 19) The most frequently reported cause of injury was Strain/Injury-Misc with 45 claims reported. This was followed by Misc Other Than Physical Cause with 23 claims. (Page 20) The cause of injury with the highest net incurred was Strain/Injury Misc at $366, or 31.9% of the total net incurred. This was followed by Struck/Injured By - Misc at $249, or 21.7% of the total net incurred. (Page 21) The most frequent type of injury was Strain or Tear with 103 claims or 40.2% of the total claims reported. Contusion/Bruise had the second highest frequency by type of injury with 65 claims or 25.4% of the total claims reported. (Page 22) The type of injury with the highest net incurred was also Strain or Tear at $765, or 52.7% of the total net incurred. This was also followed by Contusion/Bruise at $371, or 25.6% of the total net incurred. (Page 23) The most frequently injured part of body was Knee with 36 claims. The second most frequently injured body part was No Physical Injury with 26 claims. (Page 24) The highest net incurred for part of body injured was Multiple Body Parts at $358, or 35.39% of the total net incurred. This was followed by Knee at $358, or 35.38% of the total net incurred. Based on the above information, it would appear that a review of the CC - Jail may be beneficial in reducing the number of claims being reported. Proper training on a continued basis is necessary and recommended for all locations, along with educating the employees on how to effectively avoid injuries. 3

97 Report Terminology 01/18/2018 Term Gross Paid To Date Total Definition All payments transacted plus all offsets of voids and refunds through the report end date for all buckets Indemnity WC claim added this period where Gross Incurred Indemnity bucket >0 Medical Net Incurred Total Outstanding Reserve Total Recoveries To Date Total Total Claims Average Days to Receive WC claim added this period where Gross Incurred Indemnity bucket = 0 and sum of Gross Incurred all other buckets >0 Gross Incurred Total + Recovery ToDate Total all buckets Outstanding monies expected to be paid for all financial buckets added together Recoveries added into the system through report end date all buckets Count of pending and closed claims Average number of days between occurrence date and date received at Inservco Account #377 4

98 Claim Summary By Policy Period Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Indemnity Medical Only Total Claims 01/01/ /31/ CCIA-Solid Waste Complex CCBOSS-All WC CC-Finance & Administration CC-Planning & Economic Dev CC-911 Emergency CC-Sheriff's Department CC-Prosecutor's Office CC-Juvenile Detention Center CC-Jail CC-Roads & Bridges CC-Building & Grounds Maint CC-Health Department CC-Aging & Disabled Office CC-County Library CC-Extension Services CC Utilities Authority-All WC /01/ /31/ CCIA-Solid Waste Complex CC-Finance & Administration CC-911 Emergency CC-Sheriff's Department CC-Prosecutor's Office CC-Juvenile Detention Center CC-Jail CC-Roads & Bridges CC-Building & Grounds Maint CC-Health Department CC-Aging & Disabled Office CC-Dept of Social Services CC Utilities Authority-All WC Account #377 5

99 Claim Summary By Policy Period Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Indemnity Medical Only Total Claims 01/01/ /31/ CCIA-Solid Waste Complex CC-911 Emergency CC-Sheriff's Department CC-Prosecutor's Office CC-Jail CC-Roads & Bridges CC-Building & Grounds Maint CC-Aging & Disabled Office CC-Human Services CC-CCOET CC-County Library CC-CATS CC-Dept of Social Services CC Utilities Authority-All WC Total: Account #377 6

100 Claim Summary By Policy Period Indemnity vs Medical Only Past 3 Years 01/18/2018 Policy Effective Policy Expiration Indemnity Medical Only Total Claims 01/01/ /31/ /01/ /31/ /01/ /31/ Account #377 7

101 Loss Summary By Policy Period Past 3 Years 01/18/2018 Policy Effective Policy Expiration Claims O/S Reserve Gross Paid to Date Recovery to Date Net Incurred 01/01/ /31/ $115, $514, $0.00 $629, /01/ /31/ $190, $219, $0.00 $410, /01/ /31/ $244, $273, $0.00 $517, $549, $1,008, $0.00 $1,557, Account #377 8

102 Loss Summary By Location Past 3 Years 01/18/2018 Location Code Location Name Claims O/S Reserve Gross Paid to Date Recovery to Date Net Incurred CCIA-Solid Waste Complex 16 $97, $90, $0.00 $188, CCBOSS-All WC 1 $0.00 $ $0.00 $ CC-Finance & Administration CC-Planning & Economic Dev 2 $0.00 $38, $0.00 $38, $0.00 $5, $0.00 $5, CC-911 Emergency 5 $0.00 $2, $0.00 $2, CC-Sheriff's Department CC-Prosecutor's Office CC-Juvenile Detention Center 29 $69, $147, $0.00 $217, $9, $60, $0.00 $69, $0.00 $ $0.00 $ CC-Jail 139 $233, $416, $0.00 $650, CC-Roads & Bridges 29 $11, $175, $0.00 $187, CC-Building & Grounds Maint CC-Health Department CC-Aging & Disabled Office 14 $16, $12, $0.00 $28, $0.00 $4, $0.00 $4, $0.00 $5, $0.00 $5, CC-Human Services 1 $0.00 $ $0.00 $ CC-CCOET 1 $0.00 $0.00 $0.00 $ CC-County Library 4 $15, $0.00 $0.00 $15, CC-Extension Services 1 $0.00 $ $0.00 $ CC-CATS 1 $4, $1, $0.00 $6, CC-Dept of Social Services CC Utilities Authority- All WC 11 $12, $25, $0.00 $37, $78, $21, $0.00 $100, $549, $1,008, $0.00 $1,557, Account #377 9

103 Claim Occurrence by Day of Week Indemnity vs Medical Only Past 3 Years Day of Week Indemnity Medical Only Total Claims Sunday Monday Tuesday Wednesday Thursday Friday Saturday /18/2018 Account #377 10

104 Claim Occurrence by Time Of Day Indemnity vs Medical Only Past 3 Years Time Of Day Indemnity Medical Only Total Claims midnight - 8 am am - 4 pm pm - midnight time not reported /18/2018 Account #377 11

105 Claim Occurrence By Policy Year By Time Of Day Indemnity vs Medical Only Past 3 Years 01/18/2018 Policy Effective Policy Expiration Indemnity Medical Only Total Claims 01/01/ /31/2015 midnight - 8 am am - 4 pm pm - midnight time not reported /01/ /31/ midnight - 8 am am - 4 pm pm - midnight time not reported /01/ /31/ midnight - 8 am am - 4 pm pm - midnight Total: Account #377 12

106 Claim Occurrence By Policy Year By Time Of Day Indemnity vs Medical Only Past 3 Years 01/18/2018 Account #377 13

107 Timely Reporting - Average Days to Receive Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Claim Type Claims Average Days to Receive 01/01/ /31/ CCIA-Solid Waste Complex Indemnity Medical Only Location Total: CCBOSS-All WC Indemnity Medical Only Location Total: CC-Finance & Administration Indemnity Medical Only Location Total: CC-Planning & Economic Dev Indemnity Medical Only Location Total: CC-911 Emergency Indemnity Medical Only Location Total: CC-Sheriff's Department Indemnity Medical Only Location Total: CC-Prosecutor's Office Indemnity Medical Only Location Total: CC-Juvenile Detention Center Indemnity Medical Only Location Total: Account #377 14

108 Timely Reporting - Average Days to Receive Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Claim Type Claims Average Days to Receive CC-Jail Indemnity Medical Only Location Total: CC-Roads & Bridges Indemnity Medical Only Location Total: CC-Building & Grounds Maint Indemnity Medical Only Location Total: CC-Health Department Indemnity Medical Only Location Total: CC-Aging & Disabled Office Indemnity Medical Only Location Total: CC-County Library Indemnity Medical Only Location Total: CC-Extension Services Indemnity Medical Only Location Total: CC Utilities Authority-All WC Indemnity Medical Only Location Total: Policy Period Total: Account #377 15

109 Timely Reporting - Average Days to Receive Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Claim Type Claims Average Days to Receive 01/01/ /31/ CCIA-Solid Waste Complex Indemnity Medical Only Location Total: CC-Finance & Administration Indemnity Medical Only Location Total: CC-911 Emergency Indemnity Medical Only Location Total: CC-Sheriff's Department Indemnity Medical Only Location Total: CC-Prosecutor's Office Indemnity Medical Only Location Total: CC-Juvenile Detention Center Indemnity Medical Only Location Total: CC-Jail Indemnity Medical Only Location Total: CC-Roads & Bridges Indemnity Medical Only Location Total: Account #377 16

110 Timely Reporting - Average Days to Receive Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Claim Type Claims Average Days to Receive CC-Building & Grounds Maint Indemnity Medical Only Location Total: CC-Health Department Indemnity Medical Only Location Total: CC-Aging & Disabled Office Indemnity Medical Only Location Total: CC-Dept of Social Services Indemnity Medical Only Location Total: CC Utilities Authority-All WC Indemnity Medical Only Location Total: Policy Period Total: /01/ /31/ CCIA-Solid Waste Complex Indemnity Medical Only Location Total: CC-911 Emergency Indemnity Medical Only Location Total: CC-Sheriff's Department Indemnity Medical Only Account #377 17

111 Timely Reporting - Average Days to Receive Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Claim Type Claims Average Days to Receive Location Total: CC-Prosecutor's Office Indemnity Medical Only Location Total: CC-Jail Indemnity Medical Only Location Total: CC-Roads & Bridges Indemnity Medical Only Location Total: CC-Building & Grounds Maint Indemnity Medical Only Location Total: CC-Aging & Disabled Office Indemnity Medical Only Location Total: CC-Human Services Indemnity Medical Only Location Total: CC-CCOET Indemnity Medical Only Location Total: CC-County Library Indemnity Medical Only Location Total: Account #377 18

112 Timely Reporting - Average Days to Receive Indemnity vs Medical Only By Location Past 3 Years 01/18/2018 Policy Effective Policy Expiration Claim Type Claims Average Days to Receive CC-CATS Indemnity Medical Only Location Total: CC-Dept of Social Services Indemnity Medical Only Location Total: CC Utilities Authority-All WC Indemnity Medical Only Location Total: Policy Period Total: Account #377 19

113 Top 5 - Cause of Injury - Frequency Past 3 Years 01/18/2018 Cause of Injury Code Cause of Injury Description Number of Injuries 60 Strain/Injury-Misc Misc-Other Than Physical Cause Fall or Slip - Fall,Slip,Trip, Struck/Injured By-Misc Cut, Injured By-Misc 16 Account #377 20

114 Top 5 - Cause of Injury - Net Incurred Past 3 Years 01/18/2018 Cause of Injury Code Cause of Injury Description Net Incurred 60 Strain/Injury-Misc $366, Struck/Injured By-Misc $249, Motor Vehicle-Misc $245, Fall or Slip - Fall,Slip,Trip, $178, Misc-Other Than Physical Cause $108, Account #377 21

115 Top 5 - Type of Injury - Frequency Past 3 Years 01/18/2018 Type of Injury Code Type of Injury Description Number of Injuries 52 Strain or Tear Contusion/Bruise No Physical Injury Laceration/Cut/Scratches Puncture 23 Account #377 22