FEMA Risk Mapping. OSHA Updates HazCom Standard. C o n n e c t i n g Yo u r C o m m u n i t y A M L J I A

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1 IN THIS ISSUE Board Appropriates $2M for Rate Stabilization Fund.. 1 FEMA Risk Mapping In Good Company Pool News Honorable Mention At Your Service HazCom 2012 What It Means for You The Law At Work Exceptional Customer Service Getting a Grip on Slips, Trips and Falls The scholar does not consider gold and jade to be precious treasures, but loyalty and good faith. Confucius OSHA Updates HazCom Standard Why is OSHA making changes to the Hazard Communication Standard, and how is that going to affect you and your employees? see HazCom 2012 What It Means for You on page 5 SUMMER 2012 C o n n e c t i n g Yo u r C o m m u n i t y Board Appropriates $2 Million for Rate Stabilization Fund The AMLJIA Board of Trustees appropriated $2 million to the recently created Rate Stabilization Fund at their April 24, 2012, quarterly board meeting. As described in the last edition of The Bridge, the member credits generated from this fund come from retained earnings and are allocated among members based on their proportionate share of contributions and loyalty and longevity in the program. Similar to a dividend, each member in good standing as of July 1, 2012, will receive an appropriation from the Rate Stabilization Fund. Up to onethird of the balance of each member s Fund account may be used to offset their contribution in any fi scal year. If a member chooses to save the fund, the balance remains available for use in future years. The Rate Stabilization Fund provides members with another tool to help control their annual costs, explains Kevin Smith, AMLJIA Executive Director. Based on the dividend formula, each member s balance is a pro-rata share of their individual contributions to the total program s contributions since inception. Time with the program and contribution size are both factors. We recognize that each member has a played a part in the pool s success. To that end, we want to reward each of them for their commitment and participation in the program. FEMA Risk Mapping A recent meeting in Juneau with various Alaska communities and representatives from FEMA Region 10 provided a forum to address some of concerns over the new Digital Flood Insurance Rate Maps. The general theme was the inaccuracy of the new maps, FEMA s refusal to accept new map data from communities, the resulting need for fl ood insurance in some cases, and communication being diffi cult at times between FEMA and the communities throughout the process. As new fl ood maps are drawn, many communities and homeowners are fi nding themselves in high-risk fl ood zones while their neighbor s adjoining property zone has not changed, even though it is in the same geographical location with respect to fl ood mapping criteria. This creates an equity concern over building permits, property sales, and the need to purchase high risk fl ood insurance. Credit amounts were sent to members in mid-may along with the Notice of Deposit Contribution. continued on page 3 A M L J I A 807 G Street, Suite 356 Anchorage, Alaska nd Street, Suite 200 Juneau, Alaska amljia.org

2 C o n n e c t i n g Yo u r C o m m u n i t y In Good Company Kevin Smith, Executive Director Rate Outlook for FY2013 In the past year, the combination of catastrophic global property losses, a weak economy, and some adverse pool losses, threaten to increase rates that AMLJIA members should expect to pay. Current conditions in the national insurance market also show rate increases resulting from catastrophic property losses in 2011 and early Estimates of these losses, caused by spring and fall tornados, hurricanes, tropical storms, and fl ooding in the lower 48, and earthquakes and tsunamis in Asia, are nearing estimates of $116 billion. Many of the property excess and reinsurance carriers have been hit with these high losses and consequently are driving the rate increases for FY2013. This hardening of the property market is made worse by an economy that just doesn t seem to recover. Unfortunately, AMLJIA has also had some losses, driving up the amount that our actuary recommends we collect to pay future claims. Fortunately, the AMLJIA is in a strong fi nancial position, which gives us options. We rely on our fi nancial strength and purchasing power to stabilize any rate swings we may see. For example, to help offset the expected increases, the board declared a $2 million deposit to the Rate Stabilization Fund, of which, one-third will be available to members this renewal cycle. (For more information on the Rate Stabilization Fund, see the article on page 1.) In addition, some rate subsidization will continue into FY13. We are also studying raising our self-insured retention to drop the costs of our excess and reinsurance. 2 Our long-term fi nancial strategies consider changes in the marketplace, and we have positioned ourselves to withstand these ups and downs with as little impact to the membership as possible. We continue our commitment to keep contribution levels as low as possible. POOL NEWS Loss Control Program Rewards Members The AMLJIA launched the Loss Control Incentive Program in FY2006 to help target high frequency and high severity losses. Members actively participating in the program have earned credits totaling more than one million dollars since the program s inception, but the greatest savings comes from the increased safety awareness among program participants. Participants in the Loss Control Incentive Program recognize the benefi t both to themselves and the pool as a whole in working to decrease claims frequency and severity. They are creating active safety committees, holding regular safety meetings and ensuring employees have the training and equipment they need to stay safe at work. They are creating a safety culture within their entities that will benefi t the communities they serve as well. If you haven t participated in the Loss Control Incentive Program, why not? The AMLJIA provides everything you need to get started, and your Risk Control Specialist will be happy to walk you through the program. Reduce losses, protect your property, keep employees productive and safe, and save money everyone wins with the Loss Control Incentive Program! To learn more, call your Risk Control Specialist today at or visit our website, for more information. The sooner you begin, the more you can earn up to 5% credit based on your FY2013 contribution. Let us help you get started today! Joint Insurance Association, Inc.

3 SUMMER 2012 A M L J I A Honorable Mention As I come up on my one-year anniversary here at the Borough, I wanted to thank you for all the documents, information and support you have provided. Your assistance has been and will continue to be greatly appreciated. Mark A. Dixson, General Services Director, Kenai Peninsula Borough At Your Service BOILER INSPECTIONS All members that have Boiler & Machinery coverage through the AMLJIA are eligible to receive FREE jurisdictional boiler inspection services from CNA Insurance Company. We would like to hear from you if: your entity has Boiler & Machinery Coverage with the AMLJIA, and your boilers are due for inspection now or will soon be due. The AMLJIA and CNA Insurance Company will make the arrangements, conduct the inspection and save you money. Your entity will only be responsible for the certifi cation fee due to the State of Alaska. To schedule your boiler inspection, Sharon Tunnell at sharont@amljia.org or call Don t have Boiler & Machinery Coverage? Request a quote online at UNDERWRITING/CLAIMS continued from page 1 One important take-away from the discussion centered on map data. If your community has mapping data available and wants to participate in the process, get involved early. FEMA welcomes your data. However, the sequence of data you provide can greatly impact the amount of work involved and the quality of the fi nal output. For example, topographic information should be provided fi rst and hydrology and hydraulic information provided second. If data is provided in reverse order, this increases the time and cost to rework the data. This is the data that will be enforced through the National Flood Insurance Program (NFIP) minimum standards and your fl ood reduction ordinance. Additional non-regulatory products exist primarily for planning and education. As some areas are remapped, the need for fl ood insurance becomes an issue and point of contention. Communities should understand the fl ood coverage details in both the NFIP and under your own AMLJIA Property Coverage. Consider how limits and deductibles are applied, whether coverage applies per structure or per occurrence, and determine if there are limiting factors in your policy, such as with subrogation where one policy limits payment because you have received payment from another policy. Be aware that if your community is mapped but does not participate in the NFIP and a fl ood occurs, the disaster funds available to your community may be limited by FEMA. In contrast, forgoing fl ood mapping and utilizing your current AMLJIA fl ood coverage would not limit your community s disaster funds. Your AMLJIA Risk Control Specialist can assist you in navigating the channels and sandbars of the NFIP. Your local FEMA or State of Alaska representatives are also happy to help answer your questions on your community responsibilities. They are committed to improving communication and helping get the right answers about the Risk MAP Program and in determining if the National Flood Insurance Program is right for your community. Alaska will have a State Risk MAP Coordinator effective October 1, Contact Sally Russell Cox with the Alaska Division of Community and Regional Affairs (DCRA) at sally.cox@alaska.gov. An Alaska Risk MAP webpage will be hosted on DCRA s website in early October. For more information on the National Flood Insurance Program, please contact Taunnie Boothby, Certifi ed Floodplain Manager with DCRA, at taunnie.boothby@alaska.gov or visit p/nfi p.htm. Sally and Taunnie can advocate on behalf of your community with regard to FEMA s Risk MAP and NFIP programs. 3

4 C o n n e c t i n g Yo u r C o m m u n i t y RISK CONTROL Hazcom 2012: What it Means for You OSHA adopted the Hazard Communication Standard in 1983, and acute illnesses and injuries from chemicals have decreased 42% since that time. Now, OSHA is changing the rule to enhance the benefi ts of its provisions. The Hazard Communication Standard is now aligned with the Globally Harmonized System of Classifi - cation and Labeling of Chemicals (GHS). The GHS was negotiated in a multi-year process by hazard communication experts from many different countries, international organizations, and stakeholder groups. It is based on major existing systems around the world, including OSHA s Hazard Communication Standard and the chemical classifi cation and labeling systems of other US agencies. This update to the Hazard Communication Standard will provide a common and coherent approach to classifying chemicals and communicating hazard information on labels and safety data sheets. The revised standard will improve the quality and consistency of hazard information in the workplace, making it safer for workers by providing easily understandable information on appropriate handling and safe use of hazardous chemicals. The GHS provides a standardized approach, including detailed criteria for determining what hazardous effects a chemical poses, as well as standardized label elements assigned by hazard class and category. This will enhance both employer and worker comprehension of the hazards, which will help to ensure appropriate handling and safe use of workplace chemicals. In addition, the safety data sheet requirements establish an order of information that is standardized. The harmonized format of the safety data sheets will enable employers, workers, health professionals, and emergency responders to access the information more effi ciently and effectively. HazCom 2012 maintains the flexible approach to workplace labels in the current rule, i.e., the GHS label does not have to be on all workplace containers. Workplace labels will have to be reviewed to make sure they still convey the correct hazards and other information when these new requirements are implemented. OSHA is requiring that employees are trained on the new label elements (e.g., pictograms and signal words) and safety data sheet format by December, 2013, while full compliance with the fi nal rule will begin in While many countries are in various stages of implementing the GHS, OSHA believes that it is possible that American workplaces may begin to receive labels and SDSs that are consistent with the GHS shortly after publication. Thus, making it important to ensure that when employees begin to see the new labels and SDSs in their workplaces, they will be familiar with them, understand how to use them, and access the information effectively. Q. What are the major changes to the Hazard Communication Standard? A. The three major areas of change are in hazard classifi cation, labels, and safety data sheets. Hazard classifi cation: The defi nitions of hazard have been changed to provide specifi c criteria for classifi cation of health and physical hazards, as well as classifi cation of mixtures. These specifi c criteria will help to ensure that evaluations of hazardous effects are consistent across manufacturers, and that labels and safety data sheets are more accurate as a result. Labels: Chemical manufacturers and importers will be required to provide a label that includes a harmonized signal word, pictogram, and hazard statement for each hazard class and category. Precautionary statements must also be provided. Safety Data Sheets (formerly Material Safety Data Sheets or MSDS): These will now have a specifi ed 16-section format. Q. How will labels change under the revised Hazard Communication Standard? A. Under the current Hazard Communication Standard (HCS), the label preparer must provide the identity of the chemical, and the appropriate hazard warnings. This may be done in a variety of ways, and the method to convey the information is left to the preparer. Under the revised HCS, once the hazard classifi cation is completed, the standard specifi es what information is to be provided for each hazard class and category. Labels will require the following elements: OSHA s Top Ten The ten most frequently cited OSHA violations from FY 2011 (Oct. 1, 2010 Sept. 30, 2011) were: 1. Fall Protection ( ) 2. Scaffolding ( ) 3. Hazard Communication ( ) 4. Respiratory Protection ( ) 5. Lockout/Tagout ( ) 6. Electrical - Wiring Methods ( ) 7. Powered Industrial Trucks ( ) 8. Ladders ( ) 9. Electrical - General Requirements ( ) 10. Machine Guarding ( ) Don t fi nd yourself on this Top Ten list. Training is available through the AMLJIA Online University at Train any time, any place, any pace. 4 Joint Insurance Association, Inc.

5 ' ' ' C SUMMER 2012 A M L J I A Pictogram: a symbol plus other graphic elements, such as a border, background pattern, or color that is intended to convey specifi c information about the hazards of a chemical. Each pictogram consists of a different symbol on a white background within a red square frame set on a point (i.e. a red diamond). There are nine pictograms under the GHS. However, only eight pictograms are required under the HCS. Signal words: a word used to indicate the relative level of severity of hazard and alert the reader to a potential hazard on the label. The signal words used are danger and warning. Danger is used for the more severe hazards, while warning is used for less severe hazards. Hazard Statement: a statement assigned to a hazard class and category that describes the nature of the hazard(s) of a chemical, including, where appropriate, the degree of hazard. Precautionary Statement: a phrase that describes recommended measures to be taken to minimize or prevent adverse effects resulting from exposure to a hazardous chemical, or improper storage or handling of a hazardous chemical. Q. What pictograms are required in the revised Hazard Communication Standard? What hazard does each identify? A. There are nine pictograms under the GHS to convey the health, physical and environmental hazards. The fi nal Hazard Communication Standard (HCS) requires eight of these pictograms, the exception being the environmental pictogram, as environmental hazards are not within OSHA s jurisdiction. The hazard pictograms and their corresponding hazards are shown below. Q. How is the Safety Data Sheet (SDS) changing under the revised Hazard Communication Standard? A. The information required on the safety data sheet (SDS) will remain essentially the same as that in the current standard. The current Hazard Communication Standard (HCS) indicates what information has to be included on an SDS but does not specify a format for presentation or order of information. The revised HCS requires that the information on the SDS is presented using consistent headings in a specifi ed sequence. The SDS format is the same as the ANSI standard format which is widely used in the U.S. and is already familiar to many employees. The format of the 16-section SDS should include the following sections: Section 1. Identifi cation Section 2. Hazard(s) identifi cation Section 3. Composition/information on ingredients Section 4. First-aid measures Section 5. Fire-fi ghting measures Section 6. Accidental release measures Section 7. Handling and storage Section 8. Exposure controls/personal protection Section 9. Physical & chemical properties Section 10. Stability and reactivity Section 11. Toxicological information Section 12. Ecological information Section 13. Disposal considerations Section 14. Transport information Section 15. Regulatory information Section 16. Other information; i.e., date of preparation or last revision " # $! % & ' "! ( ' ) % * % & + ' " % & 5 ' ' * < = >? & # ) ' # 0 ' ' F >.. /, - ' - " 1 ' 0 ( / 4, ' ( $ ' - 2! * & # ' 0 > = ( 8 ' D / '. 4 E ' $ ' - F G H? I + L % & Sections may be included in the SDS, but are not required by OSHA. OSHA expects that the modifi cations to the Hazard Communication Standard (HCS) will result in increased safety and health for the affected employees and reduce the numbers of accidents, fatalities, injuries, and illnesses associated with exposures to hazardous chemicals. The GHS revisions to the HCS standard for labeling and safety data sheets would enable employees exposed to workplace chemicals to more quickly obtain and to more easily understand information about the hazards associated with those chemicals. In addition, the revisions to HCS are expected to improve the use of appropriate exposure controls and work practices that can reduce the safety and health risks associated with exposure to hazardous chemicals. OSHA estimates that the revised HCS will realize a savings of $250 annually by preventing fatalities, injuries and illnesses. If you have additional questions, contact your AMLJIA Risk Control Specialist at ' # 9 ( 8 ( ' ) + % & : ' "! % 6 ) # 3 * ) ; # 9 7 : B & " ' $ ' 4 - ( $ ' - 2! * & # ' 0 J K > = = C = + % & & 9 5

6 C o n n e c t i n g Yo u r C o m m u n i t y HUMAN RESOURCES The Law At Work Q. Our city treasurer has missed most of the last month without calling in, much less asking for leave. I believe she was drinking and hanging out with her new boyfriend all that time, but she might not have. I was on the verge of fi ring her last week when she complained that a male coworker touched her hip while they were passing in the fi le area six months ago. If she s claiming sexual harassment, can I (the city administrator) still fi re her? Or has she bought some time with this complaint? A. You can still fi re the treasurer for missing work without permission. You do need to get legal advice before fi ring anyone, if you want the AMLJIA to cover any lawsuit or other claim that might arise from the termination. So, either call the AMLJIA Employment Law Hotline ( ) or call another lawyer before you fi re. When you do that, I ll tell you how to terminate this employee; the approach will depend on whether the employee may be fi red at will or only for cause. Meanwhile, you will investigate the claimed touching after telling the treasurer that you appreciate her bringing it forward. Talk to her and to the other employee, and then interview anyone either of them suggests. When you re done investigating, you will write in a memo whether you fi nd the charge is more likely than not true, and you will discipline the male employee if appropriate. However and this is the real answer to your question the investigation need not delay the termination proceedings at all. In some cases it might, but not where the poor conduct (absenteeism) is so obvious. Exceptional Customer Service As consumers, we have all encountered poor customer service which tends to turn our day upside down or make us question why we are spending our hardearned wages in an establishment that does not value the customer. It might be a sales clerk on their cell phone acting like you are a huge annoyance or the store with only one checkout counter open and customers lined up into the aisle. Maybe you try to check in for a fl ight only to fi nd that your reservation has been lost and the fl ight is full, or a service you expected was not completed by the promised deadline. Our work environment is predominantly a service-based culture, whether our customers are external or internal. We need to ensure that all employees always provide high-quality service and have a customer-oriented focus. Our internal customers our co-workers depend on us to do our job so that they can do theirs and in turn help you and other employees do theirs. The smooth operation of any organization depends on the interdependence and interaction of every department in the organization. There are basic needs that must be met: responding promptly to requests, providing clear and accurate information and supporting one another s efforts. Beyond the basic needs, there are additional aspects of customer service: Courtesy customers should be treated courteously at all times and under all conditions. Respect respect for the customer s needs and for their time. Cooperation making sure the customer gets what they need, when they need it. In developing a customer-oriented focus, employees need to be trained so that they understand their job as well as your organization s procedures and policies in order to best assist the customer. The most effective form of communication is direct verbal communication, but be mindful of your tone of voice and consider your timing. Establish credibility; this gives your message power and infl uence. Back up your statements with compelling evidence. Be aware of body language, both yours and theirs. You need to try to interpret these signals and respond appropriately. Exceptional customer service should be everyone s goal. As a customer we want a positive experience: prompt, willing, interested, and respectful treatment. The willingness to go the extra mile for our customers refl ects not only on the organization but on you as an individual. People appreciate you and you feel a sense of satisfaction, so set those standards high and feel proud of yourself. AMLJIA is pleased to introduce Valorie Moore, Senior Worker s Compensation Claims Adjuster. Valorie is a very capable professional and has cheerfully stepped into her new role in the AMLJIA. Her extensive insurance industry experience includes 23 years as a licensed workers compensation claims adjuster, and for the past six years she has been handling high-severity, high-cost claims. We are pleased to have Valorie on our staff providing professional claims handling services to the membership. 6 Joint Insurance Association, Inc.

7 SUMMER 2012 A M L J I A ABOVE THE GRADE Getting a Grip on Slips, Trips and Falls We are being challenged to do more with less, gain an advantage by maximizing the effectiveness of our employees, and boost productivity none of which is an easy task to accomplish. There is a proven methodology for achieving that with a safety incentive program. Behavior is a function of its consequences. Simply put, if a behavior generates a reward, then that behavior will often be repeated. Rewards indicate that something has value. Linking reward to activities and results links value to them. Entities that want to change performance appreciate the power that reward has to focus attention. Think of your safety program as a form of target marketing, addressing specifi c objectives with a specifi c strategy and set of tactics that will provide you with results. Over the past three years, claims resulting from slips and falls on ice and snow totaled $811,740. It makes sense to focus on these claims and to develop a specifi c program to reduce these losses. In autumn of 2011, the Bristol Bay Borough School District and the Dillingham City School District agreed to pilot a program to reduce slips and falls resulting from snow and ice. Both members have experienced a high frequency of claims related to slips and falls caused by snow and ice in the past.the voluntary program involved training, a pair of ice grippers for each participating employee and a commitment by employees to wear their ice grippers when necessary to avoid slips and falls. Employees that agreed to participate in this program were rewarded with an entry into a prize drawing which was held this spring. The goal of the program was not only to reduce claims, but also increase awareness of safety issues and procedures. After the program ended, our records revealed that there were no claims paid for participating employees for injuries due to slips and falls caused by snow and ice. Our staff was eager to participate in the program, reported Superintendent Bill McLeod in Dillingham City School District. The grippers went like hot cakes and we had to do two supplemental orders to meet demand. We also had one of our lowest rates of incidents as staff were very conscientious about wearing the grippers to avoid slips. It was a very worthwhile endeavor. Our staff was very glad to get these and felt a little safer with them, especially since it s often very icy in our neck of the woods, said Jim Dube, principal in Bristol Bay Borough School District. I don t remember any reports of anyone falling on the ice this year. If you would like to set up an incentive program to target your specifi c losses, contact your AMLJIA Risk Control Specialist at Congratulations to Jeannie Schiaffo (pictured) from the Dillingham City School District and to Lynn Peters from the Bristol Bay Borough School District. They were the winners of the ice grippers incentive prize drawings in their respective districts. Contact your AMLJIA Risk Control Specialist at if you would like to set up an incentive program to target your specifi c losses. Craig City School District Superintendent Jim Thomas (right) is the recipient of a $1,000 scholarship sponsored by the AMLJIA. This scholarship will be given to a deserving 2012 Craig graduate. Kevin Smith (center) and Grady Fisher (left), representing the AMLJIA, were on hand to present the scholarship award at the Alaska Association of School Administrators Legislative Fly-In this spring. 7

8 807 G. Street, Suite 356 Anchorage, Alaska Building on Tradition. Protecting Your Future. Calendar July 2012 September 2012 AMLJIA Loss Control Incentive Program Resolutions due for FY2013 participation AMLJIA Board of Trustees Quarterly Meeting Denali Borough, AK July, 2012 July 27, 2012 ALASBO Summer Leadership Conference Homer, AK July 27 29, 2012 AASA/DEED Summer Meeting Juneau, AK July 29 30, 2012 AMLJIA Workers Compensation Audit Questionnaire due August, 2012 AML Summer Legislative Meeting Bethel, AK August 14 16, 2012 AASB Fall Boardsmanship Academy Anchorage, AK September 15 16, Alaska Fire Conference Sitka, AK September 17 22, 2012 AASA Fall Meeting Valdez, AK September 27 29, 2012