BURLINGTON COUNTY INSURANCE COMMISSION OPEN MINUTES MEETING April 7, 2016 County Administration Building 49 Rancocas Road Mt Holly, NJ :00 PM

Transcription

1 BURLINGTON COUNTY INSURANCE COMMISSION OPEN MINUTES MEETING April 7, 2016 County Administration Building 49 Rancocas Road Mt Holly, NJ :00 PM Meeting was called to order by the. Ms. Chwastek read the Open Public Meetings notice into record. ROLL CALL OF COMMISSIONERS: Kendall J. Collins Eve A. Cullinan Damon Burke Present Present Present FUND PROFESSIONALS PRESENT: Executive Director Claims Services PERMA Risk Management Services Joseph Hrubash PMA Management Corp. Christina Grabowski Conner Strong & Buckelew Michelle Leighton Attorney Treasurer Safety Director Employee Benefits CraigAnninBaxter Law Robert Baxter, Esq. Edward Troy J.A. Montgomery Risk Control Glenn Prince PERMA Risk Management Services Paul Laracy AJM Insurance Management Greg D Orazio Risk Management Consultant (BOSS) EJA/Capacity Insurance Agency 1

2 ALSO PRESENT: Ed Cooney, Conner Strong & Buckelew Tim Friel, Conner Strong & Buckelew Alex DeLuccia, Conner Strong & Buckelew Michael Trump, Vericlaim Nicholas Pizzuto, AmeriHealth Sean Gormley, Innovative Risk Solutions, Inc. Emily Koval, PERMA Risk Management Services Rachel Chwastek, PERMA Risk Management Services APPROVAL OF MINUTES: OPEN & CLOSED MINUTES OF MARCH 3, 2016 MOTION TO APPROVE OPEN & CLOSED MINUTES OF MARCH 3, 2016 Commissioner Burke CORRESPONDENCE: NONE COMMITTEE REPORTS: SAFETY COMMITTEE: Mr. Prince reported the Safety Committee last met on January 14 th and was scheduled to meet again on April 14 th. Mr. Prince noted at the April 14 th meeting a review would be conducted of the most commonly cited PEOSH citations from the first quarter. CLAIMS COMMITTEE: Ms. Leighton advised the Claims Committee did not meet and therefore did not have any current PARS to discuss, however, there were two property PARS to discuss in closed session that were presented at the last meeting. Ms. Leighton introduced Michael Trump, Zurich s independent adjustor from Vericlaim, who would be reviewing the property claims with the Commission. EXECUTIVE DIRECTOR REPORT: Executive Director advised he had a few action items for his report and would begin by introducing the CEL Underwriting Team. CEL UNDERWRITING MANAGER TEAM: Executive Director welcomed and introduced Ed Cooney, the new Underwriting Manager for Conner Strong & Buckelew along with his team, Tim Friel and Alex DeLuccia. CERTIFICATE OF INSURANCE ISSUANCE REPORT: Executive Director reported on the Certificate of Insurance Report for the period of 2/29/16 to 3/31/16. There were 3 certificate of insurances issued during this period. MOTION TO APPROVE THE CERTIFICATE OF INSURANCE REPORT 2

3 PROFESSIONAL SERVICE AGREEMENTS: Executive Director recommended the standard contract language for the BCIC service agreements be updated to track to language in the law on Political Contributions, Affirmative Action and Records. The revisions were reviewed and approved by the Commission Attorney, and a copy of the changes was included in the agenda. MOTION TO APPROVE THE AMENDMENT TO THE STANDARD CONTRACT PROVISIONS POL/EPL COVERAGE: Executive Director reported the POL/EPL coverage was with the excess liability carrier, Lloyds of London. The County currently has an SIR of $500,000. The actuary previously provided the Commission with self funded options. The commercial market chose not to quote a buy down deductible optioned midterm. Therefore the Executive Director advised the Commission should table this until a commercial quote for a buy down option would be available at renewal in January. MOTION TO TABLE SELF FUNDED OPTION FOR POL/EPL EMPLOYEE DISHONESTY COVERAGE: Executive Director advised the Employee Dishonesty Coverage policy with Selective Insurance Company renewed on April 5, Executive Director noted the policy covered the positions of Executive Director, Third Party Administrator and Treasurer. The limit per loss is $1,000,000 with a $10,000 deductible. Executive Director indicated the annual premium was $1, Executive Director advised if the Commission approved the renewal the premium for this policy would be paid out of the Miscellaneous and Expense Account. MOTION TO RENEW EMPLOYEE DISHONESTY COVERAGE WITH SELECTIVE INSURANCE COMPANY FOR THE PERIOD 4/5/16 TO 4/5/17 WITH AN ANNUAL PREMIUM OF $1,683 Commissioner Burke NJ EXCESS COUNTIES INSURANCE FUND (CELJIF): Executive Director advised the CEL held their Re-Organization Meeting on February 25, A summary report of the meeting was included in the agenda. The next meeting is scheduled for Tuesday, April 26, 2016 at 1:00 PM. noted the report was self explanatory. 3

4 BCIC PROPERTY & CASUALTY FINANCIAL FAST TRACKS: Executive Director reported the January Financial Fast Track was included in the agenda. Executive Director advised the Commission had a surplus of $866,312 as of January 31, Executive Director referred to line 9 of the report, Investment in Joint Venture and indicated $504,039 was Burlington County Insurance Commission s share of the equity in the CEL. Executive Director noted the total cash amount was $4,077,330, and advised the decrease in surplus from last month was due to the actuary s review of the IBNR and its adjustment. NJ CEL PROPERTY & CASUALTY FINANCIAL FAST TRACKS: Executive Director reported the January Financial Fast Track for the NJ CEL was included in the agenda. As of January 31, 2016 the CEL had a surplus of $6,222,795. Executive Director noted the total cash amount was $8,592,052. CLAIMS TRACKING REPORTS: Executive Director reported the agenda included two claim monitoring reports as of February 29, Executive Director advised the Claims Activity Report was designed to look for any inconsistencies in the amount of claims set up or changes in reserves on a monthly basis by line of coverage. Executive Director referred to the Claims Management Report Expected Loss Ratio Analysis which was included in the agenda. Executive Director advised the 2015 Fund year was running higher then expected, however 2014 and 2013 were tracking well, with 2012 still the best year for the fund. Executive Director asked if anyone had any questions regarding the reports ASSESSMENT BILLS: Executive Director advised the 2016 Property & Casualty Assessment Bills were due on March 15, Executive Director noted the Treasurer had advised he received payment from all of the entities AUDIT: Executive Director advised the auditor was in the process of preparing the 2015 Fund Year Audit. Executive Director noted when the audit was completed, Mr. Jim Miles of Bowman & Company would be asked to attend the meeting to review his report with the Commission. RFQ FOR DEFENSE LAW FIRMS: Executive Director advised a discussion would take place during closed session regarding the responses that were received for a defense panel. PROPERTY CLAIM(S): Executive Director advised Mr. Mike Trump of Vericlaim would discuss a property damage claim in closed session. LEGACY CLAIMS: Executive Director noted the implementation of funding of the legacy claims through the BCIC was still on hold pending an update on certain claims. ALTERNATE COMMISSIONER: Executive Director advised the County was still discussing the alternate Commissioner option. Executive Director asked if anyone had any questions and concluded his report. Executive Director asked Mr. Laracy to review the Health Benefit Report which was included in the agenda. Executive Director's Report Made Part of Minutes 4

5 HEALTH BENEFITS REPORT: Financials: Mr. Laracy said the Actuary had strengthened his IBNR projections through the end of The Commission performed as expected, but showing less surplus than originally estimated. He said that February s financials were strong, but March is running much higher than previous months. He said he will work with the Treasurer and Amerihealth to review further and update the Commissioners at the next meeting. GASB 45 the Municipal Reinsurance Health Insurance Fund holds a contract with an Actuary as a lead agent for GASB 45 reports. Mr. Laracy said if any entity is in need of a report to contact our office. Benefits Administration Mr. D Orazio reviewed a resolution that was distributed to the Commissioners prior to the meeting. He said a mandate with the Affordable Care Act requires the medical and prescription to be integrated for max out of pocket spending tracking. Ameriheath has offered to perform this service with the Prescription Benefit Manager at a cost of $0.29 per employee, per month. The resolution reflects the change to the Amerihealth contract. said the contract revision had not been fully reviewed by the Attorney and requested that the resolution be tabled until the May meeting to allow for this due diligence. Mr. D Orazio said he is also reviewing a Medicare Advantage program for the County retirees which could produce a significant savings. In response to Chair Collins, Mr. D Orazio said the Commission would do an RFQ looking for quotes for July 1, Chair Collins requested an outline of the RFP for the next meeting. TREASURER REPORT: Mr. Troy advised he reviewed the Bill Lists and recommended their approval. MOTION TO APPROVE RESOLUTION 23-16, APRIL BILL LIST AND APRIL HEALTH BILL LIST Executive Director advised the Treasurer s monthly reports were included in the agenda. ATTORNEY: Mr. Baxter advised he would discuss the RFQ s in closed session. CLAIMS SERVICE. Ms. Grabowski referred to the WC Claims by Quarter Report for the month of February and advised there were 15 new claims. Ms. Grabowski also reviewed the Medical Cost Containment Savings report for the first quarter for the period of 1/1/16 to 3/1/16. The total invoiced was $155,233 and the total net savings were $90,417. The network penetration was 98%. Ms. Grabowski advised that concluded her report unless anyone had any questions. CEL SAFETY DIRECTOR: Mr. Prince advised his report was included in the agenda and reviewed the Risk Control Activities for March April Mr. Prince reported on March 31, 2016, he visited the Animal Shelter with Mr. Childress and was happy to see many of the safety suggestions had been implemented, and Mr. Prince would be following up next month. Mr. Prince advised that concluded his report unless anyone had any questions. 5

6 OLD BUSINESS: NONE NEW BUSINESS: NONE PUBLIC COMMENT: MOTION TO OPEN MEETING TO THE PUBLIC Seeing no members of the public wishing to speak, asked for a motion to close the public comment portion of the meeting. MOTION TO CLOSE MEETING TO THE PUBLIC CLOSED SESSION: read Resolution 25-16, Resolution for Closed Session, and requested a Motion for Executive Session (in accordance with the Open Public Meetings Act, N.J.S.A. 10:4-12) to discuss payment authority requests. MOTION TO APPROVE RESOLUTION FOR CLOSED SESSION Motion: Commissioner Burke MOTION TO ADJOURN: advised the next Commission meeting was scheduled for May 5, 2016 at 2:00 PM. MEETING ADJOURNED: 2:43 PM Minutes prepared by: Rachel Chwastek, Assisting Secretary and Emily Koval for Health Benefits. 6